Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 15, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Takung Art Co., Ltd. | |
Entity Central Index Key | 1,491,487 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | TKAT | |
Entity Common Stock, Shares Outstanding | 11,208,882 |
INTERIM CONDENSED CONSOLIDATED
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 12,809,609 | $ 11,866,965 |
Restricted cash | 28,104,820 | 25,273,617 |
Account receivables, net | 893,940 | 2,291,698 |
Prepayment and other current assets | 2,099,718 | 2,300,207 |
Loan receivables | 7,880,516 | 7,834,115 |
Total current assets | 51,788,603 | 49,566,602 |
Non-current assets | ||
Property and equipment, net | 2,519,496 | 2,191,321 |
Intangible assets | 22,234 | 22,334 |
Deferred tax assets | 215,858 | 291,430 |
Other non-current assets | 536,176 | 757,235 |
Total non-current assets | 3,293,764 | 3,262,320 |
Total assets | 55,082,367 | 52,828,922 |
Current liabilities | ||
Accrued expenses and other payables | 1,007,156 | 1,461,858 |
Customer deposits | 28,104,820 | 25,273,617 |
Advance from customers | 138,791 | 170,078 |
Short-term borrowings from third parties | 7,080,903 | 7,208,761 |
Amount due to related party | 0 | 483,822 |
Tax payables | 352,614 | 312,575 |
Total current liabilities | 36,684,284 | 34,910,711 |
Non-current liabilities | ||
Total liabilities | 36,684,284 | 34,910,711 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS’ EQUITY | ||
Common stock (1,000,000,000 shares authorized; $0.001 par value; 11,208,882 shares issued and outstanding as of March 31, 2018; 11,188,882 shares issued and outstanding as of December 31, 2017) | 11,209 | 11,189 |
Additional paid-in capital | 6,189,945 | 6,116,216 |
Retained earnings | 12,534,386 | 12,111,096 |
Accumulated other comprehensive loss | (337,457) | (320,290) |
Total stockholders’ equity | 18,398,083 | 17,918,211 |
Total liabilities and stockholders’ equity | $ 55,082,367 | $ 52,828,922 |
INTERIM CONDENSED CONSOLIDATED3
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
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 | 11,208,882 | 11,188,882 |
Common stock, shares outstanding | 11,208,882 | 11,188,882 |
INTERIM CONDENSED CONSOLIDATED4
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue | ||
Listing fee | $ 1,978,667 | $ 2,307,946 |
Commission | 1,635,517 | 1,670,613 |
Authorized agent subscription revenue | 191,623 | 0 |
Management fee | 168,315 | 292,551 |
Annual fee | 162 | 483 |
Total revenue | 3,974,284 | 4,271,593 |
Cost of revenue | (933,593) | (262,659) |
Gross profit | 3,040,691 | 4,008,934 |
Operating expenses | ||
General and administrative expenses | (3,008,885) | (2,573,391) |
Selling expenses | (243,591) | (337,527) |
Total operating expenses | (3,252,476) | (2,910,918) |
(Loss) income from operations | (211,785) | 1,098,016 |
Other income and expenses: | ||
Other income | 239,403 | 112,358 |
Loan interest expense | (154,783) | (149,891) |
Exchange gain | 992,895 | 120,937 |
Total other income | 1,077,515 | 83,404 |
Income before income tax expense | 865,730 | 1,181,420 |
Provision for income taxes | (442,440) | (307,881) |
Net income | 423,290 | 873,539 |
Foreign currency translation adjustment | (17,167) | 134,527 |
Comprehensive income | $ 406,123 | $ 1,008,066 |
Earnings per common share - basic | $ 0.04 | $ 0.08 |
Earnings per common share - diluted | $ 0.04 | $ 0.08 |
Weighted average number of common shares outstanding -basic | 11,204,215 | 10,733,506 |
Weighted average number of common shares outstanding -diluted | 11,223,408 | 11,509,938 |
INTERIM CONDENSED CONSOLIDATED5
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Changes in operating assets and liabilities: | ||
Net cash provided by (used in) operating activities | $ 3,039,614 | $ (616,716) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (231,478) | (59,900) |
Purchase of available-for-sales investment | (28,173,448) | (13,656,439) |
Maturity and redemption of available-for-sales investment | 28,173,448 | 13,656,439 |
Loan to third parties | 0 | (3,553,799) |
Repayment from loan to third parties | 239,356 | 3,403,940 |
Net cash provided by (used in) investing activities | 7,878 | (209,759) |
Cash flows from financing activities: | ||
Effect of exchange rate change on cash, cash equivalents and restricted cash | 726,355 | 139,134 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 3,773,847 | (687,341) |
Cash, cash equivalents and restricted cash, beginning balance | 37,140,582 | 35,138,697 |
Cash, cash equivalents and restricted cash, ending balance | 40,914,429 | 34,451,356 |
Supplemental cash flows information: | ||
Cash paid for interest | 74,601 | 69,229 |
Cash paid for income tax | $ 108,393 | $ 0 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 3 Months Ended |
Mar. 31, 2018 | |
