Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 16, 2016 | Jun. 30, 2015 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | true | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Takung Art Co., Ltd. | ||
Entity Central Index Key | 1,491,487 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 34,183,346.60 | ||
Trading Symbol | TKAT | ||
Entity Common Stock, Shares Outstanding | 11,119,276 | ||
Amendment Description | Takung Art Co., Ltd. (together with its subsidiaries, the “Company” sometimes referred to as “we”, “us” or “our”) is filing this Amendment No,1 (this “Amendment” or “Form 10-K/A”) to its Annual Report on Form 10-K for the year ended December 31, 2015, originally filed on February 17, 2016 (“Original Form 10-K) to reflect a restatement of its consolidated financial statements for the fiscal year ended December 31, 2015 and December 31, 2014, and related disclosures described below. The restatement of the Original Form 10-K reflected in this Amendment corrects errors principally related to the earnings per share (“EPS”). The items amended in the Original Form 10-K are as listed in “Items Amended by this Filing” below, as a result of the restatement of our financial statements. Other than the “Items Amended by this Filing”, disclosures in the Original Form 10-K remain unchanged. No other sections were affected, but for the convenience of the reader, this report on Form 10-K/A restates in its entirety, as amended, our Original Form 10-K. This report on Form 10- K/A reflects certain events occurring subsequent to the date of the Original Form 10-K in its restated consolidated financial statements for the fiscal year ended December 31, 2015. Except as stated herein, this Amendment does not reflect events occurring after the filing of the Original Form 10-K with the Securities and Exchange Commission on February 17, 2016 and no attempt has been made in this Amendment to modify or update other disclosures as presented in the Original Form 10-K. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash | $ 10,769,456 | $ 2,355,839 |
Restricted cash | 16,195,289 | 6,865,821 |
Deposits | 70,194 | 0 |
Account receivables, net | 184,537 | 291,496 |
Prepayment and other current assets | 1,172,405 | 483,609 |
Due from director | 502 | 0 |
Total current assets | 28,392,383 | 9,996,765 |
Non-current assets | ||
Property and equipment, net | 1,213,255 | 1,037,758 |
Intangible assets | 22,194 | 20,547 |
Other non-current assets | 121,381 | 69,196 |
Total non-current assets | 1,356,830 | 1,127,501 |
Total assets | 29,749,213 | 11,124,266 |
Current liabilities | ||
Accrued expenses and other payables | 667,622 | 1,891,525 |
Customer deposits | 16,195,289 | 6,865,821 |
Tax payables | 1,564,370 | 249,092 |
Amount due to director | 0 | 2,730 |
Total current liabilities | 18,427,281 | 9,009,168 |
Deferred tax liabilities | 45,037 | 66,555 |
Total non-current liabilities | 45,037 | 66,555 |
Total liabilities | 18,472,318 | 9,075,723 |
NON-CURRENT LIABILITIES | ||
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 December 31, 2015; 9,332,276 shares issued and outstanding as of December 31, 2014) | 11,119 | 9,332 |
Additional paid-in capital | 4,465,217 | 2,570,098 |
Subscription receivable | 0 | (1,896,548) |
Retained earnings | 6,801,977 | 1,365,868 |
Accumulated other comprehensive loss | (1,418) | (207) |
Total stockholders' equity | 11,276,895 | 2,048,543 |
Total liabilities and stockholders' equity | $ 29,749,213 | $ 11,124,266 |
CONSOLIDATED BALANCE SHEETS _Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
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 | 9,332,276 |
Common stock, shares outstanding | 11,119,276 | 9,332,276 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue | ||
Listing fee | $ 4,834,126 | $ 1,774,461 |
Commission | 6,145,261 | 2,832,158 |
Authorized agent subscription revenue | 239,260 | 0 |
Management fee | 115,542 | 113,243 |
Annual fee | 1,752 | 0 |
Total revenue | 11,335,941 | 4,719,862 |
Cost of revenue | (805,684) | (434,379) |
Gross profit | 10,530,257 | 4,285,483 |
Operating expenses | ||
General and administrative expenses | (3,253,433) | (1,701,808) |
Selling expenses | (584,179) | (904,177) |
Total operating expenses | (3,837,612) | (2,605,985) |
Income from operations | 6,692,645 | 1,679,498 |
Other income | 25,795 | 2,085 |
Income before income tax expense | 6,718,440 | 1,681,583 |
Provision for income taxes | (1,282,331) | (312,046) |
Net income | 5,436,109 | 1,369,537 |
Foreign currency translation adjustment | (1,211) | 526 |
Comprehensive income | $ 5,434,898 | $ 1,370,063 |
Earnings per common share - basic | $ 0.57 | $ 0.16 |
Earnings per common share - diluted | $ 0.56 | $ 0.16 |
Weighted average number of common shares outstanding -basic | 9,601,034 | 8,583,130 |
Weighted Average Number of Shares Outstanding, Diluted | 9,656,736 | 8,583,130 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Total | Common stock [Member] | Additional paid-in capital [Member] | Subscription receivable [Member] | Retained earnings [Member] | Accumulated Other Comprehensive [Member] |
Balance at Dec. 31, 2013 | $ 679,129 | $ 8,399 | $ 2,571,680 | $ (1,896,548) | $ (3,669) | $ (733) |
Balance (in Shares) at Dec. 31, 2013 | 8,399,040 | |||||
Reverse merger recapitalization | (649) | $ 933 | (1,582) | 0 | 0 | 0 |
Reverse merger recapitalization (in shares) | 933,236 | |||||
Net income for the Year | 1,369,537 | $ 0 | 0 | 0 | 1,369,537 | 0 |
Foreign currency translation adjustment | 526 | 0 | 0 | 0 | 0 | 526 |
Balance at Dec. 31, 2014 | 2,048,543 | $ 9,332 | 2,570,098 | (1,896,548) | 1,365,868 | (207) |
Balance (in Shares) at Dec. 31, 2014 | 9,332,276 | |||||
Shares for compensation | 314,243 | $ 787 | 313,456 | 0 | 0 | 0 |
Shares for compensation (in shares) | 787,000 | |||||
Issuance of shares | 1,580,000 | $ 1,000 | 1,579,000 | 0 | 0 | 0 |
Issuance of shares (in shares) | 1,000,000 | |||||
Net income for the Year | 5,436,109 | $ 0 | 0 | 0 | 5,436,109 | 0 |
Receipt of subscription receivables | 1,899,211 | 0 | 2,663 | 1,896,548 | 0 | 0 |
Foreign currency translation adjustment | (1,211) | 0 | 0 | 0 | 0 | (1,211) |
Balance at Dec. 31, 2015 | $ 11,276,895 | $ 11,119 | $ 4,465,217 | $ 0 | $ 6,801,977 | $ (1,418) |
Balance (in Shares) at Dec. 31, 2015 | 11,119,276 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 5,436,109 | $ 1,369,537 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 336,222 | 216,479 |
Stock-based compensation | 314,243 | 0 |
Changes in operating assets and liabilities: | ||
Account receivables | 106,948 | (232,140) |
Deposits | (70,194) | 0 |
Prepayment and other current assets | (772,694) | (398,804) |
Restricted cash | (9,327,160) | (3,204,936) |
Due to directors | (3,230) | 2,729 |
Customer deposits | 9,327,160 | 3,203,726 |
Deferred tax liabilities | (21,517) | 62,998 |
Tax payables | 1,316,656 | 249,048 |
Accrued expenses and other payables | (1,222,850) | 1,323,024 |
Net cash provided by operating activities | 5,419,693 | 2,591,661 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (512,144) | (477,399) |
Purchase of intangible assets | 0 | (20,543) |
