Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 14, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | Takung Art Co., Ltd. | |
Entity Central Index Key | 1,491,487 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | TKAT | |
Entity Common Stock, Shares Outstanding | 11,188,882 |
INTERIM CONDENSED CONSOLIDATED
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 14,887,890 | $ 13,395,337 |
Restricted cash | 19,057,733 | 21,743,360 |
Account receivables, net | 3,732,569 | 3,058,568 |
Prepayment and other current assets | 870,231 | 968,446 |
Loan receivables | 6,806,623 | 6,374,046 |
Total current assets | 45,355,046 | 45,539,757 |
Non-current assets | ||
Property and equipment, net | 2,104,107 | 2,065,182 |
Intangible assets | 20,394 | 20,546 |
Deferred tax assets | 294,676 | 243,772 |
Other non-current assets | 535,420 | 428,764 |
Total non-current assets | 2,954,597 | 2,758,264 |
Total assets | 48,309,643 | 48,298,021 |
Current liabilities | ||
Accrued expenses and other payables | 780,800 | 608,883 |
Customer deposits | 19,057,733 | 21,743,360 |
Advance from customers | 0 | 360,248 |
Short-term borrowings from third parties | 6,371,900 | 6,308,513 |
Amount due to related party | 1,085,480 | 1,031,805 |
Taxes payable | 1,094,885 | 549,897 |
Total current liabilities | 28,390,798 | 30,602,706 |
Deferred tax liabilities | 45,301 | 62,618 |
Total non-current liabilities | 45,301 | 62,618 |
Total liabilities | 28,436,099 | 30,665,324 |
NON-CURRENT LIABILITIES | ||
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS’ EQUITY | ||
Common stock (1,000,000,000 shares authorized; $0.001 par value; 11,188,882 shares issued and outstanding as of September 30, 2017; 11,169,276 shares issued and outstanding as of December 31, 2016) | 11,189 | 11,169 |
Additional paid-in capital | 5,928,455 | 5,532,426 |
Retained earnings | 14,229,809 | 13,172,671 |
Accumulated other comprehensive loss | (295,909) | (1,083,569) |
Total stockholders’ equity | 19,873,544 | 17,632,697 |
Total liabilities and stockholders’ equity | $ 48,309,643 | $ 48,298,021 |
INTERIM CONDENSED CONSOLIDATED3
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 11,188,882 | 11,169,276 |
Common stock, shares outstanding | 11,188,882 | 11,169,276 |
INTERIM CONDENSED CONSOLIDATED4
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenue | ||||
Listing fee revenue | $ 1,455,498 | $ 2,968,534 | $ 4,606,649 | $ 8,166,072 |
Commission revenue | 1,496,826 | 1,669,698 | 4,970,651 | 3,739,958 |
Gross management fee revenue | 402,547 | 781,219 | 967,518 | 1,341,294 |
Annual fee revenue | 140 | 440 | 859 | 869 |
Authorized agent subscription revenue | 0 | 322,318 | 0 | 966,059 |
Total revenue | 3,355,011 | 5,742,209 | 10,545,677 | 14,214,252 |
Cost of revenue | (292,168) | (285,252) | (822,335) | (822,735) |
Gross profit | 3,062,843 | 5,456,957 | 9,723,342 | 13,391,517 |
Operating expenses: | ||||
General and administrative expenses | (2,498,848) | (1,744,965) | (7,311,128) | (5,076,689) |
Selling expenses | (624,151) | (652,207) | (1,272,010) | (1,993,782) |
Income (loss) from operations | (60,156) | 3,059,785 | 1,140,204 | 6,321,046 |
Other income and expenses: | ||||
Other income | 186,259 | 163,738 | 440,470 | 314,268 |
Loan interest expense | (152,059) | (62,670) | (455,762) | (62,670) |
Exchange gain (loss) | 177,652 | (112,384) | 526,603 | (530,934) |
Total other income (loss) | 211,852 | (11,316) | 511,311 | (279,336) |
Income before income taxes | 151,696 | 3,048,469 | 1,651,515 | 6,041,710 |
Income tax (expense) benefit | (124,662) | (596,732) | (594,377) | (1,377,078) |
Net income | 27,034 | 2,451,737 | 1,057,138 | 4,664,632 |
Foreign currency translation adjustment | 311,485 | 10,172 | 787,660 | 18,322 |
Comprehensive income | $ 338,519 | $ 2,461,909 | $ 1,844,798 | $ 4,682,954 |
Earnings per common share- basic | $ 0 | $ 0.23 | $ 0.10 | $ 0.44 |
Earnings per common share- diluted | $ 0 | $ 0.22 | $ 0.09 | $ 0.41 |
Weighted average number of common shares outstanding-basic | 11,188,882 | 10,632,276 | 11,039,880 | 10,632,276 |
Weighted average number of common shares outstanding-diluted | 11,248,688 | 11,365,597 | 11,398,082 | 11,277,845 |
INTERIM CONDENSED CONSOLIDATED5
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net cash provided by operating activities | $ 1,028,524 | $ 5,635,391 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (455,255) | (976,460) |
Purchase of held-to-maturity investments | 0 | (14,995,876) |
Purchase of available-for-sales investment | (53,501,874) | (299,918) |
Maturity and redemption of available-for-sales investment | 53,501,874 | 0 |
Maturity and redemption of held-to-maturity investments | 0 | 14,995,876 |