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” or the “Company”), a Delaware corporation (formerly Cardigant Medical Inc.) through Hong Kong Takung Art Company Limited (formerly Hong Kong Takung Assets and Equity of Artworks Exchange Co., Ltd.), a Hong Kong company (“Hong Kong Takung”) and our wholly owned subsidiary, operates an electronic online platform located at www.takungae.com for artists, art dealers and art investors to offer and trade in valuable artwork. Hong Kong Takung was incorporated in Hong Kong September 17, 2012 Takung (Shanghai) Co., Ltd (“ Shanghai Takung 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 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 | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying consolidated balance sheet as of December 31, 2017, which has been derived from audited financial statements, and the unaudited interim condensed consolidated financial statements as of March 31, 2018 and for the three months ended March 31, 2018 and 2017 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and disclosures, which are normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), have been condensed or omitted pursuant to such rules and regulations, although management believes that the disclosures made are adequate to provide for fair presentation. The interim financial information should be read in conjunction with the financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017, previously filed with the SEC. This basis of accounting involves the application of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when incurred. The Company’s financial statements are expressed in U.S. Dollars. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the Company’s consolidated financial position as of March 31, 2018, its consolidated results of operations and cash flows for the three-month periods ended March 31, 2018 and 2017, as applicable, have been made. The interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods. Adoption of ASC Topic 606, “Revenue from Contracts with Customers” Effective January 1, 2018, the Company adopted Topic 606 using modified retrospective approach applied its contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are accounted for and presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with Topic 605. We recognize revenue when control of the promised services is transferred to our traders and offering agents. Revenue is measured at the transaction price which is based on the amount of consideration that the Company expects to receive in exchange for transferring the promised services to our traders and offering agents. Our revenue mainly falls into the following broad categories: (i) listing fees, (ii) trading commissions, (iii) management fees, (iv) authorized agent subscription fee, and (v) annual fee. Listing fee revenue Using the output method, we recognize the listing fee revenue at a point when the ownership units of the artwork are listed and successfully traded on our system, based on the agreed percentage of the total offering price. This amount is collected from the money raised from the issuance of such units accounted as the listing fee revenue accordingly. When the ownership units of the artwork are listed and starts trading on our system, the original owner and/or the offering agent shall pay us a one-time offering fee and a listing deposit. Commission fee revenue We generate commission fee from non-VIP traders and selected traders. We measure the progress of performance obligations using output method, as traders receive the benefits from receiving an access and making transactions on our trading platform: For non-VIP traders, the commission revenue was calculated based on a percentage of transaction value of artworks, which we charge trading commissions for the purchase and sale of the ownership shares of the artworks. For selected traders, starting from April 1, 2016, we charged a predetermined monthly fee (unlimited trades for specific artworks) for specific artworks. Commission rebate programs are offered to traders and service agents. We pay to existing traders and service agents at a predetermined referral rate of commission earned from the transactions of new traders referred by them. The commission rebate is recognized as a reduction of the commission revenue prior to January 1, 2018 under Topic 605. Starting from January 1, 2018, we account for the commission rebate as cost of revenue under Topic 606-10-32-26. As this is a classification between revenue and cost of revenue, it would have no impact on the opening balance for the year beginning January 1, 2018. Commission rebate recognized as cost of revenue was $ 606,241 49,465 The rebates are recognized in the same period the related revenue is recognized. Management fee revenue The custody and insurance service is provided for each individual artwork on a daily basis. The cost of custody and insurance for each unit of artwork is constant for all artworks. Using the cost based input method, we charge traders a management fee to cover the costs of insurance, storage and transportation for an artwork and trading management of artwork units, which are calculated at $0.0013 (HK$0.01) per 100 artwork units daily Authorized agent subscription revenue We charge 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 for each agent. Annual fee revenue We charge an up-front 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 for each trader. For comparative purpose, we adjusted the revenue for three months ended March 31, 2017 as if retrospectively adopted ASC 606. Three months ended 2018 2017 (Unaudited) (Unaudited) As previously Adjustments Adjusted Listing fee revenue $ 1,978,667 $ 2,307,946 - $ 2,307,946 Commission 1,635,517 1,670,613 49,465 1,720,078 Management fee revenue 168,315 292,551 - 292,551 Authorized agent subscription revenue 191,623 - - - Annual fee revenue 162 483 - 483 Total $ 3,974,284 $ 4,271,593 $ 49,465 $ 4,321,058 The Company has elected to apply the practical expedient in paragraph ASC 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one