Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 14, 2018 | Jun. 30, 2017 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | China United Insurance Service, Inc. | ||
Entity Central Index Key | 1,512,927 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 120,755,943 | ||
Trading Symbol | CUII | ||
Entity Common Stock, Shares Outstanding | 29,452,669 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 15,473,949 | $ 20,169,455 |
Time deposits | 21,470,113 | 5,352,347 |
Marketable securities | 33,381 | 2,426,870 |
Structured deposit | 1,248,340 | 0 |
Accounts receivable, net | 13,301,006 | 15,774,159 |
Other current assets | 2,193,086 | 1,831,318 |
Total current assets | 53,719,875 | 45,554,149 |
Property, plant and equipment, net | 946,302 | 926,905 |
Intangible assets | 775,778 | 784,219 |
Goodwill | 31,651 | 31,651 |
Long-term investments | 1,399,762 | 1,285,064 |
Other assets | 2,399,875 | 785,715 |
TOTAL ASSETS | 59,273,243 | 49,367,703 |
Current liabilities | ||
Taxes payable | 3,508,790 | 2,249,869 |
Short-term loans | 2,350,000 | 0 |
Convertible bonds | 200,000 | 0 |
Due to related parties | 590,265 | 400,001 |
Other current liabilities | 12,789,588 | 18,639,909 |
Total current liabilities | 19,438,643 | 21,289,779 |
Convertible bonds - noncurrent | 0 | 200,000 |
Long-term loans | 248,986 | 254,907 |
Long-term liabilities | 4,842,240 | 5,315,327 |
TOTAL LIABILITIES | 24,529,869 | 27,060,013 |
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, 29,452,669 issued and outstanding | 295 | 295 |
Additional paid-in capital | 8,190,449 | 8,157,512 |
Statutory reserves | 5,781,008 | 3,799,585 |
Retained earnings | 6,419,937 | 1,246,722 |
Accumulated other comprehensive gain/(loss) | 616,019 | (667,976) |
Stockholders’ equity attribute to parent’s shareholders | 21,007,718 | 12,536,148 |
Noncontrolling interests | 13,735,656 | 9,771,542 |
TOTAL STOCKHOLDERS’ EQUITY | 34,743,374 | 22,307,690 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 59,273,243 | $ 49,367,703 |
CONSOLIDATED BALANCE SHEETS _PA
CONSOLIDATED BALANCE SHEETS [PARENTHETICAL] - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 28, 2011 |
Preferred stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | |
Preferred Stock, shares issued | 1,000,000 | 1,000,000 | 1,000,000 | |
Preferred Stock, shares outstanding | 1,000,000 | 1,000,000 | 1,000,000 | 10,000,000 |
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 | $ 0.00001 | |
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 |
Common stock, shares issued | 29,452,669 | 29,452,669 | 29,452,669 | |
Common stock, shares outstanding | 29,452,669 | 29,452,669 | 29,452,669 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME / (LOSS) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue | $ 72,848,444 | $ 69,934,006 | $ 55,023,766 |
Cost of revenue | 42,801,007 | 46,554,495 | 35,423,762 |
Gross profit | 30,047,437 | 23,379,511 | 19,600,004 |
Operating expenses: | |||
Selling | 2,344,633 | 2,842,744 | 3,084,408 |
General and administrative | 14,959,384 | 13,852,277 | 14,715,011 |
Total operating expense | 17,304,017 | 16,695,021 | 17,799,419 |
Income from operations | 12,743,420 | 6,684,490 | 1,800,585 |
Other income (expenses): | |||
Interest income | 339,169 | 208,665 | 230,509 |
Interest expenses | (35,375) | (19,722) | (654) |
Dividend income | 332,302 | 273,873 | 0 |
Other - net | 312,066 | (8,125) | 150,071 |
Total other income (expenses) | 948,162 | 454,691 | 379,926 |
Income before income tax | 13,691,582 | 7,139,181 | 2,180,511 |
Income tax expense | 3,513,717 | 2,119,598 | 1,519,226 |
Net income | 10,177,865 | 5,019,583 | 661,285 |
Net income attributable to the noncontrolling interests | 3,023,227 | 2,127,428 | 1,623,198 |
Net income attributable to parent’s shareholders | 7,154,638 | 2,892,155 | (961,913) |
Other comprehensive items | |||
Foreign currency translation gain | 1,241,081 | (30,045) | (329,562) |
Other | 42,914 | 42,202 | 310 |
Other comprehensive income attributable to parent's shareholders | 1,283,995 | 12,157 | (329,252) |
Other comprehensive items attributable to noncontrolling interests | 940,887 | 147,487 | (477,738) |
Other comprehensive income attributable to parent's shareholder | 8,438,633 | 2,904,312 | (1,291,165) |
Comprehensive income attributable to noncontrolling interests | $ 3,964,114 | $ 2,274,915 | $ 1,145,460 |
Weighted average shares outstanding: | |||
Basic | 29,452,669 | 29,452,669 | 29,365,834 |
