Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 15, 2015 | Jun. 30, 2014 | |
Document Information [Line Items] | |||
Entity Registrant Name | China United Insurance Service, Inc. | ||
Entity Central Index Key | 1512927 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Accelerated Filer | ||
Trading Symbol | CUII | ||
Entity Common Stock, Shares Outstanding | 29,100,503 | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $246,865,397 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Current assets | ||
Cash and equivalents | $19,571,799 | $18,070,093 |
Marketable securities | 2,437,006 | 2,563,685 |
Accounts receivable, net | 7,706,273 | 7,282,183 |
Current assets associated with discontinued operations | 174,308 | 184,360 |
Other current assets | 400,159 | 2,145,317 |
Total current assets | 30,289,545 | 30,245,638 |
Property, plant and equipment, net | 1,061,762 | 1,041,189 |
Intangible assets | 270,956 | 308,267 |
Goodwill | 31,651 | 0 |
Long-term Investment | 95,328 | 102,295 |
Other assets | 587,522 | 587,303 |
TOTAL ASSETS | 32,336,764 | 32,284,692 |
Current liabilities | ||
Taxes payable | 919,907 | 498,441 |
Unearned revenue | 0 | 1,586,038 |
Other current liabilities | 9,533,589 | 8,631,639 |
Deferred tax liability | 37,662 | 0 |
Current liabilities associated with discontinued operations | 782 | 666 |
Due to related parties | 531,447 | 154,798 |
Total current liabilities | 11,023,387 | 10,871,582 |
Long-term liabilities | 7,500,645 | 7,095,062 |
TOTAL LIABILITIES | 18,524,032 | 17,966,644 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, par value $0.00001, 10,000,000 authorized, 1,000,000 issued and outstanding | 10 | 10 |
Common stock, par value $0.00001, 100,000,000 authorized, 29,100,503 issued and outstanding | 291 | 291 |
Additional paid-in capital | 4,674,593 | 4,674,593 |
Statutory Reserve | 1,388,014 | 415,041 |
Accumulated other comprehensive loss | -350,881 | -75,888 |
Retained earnings (accumulated deficit) | 1,717,278 | 3,598,383 |
Stockholder's equity attribute to parent's shareholders | 7,429,305 | 8,612,430 |
Noncontrolling interest | 6,383,427 | 5,705,618 |
TOTAL STOCKHOLDERS' EQUITY | 13,812,732 | 14,318,048 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $32,336,764 | $32,284,692 |
CONSOLIDATED_BALANCE_SHEETS_PA
CONSOLIDATED BALANCE SHEETS [PARENTHETICAL] (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred Stock, shares issued | 1,000,000 | 1,000,000 |
Preferred Stock, shares outstanding | 1,000,000 | 1,000,000 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 29,100,503 | 29,100,503 |
Common stock, shares outstanding | 29,100,503 | 29,100,503 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME / (LOSS) (USD $) | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Revenues | $23,689,110 | $47,449,962 | $37,842,246 | $3,153,776 |
Cost of revenue | 16,040,303 | 30,408,118 | 24,309,716 | 2,363,581 |
Gross profit | 7,648,807 | 17,041,844 | 13,532,530 | 790,195 |
Operating expenses: | ||||
Selling | 2,010,744 | 4,034,409 | 962,958 | |
General and administrative | 5,948,516 | 11,971,863 | 9,062,828 | 1,166,841 |
Impairment loss of goodwill | 122,250 | 0 | 0 | 0 |
Income (loss) from operations | -432,703 | 1,035,572 | 3,506,744 | -376,646 |
Other income (expenses): | ||||
Interest income | 108,654 | 229,317 | 83,682 | 4,756 |
Bargain gain on purchase of subsidiaries | 0 | 0 | 5,280,042 | 0 |
Other - net | -652,079 | 365,225 | 432,064 | -18 |
Total other income (expenses) | -543,425 | 594,542 | 5,795,788 | 4,738 |
Income (loss) before income taxes | -976,128 | 1,630,114 | 9,302,532 | -371,908 |
Income tax expense | 143,660 | 1,672,840 | 698,508 | -268,440 |
Net income (loss) | -1,119,788 | -42,726 | 8,604,024 | -103,468 |
Net income attributable to the noncontrolling interests | -32,190 | -865,406 | -1,386,556 | 0 |
Net income (loss) attributable to parent's shareholders | -1,151,978 | -908,132 | 7,217,468 | -103,468 |
Other comprehensive items | ||||
Foreign currency translation gain (loss) | -38,218 | -268,695 | 13,195 | 13,972 |
Other comprehensive income(loss) | 4,001 | -6,298 | 384 | 0 |
Attributable to parent's shareholders | -34,217 | -274,993 | 13,579 | 13,972 |
Other comprehensive items attributable to noncontrolling interest | 16,557 | 346,783 | -1,630 | 0 |
Comprehensive income (loss) attributable to parent's shareholders | -1,186,195 | -1,183,125 | 7,231,047 | -89,496 |
Comprehensive income (loss) attributable to noncontrolling interest | ($15,633) | ($518,623) | ($1,388,186) | $0 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 29,100,503 | 29,100,503 | 27,593,654 | 20,100,503 |
Diluted (in shares) | 29,100,503 | 29,100,503 | 28,588,174 | 20,100,503 |
Income (loss) per share: | ||||
Basic (in dollars per share) | ($0.04) | ($0.03) | $0.26 | ($0.01) |
Diluted (in dollars per share) | ($0.04) | ($0.03) | $0.25 | ($0.01) |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Cash flows from operating activities: | ||||
Net income (loss) | ($1,119,788) | ($42,726) | $8,604,024 | ($103,468) |
Adjustments to reconcile net income to net cash | ||||
Depreciation and amortization | 152,362 | 407,390 | 108,492 | 39,366 |
Gain on valuatin of financial assets | 0 | -11,181 | 0 | 0 |
Loss on disposal of fixed assets | 303,079 | 99,443 | 0 | 0 |
Bargain gain on purchase of subsidiaries | 0 | 0 | -5,280,042 | 0 |
Impairment loss on goodwill | 122,250 | 0 | 0 | 0 |
Share-based payment | 0 | 0 | 0 | 1,508 |
Write off VAT to be deducted | 68,003 | 0 | 0 | |
Change in deferred tax liabilities | 0 | 39,447 | 0 | 0 |
Changes in operating assets and liabilities: | ||||
Accounts receivable | -3,181,659 | -841,719 | -1,773,181 | -102,830 |
Other current assets | -514,736 | -200,081 | 103,643 | -7,051 |
Other assests | -73,905 | -22,502 | -19,207 | 0 |
Tax payable | -398,047 | 460,524 | -123,260 | -295,807 |
Other current liabilities | 6,115,072 | 580,875 | -21,894 | 123,787 |
Long-term unearned revenue | 6,344,152 | 0 | 0 | 0 |
Net cash provided by (used in) operating activities | 7,816,783 | 469,470 | 1,598,575 | -344,495 |
Cash flows from investing activities: | ||||
Cash from acuqisition | 0 | 128,933 | 12,766,882 | 0 |
Sale of investment in current deposit | 0 | 1,627,816 | 0 | 0 |
Purchase of Marketable securities | -4,190,739 | 0 | -2,553 | 0 |
Purchase of property, plant and equipment | -450,864 | -464,286 | -8,912 | -24,557 |
Purchase of intangible assets | -195,442 | -86,501 | -17,291 | 0 |
Net cash provided by (used in) investing activities | -4,837,045 | 1,205,962 | 12,738,126 | -24,557 |
Cash flows from financing activities: | ||||
Proceeds from related party borrowing | 54,679 | 391,812 | 1,260,382 | 323,029 |
Repayment to related parties | -1,668,838 | 0 | 0 | -18,157 |
Net cash provided by (used in) financing activities | -1,614,159 | 391,812 | 1,260,382 | 304,872 |
Foreign currency translation | -813 | -565,538 | -149,967 | 25,178 |
Net increase (Decrease) in cash and cash equivalents | 1,364,766 | 1,501,706 | 15,447,116 | -39,002 |
Cash and cash equivalents, beginning balance | 16,705,327 | 18,070,093 | 1,258,211 | 1,297,213 |
Cash and cash equivalents, ending balance | 18,070,093 | 19,571,799 | 16,705,327 | 1,258,211 |
Interest paid | 0 | 0 | 0 | 0 |
Income tax paid | $483,058 | $1,187,694 | $974,615 | $15,720 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Other Comprehensive Income (Loss) [Member] | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Reserves [Member] | Retained Earnings [Member] | Parent [Member] | Noncontrolling Interest [Member] |
Balance at Jun. 30, 2011 | $788,660 | ($69,222) | $200 | $0 | $2,673,186 | $0 | ($1,815,504) | $788,660 | $0 |
Balance (in shares) at Jun. 30, 2011 | 20,000,000 | 0 | |||||||
Share-based payment | 1,508 | 0 | 1 | 0 | 1,507 | 0 | 0 | 1,508 | 0 |
Share-based payment (in shares) | 100,503 | 0 | |||||||
Foreign currency translation gain (loss) | 13,972 | 13,972 | 0 | 0 | 0 | 0 | 0 | 13,972 | 0 |
Net income (loss) | -103,468 | 0 | 0 | 0 | 0 | 0 | -103,468 | -103,468 | 0 |
Balance at Jun. 30, 2012 | 700,672 | -55,250 | 201 | 0 | 2,674,693 | 0 | -1,918,972 | 700,672 | 0 |
Balance (in shares) at Jun. 30, 2012 | 20,100,503 | 0 | |||||||
Foreign currency translation gain (loss) | 11,565 | 13,195 | 0 | 0 | 0 | 0 | 0 | 13,195 | -1,630 |
Net income (loss) | 8,604,024 | 0 | 0 | 0 | 0 | 0 | 7,217,468 | 7,217,468 | 1,386,556 |
Reclassification to preferred stock | 0 | 0 | -10 | 10 | 0 | 0 | 0 | 0 | 0 |
Reclassification to preferred stock (in shares) | -1,000,000 | 1,000,000 | |||||||
Issuance of common stock | 2,000,000 | 0 | 100 | 0 | 1,999,900 | 0 | 0 | 2,000,000 | 0 |
Issuance of common stock (in shares) | 10,000,000 | 0 | |||||||
Appropriation of reserves | 0 | 0 | 0 | 0 | 0 | 257,785 | -390,879 | -133,094 | 133,094 |
Acquisition of noncontrolling interests | 4,171,965 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4,171,965 |
Other comprerhensive gain (loss) | 384 | ||||||||
Balance at Jun. 30, 2013 | 15,488,610 | -41,671 | 291 | 10 | 4,674,593 | 257,785 | 4,907,617 | 9,798,625 | 5,689,985 |
Balance (in shares) at Jun. 30, 2013 | 29,100,503 | 1,000,000 | |||||||
Foreign currency translation gain (loss) | -56,841 | -38,218 | 0 | 0 | -38,218 | -18,623 | |||
Net income (loss) | -1,119,788 | -1,151,978 | -1,151,978 | 32,190 | |||||
Appropriation of reserves | 0 | 0 | 0 | 157,256 | -157,256 | 0 | 0 | ||
Other comprerhensive gain (loss) | 6,067 | 4,001 | 0 | 0 | 4,001 | 2,066 | |||
Balance at Dec. 31, 2013 | 14,318,048 | -75,888 | 291 | 10 | 4,674,593 | 415,041 | 3,598,383 | 8,612,430 | 5,705,618 |
Balance (in shares) at Dec. 31, 2013 | 29,100,503 | 1,000,000 | |||||||
Foreign currency translation gain (loss) | -612,232 | -268,695 | -268,695 | -343,537 | |||||
Net income (loss) | -42,726 | -908,132 | -908,132 | 865,406 | |||||
Appropriation of reserves | 0 | 972,973 | -972,973 | 0 | |||||
Acquisition of noncontrolling interests | 159,186 | 159,186 | |||||||
Other comprerhensive gain (loss) | -9,544 | -6,298 | -6,298 | -3,246 | |||||
Balance at Dec. 31, 2014 | $13,812,732 | ($350,881) | $291 | $10 | $4,674,593 | $1,388,014 | $1,717,278 | $7,429,305 | $6,383,427 |
Balance (in shares) at Dec. 31, 2014 | 29,100,503 | 1,000,000 |
ORGANIZATION_AND_PRINCIPAL_ACT
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE 1 – ORGANIZATION AND PRINCIPAL ACTIVITIES |
China United Insurance Service, Inc. (“China United”, “CUIS” or the “Company”) is a Delaware corporation organized on June 4, 2010 by Mao Yi Hsiao, a Taiwanese citizen, as a listing vehicle for ZLI Holdings Limited (“CU Hong Kong”) to be quoted on the United States Over the Counter Bulletin Board (the “OTCBB”). | |
CU Hong Kong, a wholly owned Hong Kong-based subsidiary of China United, was founded by China United, on July 12, 2010 under Hong Kong law. On October 20, 2010, CU Hong Kong founded a wholly foreign owned enterprise, Zhengzhou Zhonglian Hengfu Business Consulting Co., Ltd. (“CU WFOE”) in Henan province in the People’s Republic of China (“PRC”). | |
On January 16, 2011, the Company issued 20,000,000 shares of common stock, $0.00001 par value, to several non-US persons for $300,000. The issuance was made pursuant to an exemption from registration in Regulation S under the Securities Act of 1933, as amended. The consideration was paid to the account of CU Hong Kong by May 6, 2011. All $300,000 was contributed into the bank account of CU WFOE as registered capital. On January 28, 2011, the Company increased the number of authorized shares of common stock from 30,000,000 to 100,000,000 and authorized 10,000,000 shares of preferred stock. | |
Law Anhou Insurance Agency Co., Ltd. (“Anhou”, formerly known as Zhengzhou Anhou Insurance Agency Co., Ltd. or Henan Law Anhou Insurance Agency Co., Ltd.) was founded in Henan province of the PRC on October 9, 2003. Anhou provides insurance agency services in the PRC. | |
Due to PRC legal restrictions on foreign ownership and investment in the insurance agency businesses in China, particularly those based on qualifications as well as capital requirements of the investors, Able Capital Holding Co., Ltd., a limited liability company established and registered in Hong Kong, delegated four PRC individuals, namely Wang Yanyan, Chen Zhaohui, Hou Weizhe and Zhang Yong, to invest in Anhou on its behalf. On September 26, 2013, the new PRC individual investors, namely Wang Yanyan, Chen Zhaohui, Yue Jing, Hou Weizhe, Zhang Yong, Chen Li (“Anhou New Investors”) and the original shareholders of Anhou (“Anhou Original Shareholders”) entered into a shareholders resolution of Anhou, pursuant to which, Anhou Original Shareholders and Anhou New Investors agreed to increase the registered capital of Anhou to RMB50 million (approximately $8 million). On October 24, 2013, Anhou Original Shareholders entered into share transfer agreements (the “Share Transfer Agreements”) with Hu Changrong, a PRC citizen (“Mr. Hu” together with Anhou New Investors, “Anhou Existing Shareholders”), respectively. Under the Share Transfer Agreements, Anhou Original Shareholders transferred all of their equity interests in Anhou to Mr. Hu. | |
On February 26, 2014, Anhou completed the registration of the change of its registered address to Room 1906-1910, No. 215 Jiangdong Middle Road, Jianye District, Nanjing, Jiangsu Province with the local AIC of Jiangsu Province. The new business license was issued to Anhou on February 26, 2014. Anhou obtained the Professional Insurance Agency License issued by Jiangsu Bureau of CIRC on April 21, 2014. Anhou’s previous headquarters located at Building 4K, Hesheng Plaza, No. 26 Yousheng South Road, Jinshui District, Zhengzhou, Henan province, has been registered as the Henan branch office of Anhou and it obtained the Professional Insurance Agency License issued by Henan Bureau of CIRC on January 3, 2014 and the business license issued by local AIC on January 9, 2014. | |
Sichuan Kangzhuang Insurance Agency Co., Ltd. (“Sichuan Kangzhuang”) was founded on September 4, 2006 in the Sichuan province in the PRC and provides insurance agency services in the PRC. On August 23, 2010, at Sichuan Kangzhuang’s general meeting of shareholders, its shareholders voted to sell their shares to Anhou for RMB532,622 ($78,318). On September 6, 2010, the equity transfer agreements were signed between Anhou and each shareholder of Sichuan Kangzhuang. Sichuan Kangzhuang then had net liabilities of RMB219,123 ($32,134). Goodwill of RMB751,745 ($110,452) was therefore recorded. However, Sichuan Kangzhuang suffered loss since the acquisition, indicating the impairment of goodwill. As of December 31, 2013, the carrying value of the goodwill was fully impaired. | |
Jiangsu Law Insurance Broker Co., Ltd. (“Jiangsu Law”) was founded on September 19, 2005 in Jiangsu Province in the PRC. Jiangsu Law provides insurance brokerage services in the PRC. On August 12, 2010, at Jiangsu Law’s general meeting of shareholders, its shareholders voted to sell their shares to Anhou for RMB518,000 ($75,475) and Anhou increased Jiangsu Law’s paid-in capital to RMB10,000,000 ($1,355,150) from RMB5,180,000 ($625,113), on January 18, 2011, to meet the PRC paid-in capital requirements for insurance brokerage companies. On September 28, 2010, the equity transfer agreements were signed between Anhou and each shareholder of Jiangsu Law. On acquisition date, Jiangsu Law had net assets of RMB2,286,842 ($341,425). Based on the purchase price allocation, the fair value (“FV”) of the identifiable assets and liabilities assumed exceeded the FV of the consideration paid. As a result, the Company recorded a gain on acquisition of RMB1,768,842 ($267,156). | |
Due to PRC legal restrictions on foreign ownership and investment in insurance agency and brokerage businesses in China, especially those on qualifications and capital requirements of the investors, we operate our business primarily through our Consolidated Affiliated Entities (“CAE”) in PRC. On January 17, 2011, CU WFOE and Anhou and Anhou Original Shareholders entered into a series of agreements known as variable interest agreements (the “Old VIE Agreements”) pursuant to which CU WFOE has executed effective control over Anhou through these contractual arrangements. As a result of the capital increase and the share transfer described above, on October 24, 2013, CU WFOE, Anhou and Anhou Existing Shareholders entered into a series of variable interest agreements (the “VIE Agreements”), including Power of Attorneys, Exclusive Option Agreements, Share Pledge Agreements, in the same form as the previous Old VIE Agreements, other than the change of shareholder names and their respective shareholdings. The Old VIE Agreements were terminated by and among CU WFOE, Anhou and Anhou Original Shareholders on the same date. The Exclusive Business Cooperation Agreement executed by and between CU WFOE and Anhou on January 17, 2011 remains in full effect. We do not hold equity interests in our CAE. However, through the VIE Agreements with these CAE and their respective shareholders, we effectively control, and are able to derive substantially all of the economic benefits from, these CAE, which allows us to consolidate the financial results of the CAE in our financial statements. | |
On July 2, 2012, the Board of Directors and stockholders of the Company approved, in connection with a reclassification of 1,000,000 issued and outstanding shares of common stock (the “Reclassified Shares”), par value $0.00001 per share held by Mao Yi Hsiao (“Mr. Mao”) into 1,000,000 shares of Series A Convertible Preferred Stock, par value $0.00001 per share (the “Series A Preferred Stock”) on a share-for-share basis (the “Reclassification”), the issuance of 1,000,000 shares of Series A Preferred Stock to Mr. Mao and cancellation of 1,000,000 common stock held and submitted by Mr. Mao pursuant to the Reclassification. | |
Mr. Mao has extensive experience in the insurance agency and brokerage industry and has acted as the chairman of the board of Law Broker. Under the leadership of Mr. Mao, Law Broker has grown into one of the top insurance brokerage firms in Taiwan, has sustained stable growth for the past decades and generated substantial shareholder value for its stockholders. The management of the Company wanted Mr. Mao to apply his years of experience in insurance industry into the Company’s expansion and to lead its growth. As a result the Company approached Mr. Mao to discuss the possibility of Mr. Mao to play more of a managerial role and commit more time on the strategy design and operation of the Company and its subsidiaries. To ensure the consistently implementation of strategies and policies of the Company, through mutual discussion and negotiations, both the Company and Mr. Mao (and subsequently a majority of the shareholders) agree to the reclassification, pursuant to which, 1,000,000 shares of Series A Convertible Preferred Stock (with 1 to 10 special voting power) were issued to Mr. Mao in replacement of the 1,000,000 shares of Common Stock previously held by Mr. Mao. In exchange for the reclassification, Mr. Mao agreed to be engaged by the Company as its Chief Executive Officer within 6 months after July 2, 2012 or according to a timetable otherwise agreed upon. On August 8, 2014, the Board of Directors appointed Mr. Mao as the Chief Executive Officer, effective immediately. | |
All 1,000,000 shares of Series A Preferred Stock were reclassified from the 1,000,000 shares of common stock held by Mr. Mao and no additional consideration was paid by Mr. Mao in connection with the Reclassification. The preferred stock has no material quantitative preferences over common stock, such as liquidation preferences and dividend preferences, and it specifically granted equal status to common stock pursuant to the terms of the Certificate of Designation. Each holder of common stock is entitled to one vote for each share of common stock held of record by such holder as of the applicable record date on any matter submitted to a vote of the stockholders of the Company; while each holder of Series A Preferred Stock is entitled to ten votes for each share of Series A Preferred Stock held of record by such holder as of the applicable record date on any matter submitted to a vote of the stockholders of the Company. | |
On August 24, 2012, the Company acquired all of the issued and outstanding shares of Action Holdings Financial Limited (“AHFL”), a limited liability company (“LLC”) incorporated under the laws of British Virgin Islands on April 30, 2012, together with its subsidiaries in Taiwan. Subsequent to the acquisition, AHFL became a 100% owned subsidiary of the Company. | |