year or less. We do not have amounts of contract assets that the Company has right to consideration in exchange for services that the Company has transferred to customers when that right is conditioned on something other than the passage of time. Our contract liabilities are the Company’s obligation to transfer services to traders for which the Company has received consideration from the traders. All contract liabilities are expected to be recognized as revenue within one months and are presented in Advance from Customers in our Condensed Consolidated Balance Sheet. Statement of Cash Flows: In January 2018, the FASB staff released guidance on accounting for the tax provisions of Global Intangible Low-Taxed Income (“GILTI”) as provided under the Tax Cuts and Jobs Act (“the Act”). GILTI refers to the tax on the excess of a United States shareholder’s total net foreign income over a deemed return on tangible assets. Based on the information available for the first quarter of 2018, the Company provisionally made a policy election and accounted for its potential GILTI tax as a period cost when incurred. Accounting Pronouncements Issued But Not Yet Adopted Except for the ASU disclosed in Note 2 to the financial statements on Form 10-K for the fiscal year ended December 31, 2017, previously filed with the SEC, there is no ASU the FASB issued that expected to have a material impact on the condensed consolidated financial statements upon adoption. |
PREPAYMENT AND OTHER CURRENT AS
PREPAYMENT AND OTHER CURRENT ASSETS | 3 Months Ended |
Mar. 31, 2018 | |
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 consisted of the following: March 31, December 31, (Unaudited) Tax receivables $ 900,029 $ 1,132,140 Prepaid service fees 520,090 489,424 Short-term borrowings to third party 478,271 461,092 Staff advance 81,657 52,124 Prepaid repair and maintenance - 46,733 Other current assets 119,671 118,694 Prepayment and other current assets $ 2,099,718 $ 2,300,207 |
ACCOUNT RECEIVABLES, NET
ACCOUNT RECEIVABLES, NET | 3 Months Ended |
Mar. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 4. ACCOUNT RECEIVABLES, NET March 31, December 31, (Unaudited) Listing fee $ 702,818 $ 2,259,671 Authorized agent subscription revenue 747,686 559,101 Monthly commission fee 1,375,004 1,463,243 Others 53,504 80,473 Subtotal 2,879,012 4,362,488 Less: allowance for doubtful accounts (1,985,072) (2,070,790) Account receivables, net $ 893,940 $ 2,291,698 |
LOAN RECEIVABLES
LOAN RECEIVABLES | 3 Months Ended |
Mar. 31, 2018 | |
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 $ 1,566,687 0 % 10/31/2018 12/9/2016 Xiaohui Wang Tianjin Takung 10,550,000 10,062,400 $ 1,604,183 0 % 11/30/2018 4/4/2017 Xiaohui Wang Tianjin Takung 22,921,725 22,921,725 $ 3,654,262 0 % 12/31/2018 12/15/2017 Xiaohui Wang Tianjin Takung 3,310,000 3,310,000 $ 527,692 0 % 12/14/2018 12/19/2017 Xiaohui Wang Tianjin Takung 3,310,000 3,310,000 $ 527,692 0 % 12/18/2018 Total $ 7,880,516 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 Shanghai Takung and Tianjin Takung were guaranteed by Chongqing Wintus (New Star) Enterprises Group (“Chongqing”). Xiaohui Wang (“Ms. Wang”) is a citizen of the People’s Republic of China. Ms. Wang is a shareholder and the legal representative of Chongqing. Both Chongqing and Ms. Wang are non-related parties to the Company. • 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 | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 6. PROPERTY AND EQUIPMENT, NET March 31, December 31, (Unaudited) Furniture, fixtures and equipment $ 180,813 $ 167,651 Leasehold improvements 493,397 426,138 Computer trading and clearing system 3,858,497 3,485,844 Transport equipment 114,683 - Sub-total 4,647,390 4,079,633 Less: accumulated depreciation (2,127,894) (1,888,312) Property and equipment, net $ 2,519,496 $ 2,191,321 Depreciation expense was $ 228,704 168,142 |
ACCRUED EXPENSES AND OTHER PAYA
ACCRUED EXPENSES AND OTHER PAYABLES | 3 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 7. ACCRUED EXPENSES AND OTHER PAYABLES March 31, December 31, 2018 2017 (Unaudited) Accruals for professional fees $ 431,596 $ 192,067 Accruals for consulting fees 264,189 265,393 Payroll payables 157,671 827,246 Trading and clearing system 52,474 52,564 Other payables 101,226 124,588 Total accrued expenses, account & other payables $ 1,007,156 $ 1,461,858 |
SHORT-TERM BORROWINGS FROM THIR
SHORT-TERM BORROWINGS FROM THIRD PARTIES | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Short-term Debt [Text Block] | 8. SHORT-TERM BORROWINGS FROM THIRD PARTIES Date Borrower Lender March 31, December 31, Annual Repayment 7/15/2016 Hong Kong Takung Merit Crown Limited $ 1,500,000 $ 1,500,000 8 % 12/31/2018 8/24/2016 Hong Kong Takung Merit Crown Limited $ 1,999,500 $ 1,999,500 8 % 12/31/2018 11/18/2016 Hong Kong Takung Merit Crown Limited $ 1,480,000 $ 1,480,000 8 % 10/31/2018 12/9/2016 Hong Kong Takung Merit Crown Limited $ 1,520,000 $ 1,520,000 8 % 11/30/2018 12/19/2017 Hong Kong Takung Merit Crown Limited $ 500,000 $ 500,000 8 % 12/18/2018 12/22/2017 Hong Kong Takung Merit Crown Limited $ 500,000 $ 500,000 8 % 12/21/2018 Less: Discount loan payable $ (418,597) $ (290,739) Total $ 7,080,903 $ 7,208,761 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 7,017,703 6,315,799 150,569 129,557 |
RELATED PARTY BALANCES AND TRAN