Loan to third parties | (3,518,325) | 0 |
Repayment from loan to third parties | 3,412,070 | 0 |
Net cash used in investing activities | (561,510) | (1,276,378) |
Cash Flows from financing activities: | ||
Proceeds from short-term borrowings | 0 | 3,519,580 |
Proceeds from related party loans | 0 | 2,340,895 |
Loan to third parties | 0 | (3,513,534) |
Net cash provided by financing activities | 0 | 2,346,941 |
Effect of exchange rate change on cash and cash equivalents | 1,025,539 | (644,375) |
Net increase in cash and cash equivalents | 1,492,553 | 6,061,579 |
Cash and cash equivalents, beginning balance | 13,395,337 | 10,769,456 |
Cash and cash equivalents, ending balance | 14,887,890 | 16,831,035 |
Supplemental cash flows information: | ||
Cash paid for interest | 212,954 | 0 |
Cash paid for income tax | $ 136,453 | $ 562,994 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 9 Months Ended |
Sep. 30, 2017 | |
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”, the “Company”, “we”, “us” and “our”), a Delaware corporation (formerly Cardigant Medical Inc.) through Hong Kong Takung Art Company Limited (formerly 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. Hong Kong Takung was incorporated in Hong Kong on September 17, 2012 Takung (Shanghai) Co., Ltd (“Shanghai Takung”) is a limited liability company, with a registered capital of $ 1 July 28, 2015 Shanghai Takung set up a new office in Hangzhou, PRC on November 20, 2016 for technology development. Takung Cultural Development (Tianjin) Co., Ltd (“Tianjin Takung”) is a limited liability company, with a registered capital of $ 1 Tianjin Takung provides technology support services to Hong Kong Takung and Shanghai Takung and also carries out marketing and promotion activities in mainland China. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying condensed consolidated balance sheet as of December 31, 2016, which has been derived from audited financial statements, and the unaudited interim condensed consolidated financial statements as of September 30, 2017 and for the three months ended and nine months ended September 30, 2017 and 2016 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and disclosures, which are normally included in financial statements prepared in accordance with U.S. GAAP, have been omitted pursuant to such rules and regulations, although the management believes that the disclosures made are adequate to provide for fair presentation. The interim financial information should be read in conjunction with the Financial Statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016, previously filed with the SEC. This basis of accounting involves the application of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when incurred. The Company’s financial statements are expressed in U.S. dollars. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the Company’s unaudited interim condensed consolidated financial position as of September 30, 2017, its consolidated results of operations and cash flows for the nine-month periods ended September 30, 2017 and 2016, as applicable, have been made. The interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods. |
PREPAYMENT AND OTHER CURRENT AS
PREPAYMENT AND OTHER CURRENT ASSETS | 9 Months Ended |
Sep. 30, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets [Text Block] | 3. PREPAYMENT AND OTHER CURRENT ASSETS September 30, December 31, 2017 2016 (Unaudited) Advertising and promotional services 438,741 296,163 Prepaid professional fee 144,706 - Prepaid rental expense 82,793 60,822 Prepaid insurance 54,875 31,082 Prepaid maintenance of trading system 78,784 17,514 Staff advance 11,263 28,806 Prepaid financial advisory and banking services 39,153 201,808 Short-term borrowings to third party - 259,254 Other current assets 19,916 72,997 Prepayment and other current assets $ 870,231 $ 968,446 |
ACCOUNT RECEIVABLES, NET
ACCOUNT RECEIVABLES, NET | 9 Months Ended |
Sep. 30, 2017 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 4. ACCOUNT RECEIVABLES, NET September 30, December 31, 2017 2016 (Unaudited) Listing fee $ 1,562,924 $ 1,403,255 Authorized agent subscription revenue 924,100 995,453 Monthly commission fee 1,422,750 605,677 Others 63,323 54,183 Less: allowance for doubtful accounts (240,528) - Account receivables, net $ 3,732,569 $ 3,058,568 Management reviewed the collectability of the receivables periodically, and identified certain inactive traders during this quarter. Management considered the receivables due from these traders are uncertain and provided bad debt provision of $240,528 for the three and nine months ended September 30, 2017. |