Net cash used in investing activities | (512,144) | (497,942) |
Cash flows from financing activities: | ||
Proceeds from subscription receivable | 1,930,853 | 0 |
Proceeds from issuance of shares | 1,580,000 | 0 |
Net cash provided by financing activities | 3,510,853 | 0 |
Effect of exchange rate change on cash and cash equivalents | (4,785) | 1,933 |
Net increase in cash and cash equivalents | 8,413,617 | 2,095,652 |
Cash and cash equivalents, beginning balance | 2,355,839 | 260,187 |
Cash and cash equivalents, ending balance | 10,769,456 | 2,355,839 |
Supplemental cash flows information: | ||
Cash paid for interest | 0 | 0 |
Cash paid for income tax | $ 0 | $ 0 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2015 | |
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 and Subsidiaries ( “Takung”), a Delaware corporation (formerly Cardigant Medical Inc.) through Hong Kong Takung Assets and Equity of Artworks Exchange Co., Ltd. (“Hong Kong 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. (“Hong Kong Takung”) was incorporated in Hong Kong on September 17, 2012 and operates an electronic online platform for offering and trading artwork. For the period from September 17, 2012 Takung (Shanghai) Co., Ltd (“Shanghai Takung”) is a limited liability company, with a registered capital of $ 1 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 Hong Kong Takung and Shanghai Takung 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 Hong Kong Takung, a privately held Hong Kong corporation, pursuant to the Share Exchange Agreement and Hong Kong 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 8,399,040 209,976,000 933,236 23,330,662 Under generally accepted accounting principles in the United States, (“U.S. GAAP”) because Hong Kong Takung’s former stockholders received the greater portion of the voting rights in the combined entity and Hong Kong 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 Hong Kong Takung is considered the acquirer for accounting and financial reporting purposes. The assets and liabilities of Hong Kong 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 Hong Kong Takung's consolidated financial statements are those of Hong Kong Takung and are recorded at the historical cost basis of Hong Kong Takung. Unless otherwise indicated or the context otherwise requires, references to “the Company” refer to Takung Art Co., Ltd and Subsidiaries 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”. On August 10, 2015, Takung effected a 1-for-25 reverse stock split (the “Reverse Spilt”). The principal effect of the Reverse Split was to decrease the number of outstanding shares of each of Takung ’s common shares. All shares outstanding for all the periods have been retroactively restated to reflect the Reverse Split. |
CORRECTIONS TO PREVIOUSLY ISSUE
CORRECTIONS TO PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Changes and Error Corrections [Text Block] | 2. CORRECTIONS TO PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS Our Audit Committee had requested our newly appointed independent registered public accounting firm to audit our 2015 and 2014 financial statements. In the course of such audit, we discovered that we had erroneously stated that our earnings per share of common stock, on a basic and diluted basis were $ 0.49 0.15 0.57 0.56 0.16 In addition to the restatement of our consolidated financial statements, we have also restated the following items to reflect certain changes noted above. As of and for the Year Ended December 31, 2015 Previously Reported Adjustments Restated Consolidated Statements of Operations and Comprehensive Loss Weighted-average shares outstanding - Basic 11,119,276 (1,518,242) 9,601,034 Weighted-average shares outstanding Diluted 11,119,276 (1,462,540) 9,656,736 Earnings per share Weighted average number of common shares outstanding - basic 0.49 0.08 0.57 Weighted average number of common shares outstanding - diluted 0.49 0.07 0.56 As of and for the Year Ended December 31, 2014 Previously Reported Adjustments Restated Consolidated Statements of Operations and Comprehensive Loss Weighted-average shares outstanding - Basic 9,332,276 (749,146) 8,583,130 Weighted-average shares outstanding Diluted 9,332,276 (749,146) 8,583,130 Earnings per share Weighted average number of common shares outstanding - basic 0.15 0.01 0.16 Weighted average number of common shares outstanding - diluted 0.15 0.01 0.16 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements have been prepared in accordance with the generally accepted accounting principles in the United States ("U.S. GAAP"). 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. 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 financial statements of the Company, and its subsidiaries, Hong Kong Takung and Shanghai Takung. All intercompany transactions, balances and unrealized profit and losses have been eliminated on consolidation. 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 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 December 31, 2015 and 2014. The Company follows the provisions of the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) 220 “Reporting Comprehensive Income”, and establishes standards for the reporting and display of comprehensive income, its components and accumulated balances in a full set of general purpose financial statements. For the year ended December 31, 2015 and 2014, the Company’s comprehensive income includes net income and foreign currency translation adjustment. The functional currency of Hong Kong Takung and Shanghai Takung are the Hong Kong Dollar (“HKD”). 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 rate on the balance sheets dates, which is 7.7507 7.7531 7.7524 7.7545 6.4778 6.2827 The resulting translation adjustments are reported under accumulated other comprehensive income in the stockholder’s equity section of the balance sheets. The Company considers highly liquid investments with maturities of three months or less, when purchased, to be cash equivalents. As of December 31, 2015 and 2014, the Company’s cash and cash equivalents amounted to$ 10,769,456 2,355,839 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 shares 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 shares, the seller will send instructions to the bank, requesting the amount to be transferred to their personal account. After deducting the commission and the management fee as per Takung, 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. Restricted cash amended$ 16,195,289 6,865,821 Accounts receivable are recorded and carried at the original invoiced amount less an allowance for any potential uncollectible amounts. We make 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. Prepayment and other current assets mainly consists of the prepaid service fee for the development and maintenance of online trading system, as well as the advertising and promotional services. A portion of the 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 operating 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. Estimated Classification useful life Furniture, fixtures and equipment 5 years Leasehold improvements Shorter of the remaining lease terms and the estimated 3 years Computer trading and clearing system 5 years 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 years ended December 31, 2015 and 2014, respectively. Intangible assets represent the licensing cost for our trademark registration, Kingdee system and its server. 