Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Apr. 02, 2018 | Jun. 30, 2017 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
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 | $ 57,710,576.06 | ||
Trading Symbol | TKAT | ||
Entity Common Stock, Shares Outstanding | 11,208,882 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 11,866,965 | $ 13,395,337 |
Restricted cash | 25,273,617 | 21,743,360 |
Account receivables, net | 2,291,698 | 3,058,568 |
Prepayment and other current assets | 2,300,207 | 968,446 |
Loan receivables | 7,834,115 | 6,374,046 |
Total current assets | 49,566,602 | 45,539,757 |
Non-current assets | ||
Property and equipment, net | 2,191,321 | 2,065,182 |
Intangible assets | 22,334 | 20,546 |
Deferred tax assets, net | 291,430 | 181,154 |
Other non-current assets | 757,235 | 428,764 |
Total non-current assets | 3,262,320 | 2,695,646 |
Total assets | 52,828,922 | 48,235,403 |
Current liabilities | ||
Accrued expenses and other payables | 1,461,858 | 608,883 |
Customer deposits | 25,273,617 | 21,743,360 |
Advance from customers | 170,078 | 360,248 |
Short-term borrowings from third parties | 7,208,761 | 6,308,513 |
Amount due to related party | 483,822 | 1,031,805 |
Tax payables | 312,575 | 549,897 |
Total current liabilities | 34,910,711 | 30,602,706 |
NON-CURRENT LIABILITIES | ||
Total liabilities | 34,910,711 | 30,602,706 |
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 December 31, 2017; 11,169,276 shares issued and outstanding as of December 31, 2016) | 11,189 | 11,169 |
Additional paid-in capital | 6,116,216 | 5,532,426 |
Retained earnings | 12,111,096 | 13,172,671 |
Accumulated other comprehensive loss | (320,290) | (1,083,569) |
Total stockholders' equity | 17,918,211 | 17,632,697 |
Total liabilities and stockholders' equity | $ 52,828,922 | $ 48,235,403 |
CONSOLIDATED BALANCE SHEETS _Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
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 | 11,188,882 | 11,169,276 |
Common stock, shares outstanding | 11,188,882 | 11,169,276 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue | ||
Listing fee | $ 5,572,840 | $ 10,914,300 |
Commission | 6,112,868 | 5,416,436 |
Authorized agent subscription revenue | 0 | 1,049,364 |
Management fee | 1,235,659 | 1,761,977 |
Annual fee | 1,021 | 1,352 |
Total revenue | 12,922,388 | 19,143,429 |
Cost of revenue | (1,247,286) | (1,129,031) |
Gross profit | 11,675,102 | 18,014,398 |
Operating expenses | ||
General and administrative expenses | (12,111,075) | (7,299,543) |
Selling expenses | (1,395,709) | (2,272,339) |
Total operating expenses | (13,506,784) | (9,571,882) |
(Loss) income from operations | (1,831,682) | 8,442,516 |
Other income and expenses: | ||
Other income | 576,965 | 416,353 |
Loan interest expense | (600,819) | (202,376) |
Exchange gain (loss ) | 1,136,817 | (516,350) |
Total other income (loss) | 1,112,963 | (302,373) |
(Loss) income before income tax expense | (718,719) | 8,140,143 |
Provision for income taxes | (342,856) | (1,769,449) |
Net (loss) income | (1,061,575) | 6,370,694 |
Foreign currency translation adjustment | 763,279 | (1,082,151) |
Comprehensive (loss) income | $ (298,296) | $ 5,288,543 |
Earnings per common share - basic | $ (0.10) | $ 0.60 |
Earnings per common share - diluted | $ (0.10) | $ 0.56 |
Weighted average number of common shares outstanding -basic | 11,077,845 | 10,641,180 |
Weighted average number of common shares outstanding -diluted | 11,077,845 | 11,309,190 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Total | Common stock [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Accumulated Other Comprehensive [Member] |
Balance at Dec. 31, 2015 | $ 11,276,895 | $ 11,119 | $ 4,465,217 | $ 6,801,977 | $ (1,418) |
Balance (in Shares) at Dec. 31, 2015 | 11,119,276 | ||||
Issuance of shares | 254,500 | $ 50 | 254,450 | 0 | 0 |
Issuance of shares (in shares) | 50,000 | ||||
Stock-based compensation | 812,759 | $ 0 | 812,759 | 0 | 0 |
Net income (loss) for the Year | 6,370,694 | 0 | 0 | 6,370,694 | 0 |
Foreign currency translation adjustment | (1,082,151) | $ 0 | 0 | 0 | (1,082,151) |
Balance (in Shares) at Dec. 31, 2016 | 11,169,276 | ||||
Balance at Dec. 31, 2016 | 17,632,697 | $ 11,169 | 5,532,426 | 13,172,671 | (1,083,569) |
Issuance of ordinary shares for restricted stock award | $ 20 | (20) | |||
Issuance of ordinary shares for restricted stock award (in shares) | 19,606 | ||||
share-based payment | 46,000 | $ 0 | 46,000 | 0 | 0 |
Stock-based compensation | 537,810 | 537,810 | 0 | 0 | |
Net income (loss) for the Year | (1,061,575) | 0 | 0 | (1,061,575) | 0 |
Foreign currency translation adjustment | 763,279 | $ 0 | 0 | 0 | 763,279 |
Balance (in Shares) at Dec. 31, 2017 | 11,188,882 | ||||
Balance at Dec. 31, 2017 | $ 17,918,211 | $ 11,189 | $ 6,116,216 | $ 12,111,096 | $ (320,290) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (1,061,575) | $ 6,370,694 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 742,272 | 523,698 |
Interest Expense | 283,636 | 0 |
Bad debt expense | 2,076,159 | 0 |
Changes in exchange rate | (1,105,458) | 508,606 |
Stock-based compensation | 751,157 | 812,759 |
Deferred tax liabilities | (23,668) | 17,581 |
Deferred tax assets | (86,608) | (243,772) |
Changes in operating assets and liabilities: | ||
Account receivables | (1,309,289) | (2,874,031) |
Amount due to related party | (622,392) | 0 |
Prepayment and other current assets | (2,056,243) | 528,653 |
Other non-current assets | (328,471) | (307,383) |
Restricted cash | (3,530,257) | (5,548,071) |
Due to director | 0 | 502 |
Customer deposits | 3,530,257 | 5,548,071 |
Tax payables | (237,322) | (1,014,473) |
Advance from customer | (190,170) | 360,248 |
Accrued expenses and other payables | 852,975 | (58,739) |
Net cash (used in) provided by operating activities | (2,314,997) | 4,624,343 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (814,455) | (1,412,302) |
Purchase of available-for-sale investments | (76,810,709) | (8,929,857) |
Maturity and redemption of available-for-sale investments | 76,810,709 | 8,929,857 |
Purchase of held-to-maturity investments | 0 | (14,402,996) |
Repayment of loans by third parties | 3,795,028 | 0 |
Maturity and redemption of held-to-maturity investments | 0 | 14,402,996 |
Loans to third parties | (4,553,532) | (6,374,046) |
Net cash used in investing activities | (1,572,959) | (7,786,348) |
Cash flows from financing activities: | ||
Proceeds from short-term borrowings | 1,000,000 | 6,308,513 |
Proceeds from related party loans | 0 | 1,031,805 |
Net cash provided by financing activities | 1,000,000 | 7,340,318 |
Effect of exchange rate change on cash and cash equivalents | 1,359,584 | (1,552,432) |
Net (decrease) increase in cash and cash equivalents | (1,528,372) | 2,625,881 |
Cash and cash equivalents, beginning balance | 13,395,337 | 10,769,456 |
Cash and cash equivalents, ending balance | 11,866,965 | 13,395,337 |
Supplemental cash flows information: | ||
Cash paid for interest | 526,411 | 434,968 |
Cash paid for income tax | $ 1,830,376 | $ 3,024,665 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 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”), 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 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 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. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 2. 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, Shanghai Takung and Tianjin Takung. All intercompany transactions, balances and unrealized profit and losses have been eliminated on consolidation. 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, 2017 and 2016. 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, 2017 and 2016, 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 functional currency of Tianjin Takung is the Renminbi (“RMB”). The reporting currency of the Company is the United States Dollar (“USD”). Transactions in currencies other than the entity’s functional currency are recorded at the rates of exchange prevailing on the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing at the end of the reporting periods. Exchange differences arising on the settlement of monetary items and on re-translation of monetary items at period-end are included in income statement of the period. For the purpose of presenting these financial statements, the Company’s assets and liabilities with functional currency of HKD are expressed in USD at the exchange rate on the balance sheets dates, which is 7.8128 7.7534 7.7926 7.7620 6.5063 6.9430 6.7569 6.6400 The resulting translation adjustments are reported under accumulated other comprehensive loss in the stockholder’s equity section of the balance sheets. Cash and cash equivalents consist of cash on hand, cash in bank with no restrictions, as well as highly liquid investments which are unrestricted as to withdrawal or use, and which have remaining maturities of three months or less when initially purchased. A significant portion of our cash and cash equivalents is denominated in RMB, and deposits in the financial institutions of China. Chinese governmental policies were introduced in 1996 to allow the convertibility of RMB denominated cash into foreign currencies for current account items, but conversion of RMB denominated cash into foreign exchange for most of the capital items, such as foreign direct investment, loans or securities, requires the approval of the State Administration of Foreign Exchange, or SAFE. These approvals, however, do not guarantee the availability of foreign currencies to fund our business activities outside China, or to repay non-RMB denominated obligations. The cash and cash equivalents as of December 31, 2017 were $11,866,965. Among which, $98,029 was denominated in Hong Kong Dollars in Hong Kong financial institutions, $693,181 and $762,005 were denominated in U.S. dollars and deposited in the financial institutions in Hong Kong and China respectively, and $10,313,750 was denominated in RMB and deposited in the financial institutions of China. 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 except the Company statements of intention with regard to particular deposits. The whole process was monitored and approved by a third party accounting firm. Short term investments consist of held-to-maturity investments and available-for-sale investments. The Company’s held-to-maturity investments consist of financial products purchased from banks, which are not allowed for the early withdrawal. The Company’s short term held-to-maturity investments are classified as short-term investments on the consolidated balance sheets based on their contractual maturity dates which are less than one year and are stated at their amortized costs. Investments classified as available-for-sale investments are carried at their fair values and the unrealized gains or losses from the changes in fair values are reported net of tax in accumulated other comprehensive income until realized. The Company reviews its investments for other-than-temporary impairment (“OTTI”) based on the specific identification method. The Company considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. If the cost of an investment exceeds the investment’s fair value, the Company considers, among other factors, general market conditions, expected future performance of the investees, the duration and the extent to which the fair value of the investment is less than the cost, and the Company’s intent and ability to hold the investment. OTTI is recognized as a loss in the income statement. As of December 31, 2017, all short-term investments under held-to-maturity and available-for-sale investments were redeemed with a nil balance. 