AHFL holds 65.95% of the issued and outstanding shares of Law Enterprise Co., Ltd. (“Law Enterprise”), a company limited by shares incorporated under the laws of Taiwan on January 30, 1996. As of August 24, 2012, Law Enterprise held (i) 100% of Law Insurance Broker Co., Ltd. (“Law Broker”), a company limited by shares incorporated in Taiwan on October 9, 1992; (ii) 97.84% of Law Risk Management & Consultant Co., Ltd. (“Law Management”), a company limited by shares incorporated in Taiwan on December 5, 1987; and (iii) 96% of Law Insurance Agent Co., Ltd. (“Law Agent”), an LLC incorporated in Taiwan on June 3, 2000. | |
Pursuant to the provisions of the Acquisition Agreement between the Company and the selling shareholders of AHFL and for all of the issued and outstanding shares of AHFL, the Company was to pay NT$15 million ($500,815) on or prior to March 31, 2013 and NT$7.5 million ($250,095) subsequent to March 31, 2013 in cash in two installments, subject to terms and conditions therein. In addition the Company agreed to (i) issue 8,000,000 shares of common stock of the Company to the shareholders of AHFL; (ii) issue 2,000,000 shares of common stock of the Company to certain employees of Law Broker; and (iii) create an employee stock option pool, consisting of available options, exercisable for up to 2,000,000 shares of common stock of the Company. | |
On March 14, 2013, the Company and the selling shareholders of AHFL entered into an Amendment to the Acquisition Agreement (the “Amendment”), pursuant to which, (i) the cash payment deadline as set forth in the Acquisition Agreement was extended from March 31, 2013 to March 31, 2015 or at any other time or in any other manner otherwise agreed upon by and among the Company and the selling shareholders of AHFL; and (ii) in lieu of the 2,000,000 employee stock option pool described in the Acquisition Agreement, the Company agrees to use its best efforts, as soon as practically possible, to create an employee stock pool consisting of up to 4,000,000 shares of CUIS common stock, among which 2,000,000 shares shall be solely granted to employees of Law Broker, and the remaining 2,000,000 shares to be granted to employees of affiliated entities of the Company (including Law Broker employees). | |
Law Enterprise is a holding company for its operating subsidiaries in Taiwan. Law Broker primarily engages in insurance brokerage and insurance agency service business across Taiwan, while Law Management and Law Agent are not in operation. We operate our Taiwan business primarily through Law Broker. | |
On April 23, 2014, AHFL entered into a capital increase agreement (“Agreement”) with Wong Chun Kwok Johnny (“Mr Wong”), the owner of Prime Financial Asia Ltd (PFAL) which is a re-insurance broker company resided in Hong Kong. Pursuant to the Agreement, Mr Wong would increase PFAL’s capital contribution from HK$500,000 to HK$1,470,000, and AHFL would contribute HK$1,530,000 to PFAL’s registered capital. Upon the completion of capital contribution by both parties, Mr. Wong and AHFL would own 49% and 51% of PFAL’s equity interest, respectively. The transaction was completed on April 30, 2014. | |
In the fourth quarter of 2014, the shareholders of the Law Management and Law Agent made the resolution to dissolve Law Management and Law Agent, respectively, because those companies have not been in operation. The dissolution of Law Management and Law Agent was approved by the Taiwan (R.O.C) Government on November 26, 2014 and on January 13, 2015, respectively. Abide by the law in Taiwan, the liquidator was appointed by the shareholders of the Law Management and Law Agent and the liquidator shall complete the liquidation process no later than six months from the appointment date. Both Law Management and Law Agent are under the process of liquidation as of now. | |
The corporate structure as of December 31, 2014 is as follows: | |
On January 17 2014, the Company’s Board of Directors approved a change in our fiscal year end to December 31 from June 30. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||
Significant Accounting Policies [Text Block] | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||||||
Principles of Consolidation | |||||||||||||||||||||||||||
The accompanying consolidated financial statements include the accounts of China United and its subsidiaries as shown in the organization structure in Note 1 above. All significant intercompany transactions and balances were eliminated in consolidation. | |||||||||||||||||||||||||||
Basis of Presentation | |||||||||||||||||||||||||||
The Company’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). | |||||||||||||||||||||||||||
Noncontrolling Interest | |||||||||||||||||||||||||||
Noncontrolling interest consists of direct and indirect equity interest in AHFL and subsidiaries arising from the acquisition of AHFL by CUIS. | |||||||||||||||||||||||||||
The Company follows Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, “Consolidation,” which governs the accounting for and reporting of noncontrolling interests (“NCIs”) in partially owned consolidated subsidiaries and the loss of control of subsidiaries. Certain provisions of this standard indicate, among other things, that NCIs be treated as a separate component of equity, not as a liability, that increases and decreases in the parent’s ownership interest that leave control intact be treated as equity transactions rather than as step acquisitions or dilution gains or losses, and that losses of a partially owned consolidated subsidiary be allocated to the NCI even when such allocation might result in a deficit balance. This standard also required changes to certain presentation and disclosure requirements. | |||||||||||||||||||||||||||
The net income (loss) attributed to the NCI is separately designated in the accompanying statements of operations and other comprehensive income (loss). Losses attributable to the NCI in a subsidiary may exceed the NCI’s interests in the subsidiary’s equity. The excess attributable to the NCI is attributed to those interests. The NCI shall continue to be attributed its share of losses even if that attribution results in a deficit NCI balance. | |||||||||||||||||||||||||||
Use of Estimates | |||||||||||||||||||||||||||
The preparation of the consolidated financial statements in conformity with US 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 dates of the consolidated financial statements and the amounts of revenues and expenses during the reporting periods. | |||||||||||||||||||||||||||
Management makes these estimates using the best information available when they are made; however, actual results could differ materially from those estimates. | |||||||||||||||||||||||||||
Risks and Uncertainties | |||||||||||||||||||||||||||
The Company is subject to risks from, among other things, competition associated with the industry in general, other risks associated with financing, liquidity requirements, rapidly changing customer requirements, limited operating history, and foreign currency exchange rates. | |||||||||||||||||||||||||||
Comprehensive Income | |||||||||||||||||||||||||||
The Company follows FASB ASC Topic 220 (“ASC 220”), “Reporting Comprehensive Income,” which establishes standards for the reporting and display of comprehensive income, its components and accumulated balances in a full set of general purpose financial statements. ASC 220 defines comprehensive income as net income and all changes to stockholders' equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders, including adjustments to minimum pension liabilities, accumulated foreign currency translation, and unrealized gains or losses on marketable securities. | |||||||||||||||||||||||||||
Foreign Currency Transactions | |||||||||||||||||||||||||||
The functional currency for our subsidiaries in Taiwan is New Taiwan Dollar (“NT$”) and for the VIEs in China is Renminbi (“RMB”). | |||||||||||||||||||||||||||
The consolidated financial statements were translated into United States Dollars (“USD” or “$”) in accordance with FASB ASC Topic 830 “Foreign Currency Transaction.” According to the standard, all assets and liabilities were translated at the exchange rate on the balance sheet dates; stockholders’ equity is translated at historical rates and statement of operations items are translated at the weighted average exchange rate for the period. The resulting translation adjustments are reported under other comprehensive income in accordance with ASC 220. Gains and losses resulting from the translation of foreign currency transactions are reflected in the consolidated statements of operations and other comprehensive income (loss). | |||||||||||||||||||||||||||
Cash and Equivalents | |||||||||||||||||||||||||||
For Statements of Cash Flows purposes, the Company considers cash on hand, bank deposits, and other highly-liquid investments with maturities of three months or less when purchased, such as commercial paper, to be cash and equivalents. | |||||||||||||||||||||||||||
The Company maintains cash with banks in the PRC and Taiwan. Cash accounts with the bank institutions in the PRC are not insured or otherwise protected. Should any bank holding cash become insolvent, or if the Company is otherwise unable to withdraw funds, the Company would lose the cash with that bank; however, the Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. In Taiwan, a depositor has up to NT$3,000,000 insured in a bank. In Hong Kong, a depositor has up to HKD$500,000 insured in a bank. In the United States, the standard insurance amount is $250,000 per depositor in a bank under the FDIC’s general deposit insurance rules. | |||||||||||||||||||||||||||
Marketable Securities | |||||||||||||||||||||||||||
The Company invests part of its excess cash in equity securities, money market funds and government bonds. Such investments are included in “Marketable securities” in the accompanying consolidated balance sheets. Held-to-maturity represents securities the Company has intends and has the ability to hold to maturity; trading securities represent securities bought and held primarily for sale in the near-term to generate income on short-term price differences; available-for-sale represents securities not classified as held-to-maturity or trading securities. | |||||||||||||||||||||||||||
The Company classifies the equity security investments as trading securities and reports them at FV with changes in FV recorded in “Other Income” in the statements of operations and other comprehensive income (loss). The Company classifies bonds as available-for-sale and reports them at FV with unrealized gains and losses included in “Accumulated other comprehensive income (loss)” on the equity section of the balance sheets. | |||||||||||||||||||||||||||
Accounts Receivable, net | |||||||||||||||||||||||||||
The Company reviews its accounts receivable regularly to determine if a bad debt allowance is necessary at each year-end. Management reviews the composition of accounts receivable and analyzes the age of receivables outstanding, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the necessity of making such allowance. No allowance was deemed necessary as of December 31, 2014 and 2013. | |||||||||||||||||||||||||||
Property, Plant and Equipment, net | |||||||||||||||||||||||||||
Property, plant and equipment are recorded at cost. Gain or loss on disposal of property, plant and equipment is recorded in other income at disposal. Expenditures for betterments, renewals and additions are capitalized. Repairs and maintenance expenses are expensed as incurred. | |||||||||||||||||||||||||||
Depreciation for financial reporting purposes is provided using the straight-line method over a useful life of three to ten years with salvage value of 10% to 25%. Property, plant and equipment mainly consist of office furniture, computers, vehicles and leasehold improvements. | |||||||||||||||||||||||||||
Impairment of Long-Lived Assets | |||||||||||||||||||||||||||
In accordance with ASC Topic 360, “Property, Plant and Equipment,” the Company reviews the carrying values of long-lived assets whenever facts and circumstances indicate an asset may be impaired. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to future net undiscounted cash flows expected to be generated by it. If an asset is considered impaired, the impairment recognized is measured by the amount by which the carrying amount of the asset exceeds its FV. Assets to be disposed of are reported at the lower of the carrying amount or FV, less cost of disposal. No impairment was recognized for the years ended December 31, 2014, June 30, 2013 and 2012, and six months ended December 31, 2013. | |||||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||||
Goodwill arose from the acquisition of PFAL and Sichuan Kangzhuang (Note 10). Goodwill is the excess of the cost of an acquisition over the FV of the net assets acquired. Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate it might be impaired, using the prescribed two-step process under US GAAP. The first step screens for potential impairment of goodwill to determine if the FV of the reporting unit is less than its carrying value, while the second step measures the amount of goodwill impairment, if any, by comparing the implied FV of goodwill to its carrying value. Sichuan Kangzhuang has been suffering net loss since the acquisition, indicating the impairment of goodwill. As of December 31, 2013, the carrying value of the goodwill was fully impaired. Accordingly, we recorded a goodwill impairment loss of $122,250 in the six months ended December 31, 2013. As of December 31, 2014, there were no any indications of the impairment of goodwill that arose from the acquisition of PFAL. | |||||||||||||||||||||||||||
Revenue Recognition | |||||||||||||||||||||||||||
The Company’s revenue is from insurance agency and brokerage services. The Company, through its subsidiaries, sells insurance products to customers, and obtains commissions from the respective insurance companies according to the terms of each insurance company service agreement. The Company recognizes revenue when the following have occurred: persuasive evidence of an agreement between the insurance company and insured exists, services were provided, the fee for such services is fixed or determinable and collectability of the fee is reasonably assured. Insurance agency services are considered complete, and revenue is recognized, when an insurance policy becomes effective. The customers are entitled to a 10-day cancellation period from the date of issuance of the policies, in which customers can cancel the contract without any fees. The Company is notified of such cancellations by the insurance carriers. For the six months ended December 31, 2013 and for the fiscal years ended December 31, 2014 and June 30, 2013 and 2012, policy cancellations were $22,553, $84,476, $12,809 and nil, respectively. | |||||||||||||||||||||||||||
The Company pays commissions to its sub-agents when an insurance product is sold by the sub-agent. The Company recognizes commission revenue on a gross basis. The commissions paid by the Company to its sub-agents are recorded as cost of revenue. | |||||||||||||||||||||||||||
Income Taxes | |||||||||||||||||||||||||||
The Company utilizes ASC Topic 740, “Income Taxes”, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events included in the financial statements or tax returns. Under this method, deferred taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each year-end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. | |||||||||||||||||||||||||||
When tax returns are filed, it is likely some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more-likely-than-not the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits is classified as interest expense and penalties are classified in general and administrative expenses in the statements of income and other comprehensive income (loss). As of December 31, 2014 and 2013, the Company did not have any uncertain tax positions. | |||||||||||||||||||||||||||
The Company was not subjected to income tax examinations by taxing authorities during the current or past fiscal years. In connection with the acquisition of China entities, the Company is required to comply with the information return reporting requirements such as Foreign Bank Accounts Reporting (FBAR), Information Return on Foreign-Owned U.S. Corporation or U.S. Corporation owning certain foreign corporation (Under Section 6038A and 6038C of Internal Revenue Code, etc.). The Company failed to comply with such requirements for the years of 2010, 2011 and 2012. The potential penalty is estimated to be $370,000 in the event of a tax audit, which has been accrued in the six months ended December 31, 2013, and it has not been paid during the year ended December 31, 2014. | |||||||||||||||||||||||||||
Preferred Stock | |||||||||||||||||||||||||||
The Company is authorized to issue 10,000,000 shares of preferred stock, $.00001 par value. We currently have 1,000,000 shares of Series A Preferred Stock (“Series A Stock”) outstanding as of December 31, 2014, which was classified as equity. | |||||||||||||||||||||||||||
Section 480-10-25 requires that an issuer classify a financial instrument that is within its scope as a liability (or an asset in some circumstances) because that financial instrument embodies an obligation of the issuer. Section 480-10-05-2 classifies all of the following as examples of an obligation: | |||||||||||||||||||||||||||
a. An entity incurs a conditional obligation to transfer assets by issuing (writing) a put option that would, if exercised, require the entity to repurchase its equity shares by physical settlement. (Further, an instrument that requires the issuer to settle its obligation by issuing another instrument [for example, a note payable in cash] ultimately requires settlement by a transfer of assets.) | |||||||||||||||||||||||||||
b. An entity incurs a conditional obligation to transfer assets by issuing a similar contract that requires or could require net cash settlement. | |||||||||||||||||||||||||||
c. An entity incurs a conditional obligation to issue its equity shares by issuing a similar contract that requires net share settlement. | |||||||||||||||||||||||||||
The Series A Preferred Stock does not fall in to any of the above categories as an obligation. The preferred stock is convertible into a fixed number of common shares (one for one). Therefore, the preferred stock has been classified as equity. | |||||||||||||||||||||||||||
Fair Values of Financial Instruments | |||||||||||||||||||||||||||
FASB ASC Topic 820, “Fair Value Measurements and Disclosures,” defines FV, establishes a three-level valuation hierarchy for disclosures of FV measurement and enhances disclosure requirements for FV measures. The carrying amounts reported in the balance sheets for receivables and current liabilities each qualify as financial instruments and are reasonable estimates of FV because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels are defined 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 liabilities, 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 FV. | |||||||||||||||||||||||||||
Concentration of Risk | |||||||||||||||||||||||||||
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and equivalents and accounts receivable. As of December 31, 2014, approximately $824,108 of the Company’s cash and equivalents held by financial institutions, including $104,285 from discontinued operation, was insured, and the remaining balance of $18,587,487, including $55,919 from discontinued operation, was not insured. With respect to accounts receivable, the Company generally does not require collateral and does not have an allowance for doubtful accounts. | |||||||||||||||||||||||||||
Before acquired AHFL and its Taiwan subsidiaries on August 24, 2012, the company has two principle insurance companies for which it acts as insurance agent. After acquired AHFL and its Taiwan subsidiaries, the Company has several principal insurance companies, for which it acts as an insurance agent. For the six months ended December 31, 2013 and for the years ended December 31, 2014 and June 30, 2013 and 2012, the Company’s revenues from sale of insurance policies underwritten by these companies were: | |||||||||||||||||||||||||||
Year ended December 31, 2014 | Six months ended December 31, 2013 | Year ended June 30, 2013 | Year ended June 30, 2012 | ||||||||||||||||||||||||
Amount | % of Total Revenue | Amount | % of Total Revenue | Amount | % of Total Revenue | Amount | % of | ||||||||||||||||||||
Total | |||||||||||||||||||||||||||
Revenue | |||||||||||||||||||||||||||
Farglory Life Insurance Co.,Ltd. | $ | 13,493,644 | 28 | % | $ | 6,590,776 | 28 | % | $ | 12,118,121 | 32 | % | |||||||||||||||
Fubon Life Insurance Co.,Ltd. | 7,621,634 | 16 | % | 4,894,133 | 21 | % | 9,245,419 | 24 | % | ||||||||||||||||||
AIA International Ltd.,Taiwan | 6,938,013 | 15 | % | 3,424,615 | 14 | % | |||||||||||||||||||||
TransGlobe Life Insurance Inc. | 5,584,124 | 12 | % | 3,983,464 | 17 | % | |||||||||||||||||||||