LOAN RECEIVABLES
LOAN RECEIVABLES | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Financing Receivables [Text Block] | 5. LOAN RECEIVABLES Original September 30, December 31, Annual Amount 2017 2016 Interest Repayment Date Borrower Lender (RMB) (USD) (USD) Rate Due Date (Unaudited) 7/15/2016 Xiaohui Wang Shanghai Takung 10,080,000 $ - $ 1,451,822 0 % 3/31/2017 8/24/2016 Xiaohui Wang Shanghai Takung 13,350,000 $ - $ 1,922,800 0 % 3/31/2017 11/14/2016 Xiaohui Wang Shanghai Takung 10,275,000 $ 1,544,346 $ 1,479,908 0 % 10/31/2017 12/9/2016 Xiaohui Wang Tianjin Takung 10,550,000 $ 1,585,680 $ 1,519,516 0 % 11/30/2017 1/4/2017 Xiaohui Wang Tianjin Takung 24,461,505 $ 3,676,597 $ - 0 % 12/31/2017 Total $ 6,806,623 $ 6,374,046 All the transactions were aimed to meet the Company’s working capital needs in US Dollar, which is freely convertible to Hong Kong Dollar. • The interest-free loans (the “RMB Loans”) that Shanghai Takung and Tianjin Takung entered were guaranteed by Chongqing Wintus (New Star) Enterprises Group (“Chongqing”). Xiaohui Wang (“Ms. Wang”) is a national of the People’s Republic of China. Ms. Wang is a shareholder and the legal representative of Chongqing. Both Chongqing and Ms. Wang are the non-related parties to the Company. • In the meantime, Hong Kong Takung entered into loan agreements (the “US Dollar Loans”) with Merit Crown Limited, a Hong Kong company (“Merit Crown) with interest accruing at a rate of 8 Through an understanding between Ms. Wang and Merit Crown, the US Dollar Loans are “secured” by the RMB Loans. It is the understanding between the parties that when the US Dollar Loans are repaid, the RMB Loans will be repaid at the same time. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 6. PROPERTY AND EQUIPMENT, NET September 30, December 31, 2017 2016 (Unaudited) Furniture, fixtures and equipment $ 157,736 $ 100,386 Leasehold improvements 402,597 298,965 Computer trading and clearing system 3,220,318 2,802,430 Sub-total 3,780,651 3,201,781 Less: accumulated depreciation (1,676,544) (1,136,599) Property and equipment, net $ 2,104,107 $ 2,065,182 Depreciation expense amounted to $ 190,626 133,608 538,532 373,308 |
ACCRUED EXPENSES AND OTHER PAYA
ACCRUED EXPENSES AND OTHER PAYABLES | 9 Months Ended |
Sep. 30, 2017 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 7. ACCRUED EXPENSES AND OTHER PAYABLES September 30, December 31, 2017 2016 (Unaudited) Trading and clearing system $ 54,688 $ 61,735 Accruals for professional fees 19,972 49,952 Accruals for consulting fees 297,461 290,773 Payroll payables 295,722 141,022 Accruals for business trip expense 23,722 - Other payables 89,235 65,401 Total accrued expenses and other payables $ 780,800 $ 608,883 |
SHORT-TERM BORROWINGS FROM THIR
SHORT-TERM BORROWINGS FROM THIRD PARTIES | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Short-term Debt [Text Block] | 8. SHORT-TERM BORROWINGS FROM THIRD PARTIES September 30, December 31, Original Amount 2017 2016 Annual Repayment Date Borrower Lender (HKD) (USD) (USD) Interest Rate Due Date (Unaudited) 7/15/2016 Hong Kong Takung Merit Crown Limited 11,700,000 $ 1,497,888 $ 1,509,015 8 % 12/31/2017 8/24/2016 Hong Kong Takung Merit Crown Limited 15,596,100 $ 1,996,684 $ 2,011,518 8 % 12/31/2017 11/18/2016 Hong Kong Takung Merit Crown Limited 11,479,102 $ 1,469,607 $ 1,480,525 8 % 10/31/2017 12/9/2016 Hong Kong Takung Merit Crown Limited 11,787,600 $ 1,509,103 $ 1,520,314 8 % 11/30/2017 Less: Discount loan payable $ 101,382 $ 212,859 Total $ 6,371,900 $ 6,308,513 The US Dollar Loans are to provide Hong Kong Takung with sufficient US Dollar-denominated currency to meet its working capital requirements. It is “secured” by the aforementioned RMB Loans (See Note 5) of equivalent amount by its subsidiary to an individual and guarantor affiliated with the lender of the US Dollar Loans. It is the understanding between the parties that when the US Dollar Loans are repaid, the RMB Loans will similarly be repaid. The weighted average interest rate of outstanding short-term borrowings was 8 6,419,099 1,678,803 133,174 62,670 394,295 62,670 On October 30, 2017, Hong Kong Takung entered into agreements with both Merit Crown Limited and Ms. Wang to extend the US Dollar Loan and RMB Loan (see Note 5) with the original maturity date on October 31, 2017, to October 31, 2018. |
RELATED PARTY BALANCES AND TRAN