Diluted | 30,509,552 | 30,462,097 | 29,365,834 |
Net income per share attributable to parent's shareholders: | |||
Basic | $ 0.243 | $ 0.098 | $ (0.033) |
Diluted | $ 0.235 | $ 0.095 | $ (0.033) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Total | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Statutory Reserves [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] | Parent [Member] | Noncontrolling Interests [Member] |
Balance at Dec. 31, 2014 | $ 13,812,732 | $ 291 | $ 10 | $ 4,674,593 | $ 1,388,014 | $ (350,881) | $ 1,717,278 | $ 7,429,305 | $ 6,383,427 |
Balance (in shares) at Dec. 31, 2014 | 29,100,503 | 1,000,000 | |||||||
Appropriation of reserves | 0 | $ 0 | $ 0 | 0 | 997,313 | 0 | (997,313) | 0 | 0 |
Share exchange to acquire GHFL | 3,482,923 | $ 4 | 0 | 3,482,919 | 0 | 0 | 0 | 3,482,923 | 0 |
Share exchange to acquire GHFL (in shares) | 352,166 | ||||||||
Foreign currency translation gain (loss) | (808,909) | $ 0 | 0 | 0 | 0 | (329,562) | 0 | (329,562) | (479,347) |
Other comprehensive gain (loss) | 1,919 | 0 | 0 | 0 | 0 | 310 | 0 | 310 | 1,609 |
Liquidation of subsidiaries | 56,617 | 0 | 0 | 0 | 0 | 0 | 10,773 | 10,773 | 45,844 |
Net income | 661,285 | 0 | 0 | 0 | 0 | 0 | (961,913) | (961,913) | 1,623,198 |
Balance at Dec. 31, 2015 | 17,206,567 | $ 295 | $ 10 | 8,157,512 | 2,385,327 | (680,133) | (231,175) | 9,631,836 | 7,574,731 |
Balance (in shares) at Dec. 31, 2015 | 29,452,669 | 1,000,000 | |||||||
Appropriation of reserves | 0 | $ 0 | $ 0 | 0 | 1,414,258 | 0 | (1,414,258) | 0 | 0 |
Foreign currency translation gain (loss) | 95,656 | 0 | 0 | 0 | 0 | (30,045) | 0 | (30,045) | 125,701 |
Other comprehensive gain (loss) | 63,988 | 0 | 0 | 0 | 0 | 42,202 | 0 | 42,202 | 21,786 |
Reduction of cash capital | (78,104) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (78,104) |
Net income | 5,019,583 | 0 | 0 | 0 | 0 | 0 | 2,892,155 | 2,892,155 | 2,127,428 |
Balance at Dec. 31, 2016 | 22,307,690 | $ 295 | $ 10 | 8,157,512 | 3,799,585 | (667,976) | 1,246,722 | 12,536,148 | 9,771,542 |
Balance (in shares) at Dec. 31, 2016 | 29,452,669 | 1,000,000 | |||||||
Appropriation of reserves | 0 | $ 0 | $ 0 | 0 | 1,981,423 | 0 | (1,981,423) | 0 | 0 |
Foreign currency translation gain (loss) | 2,181,599 | 0 | 0 | 0 | 0 | 1,241,081 | 0 | 1,241,081 | 940,518 |
Other comprehensive gain (loss) | 43,283 | 0 | 0 | 0 | 0 | 42,914 | 0 | 42,914 | 369 |
Forgiveness of debt | 32,937 | 0 | 0 | 32,937 | 0 | 0 | 0 | 32,937 | 0 |
Net income | 10,177,865 | 0 | 0 | 0 | 0 | 0 | 7,154,638 | 7,154,638 | 3,023,227 |
Balance at Dec. 31, 2017 | $ 34,743,374 | $ 295 | $ 10 | $ 8,190,449 | $ 5,781,008 | $ 616,019 | $ 6,419,937 | $ 21,007,718 | $ 13,735,656 |
Balance (in shares) at Dec. 31, 2017 | 29,452,669 | 1,000,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 10,177,865 | $ 5,019,583 | $ 661,285 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization | 561,184 | 626,028 | 463,201 |
Pension plan | 2,169 | 65,394 | 0 |
Amortization of bond premium | 0 | 244 | 0 |
Compensation on asset acquisition | 0 | 0 | 2,039,840 |
Gain on settlement of debt | 0 | (83,425) | 0 |
Gain on valuation of financial assets | 64,749 | (16,669) | (16,550) |
Loss on disposals of property, plant and equipment | 110,964 | 38,421 | 56,707 |
Deferred income tax | 87,391 | (87,983) | (34,424) |
Changes in operating assets and liabilities: | |||
Accounts receivable | 3,657,114 | (6,095,236) | (2,259,028) |
Other current assets | (335,939) | 724,922 | (518,684) |
Other assets | (1,528,647) | 80,733 | (236,501) |
Tax payable | 1,036,997 | 714,343 | 658,010 |
Other current liabilities | (7,149,596) | 7,954,780 | 1,113,740 |
Long-term liabilities | (1,028,760) | (1,396,753) | (157,579) |
Net cash provided by operating activities | 5,655,491 | 7,544,382 | 1,770,017 |
Cash flows from investing activities: | |||
Cash from acquisition | 0 | 0 | 318 |
Repayments to pervious shareholders | 0 | (150,959) | 0 |
Dividend received in excess of earnings as reductions of cost of the investment | 244,058 | ||
Purchases of structured deposit | (1,285,882) | 0 | 0 |
Purchases of time deposits | (32,699,028) | (7,161,459) | (9,562,553) |
Proceeds from maturities of time deposits | 17,437,704 | 9,697,617 | 10,556,173 |
Loan made to RFL | 105,586 | (1,490,040) | 0 |
Proceeds from disposals of marketable securities | 7,515,680 | 0 | 0 |
Purchase of marketable securities | (4,967,359) | 0 | 0 |
Purchase of property, plant and equipment | (382,473) | (537,156) | (283,568) |