RELATED PARTY BALANCES AND TRANSACTIONS | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 9. RELATED PARTY BALANCES AND TRANSACTIONS The following is a list of related parties to which the Company has transactions with: (a) Jianping Mao (“Mao”), the wife of the Vice General Manager of Hong Kong Takung. Amount due to related party March 31, December 31, (Unaudited) Mao (a) $ - $ 483,822 Total - 483,822 The interest expenses during the three months ended March 31, 2018 and March 31, 2017 were $ 4,214 20,334 March 13, 2018 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 10. 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. Under the Tax Act, the Company is subject to tax on GILTI earned by its foreign subsidiaries and made a reasonable estimate of the impact for the three months ended March 31, 2018. The GILTI provision requires the Company to include the excess of the U.S. shareholder’s net controlled foreign corporations’ earnings over the U.S. shareholder’s deemed tangible income return. The Company provisionally made a policy election and accounted for its estimated tax on GILTI for the three months ended March 31, 2018 as a period cost when incurred since the Company does not anticipate any deferred tax impact around GILTI due to its current period impact on the U.S. tax payable. As of March 31, 2018 and December 31, 2017, the Company in the United States had $693,597 and $250,090 in net operating loss carry forwards available to offset future taxable income, respectively. For net operating losses arising after December 31, 2017, the Tax Act limits the Company’s ability to utilize NOL carryforwards to 80% of taxable income and can to carryforward the NOL indefinitely. Carrybacks are now prohibited. NOLs generated prior to January 1, 2018 will not be subject to the taxable income limitation and will begin to expire in 2033 if not utilized. 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 March 31, 2018, the Company has not completed its accounting for all tax effects of the Tax Act and has made reasonable estimates during 2017. The Company will monitor future guidance set forth by the Department of Treasury with regard to the tax provisions under the Act that are applicable and will revise relevant estimates as appropriate within the one year 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% for the three months ended March 31, 2018 and the year ended December 31, 2017, if applicable. PRC In accordance with the relevant tax laws and regulations of the PRC, a company registered in the PRC is subject to income taxes within the PRC at the applicable tax rate on taxable income. All the PRC subsidiaries were subject to income tax at a rate of 25%. The income tax provision consists of the following components: March 31, 2018 March 31, 2017 (Unaudited) (Unaudited) Current: Federal $ - $ - State - - Foreign 356,281 349,997 Total Current $ 356,281 $ 349,997 Deferred: Federal $ 37,398 $ State - - Foreign 48,761 (42,116 ) Total Deferred $ 86,159 $ (42,116 ) Total provision for income taxes $ 442,440 307,881 A reconciliation between the Company’s actual provision for income taxes and the provision at the Hong Kong statutory rate is as follows: March 31, March 31, Income before income tax expense $ 865,730 $ 1,181,420 Computed tax expense (benefit) with statutory tax rate 142,845 194,934 Impact of different tax rates in other jurisdictions 20,700 (153,094 ) Tax effect of non-deductible expenses 141,310 20,520 Changes in valuation allowance 137,585 245,521 Total Provision for Income Taxes $ 442,440 $ 307,881 The effective tax rate for the three months ended 2018 and 2017 was 51.5% and 26.1%, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 11. COMMITMENTS AND CONTINGENCIES Operation Commitments Nine months ending December 31, 2018 $ 779,629 Year ending December 31, 2019 370,358 Year ending December 31, 2020 43,411 Year ending December 31, 2021 15,942 Year ending December 31, 2022 and thereafter 56,462 Total $ 1,265,802 Rental expense of the Company was $ 272,270 224,547 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 12. EARNINGS PER SHARE Three months ended Three months ended (Unaudited) (Unaudited) Numerator: Net income $ 423,290 $ 873,539 Denominator: Weighted-average shares outstanding-Basic 11,204,215 10,733,506 Stock options and restricted shares 19,193 776,432 Weighted-average shares outstanding-Diluted 11,223,408 11,509,938 Earnings per share -Basic $ 0.04 $ 0.08 -Diluted $ 0.04 $ 0.08 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. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 13. SUBSEQUENT EVENT The Company evaluated and concluded that no subsequent events have occurred that would require recognition or disclosure in the condensed consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN19