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. For intangible assets with definite lives, they are amortized over estimated useful lives, and are reviewed annually for impairment. The Company has not recorded impairment of intangible assets as of December 31, 2015 and 2014, respectively. Customer deposits represent 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 deposits was $ 16,195,289 6,865,821 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 -The Company recognizes the listing fee revenue once the ownership shares of the artwork are listed and successfully traded on our system, based on the agreed percentage of the total offering price. This amount is collected from the money raised from the issuance of such shares accounted as the listing fee revenue accordingly. When the ownership shares of the artwork is listed and starts trading on our system, the Original Owner and/or the Offering Agent shall pay us a one-time offering fee and a listing deposit. The offering fee is determined based on many factors, such as the type of artwork and the offering size. We generally charge approximately 22.5 47 4,834,126 1,774,461 Commission -The Company charges trading commissions for the purchase and sale of the ownership shares of the artworks. The commission is typically 0.3 0.2 0.4 0.13 Commission rebate programs are offered to the traders and service agents. As part of the referral incentive program, the Company would rebate 5 50 Commission revenue was $ 6,145,261 2,832,158 Management fee -The Company charges management fees for covering the insurance, storage, and transportation for an artwork and trading management of artwork units, which are calculated at $0.0013 (HK$0.01) per 100 artwork ownership shares per day. 115,542 113,243 Annual fee income -The Company charges an annual fee for providing traders with premium services, including more in-depth information and tools, on the trading platform. This revenue is recognized ratably over the service agreement period. Authorized agent subscription revenue - The Company charges an authorized agent subscription fee which is an annual service fee paid by authorized agents to grant them the right to bring their network of artwork owners to list their artwork on our trading platform. This revenue is recognized ratably over the annual agreement period. Our cost of revenue consists primarily of expenses associated with the delivery of our service. These include expenses related to the operation of our data centers, such as facility and lease of the server equipment, development and maintenance of our platform system, as well as the cost of insurance, storage and transportation of the artworks. 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 Shanghai Takung under the law of the People's Republic of China on Enterprise Income Tax ("EIT") as of 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 our consolidated statements of operations for the year ended December 31, 2015 and 2014. The Company does not expect that its assessment regarding unrecognized tax positions will materially change over the next 12 months. Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the year. 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 year. As of December 31, 2015, there were options which would have a dilutive effect on earnings per share. As of December 31, 2014, there were no options which would have a dilutive effect on earnings per share. On August 10, 2015, the Company affected a 1-for-25 reverse stock split (the “Reverse Spilt”). The principal effect of the Reverse Split was to decrease the number of outstanding shares of each of the Company’s common shares. All shares outstanding for all the periods have been retroactively restated to reflect the Reverse Split. 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, accounts receivable, prepayment and other current assets. The Company places its cash and cash equivalents and restricted cash with financial institutions with high-credit ratings and quality. Accounts receivable primarily comprise of amounts receivable 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 The Company has also reclassified certain amounts in the consolidated financial statements for 2015, as well as the related comparative amounts for 2014 to conform to the current year’s presentation. The principal reclassifications are related to 1) aggregation of certain deposits, prepayment and other receivables into prepayment and other current assets and other non-current assets, respectively, on the basis of time period in which the economic benefits from the asset will flow to the Company. 2) the reclassification of certain general and administrative expense to selling expense due to the nature of promotion related activities. These reclassification did not have an impact on reported total assets, liabilities and stockholder’s equity. Revenue Recognition: In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers: Topic Disclosure of Going Concern Uncertainties : In August 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (ASU 2014-15), to provide guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective for us in our fourth quarter of fiscal 2017 with early adoption permitted. We do not believe the impact of our pending adoption of ASU 2014-15 on the Company’s financial statements will be material. 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. We are currently evaluating the impact that the standard will have on our 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 should Standard Codification. This ASU will be effective for us beginning in May 1, 2019. We are currently in the process of evaluating the impact of the adoption of ASU 2016-2 on our 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. Statement of Cash Flows: In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): The amendments in this Update apply to all entities, including both business entities and not-for-profit entities that are required to present a statement of cash flows under Topic 230. The amendments in this Update provide guidance on the following eight specific cash flow issues. The amendments are an improvement to GAAP because they provide guidance for each of the eight issues, thereby reducing the current and potential future diversity in practice described above. ASU 2016-15 is effective for the Company for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. 