Sunshine | $ | 830,954 | 26 | % | |||||||||||||||||||||||
Taiping | 751,126 | 24 | % | ||||||||||||||||||||||||
As of December 31, 2014 and 2013, and June 30, 2013 and 2012, the Company’s accounts receivable from these companies were: | |||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | June 30, 2013 | June 30, 2012 | ||||||||||||||||||||||||
% of Total Accounts | % of Total Accounts | % of Total Accounts | % of | ||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||
Accounts | |||||||||||||||||||||||||||
Amount | Receivable | Amount | Receivable | Amount | Receivable | Amount | Receivable | ||||||||||||||||||||
Farglory Life Insurance Co.,Ltd. | $ | 2,150,294 | 28 | % | $ | 1,967,886 | 27 | % | $ | 1,501,865 | 36 | % | |||||||||||||||
AIA International Ltd.,Taiwan | 1,098,879 | 14 | % | ||||||||||||||||||||||||
Fubon Life Insurance Co.,Ltd. | 963,118 | 12 | % | 1,390,208 | 19 | % | 673,710 | 16 | % | ||||||||||||||||||
TransGlobe Life Insurance Inc. | 735,755 | 10 | % | ||||||||||||||||||||||||
Sunshine | $ | 73,812 | 40 | % | |||||||||||||||||||||||
Taiping | 21,618 | 12 | % | ||||||||||||||||||||||||
The Company's operations are in the PRC and Taiwan. Accordingly, the Company's business, financial condition and results of operations may be influenced by the political, economic, foreign currency exchange and legal environments in the PRC and Taiwan, and by the state of each economy. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC and Taiwan, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, and rates and methods of taxation, among other things. | |||||||||||||||||||||||||||
Operating Leases | |||||||||||||||||||||||||||
Leases, where substantially all the rewards and risks of ownership of assets remain with the leasing company, that do not meet the capitalization criteria of FASB ASC Topic 840 “Leases,” are accounted for as operating leases. Rentals under operating leases are expensed on the straight-line basis over the lease term. | |||||||||||||||||||||||||||
Segment Reporting | |||||||||||||||||||||||||||
The Company follows FASB ASC Topic 280, “Segment Reporting” for its segment reporting. In the past periods, the Company managed and reviewed its business as two operating segments. The business of CU WOFE and CAE in PRC was managed and reviewed as PRC segment. The business of AHFL and its subsidiaries in Taiwan was managed and reviewed as Taiwan segment. | |||||||||||||||||||||||||||
ASC-280-10-50-12 states, a public entity shall report separately information about an operating segment that meets any of the following quantitative thresholds: | |||||||||||||||||||||||||||
a. Its reported revenue, including both sales to external customers and intersegment sales or transfers, is 10 percent or more of the combined revenue, internal and external, of all operating segments. | |||||||||||||||||||||||||||
b. The absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount, of either: | |||||||||||||||||||||||||||
1. The combined reported profit of all operating segments that did not report a loss | |||||||||||||||||||||||||||
2. The combined reported loss of all operating segments that did report a loss. | |||||||||||||||||||||||||||
c. Its assets are 10 percent or more of the combined assets of all operating segments. | |||||||||||||||||||||||||||
The PRC segment does not meet any of the above quantitative thresholds and Taiwan segment is substantially all of the reported consolidated amounts. Therefore, we are not reporting these two segments separately. Note 21 disclose revenues from the two segments. | |||||||||||||||||||||||||||
Contingencies | |||||||||||||||||||||||||||
Certain conditions may exist as of the date the financial statements are issued, which could result in a loss to the Company which will be resolved when one or more future events occur or fail to occur. The Company’s management assesses such contingent liabilities, and such assessment inherently involves judgment. In assessing loss contingencies arising from legal proceedings pending against the Company or unasserted claims that may rise from such proceedings, the Company’s management evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought. | |||||||||||||||||||||||||||
If the assessment of a contingency indicates it is probable a material loss will be incurred and the amount of the loss can be reasonably estimated, then the estimated loss is accrued in the Company’s financial statements. If the assessment indicates a material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material would be disclosed. | |||||||||||||||||||||||||||
Statement of Cash Flows | |||||||||||||||||||||||||||
In accordance with FASB ASC Topic 230, “Statement of Cash Flows,” cash flows from the Company's operations are calculated based upon the local currencies and an average exchange rate is used. As a result, amounts related to assets and liabilities reported on the consolidated statements of cash flows may not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Cash from operating, investing and financing activities is net of the effect of acquisition described i n Note 10. | |||||||||||||||||||||||||||
Variable Interest Entities | |||||||||||||||||||||||||||
The Company follows FASB ASC Subtopic 810-10-05-8”, “Consolidation of VIEs,” states that a VIE is a corporation, partnership, limited liability corporation, trust or any other legal structure used to conduct activities or hold assets that either (1) has an insufficient amount of equity to carry out its principal activities without additional subordinated financial support, (2) has a group of equity owners that are unable to make significant decisions about its activities, or (3) has a group of equity owners that do not have the obligation to absorb losses or the right to receive returns generated by its operations. | |||||||||||||||||||||||||||
Due to the PRC legal restrictions on foreign ownership and investment in insurance agency and brokerage businesses in China, especially those on qualifications as well as capital requirement of the investors, the Company operates its insurance agency and brokerage business in PRC primarily through Anhou, a VIE owned by seven individual shareholders, and two subsidiaries of Anhou. | |||||||||||||||||||||||||||
On January 17, 2011, CU WFOE and Anhou and Anhou Original Shareholders (as defined in Note1) entered into the Old VIE Agreements (as defined in Note1) which included: | |||||||||||||||||||||||||||
¨ | Exclusive Business Cooperation Agreement (“EBCA” or the “Agreement”) through which: (1) CU WFOE has the right to provide Anhou with complete technical support, business support and related consulting services during the term of this Agreement; (2) Anhou agrees to accept all the consultations and services provided by CU WFOE. Anhou further agrees that unless with CU WFOE's prior written consent, during the term of this Agreement, Anhou shall not directly or indirectly accept the same or any similar consultations and/or services provided by any third party and shall not establish similar cooperation relationship with any third party regarding the matters contemplated by this Agreement; (3) Anhou shall pay CU WFOE fees equal to 90% of the net income of Anhou, and the payment is quarterly, and (4) CU WFOE retains all exclusive and proprietary rights and interests in all rights, ownership, interests and intellectual properties arising out of or created during the performance of this Agreement. | ||||||||||||||||||||||||||
The term of this Agreement is 10 years. Subsequent to the execution of this Agreement, both CU WFOE and Anhou shall review this Agreement on an annual basis to determine whether to amend or supplement the provisions. The term of this Agreement may be extended if confirmed in writing by CU WFOE prior to the expiration thereof. The extended term shall be determined by CU WFOE, and Anhou shall accept such extended term unconditionally. | |||||||||||||||||||||||||||
During the term of this Agreement, unless CU WFOE commits gross negligence, or a fraudulent act, against Anhou, Anhou may not terminate this Agreement. Nevertheless, CU WFOE shall have the right to terminate this Agreement upon giving 30 days prior written notice to Anhou at any time. | |||||||||||||||||||||||||||
¨ | Power of Attorney under which each shareholder of Anhou executed an irrevocable power of attorney to authorize CU WFOE to act on behalf of the shareholder to exercise all of his/her rights as equity owner of Anhou, including without limitation to: (1) attend shareholders' meetings of Anhou; (2) exercise all the shareholder's rights and shareholder's voting rights that he/she is entitled to under the laws of the PRC and Anhou's Articles of Association, including but not limited to the sale or transfer or pledge or disposition of the shareholder’s shareholding in part or in whole, and (3) designate and appoint on behalf of the shareholder the legal representative, the director, supervisor, the chief executive officer and other senior management members of Anhou. | ||||||||||||||||||||||||||
¨ | Option Agreement under which the shareholders of Anhou irrevocably granted CU WFOE or its designated person an exclusive and irrevocable right to acquire, at any time, the entire portion of Anhou’s equity interest held by each shareholder of Anhou, or any portion thereof, to the extent permitted by PRC law. The purchase price for the shareholders’ equity interests in Anhou shall be the lower of (i) RMB1 ($0.16) and (ii) the lowest price allowed by relevant laws and regulations. If appraisal is required by the laws of PRC when CU WFOE exercises the Equity Interest Purchase Option (as defined in the Option Agreement), the Parties shall negotiate in good faith and based on the appraisal result make necessary adjustment to the Equity Interest Purchase Price (as defined in the Option Agreement) so that it complies with any and all then applicable laws of the PRC. The term of this Agreement is 10 years, and may be renewed at CU WFOE's election. | ||||||||||||||||||||||||||
¨ | Share Pledge Agreement under which the owners of Anhou pledged their equity interests in Anhou to CU WFOE to guarantee Anhou’s performance of its obligations under the EBCA. Pursuant to this agreement, if Anhou fails to pay the exclusive consulting or service fees in accordance with the EBCA, CU WFOE shall have the right, but not the obligation, to dispose of the owners of Anhou’s equity interests in Anhou. This Agreement shall be continuously valid until all payments due under the EBCA have been repaid by Anhou or its subsidiaries. | ||||||||||||||||||||||||||
As a result of the capital increase and the share transfer described in Note1, on October 24, 2013, CU WFOE, Anhou and Anhou Existing Shareholders (as defined in Note1) entered into a series of variable interest agreements (the “VIE Agreements”), including Power of Attorneys, Exclusive Option Agreements, Share Pledge Agreements, in the same form as the previous Old VIE Agreements, other than the change of shareholder names and their respective shareholdings. The Old VIE Agreements were terminated by and among CU WFOE, Anhou and Anhou Original Shareholders on the same date. The EBCA executed by and between CU WFOE and Anhou on January 17, 2011 remains in full effect. | |||||||||||||||||||||||||||
As a result of the agreements among CU WFOE, the shareholders of Anhou and Anhou, CU WFOE is considered the primary beneficiary of Anhou, CU WFOE has effective control over Anhou; therefore, CU WFOE consolidates the results of operations of Anhou and its subsidiaries. Accordingly the results of operations, assets and liabilities of Anhou and its subsidiaries are consolidated in the Company’s financial statements from the earliest period presented. However, the VIE is monitored by the Company to determine if any events have occurred that could cause its primary beneficiary status to change. These events include: | |||||||||||||||||||||||||||
a. | The legal entity's governing documents or contractual arrangements are changed in a manner that changes the characteristics or adequacy of the legal entity's equity investment at risk. | ||||||||||||||||||||||||||
b. | The equity investment or some part thereof is returned to the equity investors, and other interests become exposed to expected losses of the legal entity. | ||||||||||||||||||||||||||
c. | The legal entity undertakes additional activities or acquires additional assets, beyond those anticipated at the later of the inception of the entity or the latest reconsideration event, that increase the entity's expected losses. | ||||||||||||||||||||||||||
d. | The legal entity receives an additional equity investment that is at risk, or the legal entity curtails or modifies its activities in a way that decreases its expected losses. | ||||||||||||||||||||||||||
The Company reviews the VIE’s status on an annual basis. For the six months ended December 31, 2013, and the years ended December 31, 2014, June 30, 2013 and 2012, no event including a-d above took place that would change the Company’s primary beneficiary status. | |||||||||||||||||||||||||||
Reclassifications | |||||||||||||||||||||||||||
Certain prior period amounts were reclassified to conform to the manner of presentation in the current period. These reclassifications had no effect on the net income (loss) or stockholders’ equity. | |||||||||||||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||||||||||||
The FASB has issued ASU No. 2014-09, Revenue from Contracts with Customers. This ASU supersedes the revenue recognition requirements in Accounting Standards Codification 605 - Revenue Recognition and most industry-specific guidance throughout the Codification. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This ASU is effective on January 1, 2017 and should be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the ASU recognized at the date of initial application. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and results of operations. | |||||||||||||||||||||||||||
The FASB has issued ASU No. 2014-12, Compensation - Stock Compensation (ASC Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. This ASU requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered.. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company's consolidated financial position and results of operations. | |||||||||||||||||||||||||||
In March 2013, the FASB issued guidance on a parent’s accounting for the cumulative translation adjustment upon derecognition of a subsidiary or group of assets within a foreign entity. This new guidance requires the parent release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The new guidance will be effective for us beginning July 1, 2014. We do not anticipate a material impact on our financial statements upon adoption. | |||||||||||||||||||||||||||
In July 2013, the FASB issued ASU 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” This standard provides guidance regarding when an unrecognized tax benefit should be classified as a reduction to a deferred tax asset or when it should be classified as a liability in the consolidated balance sheet. The new guidance will be effective for us beginning July 1, 2014. Early adoption and retrospective application is permitted. The Company is evaluating the potential impact of this adoption on our consolidated financial statements. | |||||||||||||||||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, (“ASU 2-14-09”). ASU 2-14-09 amends revenue recognition principles and provides a single set of criteria for revenue recognition among all industries. This new standard provides a five step framework whereby revenue is recognized when promised goods or services are transferred to a customer at amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard also requires enhanced disclosure pertaining to revenue recognition in both interim and annual periods. ASU 2014-09 is effective for interim and annual periods beginning after December 15, 2016. We are currently evaluating the potential impact that ASU 2014-09 may have on our financial position and results of operations. | |||||||||||||||||||||||||||
CASH_AND_EQUIVALENTS
CASH AND EQUIVALENTS | 12 Months Ended |
Dec. 31, 2014 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents Disclosure [Text Block] | NOTE 3 – CASH AND EQUIVALENTS |
As of December 31, 2014 and 2013, our cash and equivalents primarily consisted of cash and certificates of deposits with original maturities of three months or less. The carrying amounts reported on the consolidated balance sheets for cash and cash equivalents approximate fair value. | |
MARKETABLE_SECURITIES
MARKETABLE SECURITIES | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||
Cash, Cash Equivalents, and Marketable Securities [Text Block] | NOTE 4 - MARKETABLE SECURITIES | ||||||||||
Marketable securities represent investment in equity securities of listed stocks and funds, which are classified as Level 1 securities as follows: | |||||||||||
December 31, 2014 | |||||||||||
Cost or | Gross | ||||||||||
Amortized | Unrealized | Total | |||||||||
Cost | Gains (Losses) | Fair Value | |||||||||
Level 1 securities: | |||||||||||
Stocks | $ | 31,210 | $ | -2,932 | $ | 28,278 | |||||
Funds | 2,532,475 | -123,747 | 2,408,728 | ||||||||
$ | 2,563,685 | $ | -126,679 | $ | 2,437,006 | ||||||
December 31, 2013 | |||||||||||
Cost or | Gross | ||||||||||
Amortized | Unrealized | Total | |||||||||
Cost | Gains (Losses) | Fair Value | |||||||||
Level 1 securities: | |||||||||||
Stocks | $ | 29,453 | $ | 1,757 | $ | 31,210 | |||||
Funds | 2,531,317 | 1,158 | 2,532,475 | ||||||||
$ | 2,560,770 | $ | 2,915 | $ | 2,563,685 | ||||||
OTHER_CURRENT_ASSETS
OTHER CURRENT ASSETS | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||
Other Current Assets [Text Block] | NOTE 5 – OTHER CURRENT ASSETS | |||||||
The Company’s other current assets consisted of the following as of December 31, 2014 and 2013: | ||||||||
December 31, 2014 | December 31, 2013 | |||||||
Prepaid rent and rent deposit | $ | 191,995 | $ | 121,361 | ||||
Refundable business tax | 912 | 40 | ||||||
Investment in current deposit | - | 1,630,789 | ||||||
Other | 207,252 | 393,127 | ||||||
Total other current assets | $ | 400,159 | $ | 2,145,317 | ||||
Refundable business tax, similar to VAT in mainland China, represents business tax prepaid by Risk Management and AHFL, expected to be refunded by Taiwan tax bureau. Investment in current deposit is a semiannual investment product that Anhou purchased in November 2013. Others mainly represent advances to staff and other miscellaneous receivables. | ||||||||
PROPERTY_PLANT_AND_EQUIPMENT_N
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | NOTE 6– PROPERTY, PLANT AND EQUIPMENT, NET | |||||||
Property, plant and equipment consisted of the following, as of December 31, 2014 and 2013: | ||||||||
December 31, 2014 | December 31,2013 | |||||||
Office Equipment | $ | 1,026,426 | $ | 1,204,386 | ||||
Office Furniture | 139,755 | 111,699 | ||||||
Leasehold improvements | 478,154 | 469,102 | ||||||
Transportation equipment | 89,240 | 89,598 | ||||||
Other equipment | 64,002 | 51,421 | ||||||
Total | 1,797,577 | 1,926,206 | ||||||
Less: accumulated depreciation | -735,815 | -885,017 | ||||||
Total property, plant and equipment, net | $ | 1,061,762 | $ | 1,041,189 | ||||
INTANGIBLE_ASSETS
INTANGIBLE ASSETS | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 7 – INTANGIBLE ASSETS | |||||||
As of December 31, 2014 and 2013, the Company’s intangible assets consisted the following: | ||||||||
December 31, 2014 | December 31, 2013 | |||||||
Software | $ | 462,903 | $ | 402,096 | ||||
Less accumulated amortization | -191,947 | -93,829 | ||||||
Total other current assets | $ | 270,956 | $ | 308,267 | ||||
Estimated future intangible amortization as of December 31, 2014 is as follows: | ||||||||
Years ending December 31, | Amount | |||||||
2015 | $ | 113,831 | ||||||
2016 | 75,936 | |||||||
2017 | 22,802 | |||||||
2018 | 22,802 | |||||||
2019 | 17,254 | |||||||
Thereafter | 18,331 | |||||||
Total | $ | 270,956 | ||||||
LONGTERM_INVESTMENT
LONG-TERM INVESTMENT | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Long Term Investment [Abstract] | |||||||||||
Long Term Investment [Text Block] | NOTE 8 – LONG-TERM INVESTMENT | ||||||||||
According to Taiwan regulatory requirements, Law Broker is required to maintain a minimum of NT$3,000,000 ($94,508) in a separate account. Law Broker chose to buy government bonds and has the right to trade such bonds with other debt or equity instruments. The amount, however, was defined as restricted asset. | |||||||||||
December 31, 2014 | |||||||||||
Cost or | Gross | ||||||||||
Amortized | Unrealized | Total | |||||||||
Cost | Gains (Losses) | Fair Value | |||||||||
Government bonds | 95,405 | -77 | 95,328 | ||||||||