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying consolidated balance sheet as of December 31, 2017, which has been derived from audited financial statements, and the unaudited interim condensed consolidated financial statements as of March 31, 2018 and for the three months ended March 31, 2018 and 2017 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and disclosures, which are normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), have been condensed or omitted pursuant to such rules and regulations, although management believes that the disclosures made are adequate to provide for fair presentation. The interim financial information should be read in conjunction with the financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017, previously filed with the SEC. This basis of accounting involves the application of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when incurred. The Company’s financial statements are expressed in U.S. Dollars. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the Company’s consolidated financial position as of March 31, 2018, its consolidated results of operations and cash flows for the three-month periods ended March 31, 2018 and 2017, as applicable, have been made. The interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Standards Adoption of ASC Topic 606, “Revenue from Contracts with Customers” Effective January 1, 2018, the Company adopted Topic 606 using modified retrospective approach applied its contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are accounted for and presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with Topic 605. We recognize revenue when control of the promised services is transferred to our traders and offering agents. Revenue is measured at the transaction price which is based on the amount of consideration that the Company expects to receive in exchange for transferring the promised services to our traders and offering agents. Our revenue mainly falls into the following broad categories: (i) listing fees, (ii) trading commissions, (iii) management fees, (iv) authorized agent subscription fee, and (v) annual fee. Listing fee revenue Using the output method, we recognize the listing fee revenue at a point when the ownership units of the artwork are listed and successfully traded on our system, based on the agreed percentage of the total offering price. This amount is collected from the money raised from the issuance of such units accounted as the listing fee revenue accordingly. When the ownership units of the artwork are listed and starts trading on our system, the original owner and/or the offering agent shall pay us a one-time offering fee and a listing deposit. Commission fee revenue We generate commission fee from non-VIP traders and selected traders. We measure the progress of performance obligations using output method, as traders receive the benefits from receiving an access and making transactions on our trading platform: For non-VIP traders, the commission revenue was calculated based on a percentage of transaction value of artworks, which we charge trading commissions for the purchase and sale of the ownership shares of the artworks. For selected traders, starting from April 1, 2016, we charged a predetermined monthly fee (unlimited trades for specific artworks) for specific artworks. Commission rebate programs are offered to traders and service agents. We pay to existing traders and service agents at a predetermined referral rate of commission earned from the transactions of new traders referred by them. The commission rebate is recognized as a reduction of the commission revenue prior to January 1, 2018 under Topic 605. Starting from January 1, 2018, we account for the commission rebate as cost of revenue under Topic 606-10-32-26. As this is a classification between revenue and cost of revenue, it would have no impact on the opening balance for the year beginning January 1, 2018. Commission rebate recognized as cost of revenue was $ 606,241 49,465 The rebates are recognized in the same period the related revenue is recognized. Management fee revenue The custody and insurance service is provided for each individual artwork on a daily basis. The cost of custody and insurance for each unit of artwork is constant for all artworks. Using the cost based input method, we charge traders a management fee to cover the costs of insurance, storage and transportation for an artwork and trading management of artwork units, which are calculated at $0.0013 (HK$0.01) per 100 artwork units daily Authorized agent subscription revenue We charge 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 for each agent. Annual fee revenue We charge an up-front 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 for each trader. For comparative purpose, we adjusted the revenue for three months ended March 31, 2017 as if retrospectively adopted ASC 606. Three months ended 2018 2017 (Unaudited) (Unaudited) As previously Adjustments Adjusted Listing fee revenue $ 1,978,667 $ 2,307,946 - $ 2,307,946 Commission 1,635,517 1,670,613 49,465 1,720,078 Management fee revenue 168,315 292,551 - 292,551 Authorized agent subscription revenue 191,623 - - - Annual fee revenue 162 483 - 483 Total $ 3,974,284 $ 4,271,593 $ 49,465 $ 4,321,058 The Company has elected to apply the practical expedient in paragraph ASC 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one year or less. We do not have amounts of contract assets that the Company has right to consideration in exchange for services that the Company has transferred to customers when that right is conditioned on something other than the passage of time. Our contract liabilities are the Company’s obligation to transfer services to traders for which the Company has received consideration from the traders. All contract liabilities are expected to be recognized as revenue within one months and are presented in Advance from Customers in our Condensed Consolidated Balance Sheet. Statement of Cash Flows: In January 2018, the FASB staff released guidance on accounting for the tax provisions of Global Intangible Low-Taxed Income (“GILTI”) as provided under the Tax Cuts and Jobs Act (“the Act”). GILTI refers to the tax on the excess of a United States shareholder’s total net foreign income over a deemed return on tangible assets. Based on the information available for the first quarter of 2018, the Company provisionally made a policy election and accounted for its potential GILTI tax as a period cost when incurred. Accounting Pronouncements Issued But Not Yet Adopted Except for the ASU disclosed in Note 2 to the financial statements on Form 10-K for the fiscal year ended December 31, 2017, previously filed with the SEC, there is no ASU the FASB issued that expected to have a material impact on the condensed consolidated financial statements upon adoption. |