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 October 20, 2016, the FASB has issued ASU No. 2016-01 through ASU 2016-17, 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 | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets [Text Block] | 4. PREPAYMENT AND OTHER CURRENT ASSETS Prepayment and other current assets mainly consists of the prepaid service fee for the development and maintenance of online trading system, as well as the advertising and promotional services. The prepayment was $ 1,172,405 483,609 December 31, December 31, 2015 2014 Prepaid services for development $ 201,461 $ 5,780 Prepaid maintenance of trading system 439,917 141,685 Advertising and promotional services 451,572 - Customers commission rebate - 264,228 Other current assets 79,455 71,916 Prepayment and other current assets $ 1,172,405 $ 483,609 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 5. PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following: December 31, December 31, 2015 2014 Furniture, fixtures and equipment $ 61,787 $ 54,429 Leasehold improvements 140,955 139,686 Computer trading and clearing system 1,628,542 1,125,316 Sub-total 1,831,284 1,319,431 Less: accumulated depreciation (618,029) (281,673) Property and equipment, net $ 1,213,255 $ 1,037,758 Depreciation expense was $ 343,526 217,750 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | 6. INTANGIBLE ASSETS Intangible assets consist of the Company’s trademarks, Kingdee system and its server, with indefinite useful life for trademarks, and definite useful lives for Kingdee system and its server. The intangible asset was $ 22,194 20,547 |
ACCRUED EXPENSES AND OTHER PAYA
ACCRUED EXPENSES AND OTHER PAYABLES | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 7. ACCRUED EXPENSES AND OTHER PAYABLES December 31, December 31, 2015 2014 Trading and clearing system $ 76,763 $ 474,270 Accruals for professional fees 75,116 95,827 Accruals for consulting fees 259,244 391,493 Accruals for office rental 15,855 11,437 Payroll payables 46,167 297 Accruals for promotion fee - 894,481 Temporary customer deposits 175,216 - Other payables 19,261 23,720 Total Accrued expenses and other payables $ 667,622 $ 1,891,525 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 8. INCOME TAXES United States of America 900,301 109,162 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 during the year ended December 31, 2015 and 2014, amounting to $ 306,102 37,115 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 tax at a rate of 25 The income tax expense was $ 1,282,331 312,046 December 31, December 31, 2015 2014 Current $ 1,303,865 $ 249,049 Deferred (21,534) 62,997 TOTAL PROVISION FOR INCOME TAXES 1,282,331 312,046 December 31, December 31, 2015 2014 Income before income tax expense $ 6,718,440 $ 1,681,583 Provision for taxes at respective statutory tax rate 984,497 258,359 Tax effect of non-deductible expenses 50,383 16,573 Changes in valuation allowance 247,451 37,114 TOTAL PROVISION FOR INCOME TAXES 1,282,331 312,046 The Company's effective tax rate was 19.1 18.6 As of As of December 31, December 31, 2015 2014 Deferred tax assets Tax loss carried forward $ 306,102 $ 37,115 306,102 37,115 Valuation allowance (306,102) (37,115) Deferred tax asset, net - - Deferred tax liabilities Property, plant and equipment, principally due to differences in depreciation (45,037) (66,555) Deferred tax liability $ (45,037) $ (66,555) |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 9. COMMITMENTS AND CONTINGENCIES Capital Commitments The Company purchased property, plant and equipment which the payment was due within one year. As of December 31, 2015 and 2014, the Company has capital commitments of $ 60,571 206,498 Operation Commitments Year ending December 31, 2016 $ 413,529 Year ending December 31, 2017 337,153 Year ending December 31, 2018 87,624 Year ending December 31, 2019 15,437 Year ending December 31, 2020 15,437 Year ending December 31, 2021 and thereafter 70,112 Total $ 939,292 Rental expense of the Company was $ 459,050 259,388 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 10. EARNINGS PER SHARE Year ended Year ended December 31, 2015 December 31, 2014 (Restated) (Restated) $ $ Numerator: Net income 5,436,109 1,369,537 Denominator: Weighted-average shares outstanding-Basic 9,601,034 8,583,130 Stock options 55,702 - Weighted-average shares outstanding-Diluted 9,656,736 8,583,130 Earnings per share -Basic 0.57 0.16 -Diluted 0.56 0.16 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 All shares outstanding and stock options for all periods reflect Takung’s 1-for-25 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 11. STOCKHOLDERS’ EQUITY On September 17, 2013, Hong Kong Takung was incorporated with the issuance of 20,000,000 0.13 On October 20, 2014, Cardigant acquired all the issued and outstanding shares of Hong Kong Takung, a privately held Hong Kong corporation, pursuant to the Share Exchange Agreement and Hong Kong 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 Hong Kong Takung common stock were converted, at an exchange ratio of 10.4988 On July 7, 2015, the Board granted 300,000 186,000 300,000 Date of Grant July 7, 2015 Expected life (in years) 1 Volatility 130 % Annual Rate of Quarterly Dividends 0 % Discount Rate - Bond Equivalent Yield 2.87 % On August 10, 2015, we 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 Capital Group, LLC (“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 487,000 128,243 487,000 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 12. SUBSEQUENT EVENT The Company subsequently granted an aggregate of 431,525 112,925 50,000 268,600 7,463 50,000 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 Shanghai Takung 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 On August 24, 2016, our Hong Kong subsidiary, Hong Kong Takung entered into a loan agreement with Merit Crown Limited, a Hong Kong company to borrow US$ 2 8 December 31, 2016 Also on August 24, 2016, our PRC subsidiary, Shanghai Takung entered into an interest- free loan agreement to lend an individual, Xiaohui Wang, a national of the People’s Republic of China RMB 13.35 2 The US Dollar Loan is to provide Hong Kong 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. On August 25, 2016, Hong Kong Takung entered into a loan agreement with Jianping Mao (“Mao”), the wife of the Vice General Manager of Hong Kong Takung for the loan of HK$ 18,000,000 8 December 31, 2016 As we have determined the Hong Kong dollar loan to be a “related party transaction”, our Audit Committee has reviewed and recommended for approval and our Board of Directors has approved the loan on August 22, 2016. |
SUMMARY OF SIGNIFICANT ACCOUN19
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The consolidated financial statements have been prepared in accordance with the generally accepted accounting principles in the United States ("U.S. GAAP"). 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. |