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. Loan to third parties is presented under current asset of the balance sheets based on the nature and loan period of time. Prepayment and other current assets mainly consist of the prepayment for, maintenance of online trading system, the advertising and promotional services, prepaid financial advisory and banking services, as well as other 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 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 or expense. 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. We develop systems and solutions for solely internal use. Certain costs incurred in connection with developing or obtaining internal use software are capitalized. Unamortized capitalized costs are included in computer trading and clearing system, within property and equipment, net in the Consolidated Balance Sheets. Capitalized software costs are amortized on a straight-line basis over the estimated useful lives of the software of 5 Classification Estimated useful life Furniture, fixtures and equipment 5 Leasehold improvements Shorter of the remaining lease terms and the estimated 3 years Computer trading and clearing system 5 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, 2017 and 2016, respectively. Intangible assets represent the licensing cost for our trademark registration. For intangible assets with indefinite lives, the Company evaluates intangible assets for impairment at least annually and more often whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. 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, 2017 and 2016. 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. Advance from customers represent trading commissions one month in advance charge to the VIP traders. Starting from April 1, 2016, the Company charges a monthly commission to VIP traders, instead of charging per transaction. The Company obtained two short-term borrowings from third parties, both with 8 The Company generates revenue from its services in connection with the offering and trading of artwork on our system, primarily consisting of listing fees, trading commissions, and management fees. We recognize revenue once all of the following criteria have been met: • persuasive evidence of an arrangement exists; • delivery of our obligations to our customer has occurred; • the price is fixed or determinable; and • collectability of the related receivable is reasonably assured Listing fee - 22.5 48.5 Commission - 0.3 0.2 0.4 0.13 1 For selected Traders, starting from April 1, 2016, we charged a predetermined monthly fee (unlimited trade for specific artworks) for specific artworks. These Traders are selected by authorized agents and reviewed by us. After review, we negotiate individually with each one of them to determine a fixed monthly fee. Different Traders may have different rates but once negotiated and agreed to, the monthly fee is fixed. Commission rebate programs are offered to Traders and service agents. We would rebate 5 15 5 40 68 5 5 The rebates and discounts are recognized as a reduction of revenue in the same period the related revenue is recognized. Our trading volume and transaction value amounts increased significantly from 2016 when we commenced operations in Shanghai and consequently added a significant number of Traders from mainland China. This trend continued into 2017. Management fee - 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. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted by the U.S. government which included a wide range of tax reform affecting businesses including the corporate tax rates, international tax provisions, tax credits and deduction with majority of the tax provision effective after December 31, 2017. Certain activities conducted in foreign jurisdictions may result in the imposition of U.S. corporate income taxes on Takung when its subsidiaries, controlled foreign corporations (“CFCs”), generate income that is subject to Subpart F or GILTI under the U.S. Internal Revenue Code beginning after December 31, 2017. The Company did not accrue any liability, interest or 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, 2017 and 2016. 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. 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, account receivables. The carrying values of the financial instruments approximate their fair values due to their short-term maturities. The Company places its cash and cash equivalents and restricted cash with financial institutions with high-credit ratings and quality. Account receivables 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 Recently Adopted Accounting Standards 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. The amendments in ASU 2014-15 are effective for fiscal years and interim periods within those years, beginning after December 15, 2016. We adopted this amendment in the year beginning January 01, 2017. The adoption of ASU 2014-15 did not have a material impact on the Company’s financial statements. Balance Sheet Classification of Deferred Taxe s : In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes which requires entities to present deferred tax assets and deferred tax liabilities as noncurrent on the consolidated balance sheet. The Company adopted this guidance effective January 1, 2016 and it was applied retrospectively for all prior periods. The Company also adopted this guidance to present the deferred tax assets and deferred tax liabilities with a netted off amount with retrospectively adjusted method. 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. Current GAAP provides that excess tax benefits are recognized in additional paid-in capital whereas tax deficiencies are recognized either as an offset to accumulated excess tax benefit, if any, or in the income statement. Excess tax benefits are not recognized until the deduction reduces tax payable. Excess tax benefits must be separate from other income tax cash flows and classified as a financing activity. Under this amendment, all excess tax benefits and tax deficiencies should be recognized as income tax expense or benefit in the income statement. The tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they incur. Excess tax benefits are recognized regardless of whether the benefit reduces taxes payable in the current period and classified along with other income tax cash flows as an operating activity. The Company adopted this amendments in the first quarter of fiscal year 2017. The Company hasn’t recognized excess tax benefits in additional paid-in capital or tax deficiencies as an offset to accumulated excess tax benefit in the prior periods. No reclassification of excess tax benefits from additional paid-in capital to retained earnings with in the equity section of the consolidated balance sheet as of January 1, 2017 was required. The Company elected to continue its method of forfeitures in determining its stock-based compensation expense throughout the year. The adoption of this new guidance did not have a material impact on the Company’s consolidated financial statements. Accounting Pronouncements Issued But Not Yet Adopted Revenue Recognition: The Company ’ 412,217 3.2 The Company is also currently evaluating the potential impact on the Company’s internal control over financial reporting to identify any necessary changes. 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 January 1, 2018. Since the Company do not have any financial instruments, management does not expect there will be any material impact on the Leases : In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-2”), which provides guidance on lease amendments to the FASB Accounting Standard Codification. This ASU will be effective for us on January 1, 2019. We are currently in the process of evaluating the impact of the adoption of ASU 2016-2 on our consolidated financial statements. 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 evaluated that only one specific type of cash flow issue “Separately Identifiable Cash Flows and Application of the Predominance Principle” is applicable such as interest expense and financing from third parties. Therefore, the Company does not believe that this standard has a significant impact on the presentation of its consolidated statement of cash flows. Statement of Cash Flows: In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): “Restricted Cash” (“ASU 2016-18”). ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017 and early adoption is permitted. The adoption of this guidance will result in the inclusion of the restricted cash balances within the overall cash balance and removal of the changes in restricted cash activity, which are currently recognized in other financing activities, on the Statements of Consolidated Cash Flows. Furthermore, an additional reconciliation will be required to reconcile Cash and cash equivalents and restricted cash reported within the Consolidated Balance Sheets to sum to the total shown in the Statements of Consolidated Cash Flows. The Company has already disclosed the restricted cash separately on its Consolidated Statements of Financial Position. Beginning the first quarter of 2018, the Company has adopted and also include the restricted cash balances on the Statements of Consolidated Cash Flows and reconciliation of Cash, cash equivalent and restricted cash within its Consolidated Statements of Financial Positions that sum to the total of the same such amounts shown in its Consolidated Statements of Cash Flows. Business Combination : In January 2017, the FASB issued Accounting Standards Update No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business Stock-based Compensation : In May 2017, the FASB issued ASU No. 2017-09, “CompensationStock compensation (Topic 718): Scope of modification accounting” (“ASU 2017-09”). The purpose of the amendment is to clarify which changes to the terms or condition of a share-based payment award require an entity to apply modification accounting. For all entities that offer share based payment awards, ASU 2017-09 are effective for interim and annual reporting periods beginning after December 15, 2017. The Company will apply this standard beginning in the first quarter of 2018. This standard does not have a significant impact on its consolidated financial statements unless any change to the terms or conditions of an award are substantive. For the awards that were granted prior to December 31, 2017, the Company does not expect any substantive changes to the terms or conditions of those awards. Financial Instruments - Credit Losses : In June 2017, 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 2017-13 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 impact of this standard on the Company’s consolidated financial statements and related disclosures. Revenue Recognition and Leases: In September 2017, the FASB issued ASU 2017-13, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842). The main objective of this pronouncement is to clarify the effective date of the adoption of ASC Topic 606 and ASC Topic 842 and the definition of public business entity as stipulated in ASU 2014-09 and ASU 2016-02. ASU 2014-09 provides that a public business entity and certain other specified entities adopt ASC Topic 606 for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. All other entities