SUMMARY OF SIGNIFICANT ACCOUN20
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule Of Revenue Impact By Changes In Accounting Policies [Table Text Block] | The following tables identify the disaggregation of our revenue: Three months ended 2018 2017 (Unaudited) (Unaudited) As previously Adjustments Adjusted Listing fee revenue $ 1,978,667 $ 2,307,946 - $ 2,307,946 Commission 1,635,517 1,670,613 49,465 1,720,078 Management fee revenue 168,315 292,551 - 292,551 Authorized agent subscription revenue 191,623 - - - Annual fee revenue 162 483 - 483 Total $ 3,974,284 $ 4,271,593 $ 49,465 $ 4,321,058 |
PREPAYMENT AND OTHER CURRENT 21
PREPAYMENT AND OTHER CURRENT ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | Prepayment and other current assets consisted of the following: March 31, December 31, (Unaudited) Tax receivables $ 900,029 $ 1,132,140 Prepaid service fees 520,090 489,424 Short-term borrowings to third party 478,271 461,092 Staff advance 81,657 52,124 Prepaid repair and maintenance - 46,733 Other current assets 119,671 118,694 Prepayment and other current assets $ 2,099,718 $ 2,300,207 |
ACCOUNT RECEIVABLES, NET (Table
ACCOUNT RECEIVABLES, NET (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounts Receivable [Member] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Account receivables consisted of the following: March 31, December 31, (Unaudited) Listing fee $ 702,818 $ 2,259,671 Authorized agent subscription revenue 747,686 559,101 Monthly commission fee 1,375,004 1,463,243 Others 53,504 80,473 Subtotal 2,879,012 4,362,488 Less: allowance for doubtful accounts (1,985,072) (2,070,790) Account receivables, net $ 893,940 $ 2,291,698 |
LOAN RECEIVABLES (Tables)
LOAN RECEIVABLES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 $ 1,566,687 0 % 10/31/2018 12/9/2016 Xiaohui Wang Tianjin Takung 10,550,000 10,062,400 $ 1,604,183 0 % 11/30/2018 4/4/2017 Xiaohui Wang Tianjin Takung 22,921,725 22,921,725 $ 3,654,262 0 % 12/31/2018 12/15/2017 Xiaohui Wang Tianjin Takung 3,310,000 3,310,000 $ 527,692 0 % 12/14/2018 12/19/2017 Xiaohui Wang Tianjin Takung 3,310,000 3,310,000 $ 527,692 0 % 12/18/2018 Total $ 7,880,516 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment consisted of the following: March 31, December 31, (Unaudited) Furniture, fixtures and equipment $ 180,813 $ 167,651 Leasehold improvements 493,397 426,138 Computer trading and clearing system 3,858,497 3,485,844 Transport equipment 114,683 - Sub-total 4,647,390 4,079,633 Less: accumulated depreciation (2,127,894) (1,888,312) Property and equipment, net $ 2,519,496 $ 2,191,321 |
ACCRUED EXPENSES AND OTHER PA25
ACCRUED EXPENSES AND OTHER PAYABLES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | Accrued expenses and other payables as of March 31, 2018 and December 31, 2017 consisted of the following: March 31, December 31, 2018 2017 (Unaudited) Accruals for professional fees $ 431,596 $ 192,067 Accruals for consulting fees 264,189 265,393 Payroll payables 157,671 827,246 Trading and clearing system 52,474 52,564 Other payables 101,226 124,588 Total accrued expenses, account & other payables $ 1,007,156 $ 1,461,858 |
SHORT-TERM BORROWINGS FROM TH26
SHORT-TERM BORROWINGS FROM THIRD PARTIES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt [Table Text Block] | The following table sets forth a summary of the loan agreements in loan receivables balance: Date Borrower Lender March 31, December 31, Annual Repayment 7/15/2016 Hong Kong Takung Merit Crown Limited $ 1,500,000 $ 1,500,000 8 % 12/31/2018 8/24/2016 Hong Kong Takung Merit Crown Limited $ 1,999,500 $ 1,999,500 8 % 12/31/2018 11/18/2016 Hong Kong Takung Merit Crown Limited $ 1,480,000 $ 1,480,000 8 % 10/31/2018 12/9/2016 Hong Kong Takung Merit Crown Limited $ 1,520,000 $ 1,520,000 8 % 11/30/2018 12/19/2017 Hong Kong Takung Merit Crown Limited $ 500,000 $ 500,000 8 % 12/18/2018 12/22/2017 Hong Kong Takung Merit Crown Limited $ 500,000 $ 500,000 8 % 12/21/2018 Less: Discount loan payable $ (418,597) $ (290,739) Total $ 7,080,903 $ 7,208,761 |
RELATED PARTY BALANCES AND TR27
RELATED PARTY BALANCES AND TRANSACTIONS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Jianping Mao [Member] | |