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] | Basis of Consolidation The consolidated financial statements include the financial statements of the Company, and its subsidiaries, Hong Kong Takung and Shanghai Takung. All intercompany transactions, balances and unrealized profit and losses have been eliminated on 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 December 31, 2015 and 2014. |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income The Company follows the provisions of the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) 220 “Reporting Comprehensive Income”, and establishes standards for the reporting and display of comprehensive income, its components and accumulated balances in a full set of general purpose financial statements. For the year ended December 31, 2015 and 2014, the Company’s comprehensive income includes net income and foreign currency translation adjustment. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation and Transaction The functional currency of Hong Kong Takung and Shanghai Takung are the Hong Kong Dollar (“HKD”). 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 rate on the balance sheets dates, which is 7.7507 7.7531 7.7524 7.7545 6.4778 6.2827 The resulting translation adjustments are reported under accumulated other comprehensive income in the stockholder’s 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 December 31, 2015 and 2014, the Company’s cash and cash equivalents amounted to$ 10,769,456 2,355,839 |
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 shares 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 shares, the seller will send instructions to the bank, requesting the amount to be transferred to their personal account. After deducting the commission and the management fee as per Takung, 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. Restricted cash amended$ 16,195,289 6,865,821 |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Accounts Receivables and Allowance for Doubtful Accounts Accounts receivable are recorded and carried at the original invoiced amount less an allowance for any potential uncollectible amounts. We make 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. |
Prepayment and Other Current Assets Policy [Policy Text Block] | Prepayment and Other Current Assets Prepayment and other current assets mainly consists of the prepaid service fee for the development and maintenance of online trading system, as well as the advertising and promotional services. |
Other Noncurrent Assets [Policy Text Block] | Other Non-current Assets A portion of the 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 operating 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. Estimated Classification useful life Furniture, fixtures and equipment 5 years Leasehold improvements Shorter of the remaining lease terms and 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 years ended December 31, 2015 and 2014, respectively. |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Intangible Assets Intangible assets represent the licensing cost for our trademark registration, Kingdee system and its server. 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. For intangible assets with definite lives, they are amortized over estimated useful lives, and are reviewed annually for impairment. The Company has not recorded impairment of intangible assets as of December 31, 2015 and 2014, respectively. |
Customer Deposit Policy [Policy Text Block] | Customer deposits Customer deposits represent 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 deposits was $ 16,195,289 6,865,821 |
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 -The Company recognizes the listing fee revenue once the ownership shares of the artwork are listed and successfully traded on our system, based on the agreed percentage of the total offering price. This amount is collected from the money raised from the issuance of such shares accounted as the listing fee revenue accordingly. When the ownership shares of the artwork is listed and starts trading on our system, the Original Owner and/or the Offering Agent shall pay us a one-time offering fee and a listing deposit. The offering fee is determined based on many factors, such as the type of artwork and the offering size. We generally charge approximately 22.5 47 4,834,126 1,774,461 Commission -The Company charges trading commissions for the purchase and sale of the ownership shares of the artworks. The commission is typically 0.3 0.2 0.4 0.13 Commission rebate programs are offered to the traders and service agents. As part of the referral incentive program, the Company would rebate 5 50 Commission revenue was $ 6,145,261 2,832,158 Management fee -The Company charges management fees for covering the insurance, storage, and transportation for an artwork and trading management of artwork units, which are calculated at $0.0013 (HK$0.01) per 100 artwork ownership shares per day. 115,542 113,243 Annual fee income -The Company charges an annual fee for providing traders with premium services, including more in-depth information and tools, on the trading platform. This revenue is recognized ratably over the service agreement period. Authorized agent subscription revenue - The Company charges an authorized agent subscription fee which is an annual service fee paid by authorized agents to grant them the right to bring their network of artwork owners to list their artwork on our trading platform. This revenue is recognized ratably over the annual agreement period. |
Cost of Sales, Policy [Policy Text Block] | Cost of Revenue Our cost of revenue consists primarily of expenses associated with the delivery of our service. These include expenses related to the operation of our data centers, such as facility and lease of the server equipment, development and maintenance of our 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 Shanghai Takung under the law of the People's Republic of China on Enterprise Income Tax ("EIT") as of 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 our consolidated statements of operations for the year ended December 31, 2015 and 2014. 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 year. 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 year. As of December 31, 2015, there were options which would have a dilutive effect on earnings per share. As of December 31, 2014, there were no options which would have a dilutive effect on earnings per share. On August 10, 2015, the Company affected a 1-for-25 reverse stock split (the “Reverse Spilt”). The principal effect of the Reverse Split was to decrease the number of outstanding shares of each of the Company’s common shares. All shares outstanding for all the periods have been retroactively restated to reflect the Reverse Split. |
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, accounts receivable, prepayment and other current assets. The Company places its cash and cash equivalents and restricted cash with financial institutions with high-credit ratings and quality. Accounts receivable primarily comprise of amounts receivable 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 |