Purchase of intangible assets | (159,955) | (447,344) | (344,651) |
Net cash provided by (used in) investing activities | (14,435,727) | (89,341) | 609,777 |
Cash flows from financing activities: | |||
Proceeds from related party borrowings | 464,850 | 86,572 | 794,009 |
Repayment to related parties | (285,856) | (626,852) | (315,443) |
Payment to noncontrolling interest as reduction of cash capital | 0 | (77,425) | 0 |
Proceeds from third party borrowings | 2,350,000 | 466,445 | 227,579 |
Repayment to third party loans | (22,199) | (225,213) | 0 |
Net cash provided by (used in) financing activities | 2,506,795 | (376,473) | 706,145 |
Foreign currency translation | 1,577,935 | 7,530 | (564,053) |
Net increase (decrease) in cash and cash equivalents | (4,695,506) | 7,086,098 | 2,521,886 |
Cash and cash equivalents, beginning balance | 20,169,455 | 13,083,357 | 10,561,471 |
Cash and cash equivalents, ending balance | 15,473,949 | 20,169,455 | 13,083,357 |
SUPPLEMENTARY DISCLOSURE: | |||
Interest paid | 33,844 | 42,935 | 285 |
Income tax paid | 2,307,768 | 1,562,037 | 824,716 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW FOR NON-CASH TRANSACTION: | |||
Debt forgiveness - related parties | 32,937 | 0 | 0 |
Issuance of common stock for acquisition of GHFL | $ 0 | $ 0 | $ 1,443,083 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2017 | |
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 Yi-Hsiao Mao, a Taiwan citizen, as a listing vehicle for both ZLI Holdings Limited (“CU Hong Kong”) and Action Holdings Financial Limited (“AHFL,” a company incorporated in the British Virgin Islands). The Company is quoted on the United States Over the Counter Bulletin Board. CU Hong Kong, a wholly owned Hong Kong-based subsidiary was incorporated by China United, on July 12, 2010 under Hong Kong law. On October 20, 2010, CU Hong Kong established a wholly owned enterprise, Zhengzhou Zhonglian Hengfu Business Consulting Co., Limited (“CU WFOE”) in Henan province in the People’s Republic of China (the “PRC”). On January 16, 2011, the Company issued 20,000,000 0.00001 300,000 The issuance was made pursuant to an exemption from registration in Regulation S under the Securities Act of 1933, as amended. The entire 300,000 On January 28, 2011, the Company increased the authorized number of common shares from 30,000,000 100,000,000 and also authorized 10,000,000 On January 17, 2011, after approved by the Board of Directors and stockholders of both Companies, the CU WFOE entered a series of agreements (“VIE Agreement”), including Exclusive Business Cooperation Agreement, Option Agreement, and Share Pledge Agreement with Law Anhou Insurance Agency Co., Limited (“Anhou”, formerly known as Zhengzhou Anhou Insurance Agency Co., Limited or Henan Law Anhou Insurance Agency Co., Limited) in Nanjing City, PRC. These agreements established a Variable Interest Entity (“VIE”) and Primary Beneficiary relationship between the two entities. Anhou was established in October 2003 and obtained its insurance brokerage license in April 2012 in PRC. Its primary business is to sell life and property casualty insurance products in the PRC. Prior to the entering of VIE agreements with CU WFOE, Anhou acquired the entire interest of Sichuan Kangzhuang Insurance Agency Co., Limited (“Sichuan Kangzhuang”), which was established in September 2006 in Sichuan Province of the PRC, for RMB 532,622 78,000 518,000 75,470 On August 24, 2012, the Company acquired all of the issued and outstanding shares of AHFL, a limited liability company established in April 2012, under the laws of British Virgin Islands, together with AHFL’s four majority owned subsidiaries in Taiwan in exchange for 8,000,000 22.5 676,000 15 As part of the acquisition agreement with AHFL, the Company agreed to issue 2,000,000 2,000,000 Among the four majority owned subsidiaries in Taiwan, AHFL owns 65.95 100 96 97.84 On January 17, 2014, the Board of Directors of the Company approved a change in its fiscal year end to December 31 from June 30, retroactively effective July 1, 2013 with a transition period of six months. On April 23, 2014, AHFL entered into a capital increase agreement (“Agreement”) with Mr. Wong, Chun Kwok Johnny (“Mr. Wong”), the owner of Prime Financial Asia Limited (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 500,000 1,470,000 1,530,000 PFAL’s registered capital. Upon the completion of capital contribution by both parties, Mr. Wong and AHFL would 49 51 of PFAL’s equity interest, respectively. The transaction was completed on April 30, 2014. On February 13, 2015, CUIS and AHFL entered into an acquisition agreement with a selling shareholder of Genius Holdings Financial Limited (“GHFL”), Mr. Chwan hau Li, 352,166 352,166 704,333 GHFL is a limited liability company established under the laws of British Virgin Islands in July 2013. 