Schedule Of Debt Interest Expenses [Table Text Block] | Amount due to related party consisted of the following as of the periods indicated: March 31, December 31, (Unaudited) Mao (a) $ - $ 483,822 Total - 483,822 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | March 31, March 31, (Unaudited) (Unaudited) Current: Federal $ - $ - State - - Foreign 356,281 349,997 Total Current $ 356,281 $ 349,997 Deferred: Federal $ 37,398 $ State - - Foreign 48,761 (42,116) Total Deferred $ 86,159 $ (42,116) Total provision for income taxes $ 442,440 307,881 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation between the Company’s actual provision for income taxes and the provision at the Hong Kong statutory rate is as follows: March 31, March 31, Income before income tax expense $ 865,730 $ 1,181,420 Computed tax expense (benefit) with statutory tax rate 142,845 194,934 Impact of different tax rates in other jurisdictions 20,700 (153,094) Tax effect of non-deductible expenses 141,310 20,520 Changes in valuation allowance 137,585 245,521 Total Provision for Income Taxes $ 442,440 $ 307,881 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 are payable as follows: Nine months ending December 31, 2018 $ 779,629 Year ending December 31, 2019 370,358 Year ending December 31, 2020 43,411 Year ending December 31, 2021 15,942 Year ending December 31, 2022 and thereafter 56,462 Total $ 1,265,802 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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. Three months ended Three months ended (Unaudited) (Unaudited) Numerator: Net income $ 423,290 $ 873,539 Denominator: Weighted-average shares outstanding-Basic 11,204,215 10,733,506 Stock options and restricted shares 19,193 776,432 Weighted-average shares outstanding-Diluted 11,223,408 11,509,938 Earnings per share -Basic $ 0.04 $ 0.08 -Diluted $ 0.04 $ 0.08 |
ORGANIZATION AND DESCRIPTION 31
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Textual) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
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 ACCOUN32
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues | $ 3,974,284 | $ 4,271,593 |
Scenario, Previously Reported [Member] | ||
Revenues | 4,271,593 | |
Restatement Adjustment [Member] | ||
Revenues | 49,465 | |
As Adjusted [Member] | ||
Revenues | 4,321,058 | |
Listing fee revenue [Member] | ||
Revenues | 1,978,667 | |
Listing fee revenue [Member] | Scenario, Previously Reported [Member] | ||
Revenues | 2,307,946 | |
Listing fee revenue [Member] | Restatement Adjustment [Member] | ||
Revenues | 0 | |
Listing fee revenue [Member] | As Adjusted [Member] | ||
Revenues | 2,307,946 | |
Commission revenue [Member] | ||
Revenues | 1,635,517 | |
Commission revenue [Member] | Scenario, Previously Reported [Member] | ||
Revenues | 1,670,613 | |
Commission revenue [Member] | Restatement Adjustment [Member] | ||
Revenues | 49,465 | |
Commission revenue [Member] | As Adjusted [Member] | ||
Revenues | 1,720,078 | |
Management fee revenue [Member] | ||
Revenues | 168,315 | |
Management fee revenue [Member] | Scenario, Previously Reported [Member] | ||
Revenues | 292,551 | |
Management fee revenue [Member] | Restatement Adjustment [Member] | ||
Revenues | 0 | |
Management fee revenue [Member] | As Adjusted [Member] | ||
Revenues | 292,551 | |
Authorized Agent Subscription Revenue [Member] | ||
Revenues | 191,623 | |
Authorized Agent Subscription Revenue [Member] | Scenario, Previously Reported [Member] | ||
Revenues | 0 | |
Authorized Agent Subscription Revenue [Member] | Restatement Adjustment [Member] | ||
Revenues | 0 | |
Authorized Agent Subscription Revenue [Member] | As Adjusted [Member] | ||
Revenues | 0 | |
Annual fee revenue [Member] | ||
Revenues | $ 162 | |
Annual fee revenue [Member] | Scenario, Previously Reported [Member] | ||
Revenues | 483 | |
Annual fee revenue [Member] | Restatement Adjustment [Member] | ||
Revenues | 0 | |
Annual fee revenue [Member] | As Adjusted [Member] | ||
Revenues | $ 483 |
SUMMARY OF SIGNIFICANT ACCOUN33
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Summary of Significant Accounting Policies [Line Items] | |||
Management Fee Income Description | $0.0013 (HK$0.01) per 100 artwork units daily | ||
Cost of Revenue | $ 933,593 | $ 262,659 | |
Commission revenue [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Cost of Revenue | $ 606,241 | $ 49,465 |
PREPAYMENT AND OTHER CURRENT 34
PREPAYMENT AND OTHER CURRENT ASSETS (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Tax receivables | $ 900,029 | $ 1,132,140 |
Prepaid service fees | 520,090 | 489,424 |
Short-term borrowings to third party | 478,271 | 461,092 |
Staff advance | 81,657 | 52,124 |
Prepaid repair and maintenance | 0 | 46,733 |
Other current assets | 119,671 | 118,694 |
Prepayment and other current assets | $ 2,099,718 | $ 2,300,207 |
ACCOUNT RECEIVABLES, NET (Detai
ACCOUNT RECEIVABLES, NET (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Subtotal | $ 2,879,012 | $ 4,362,488 |
Less: allowance for doubtful accounts | (1,985,072) | (2,070,790) |
Account receivables, net | 893,940 | 2,291,698 |
Listing fee [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross, Current | 702,818 | 2,259,671 |
Authorized agent subscription revenue [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross, Current | 747,686 | 559,101 |
Monthly commission fee [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross, Current | 1,375,004 | 1,463,243 |
Others [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross, Current | $ 53,504 | $ 80,473 |
LOAN RECEIVABLES (Details)
LOAN RECEIVABLES (Details) | 3 Months Ended | ||
Mar. 31, 2018USD ($) | Mar. 31, 2018CNY (¥) | Dec. 31, 2017USD ($) | |
Loans and Leases Receivable, Net Amount | $ | $ 7,880,516 | ||
Loans and Leases Receivable, Balance Amount | $ | $ 7,880,516 | $ 7,834,115 | |