RELATED PARTY BALANCES AND TRANSACTIONS | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 9. RELATED PARTY BALANCES AND TRANSACTIONS The following is a list of related parties to which the Company has transactions with: Amount due to related party September 30, December 31, 2017 2016 (Unaudited) Mao (a) $ 1,085,480 $ 1,031,805 Total 1,085,480 1,031,805 The interest rate of the outstanding short-term loan from Mao was 8 61,283 19,941 20,652 19,941 On October 26, 2017, Hong Kong Takung entered into a supplementary agreement with Mao that, as of 30 September 2017, the outstanding principal amount of the Loan (as defined in the Loan Agreement) to be repaid by Hong Kong Takung to Mao is HK$ 8,000,000 Outstanding Principal Loan Amount Accrued Interest Mao hereby agreed to extend the maturity date of the Outstanding Principal Loan Amount and the interest thereof by Hong Kong Takung as below: (i) HK$4,500,000 and the interest thereof, together with the Accrued Interest to be due and payable by November 30, 2017; and (ii) HK$3,500,000 together with the interest thereof to be due and payable by December 31, 2017. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 10. INCOME TAXES United States of America As of September 30, 2017 and December 31, 2016, the Company in the United States had $4,008,459 and $ 2,212,890 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 a full valuation allowance for the deferred tax assets arising from the losses at the U.S. during the nine months ended September 30, 2017 and year ended December 31, 2016 amounting to $ 1,414,445 962,012 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 were subject to income tax at a rate of 25 For the Three Months Ended For the Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Current $ 159,281 $ 684,801 $ 662,598 $ 1,561,728 Deferred (34,619) (88,069) (68,221) (184,650) Total provision for income taxes $ 124,662 $ 596,732 $ 594,377 $ 1,377,078 For the Three Months Ended For the Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Income before income tax expense $ 151,697 $ 3,048,469 $ 1,651,515 $ 6,041,710 Computed tax expense with statutory tax rate 25,030 502,998 271,806 994,688 Impact of different tax rates in other jurisdictions (73,258) (24,505) (230,651) (254,199) Non-deductible items: Tax effect of non-deductible expenses 25,896 11,117 100,789 32,742 Changes in valuation allowance 146,994 107,122 452,433 603,847 Actual income tax expense $ 124,662 $ 596,732 $ 594,377 $ 1,377,078 The Company's effective tax rate was 82.2 19.6 36.0 22.8 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 11. COMMITMENTS AND CONTINGENCIES Operation Commitments Three months ending December 31, 2017 $ 244,960 Year ending December 31, 2018 761,175 Year ending December 31, 2019 223,026 Year ending December 31, 2020 39,999 Year ending December 31, 2021 15,030 Year ending December 31, 2022 and thereafter 53,232 Total $ 1,337,422 Rental expense of the Company was $ 293,338 199,514 721,492 428,440 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 12. EARNINGS PER SHARE For the Three Months Ended For the Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Numerator: Net income $ 27,034 2,451,737 $ 1,057,138 4,664,632 Denominator: Weighted-average shares outstanding Weighted-average shares outstanding - Basic 11,188,882 10,632,276 11,039,880 10,632,276 Stock options and restricted shares 59,806 733,321 358,202 645,569 Weighted-average shares outstanding - Diluted 11,248,688 11,365,597 11,398,082 11,277,845 Earnings per share -Basic 0.00 0.23 0.10 0.44 -Diluted 0.00 0.22 0.09 0.41 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. For the three months ended September 30, 2017, the diluted earnings per share calculation did not include options to purchase up to 109,160 shares of the Company's common stock, because they were out of money. It has no such impact for three months ended September 30, 2016, nine months ended September 30, 2017 and 2016 respectively. There were dilutive effects of 487,000 487,000 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 13. SUBSEQUENT EVENT Other than the newly signed extension agreements as disclosed in Note 8, and the supplementary agreement with related party as disclosed in Note 9 above, the Company does not identify any other subsequent events with material financial impact on the unaudited condensed consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN19