$ | 95,405 | $ | -77 | $ | 95,328 | ||||||
December 31, 2013 | |||||||||||
Cost or | Gross | ||||||||||
Amortized | Unrealized | Total | |||||||||
Cost | Gains (Losses) | Fair Value | |||||||||
Government bonds | 101,599 | 696 | 102,295 | ||||||||
$ | 101,599 | $ | 696 | $ | 102,295 | ||||||
OTHER_ASSETS
OTHER ASSETS | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||
Other Assets Disclosure [Text Block] | NOTE 9–OTHER ASSETS | |||||||
The Company’s other assets consisted of the following as of December 31, 2014 and 2013: | ||||||||
December 31, 2014 | December 31, 2013 | |||||||
Restricted cash | $ | 162,906 | $ | 163,559 | ||||
Rental deposits | 384,670 | 405,935 | ||||||
Other | 39,946 | 17,809 | ||||||
Total other assets | $ | 587,522 | $ | 587,303 | ||||
Restricted cash is a deposit in bank by the Company in conformity with Provisions of the Supervision and Administration of Specialized Insurance Agencies, and cannot be withdrawn without the permission of the regulatory commission. Deposits include long-term leasing deposits. | ||||||||
ACQUISITION_AND_GOODWILL
ACQUISITION AND GOODWILL | 12 Months Ended |
Dec. 31, 2014 | |
Acquisition And Goodwill [Abstract] | |
Acquisition And Goodwill Disclosure [Text Block] | NOTE 10 – ACQUISITION AND GOODWILL |
On September 6, 2010, Henan Anhou paid RMB532,622 ($78,318) to acquire 100% of Sichuan Kangzhuang from its previous shareholders. Sichuan Kangzhuang then had net liabilities of RMB219,123 ($32,134). Goodwill of RMB751,745 ($110,452) was therefore recorded. Sichuan Kangzhuang has been suffering net loss since the acquisition, indicating the impairment of goodwill. As of December 31, 2013, the carrying value of the goodwill was fully impaired. Accordingly, we recorded a goodwill impairment loss of $122,250. | |
On April 23, 2014, AHFL entered into a capital increase agreement (“Agreement”) with Wong Chun Kwok Johnny (“Mr Wong”), the owner of Prime Financial Asia Ltd (PFAL) which is a re-insurance broker company resided in Hong Kong. Upon the Agreement, Mr Wong would increase PFAL’s capital contribution from HK$500,000 to HK$1,470,000, and AHFL would contribute HK$1,530,000, approximately $197,335, to PFAL’s capital contribution. Upon the completion of capital increase by both parties, Mr. Wong and AHFL would own 49% and 51% of PFAL’s equity interest, respectively. The transaction was completed on April 30, 2014. | |
The FV of the net identifiable assets of PFAL at acquisition date was $324,871, and 51% of which was $165,684. The Company recorded $31,651 excess of purchase price over the FV of assets acquired and liabilities assumed acquired as goodwill. No intangible assets were identified as of the acquisition date. As of December 31, 2014, there were no any indications of the impairment of the goodwill. | |
TAXES_PAYABLE
TAXES PAYABLE | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Taxes Payable Disclosure [Text Block] | NOTE 11 – TAXES PAYABLE | |||||||
The Company’s taxes payable consisted of the following as of December 31, 2014 and 2013: | ||||||||
December 31, 2014 | December 31, 2013 | |||||||
PRC Tax | $ | 172,765 | $ | 152,105 | ||||
Taiwan Tax | 747,142 | 346,336 | ||||||
Total tax payable | $ | 919,907 | $ | 498,441 | ||||
PRC tax represents income tax and other taxes accrued according to PRC tax law by our subsidiaries and CAE in the PRC. Taiwan tax represents income tax and other taxes accrued according to Taiwan tax law by our subsidiaries and branches in Taiwan. Both will be settled within the next twelve months according to the respective tax laws. | ||||||||
UNEARNED_REVENUE
UNEARNED REVENUE | 12 Months Ended |
Dec. 31, 2014 | |
Unearned Revenue [Abstract] | |
Unearned Revenue [Text Block] | NOTE 12 – UNEARNED REVENUE |
On June 10, 2013, AHFL entered into a Strategic Alliance Agreement (the “Alliance Agreement”) with AIA International Limited Taiwan Branch (“AIATW”). The purpose of the Alliance Agreement is to promote life insurance products provided by AIATW within Taiwan by insurance agencies or brokerage companies affiliated with AHFL or CUIS. The term of the Alliance Agreement is from April 15, 2013 to August 31, 2018. Pursuance to the terms of the Alliance Agreement, AIATW paid AHFL the Execution Fee of $8,326,700 (NT$250,000,000, including the tax of NT$11,904,762), which is to be recorded as revenue upon fulfilling sales targets and the 13-month persistency ratio, as defined, over the next five years. The Execution Fee may be required to be recalculated if certain performance targets are not met by AHFL. On September 30, 2014, AHFL entered into a Strategic Alliance Supplemental Agreement (the “Supplemental Agreement”) with AIATW. In the Supplemental Agreement, the performance targets and the provision about refunding the Execution Fee when the performance targets are not met were revised. In the meantime, two parties agreed that the Alliance Agreement would be terminated when AHFL’s ownership in Law Enterprise or Law Enterprise’s ownership in Law Broker changed by 30% or above. The term of the Alliance Agreement is changed to the period from June 1, 2013 through December 31, 2020. | |
As of December 31, 2013, the Company booked $1,586,038 as short-term liability since we expected to record this amount as revenue within the next twelve months. The remaining balance of $6,344,152 was recorded as long-term liability (Note 14). According to the revised agreement, as of December 31, 2014, the Company did not book any short-term unearned revenue since we did not expect to achieve the sales target within the next twelve months, and the Company booked the whole $7,500,645 as long-term liability. For the year ended December 31, 2014, no income was recorded under the Alliance Agreement as performance targets were not met. | |
OTHER_CURRENT_LIABILITIES
OTHER CURRENT LIABILITIES | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Liabilities Disclosure [Abstract] | ||||||||
Other Liabilities Disclosure [Text Block] | NOTE 13 – OTHER CURRENT LIABILITIES | |||||||
Other current liabilities are as follows, as of December 31, 2014 and 2013: | ||||||||
December 31, 2014 | December 31, 2013 | |||||||
Commissions payable to sub agents | $ | 5,311,365 | $ | 4,972,338 | ||||
Salary payable to administrative staff | 144,158 | 75,934 | ||||||
Due to previous shareholders of Jiangsu Law | - | 84,238 | ||||||
Due to previous shareholders of AHFL | 750,910 | - | ||||||
Withholding employee personal tax | 259,458 | 326,652 | ||||||
Accrued expenses | 2,844,166 | 3,053,140 | ||||||
Other | 223,532 | 119,337 | ||||||
Total other current liabilities | $ | 9,533,589 | $ | 8,631,639 | ||||
Commissions payable to sub-agents and salaries payable to administrative staff are usually settled within 12 months. The amount due to previous shareholders of AHFL is the remaining balance of the acquisition cost described in Note 1. Due to previous shareholders of Jiangsu Law is the remaining balance of the acquisition cost. The acquisition agreement between the parties has not specified the exact time for payment of the acquisition price or imposed any interest for late payment. Withholding employee personal tax will be paid to local tax bureau within one month. Accrued expenses are mainly for operating expenses payable within the credit terms provided by suppliers. Other mainly represents short term payable for expenses such as training and travelling. | ||||||||
LONGTERM_LIABILITIES
LONG-TERM LIABILITIES | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Long-term Debt [Text Block] | NOTE 14 – LONG-TERM LIABILITIES | |||||||
Long-term liabilities are as follows as of December 31, 2014 and 2013: | ||||||||
December 31, 2014 | December 31, 2013 | |||||||
Long-term other payable | $ | - | $ | 750,910 | ||||
Unearned revenue | 7,500,645 | 6,344,152 | ||||||
Total other long-term liabilities | $ | 7,500,645 | $ | 7,095,062 | ||||
Long-term other payable as of December 31, 2013 is the result of the Company’s acquisition of AHFL as described in Note 1. It’s the cash payment to be made to the selling shareholders of AHFL. On March 14, 2013, the payment deadline was extended to March 31, 2015. As of December 31, 2014, it was reclassified as short-term liabilities. | ||||||||
As described in Note 12, the Company recorded $7,500,645 (NT$238,095,238, net of tax) received from AIATW as unearned revenue. According to the revised agreement, as of December 31, 2014, the Company did not book any short-term unearned revenue since we did not expect to achieve the sales target within the next twelve months, and the Company booked the whole $7,500,645 as long-term liability. As of December 31, 2013, the Company booked $6,344,152 as long-term liability for the same reason. | ||||||||
STATUTORY_RESERVES
STATUTORY RESERVES | 12 Months Ended |
Dec. 31, 2014 | |
Statutory Reserves [Abstract] | |
Statutory Reserves Disclosure [Text Block] | NOTE 15 – STATUTORY RESERVES |
According to Taiwan accounting rules and corporation regulations, the company’s subsidiaries in Taiwan must appropriate 10% of net income to statutory reserves until the accumulated reserve hits registered capital. The reserve can be converted into share capital by issuing new shares to existing shareholders in proportion to their shareholding or by increasing the par value of the shares currently held by them, with a limitation that the reserve left is not less than 25% of the registered capital after converting to share capital. | |
Pursuant to the PRC regulations, the Company’s Consolidated Affiliated Entities (“CAE”) are required to transfer 10% of their net profit, as determined under the PRC accounting regulations, to a Statutory Common Reserve Fund (“Reserve Fund”). Appropriation to the Reserve Fund may cease when the fund equals 50% of a company’s registered capital or when a company has accumulated losses. The transfer to this reserve must be made before distribution of dividends to shareholders. The Company’s CAE did not appropriate such reserve as they have accumulated losses. | |
INCOME_TAX
INCOME TAX | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Tax Disclosure [Abstract] | ||||||||||
Income Taxes Excluding Taxes Payable Disclosure [Text Block] | NOTE 16– INCOME TAX | |||||||||
CU WFOE and the VIEs in the PRC are governed by the Income Tax Law of the PRC concerning the private-run enterprises, which are generally subject to tax at 25% on income reported in the statutory financial statements after appropriated adjustments. Except for Jiangsu Law, according to the requirement of local tax authorities, the tax basis is deemed as 10% of total revenue, instead of net income. The tax rate of Jiangsu Law is also 25%. | ||||||||||
According to Chinese tax regulations by the Chinese tax authorities effective January 1, 2008, commissions paid to sub-agents in excess of 5% of the commission revenue were not tax deductible. According to China State Administration of Taxation #15 Announcement in 2012, effective from 2011, such commissions can be fully deducted. Also, such tax payable over three years can be reversed. Therefore, in the years ended June 30, 2013 and 2012, Anhou and Sichuan Kangzhuang reversed the tax payable of $274,489 and $283,880, respectively, which was accrued before 2011 tax year for such deductible commission and credited as income tax benefit, which is stated as “change in tax status” on the income tax rate reconciliation tables below. | ||||||||||
The Company’s subsidiaries in Taiwan are governed by the Income Tax Law of Taiwan, and are generally subject to tax at 17% on income reported in the statutory financial statements after appropriate adjustments. In the meanwhile, Income Tax Law of Taiwan provides that a company is taxed at additional 10% on any undistributed earnings to its shareholders. In June 2014, Law Enterprises decided not to distribute its earnings accumulated as of December 31, 2013. Accordingly, NT$18,903,349, approximately $626,406, of additional tax was accrued. In December 31, 2014, Law Enterprises decided not to distribute its earnings in 2014. Accordingly, additional NT$9,200,945, approximately $303,589, of income tax was accrued as of December 31, 2014, which is stated as “income tax on undistributed earnings” on the income tax rate reconciliation tables below. | ||||||||||
The following table reconciles the US statutory rates to the Company’s effective tax rate for the six months ended December 31, 2013 and the years ended December 31, 2014 and June 30, 2013 and 2012: | ||||||||||
Year ended | Six months ended | Year ended | Year ended | |||||||
December 31, 2014 | December 31, 2013 | June 30, 2013 | June 30, 2012 | |||||||
US statutory rate | 34 | % | 34 | % | 34 | % | 34 | % | ||
Tax rate difference | -33 | % | -2 | % | -8 | % | -9 | % | ||
Tax base difference | 1 | % | -1 | % | - | % | 3 | % | ||
Change in tax status | - | % | - | % | -3 | % | 76 | % | ||
Income tax on undistributed earnings | 57 | % | -6 | % | - | % | - | % | ||
Loss in subsidiaries | 45 | % | -38 | % | 2 | % | -33 | % | ||
Write-off residual value of fixed assets | 1 | % | -5 | % | - | % | - | % | ||
Impairment of goodwill | - | % | -3 | % | - | % | - | % | ||
Gain on bargain purchase of subsidiary | - | % | - | % | -19 | % | - | % | ||
Un-deductible and non-taxable items | -2 | % | 6 | % | 2 | % | 1 | % | ||
Tax per financial statements | 103 | % | -15 | % | 8 | % | 72 | % | ||
Un-deductible and non-taxable items mainly represent un-deductible expenses according to PRC tax laws and the non-taxable tax income or loss. | ||||||||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Related Party Transactions [Abstract] | ||||||||
Related Party Transactions Disclosure [Text Block] | NOTE 17 - RELATED PARTY TRANSACTIONS | |||||||
Due to related parties | ||||||||
The related parties listed below loaned money to the Company for working capital. Due to related parties consisted of the following as of December 31, 2013 and 2014: | ||||||||
December 31, 2014 | December 31, 2013 | |||||||
Due to Mr. Mao (Principal Shareholder of the Company) | $ | 214,165 | $ | 117,471 | ||||
Due to Mr. Zhu (Legal Representative of Jiangsu Law) | 2,255 | 2,265 | ||||||
Due to Mrs. Lee (Director of CUIS) | 315,027 | 35,062 | ||||||
Total | $ | 531,447 | $ | 154,798 | ||||
On December 23, 2014, AHFL entered into a Loan Agreement (the “Loan Agreement”) with Lee Shu-Fen (“Ms. Lee”), the Series A Director of the Company. Pursuant to the Loan Agreement, Mrs. Lee provided a loan in the amount of $314,644 (NTD10 million) (the “Loan”) to AHFL. The term for the Loan is from December 23, 2014 to December 22, 2015 with a fixed interest rate at 1.5%. The principal amount of the Loan together with the accrued interest shall be paid in one lump sum before December 22, 2015. | ||||||||
COMMITMENTS
COMMITMENTS | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments Disclosure [Text Block] | NOTE 18– COMMITMENTS | ||||
Operating Leases | |||||
The Company has operating leases for its offices. Rental expenses for the six months ended December 31, 2013 and for the years ended December 31, 2014, and June 30, 2013 and 2012 were $754,029, $1,668,571, $1,410,945 and $889,080, respectively. At December 31, 2014, total future minimum annual lease payments under operating leases were as follows, by years: | |||||
Twelve months ended December 31, 2015 | $ | 1,719,838 | |||
Twelve months ended December 31, 2016 | 937,485 | ||||
Twelve months ended December 31, 2017 | 410,553 | ||||
Thereafter | 314,034 | ||||
Total | $ | 3,381,910 | |||
DISCONTINUED_OPERATION
DISCONTINUED OPERATION | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | NOTE 19 - DISCONTINUED OPERATION | |||||||
In the fourth quarter of 2014, the shareholders of the Law Management and Law Agent made the resolution to dissolve Law Management and Law Agent, respectively, because those companies have not been in operation. The dissolution of Law Management and Law Agent was approved by the Taiwan (R.O.C) Government on November 26, 2014 and on January 13, 2015, respectively. Abide by the law in Taiwan, the liquidator was appointed by the shareholders of the Law Management and Law Agent and the liquidator shall complete the liquidation process no later than six months from the appointment date. Both Law Management and Law Agent are under the process of liquidation as of now. | ||||||||
Law Management and Law Agent were acquired by the Company together with their parent Company, Law Enterprise, on August 24, 2012. The combined Total Assets and Total Liabilities of Law Management and Law Agent as of December 31, 2014 and 2013 and June 30, 2013 are as follows: | ||||||||
As of December 31, 2014 | As of December 31, 2013 | As of June 30, 2013 | ||||||
Total Assets (including cash) | 334,512 | 203,597 | 277,582 | |||||
Total Liabilities | 255,954 | 117,240 | 121,134 | |||||
The combined Revenue, Net Loss and EPS of Law Management and Law Agent for the six months ended December 31, 2013 and the years ended December 31, 2014 and June 30, 2013 are as follows: | ||||||||
Year Ended December 31, 2014 | Six Months Ended December 31, 2013 | Year Ended June 30, 2013 | ||||||
Revenue | - | - | - | |||||
Net Loss | -3,270 | -132,229 | -4,173 | |||||
EPS | - | - | - | |||||
FINANCIAL_RISK_MANAGEMENT_AND_
FINANCIAL RISK MANAGEMENT AND FAIR VALUE | 12 Months Ended | ||
Dec. 31, 2014 | |||
Financial Risk Management and Fair Values [Abstract] | |||
Financial Risk Management and Fair Values Disclosure [Text Block] | NOTE 20 – FINANCIAL RISK MANAGEMENT AND FAIR VALUE | ||
The Company has exposure to credit, liquidity and market risks which arise in the normal course of its business. This note presents information about the Company's exposure to each of these risks, the Company's objectives, policies and processes for measuring and managing risk, and the Company's management of capital. Further quantitative disclosures are included throughout these consolidated financial statements. | |||
The Board of Directors (“BOD”) has overall responsibility for the establishment and oversight of the Company's risk management framework. The Company's risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company's activities. The Company, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations. | |||
The Company's BOD oversees how management monitors compliance with the Company's risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. | |||
(a) | Credit risk | ||
The Company's credit risk arises principally from accounts and other receivables, pledged deposits and cash and equivalents. Management has a credit policy in place and monitors exposures to these credit risks on an ongoing basis. The carrying amounts of trade and other receivables, pledged deposits and cash and cash equivalents represent the Company's maximum exposure to credit risks. Accounts receivable are due within 30 days from the date of billing. | |||
(b) | Liquidity risk | ||
The BOD of the Company is responsible for the overall cash management and raising borrowings to cover expected cash demands. The Company regularly monitors its liquidity requirements, to ensure it maintains sufficient reserves of cash and readily realizable marketable securities and adequate committed lines of funding from major financial institutions to meet its liquidity requirements in the short and longer term. | |||
(c) | Currency risk | ||
The functional currency for the subsidiaries in Taiwan is NT$ and the functional currency for the subsidiaries and VIEs in PRC is RMB. The financial statements of the Company are in USD. The fluctuation of NT$ and RMB will affect our operating results expressed in USD. The Company reviews its foreign currency exposures. The management does not consider its present foreign exchange risk to be significant. | |||
GEOGRAPHICAL_REVENUE
GEOGRAPHICAL REVENUE | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||
Segment Reporting Disclosure [Text Block] | NOTE 21 – GEOGRAPHICAL REVENUE | |||||||||||||
The geographical distribution of China United’s revenue for the six months ended December 31, 2013 and for the years ended December 31, 2014, and June 30, 2013 and 2012 were as follows: | ||||||||||||||
Year ended | Year ended | |||||||||||||
Geographical Areas | Year ended December 31, 2014 | Six months ended December 31, 2013 | June 30, 2013 | June 30, 2012 | ||||||||||
PRC | $ | 3,060,765 | $ | 1,488,110 | $ | 2,775,431 | $ | 3,153,776 | ||||||
Taiwan | 44,389,197 | 22,201,000 | 35,066,815 | |||||||||||
$ | 47,449,962 | $ | 23,689,110 | $ | 37,842,246 | $ | 3,153,776 | |||||||
LOAN_TO_SHAREHOLDERS
LOAN TO SHAREHOLDERS | 12 Months Ended | |
Dec. 31, 2014 | ||
Loan To Shareholders [Abstract] | ||
Loan To Shareholders [Text Block] | NOTE 22 – LOAN TO SHAREHOLDERS | |
Anhou Registered Capital Increase | ||