are required to adopt ASC Topic 606 for annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. ASU 2016-12 requires that “a public business entity and certain other specified entities adopt ASC Topic 842 for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. All other entities are required to adopt ASC Topic 842 for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020”. ASU 2017-13 clarifies that the SEC would not object certain public business entities to elect to use the non-public business entities effective dates for applying ASC 606 and ASC 842. ASU 2017-13, however, limits such election to certain public business entities that “otherwise would not meet the definition of a public business entity except for a requirement to include or inclusion of its financial statements or financial information in another entity’s filings with the SEC”. The Company elected to adopt ASC Topic 606 and ASC Topic 842 beginning January 1, 2018 and January 1, 2019, respectively. Except for the ASU above, in the period from February 2018 through March 2018, the FASB has issued ASU No. 2018-02 through ASU 2018-05, 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, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets [Text Block] | 3. PREPAYMENT AND OTHER CURRENT ASSETS Prepayment and other current assets mainly consist of the short-term borrowing to the third party and the prepaid services for maintenance of online trading system, the advertising and promotional services, prepaid financial advisory and banking services, as well as other current assets. The prepayment was $ 2,300,207 968,446 December 31, December 31, Tax receivables $ 1,132,140 $ - Prepaid service fees 489,424 551,273 Short-term borrowings to third party 461,092 259,254 Staff advance 52,124 28,806 Prepaid repair and maintenance 46,733 - Other current assets 118,694 129,113 Prepayment and other current assets $ 2,300,207 $ 968,446 On October 16, 2017, Shanghai Takung entered into a loan agreement with for 3.00 0.46 June 30, 2018 4 |
ACCOUNT RECEIVABLES, NET
ACCOUNT RECEIVABLES, NET | 12 Months Ended |
Dec. 31, 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 December 31, December 31, Listing fee $ 2,259,671 $ 1,403,255 Authorized agent subscription revenue 559,101 995,453 Monthly commission fee 1,463,243 605,677 Others 80,473 54,183 Less: allowance for doubtful accounts (2,070,790) - Account receivables, net $ 2,291,698 $ 3,058,568 In the year ended December 31, 2017 and 2016, the Company recorded provision for doubtful accounts of $ 2,070,790 0 |
LOAN RECEIVABLES
LOAN RECEIVABLES | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Financing Receivables [Text Block] | 5. LOAN RECEIVABLES Date Borrower Lender Original Outstanding Amount in Annual Repayment 11/14/2016 Xiaohui Wang Shanghai Takung 10,275,000 9,827,200 $ 1,510,413 0 % 10/31/2018 9/12/2016 Xiaohui Wang Tianjin Takung 10,550,000 10,062,400 $ 1,546,563 0 % 11/30/2018 4/4/2017 Xiaohui Wang Tianjin Takung 1,539,780 1,539,780 $ 236,659 0 % 1/12/2018 4/4/2017 Xiaohui Wang Tianjin Takung 22,921,725 22,921,725 $ 3,523,005 0 % 12/31/2018 12/15/2017 Xiaohui Wang Tianjin Takung 3,310,000 3,310,000 $ 508,737 0 % 12/14/2018 12/19/2017 Xiaohui Wang Tianjin Takung 3,310,000 3,310,000 $ 508,738 0 % 12/18/2018 Total $ 7,834,115 All the transactions were aimed to meet the Company’s working capital needs in U.S. Dollars, which are freely convertible to Hong Kong Dollar. • The interest-free loans (the “RMB Loans”) entered into by citizen • Hong Kong Takung entered into loan agreements (the “U.S. 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 U.S. Dollar Loans are “secured” by the RMB Loans. It is the understanding between the parties that when the U.S. Dollar Loans are repaid, the RMB Loans will be repaid at the same time. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 6. PROPERTY AND EQUIPMENT, NET December 31, December 31, Furniture, fixtures and equipment $ 167,651 $ 100,386 Leasehold improvements 426,138 298,965 Computer trading and clearing system 3,287,383 2,802,430 Construction in progress 198,461 - Sub-total 4,079,633 3,201,781 Less: accumulated depreciation (1,888,312) (1,136,599) Property and equipment, net $ 2,191,321 $ 2,065,182 Depreciation expense was $ 742,272 523,698 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | 7. INTANGIBLE ASSETS Intangible assets consist of the Company’s trademarks with indefinite useful life. The intangible asset was $ 22,334 20,546 |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Other Assets, Noncurrent [Abstract] | |
Other Non Current Assets Disclosure [Text Block] | 8. OTHER NON-CURRENT ASSETS December 31, December 31, Deposit non-current $ 316,273 $ 301,263 Prepayment non-current 440,962 127,501 Total other non-current assets $ 757,235 $ 428,764 |
ACCRUED EXPENSES AND OTHER PAYA
ACCRUED EXPENSES AND OTHER PAYABLES | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 9. ACCRUED EXPENSES AND OTHER PAYABLES December 31, December 31, 2017 2016 Payroll payables $ 827,246 $ 141,022 Accruals for consulting fees 265,393 290,773 Accruals for professional fees 192,067 49,952 Trading and clearing system 52,564 61,735 Accruals for office rental 1,706 7,613 Other payables 122,882 57,788 Total accrued expenses and other payables $ 1,461,858 $ 608,883 |
SHORT-TERM BORROWINGS FROM THIR
SHORT-TERM BORROWINGS FROM THIRD PARTIES | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Short-term Debt [Text Block] | 10. SHORT-TERM BORROWINGS FROM THIRD PARTIES short Date Borrower Lender December 31, December 31, Annual Repayment 7/15/2016 Hong Kong Takung Merit Crown Limited $ 1,500,000 $ 1,509,015 8 % 12/31/2018 8/24/2016 Hong Kong Takung Merit Crown Limited $ 1,999,500 $ 2,011,518 8 % 12/31/2018 11/18/2016 Hong Kong Takung Merit Crown Limited $ 1,480,000 $ 1,480,525 8 % 10/31/2018 12/9/2016 Hong Kong Takung Merit Crown Limited $ 1,520,000 $ 1,520,314 8 % 11/30/2018 12/19/2017 Hong Kong Takung Merit Crown Limited $ 500,000 $ - 8 % 12/18/2018 12/22/2017 Hong Kong Takung Merit Crown Limited $ 500,000 $ - 8 % 12/21/2018 Less: Discount loan payable $ (290,739) $ (212,859) Total $ 7,208,761 $ 6,308,513 The U.S. Dollar Loans are to provide Hong Kong Takung with sufficient U.S. 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 U.S. Dollar Loans. It is the understanding between the parties that when the U.S. Dollar Loans are repaid, the RMB Loans will similarly be repaid. The weighted average interest rate of outstanding short-term borrowings was 8 6,315,799 1,678,803 524,638 135,792 |
RELATED PARTY BALANCES AND TRAN
RELATED PARTY BALANCES AND TRANSACTIONS | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 11. RELATED PARTY BALANCES AND TRANSACTIONS The following is a list of director and related parties to which the Company has transactions with: (a) Di Xiao, the director of the Company; (b) Jianping Mao (“Mao”), the wife of the Vice General Manager of Hong Kong Takung. Amount due to related party December 31, December 31, Jianpian Mao (b) $ 483,822 $ 1,031,805 Total 483,822 1,031,805 Related party transactions December 31, December 31, Jianpian Mao (b) $ 76,181 $ 66,584 Total 76,181 66,584 On August 25, 2016, Hong Kong Takung entered into a loan agreement with Mao for the loan of $ 2,303,912 18,000,000 8 1,279,951 10,000,000 575,978 4,500,000 483,822 447,983 3,500,000 35,839 280,000 December 31, 2017 76,181 66,584 March 13, 2018 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 12. INCOME TAXES Takung was incorporated in the State of Delaware and is subject to United States income tax. Hong Kong Takung was incorporated in Hong Kong S.A.R. People’s Republic of China and is subject to Hong Kong profits tax. Shanghai Takung and Tianjin Takung are PRC corporations and are subject to enterprise taxes in the PRC. United States of America Tax Cuts and Jobs Act Enacted in 2017 On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to, (1) reducing the U.S. federal corporate income tax rate from 35 percent to 21 percent; (2) requiring companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries; (3) generally eliminating U.S. federal corporate income taxes on dividends from foreign subsidiaries; (4) providing modification to subpart F provisions and new taxes on certain foreign earnings such as Global Intangible Low-Taxed Income (GILTI). Except for the one-time transition tax, most of these provisions go into effect starting January 1, 2018. The Deemed Repatriation Transition Tax ("Transition Tax") is a tax on unrepatriated earnings of our foreign subsidiaries. To determine the amount of the Transition Tax, the Company must determine, in addition to other factors, the amount of post-1986 undistributed earnings and profits (E&P) of its foreign subsidiaries, as well as the amount of foreign income taxes paid on such earnings and profits. The portion of earnings and profits comprised of cash and liquid assets is taxed at a rate of 15.5 8 Based on the estimated post 1986 untaxed accumulated earnings of $ 17.5 8.8 toll-charge available carryforwards incremental income tax expense in connection to the toll-charge. According to IRC Sec. 382, a more-than-fifty-percentage ownership change within a three-year-testing period will limit the Company's ability to utilize its pre-change net operating loss carryforwards. The Company determined that an ownership change occurred on August 28, 2014 and as a result, $ 237,397 As of December 31, 2017 and 2016, the Company in the United States had $ 250,590 2,212,890 As of December 31, 2017, the Company has re-measured its deferred taxes with new tax rate of 21 46,327 On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. As of December 31, 2017, the Company has completed most of its accounting for the effects of the Tax Act based on the currently available information. The Company will monitor future guidance set forth by the Department of Treasury with regard to the Transition Tax provisions under the Act, and true up this estimate as appropriate within the one year measurement period. If revisions are needed as new information becomes available, the final determination of the deemed incremental income tax expense, deemed re-measurement of the deferred assets and liabilities or other applicable provisions of the Tax Act will be completed as additional information becomes available within the 12 months re-measurement period. 