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | The accompanying condensed consolidated balance sheet as of December 31, 2016, which has been derived from audited financial statements, and the unaudited interim condensed consolidated financial statements as of September 30, 2017 and for the three months ended and nine months ended September 30, 2017 and 2016 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and disclosures, which are normally included in financial statements prepared in accordance with U.S. GAAP, have been omitted pursuant to such rules and regulations, although the management believes that the disclosures made are adequate to provide for fair presentation. The interim financial information should be read in conjunction with the Financial Statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016, previously filed with the SEC. This basis of accounting involves the application of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when incurred. The Company’s financial statements are expressed in U.S. dollars. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the Company’s unaudited interim condensed consolidated financial position as of September 30, 2017, its consolidated results of operations and cash flows for the nine-month periods ended September 30, 2017 and 2016, as applicable, have been made. The interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods. |
PREPAYMENT AND OTHER CURRENT 20
PREPAYMENT AND OTHER CURRENT ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | Prepayment and other current assets mainly consist of the prepaid services for development, maintenance of online trading system, the advertising and promotional services, prepaid financial advisory and banking services, as well as other current assets. September 30, December 31, 2017 2016 (Unaudited) Advertising and promotional services 438,741 296,163 Prepaid professional fee 144,706 - Prepaid rental expense 82,793 60,822 Prepaid insurance 54,875 31,082 Prepaid maintenance of trading system 78,784 17,514 Staff advance 11,263 28,806 Prepaid financial advisory and banking services 39,153 201,808 Short-term borrowings to third party - 259,254 Other current assets 19,916 72,997 Prepayment and other current assets $ 870,231 $ 968,446 |
ACCOUNT RECEIVABLES, NET (Table
ACCOUNT RECEIVABLES, NET (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Accounts Receivable [Member] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Account receivables consisted of the following: September 30, December 31, 2017 2016 (Unaudited) Listing fee $ 1,562,924 $ 1,403,255 Authorized agent subscription revenue 924,100 995,453 Monthly commission fee 1,422,750 605,677 Others 63,323 54,183 Less: allowance for doubtful accounts (240,528) - Account receivables, net $ 3,732,569 $ 3,058,568 |
LOAN RECEIVABLES (Tables)
LOAN RECEIVABLES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Loans Receivable [Member] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | The following table sets forth a summary of the loan agreements in loan receivables balance: Original September 30, December 31, Annual Amount 2017 2016 Interest Repayment Date Borrower Lender (RMB) (USD) (USD) Rate Due Date (Unaudited) 7/15/2016 Xiaohui Wang Shanghai Takung 10,080,000 $ - $ 1,451,822 0 % 3/31/2017 8/24/2016 Xiaohui Wang Shanghai Takung 13,350,000 $ - $ 1,922,800 0 % 3/31/2017 11/14/2016 Xiaohui Wang Shanghai Takung 10,275,000 $ 1,544,346 $ 1,479,908 0 % 10/31/2017 12/9/2016 Xiaohui Wang Tianjin Takung 10,550,000 $ 1,585,680 $ 1,519,516 0 % 11/30/2017 1/4/2017 Xiaohui Wang Tianjin Takung 24,461,505 $ 3,676,597 $ - 0 % 12/31/2017 Total $ 6,806,623 $ 6,374,046 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment consisted of the following: September 30, December 31, 2017 2016 (Unaudited) Furniture, fixtures and equipment $ 157,736 $ 100,386 Leasehold improvements 402,597 298,965 Computer trading and clearing system 3,220,318 2,802,430 Sub-total 3,780,651 3,201,781 Less: accumulated depreciation (1,676,544) (1,136,599) Property and equipment, net $ 2,104,107 $ 2,065,182 |
ACCRUED EXPENSES AND OTHER PA24
ACCRUED EXPENSES AND OTHER PAYABLES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | Accrued expenses and other payables as of September 30, 2017 and December 31, 2016 consisted of: September 30, December 31, 2017 2016 (Unaudited) Trading and clearing system $ 54,688 $ 61,735 Accruals for professional fees 19,972 49,952 Accruals for consulting fees 297,461 290,773 Payroll payables 295,722 141,022 Accruals for business trip expense 23,722 - Other payables 89,235 65,401 Total accrued expenses and other payables $ 780,800 $ 608,883 |
SHORT-TERM BORROWINGS FROM TH25
SHORT-TERM BORROWINGS FROM THIRD PARTIES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt [Table Text Block] | The following table sets forth a summary of the loan agreements in loan receivables balance: September 30, December 31, Original Amount 2017 2016 Annual Repayment Date Borrower Lender (HKD) (USD) (USD) Interest Rate Due Date (Unaudited) 7/15/2016 Hong Kong Takung Merit Crown Limited 11,700,000 $ 1,497,888 $ 1,509,015 8 % 12/31/2017 8/24/2016 Hong Kong Takung Merit Crown Limited 15,596,100 $ 1,996,684 $ 2,011,518 8 % 12/31/2017 11/18/2016 Hong Kong Takung Merit Crown Limited 11,479,102 $ 1,469,607 $ 1,480,525 8 % 10/31/2017 12/9/2016 Hong Kong Takung Merit Crown Limited 11,787,600 $ 1,509,103 $ 1,520,314 8 % 11/30/2017 Less: Discount loan payable $ 101,382 $ 212,859 Total $ 6,371,900 $ 6,308,513 |