On April 27, 2013, China Insurance Regulatory Commission mandated any insurance agency have a minimum registered capital requirement of RMB50 million (approximately $ 8 million). At the time, Anhou, a professional insurance agency with a PRC nationwide license, had a registered capital of RMB10 million (approximately $ 1.6 million). To better implement its expansion strategies, Anhou intends to increase its registered capital to RMB50 million so that it can set up new branches in any province beyond its current operations in Mainland China. | ||
Due to certain restriction on direct foreign investment in insurance agency business under current PRC legal requirements, Anhou sought investments from certain Investor Borrowers who in turn needed funds through individual loans. | ||
On June 9, 2013, AHFL entered into a Loan Agreement with ZLI Holdings, whereby AHFL agreed to provide a loan to ZLI Holdings of RMB40 million ($6,389,925). The term for such loan is 10 years which may be extended upon the agreement of the parties. The loan was remitted to ZLI Holdings on August 30, 2013. In August 2013, ZLI Holdings entered into three loan agreements (“Investor Loan Agreements”) with the following independent third parties, collectively, the Investor Borrowers: | ||
1 | Able Capital Holding Co., Ltd., a limited liability company established and registered in Hong Kong (RMB29,500,000 ($4,712,570)) | |
2 | Mr. Chen Li, PRC citizen (RMB3,000,000 ($479,244)) | |
3 | Ms. Yue Jing, PRC citizen (RMB7,500,000 ($1,198,111)) | |
The term for the above loans is 10 years which may be extended upon the agreement of the parties. Pursuant to the Investor Loan Agreements, each of the Investor Borrowers entered into a binding VIE agreement with Anhou, the WFOE and certain existing shareholders of Anhou. The proceeds received from the said loans by the Investor Borrowers were solely used to increase the registered capital of Anhou. As of December 31, 2014 and 2013, the loan was offset against equity. | ||
On October 20, 2013, the investor borrowers increased Anhou’s registered capital by RMB 40 million ($6,389,925). | ||
PREFERRED_STOCK
PREFERRED STOCK | 12 Months Ended |
Dec. 31, 2014 | |
Stockholders Equity Note [Abstract] | |
Preferred Stock [Text Block] | NOTE 23 – PREFERRED STOCK |
The Company is authorized to issue 10,000,000 shares of preferred stock, $.00001 par value. We currently have 1,000,000 shares of Series A Preferred Stock (“Series A Stock”) outstanding as of December 31, 2014. The Series A Stock has the following rights and preferences: | |
Voting Rights. Except as otherwise provided by law, the Series A Stock and the common stock vote together on all matters submitted to a vote of our shareholders. Each holder of Series A Stock is entitled to ten votes for each share of Series A Stock held of record by such holder as of the applicable record date on any matter that is submitted to a vote of the stockholders of the Registrant. | |
Series A Board Designee and Board Restriction. In addition to the voting rights disclosed above, the holders of the Series A Stock shall be entitled to appoint one director (the “Series A Director”). No Board resolution regarding certain material Company actions can be made without the affirmative vote of the Series A Director. | |
Dividends. The holders of Series A Stock are entitled to share equally with the holders of common stock, on a per share basis, in such dividends and other distributions of cash, property or shares of stock of the Registrant as may be declared by the Board. | |
Liquidation. In the event of a voluntary or involuntary liquidation, dissolution, distribution of assets or winding up of the Registrant, the holders of common stock and the holders of Series A Stock shall be entitled to share equally on a per share basis, in all assets of the Registrant of whatever kind available for distribution. | |
Conversion Rights. The holders of the Series A Stock have the right to convert their shares thereof at any time into shares of the Registrant's common stock. Each share of Series A Stock is convertible into one share of common stock. | |
If the Registrant in any manner subdivides or combines the outstanding shares of common stock, the outstanding shares of the Series A Stock will be subdivided or combined in the same manner. | |
Business Combinations. In any merger, consolidation, reorganization or other business combination, the consideration received per share by the holders the common stock and the holders of the Series A Stock in such merger, consolidation, reorganization or other business combination shall be identical; provided however, that if such consideration consists, in whole or in part, of certain equity interests, the rights and limitations of such equity interests may differ to the extent that the rights and limitations of the common stock and the Series A Stock differ. | |
Fully Paid and Nonassessable. All of our outstanding shares of preferred stock are fully paid and nonassessable. | |
The fair value of the 1,000,000 preferred shares was $225,000 at the time of the preferred share issuance. The Fair value of the common shares was $200,000 at the time of the preferred share issuance based on its market price at the date of the transaction. Therefore, the incremental value of the preferred shares was $25,000. This amount may be deemed compensation. | |
From the qualitative aspect, the Company notes the following regarding this deemed compensation: | |
Does not violate any debt or other contract covenants; | |
Does not change any earnings or EPS trends; | |
Does not affect any previous earnings or EPS guidance; | |
Does not affect any segment or class of revenue; | |
Does not affect any regulatory compliance matters; | |
Does not affect cash compensation of management; | |
Does not involve concealment of an unlawful act | |
Additional preferred stock may be authorized and issued in the future in connection with acquisitions, financings, or other matters, as the Board of Directors deems appropriate. In the event that the Registrant issues any shares of preferred stock, a certificate of designation containing the rights, privileges and limitations of this series of preferred stock will be filed with the Secretary of State of the State of Delaware. The effect of this preferred stock designation power is that our Board of Directors alone, subject to Federal securities laws, applicable blue sky laws, and Delaware law, may be able to authorize the issuance of preferred stock which could have the effect of delaying, deferring, or preventing a change in control without further action by our stockholders, and may adversely affect the voting and other rights of the holders of our common stock. | |
PRO_FORMA_CONSOLIDATED_STATEME
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||
Condensed Income Statements [Text Block] | NOTE 24 – PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
The basis of pro forma consolidated statements of income of the Company is as if the Acquisition Agreement for AHFL was signed on July 1, 2011 and 2012, and AHFL’s acquisition of Law Enterprise happened on the same date. The pro forma consolidated statements of income were derived from the statement of income for the years ended June 30, 2013 and 2012 of AHFL and CUIS. The Company recorded the excess of purchase price over the fair value of assets and liabilities acquired as bargain gain on purchase in the pro forma consolidated statements of income. | ||||||||
Years Ended June 30, | ||||||||
2012 | 2013 | |||||||
Revenues | $ | 40,966,268 | $ | 44,111,682 | ||||
Cost of revenue | 28,485,785 | 28,529,338 | ||||||
Gross profit | 12,480,485 | 15,582,344 | ||||||
Operating expenses: | ||||||||
Selling | 1,046,457 | 962,958 | ||||||
General and administrative | 8,056,531 | 10,172,209 | ||||||
Income (loss) from operations | 3,377,497 | 4,447,177 | ||||||
Other income (expenses) | ||||||||
Interest income | 8,399 | 83,163 | ||||||
Gain on acquisition of subsidiary | 5,442,523 | 5,280,042 | ||||||
Other - net | 477,523 | 511,609 | ||||||
Total other income | 5,928,445 | 5,874,814 | ||||||
Income before income taxes | 9,305,942 | 10,321,991 | ||||||
Income tax expense (benefit) | 578,067 | 873,343 | ||||||
Net income | 8,727,875 | 9,448,648 | ||||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 25 - SUBSEQUENT EVENTS |
Subsequent Acquisition | |
On February 13, 2015, CUIS and AHFL entered into an acquisition agreement (the “Acquisition Agreement”) with Mr. LI CHWAN HAU, the selling shareholder of Genius Holdings Financial Limited (the “Selling Shareholder”), a company with limited liability incorporated under the laws of British Virgin Islands (“GHFL”), to issue 352,166 fully paid and non-assessable shares of AHFL Common Stock (“AHFL Shares”) together with an granted put option for 352,166 shares of common stock of CUIS (“Put Option”), in exchange for 704,333 shares of common stock of GHFL, being all of the issued and outstanding capital stock of GHFL. The Put Option may be exercised within six months of the closing date of the acquisition and the Selling Shareholder would exchange the AHFL Shares as consideration for the exercise of the Put Option. Subsequent to the acquisition, GHFL will become a wholly-owned subsidiary of CUIS. GHFL holds 100% issued and outstanding shares of Genius Investment Consultant Co., Ltd. (“Taiwan Genius”), a limited company incorporated under the laws of Taiwan, which in turn holds approximately 15% issued and outstanding shares of Genius Insurance Broker Co., Ltd. (“Genius Broker”), a company limited by shares incorporated under the laws of Taiwan. Both GHFL and Taiwan Genius have no substantive business operation other than the holding of shares of its subsidiary. Genius Broker is primarily engaged in broker business across Taiwan. On February 13, 2015, the acquisition was completed, the Selling Shareholder transferred 100% shares in GHFL to AHFL. The Put Option has not been exercised by the Selling Shareholder as of March 15, 2015. | |
Loan Agreement and Repayment of Loans | |
In January 2015, the principal amount of loans previously disclosed together with the accrued interests under the loan agreements entered into by and between AHFL with Ms. Lee Shu-Fen on December 23, 2014 was fully repaid by AHFL. | |
Discontinued Operation | |
As stated in Note 19, in the fourth quarter of 2014, the shareholders of the Law Management and Law Agent made the resolution to dissolve Law Management and Law Agent, respectively, because those companies have not been in operation. The dissolution of Law Agent was approved by the Taiwan (R.O.C) Government on January 13, 2015. Abide by the law in Taiwan, the liquidator was appointed by the shareholders of the Law Management and Law Agent and the liquidator shall complete the liquidation process no later than six months from the appointment date. Both Law Management and Law Agent are under the process of liquidation as of now. | |
The Company has evaluated all other subsequent events through the date these consolidated financial statements were issued, and determine that there were no other subsequent events or transactions, except as stated above, that require recognition or disclosures in the consolidated financial statements. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||
Consolidation, Policy [Policy Text Block] | Principles of Consolidation | ||||||||||||||||||||||||||
The accompanying consolidated financial statements include the accounts of China United and its subsidiaries as shown in the organization structure in Note 1 above. All significant intercompany transactions and balances were eliminated in consolidation. | |||||||||||||||||||||||||||
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation | ||||||||||||||||||||||||||
The Company’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). | |||||||||||||||||||||||||||
Noncontrolling Interest [Policy Text Block] | Noncontrolling Interest | ||||||||||||||||||||||||||
Noncontrolling interest consists of direct and indirect equity interest in AHFL and subsidiaries arising from the acquisition of AHFL by CUIS. | |||||||||||||||||||||||||||
The Company follows Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, “Consolidation,” which governs the accounting for and reporting of noncontrolling interests (“NCIs”) in partially owned consolidated subsidiaries and the loss of control of subsidiaries. Certain provisions of this standard indicate, among other things, that NCIs be treated as a separate component of equity, not as a liability, that increases and decreases in the parent’s ownership interest that leave control intact be treated as equity transactions rather than as step acquisitions or dilution gains or losses, and that losses of a partially owned consolidated subsidiary be allocated to the NCI even when such allocation might result in a deficit balance. This standard also required changes to certain presentation and disclosure requirements. | |||||||||||||||||||||||||||
The net income (loss) attributed to the NCI is separately designated in the accompanying statements of operations and other comprehensive income (loss). Losses attributable to the NCI in a subsidiary may exceed the NCI’s interests in the subsidiary’s equity. The excess attributable to the NCI is attributed to those interests. The NCI shall continue to be attributed its share of losses even if that attribution results in a deficit NCI balance. | |||||||||||||||||||||||||||
Use of Estimates, Policy [Policy Text Block] | Use of Estimates | ||||||||||||||||||||||||||
The preparation of the consolidated financial statements in conformity with US 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 dates of the consolidated financial statements and the amounts of revenues and expenses during the reporting periods. | |||||||||||||||||||||||||||
Management makes these estimates using the best information available when they are made; however, actual results could differ materially from those estimates. | |||||||||||||||||||||||||||
Risk and Uncertainties Policy [Policy Text Block] | Risks and Uncertainties | ||||||||||||||||||||||||||
The Company is subject to risks from, among other things, competition associated with the industry in general, other risks associated with financing, liquidity requirements, rapidly changing customer requirements, limited operating history, and foreign currency exchange rates. | |||||||||||||||||||||||||||
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income | ||||||||||||||||||||||||||
The Company follows FASB ASC Topic 220 (“ASC 220”), “Reporting Comprehensive Income,” which establishes standards for the reporting and display of comprehensive income, its components and accumulated balances in a full set of general purpose financial statements. ASC 220 defines comprehensive income as net income and all changes to stockholders' equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders, including adjustments to minimum pension liabilities, accumulated foreign currency translation, and unrealized gains or losses on marketable securities. | |||||||||||||||||||||||||||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Transactions | ||||||||||||||||||||||||||
The functional currency for our subsidiaries in Taiwan is New Taiwan Dollar (“NT$”) and for the VIEs in China is Renminbi (“RMB”). | |||||||||||||||||||||||||||
The consolidated financial statements were translated into United States Dollars (“USD” or “$”) in accordance with FASB ASC Topic 830 “Foreign Currency Transaction.” According to the standard, all assets and liabilities were translated at the exchange rate on the balance sheet dates; stockholders’ equity is translated at historical rates and statement of operations items are translated at the weighted average exchange rate for the period. The resulting translation adjustments are reported under other comprehensive income in accordance with ASC 220. Gains and losses resulting from the translation of foreign currency transactions are reflected in the consolidated statements of operations and other comprehensive income (loss). | |||||||||||||||||||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Equivalents | ||||||||||||||||||||||||||
For Statements of Cash Flows purposes, the Company considers cash on hand, bank deposits, and other highly-liquid investments with maturities of three months or less when purchased, such as commercial paper, to be cash and equivalents. | |||||||||||||||||||||||||||
The Company maintains cash with banks in the PRC and Taiwan. Cash accounts with the bank institutions in the PRC are not insured or otherwise protected. Should any bank holding cash become insolvent, or if the Company is otherwise unable to withdraw funds, the Company would lose the cash with that bank; however, the Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. In Taiwan, a depositor has up to NT$3,000,000 insured in a bank. In Hong Kong, a depositor has up to HKD$500,000 insured in a bank. In the United States, the standard insurance amount is $250,000 per depositor in a bank under the FDIC’s general deposit insurance rules. | |||||||||||||||||||||||||||
Marketable Securities, Policy [Policy Text Block] | Marketable Securities | ||||||||||||||||||||||||||
The Company invests part of its excess cash in equity securities, money market funds and government bonds. Such investments are included in “Marketable securities” in the accompanying consolidated balance sheets. Held-to-maturity represents securities the Company has intends and has the ability to hold to maturity; trading securities represent securities bought and held primarily for sale in the near-term to generate income on short-term price differences; available-for-sale represents securities not classified as held-to-maturity or trading securities. | |||||||||||||||||||||||||||
The Company classifies the equity security investments as trading securities and reports them at FV with changes in FV recorded in “Other Income” in the statements of operations and other comprehensive income (loss). The Company classifies bonds as available-for-sale and reports them at FV with unrealized gains and losses included in “Accumulated other comprehensive income (loss)” on the equity section of the balance sheets. | |||||||||||||||||||||||||||
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Accounts Receivable, net | ||||||||||||||||||||||||||
The Company reviews its accounts receivable regularly to determine if a bad debt allowance is necessary at each year-end. Management reviews the composition of accounts receivable and analyzes the age of receivables outstanding, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the necessity of making such allowance. No allowance was deemed necessary as of December 31, 2014 and 2013. | |||||||||||||||||||||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment, net | ||||||||||||||||||||||||||
Property, plant and equipment are recorded at cost. Gain or loss on disposal of property, plant and equipment is recorded in other income at disposal. Expenditures for betterments, renewals and additions are capitalized. Repairs and maintenance expenses are expensed as incurred. | |||||||||||||||||||||||||||
Depreciation for financial reporting purposes is provided using the straight-line method over a useful life of three to ten years with salvage value of 10% to 25%. Property, plant and equipment mainly consist of office furniture, computers, vehicles and leasehold improvements. | |||||||||||||||||||||||||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets | ||||||||||||||||||||||||||
In accordance with ASC Topic 360, “Property, Plant and Equipment,” the Company reviews the carrying values of long-lived assets whenever facts and circumstances indicate an asset may be impaired. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to future net undiscounted cash flows expected to be generated by it. If an asset is considered impaired, the impairment recognized is measured by the amount by which the carrying amount of the asset exceeds its FV. Assets to be disposed of are reported at the lower of the carrying amount or FV, less cost of disposal. No impairment was recognized for the years ended December 31, 2014, June 30, 2013 and 2012, and six months ended December 31, 2013. | |||||||||||||||||||||||||||
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill | ||||||||||||||||||||||||||
Goodwill arose from the acquisition of PFAL and Sichuan Kangzhuang (Note 10). Goodwill is the excess of the cost of an acquisition over the FV of the net assets acquired. Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate it might be impaired, using the prescribed two-step process under US GAAP. The first step screens for potential impairment of goodwill to determine if the FV of the reporting unit is less than its carrying value, while the second step measures the amount of goodwill impairment, if any, by comparing the implied FV of goodwill to its carrying value. Sichuan Kangzhuang has been suffering net loss since the acquisition, indicating the impairment of goodwill. As of December 31, 2013, the carrying value of the goodwill was fully impaired. Accordingly, we recorded a goodwill impairment loss of $122,250 in the six months ended December 31, 2013. As of December 31, 2014, there were no any indications of the impairment of goodwill that arose from the acquisition of PFAL. | |||||||||||||||||||||||||||