100 liability 15.64 100 352,166 On August 7, 2015, Max Key Investment Ltd. (“MKI”) was incorporated with limited liability in the British Virgin Islands. On August 15, 2015, Prime Management Consulting (Nanjing) Co., Ltd. (“PTC Nanjing”) was incorporated with limited liability in Nanjing province of the PRC. On May 10, 2016, Prime Technology Consulting Co., Ltd., (“PTC Taiwan”) changed its name to Prime Asia Corporation, Limited (“PA Taiwan”). PA Taiwan primarily engages in insurance platform establishment and related information technology consulting service business across Taiwan. Each of MKI, PTC Nanjing and PTC Taiwan is a wholly owned subsidiary of PFAL. The corporate structure as of December 31, 2017 is as follows: |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying consolidated financial statements include the accounts of China United, its subsidiaries and VIEs as shown in the corporate structure in Note 1. All intercompany transactions and balances have been eliminated in consolidation. Certain reclassifications have been made to the consolidated financial statements for prior years to the current year’s presentation. Such reclassifications have no effect on net income as previously reported. Please see Note 25, Reclassifications. The preparation of the Company’s consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates and assumptions. Noncontrolling interest consists of direct and indirect equity interest in AHFL and its subsidiaries arising from the acquisition of AHFL by CUIS and acquisition of PFAL by AHFL in August 2012 and April 2014, respectively. The Company follows Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, “ Consolidation NCI 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. The Company follows FASB ASC Topic 220 (“ASC 220”), “Reporting Comprehensive Income,” The Company’s financial statements are presented in U.S. dollars ($), which is the Company’s reporting and functional currency. The functional currencies of the Company’s subsidiaries are NTD, RMB and HKD. The resulting translation adjustments are reported under other comprehensive income in accordance with ASC 220. Gains and losses resulting from the translation of foreign currency transactions are reflected in the consolidated statements of operations and other comprehensive income (loss). Monetary assets and liabilities denominated in foreign currency are translated at the functional currency using the rate of exchange prevailing at the balance sheet date. Any differences are taken to profit or loss as a gain or loss on foreign currency translation in the consolidated statements of operations and other comprehensive income (loss). The Company translates the assets and liabilities into U.S. dollars using the rate of exchange prevailing at the balance sheet date and the statements of operations and cash flows are translated at an average rate during the reporting period. Adjustments resulting from the translation from NTD, RMB and HKD into U.S. dollars are recorded in stockholders’ equity as part of accumulated other comprehensive income. Average Rate for the years ended December 31, 2017 2016 2015 Taiwan dollar (NTD) NTD 30.39845 NTD 32.21390 NTD 31.73010 China yuan (RMB) RMB 6.75701 RMB 6.64301 RMB 6.21750 Hong Kong dollar (HKD) HKD 7.79223 HKD 7.76173 HKD 7.75210 United States dollar ($) $ 1.00000 $ 1.00000 $ 1.00000 Exchange Rate at December 31, 2017 December 31, 2016 Taiwan dollar (NTD) NTD 29.65568 NTD 32.28310 China yuan (RMB) RMB 6.50638 RMB 6.94370 Hong Kong dollar (HKD) HKD 7.81493 HKD 7.75434 United States dollar ($) $ 1.00000 $ 1.00000 Cash and cash equivalents include cash on hand, bank deposits, and highly liquid investments with maturities of three months or less at the date of origination. The Company invests part of its excessive cash in equity securities, money market funds, debt and equity funds. Such investments are included in “Marketable securities” in the accompanying consolidated balance sheets. Trading securities represent securities bought and held primarily for sale in the near-term