RELATED PARTY BALANCES AND TR26
RELATED PARTY BALANCES AND TRANSACTIONS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Mao [Member] | |
Schedule Of Debt Interest Expenses [Table Text Block] | Amount due to related party consisted of the following as of the periods indicated: September 30, December 31, 2017 2016 (Unaudited) Mao (a) $ 1,085,480 $ 1,031,805 Total 1,085,480 1,031,805 (a) Jianping Mao (“Mao”), the wife of the Vice General Manager of Hong Kong Takung. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The income tax provision consists of the following components: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Current $ 159,281 $ 684,801 $ 662,598 $ 1,561,728 Deferred (34,619) (88,069) (68,221) (184,650) Total provision for income taxes $ 124,662 $ 596,732 $ 594,377 $ 1,377,078 |
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: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Income before income tax expense $ 151,697 $ 3,048,469 $ 1,651,515 $ 6,041,710 Computed tax expense with statutory tax rate 25,030 502,998 271,806 994,688 Impact of different tax rates in other jurisdictions (73,258) (24,505) (230,651) (254,199) Non-deductible items: Tax effect of non-deductible expenses 25,896 11,117 100,789 32,742 Changes in valuation allowance 146,994 107,122 452,433 603,847 Actual income tax expense $ 124,662 $ 596,732 $ 594,377 $ 1,377,078 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 September 30, 2017 are payable as follows: Three months ending December 31, 2017 $ 244,960 Year ending December 31, 2018 761,175 Year ending December 31, 2019 223,026 Year ending December 31, 2020 39,999 Year ending December 31, 2021 15,030 Year ending December 31, 2022 and thereafter 53,232 Total $ 1,337,422 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted-average number of common shares and dilutive potential common shares outstanding during the period. For the Three Months Ended For the Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Numerator: Net income $ 27,034 2,451,737 $ 1,057,138 4,664,632 Denominator: Weighted-average shares outstanding Weighted-average shares outstanding - Basic 11,188,882 10,632,276 11,039,880 10,632,276 Stock options and restricted shares 59,806 733,321 358,202 645,569 Weighted-average shares outstanding - Diluted 11,248,688 11,365,597 11,398,082 11,277,845 Earnings per share -Basic 0.00 0.23 0.10 0.44 -Diluted 0.00 0.22 0.09 0.41 |
ORGANIZATION AND DESCRIPTION 30
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Textual) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
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 | Shanghai Takung |
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 |
PREPAYMENT AND OTHER CURRENT 31
PREPAYMENT AND OTHER CURRENT ASSETS (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Advertising and promotional services | $ 438,741 | $ 296,163 |
Prepaid professional fee | 144,706 | 0 |
Prepaid rental expense | 82,793 | 60,822 |
Prepaid insurance | 54,875 | 31,082 |
Prepaid maintenance of trading system | 78,784 | 17,514 |
Staff advance | 11,263 | 28,806 |
Prepaid financial advisory and banking services | 39,153 | 201,808 |
Short-term borrowings to third party | 0 | 259,254 |
Other current assets | 19,916 | 72,997 |
Prepayment and other current assets | $ 870,231 | $ 968,446 |
ACCOUNT RECEIVABLES, NET (Detai
ACCOUNT RECEIVABLES, NET (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Less: allowance for doubtful accounts | $ (240,528) | $ 0 |
Account receivables, net | 3,732,569 | 3,058,568 |
Listing Fee [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross, Current | 1,562,924 | 1,403,255 |
Authorized Agent Subscription Revenue [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross, Current | 924,100 | 995,453 |
Monthly Commission Fee [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross, Current | 1,422,750 | 605,677 |
Others [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross, Current | $ 63,323 | $ 54,183 |
ACCOUNT RECEIVABLES, NET (Det33
ACCOUNT RECEIVABLES, NET (Details Taxtual) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Provision for Doubtful Accounts | $ 240,528 | $ 240,528 |
LOAN RECEIVABLES (Details)
LOAN RECEIVABLES (Details) | 9 Months Ended | ||
Sep. 30, 2017USD ($) | Sep. 30, 2017CNY (¥) | Dec. 31, 2016USD ($) | |
Loan receivables, Total | $ 6,806,623 | $ 6,374,046 | |