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition | ||||||||||||||||||||||||||
The Company’s revenue is from insurance agency and brokerage services. The Company, through its subsidiaries, sells insurance products to customers, and obtains commissions from the respective insurance companies according to the terms of each insurance company service agreement. The Company recognizes revenue when the following have occurred: persuasive evidence of an agreement between the insurance company and insured exists, services were provided, the fee for such services is fixed or determinable and collectability of the fee is reasonably assured. Insurance agency services are considered complete, and revenue is recognized, when an insurance policy becomes effective. The customers are entitled to a 10-day cancellation period from the date of issuance of the policies, in which customers can cancel the contract without any fees. The Company is notified of such cancellations by the insurance carriers. For the six months ended December 31, 2013 and for the fiscal years ended December 31, 2014 and June 30, 2013 and 2012, policy cancellations were $22,553, $84,476, $12,809 and nil, respectively. | |||||||||||||||||||||||||||
The Company pays commissions to its sub-agents when an insurance product is sold by the sub-agent. The Company recognizes commission revenue on a gross basis. The commissions paid by the Company to its sub-agents are recorded as cost of revenue. | |||||||||||||||||||||||||||
Income Tax, Policy [Policy Text Block] | Income Taxes | ||||||||||||||||||||||||||
The Company utilizes ASC Topic 740, “Income Taxes”, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events included in the financial statements or tax returns. Under this method, deferred taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each year-end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. | |||||||||||||||||||||||||||
When tax returns are filed, it is likely some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more-likely-than-not the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits is classified as interest expense and penalties are classified in general and administrative expenses in the statements of income and other comprehensive income (loss). As of December 31, 2014 and 2013, the Company did not have any uncertain tax positions. | |||||||||||||||||||||||||||
The Company was not subjected to income tax examinations by taxing authorities during the current or past fiscal years. In connection with the acquisition of China entities, the Company is required to comply with the information return reporting requirements such as Foreign Bank Accounts Reporting (FBAR), Information Return on Foreign-Owned U.S. Corporation or U.S. Corporation owning certain foreign corporation (Under Section 6038A and 6038C of Internal Revenue Code, etc.). The Company failed to comply with such requirements for the years of 2010, 2011 and 2012. The potential penalty is estimated to be $370,000 in the event of a tax audit, which has been accrued in the six months ended December 31, 2013, and it has not been paid during the year ended December 31, 2014. | |||||||||||||||||||||||||||
Preferred Stock [Policy Text Block] | Preferred Stock | ||||||||||||||||||||||||||
The Company is authorized to issue 10,000,000 shares of preferred stock, $.00001 par value. We currently have 1,000,000 shares of Series A Preferred Stock (“Series A Stock”) outstanding as of December 31, 2014, which was classified as equity. | |||||||||||||||||||||||||||
Section 480-10-25 requires that an issuer classify a financial instrument that is within its scope as a liability (or an asset in some circumstances) because that financial instrument embodies an obligation of the issuer. Section 480-10-05-2 classifies all of the following as examples of an obligation: | |||||||||||||||||||||||||||
a. An entity incurs a conditional obligation to transfer assets by issuing (writing) a put option that would, if exercised, require the entity to repurchase its equity shares by physical settlement. (Further, an instrument that requires the issuer to settle its obligation by issuing another instrument [for example, a note payable in cash] ultimately requires settlement by a transfer of assets.) | |||||||||||||||||||||||||||
b. An entity incurs a conditional obligation to transfer assets by issuing a similar contract that requires or could require net cash settlement. | |||||||||||||||||||||||||||
c. An entity incurs a conditional obligation to issue its equity shares by issuing a similar contract that requires net share settlement. | |||||||||||||||||||||||||||
The Series A Preferred Stock does not fall in to any of the above categories as an obligation. The preferred stock is convertible into a fixed number of common shares (one for one). Therefore, the preferred stock has been classified as equity. | |||||||||||||||||||||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Values of Financial Instruments | ||||||||||||||||||||||||||
FASB ASC Topic 820, “Fair Value Measurements and Disclosures,” defines FV, establishes a three-level valuation hierarchy for disclosures of FV measurement and enhances disclosure requirements for FV measures. The carrying amounts reported in the balance sheets for receivables and current liabilities each qualify as financial instruments and are reasonable estimates of FV because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels are defined 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 liabilities, 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 FV. | |||||||||||||||||||||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Risk | ||||||||||||||||||||||||||
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and equivalents and accounts receivable. As of December 31, 2014, approximately $824,108 of the Company’s cash and equivalents held by financial institutions, including $104,285 from discontinued operation, was insured, and the remaining balance of $18,587,487, including $55,919 from discontinued operation, was not insured. With respect to accounts receivable, the Company generally does not require collateral and does not have an allowance for doubtful accounts. | |||||||||||||||||||||||||||
Before acquired AHFL and its Taiwan subsidiaries on August 24, 2012, the company has two principle insurance companies for which it acts as insurance agent. After acquired AHFL and its Taiwan subsidiaries, the Company has several principal insurance companies, for which it acts as an insurance agent. For the six months ended December 31, 2013 and for the years ended December 31, 2014 and June 30, 2013 and 2012, the Company’s revenues from sale of insurance policies underwritten by these companies were: | |||||||||||||||||||||||||||
Year ended December 31, 2014 | Six months ended December 31, 2013 | Year ended June 30, 2013 | Year ended June 30, 2012 | ||||||||||||||||||||||||
Amount | % of Total Revenue | Amount | % of Total Revenue | Amount | % of Total Revenue | Amount | % of | ||||||||||||||||||||
Total | |||||||||||||||||||||||||||
Revenue | |||||||||||||||||||||||||||
Farglory Life Insurance Co.,Ltd. | $ | 13,493,644 | 28 | % | $ | 6,590,776 | 28 | % | $ | 12,118,121 | 32 | % | |||||||||||||||
Fubon Life Insurance Co.,Ltd. | 7,621,634 | 16 | % | 4,894,133 | 21 | % | 9,245,419 | 24 | % | ||||||||||||||||||
AIA International Ltd.,Taiwan | 6,938,013 | 15 | % | 3,424,615 | 14 | % | |||||||||||||||||||||
TransGlobe Life Insurance Inc. | 5,584,124 | 12 | % | 3,983,464 | 17 | % | |||||||||||||||||||||
Sunshine | $ | 830,954 | 26 | % | |||||||||||||||||||||||
Taiping | 751,126 | 24 | % | ||||||||||||||||||||||||
As of December 31, 2014 and 2013, and June 30, 2013 and 2012, the Company’s accounts receivable from these companies were: | |||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | June 30, 2013 | June 30, 2012 | ||||||||||||||||||||||||
% of Total Accounts | % of Total Accounts | % of Total Accounts | % of | ||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||
Accounts | |||||||||||||||||||||||||||
Amount | Receivable | Amount | Receivable | Amount | Receivable | Amount | Receivable | ||||||||||||||||||||
Farglory Life Insurance Co.,Ltd. | $ | 2,150,294 | 28 | % | $ | 1,967,886 | 27 | % | $ | 1,501,865 | 36 | % | |||||||||||||||
AIA International Ltd.,Taiwan | 1,098,879 | 14 | % | ||||||||||||||||||||||||
Fubon Life Insurance Co.,Ltd. | 963,118 | 12 | % | 1,390,208 | 19 | % | 673,710 | 16 | % | ||||||||||||||||||
TransGlobe Life Insurance Inc. | 735,755 | 10 | % | ||||||||||||||||||||||||
Sunshine | $ | 73,812 | 40 | % | |||||||||||||||||||||||
Taiping | 21,618 | 12 | % | ||||||||||||||||||||||||
The Company's operations are in the PRC and Taiwan. Accordingly, the Company's business, financial condition and results of operations may be influenced by the political, economic, foreign currency exchange and legal environments in the PRC and Taiwan, and by the state of each economy. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC and Taiwan, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, and rates and methods of taxation, among other things. | |||||||||||||||||||||||||||
Lease, Policy [Policy Text Block] | Operating Leases | ||||||||||||||||||||||||||
Leases, where substantially all the rewards and risks of ownership of assets remain with the leasing company, that do not meet the capitalization criteria of FASB ASC Topic 840 “Leases,” are accounted for as operating leases. Rentals under operating leases are expensed on the straight-line basis over the lease term. | |||||||||||||||||||||||||||
Segment Reporting, Policy [Policy Text Block] | Segment Reporting | ||||||||||||||||||||||||||
The Company follows FASB ASC Topic 280, “Segment Reporting” for its segment reporting. In the past periods, the Company managed and reviewed its business as two operating segments. The business of CU WOFE and CAE in PRC was managed and reviewed as PRC segment. The business of AHFL and its subsidiaries in Taiwan was managed and reviewed as Taiwan segment. | |||||||||||||||||||||||||||
ASC-280-10-50-12 states, a public entity shall report separately information about an operating segment that meets any of the following quantitative thresholds: | |||||||||||||||||||||||||||
a. Its reported revenue, including both sales to external customers and intersegment sales or transfers, is 10 percent or more of the combined revenue, internal and external, of all operating segments. | |||||||||||||||||||||||||||
b. The absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount, of either: | |||||||||||||||||||||||||||
1. The combined reported profit of all operating segments that did not report a loss | |||||||||||||||||||||||||||
2. The combined reported loss of all operating segments that did report a loss. | |||||||||||||||||||||||||||
c. Its assets are 10 percent or more of the combined assets of all operating segments. | |||||||||||||||||||||||||||
The PRC segment does not meet any of the above quantitative thresholds and Taiwan segment is substantially all of the reported consolidated amounts. Therefore, we are not reporting these two segments separately. Note 21 disclose revenues from the two segments. | |||||||||||||||||||||||||||
Commitments and Contingencies, Policy [Policy Text Block] | Contingencies | ||||||||||||||||||||||||||
Certain conditions may exist as of the date the financial statements are issued, which could result in a loss to the Company which will be resolved when one or more future events occur or fail to occur. The Company’s management assesses such contingent liabilities, and such assessment inherently involves judgment. In assessing loss contingencies arising from legal proceedings pending against the Company or unasserted claims that may rise from such proceedings, the Company’s management evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought. | |||||||||||||||||||||||||||
If the assessment of a contingency indicates it is probable a material loss will be incurred and the amount of the loss can be reasonably estimated, then the estimated loss is accrued in the Company’s financial statements. If the assessment indicates a material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material would be disclosed. | |||||||||||||||||||||||||||
Cash Flows Policy [Policy Text Block] | Statement of Cash Flows | ||||||||||||||||||||||||||
In accordance with FASB ASC Topic 230, “Statement of Cash Flows,” cash flows from the Company's operations are calculated based upon the local currencies and an average exchange rate is used. As a result, amounts related to assets and liabilities reported on the consolidated statements of cash flows may not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Cash from operating, investing and financing activities is net of the effect of acquisition described i n Note 10. | |||||||||||||||||||||||||||
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | Variable Interest Entities | ||||||||||||||||||||||||||
The Company follows FASB ASC Subtopic 810-10-05-8”, “Consolidation of VIEs,” states that a VIE is a corporation, partnership, limited liability corporation, trust or any other legal structure used to conduct activities or hold assets that either (1) has an insufficient amount of equity to carry out its principal activities without additional subordinated financial support, (2) has a group of equity owners that are unable to make significant decisions about its activities, or (3) has a group of equity owners that do not have the obligation to absorb losses or the right to receive returns generated by its operations. | |||||||||||||||||||||||||||
Due to the PRC legal restrictions on foreign ownership and investment in insurance agency and brokerage businesses in China, especially those on qualifications as well as capital requirement of the investors, the Company operates its insurance agency and brokerage business in PRC primarily through Anhou, a VIE owned by seven individual shareholders, and two subsidiaries of Anhou. | |||||||||||||||||||||||||||
On January 17, 2011, CU WFOE and Anhou and Anhou Original Shareholders (as defined in Note1) entered into the Old VIE Agreements (as defined in Note1) which included: | |||||||||||||||||||||||||||
¨ | Exclusive Business Cooperation Agreement (“EBCA” or the “Agreement”) through which: (1) CU WFOE has the right to provide Anhou with complete technical support, business support and related consulting services during the term of this Agreement; (2) Anhou agrees to accept all the consultations and services provided by CU WFOE. Anhou further agrees that unless with CU WFOE's prior written consent, during the term of this Agreement, Anhou shall not directly or indirectly accept the same or any similar consultations and/or services provided by any third party and shall not establish similar cooperation relationship with any third party regarding the matters contemplated by this Agreement; (3) Anhou shall pay CU WFOE fees equal to 90% of the net income of Anhou, and the payment is quarterly, and (4) CU WFOE retains all exclusive and proprietary rights and interests in all rights, ownership, interests and intellectual properties arising out of or created during the performance of this Agreement. | ||||||||||||||||||||||||||
The term of this Agreement is 10 years. Subsequent to the execution of this Agreement, both CU WFOE and Anhou shall review this Agreement on an annual basis to determine whether to amend or supplement the provisions. The term of this Agreement may be extended if confirmed in writing by CU WFOE prior to the expiration thereof. The extended term shall be determined by CU WFOE, and Anhou shall accept such extended term unconditionally. | |||||||||||||||||||||||||||
During the term of this Agreement, unless CU WFOE commits gross negligence, or a fraudulent act, against Anhou, Anhou may not terminate this Agreement. Nevertheless, CU WFOE shall have the right to terminate this Agreement upon giving 30 days prior written notice to Anhou at any time. | |||||||||||||||||||||||||||
¨ | Power of Attorney under which each shareholder of Anhou executed an irrevocable power of attorney to authorize CU WFOE to act on behalf of the shareholder to exercise all of his/her rights as equity owner of Anhou, including without limitation to: (1) attend shareholders' meetings of Anhou; (2) exercise all the shareholder's rights and shareholder's voting rights that he/she is entitled to under the laws of the PRC and Anhou's Articles of Association, including but not limited to the sale or transfer or pledge or disposition of the shareholder’s shareholding in part or in whole, and (3) designate and appoint on behalf of the shareholder the legal representative, the director, supervisor, the chief executive officer and other senior management members of Anhou. | ||||||||||||||||||||||||||
¨ | Option Agreement under which the shareholders of Anhou irrevocably granted CU WFOE or its designated person an exclusive and irrevocable right to acquire, at any time, the entire portion of Anhou’s equity interest held by each shareholder of Anhou, or any portion thereof, to the extent permitted by PRC law. The purchase price for the shareholders’ equity interests in Anhou shall be the lower of (i) RMB1 ($0.16) and (ii) the lowest price allowed by relevant laws and regulations. If appraisal is required by the laws of PRC when CU WFOE exercises the Equity Interest Purchase Option (as defined in the Option Agreement), the Parties shall negotiate in good faith and based on the appraisal result make necessary adjustment to the Equity Interest Purchase Price (as defined in the Option Agreement) so that it complies with any and all then applicable laws of the PRC. The term of this Agreement is 10 years, and may be renewed at CU WFOE's election. | ||||||||||||||||||||||||||
¨ | Share Pledge Agreement under which the owners of Anhou pledged their equity interests in Anhou to CU WFOE to guarantee Anhou’s performance of its obligations under the EBCA. Pursuant to this agreement, if Anhou fails to pay the exclusive consulting or service fees in accordance with the EBCA, CU WFOE shall have the right, but not the obligation, to dispose of the owners of Anhou’s equity interests in Anhou. This Agreement shall be continuously valid until all payments due under the EBCA have been repaid by Anhou or its subsidiaries. | ||||||||||||||||||||||||||
As a result of the capital increase and the share transfer described in Note1, on October 24, 2013, CU WFOE, Anhou and Anhou Existing Shareholders (as defined in Note1) entered into a series of variable interest agreements (the “VIE Agreements”), including Power of Attorneys, Exclusive Option Agreements, Share Pledge Agreements, in the same form as the previous Old VIE Agreements, other than the change of shareholder names and their respective shareholdings. The Old VIE Agreements were terminated by and among CU WFOE, Anhou and Anhou Original Shareholders on the same date. The EBCA executed by and between CU WFOE and Anhou on January 17, 2011 remains in full effect. | |||||||||||||||||||||||||||
As a result of the agreements among CU WFOE, the shareholders of Anhou and Anhou, CU WFOE is considered the primary beneficiary of Anhou, CU WFOE has effective control over Anhou; therefore, CU WFOE consolidates the results of operations of Anhou and its subsidiaries. Accordingly the results of operations, assets and liabilities of Anhou and its subsidiaries are consolidated in the Company’s financial statements from the earliest period presented. However, the VIE is monitored by the Company to determine if any events have occurred that could cause its primary beneficiary status to change. These events include: | |||||||||||||||||||||||||||
a. | The legal entity's governing documents or contractual arrangements are changed in a manner that changes the characteristics or adequacy of the legal entity's equity investment at risk. | ||||||||||||||||||||||||||
b. | The equity investment or some part thereof is returned to the equity investors, and other interests become exposed to expected losses of the legal entity. | ||||||||||||||||||||||||||
c. | The legal entity undertakes additional activities or acquires additional assets, beyond those anticipated at the later of the inception of the entity or the latest reconsideration event, that increase the entity's expected losses. | ||||||||||||||||||||||||||