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 25 540,913 504,782 513,190 will expire in 2021 27,723 will expire in 2022 342,856 1,769,449 Year Ended December 31, 2017 2016 Domestic $ (1,963,291) $ (2,162,110) Foreign 1,244,572 10,302,253 Income/ (Loss) before income taxes (718,719) 8,140,143 December 31, December 31, Current: Federal $ - $ - State - - Foreign 435,551 2,006,768 Total Current $ 435,551 $ 2,006,768 Deferred: Federal $ (37,398) $ - State - - Foreign (55,297) (237,319) Total Deferred $ (92,695) $ (237,319) Total provision for income taxes $ 342,856 1,769,449 December 31, December 31, (Loss) income before income tax expense $ (718,719) $ 8,140,143 Computed tax expense (benefit) with statutory tax rate (118,588) 1,343,124 Impact of different tax rates in other jurisdictions (255,701) (359,520) Tax effect of non-deductible expenses 281,867 129,936 Toll-charge from the Tax Act 3,006,508 - Foreign tax credits (1,615,515) - Changes in valuation allowance (909,388) 655,909 Tax Act U.S. federal rate change (46,327) - Total Provision for Income Taxes $ 342,856 $ 1,769,449 The toll-charge of $8.8 million from the Tax Act subject to taxable income, was fully offset by the current year loss, available federal NOL carryforwards and foreign tax credits. As a result, there was no provisional transition tax accrued as of December 31, 2017. As of As of 2017 2016 Deferred tax assets Tax loss carried forward $ 187,826 $ 873,071 Unvested restricted stock carried forward 37,398 209,629 Deferred advertising expenses 157,262 122,496 Others 518 588 Total deferred tax assets 383,004 1,205,784 Less: valuation allowance (52,624) (962,012) Total Deferred tax assets, net of valuation allowance 330,380 243,772 Deferred tax liabilities PPE, due to difference in depreciation (38,950) (62,618) Total Deferred tax liabilities $ (38,950) $ (62,618) Deferred tax assets, net of valuation allowance and deferred tax liabilities 291,430 181,154 Valuation Allowance Reversal During the fiscal year ended December 31, 2017, we recognized a valuation allowance release of $ 0.9 As of each reporting date, management considers new evidence, both positive and negative, that could affect its view of the future realization of its deferred tax assets. As of December 31, 2017, management determined that a valuation allowance of $ 52,666 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 13. COMMITMENTS AND CONTINGENCIES Capital Commitments The Company purchased property, plant and equipment which the payment was due within one year. As of December 31, 2017 and 2016, the Company has capital commitments of 162,021 90,315 Operation Commitments Year ending December 31, 2018 $ 989,753 Year ending December 31, 2019 326,556 Year ending December 31, 2020 41,472 Year ending December 31, 2021 15,370 Year ending December 31, 2022 and thereafter 54,434 Total $ 1,427,585 Rental expense of the Company was $ 1,004,494 564,585 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 14. EARNINGS PER SHARE Year ended Year ended Numerator: Net (loss) income $ (1,061,575) $ 6,370,694 Denominator: Weighted-average shares outstanding-Basic 11,077,845 10,641,180 Stock options and restricted shares - 668,010 Weighted-average shares outstanding-Diluted 11,077,845 11,309,190 Earnings per share -Basic (0.10) 0.60 -Diluted (0.10) 0.56 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. There was 487,000 potential 418,760 33,809 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 15. STOCKHOLDERS’ EQUITY 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 20, 2015, we entered into a Consulting Agreement with Regeneration for the provision of certain consulting and advisory services, including without limitation, assisting in the preparation of Company financial projections, business plans, executive summaries and website, and recruiting qualified directors and officers. In consideration for providing such services, the Company issued to Regeneration the Compensation Shares which are placed in an escrow account maintained with the Company’s attorneys until either (i) the Company has successfully listed its securities on the NASDAQ or other U.S. securities exchange on or before March 31, 2017, whereupon the Compensation Shares shall be forthwith delivered to Regeneration or (ii) if the Company is unsuccessful in listing its securities on the NASDAQ or other U.S. securities exchange on or before March 31, 2017, the Compensation Shares shall be returned to the Company for cancellation. Regeneration shall be entitled to “piggy-back” registration rights with respect to the Compensation Shares. The Compensation Shares were issued in reliance on an exemption from registration under Section 4(a)(2) of the Securities Act. Pursuant to ASC 505-50-30, this transaction was measured based on the fair value of the equity instruments issued as the Company determined that the fair value of the equity instruments issued in a share-based payment transaction with nonemployees was more reliably measurable than the fair value of the consideration received. The Company measured the fair value of the equity instruments in these transactions using the stock price and other measurement assumptions on the date at which Regeneration’s commitment for performance is reached. The Company recognized (as appropriate relative to the periods and manner that Company would recognize cash payments under the same arrangement) the cost of the appropriate number of the 487,000 144,274 496,943 On October 27, 2016, Takung Art Co., Ltd entered into a Financial Advisory Agreement with Maxim Group, LLC (“Maxim”) to provide general financial advisory and banking services, including, assisting and advising the Company with respect to its strategic planning process, business plans and capitalization, helping the Company broaden its shareholder base, increasing shareholder awareness through non-deal roadshows and other value-added services such as making strategic introductions, advising the Company on potential financing alternatives and merger and acquisition criteria and activity. As consideration of the provision of such services, the Company agreed to issue to Maxim or its designees 50,000 201,808 On October 2, 2017, we entered into a prepaid retainer contract with Regeneration to render consulting and advisory services in connection with investor relations. The Company recognized the cost of the 20,000 $ 46,000 October 11,500 Stock-based Compensation Plans During the year ended December 31, 2017, the Company had no option activities. 268,600 50,000 112,925 12,143 7,463 50,000 On March 1, 2017, November 23, 2017 and December 1, 2017, 15,000 2,143 16,667 18,942 The exercise price of stock options ranged from $ 2.91 3.65 130,419 9,765 Stock Options: Options Weighted Weighted Aggregate Outstanding, beginning of year 428,525 3.15 3.45 1,906,718 Granted - - - - Exercised - - - - Forfeited 9,765 3.20 3.15 - Outstanding, end of year 418,760 3.15 2.42 - Exercisable, end of year 130,419 3.13 1.60 - Expected to vest 288,341 3.16 2.80 - 18,942 . The Company uses fair market value of its common stock publicly traded on the date of the grant to determine the fair value of restricted shares Number of Weighted Weighted Shares Fair Value Term Unvested at December 31, 2016 1,244 $ 3.35 0.17 years Granted 33,810 4.92 1.00 years Forfeited - - Vested (18,942) - Unvested at December 31, 2017 16,112 3.27 0.88 years As of December 31, 2017, the unrecognized stock-based compensation expenses under the 2015 Stock Incentive Plan were $ 556,533 751,117 812,759 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 16. SUBSEQUENT EVENT The Company evaluated and concluded that no subsequent events have occurred that would require recognition or disclosure in the consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN23
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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, Shanghai Takung and Tianjin Takung. All intercompany transactions, balances and unrealized profit and losses have been eliminated on consolidation. |
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, 2017 and 2016. |
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, 2017 and 2016, 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 functional currency of Tianjin Takung is the Renminbi (“RMB”). The reporting currency of the Company is the United States Dollar (“USD”). Transactions in currencies other than the entity’s functional currency are recorded at the rates of exchange prevailing on the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing at the end of the reporting periods. Exchange differences arising on the settlement of monetary items and on re-translation of monetary items at period-end are included in income statement of the period. For the purpose of presenting these financial statements, the Company’s assets and liabilities with functional currency of HKD are expressed in USD at the exchange rate on the balance sheets dates, which is 7.8128 7.7534 7.7926 7.7620 6.5063 6.9430 6.7569 6.6400 The resulting translation adjustments are reported under accumulated other comprehensive loss in the stockholder’s equity section of the balance sheets. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, cash in bank with no restrictions, as well as highly liquid investments which are unrestricted as to withdrawal or use, and which have remaining maturities of three months or less when initially purchased. A significant portion of our cash and cash equivalents is denominated in RMB, and deposits in the financial institutions of China. Chinese governmental policies were introduced in 1996 to allow the convertibility of RMB denominated cash into foreign currencies for current account items, but conversion of RMB denominated cash into foreign exchange for most of the capital items, such as foreign direct investment, loans or securities, requires the approval of the State Administration of Foreign Exchange, or SAFE. These approvals, however, do not guarantee the availability of foreign currencies to fund our business activities outside China, or to repay non-RMB denominated obligations. The cash and cash equivalents as of December 31, 2017 were $11,866,965. Among which, $98,029 was denominated in Hong Kong Dollars in Hong Kong financial institutions, $693,181 and $762,005 were denominated in U.S. dollars and deposited in the financial institutions in Hong Kong and China respectively, and $10,313,750 was denominated in RMB and deposited in the financial institutions of China. |
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 except the Company statements of intention with regard to particular deposits. The whole process was monitored and approved by a third party accounting firm. |
Investment, Policy [Policy Text Block] | Short-term investments Short term investments consist of held-to-maturity investments and available-for-sale investments. The Company’s held-to-maturity investments consist of financial products purchased from banks, which are not allowed for the early withdrawal. The Company’s short term held-to-maturity investments are classified as short-term investments on the consolidated balance sheets based on their contractual maturity dates which are less than one year and are stated at their amortized costs. Investments classified as available-for-sale investments are carried at their fair values and the unrealized gains or losses from the changes in fair values are reported net of tax in accumulated other comprehensive income until realized. The Company reviews its investments for other-than-temporary impairment (“OTTI”) based on the specific identification method. The Company considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. If the cost of an investment exceeds the investment’s fair value, the Company considers, among other factors, general market conditions, expected future performance of the investees, the duration and the extent to which the fair value of the investment is less than the cost, and the Company’s intent and ability to hold the investment. OTTI is recognized as a loss in the income statement. As of December 31, 2017, all short-term investments under held-to-maturity and available-for-sale investments were redeemed with a nil balance. |
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. |
Receivables, Policy [Policy Text Block] | Loan Receivables Loan to third parties is presented under current asset of the balance sheets based on the nature and loan period of time. |
Prepayment and Other Current Assets Policy [Policy Text Block] | Prepayment and Other Current Assets Prepayment and other current assets mainly consist of the prepayment for, maintenance of online trading system, the advertising and promotional services, prepaid financial advisory and banking services, as well as other current assets. |