Reclassification, Policy [Policy Text Block] | Reclassification The Company has also reclassified certain amounts in the consolidated financial statements for 2015, as well as the related comparative amounts for 2014 to conform to the current year’s presentation. The principal reclassifications are related to 1) aggregation of certain deposits, prepayment and other receivables into prepayment and other current assets and other non-current assets, respectively, on the basis of time period in which the economic benefits from the asset will flow to the Company. 2) the reclassification of certain general and administrative expense to selling expense due to the nature of promotion related activities. These reclassification did not have an impact on reported total assets, liabilities and stockholder’s equity. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements Revenue Recognition: In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers: Topic Disclosure of Going Concern Uncertainties : In August 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (ASU 2014-15), to provide guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective for us in our fourth quarter of fiscal 2017 with early adoption permitted. We do not believe the impact of our pending adoption of ASU 2014-15 on the Company’s financial statements will be material. 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. We are currently evaluating the impact that the standard will have on our 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 should Standard Codification. This ASU will be effective for us beginning in May 1, 2019. We are currently in the process of evaluating the impact of the adoption of ASU 2016-2 on our 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. Statement of Cash Flows: In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): The amendments in this Update apply to all entities, including both business entities and not-for-profit entities that are required to present a statement of cash flows under Topic 230. The amendments in this Update provide guidance on the following eight specific cash flow issues. The amendments are an improvement to GAAP because they provide guidance for each of the eight issues, thereby reducing the current and potential future diversity in practice described above. ASU 2016-15 is effective for the Company for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. 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 October 20, 2016, the FASB has issued ASU No. 2016-01 through ASU 2016-17, which are not expected to have a material impact on the consolidated financial statements upon adoption. |
CORRECTIONS TO PREVIOUSLY ISS20
CORRECTIONS TO PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | The following tables present the effect of the correction discussed above and other adjustments on selected line items of our previously reported consolidated financial statements as of and for the years ended December 31, 2015 and 2014. As of and for the Year Ended December 31, 2015 Previously Reported Adjustments Restated Consolidated Statements of Operations and Comprehensive Loss Weighted-average shares outstanding - Basic 11,119,276 (1,518,242) 9,601,034 Weighted-average shares outstanding Diluted 11,119,276 (1,462,540) 9,656,736 Earnings per share Weighted average number of common shares outstanding - basic 0.49 0.08 0.57 Weighted average number of common shares outstanding - diluted 0.49 0.07 0.56 As of and for the Year Ended December 31, 2014 Previously Reported Adjustments Restated Consolidated Statements of Operations and Comprehensive Loss Weighted-average shares outstanding - Basic 9,332,276 (749,146) 8,583,130 Weighted-average shares outstanding Diluted 9,332,276 (749,146) 8,583,130 Earnings per share Weighted average number of common shares outstanding - basic 0.15 0.01 0.16 Weighted average number of common shares outstanding - diluted 0.15 0.01 0.16 |
SUMMARY OF SIGNIFICANT ACCOUN21
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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: Estimated Classification useful life Furniture, fixtures and equipment 5 years Leasehold improvements Shorter of the remaining lease terms and the estimated 3 years Computer trading and clearing system 5 years |
PREPAYMENT AND OTHER CURRENT 22
PREPAYMENT AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | December 31, December 31, 2015 2014 Prepaid services for development $ 201,461 $ 5,780 Prepaid maintenance of trading system 439,917 141,685 Advertising and promotional services 451,572 - Customers commission rebate - 264,228 Other current assets 79,455 71,916 Prepayment and other current assets $ 1,172,405 $ 483,609 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment consisted of the following: December 31, December 31, 2015 2014 Furniture, fixtures and equipment $ 61,787 $ 54,429 Leasehold improvements 140,955 139,686 Computer trading and clearing system 1,628,542 1,125,316 Sub-total 1,831,284 1,319,431 Less: accumulated depreciation (618,029) (281,673) Property and equipment, net $ 1,213,255 $ 1,037,758 |
ACCRUED EXPENSES AND OTHER PA24
ACCRUED EXPENSES AND OTHER PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | Accrued expenses and other payables as of December 31, 2015 and 2014 consisted of: December 31, December 31, 2015 2014 Trading and clearing system $ 76,763 $ 474,270 Accruals for professional fees 75,116 95,827 Accruals for consulting fees 259,244 391,493 Accruals for office rental 15,855 11,437 Payroll payables 46,167 297 Accruals for promotion fee - 894,481 Temporary customer deposits 175,216 - Other payables 19,261 23,720 Total Accrued expenses and other payables $ 667,622 $ 1,891,525 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The income tax provision consists of the following components: December 31, December 31, 2015 2014 Current $ 1,303,865 $ 249,049 Deferred (21,534) 62,997 TOTAL PROVISION FOR INCOME TAXES 1,282,331 312,046 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation between the Company’s actual provision for income taxes and the provision at the statutory rate is as follow: December 31, December 31, 2015 2014 Income before income tax expense $ 6,718,440 $ 1,681,583 Provision for taxes at respective statutory tax rate 984,497 258,359 Tax effect of non-deductible expenses 50,383 16,573 Changes in valuation allowance 247,451 37,114 TOTAL PROVISION FOR INCOME TAXES 1,282,331 312,046 |
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: As of As of December 31, December 31, 2015 2014 Deferred tax assets Tax loss carried forward $ 306,102 $ 37,115 306,102 37,115 Valuation allowance (306,102) (37,115) Deferred tax asset, net - - Deferred tax liabilities Property, plant and equipment, principally due to differences in depreciation (45,037) (66,555) Deferred tax liability $ (45,037) $ (66,555) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 of December 31, 2015 are payable as follows: Year ending December 31, 2016 $ 413,529 Year ending December 31, 2017 337,153 Year ending December 31, 2018 87,624 Year ending December 31, 2019 15,437 Year ending December 31, 2020 15,437 Year ending December 31, 2021 and thereafter 70,112 Total $ 939,292 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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. Year ended Year ended December 31, 2015 December 31, 2014 (Restated) (Restated) $ $ Numerator: Net income 5,436,109 1,369,537 Denominator: Weighted-average shares outstanding-Basic 9,601,034 8,583,130 Stock options 55,702 - Weighted-average shares outstanding-Diluted 9,656,736 8,583,130 Earnings per share -Basic 0.57 0.16 -Diluted 0.56 0.16 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The input assumptions used and resulting fair values of the 300,000 Date of Grant July 7, 2015 Expected life (in years) 1 Volatility 130 % Annual Rate of Quarterly Dividends 0 % Discount Rate - Bond Equivalent Yield 2.87 % |