Loan Receivable One [Member] | |||
Loan receivables, Initiation Date | Jul. 15, 2016 | ||
Loan receivables, Name Of Borrower | Xiaohui Wang | ||
Loan receivables, Name of Lender | Shanghai Takung | ||
Loan receivables, Total | $ 0 | ¥ 10,080,000 | 1,451,822 |
Annual Interest Rate | 0.00% | ||
Repayment Due Date | Mar. 31, 2017 | ||
Loan Receivable Two [Member] | |||
Loan receivables, Initiation Date | Aug. 24, 2016 | ||
Loan receivables, Name Of Borrower | Xiaohui Wang | ||
Loan receivables, Name of Lender | Shanghai Takung | ||
Loan receivables, Total | $ 0 | 13,350,000 | 1,922,800 |
Annual Interest Rate | 0.00% | ||
Repayment Due Date | Mar. 31, 2017 | ||
Loan Receivable Three [Member] | |||
Loan receivables, Initiation Date | Nov. 14, 2016 | ||
Loan receivables, Name Of Borrower | Xiaohui Wang | ||
Loan receivables, Name of Lender | Shanghai Takung | ||
Loan receivables, Total | $ 1,544,346 | 10,275,000 | 1,479,908 |
Annual Interest Rate | 0.00% | ||
Repayment Due Date | Oct. 31, 2017 | ||
Loan Receivable Four [Member] | |||
Loan receivables, Initiation Date | Dec. 9, 2016 | ||
Loan receivables, Name Of Borrower | Xiaohui Wang | ||
Loan receivables, Name of Lender | Tianjin Takung | ||
Loan receivables, Total | $ 1,585,680 | 10,550,000 | 1,519,516 |
Annual Interest Rate | 0.00% | ||
Repayment Due Date | Nov. 30, 2017 | ||
Loan Receivable Five [Member] | |||
Loan receivables, Initiation Date | Jan. 4, 2017 | ||
Loan receivables, Name Of Borrower | Xiaohui Wang | ||
Loan receivables, Name of Lender | Tianjin Takung | ||
Loan receivables, Total | $ 3,676,597 | ¥ 24,461,505 | $ 0 |
Annual Interest Rate | 0.00% | ||
Repayment Due Date | Dec. 31, 2017 |
LOAN RECEIVABLES (Details Textu
LOAN RECEIVABLES (Details Textual) | Sep. 30, 2017 | Dec. 31, 2016 |
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% |
Merit Crown [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Cost | ||
Furniture, fixtures and equipment | $ 157,736 | $ 100,386 |
Leasehold improvements | 402,597 | 298,965 |
Computer trading and clearing system | 3,220,318 | 2,802,430 |
Sub-total | 3,780,651 | 3,201,781 |
Less: accumulated depreciation | (1,676,544) | (1,136,599) |
Property and equipment, net | $ 2,104,107 | $ 2,065,182 |
PROPERTY AND EQUIPMENT, NET (37
PROPERTY AND EQUIPMENT, NET (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation | $ 190,626 | $ 133,608 | $ 538,532 | $ 373,308 |
ACCRUED EXPENSES AND OTHER PA38
ACCRUED EXPENSES AND OTHER PAYABLES (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule Of Accounts Payable And Accrued Liabilities [Line Items] | ||
Trading and clearing system | $ 54,688 | $ 61,735 |
Accruals for professional fees | 19,972 | 49,952 |
Accruals for consulting fees | 297,461 | 290,773 |
Payroll payables | 295,722 | 141,022 |
Accruals for business trip expense | 23,722 | 0 |
Other payables | 89,235 | 65,401 |
Total accrued expenses and other payables | $ 780,800 | $ 608,883 |
SHORT-TERM BORROWINGS FROM TH39
SHORT-TERM BORROWINGS FROM THIRD PARTIES (Details) | 9 Months Ended | ||
Sep. 30, 2017USD ($) | Sep. 30, 2017HKD | Dec. 31, 2016USD ($) | |
Loan receivables balance, Total | $ 6,371,900 | $ 6,308,513 | |
Less: Discount loan payable | $ 101,382 | 212,859 | |
Short Term Debt One [Member] | |||
Issuance Date | Jul. 15, 2016 | ||
Borrower | Hong Kong Takung | ||
Lender | Merit Crown Limited | ||
Loan receivables balance, Total | $ 1,497,888 | HKD 11,700,000 | 1,509,015 |
Annual Interest Rate | 8.00% | 8.00% | |
Repayment Due Date | Dec. 31, 2017 | ||
Short Term Debt Two [Member] | |||
Issuance Date | Aug. 24, 2016 | ||
Borrower | Hong Kong Takung | ||
Lender | Merit Crown Limited | ||
Loan receivables balance, Total | $ 1,996,684 | HKD 15,596,100 | 2,011,518 |
Annual Interest Rate | 8.00% | 8.00% | |
Repayment Due Date | Dec. 31, 2017 | ||
Short Term Debt Three [Member] | |||
Issuance Date | Nov. 18, 2016 | ||
Borrower | Hong Kong Takung | ||
Lender | Merit Crown Limited | ||
Loan receivables balance, Total | $ 1,469,607 | HKD 11,479,102 | 1,480,525 |
Annual Interest Rate | 8.00% | 8.00% | |
Repayment Due Date | Oct. 31, 2017 | ||
Short Term Debt Four [Member] | |||
Issuance Date | Dec. 9, 2016 | ||
Borrower | Hong Kong Takung | ||
Lender | Merit Crown Limited | ||
Loan receivables balance, Total | $ 1,509,103 | HKD 11,787,600 | $ 1,520,314 |
Annual Interest Rate | 8.00% | 8.00% | |
Repayment Due Date | Nov. 30, 2017 |
SHORT-TERM BORROWINGS FROM TH40
SHORT-TERM BORROWINGS FROM THIRD PARTIES (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | 8.00% | ||
Interest Expense | $ 133,174 | $ 62,670 | $ 394,295 | $ 62,670 | |
Short-term Debt, Average Outstanding Amount | $ 6,419,099 | $ 1,678,803 |