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 or expense. 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. We develop systems and solutions for solely internal use. Certain costs incurred in connection with developing or obtaining internal use software are capitalized. Unamortized capitalized costs are included in computer trading and clearing system, within property and equipment, net in the Consolidated Balance Sheets. Capitalized software costs are amortized on a straight-line basis over the estimated useful lives of the software of 5 Classification Estimated useful life Furniture, fixtures and equipment 5 Leasehold improvements Shorter of the remaining lease terms and the estimated 3 years Computer trading and clearing system 5 |
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, 2017 and 2016, respectively. |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Intangible Assets Intangible assets represent the licensing cost for our trademark registration. For intangible assets with indefinite lives, the Company evaluates intangible assets for impairment at least annually and more often whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. 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, 2017 and 2016. |
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. |
Advance From Customer Policy [Policy Text Block] | Advance from customers Advance from customers represent trading commissions one month in advance charge to the VIP traders. Starting from April 1, 2016, the Company charges a monthly commission to VIP traders, instead of charging per transaction. |
Debt, Policy [Policy Text Block] | Short-term borrowings from third parties The Company obtained two short-term borrowings from third parties, both with 8 |
Revenue Recognition Accounting Policy, Gross and Net Revenue Disclosure [Policy Text Block] | Revenue Recognition The Company generates revenue from its services in connection with the offering and trading of artwork on our system, primarily consisting of listing fees, trading commissions, and management fees. We recognize revenue once all of the following criteria have been met: • persuasive evidence of an arrangement exists; • delivery of our obligations to our customer has occurred; • the price is fixed or determinable; and • collectability of the related receivable is reasonably assured Listing fee - 22.5 48.5 Commission - 0.3 0.2 0.4 0.13 1 For selected Traders, starting from April 1, 2016, we charged a predetermined monthly fee (unlimited trade for specific artworks) for specific artworks. These Traders are selected by authorized agents and reviewed by us. After review, we negotiate individually with each one of them to determine a fixed monthly fee. Different Traders may have different rates but once negotiated and agreed to, the monthly fee is fixed. Commission rebate programs are offered to Traders and service agents. We would rebate 5 15 5 40 68 5 5 The rebates and discounts are recognized as a reduction of revenue in the same period the related revenue is recognized. Our trading volume and transaction value amounts increased significantly from 2016 when we commenced operations in Shanghai and consequently added a significant number of Traders from mainland China. This trend continued into 2017. Management fee - 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. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted by the U.S. government which included a wide range of tax reform affecting businesses including the corporate tax rates, international tax provisions, tax credits and deduction with majority of the tax provision effective after December 31, 2017. Certain activities conducted in foreign jurisdictions may result in the imposition of U.S. corporate income taxes on Takung when its subsidiaries, controlled foreign corporations (“CFCs”), generate income that is subject to Subpart F or GILTI under the U.S. Internal Revenue Code beginning after December 31, 2017. The Company did not accrue any liability, interest or 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, 2017 and 2016. 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. |
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, account receivables. The carrying values of the financial instruments approximate their fair values due to their short-term maturities. The Company places its cash and cash equivalents and restricted cash with financial institutions with high-credit ratings and quality. Account receivables 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 |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Standards 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. The amendments in ASU 2014-15 are effective for fiscal years and interim periods within those years, beginning after December 15, 2016. We adopted this amendment in the year beginning January 01, 2017. The adoption of ASU 2014-15 did not have a material impact on the Company’s financial statements. Balance Sheet Classification of Deferred Taxe s : In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes which requires entities to present deferred tax assets and deferred tax liabilities as noncurrent on the consolidated balance sheet. The Company adopted this guidance effective January 1, 2016 and it was applied retrospectively for all prior periods. The Company also adopted this guidance to present the deferred tax assets and deferred tax liabilities with a netted off amount with retrospectively adjusted method. 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. Current GAAP provides that excess tax benefits are recognized in additional paid-in capital whereas tax deficiencies are recognized either as an offset to accumulated excess tax benefit, if any, or in the income statement. Excess tax benefits are not recognized until the deduction reduces tax payable. Excess tax benefits must be separate from other income tax cash flows and classified as a financing activity. Under this amendment, all excess tax benefits and tax deficiencies should be recognized as income tax expense or benefit in the income statement. The tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they incur. Excess tax benefits are recognized regardless of whether the benefit reduces taxes payable in the current period and classified along with other income tax cash flows as an operating activity. The Company adopted this amendments in the first quarter of fiscal year 2017. The Company hasn’t recognized excess tax benefits in additional paid-in capital or tax deficiencies as an offset to accumulated excess tax benefit in the prior periods. No reclassification of excess tax benefits from additional paid-in capital to retained earnings with in the equity section of the consolidated balance sheet as of January 1, 2017 was required. The Company elected to continue its method of forfeitures in determining its stock-based compensation expense throughout the year. The adoption of this new guidance did not have a material impact on the Company’s consolidated financial statements. Accounting Pronouncements Issued But Not Yet Adopted Revenue Recognition: The Company ’ 412,217 3.2 The Company is also currently evaluating the potential impact on the Company’s internal control over financial reporting to identify any necessary changes. 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 January 1, 2018. Since the Company do not have any financial instruments, management does not expect there will be any material impact on the Leases : In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-2”), which provides guidance on lease amendments to the FASB Accounting Standard Codification. This ASU will be effective for us on January 1, 2019. We are currently in the process of evaluating the impact of the adoption of ASU 2016-2 on our consolidated financial statements. 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 evaluated that only one specific type of cash flow issue “Separately Identifiable Cash Flows and Application of the Predominance Principle” is applicable such as interest expense and financing from third parties. Therefore, the Company does not believe that this standard has a significant impact on the presentation of its consolidated statement of cash flows. Statement of Cash Flows: In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): “Restricted Cash” (“ASU 2016-18”). ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017 and early adoption is permitted. The adoption of this guidance will result in the inclusion of the restricted cash balances within the overall cash balance and removal of the changes in restricted cash activity, which are currently recognized in other financing activities, on the Statements of Consolidated Cash Flows. Furthermore, an additional reconciliation will be required to reconcile Cash and cash equivalents and restricted cash reported within the Consolidated Balance Sheets to sum to the total shown in the Statements of Consolidated Cash Flows. The Company has already disclosed the restricted cash separately on its Consolidated Statements of Financial Position. Beginning the first quarter of 2018, the Company has adopted and also include the restricted cash balances on the Statements of Consolidated Cash Flows and reconciliation of Cash, cash equivalent and restricted cash within its Consolidated Statements of Financial Positions that sum to the total of the same such amounts shown in its Consolidated Statements of Cash Flows. Business Combination : In January 2017, the FASB issued Accounting Standards Update No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business Stock-based Compensation : In May 2017, the FASB issued ASU No. 2017-09, “CompensationStock compensation (Topic 718): Scope of modification accounting” (“ASU 2017-09”). The purpose of the amendment is to clarify which changes to the terms or condition of a share-based payment award require an entity to apply modification accounting. For all entities that offer share based payment awards, ASU 2017-09 are effective for interim and annual reporting periods beginning after December 15, 2017. The Company will apply this standard beginning in the first quarter of 2018. This standard does not have a significant impact on its consolidated financial statements unless any change to the terms or conditions of an award are substantive. For the awards that were granted prior to December 31, 2017, the Company does not expect any substantive changes to the terms or conditions of those awards. Financial Instruments - Credit Losses : In June 2017, 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 2017-13 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 impact of this standard on the Company’s consolidated financial statements and related disclosures. Revenue Recognition and Leases: In September 2017, the FASB issued ASU 2017-13, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842). The main objective of this pronouncement is to clarify the effective date of the adoption of ASC Topic 606 and ASC Topic 842 and the definition of public business entity as stipulated in ASU 2014-09 and ASU 2016-02. ASU 2014-09 provides that a public business entity and certain other specified entities adopt ASC Topic 606 for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. All other entities are required to adopt ASC Topic 606 for annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. ASU 2016-12 requires that “a public business entity and certain other specified entities adopt ASC Topic 842 for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. All other entities are required to adopt ASC Topic 842 for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020”. ASU 2017-13 clarifies that the SEC would not object certain public business entities to elect to use the non-public business entities effective dates for applying ASC 606 and ASC 842. ASU 2017-13, however, limits such election to certain public business entities that “otherwise would not meet the definition of a public business entity except for a requirement to include or inclusion of its financial statements or financial information in another entity’s filings with the SEC”. The Company elected to adopt ASC Topic 606 and ASC Topic 842 beginning January 1, 2018 and January 1, 2019, respectively. Except for the ASU above, in the period from February 2018 through March 2018, the FASB has issued ASU No. 2018-02 through ASU 2018-05, which are not expected to have a material impact on the consolidated financial statements upon adoption. |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of an Asset [Table Text Block] | Estimated useful lives are as follows, taking into account the assets' estimated residual value: Classification Estimated useful life Furniture, fixtures and equipment 5 Leasehold improvements Shorter of the remaining lease terms and the estimated 3 years Computer trading and clearing system 5 |