ORGANIZATION AND DESCRIPTION 29
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Textual) $ in Millions | Aug. 10, 2015 | Oct. 20, 2014shares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014shares |
Organization And Description Of Business [Line Items] | ||||
Stockholders' Equity, Reverse Stock Split | 1-for-25 | |||
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, State Country Name | Tianjin Takung | |||
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, New Issues | 1,000,000 | |||
Stock Issued During Period, Shares, Acquisitions | 23,330,662 | 933,236 | ||
Common Stock [Member] | Pre Reverse Split [Member] | ||||
Organization And Description Of Business [Line Items] | ||||
Stock Issued During Period, Shares, Acquisitions | 933,236 | |||
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 |
CORRECTIONS TO PREVIOUSLY ISS30
CORRECTIONS TO PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statements of Operations and Comprehensive Loss | ||
Weighted-average shares outstanding - Basic | 9,601,034 | 8,583,130 |
Weighted-average shares outstanding - Diluted | 9,656,736 | 8,583,130 |
Earnings per share | ||
Weighted average number of common shares outstanding - basic | $ 0.57 | $ 0.16 |
Weighted average number of common shares outstanding - diluted | $ 0.56 | $ 0.16 |
Previously Reported [Member] | ||
Consolidated Statements of Operations and Comprehensive Loss | ||
Weighted-average shares outstanding - Basic | 11,119,276 | 9,332,276 |
Weighted-average shares outstanding - Diluted | 11,119,276 | 9,332,276 |
Earnings per share | ||
Weighted average number of common shares outstanding - basic | $ 0.49 | $ 0.15 |
Weighted average number of common shares outstanding - diluted | $ 0.49 | $ 0.15 |
Adjustments [Member] | ||
Consolidated Statements of Operations and Comprehensive Loss | ||
Weighted-average shares outstanding - Basic | (1,518,242) | (749,146) |
Weighted-average shares outstanding - Diluted | (1,462,540) | (749,146) |
Earnings per share | ||
Weighted average number of common shares outstanding - basic | $ 0.08 | $ 0.01 |
Weighted average number of common shares outstanding - diluted | $ 0.07 | $ 0.01 |
CORRECTIONS TO PREVIOUSLY ISS31
CORRECTIONS TO PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS (Details Textual) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share, Basic | $ 0.57 | $ 0.16 |
Earnings Per Share, Diluted | 0.56 | 0.16 |
Scenario, Previously Reported [Member] | ||
Earnings Per Share, Basic | 0.49 | 0.15 |
Earnings Per Share, Diluted | $ 0.49 | $ 0.15 |
SUMMARY OF SIGNIFICANT ACCOUN32
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Furniture, fixtures and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 5 years |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | Shorter of the remaining lease terms and the estimated 3 years |
Computer trading and clearing system [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN33
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) | Aug. 10, 2015 | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Summary of Significant Accounting Policies [Line Items] | ||||
Cash and Cash Equivalents, at Carrying Value, Total | $ 10,769,456 | $ 2,355,839 | $ 260,187 | |
Foreign Currency Exchange Rate Weighted Average Translation Rate | 7.7524 | 7.7545 | ||
Listing Fee Revenue | $ 4,834,126 | $ 1,774,461 | ||
Commissions Fee Percentage on Total Transaction | 0.30% | |||
Reduced Commission Fee Percentage on Total Transaction | 0.20% | |||
Minimum Charge on Total Transaction | $ 0.13 | |||
Foreign Currency Exchange Rate, Translation | 7.7507 | 7.7531 | ||
Restricted Cash and Cash Equivalents | $ 16,195,289 | $ 6,865,821 | ||
Fees and Commissions, Other | 6,145,261 | 2,832,158 | ||
Property Management Fee Revenue | $ 115,542 | 113,243 | ||
Management Fee Income Description | $0.0013 (HK$0.01) per 100 artwork ownership shares per day. | |||
Reduced Commission Fee Percentage On Total Transaction Resulting | 0.40% | |||
Customer Deposits, Current | $ 16,195,289 | $ 6,865,821 | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 19.10% | 18.60% | ||
Stockholders' Equity, Reverse Stock Split | 1-for-25 | |||
Takung Shanghai Co Ltd [Member] | Domestic Tax Authority [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.00% | |||
Takung Shanghai Co Ltd [Member] | Foreign Tax Authority [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 16.50% | |||
Sales Revenue, Net [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 0.00% | |||
China, Yuan Renminbi | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Foreign Currency Exchange Rate Weighted Average Translation Rate | 6.2827 | |||
Foreign Currency Exchange Rate, Translation | 6.4778 | |||
Minimum [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Offering Fee Percent | 22.50% | |||
Referral Incentive Program, Commission Rebate Percentage | 5.00% | |||
Maximum [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Offering Fee Percent | 47.00% | |||
Referral Incentive Program, Commission Rebate Percentage | 50.00% |
PREPAYMENT AND OTHER CURRENT 34
PREPAYMENT AND OTHER CURRENT ASSETS (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Prepaid services for development | $ 201,461 | $ 5,780 |
Prepaid maintenance of trading system | 439,917 | 141,685 |
Advertising and promotional services | 451,572 | 0 |
Customers commission rebate | 0 | 264,228 |
Other current assets | 79,455 | 71,916 |
Prepayment and other current assets | $ 1,172,405 | $ 483,609 |
PREPAYMENT AND OTHER CURRENT 35
PREPAYMENT AND OTHER CURRENT ASSETS (Details Textual) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Prepaid Expense, Current | $ 1,172,405 | $ 483,609 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Cost | ||
Furniture, fixtures and equipment | $ 61,787 | $ 54,429 |
Leasehold improvements | 140,955 | 139,686 |
Computer trading and clearing system | 1,628,542 | 1,125,316 |
Sub-total | 1,831,284 | 1,319,431 |
Less: accumulated depreciation | (618,029) | (281,673) |
Property and equipment, net | $ 1,213,255 | $ 1,037,758 |
PROPERTY AND EQUIPMENT, NET (37
PROPERTY AND EQUIPMENT, NET (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation | $ 343,526 | $ 217,750 |
INTANGIBLE ASSETS (Details Text
INTANGIBLE ASSETS (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible Assets, Net (Excluding Goodwill) | $ 22,194 | $ 20,547 |
Trademarks [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible Assets, Net (Excluding Goodwill) | 22,194 | 20,547 |
Amortization of Intangible Assets | $ 339 | $ 0 |
ACCRUED EXPENSES AND OTHER PA39
ACCRUED EXPENSES AND OTHER PAYABLES (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule Of Accounts Payable And Accrued Liabilities [Line Items] | ||
Trading and clearing system | $ 76,763 | $ 474,270 |
Accruals for professional fees | 75,116 | 95,827 |
Accruals for consulting fees | 259,244 | 391,493 |
Accruals for office rental | 15,855 | 11,437 |
Payroll payables | 46,167 | 297 |