d. | The legal entity receives an additional equity investment that is at risk, or the legal entity curtails or modifies its activities in a way that decreases its expected losses. | ||||||||||||||||||||||||||
The Company reviews the VIE’s status on an annual basis. For the six months ended December 31, 2013, and the years ended December 31, 2014, June 30, 2013 and 2012, no event including a-d above took place that would change the Company’s primary beneficiary status. | |||||||||||||||||||||||||||
Reclassification, Policy [Policy Text Block] | Reclassifications | ||||||||||||||||||||||||||
Certain prior period amounts were reclassified to conform to the manner of presentation in the current period. These reclassifications had no effect on the net income (loss) or stockholders’ equity. | |||||||||||||||||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements | ||||||||||||||||||||||||||
The FASB has issued ASU No. 2014-09, Revenue from Contracts with Customers. This ASU supersedes the revenue recognition requirements in Accounting Standards Codification 605 - Revenue Recognition and most industry-specific guidance throughout the Codification. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This ASU is effective on January 1, 2017 and should be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the ASU recognized at the date of initial application. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and results of operations. | |||||||||||||||||||||||||||
The FASB has issued ASU No. 2014-12, Compensation - Stock Compensation (ASC Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. This ASU requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered.. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company's consolidated financial position and results of operations. | |||||||||||||||||||||||||||
In March 2013, the FASB issued guidance on a parent’s accounting for the cumulative translation adjustment upon derecognition of a subsidiary or group of assets within a foreign entity. This new guidance requires the parent release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The new guidance will be effective for us beginning July 1, 2014. We do not anticipate a material impact on our financial statements upon adoption. | |||||||||||||||||||||||||||
In July 2013, the FASB issued ASU 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” This standard provides guidance regarding when an unrecognized tax benefit should be classified as a reduction to a deferred tax asset or when it should be classified as a liability in the consolidated balance sheet. The new guidance will be effective for us beginning July 1, 2014. Early adoption and retrospective application is permitted. The Company is evaluating the potential impact of this adoption on our consolidated financial statements. | |||||||||||||||||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, (“ASU 2-14-09”). ASU 2-14-09 amends revenue recognition principles and provides a single set of criteria for revenue recognition among all industries. This new standard provides a five step framework whereby revenue is recognized when promised goods or services are transferred to a customer at amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard also requires enhanced disclosure pertaining to revenue recognition in both interim and annual periods. ASU 2014-09 is effective for interim and annual periods beginning after December 15, 2016. We are currently evaluating the potential impact that ASU 2014-09 may have on our financial position and results of operations. | |||||||||||||||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||
Schedule Of Revenue From Insurance Services [Table Text Block] | For the six months ended December 31, 2013 and for the years ended December 31, 2014 and June 30, 2013 and 2012, the Company’s revenues from sale of insurance policies underwritten by these companies were: | ||||||||||||||||||||||||||
Year ended December 31, 2014 | Six months ended December 31, 2013 | Year ended June 30, 2013 | Year ended June 30, 2012 | ||||||||||||||||||||||||
Amount | % of Total Revenue | Amount | % of Total Revenue | Amount | % of Total Revenue | Amount | % of | ||||||||||||||||||||
Total | |||||||||||||||||||||||||||
Revenue | |||||||||||||||||||||||||||
Farglory Life Insurance Co.,Ltd. | $ | 13,493,644 | 28 | % | $ | 6,590,776 | 28 | % | $ | 12,118,121 | 32 | % | |||||||||||||||
Fubon Life Insurance Co.,Ltd. | 7,621,634 | 16 | % | 4,894,133 | 21 | % | 9,245,419 | 24 | % | ||||||||||||||||||
AIA International Ltd.,Taiwan | 6,938,013 | 15 | % | 3,424,615 | 14 | % | |||||||||||||||||||||
TransGlobe Life Insurance Inc. | 5,584,124 | 12 | % | 3,983,464 | 17 | % | |||||||||||||||||||||
Sunshine | $ | 830,954 | 26 | % | |||||||||||||||||||||||
Taiping | 751,126 | 24 | % | ||||||||||||||||||||||||
Schedule Of Accounts Receivable From Related Parties [Table Text Block] | As of December 31, 2014 and 2013, and June 30, 2013 and 2012, the Company’s accounts receivable from these companies were: | ||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | June 30, 2013 | June 30, 2012 | ||||||||||||||||||||||||
% of Total Accounts | % of Total Accounts | % of Total Accounts | % of | ||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||
Accounts | |||||||||||||||||||||||||||
Amount | Receivable | Amount | Receivable | Amount | Receivable | Amount | Receivable | ||||||||||||||||||||
Farglory Life Insurance Co.,Ltd. | $ | 2,150,294 | 28 | % | $ | 1,967,886 | 27 | % | $ | 1,501,865 | 36 | % | |||||||||||||||
AIA International Ltd.,Taiwan | 1,098,879 | 14 | % | ||||||||||||||||||||||||
Fubon Life Insurance Co.,Ltd. | 963,118 | 12 | % | 1,390,208 | 19 | % | 673,710 | 16 | % | ||||||||||||||||||
TransGlobe Life Insurance Inc. | 735,755 | 10 | % | ||||||||||||||||||||||||
Sunshine | $ | 73,812 | 40 | % | |||||||||||||||||||||||
Taiping | 21,618 | 12 | % | ||||||||||||||||||||||||
MARKETABLE_SECURITIES_Tables
MARKETABLE SECURITIES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||
Marketable Securities [Table Text Block] | Marketable securities represent investment in equity securities of listed stocks and funds, which are classified as Level 1 securities as follows: | ||||||||||
December 31, 2014 | |||||||||||
Cost or | Gross | ||||||||||
Amortized | Unrealized | Total | |||||||||
Cost | Gains (Losses) | Fair Value | |||||||||
Level 1 securities: | |||||||||||
Stocks | $ | 31,210 | $ | -2,932 | $ | 28,278 | |||||
Funds | 2,532,475 | -123,747 | 2,408,728 | ||||||||
$ | 2,563,685 | $ | -126,679 | $ | 2,437,006 | ||||||
December 31, 2013 | |||||||||||
Cost or | Gross | ||||||||||
Amortized | Unrealized | Total | |||||||||
Cost | Gains (Losses) | Fair Value | |||||||||
Level 1 securities: | |||||||||||
Stocks | $ | 29,453 | $ | 1,757 | $ | 31,210 | |||||
Funds | 2,531,317 | 1,158 | 2,532,475 | ||||||||
$ | 2,560,770 | $ | 2,915 | $ | 2,563,685 | ||||||
OTHER_CURRENT_ASSETS_Tables
OTHER CURRENT ASSETS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||
Schedule of Other Current Assets [Table Text Block] | The Company’s other current assets consisted of the following as of December 31, 2014 and 2013: | |||||||
December 31, 2014 | December 31, 2013 | |||||||
Prepaid rent and rent deposit | $ | 191,995 | $ | 121,361 | ||||
Refundable business tax | 912 | 40 | ||||||
Investment in current deposit | - | 1,630,789 | ||||||
Other | 207,252 | 393,127 | ||||||
Total other current assets | $ | 400,159 | $ | 2,145,317 | ||||
PROPERTY_PLANT_AND_EQUIPMENT_N1
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment [Table Text Block] | Property, plant and equipment consisted of the following, as of December 31, 2014 and 2013: | |||||||
December 31, 2014 | December 31,2013 | |||||||
Office Equipment | $ | 1,026,426 | $ | 1,204,386 | ||||
Office Furniture | 139,755 | 111,699 | ||||||
Leasehold improvements | 478,154 | 469,102 | ||||||
Transportation equipment | 89,240 | 89,598 | ||||||
Other equipment | 64,002 | 51,421 | ||||||
Total | 1,797,577 | 1,926,206 | ||||||
Less: accumulated depreciation | -735,815 | -885,017 | ||||||
Total property, plant and equipment, net | $ | 1,061,762 | $ | 1,041,189 | ||||
INTANGIBLE_ASSETS_Tables
INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | As of December 31, 2014 and 2013, the Company’s intangible assets consisted the following: | |||||||
December 31, 2014 | December 31, 2013 | |||||||
Software | $ | 462,903 | $ | 402,096 | ||||
Less accumulated amortization | -191,947 | -93,829 | ||||||
Total other current assets | $ | 270,956 | $ | 308,267 | ||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Estimated future intangible amortization as of December 31, 2014 is as follows: | |||||||
Years ending December 31, | Amount | |||||||
2015 | $ | 113,831 | ||||||
2016 | 75,936 | |||||||
2017 | 22,802 | |||||||
2018 | 22,802 | |||||||
2019 | 17,254 | |||||||
Thereafter | 18,331 | |||||||
Total | $ | 270,956 | ||||||
LONGTERM_INVESTMENT_Tables
LONG-TERM INVESTMENT (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Long Term Investment [Abstract] | |||||||||||
Schedule Of Long Term Investment [Table Text Block] | The amount, however, was defined as restricted asset. | ||||||||||
December 31, 2014 | |||||||||||
Cost or | Gross | ||||||||||
Amortized | Unrealized | Total | |||||||||
Cost | Gains (Losses) | Fair Value | |||||||||
Government bonds | 95,405 | -77 | 95,328 | ||||||||
$ | 95,405 | $ | -77 | $ | 95,328 | ||||||
December 31, 2013 | |||||||||||
Cost or | Gross | ||||||||||
Amortized | Unrealized | Total | |||||||||
Cost | Gains (Losses) | Fair Value | |||||||||
Government bonds | 101,599 | 696 | 102,295 | ||||||||
$ | 101,599 | $ | 696 | $ | 102,295 | ||||||
OTHER_ASSETS_Tables
OTHER ASSETS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||
Schedule of Other Assets [Table Text Block] | The Company’s other assets consisted of the following as of December 31, 2014 and 2013: | |||||||
December 31, 2014 | December 31, 2013 | |||||||
Restricted cash | $ | 162,906 | $ | 163,559 | ||||
Rental deposits | 384,670 | 405,935 | ||||||
Other | 39,946 | 17,809 | ||||||
Total other assets | $ | 587,522 | $ | 587,303 | ||||
TAXES_PAYABLE_Tables
TAXES PAYABLE (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Schedule Of Taxes Payable [Table Text Block] | The Company’s taxes payable consisted of the following as of December 31, 2014 and 2013: | |||||||
December 31, 2014 | December 31, 2013 | |||||||
PRC Tax | $ | 172,765 | $ | 152,105 | ||||
Taiwan Tax | 747,142 | 346,336 | ||||||
Total tax payable | $ | 919,907 | $ | 498,441 | ||||
OTHER_CURRENT_LIABILITIES_Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Liabilities Disclosure [Abstract] | ||||||||
Schedule Of Other Current Liabilities [Table Text Block] | Other current liabilities are as follows, as of December 31, 2014 and 2013: | |||||||
December 31, 2014 | December 31, 2013 | |||||||
Commissions payable to sub agents | $ | 5,311,365 | $ | 4,972,338 | ||||
Salary payable to administrative staff | 144,158 | 75,934 | ||||||
Due to previous shareholders of Jiangsu Law | - | 84,238 | ||||||
Due to previous shareholders of AHFL | 750,910 | - | ||||||
Withholding employee personal tax | 259,458 | 326,652 | ||||||
Accrued expenses | 2,844,166 | 3,053,140 | ||||||
Other | 223,532 | 119,337 | ||||||
Total other current liabilities | $ | 9,533,589 | $ | 8,631,639 | ||||
LONGTERM_LIABILITIES_Tables
LONG-TERM LIABILITIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of long term debt [Table Text Block] | Long-term liabilities are as follows as of December 31, 2014 and 2013: | |||||||
December 31, 2014 | December 31, 2013 | |||||||
Long-term other payable | $ | - | $ | 750,910 | ||||
Unearned revenue | 7,500,645 | 6,344,152 | ||||||
Total other long-term liabilities | $ | 7,500,645 | $ | 7,095,062 | ||||
INCOME_TAX_Tables
INCOME TAX (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Tax Disclosure [Abstract] | ||||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The following table reconciles the US statutory rates to the Company’s effective tax rate for the six months ended December 31, 2013 and the years ended December 31, 2014 and June 30, 2013 and 2012: | |||||||||
Year ended | Six months ended | Year ended | Year ended | |||||||
December 31, 2014 | December 31, 2013 | June 30, 2013 | June 30, 2012 | |||||||
US statutory rate | 34 | % | 34 | % | 34 | % | 34 | % | ||
Tax rate difference | -33 | % | -2 | % | -8 | % | -9 | % | ||
Tax base difference | 1 | % | -1 | % | - | % | 3 | % | ||
Change in tax status | - | % | - | % | -3 | % | 76 | % | ||
Income tax on undistributed earnings | 57 | % | -6 | % | - | % | - | % | ||
Loss in subsidiaries | 45 | % | -38 | % | 2 | % | -33 | % | ||
Write-off residual value of fixed assets | 1 | % | -5 | % | - | % | - | % | ||
Impairment of goodwill | - | % | -3 | % | - | % | - | % | ||
Gain on bargain purchase of subsidiary | - | % | - | % | -19 | % | - | % | ||
Un-deductible and non-taxable items | -2 | % | 6 | % | 2 | % | 1 | % | ||
Tax per financial statements | 103 | % | -15 | % | 8 | % | 72 | % | ||
RELATED_PARTY_TRANSACTIONS_Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Related Party Transactions [Abstract] | ||||||||
Schedule of Related Party Transactions [Table Text Block] | The related parties listed below loaned money to the Company for working capital. Due to related parties consisted of the following as of December 31, 2013 and 2014: | |||||||
December 31, 2014 | December 31, 2013 | |||||||
Due to Mr. Mao (Principal Shareholder of the Company) | $ | 214,165 | $ | 117,471 | ||||
Due to Mr. Zhu (Legal Representative of Jiangsu Law) | 2,255 | 2,265 | ||||||
Due to Mrs. Lee (Director of CUIS) | 315,027 | 35,062 | ||||||
Total | $ | 531,447 | $ | 154,798 | ||||
COMMITMENTS_Tables
COMMITMENTS (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | At December 31, 2014, total future minimum annual lease payments under operating leases were as follows, by years: | ||||
Twelve months ended December 31, 2015 | $ | 1,719,838 | |||
Twelve months ended December 31, 2016 | 937,485 | ||||
Twelve months ended December 31, 2017 | 410,553 | ||||
Thereafter | 314,034 | ||||
Total | $ | 3,381,910 | |||
DISCONTINUED_OPERATION_Tables
DISCONTINUED OPERATION (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | Law Management and Law Agent were acquired by the Company together with their parent Company, Law Enterprise, on August 24, 2012. The combined Total Assets and Total Liabilities of Law Management and Law Agent as of December 31, 2014 and 2013 and June 30, 2013 are as follows: | |||||||
As of December 31, 2014 | As of December 31, 2013 | As of June 30, 2013 | ||||||
Total Assets (including cash) | 334,512 | 203,597 | 277,582 | |||||
Total Liabilities | 255,954 | 117,240 | 121,134 | |||||
The combined Revenue, Net Loss and EPS of Law Management and Law Agent for the six months ended December 31, 2013 and the years ended December 31, 2014 and June 30, 2013 are as follows: | ||||||||
Year Ended December 31, 2014 | Six Months Ended December 31, 2013 | Year Ended June 30, 2013 | ||||||
Revenue | - | - | - | |||||
Net Loss | -3,270 | -132,229 | -4,173 | |||||
EPS | - | - | - | |||||
GEOGRAPHICAL_REVENUE_Tables
GEOGRAPHICAL REVENUE (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | The geographical distribution of China United’s revenue for the six months ended December 31, 2013 and for the years ended December 31, 2014, and June 30, 2013 and 2012 were as follows: | |||||||||||||
Year ended | Year ended | |||||||||||||
Geographical Areas | Year ended December 31, 2014 | Six months ended December 31, 2013 | June 30, 2013 | June 30, 2012 | ||||||||||
PRC | $ | 3,060,765 | $ | 1,488,110 | $ | 2,775,431 | $ | 3,153,776 | ||||||
Taiwan | 44,389,197 | 22,201,000 | 35,066,815 | |||||||||||
$ | 47,449,962 | $ | 23,689,110 | $ | 37,842,246 | $ | 3,153,776 | |||||||
PRO_FORMA_CONSOLIDATED_STATEME1
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||
Pro Forma Consolidated Statement Of Income [Table Text Block] | Years Ended June 30, | |||||||
2012 | 2013 | |||||||
Revenues | $ | 40,966,268 | $ | 44,111,682 | ||||
Cost of revenue | 28,485,785 | 28,529,338 | ||||||
Gross profit | 12,480,485 | 15,582,344 | ||||||
Operating expenses: | ||||||||
Selling | 1,046,457 | 962,958 | ||||||
General and administrative | 8,056,531 | 10,172,209 | ||||||
Income (loss) from operations | 3,377,497 | 4,447,177 | ||||||
Other income (expenses) | ||||||||
Interest income | 8,399 | 83,163 | ||||||
Gain on acquisition of subsidiary | 5,442,523 | 5,280,042 | ||||||
Other - net | 477,523 | 511,609 | ||||||
Total other income | 5,928,445 | 5,874,814 | ||||||
Income before income taxes | 9,305,942 | 10,321,991 | ||||||
Income tax expense (benefit) | 578,067 | 873,343 | ||||||
Net income | 8,727,875 | 9,448,648 | ||||||
ORGANIZATION_AND_PRINCIPAL_ACT1
ORGANIZATION AND PRINCIPAL ACTIVITIES (Details Textual) | 0 Months Ended | 6 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | |||||||||||||||||||||||||||||||||||||||
Mar. 14, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Apr. 23, 2014 | Apr. 23, 2014 | Jun. 09, 2013 | Jun. 09, 2013 | Apr. 27, 2013 | Apr. 27, 2013 | Sep. 06, 2010 | Sep. 06, 2010 | Aug. 12, 2010 | Aug. 12, 2010 | Jul. 02, 2012 | Dec. 31, 2014 | Mar. 14, 2013 | Aug. 24, 2012 | Aug. 24, 2012 | Aug. 24, 2012 | Jul. 02, 2012 | Jul. 02, 2012 | Apr. 23, 2014 | Apr. 23, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Apr. 23, 2014 | Aug. 24, 2012 | Jan. 28, 2011 | Jan. 28, 2011 | Sep. 26, 2013 | Sep. 26, 2013 | Sep. 06, 2010 | Sep. 06, 2010 | Aug. 23, 2010 | Aug. 23, 2010 | Aug. 12, 2010 | Aug. 12, 2010 | Sep. 28, 2010 | Sep. 28, 2010 | Dec. 31, 2014 | Jan. 16, 2011 | Dec. 31, 2014 | Mar. 14, 2013 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | HKD | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | Series A Preferred Stock [Member] | Stock Option Pool [Member] | Law Insurance Broker Co [Member] | Law Insurance Broker Co [Member] | Law Risk Management and Consultant Co [Member] | Law Insurance Agent Co Ltd [Member] | Mr Mao [Member] | Mr Mao [Member] | Mr Wong [Member] | Mr Wong [Member] | Ahfl [Member] | Ahfl [Member] | Ahfl [Member] | Ahfl [Member] | Ahfl [Member] | Ahfl [Member] | Ahfl [Member] | Before Amendment [Member] | After Amendment [Member] | Henan Anhou [Member] | Henan Anhou [Member] | Sichuan Kangzhuang [Member] | Sichuan Kangzhuang [Member] | Sichuan Kangzhuang [Member] | Sichuan Kangzhuang [Member] | Jiangsu Law [Member] | Jiangsu Law [Member] | Jiangsu Law [Member] | Jiangsu Law [Member] | Law Enterprise [Member] | Non U S Person [Member] | Law Broker [Member] | Affiliated Entity [Member] | ||
USD ($) | Series A Preferred Stock [Member] | HKD | Maximum [Member] | USD ($) | TWD | USD ($) | TWD | HKD | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | |||||||||||||||||||||||||||||
USD ($) | HKD | |||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Organization And Principal Activities [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
Common stock, shares issued | 29,100,503 | 29,100,503 | 1,000,000 | 2,000,000 | 1,000,000 | 1,000,000 | 8,000,000 | 20,000,000 | 2,000,000 | |||||||||||||||||||||||||||||||||||||||
Common Stock, Shares, Outstanding | 29,100,503 | 29,100,503 | 1,000,000 | |||||||||||||||||||||||||||||||||||||||||||||
Common stock, par value (in dollars per share) | $0.00 | $0.00 | $0.00 | $0.00 | ||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $0.00 | $0.00 | $0.00 | |||||||||||||||||||||||||||||||||||||||||||||
Cancellation Of Shares | 1,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Common stock, value | $291 | $291 | $300,000 | |||||||||||||||||||||||||||||||||||||||||||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | 30,000,000 | 100,000,000 | ||||||||||||||||||||||||||||||||||||||||||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | |||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 0 | 31,651 | 110,452 | 751,745 | ||||||||||||||||||||||||||||||||||||||||||||
Increased Paidup Capital Of Acquired Entity To Meet Capital Requirements | 1,355,150 | 10,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 51.00% | 100.00% | 100.00% | 65.95% | ||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition Cost Of Acquired Entity Purchases Price | 78,318 | 532,622 | 625,113 | 5,180,000 | 78,318 | 532,622 | 75,475 | 518,000 | ||||||||||||||||||||||||||||||||||||||||
Business Acquisition Purchase Price Allocation And Assets Acquired Liabilities Assumed Net | 32,134 | 219,123 | 32,134 | 219,123 | 341,425 | 2,286,842 | ||||||||||||||||||||||||||||||||||||||||||
Business Combination, Bargain Purchase, Gain Recognized, Amount | 0 | 0 | 5,280,042 | 0 | 267,156 | 1,768,842 | ||||||||||||||||||||||||||||||||||||||||||
Payments To Acquire Businesses, Gross | 250,095 | 7,500,000 | 500,815 | 15,000,000 | ||||||||||||||||||||||||||||||||||||||||||||