PREPAYMENT AND OTHER CURRENT 25
PREPAYMENT AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | December 31, December 31, Tax receivables $ 1,132,140 $ - Prepaid service fees 489,424 551,273 Short-term borrowings to third party 461,092 259,254 Staff advance 52,124 28,806 Prepaid repair and maintenance 46,733 - Other current assets 118,694 129,113 Prepayment and other current assets $ 2,300,207 $ 968,446 |
ACCOUNT RECEIVABLES, NET (Table
ACCOUNT RECEIVABLES, NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounts Receivable [Member] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Account receivables consisted of the following: December 31, December 31, Listing fee $ 2,259,671 $ 1,403,255 Authorized agent subscription revenue 559,101 995,453 Monthly commission fee 1,463,243 605,677 Others 80,473 54,183 Less: allowance for doubtful accounts (2,070,790) - Account receivables, net $ 2,291,698 $ 3,058,568 |
LOAN RECEIVABLES (Tables)
LOAN RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 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: Date Borrower Lender Original Outstanding Amount in Annual Repayment 11/14/2016 Xiaohui Wang Shanghai Takung 10,275,000 9,827,200 $ 1,510,413 0 % 10/31/2018 9/12/2016 Xiaohui Wang Tianjin Takung 10,550,000 10,062,400 $ 1,546,563 0 % 11/30/2018 4/4/2017 Xiaohui Wang Tianjin Takung 1,539,780 1,539,780 $ 236,659 0 % 1/12/2018 4/4/2017 Xiaohui Wang Tianjin Takung 22,921,725 22,921,725 $ 3,523,005 0 % 12/31/2018 12/15/2017 Xiaohui Wang Tianjin Takung 3,310,000 3,310,000 $ 508,737 0 % 12/14/2018 12/19/2017 Xiaohui Wang Tianjin Takung 3,310,000 3,310,000 $ 508,738 0 % 12/18/2018 Total $ 7,834,115 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment consisted of the following: December 31, December 31, Furniture, fixtures and equipment $ 167,651 $ 100,386 Leasehold improvements 426,138 298,965 Computer trading and clearing system 3,287,383 2,802,430 Construction in progress 198,461 - Sub-total 4,079,633 3,201,781 Less: accumulated depreciation (1,888,312) (1,136,599) Property and equipment, net $ 2,191,321 $ 2,065,182 |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Assets, Noncurrent [Abstract] | |
Schedule of Other Assets, Noncurrent [Table Text Block] | Other non-current assets as of December 31, 2017 and 2016 consisted of: December 31, December 31, Deposit non-current $ 316,273 $ 301,263 Prepayment non-current 440,962 127,501 Total other non-current assets $ 757,235 $ 428,764 |
ACCRUED EXPENSES AND OTHER PA30
ACCRUED EXPENSES AND OTHER PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | Accrued expenses and other payables as of December 31, 2017 and 2016 consisted of: December 31, December 31, 2017 2016 Payroll payables $ 827,246 $ 141,022 Accruals for consulting fees 265,393 290,773 Accruals for professional fees 192,067 49,952 Trading and clearing system 52,564 61,735 Accruals for office rental 1,706 7,613 Other payables 122,882 57,788 Total accrued expenses and other payables $ 1,461,858 $ 608,883 |
SHORT-TERM BORROWINGS FROM TH31
SHORT-TERM BORROWINGS FROM THIRD PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt [Table Text Block] | The following table sets forth a summary of the loan agreements in short Date Borrower Lender December 31, December 31, Annual Repayment 7/15/2016 Hong Kong Takung Merit Crown Limited $ 1,500,000 $ 1,509,015 8 % 12/31/2018 8/24/2016 Hong Kong Takung Merit Crown Limited $ 1,999,500 $ 2,011,518 8 % 12/31/2018 11/18/2016 Hong Kong Takung Merit Crown Limited $ 1,480,000 $ 1,480,525 8 % 10/31/2018 12/9/2016 Hong Kong Takung Merit Crown Limited $ 1,520,000 $ 1,520,314 8 % 11/30/2018 12/19/2017 Hong Kong Takung Merit Crown Limited $ 500,000 $ - 8 % 12/18/2018 12/22/2017 Hong Kong Takung Merit Crown Limited $ 500,000 $ - 8 % 12/21/2018 Less: Discount loan payable $ (290,739) $ (212,859) Total $ 7,208,761 $ 6,308,513 |
RELATED PARTY BALANCES AND TR32
RELATED PARTY BALANCES AND TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule Of Debt Interest Expenses [Table Text Block] | Interest expenses to related parties consisted of the following for the years indicated: December 31, December 31, Jianpian Mao (b) $ 76,181 $ 66,584 Total 76,181 66,584 |
Jianping Mao [Member] | |
Schedule Of Debt Interest Expenses [Table Text Block] | Amount due to related party consisted of the following as of the years indicated: December 31, December 31, Jianpian Mao (b) $ 483,822 $ 1,031,805 Total 483,822 1,031,805 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | The income tax expense was $ 342,856 1,769,449 Year Ended December 31, 2017 2016 Domestic $ (1,963,291) $ (2,162,110) Foreign 1,244,572 10,302,253 Income/ (Loss) before income taxes (718,719) 8,140,143 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The income tax provision consists of the following components: December 31, December 31, Current: Federal $ - $ - State - - Foreign 435,551 2,006,768 Total Current $ 435,551 $ 2,006,768 Deferred: Federal $ (37,398) $ - State - - Foreign (55,297) (237,319) Total Deferred $ (92,695) $ (237,319) Total provision for income taxes $ 342,856 1,769,449 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | December 31, December 31, (Loss) income before income tax expense $ (718,719) $ 8,140,143 Computed tax expense (benefit) with statutory tax rate (118,588) 1,343,124 Impact of different tax rates in other jurisdictions (255,701) (359,520) Tax effect of non-deductible expenses 281,867 129,936 Toll-charge from the Tax Act 3,006,508 - Foreign tax credits (1,615,515) - Changes in valuation allowance (909,388) 655,909 Tax Act U.S. federal rate change (46,327) - Total Provision for Income Taxes $ 342,856 $ 1,769,449 |
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 2017 2016 Deferred tax assets Tax loss carried forward $ 187,826 $ 873,071 Unvested restricted stock carried forward 37,398 209,629 Deferred advertising expenses 157,262 122,496 Others 518 588 Total deferred tax assets 383,004 1,205,784 Less: valuation allowance (52,624) (962,012) Total Deferred tax assets, net of valuation allowance 330,380 243,772 Deferred tax liabilities PPE, due to difference in depreciation (38,950) (62,618) Total Deferred tax liabilities $ (38,950) $ (62,618) Deferred tax assets, net of valuation allowance and deferred tax liabilities 291,430 181,154 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2017 are payable as follows: Year ending December 31, 2018 $ 989,753 Year ending December 31, 2019 326,556 Year ending December 31, 2020 41,472 Year ending December 31, 2021 15,370 Year ending December 31, 2022 and thereafter 54,434 Total $ 1,427,585 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 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. Year ended Year ended Numerator: Net (loss) income $ (1,061,575) $ 6,370,694 Denominator: Weighted-average shares outstanding-Basic 11,077,845 10,641,180 Stock options and restricted shares - 668,010 Weighted-average shares outstanding-Diluted 11,077,845 11,309,190 Earnings per share -Basic (0.10) 0.60 -Diluted (0.10) 0.56 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | The number of stock options as of December 31, 2017 is as follows: Options Weighted Weighted Aggregate Outstanding, beginning of year 428,525 3.15 3.45 1,906,718 Granted - - - - Exercised - - - - Forfeited 9,765 3.20 3.15 - Outstanding, end of year 418,760 3.15 2.42 - Exercisable, end of year 130,419 3.13 1.60 - Expected to vest 288,341 3.16 2.80 - |
Nonvested Restricted Stock Shares Activity [Table Text Block] | The following table sets forth changes in compensation-related restricted stock awards during year ended December 31, 2017, and 18,942 . The Company uses fair market value of its common stock publicly traded on the date of the grant to determine the fair value of restricted shares Number of Weighted Weighted Shares Fair Value Term Unvested at December 31, 2016 1,244 $ 3.35 0.17 years Granted 33,810 4.92 1.00 years Forfeited - - Vested (18,942) - Unvested at December 31, 2017 16,112 3.27 0.88 years |
ORGANIZATION AND DESCRIPTION 37
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Textual) $ in Millions | 12 Months Ended |
Dec. 31, 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 |
SUMMARY OF SIGNIFICANT ACCOUN38
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Furniture, fixtures and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | Shorter of the remaining lease terms and the estimated 3 years |
Computer trading and clearing system [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN39
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2017HKD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Summary of Significant Accounting Policies [Line Items] | ||||
Cash and Cash Equivalents, at Carrying Value, Total | $ 11,866,965 | $ 13,395,337 | $ 10,769,456 | |
Foreign Currency Exchange Rate Weighted Average Translation Rate | 7.7926 | 7.7926 | 7.7620 | |
Commissions Fee Percentage on Total Transaction | 0.30% | 0.30% | ||
Reduced Commission Fee Percentage on Total Transaction | 0.20% | 0.20% | ||
Minimum Charge on Total Transaction | $ 0.13 | $ 1 | ||
Incentive Percentage to Related Referrer on Commission Earned | 5.00% | 5.00% | ||
Foreign Currency Exchange Rate, Translation | 7.8128 | 7.7534 | ||
Management Fee Income Description | $0.0013 (HK$0.01) per 100 artwork ownership shares per day | $0.0013 (HK$0.01) per 100 artwork ownership shares per day | ||
Reduced Commission Fee Percentage On Total Transaction Resulting | 0.40% | 0.40% | ||
Foreign Currency Exchange Rate (CNY) | 6.5063 | 6.9430 | ||
Foreign Currency Exchange Rate Weighted Average Translation Rate (CNY) | 6.7569 | 6.7569 | 6.6400 | |
Rebate Of Revenue | $ 412,217 | |||
Rebate Of Revenue Percentage | 3.20% | 3.20% | ||
Software Development [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Estimated Useful Lives | 5 | 5 | ||
New Traders [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Incentive Percentage to Related Referrer on Commission Earned | 5.00% | 5.00% | ||
Service Agents [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Incentive Percentage to Related Referrer on Commission Earned | 5.00% | 5.00% | ||