Accruals for promotion fee | 0 | 894,481 |
Temporary customer deposits | 175,216 | 0 |
Other payables | 19,261 | 23,720 |
Total Accrued expenses and other payables | $ 667,622 | $ 1,891,525 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred: | ||
Current | $ 1,303,865 | $ 249,049 |
Deferred | (21,534) | 62,997 |
TOTAL PROVISION FOR INCOME TAXES | $ 1,282,331 | $ 312,046 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income before income tax expense | $ 6,718,440 | $ 1,681,583 |
Provision for taxes at respective statutory tax rate | 984,497 | 258,359 |
Tax effect of non-deductible expenses | 50,383 | 16,573 |
Changes in valuation allowance | 247,451 | 37,114 |
TOTAL PROVISION FOR INCOME TAXES | $ 1,282,331 | $ 312,046 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets | ||
Tax loss carried forward | $ 306,102 | $ 37,115 |
Deferred Tax Assets, Gross | 306,102 | 37,115 |
Valuation allowance | (306,102) | (37,115) |
Deferred tax asset, net | 0 | 0 |
Deferred tax liabilities | ||
Property, plant and equipment, principally due to differences in depreciation | (45,037) | (66,555) |
Deferred tax liability | $ (45,037) | $ (66,555) |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Line Items] | ||
Operating Loss Carryforwards | $ 900,301 | $ 109,162 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 19.10% | 18.60% |
Deferred Tax Assets, Valuation Allowance | $ 306,102 | $ 37,115 |
Income Tax Expense (Benefit) | $ 1,282,331 | $ 312,046 |
HONG KONG | ||
Income Taxes [Line Items] | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 16.50% | 16.50% |
PRC [Member] | ||
Income Taxes [Line Items] | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.00% | 25.00% |
COMMITMENTS AND CONTINGENCIES44
COMMITMENTS AND CONTINGENCIES (Details) | Dec. 31, 2015USD ($) |
Operating Leased Assets [Line Items] | |
Year ending December 31, 2016 | $ 413,529 |
Year ending December 31, 2017 | 337,153 |
Year ending December 31, 2018 | 87,624 |
Year ending December 31, 2019 | 15,437 |
Year ending December 31, 2020 | 15,437 |
Year ending December 31, 2021 and thereafter | 70,112 |
Total | $ 939,292 |
COMMITMENTS AND CONTINGENCIES45
COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Leased Assets [Line Items] | ||
Operating Leases, Rent Expense, Net | $ 459,050 | $ 259,388 |
Capital Lease Obligations, Current | $ 60,571 | $ 206,498 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator: | ||
Net income | $ 5,436,109 | $ 1,369,537 |
Denominator: | ||
Weighted-average shares outstanding-Basic | 9,601,034 | 8,583,130 |
Stock options | 55,702 | 0 |
Weighted-average shares outstanding-Diluted | 9,656,736 | 8,583,130 |
Earnings per share | ||
-Basic | $ 0.57 | $ 0.16 |
-Diluted | $ 0.56 | $ 0.16 |
EARNINGS PER SHARE (Details Tex
EARNINGS PER SHARE (Details Textual) - shares | Aug. 10, 2015 | Nov. 20, 2015 | Dec. 31, 2015 |
Schedule Of Earnings Per Share [Line Items] | |||
Incremental Common Shares Attributable to Dilutive Effect of Nonvested Shares with Forfeitable Dividends | 487,000 | ||
Stockholders' Equity, Reverse Stock Split | 1-for-25 | ||
Regeneration [Member] | |||
Schedule Of Earnings Per Share [Line Items] | |||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 487,000 | 487,000 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of Stockholders Equity [Line Items] | |
Date of Grant | Jul. 7, 2015 |
Expected life (in years) | 1 year |
Volatility | 130.00% |
Annual Rate of Quarterly Dividends | 0.00% |
Discount Rate - Bond Equivalent Yield | 2.87% |
STOCKHOLDERS' EQUITY (Details T
STOCKHOLDERS' EQUITY (Details Textual) | Aug. 10, 2015 | Jul. 07, 2015shares | Nov. 20, 2015shares | Nov. 16, 2015USD ($)$ / sharesshares | Oct. 20, 2014 | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Aug. 27, 2015shares | Sep. 17, 2013$ / sharesshares |
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 Arrangement by Share-based Payment Award, Options, Outstanding, Number | 300,000 | ||||||||
Common Stock, Shares, Issued | 11,119,276 | 9,332,276 | |||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.001 | $ 0.001 | |||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 10.4988 | ||||||||
Stockholders' Equity Note, Stock Split, Description | at an exchange ratio of 10.4988-for-1 (209,976,000:20,000,000), into an aggregate of 8,399,040 (209,976,000 pre-reverse split) shares of Cardigant common stock and Hong Kong Takung became a wholly owned subsidiary of Cardigant. The holders of Cardigant’s common stock as of immediately prior to the Merger held an aggregate of 933,236 (23,330,662 pre-reverse split) shares of Cardigant’s common stock | ||||||||
Share-based Compensation | $ | $ 314,243 | $ 0 | |||||||
Stockholders' Equity, Reverse Stock Split | 1-for-25 | ||||||||
2015 Incentive Stock Plan [Member] | |||||||||
Schedule of Stockholders Equity [Line Items] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,037,000 | ||||||||
Subscription Agreement [Member] | |||||||||
Schedule of Stockholders Equity [Line Items] | |||||||||
Shares Issued, Price Per Share | $ / shares | $ 1.58 | ||||||||
Stock Issued During Period, Shares, New Issues | 1,000,000 | ||||||||
Proceeds from Issuance of Private Placement | $ | $ 1,580,000 | ||||||||
Consulting Agreement [Member] | |||||||||
Schedule of Stockholders Equity [Line Items] | |||||||||
Share-based Compensation | $ | $ 128,243 | ||||||||
Regeneration [Member] | |||||||||
Schedule of Stockholders Equity [Line Items] | |||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 487,000 | 487,000 | |||||||
Restricted Stock [Member] | |||||||||
Schedule of Stockholders Equity [Line Items] | |||||||||
Common Stock, Shares, Issued | 20,000,000 | ||||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.13 |
SUBSEQUENT EVENT (Details Textu
SUBSEQUENT EVENT (Details Textual) - Subsequent Event [Member] ¥ in Thousands, $ in Millions | Jul. 15, 2016USD ($) | Feb. 02, 2016shares | Aug. 25, 2016HKD | Aug. 24, 2016USD ($) | Mar. 31, 2016shares | Mar. 30, 2016shares | Feb. 29, 2016shares | Mar. 31, 2016shares | Aug. 24, 2016CNY (¥) | Jul. 15, 2016CNY (¥) |
Employee Stock Option [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 268,600 | 112,925 | 50,000 | 431,525 | ||||||
Employee Stock Option [Member] | Non Employee [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 50,000 | |||||||||
Hong Kong Takung Assets and Equity of Artworks Exchange Co., Limited [Member] | Jianping Mao [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Debt Instrument, Face Amount | HKD | HKD 18,000,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | |||||||||
Debt Instrument, Maturity Date | Dec. 31, 2016 | |||||||||
Hong Kong Takung Assets and Equity of Artworks Exchange Co., Limited [Member] | Us Dollar Loan [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ | $ 1.5 | $ 2 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | 8.00% | 8.00% | ||||||
Debt Instrument, Maturity Date | Dec. 31, 2016 | Dec. 31, 2016 | ||||||||
Takung Shanghai Co Ltd [Member] | Rmb Loan [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 1.5 | $ 2 | ¥ 13,350 | ¥ 10,080 | ||||||
Restricted Stock [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 7,463 |