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 | $ 1,566,687 | ¥ 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 | Dec. 9, 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 | $ 1,604,183 | 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 | $ 3,654,262 | 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 Four [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 | $ 527,692 | 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 Five [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 | $ 527,692 | 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) | Mar. 31, 2018 |
Merit Crown [Member] | |
Debt Instrument, Interest Rate, Stated Percentage | 8.00% |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Cost | ||
Furniture, fixtures and equipment | $ 180,813 | $ 167,651 |
Leasehold improvements | 493,397 | 426,138 |
Computer trading and clearing system | 3,858,497 | 3,485,844 |
Transport equipment | 114,683 | 0 |
Sub-total | 4,647,390 | 4,079,633 |
Less: accumulated depreciation | (2,127,894) | (1,888,312) |
Property and equipment, net | $ 2,519,496 | $ 2,191,321 |
PROPERTY AND EQUIPMENT, NET (39
PROPERTY AND EQUIPMENT, NET (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation | $ 228,704 | $ 168,142 |
ACCRUED EXPENSES AND OTHER PA40
ACCRUED EXPENSES AND OTHER PAYABLES (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule Of Accounts Payable And Accrued Liabilities [Line Items] | ||
Accruals for professional fees | $ 431,596 | $ 192,067 |
Accruals for consulting fees | 264,189 | 265,393 |
Payroll payables | 157,671 | 827,246 |
Trading and clearing system | 52,474 | 52,564 |
Other payables | 101,226 | 124,588 |
Total accrued expenses, account & other payables | $ 1,007,156 | $ 1,461,858 |
SHORT-TERM BORROWINGS FROM TH41
SHORT-TERM BORROWINGS FROM THIRD PARTIES (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Short-term Debt | $ 7,080,903 | $ 7,208,761 |
Debt Instrument, Unamortized Discount, Current | $ (418,597) | (290,739) |
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 | 1,500,000 |
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 | 1,999,500 |
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 | 1,480,000 |
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 | 1,520,000 |
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 | 500,000 |
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 | $ 500,000 |
Short-term Debt, Weighted Average Interest Rate | 8.00% | |
Debt Instrument, Maturity Date | Dec. 21, 2018 |
SHORT-TERM BORROWINGS FROM TH42
SHORT-TERM BORROWINGS FROM THIRD PARTIES (Details Textual) - Short-term Debt [Member] - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | |
Interest Expense | $ 150,569 | $ 129,557 | |
Short-term Debt, Average Outstanding Amount | $ 7,017,703 | $ 6,315,799 |
RELATED PARTY BALANCES AND TR43
RELATED PARTY BALANCES AND TRANSACTIONS (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Due to Related Parties | $ 0 | $ 483,822 |
Jianping Mao [Member] | ||
Due to Related Parties | $ 0 | $ 483,822 |
RELATED PARTY BALANCES AND TR44
RELATED PARTY BALANCES AND TRANSACTIONS (Details Textual) - HongKong Takung Assets And Equity of Artworks Exchange Co Ltd [Member] - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Related Party Transaction [Line Items] | ||
Debt Instrument, Maturity Date | Mar. 13, 2018 | |
Interest Expense, Related Party | $ 4,214 | $ 20,334 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Current: | ||
Federal | $ 0 | $ 0 |
State | 0 | 0 |
Foreign | 356,281 | 349,997 |
Total Current | 356,281 | 349,997 |
Deferred: | ||
Federal | 37,398 | |
State | 0 | 0 |
Foreign | 48,761 | (42,116) |
Total Deferred | 86,159 | (42,116) |
Total provision for income taxes | $ 442,440 | $ 307,881 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income before income tax expense | $ 865,730 | $ 1,181,420 |
Computed tax expense (benefit) with statutory tax rate | 142,845 | 194,934 |
Impact of different tax rates in other jurisdictions | 20,700 | (153,094) |
Tax effect of non-deductible expenses | 141,310 | 20,520 |
Changes in valuation allowance | 137,585 | 245,521 |
Total Provision for Income Taxes | $ 442,440 | $ 307,881 |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Income Taxes [Line Items] | |||
Operating Loss Carryforwards | $ 693,597 | $ 250,090 | |
Effective Income Tax Rate Reconciliation, Percent | 51.50% | 26.10% | |
Percentage Of Net Operating Loss Carryforwards | 80.00% | ||
Hong Kong [Member] | |||
Income Taxes [Line Items] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 16.50% | 16.50% | |
PRC [Member] | |||
Income Taxes [Line Items] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.00% |
COMMITMENTS AND CONTINGENCIES48
COMMITMENTS AND CONTINGENCIES (Details) | Mar. 31, 2018USD ($) |
Operating Leased Assets [Line Items] | |
Nine months ending December 31, 2018 | $ 779,629 |
Year ending December 31, 2019 | 370,358 |
Year ending December 31, 2020 | 43,411 |
Year ending December 31, 2021 | 15,942 |
Year ending December 31, 2022 and thereafter | 56,462 |
Total | $ 1,265,802 |
COMMITMENTS AND CONTINGENCIES49
COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating Leased Assets [Line Items] | ||
Operating Leases, Rent Expense, Net | $ 272,270 | $ 224,547 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Numerator: | ||
Net income | $ 423,290 | $ 873,539 |
Denominator: | ||
Weighted-average shares outstanding-Basic | 11,204,215 | 10,733,506 |
Stock options and restricted shares | 19,193 | 776,432 |
Weighted-average shares outstanding-Diluted | 11,223,408 | 11,509,938 |
Earnings per share | ||
-Basic | $ 0.04 | $ 0.08 |
-Diluted | $ 0.04 | $ 0.08 |