Short-term Debt [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | |||
Hong Kong financial Instrument [Member] | Hong Kong Dollars Denominated [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Cash and Cash Equivalents, at Carrying Value, Total | $ 98,029 | |||
Hong Kong financial Instrument [Member] | Usd Denominated [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Cash and Cash Equivalents, at Carrying Value, Total | 693,181 | |||
China Financial Instrument [Member] | Usd Denominated [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Cash and Cash Equivalents, at Carrying Value, Total | 762,005 | |||
China Financial Instrument [Member] | China Dollars Denominated [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Cash and Cash Equivalents, at Carrying Value, Total | $ 10,313,750 | |||
Sales Revenue, Net [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 10.00% | 10.00% | ||
Minimum [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Offering Fee Percent | 22.50% | |||
Incentive Percentage to Related Referrer on Commission Earned | 40.00% | 40.00% | 15.00% | |
Maximum [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Offering Fee Percent | 48.50% | |||
Incentive Percentage to Related Referrer on Commission Earned | 68.00% | 68.00% | 5.00% |
PREPAYMENT AND OTHER CURRENT 40
PREPAYMENT AND OTHER CURRENT ASSETS (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Tax receivables | $ 1,132,140 | $ 0 |
Prepaid service fees | 489,424 | 551,273 |
Short-term borrowings to third party | 461,092 | 259,254 |
Staff advance | 52,124 | 28,806 |
Prepaid repair and maintenance | 46,733 | 0 |
Other current assets | 118,694 | 129,113 |
Prepayment and other current assets | $ 2,300,207 | $ 968,446 |
PREPAYMENT AND OTHER CURRENT 41
PREPAYMENT AND OTHER CURRENT ASSETS (Details Textual) ¥ in Thousands | 1 Months Ended | |||
Oct. 16, 2017USD ($) | Dec. 31, 2017USD ($) | Oct. 16, 2017CNY (¥) | Dec. 31, 2016USD ($) | |
Prepaid Expense, Current | $ 2,300,207 | $ 968,446 | ||
Loans Payable [Member] | Mr Shengri Wang [Member] | ||||
Debt Instrument, Face Amount | $ 460,000 | ¥ 3,000 | ||
Debt Instrument, Maturity Date | Jun. 30, 2018 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | 4.00% |
ACCOUNT RECEIVABLES, NET (Detai
ACCOUNT RECEIVABLES, NET (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Less: allowance for doubtful accounts | $ (2,070,790) | $ 0 |
Account receivables, net | 2,291,698 | 3,058,568 |
Listing Fee [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross, Current | 2,259,671 | 1,403,255 |
Authorized Agent Subscription Revenue [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross, Current | 559,101 | 995,453 |
Monthly Commission Fee [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross, Current | 1,463,243 | 605,677 |
Others [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross, Current | $ 80,473 | $ 54,183 |
ACCOUNT RECEIVABLES, NET (Det43
ACCOUNT RECEIVABLES, NET (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Provision for Doubtful Accounts | $ 2,076,159 | $ 0 |
LOAN RECEIVABLES (Details)
LOAN RECEIVABLES (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016USD ($) | |
Loans and Leases Receivable, Net Amount | $ | $ 7,834,115 | ||
Loans and Leases Receivable, Balance Amount | $ | $ 7,834,115 | $ 6,374,046 | |
Loan Receivable One [Member] | |||
Loans And Leases Receivable, Initiation Date | Nov. 14, 2016 | ||
Loans And Leases Receivable, Name Of Borrower | Xiaohui Wang | ||
Loans And Leases Receivable, Name Of Lender | Shanghai Takung | ||
Loans and Leases Receivable, Net Amount | $ 1,510,413 | ¥ 10,275,000 | |
Loans and Leases Receivable, Balance Amount | 9,827,200 | ||
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 0.00% | ||
Loans And Leases Receivable, Maturity Date | Oct. 31, 2018 | ||
Loan Receivable Two [Member] | |||
Loans And Leases Receivable, Initiation Date | Sep. 12, 2016 | ||
Loans And Leases Receivable, Name Of Borrower | Xiaohui Wang | ||
Loans And Leases Receivable, Name Of Lender | Tianjin Takung | ||
Loans and Leases Receivable, Net Amount | $ 1,546,563 | 10,550,000 | |
Loans and Leases Receivable, Balance Amount | 10,062,400 | ||
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 0.00% | ||
Loans And Leases Receivable, Maturity Date | Nov. 30, 2018 | ||
Loan Receivable Three [Member] | |||
Loans And Leases Receivable, Initiation Date | Apr. 4, 2017 | ||
Loans And Leases Receivable, Name Of Borrower | Xiaohui Wang | ||
Loans And Leases Receivable, Name Of Lender | Tianjin Takung | ||
Loans and Leases Receivable, Net Amount | $ 236,659 | 1,539,780 | |
Loans and Leases Receivable, Balance Amount | 1,539,780 | ||
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 0.00% | ||
Loans And Leases Receivable, Maturity Date | Jan. 12, 2018 | ||
Loan Receivable Four [Member] | |||
Loans And Leases Receivable, Initiation Date | Apr. 4, 2017 | ||
Loans And Leases Receivable, Name Of Borrower | Xiaohui Wang | ||
Loans And Leases Receivable, Name Of Lender | Tianjin Takung | ||
Loans and Leases Receivable, Net Amount | $ 3,523,005 | 22,921,725 | |
Loans and Leases Receivable, Balance Amount | 22,921,725 | ||
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 0.00% | ||
Loans And Leases Receivable, Maturity Date | Dec. 31, 2018 | ||
Loan Receivable Five [Member] | |||
Loans And Leases Receivable, Initiation Date | Dec. 15, 2017 | ||
Loans And Leases Receivable, Name Of Borrower | Xiaohui Wang | ||
Loans And Leases Receivable, Name Of Lender | Tianjin Takung | ||
Loans and Leases Receivable, Net Amount | $ 508,737 | 3,310,000 | |
Loans and Leases Receivable, Balance Amount | 3,310,000 | ||
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 0.00% | ||
Loans And Leases Receivable, Maturity Date | Dec. 14, 2018 | ||
Loan Receivable Six [Member] | |||
Loans And Leases Receivable, Initiation Date | Dec. 19, 2017 | ||
Loans And Leases Receivable, Name Of Borrower | Xiaohui Wang | ||
Loans And Leases Receivable, Name Of Lender | Tianjin Takung | ||
Loans and Leases Receivable, Net Amount | $ 508,738 | 3,310,000 | |
Loans and Leases Receivable, Balance Amount | ¥ 3,310,000 | ||
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 0.00% | ||
Loans And Leases Receivable, Maturity Date | Dec. 18, 2018 |
LOAN RECEIVABLES (Details Textu
LOAN RECEIVABLES (Details Textual) | Dec. 31, 2017 |
Merit Crown [Member] | |
Debt Instrument, Interest Rate, Stated Percentage | 8.00% |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Cost | ||
Furniture, fixtures and equipment | $ 167,651 | $ 100,386 |
Leasehold improvements | 426,138 | 298,965 |
Computer trading and clearing system | 3,287,383 | 2,802,430 |
Construction in progress | 198,461 | 0 |
Sub-total | 4,079,633 | 3,201,781 |
Less: accumulated depreciation | (1,888,312) | (1,136,599) |
Property and equipment, net | $ 2,191,321 | $ 2,065,182 |
PROPERTY AND EQUIPMENT, NET (47
PROPERTY AND EQUIPMENT, NET (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation | $ 742,272 | $ 523,698 |
INTANGIBLE ASSETS (Details Text
INTANGIBLE ASSETS (Details Textual) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible Assets, Net (Excluding Goodwill) | $ 22,334 | $ 20,546 |
Trademarks [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible Assets, Net (Excluding Goodwill) | $ 22,334 | $ 20,546 |
OTHER NON-CURRENT ASSETS (Detai
OTHER NON-CURRENT ASSETS (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Other Non Current Assets [Line Items] | ||
Deposit - non-current | $ 316,273 | $ 301,263 |
Prepayment - non-current | 440,962 | 127,501 |
Total other non-current assets | $ 757,235 | $ 428,764 |
ACCRUED EXPENSES AND OTHER PA50
ACCRUED EXPENSES AND OTHER PAYABLES (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule Of Accounts Payable And Accrued Liabilities [Line Items] | ||
Payroll payables | $ 827,246 | $ 141,022 |
Accruals for consulting fees | 265,393 | 290,773 |
Accruals for professional fees | 192,067 | 49,952 |
Trading and clearing system | 52,564 | 61,735 |
Accruals for office rental | 1,706 | 7,613 |
Other payables | 122,882 | 57,788 |
Total accrued expenses and other payables | $ 1,461,858 | $ 608,883 |
SHORT-TERM BORROWINGS FROM TH51
SHORT-TERM BORROWINGS FROM THIRD PARTIES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Short-term Debt | $ 7,208,761 | $ 6,308,513 |
Debt Instrument, Unamortized Discount, Current | $ (290,739) | (212,859) |
Short Term Debt One [Member] | ||
Debt Instrument, Issuance Date | Jul. 15, 2016 | |
Debt Instrument Borrower | Hong Kong Takung | |
Debt Instrument, Issuer | Merit Crown Limited | |
Short-term Debt | $ 1,500,000 | 1,509,015 |
Short-term Debt, Weighted Average Interest Rate | 8.00% | |
Debt Instrument, Maturity Date | Dec. 31, 2018 | |
Short Term Debt Two [Member] | ||
Debt Instrument, Issuance Date | Aug. 24, 2016 | |
Debt Instrument Borrower | Hong Kong Takung | |
Debt Instrument, Issuer | Merit Crown Limited | |
Short-term Debt | $ 1,999,500 | 2,011,518 |
Short-term Debt, Weighted Average Interest Rate | 8.00% | |
Debt Instrument, Maturity Date | Dec. 31, 2018 | |
Short Term Debt Three [Member] | ||
Debt Instrument, Issuance Date | Nov. 18, 2016 | |
Debt Instrument Borrower | Hong Kong Takung | |
Debt Instrument, Issuer | Merit Crown Limited | |
Short-term Debt | $ 1,480,000 | 1,480,525 |
Short-term Debt, Weighted Average Interest Rate | 8.00% | |
Debt Instrument, Maturity Date | Oct. 31, 2018 | |
Short Term Debt Four [Member] | ||
Debt Instrument, Issuance Date | Dec. 9, 2016 | |
Debt Instrument Borrower | Hong Kong Takung | |
Debt Instrument, Issuer | Merit Crown Limited | |
Short-term Debt | $ 1,520,000 | 1,520,314 |
Short-term Debt, Weighted Average Interest Rate | 8.00% | |
Debt Instrument, Maturity Date | Nov. 30, 2018 | |
Short Term Debt Five [Member] | ||
Debt Instrument, Issuance Date | Dec. 19, 2017 | |
Debt Instrument Borrower | Hong Kong Takung | |
Debt Instrument, Issuer | Merit Crown Limited | |
Short-term Debt | $ 500,000 | 0 |
Short-term Debt, Weighted Average Interest Rate | 8.00% | |
Debt Instrument, Maturity Date | Dec. 18, 2018 | |
Short Term Debt Six [Member] | ||
Debt Instrument, Issuance Date | Dec. 22, 2017 | |
Debt Instrument Borrower | Hong Kong Takung | |
Debt Instrument, Issuer | Merit Crown Limited | |
Short-term Debt | $ 500,000 | $ 0 |
Short-term Debt, Weighted Average Interest Rate | 8.00% | |
Debt Instrument, Maturity Date | Dec. 21, 2018 |
SHORT-TERM BORROWINGS FROM TH52
SHORT-TERM BORROWINGS FROM THIRD PARTIES (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Interest Expense | $ 283,636 | $ 0 |
Short-term Debt [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% |
Interest Expense | $ 524,638 | $ 135,792 |
Short-term Debt, Average Outstanding Amount | $ 6,315,799 | $ 1,678,803 |
RELATED PARTY BALANCES AND TR53
RELATED PARTY BALANCES AND TRANSACTIONS (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | |
Due to Related Parties | $ 483,822 | $ 1,031,805 | |
Jianping Mao [Member] | |||
Due to Related Parties | [1] | $ 483,822 | $ 1,031,805 |
[1] | Jianping Mao (“Mao”), the wife of the Vice General Manager of Hong Kong Takung. |
RELATED PARTY BALANCES AND TR54
RELATED PARTY BALANCES AND TRANSACTIONS (Details 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Interest Expense, Related Party | $ 76,181 | $ 66,584 | |
Jianping Mao [Member] | |||
Interest Expense, Related Party | [1] | $ 76,181 | $ 66,584 |
[1] | Jianping Mao (“Mao”), the wife of the Vice General Manager of Hong Kong Takung. |
RELATED PARTY BALANCES AND TR55