RELATED PARTY BALANCES AND TR41
RELATED PARTY BALANCES AND TRANSACTIONS (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 | |
Due to Related Parties, Total | $ 1,085,480 | $ 1,031,805 | |
Mao [Member] | |||
Due to Related Parties, Total | [1] | $ 1,085,480 | $ 1,031,805 |
[1] | Jianping Mao (“Mao”), the wife of the Vice General Manager of Hong Kong Takung. |
RELATED PARTY BALANCES AND TR42
RELATED PARTY BALANCES AND TRANSACTIONS (Details Textual) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017HKD | Dec. 31, 2016USD ($) | |
Related Party Transaction [Line Items] | ||||||
Interest Expense | $ 133,174 | $ 62,670 | $ 394,295 | $ 62,670 | ||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | 8.00% | 8.00% | ||
Due to Related Parties | $ 1,085,480 | $ 1,085,480 | $ 1,031,805 | |||
Jianping Mao [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Interest Expense | $ 20,652 | $ 19,941 | $ 61,283 | $ 19,941 | ||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | |
Due to Related Parties | HKD | HKD 8,000,000 | |||||
Interest Payable, Current | HKD | HKD 478,685 | |||||
Debt Instrument, Payment Terms | Mao hereby agreed to extend the maturity date of the Outstanding Principal Loan Amount and the interest thereof by Hong Kong Takung as below: (i) HK$4,500,000 and the interest thereof, together with the Accrued Interest to be due and payable by November 30, 2017; and (ii) HK$3,500,000 together with the interest thereof to be due and payable by December 31, 2017. |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Taxes [Line Items] | ||||
Current | $ 159,281 | $ 684,801 | $ 662,598 | $ 1,561,728 |
Deferred | (34,619) | (88,069) | (68,221) | (184,650) |
Total provision for income taxes | $ 124,662 | $ 596,732 | $ 594,377 | $ 1,377,078 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income before income tax expense | $ 151,696 | $ 3,048,469 | $ 1,651,515 | $ 6,041,710 |
Computed tax expense with statutory tax rate | 25,030 | 502,998 | 271,806 | 994,688 |
Impact of different tax rates in other jurisdictions | (73,258) | (24,505) | (230,651) | (254,199) |
Non-deductible items: | ||||
Tax effect of non-deductible expenses | 25,896 | 11,117 | 100,789 | 32,742 |
Changes in valuation allowance | 146,994 | 107,122 | 452,433 | 603,847 |
Actual income tax expense | $ 124,662 | $ 596,732 | $ 594,377 | $ 1,377,078 |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Income Taxes [Line Items] | |||||
Operating Loss Carryforwards | $ 4,008,459 | $ 4,008,459 | $ 2,212,890 | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 82.20% | 19.60% | 36.00% | 22.80% | |
Deferred Tax Assets, Valuation Allowance | $ 1,414,445 | $ 1,414,445 | $ 962,012 | ||
Operating Loss Carry forwards, Expiration Period | 20 taxable years | ||||
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% |
COMMITMENTS AND CONTINGENCIES46
COMMITMENTS AND CONTINGENCIES (Details) | Sep. 30, 2017USD ($) |
Operating Leased Assets [Line Items] | |
Three months ending December 31, 2017 | $ 244,960 |
Year ending December 31, 2018 | 761,175 |
Year ending December 31, 2019 | 223,026 |
Year ending December 31, 2020 | 39,999 |
Year ending December 31, 2021 | 15,030 |
Year ending December 31, 2022 and thereafter | 53,232 |
Total | $ 1,337,422 |
COMMITMENTS AND CONTINGENCIES47
COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Operating Leased Assets [Line Items] | ||||
Operating Leases, Rent Expense, Net | $ 293,338 | $ 199,514 | $ 721,492 | $ 428,440 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Numerator: | ||||
Net income | $ 27,034 | $ 2,451,737 | $ 1,057,138 | $ 4,664,632 |
Denominator: | ||||
Weighted-average shares outstanding - Basic | 11,188,882 | 10,632,276 | 11,039,880 | 10,632,276 |
Stock options and restricted shares | 59,806 | 733,321 | 358,202 | 645,569 |
Weighted-average shares outstanding - Diluted | 11,248,688 | 11,365,597 | 11,398,082 | 11,277,845 |
Earnings per share | ||||
-Basic | $ 0 | $ 0.23 | $ 0.10 | $ 0.44 |
-Diluted | $ 0 | $ 0.22 | $ 0.09 | $ 0.41 |
EARNINGS PER SHARE (Details Tex
EARNINGS PER SHARE (Details Textual) - shares | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Mar. 22, 2017 | Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | |
Schedule Of Earnings Per Share [Line Items] | ||||
Incremental Common Shares Attributable to Dilutive Effect of Nonvested Shares with Forfeitable Dividends | 487,000 | 487,000 | ||
Common Stock [Member] | ||||
Schedule Of Earnings Per Share [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 109,160 | |||
Regeneration [Member] | ||||
Schedule Of Earnings Per Share [Line Items] | ||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 487,000 |