Registered Capital | 197,335 | 1,530,000 | 1,530,000 | |||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 100.00% | 97.84% | 96.00% | 49.00% | 51.00% | 100.00% | ||||||||||||||||||||||||||||||||||||||||||
Increased Registered Capital | 8,000,000 | 50,000,000 | 300,000 | |||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 4,000,000 | 2,000,000 | 2,000,000 | |||||||||||||||||||||||||||||||||||||||||||||
Employees Stock Options Acquisition Agreement Descriptions | (i) the cash payment deadline as set forth in the Acquisition Agreement was extended from March 31, 2013 to March 31, 2015 or at any other time or in any other manner otherwise agreed upon by and among the Company and the selling shareholders of AHFL; and (ii) in lieu of the 2,000,000 employee stock option pool described in the Acquisition Agreement | |||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Stock, Shares Converted | 1,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Capital Units, Value | $6,389,925 | 40,000,000 | $8,000,000 | 50,000,000 | 500,000 | 1,470,000 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Farglory Life Insurance Co.,Ltd. [Member] | ||||
Disclosure of Summary Of Significant Accounting Policies [Line Items] | ||||
Amount | $6,590,776 | $13,493,644 | $12,118,121 | |
% of Total Revenue | 28.00% | 28.00% | 32.00% | |
Fubon Life Insurance Co.,Ltd. [Member] | ||||
Disclosure of Summary Of Significant Accounting Policies [Line Items] | ||||
Amount | 4,894,133 | 7,621,634 | 9,245,419 | |
% of Total Revenue | 21.00% | 16.00% | 24.00% | |
AIA International Ltd.,Taiwan [Member] | ||||
Disclosure of Summary Of Significant Accounting Policies [Line Items] | ||||
Amount | 3,424,615 | 6,938,013 | ||
% of Total Revenue | 14.00% | 15.00% | ||
TransGlobe Life Insurance Inc. [Member] | ||||
Disclosure of Summary Of Significant Accounting Policies [Line Items] | ||||
Amount | 3,983,464 | 5,584,124 | ||
% of Total Revenue | 17.00% | 12.00% | ||
Sunshine [Member] | ||||
Disclosure of Summary Of Significant Accounting Policies [Line Items] | ||||
Amount | 830,954 | |||
% of Total Revenue | 26.00% | |||
Taiping [Member] | ||||
Disclosure of Summary Of Significant Accounting Policies [Line Items] | ||||
Amount | $751,126 | |||
% of Total Revenue | 24.00% |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2012 |
Farglory Life Insurance Co.,Ltd. [Member] | ||||
Disclosure of Summary Of Significant Accounting Policies [Line Items] | ||||
Amount | $2,150,294 | $1,967,886 | $1,501,865 | |
% of Total Accounts Receivable | 28.00% | 27.00% | 36.00% | |
AIA International Ltd.,Taiwan [Member] | ||||
Disclosure of Summary Of Significant Accounting Policies [Line Items] | ||||
Amount | 1,098,879 | |||
% of Total Accounts Receivable | 14.00% | |||
Fubon Life Insurance Co.,Ltd. [Member] | ||||
Disclosure of Summary Of Significant Accounting Policies [Line Items] | ||||
Amount | 963,118 | 1,390,208 | 673,710 | |
% of Total Accounts Receivable | 12.00% | 19.00% | 16.00% | |
TransGlobe Life Insurance Inc. [Member] | ||||
Disclosure of Summary Of Significant Accounting Policies [Line Items] | ||||
Amount | 735,755 | |||
% of Total Accounts Receivable | 10.00% | |||
Sunshine [Member] | ||||
Disclosure of Summary Of Significant Accounting Policies [Line Items] | ||||
Amount | 73,812 | |||
% of Total Accounts Receivable | 40.00% | |||
Taiping [Member] | ||||
Disclosure of Summary Of Significant Accounting Policies [Line Items] | ||||
Amount | $21,618 | |||
% of Total Accounts Receivable | 12.00% |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) | 6 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Credit Concentration Risk [Member] | Credit Concentration Risk [Member] | Taiwan [Member] | Hong Kong [Member] | Series Preferred Stock [Member] | Maximum [Member] | Minimum [Member] | Henan Anhou [Member] | Henan Anhou [Member] | |
USD ($) | Discontinued Operations [Member] | TWD | HKD | USD ($) | CNY | |||||||||||
USD ($) | ||||||||||||||||
Disclosure of Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||||
Common Stockholders' Equity | $0.16 | 1 | ||||||||||||||
Rate Of Depreciation | 25.00% | 10.00% | ||||||||||||||
Policy Cancellations | $22,553 | $12,809 | $0 | $84,476 | ||||||||||||
Probability percentage expected to be realized upon tax settlement | 50.00% | |||||||||||||||
VIE Agreements | The term of this Agreement is 10 years, and may be renewed at CU WFOE's election. | |||||||||||||||
VIE Agreements Term | 10 years | |||||||||||||||
Income Tax Examination, Penalties Expense | 370,000 | |||||||||||||||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | 10,000,000 | |||||||||||||
Preferred Stock, No Par Value | $0.00 | |||||||||||||||
Preferred Stock, Shares Outstanding | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | ||||||||||||
Cash, FDIC Insured Amount | 250,000 | 824,108 | 104,285 | 3,000,000 | 500,000 | |||||||||||
Cash, Uninsured Amount | 18,587,487 | 55,919 | ||||||||||||||
Goodwill, Impairment Loss | $122,250 | $0 | $122,250 | $0 | $0 |
MARKETABLE_SECURITIES_Details
MARKETABLE SECURITIES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Marketable Securities [Line Items] | ||
Total Fair Value | $95,328 | $102,295 |
Fair Value, Inputs, Level 1 [Member] | ||
Disclosure of Marketable Securities [Line Items] | ||
Cost or Amortized Cost | 2,563,685 | 2,560,770 |
Gross Unrealized Gains (Losses) | -126,679 | 2,915 |
Total Fair Value | 2,437,006 | 2,563,685 |
Stocks [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Disclosure of Marketable Securities [Line Items] | ||
Cost or Amortized Cost | 31,210 | 29,453 |
Gross Unrealized Gains (Losses) | -2,932 | 1,757 |
Total Fair Value | 28,278 | 31,210 |
Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Disclosure of Marketable Securities [Line Items] | ||
Cost or Amortized Cost | 2,532,475 | 2,531,317 |
Gross Unrealized Gains (Losses) | -123,747 | 1,158 |
Total Fair Value | $2,408,728 | $2,532,475 |
OTHER_CURRENT_ASSETS_Details
OTHER CURRENT ASSETS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Disclosure of Other Current Assets [Line Items] | ||
Prepaid rent and rent deposit | $191,995 | $121,361 |
Refundable business tax | 912 | 40 |
Investment in current deposit | 0 | 1,630,789 |
Other | 207,252 | 393,127 |
Total other current assets | $400,159 | $2,145,317 |
PROPERTY_PLANT_AND_EQUIPMENT_N2
PROPERTY, PLANT AND EQUIPMENT, NET (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Total | $1,797,577 | $1,926,206 |
Less: accumulated depreciation | -735,815 | -885,017 |
Total property, plant and equipment, net | 1,061,762 | 1,041,189 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 1,026,426 | 1,204,386 |
Office Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 139,755 | 111,699 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 478,154 | 469,102 |
Transportation equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 89,240 | 89,598 |
Other equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $64,002 | $51,421 |
INTANGIBLE_ASSETS_Details
INTANGIBLE ASSETS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ||
Software | $462,903 | $402,096 |
Less accumulated amortization | -191,947 | -93,829 |
Total other current assets | $270,956 | $308,267 |
INTANGIBLE_ASSETS_Details_1
INTANGIBLE ASSETS (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Finite Lived Intangible Assets Future Amortization Expense [Line Items] | ||
2015 | $113,831 | |
2016 | 75,936 | |
2017 | 22,802 | |
2018 | 22,802 | |
2019 | 17,254 | |
Thereafter | 18,331 | |
Total | $270,956 | $308,267 |
LONGTERM_INVESTMENT_Details
LONG-TERM INVESTMENT (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Long Term Investment [Line Items] | ||
Cost or Amortized Cost | $95,405 | $101,599 |
Gross Unrealized Gains (Losses) | -77 | 696 |
Total Fair Value | 95,328 | 102,295 |
US Treasury and Government [Member] | ||
Long Term Investment [Line Items] | ||
Cost or Amortized Cost | 95,405 | 101,599 |
Gross Unrealized Gains (Losses) | -77 | 696 |
Total Fair Value | $95,328 | $102,295 |
LONGTERM_INVESTMENT_Details_Te
LONG-TERM INVESTMENT (Details Textual) | Dec. 31, 2014 | Dec. 31, 2014 |
USD ($) | TWD | |
Long Term Investment [Line Items] | ||
Regulatory Requirements Minimum Amount | $94,508 | 3,000,000 |
OTHER_ASSETS_Details
OTHER ASSETS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Other Assets [Line Items] | ||
Restricted cash | $162,906 | $163,559 |
Rental deposits | 384,670 | 405,935 |
Other | 39,946 | 17,809 |
Total other assets | $587,522 | $587,303 |
ACQUISITION_AND_GOODWILL_Detai
ACQUISITION AND GOODWILL (Details Textual) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||
Apr. 23, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Apr. 23, 2014 | Sep. 06, 2010 | Sep. 06, 2010 | Aug. 12, 2010 | Aug. 12, 2010 | Apr. 23, 2014 | Apr. 23, 2014 | Apr. 23, 2014 | Apr. 23, 2014 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | HKD | USD ($) | CNY | USD ($) | CNY | Maximum [Member] | Minimum [Member] | Ahfl [Member] | Mr Wong [Member] | |
HKD | HKD | ||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Registered Capital | $197,335 | 1,530,000 | |||||||||||||
Business Acquisition, Percentage Of Voting Interests Acquired | 51.00% | 100.00% | 100.00% | 51.00% | 49.00% | ||||||||||
Fair Value of Assets Acquired | 324,871 | 165,684 | |||||||||||||
Goodwill, Acquired During Period | 31,651 | ||||||||||||||
Increased Value Of Capital Unit | 1,470,000 | 500,000 | |||||||||||||
Business Acquisition Cost Of Acquired Entity Purchases Price | 78,318 | 532,622 | 625,113 | 5,180,000 | |||||||||||
Business Acquisition Purchase Price Allocation And Assets Acquired Liabilities Assumed Net | 32,134 | 219,123 | |||||||||||||
Business Acquisition Purchases Price Allocation Goodwill Amount | 110,452 | 751,745 | |||||||||||||
Goodwill, Impairment Loss | $122,250 | $0 | $122,250 | $0 | $0 |
TAXES_PAYABLE_Details
TAXES PAYABLE (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Taxes Payable [Line Items] | ||
Total taxes payable | $919,907 | $498,441 |
PRC [Member] | ||
Taxes Payable [Line Items] | ||
Total taxes payable | 172,765 | 152,105 |
Taiwan [Member] | ||
Taxes Payable [Line Items] | ||
Total taxes payable | $747,142 | $346,336 |
UNEARNED_REVENUE_Details_Textu
UNEARNED REVENUE (Details Textual) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 |
USD ($) | USD ($) | Strategic Alliance Agreement [Member] | Strategic Alliance Agreement [Member] | |
TWD | USD ($) | |||
Unearned Revenue [Line Items] | ||||
Execution Fee Amount Paid | 250,000,000 | $8,326,700 | ||
Revenues, Total | 11,904,762 | |||
Long-term Debt, Total | 7,500,645 | 7,095,062 | ||
Deferred Revenue, Current | 0 | 1,586,038 | ||
Long-term Debt, Excluding Current Maturities | $6,344,152 |
OTHER_CURRENT_LIABILITIES_Deta
OTHER CURRENT LIABILITIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Disclosure of Other Current Liabilities [Line Items] | ||
Commissions payable to sub agents | $5,311,365 | $4,972,338 |
Salary payable to administrative staff | 144,158 | 75,934 |
Withholding employee personal tax | 259,458 | 326,652 |
Accrued expenses | 2,844,166 | 3,053,140 |
Other | 223,532 | 119,337 |
Total other current liabilities | 9,533,589 | 8,631,639 |
Sichuan Kangzhuang and Jiangsu Law [Member] | ||
Disclosure of Other Current Liabilities [Line Items] | ||
Due to previous shareholders of Jiangsu Law | 0 | 84,238 |
AHFL [Member] | ||
Disclosure of Other Current Liabilities [Line Items] | ||
Due to previous shareholders of Jiangsu Law | $750,910 | $0 |
LONGTERM_LIABILITIES_Details
LONG-TERM LIABILITIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of long term debt [Line Items] | ||
Long-term other payable | $0 | $750,910 |
Unearned revenue | 7,500,645 | 6,344,152 |
Total other long-term liabilities | $7,500,645 | $7,095,062 |
LONGTERM_LIABILITIES_Details_T
LONG-TERM LIABILITIES (Details Textual) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 |
USD ($) | USD ($) | AIATW [Member] | AIATW [Member] | |
USD ($) | TWD | |||
Schedule of long term debt [Line Items] | ||||
Deferred Revenue, Noncurrent | $7,500,645 | $6,344,152 | $7,500,645 | 238,095,238 |
Long-term Debt, Total | $7,500,645 | $7,095,062 |
STATUTORY_RESERVES_Details_Tex
STATUTORY RESERVES (Details Textual) | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Line Items] | |
Statutory Common Reserve, Contribution Percentage Of Net Income | 10.00% |
Statutory Common Reserve, Contribution Percentage On Net Profit | 10.00% |
Statutory Common Reserve Limitation Minimum Percentage On Registered Capital | 25.00% |
Statutory Common Reserve Limitation, Maximum Percentage On Registered Capital | 50.00% |
INCOME_TAX_Details
INCOME TAX (Details) | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Schedule of Income Tax [Line Items] | ||||
US statutory rate | 34.00% | 34.00% | 34.00% | 34.00% |
Tax rate difference | -2.00% | -33.00% | -8.00% | -9.00% |
Tax base difference | -1.00% | 1.00% | 0.00% | 3.00% |
Change in tax status | 0.00% | 0.00% | -3.00% | 76.00% |
Income tax on undistributed earnings | -6.00% | 57.00% | 0.00% | 0.00% |
Loss in subsidiaries | -38.00% | 45.00% | 2.00% | -33.00% |
Write-off residual value of fixed assets | -5.00% | 1.00% | 0.00% | 0.00% |
Impairment of goodwill | -3.00% | 0.00% | 0.00% | 0.00% |
Gain on bargain purchase of subsidiary | 0.00% | 0.00% | -19.00% | 0.00% |
Un-deductible and non-taxable items | 6.00% | -2.00% | 2.00% | 1.00% |
Tax per financial statements | -15.00% | 103.00% | 8.00% | 72.00% |
INCOME_TAX_Details_Textual
INCOME TAX (Details Textual) | 6 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | |
USD ($) | TWD | USD ($) | TWD | USD ($) | USD ($) | Subsidiary [Member] | Jiangsu Law [Member] | Taiwan [Member] | ||
Schedule of Income Tax [Line Items] | ||||||||||
Tax per financial statements | -15.00% | 103.00% | 103.00% | 8.00% | 72.00% | 25.00% | 25.00% | 17.00% | ||
Tax Basis Percentage On Revenue | 10.00% | 10.00% | ||||||||
Commission Revenue Percentage Non Deductible Tax Expenses | 5.00% | 5.00% | ||||||||
Additional Income Tax Rate On Undistributed Earnings | 10.00% | |||||||||
Undistributed Earnings, Basic | $303,589 | 9,200,945 | $626,406 | 18,903,349 | ||||||
Reversed Tax Payable | $274,489 | $283,880 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ||
Total | $531,447 | $154,798 |
Mr.Mao [Member] | ||
Related Party Transaction [Line Items] | ||
Total | 214,165 | 117,471 |
Mr.Zhu [Member] | ||
Related Party Transaction [Line Items] | ||
Total | 2,255 | 2,265 |
Mrs. Lee [Member] | ||
Related Party Transaction [Line Items] | ||
Total | $315,027 | $35,062 |
RELATED_PARTY_TRANSACTIONS_Det1
RELATED PARTY TRANSACTIONS (Details Textual) | 12 Months Ended | ||
Dec. 22, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | |
Subsequent Event [Member] | Mrs. Lee [Member] | Mrs. Lee [Member] | |
USD ($) | TWD | ||
Related Party Transaction [Line Items] | |||
Business Acquisition Expenses Paid | $314,644 | 10,000,000 | |
Line of Credit Facility, Interest Rate During Period | 1.50% |
COMMITMENTS_Details
COMMITMENTS (Details) (USD $) | Dec. 31, 2014 |
Other Commitments [Line Items] | |
Twelve months ended December 31, 2015 | $1,719,838 |
Twelve months ended December 31, 2016 | 937,485 |
Twelve months ended December 31, 2017 | 410,553 |
Thereafter | 314,034 |
Total | $3,381,910 |
COMMITMENTS_Details_Textual
COMMITMENTS (Details Textual) (USD $) | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Other Commitments [Line Items] | ||||
Operating Leases, Rent Expense | $754,029 | $1,668,571 | $1,410,945 | $889,080 |
DISCONTINUED_OPERATION_Details
DISCONTINUED OPERATION (Details) (Law Management and Law Agent [Member], USD $) | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2014 | Jun. 30, 2013 | |
Law Management and Law Agent [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Total Assets (including cash) | $203,597 | $334,512 | $277,582 |
Total Liabilities | 117,240 | 255,954 | 121,134 |
Revenue | 0 | 0 | 0 |
Net Loss | ($132,229) | ($3,270) | ($4,173) |
EPS | $0 | $0 | $0 |
GEOGRAPHICAL_REVENUE_Details
GEOGRAPHICAL REVENUE (Details) (USD $) | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Schedule of Geographical Sales [Line Items] | ||||
Revenues | $23,689,110 | $47,449,962 | $37,842,246 | $3,153,776 |
PRC [Member] | ||||
Schedule of Geographical Sales [Line Items] | ||||
Revenues | 1,488,110 | 3,060,765 | 2,775,431 | 3,153,776 |
Taiwan [Member] | ||||
Schedule of Geographical Sales [Line Items] | ||||
Revenues | $22,201,000 | $44,389,197 | $35,066,815 |
LOAN_TO_SHAREHOLDERS_Details_T
LOAN TO SHAREHOLDERS (Details Textual) | 0 Months Ended | |||||||||||||
Jun. 09, 2013 | Jun. 09, 2013 | Apr. 27, 2013 | Apr. 27, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Oct. 20, 2013 | Oct. 20, 2013 | Apr. 27, 2013 | Apr. 27, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | |
USD ($) | CNY | USD ($) | CNY | Able Capital Holding Co Ltd [Member] | Able Capital Holding Co Ltd [Member] | Anhou [Member] | Anhou [Member] | Anhou [Member] | Anhou [Member] | Mr Chen Li [Member] | Mr Chen Li [Member] | Ms Yue Jing [Member] | Ms Yue Jing [Member] | |
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | |||||
Loan To Shareholders [Line Items] | ||||||||||||||
Capital Units, Value | $6,389,925 | 40,000,000 | $8,000,000 | 50,000,000 | $6,389,925 | 40,000,000 | $1,600,000 | 10,000,000 | ||||||
Increase In Capital Units | 50,000,000 | |||||||||||||
Debt, Current, Total | $4,712,570 | 29,500,000 | $479,244 | 3,000,000 | $1,198,111 | 7,500,000 | ||||||||
Debt Instrument, Frequency of Periodic Payment | 10 years | 10 years |
PREFERRED_STOCK_Details_Textua
PREFERRED STOCK (Details Textual) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Class of Stock [Line Items] | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred Stock, Shares Outstanding | 1,000,000 | 1,000,000 |
Common Stock Fair Value | $200,000 | |
Incremental Value preferred stock compensation | 25,000 | |
Preferred Stock, Shares Issued | 1,000,000 | 1,000,000 |
Series A Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred Stock, Shares Outstanding | 1,000,000 | |
Preferred Stock Fair Value | $225,000 | |
Preferred Stock, Shares Issued | 1,000,000 |
PRO_FORMA_CONSOLIDATED_STATEME2
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS (Details) (USD $) | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Disclosure of Pro Forma Consolidated Statement Of Income [Line Items] | ||||
Revenues | $23,689,110 | $47,449,962 | $37,842,246 | $3,153,776 |
Cost of revenue | 16,040,303 | 30,408,118 | 24,309,716 | 2,363,581 |
Gross profit | 7,648,807 | 17,041,844 | 13,532,530 | 790,195 |
Operating expenses: | ||||
Selling | 2,010,744 | 4,034,409 | 962,958 | |
General and administrative | 5,948,516 | 11,971,863 | 9,062,828 | 1,166,841 |
Income (loss) from operations | -432,703 | 1,035,572 | 3,506,744 | -376,646 |
Other income (expenses) | ||||
Interest income | 108,654 | 229,317 | 83,682 | 4,756 |
Gain on acquisition of subsidiary | 0 | 0 | 5,280,042 | 0 |
Other - net | -652,079 | 365,225 | 432,064 | -18 |
Total other income | -543,425 | 594,542 | 5,795,788 | 4,738 |
Income before income taxes | -976,128 | 1,630,114 | 9,302,532 | -371,908 |
Income tax expense (benefit) | 143,660 | 1,672,840 | 698,508 | -268,440 |
Net income | -1,151,978 | -908,132 | 7,217,468 | -103,468 |
Pro Forma [Member] | ||||
Disclosure of Pro Forma Consolidated Statement Of Income [Line Items] | ||||
Revenues | 44,111,682 | 40,966,268 | ||
Cost of revenue | 28,529,338 | 28,485,785 | ||
Gross profit | 15,582,344 | 12,480,485 | ||
Operating expenses: | ||||
Selling | 962,958 | 1,046,457 | ||
General and administrative | 10,172,209 | 8,056,531 | ||
Income (loss) from operations | 4,447,177 | 3,377,497 | ||
Other income (expenses) | ||||
Interest income | 83,163 | 8,399 | ||
Gain on acquisition of subsidiary | 5,280,042 | 5,442,523 | ||
Other - net | 511,609 | 477,523 | ||
Total other income | 5,874,814 | 5,928,445 | ||
Income before income taxes | 10,321,991 | 9,305,942 | ||
Income tax expense (benefit) | 873,343 | 578,067 | ||
Net income | $9,448,648 | $8,727,875 |
SUBSEQUENT_EVENTS_Details_Text
SUBSEQUENT EVENTS (Details Textual) (Subsequent Event [Member]) | 1 Months Ended |
Feb. 13, 2015 | |
Subsequent Event [Line Items] | |
Business Combination, Step Acquisition, Equity Interest in Acquiree, Including Subsequent Acquisition, Percentage | 100.00% |
Genius Holdings Financial Limited [Member] | |
Subsequent Event [Line Items] | |
Noncash or Part Noncash Acquisition, Noncash Financial or Equity Instrument Consideration, Shares Issued | 352,166 |
Noncash or Part Noncash Acquisition, Noncash Financial or Equity Instrument Consideration, Options Issued | 352,166 |
Noncash or Part Noncash Acquisition, Interest Acquired | 100.00% |
Noncontrolling Interest, Ownership Percentage by Parent | 15.00% |
Noncash or Part Noncash Acquisition, Noncash Financial or Equity Instrument Consideration, Shares Acquired | 704,333 |