RELATED PARTY BALANCES AND TRANSACTIONS (Details Textual) | 1 Months Ended | 12 Months Ended | ||||||
Nov. 15, 2017USD ($) | Nov. 15, 2017HKD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016HKD ($) | Dec. 31, 2017HKD ($) | Aug. 25, 2016USD ($) | Aug. 25, 2016HKD ($) | |
Related Party Transaction [Line Items] | ||||||||
Interest Expense, Related Party | $ 76,181 | $ 66,584 | ||||||
Due to Related Parties, Current | $ 483,822 | 1,031,805 | ||||||
HongKong Takung Assets And Equity of Artworks Exchange Co Ltd [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 2,303,912 | $ 18,000,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | ||||||
Debt Instrument, Maturity Date | Mar. 13, 2018 | |||||||
Repayments of Short-term Debt | $ 575,978 | $ 4,500,000 | 1,279,951 | $ 10,000,000 | ||||
Interest Expense, Related Party | $ 76,181 | $ 66,584 | ||||||
Jianpian Mao [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt Instrument, Maturity Date | Dec. 31, 2017 | |||||||
Debt Instrument, Principal Amount | $ 447,983 | $ 3,500,000 | ||||||
Due to Related Parties, Current | 483,822 | |||||||
Interest Payable, Current | $ 35,839 | $ 280,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Domestic | $ (1,963,291) | $ (2,162,110) |
Foreign | 1,244,572 | 10,302,253 |
Income/ (Loss) before income taxes | $ (718,719) | $ 8,140,143 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | ||
Federal | $ 0 | $ 0 |
State | 0 | 0 |
Foreign | 435,551 | 2,006,768 |
Total Current | 435,551 | 2,006,768 |
Deferred: | ||
Federal | (37,398) | 0 |
State | 0 | 0 |
Foreign | (55,297) | (237,319) |
Total Deferred | (92,695) | (237,319) |
Total provision for income taxes | $ 342,856 | $ 1,769,449 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
(Loss) income before income tax expense | $ (718,719) | $ 8,140,143 |
Computed tax expense (benefit) with statutory tax rate | (118,588) | 1,343,124 |
Impact of different tax rates in other jurisdictions | (255,701) | (359,520) |
Tax effect of non-deductible expenses | 281,867 | 129,936 |
Toll-charge from the Tax Act | 3,006,508 | 0 |
Foreign tax credits | (1,615,515) | 0 |
Changes in valuation allowance | (909,388) | 655,909 |
Tax Act U.S. federal rate change | (46,327) | 0 |
Total Provision for Income Taxes | $ 342,856 | $ 1,769,449 |
INCOME TAXES (Details 3)
INCOME TAXES (Details 3) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets | ||
Tax loss carried forward | $ 187,826 | $ 873,071 |
Unvested restricted stock carried forward | 37,398 | 209,629 |
Deferred advertising expenses | 157,262 | 122,496 |
Others | 518 | 588 |
Total deferred tax assets | 383,004 | 1,205,784 |
Less: valuation allowance | (52,624) | (962,012) |
Total Deferred tax assets, net of valuation allowance | 330,380 | 243,772 |
Deferred tax liabilities | ||
PPE, due to difference in depreciation | (38,950) | (62,618) |
Total Deferred tax liabilities | (38,950) | (62,618) |
Deferred tax assets, net of valuation allowance and deferred tax liabilities | $ 291,430 | $ 181,154 |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | |||
Operating Loss Carryforwards | $ 250,590 | $ 2,212,890 | |
Deferred Tax Assets, Valuation Allowance | 52,624 | 962,012 | |
Income Tax Expense (Benefit) | $ 342,856 | 1,769,449 | |
Taxable Rate On Liquid Assets | 15.50% | ||
Taxable Rate On Nonliquid Assets | 8.00% | ||
Undistributed Earnings of Foreign Subsidiaries | $ 17,500,000 | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 900,000 | ||
Operating Loss Carry Forwards, Expired | 237,397 | ||
Adjustments to Deferred Tax Assets | 46,327 | ||
Toll Charge Income [Member] | |||
Income Taxes [Line Items] | |||
Deemed Repatriation of Foreign Earnings | $ 8,800,000 | ||
Scenario, Plan [Member] | |||
Income Taxes [Line Items] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | ||
Hong Kong [Member] | |||
Income Taxes [Line Items] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 16.50% | ||
PRC [Member] | |||
Income Taxes [Line Items] | |||
Operating Loss Carryforwards | $ 540,913 | $ 504,782 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.00% | ||
Foreign Tax Authority [Member] | Expiration Period One [Member] | |||
Income Taxes [Line Items] | |||
Operating Loss Carryforwards | $ 513,190 | ||
Operating Loss Carry forwards, Expiration Period | will expire in 2021 | ||
Foreign Tax Authority [Member] | Expiration Period Two [Member] | |||
Income Taxes [Line Items] | |||
Operating Loss Carryforwards | $ 27,723 | ||
Operating Loss Carry forwards, Expiration Period | will expire in 2022 |
COMMITMENTS AND CONTINGENCIES61
COMMITMENTS AND CONTINGENCIES (Details) | Dec. 31, 2017USD ($) |
Operating Leased Assets [Line Items] | |
Year ending December 31, 2018 | $ 989,753 |
Year ending December 31, 2019 | 326,556 |
Year ending December 31, 2020 | 41,472 |
Year ending December 31, 2021 | 15,370 |
Year ending December 31, 2022 and thereafter | 54,434 |
Total | $ 1,427,585 |
COMMITMENTS AND CONTINGENCIES62
COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Leased Assets [Line Items] | ||
Operating Leases, Rent Expense, Net | $ 1,004,494 | $ 564,585 |
Capital Lease Obligations, Current | $ 162,021 | $ 90,315 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator: | ||
Net (loss) income | $ (1,061,575) | $ 6,370,694 |
Denominator: | ||
Weighted-average shares outstanding-Basic | 11,077,845 | 10,641,180 |
Stock options and restricted shares | 0 | 668,010 |
Weighted-average shares outstanding-Diluted | 11,077,845 | 11,309,190 |
Earnings per share | ||
-Basic | $ (0.10) | $ 0.60 |
-Diluted | $ (0.10) | $ 0.56 |
EARNINGS PER SHARE (Details Tex
EARNINGS PER SHARE (Details Textual) - shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule Of Earnings Per Share [Line Items] | ||
Incremental Common Shares Attributable to Dilutive Effect of Nonvested Shares with Forfeitable Dividends | 487,000 | |
Employee Stock Option [Member] | ||
Schedule Of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 418,760 | |
Restricted Stock [Member] | ||
Schedule Of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 33,809 |
STOCKHOLDERS_ EQUITY (Details)
STOCKHOLDERS’ EQUITY (Details) - Employee Stock Option [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Options, Outstanding, beginning of year | 428,525 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | |
Options, Exercised | 0 | |
Options, Forfeited | 9,765 | |
Options, Outstanding, end of year | 418,760 | 428,525 |
Options, Exercisable, end of year | 130,419 | |
Options, Expected to vest | 288,341 | |
Weighted Average Exercise Price, Outstanding, beginning of year | $ 3.15 | |
Weighted Average Exercise Price, Granted | 0 | |
Weighted Average Exercise Price, Exercised | 0 | |
Weighted Average Exercise Price, Forfeited | 3.2 | |
Weighted Average Exercise Price, Outstanding, end of year | 3.15 | $ 3.15 |
Weighted Average Exercise Price, Exercisable, end of year | 3.13 | |
Weighted Average Exercise Price, Expected to vest | $ 3.16 | |
Weighted Average Remaining Contractual Terms, Outstanding | 2 years 5 months 1 day | 3 years 5 months 12 days |
Weighted Average Remaining Contractual Terms, Granted | 0 years | |
Weighted Average Remaining Contractual Terms, Exercised | 0 years | |
Weighted Average Remaining Contractual Terms, Forfeited | 3 years 1 month 24 days | |
Weighted Average Remaining Contractual Terms, Exercisable, end of year | 1 year 7 months 6 days | |
Weighted Average Remaining Contractual Terms, Expected to vest | 2 years 9 months 18 days | |
Aggregate Intrinsic Value, Outstanding | $ 0 | $ 1,906,718 |
STOCKHOLDERS_ EQUITY (Details 1
STOCKHOLDERS’ EQUITY (Details 1) - Restricted Stock [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Stockholders Equity [Line Items] | ||
Number of Shares, Unvested at December 31, 2016 | 1,244 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 33,810 | |
Number of Shares, Forfeited | 0 | |
Number of Shares, Vested | (18,942) | |
Number of Shares, Unvested at December 31, 2017 | 16,112 | 1,244 |
Weighted Average Grant Date Fair Value, Unvested at December 31, 2016 | $ 3.35 | |
Weighted Average Grant Date Fair Value, Granted | 4.92 | |
Weighted Average Grant Date Fair Value, Forfeited | 0 | |
Weighted Average Grant Date Fair Value, Vested | 0 | |
Weighted Average Grant Date Fair Value, Unvested at December 31, 2017 | $ 3.27 | $ 3.35 |
Weighted Average Remaining Contractual Term, Granted | 1 year | |
Weighted Average Remaining Contractual Term, Unvested | 10 months 17 days | 2 months 1 day |
STOCKHOLDERS' EQUITY (Details T
STOCKHOLDERS' EQUITY (Details Textual) - USD ($) | Dec. 01, 2017 | Oct. 02, 2017 | Mar. 01, 2017 | Nov. 23, 2017 | Oct. 27, 2016 | Mar. 30, 2016 | Mar. 01, 2016 | Feb. 29, 2016 | Feb. 02, 2016 | Dec. 01, 2015 | Nov. 20, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Aug. 27, 2015 |
Schedule of Stockholders Equity [Line Items] | ||||||||||||||
Share-based Compensation | $ 751,157 | $ 812,759 | ||||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 2.91 | |||||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 3.65 | |||||||||||||
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 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 9,765 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 130,419 | |||||||||||||
2015 Incentive Stock Plan [Member] | Effective From 2nd February 2016 [Member] | ||||||||||||||
Schedule of Stockholders Equity [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 268,600 | |||||||||||||
2015 Incentive Stock Plan [Member] | Effective From 29th February 2016 [Member] | ||||||||||||||
Schedule of Stockholders Equity [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 50,000 | |||||||||||||
2015 Incentive Stock Plan [Member] | Effective From 30th March 2016 [Member] | ||||||||||||||
Schedule of Stockholders Equity [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 112,925 | |||||||||||||
Consulting Agreement [Member] | ||||||||||||||
Schedule of Stockholders Equity [Line Items] | ||||||||||||||
Share-based Compensation | $ 11,500 | |||||||||||||
Regeneration [Member] | ||||||||||||||
Schedule of Stockholders Equity [Line Items] | ||||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 20,000 | 487,000 | ||||||||||||
Equity, Fair Value Disclosure | $ 46,000 | |||||||||||||
Regeneration [Member] | Consulting Agreement [Member] | ||||||||||||||
Schedule of Stockholders Equity [Line Items] | ||||||||||||||
Share-based Compensation | 144,274 | $ 496,943 | ||||||||||||
Maxim Group LLC [Member] | ||||||||||||||
Schedule of Stockholders Equity [Line Items] | ||||||||||||||
Share-based Compensation | $ 201,808 | |||||||||||||
Non Employee [Member] | 2015 Incentive Stock Plan [Member] | Effective From 2nd February 2016 [Member] | ||||||||||||||
Schedule of Stockholders Equity [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 50,000 | |||||||||||||
Restricted Stock [Member] | ||||||||||||||
Schedule of Stockholders Equity [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 18,942 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 18,942 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 16,667 | 15,000 | 2,143 | |||||||||||
Restricted Stock [Member] | 2015 Incentive Stock Plan [Member] | ||||||||||||||
Schedule of Stockholders Equity [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 7,463 | 12,143 | ||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 556,533 | |||||||||||||
Restricted Stock [Member] | Maxim Group LLC [Member] | ||||||||||||||
Schedule of Stockholders Equity [Line Items] | ||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 50,000 |