to generate income on short-term price differences and are stated at fair value. Realized and unrealized gains and losses are recorded in other income (expense). Accounts receivable includes commission receivables and is stated at net realizable values. The Company reviews its accounts receivable regularly to determine if a bad debt allowance is necessary at each quarter-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, 2017 and 2016. Property, plant and equipment are stated at cost, less accumulated depreciation. Expenditures for improvements are capitalized; repairs and maintenance are charged to expense as incurred. Upon sale of retirement, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is recorded in other income (expense). Depreciation of office equipment, office furniture, leasehold improvements, transportation equipment and other equipment is computed using the straight-line method based on estimated useful lives ranging from one to ten years with estimated salvage value. Goodwill represents the excess of acquisition cost over the fair value of the net assets in the acquisition of a business. Goodwill is not amortized but instead is tested for impairment annually or more frequently if events or changes in circumstances indicate it might be impaired, using two-step goodwill impairment test. The first step screens for potential impairment of goodwill to determine if the fair value 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 fair value of goodwill to its carrying value. As of December 31, 2017, and 2016, there were no indications of impairment of goodwill. Intangible assets, which primarily consist of software, are stated at cost, less accumulated amortization, and amortized over estimated useful lives ranging from 3 5 The Company reviews the carrying values of the long-lived assets when circumstances warrant as to whether the carrying value has become impaired. The Company considers assets to be impaired if the carrying value of an asset exceeds the present value of future net undiscounted cash flows from its related operations. There were no impairment recognized for the years ended December 31, 2017, 2016 and 2015. Long-term investments include government bonds held as available-for-sale and equity investments accounted for the cost method. Available-for-sale investments are carried at fair value and unrealized gains and losses as a result of changes in the fair value are recorded as a separate component within accumulated other comprehensive income in the accompanying consolidated balance sheets. The Company applies the cost method of accounting for investments in companies that do not have a readily determinable fair value in which it holds an interest of less than 20% and over which it does not have the ability to exercise significant influence. Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis in the investment is established. Convertible debt is accounted for under the guidelines established by ASC 470-20 “ Debt with Conversion and Other Options The Company’s revenue is from insurance agency and brokerage services. The Company, through its subsidiaries and VIEs, 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 and brokerage 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 companies. For the fiscal years ended December 31, 2017, 2016 and 2015, policy cancellations were $ 227,901 340,086 291,325 The Company pays commissions to its sales professionals when an insurance product is sold by the sales professionals. The Company recognizes commission revenue from insurance companies on a gross basis, and the commissions paid to its sales professionals are recognized as cost of revenue. The Company records income tax expense using the asset-and-liability method of accounting for deferred income taxes. 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. Deferred tax assets are reduced by a valuation allowance if, based on available evidence, it is more likely than not that the deferred tax assets will not 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 Fair value accounting establishes a framework for measuring fair value and expands disclosure about fair value measurements. Fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels 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 fair value. The carrying amounts of financial assets and liabilities in the consolidated balance sheets for cash and cash equivalents, accounts payable and accrued expense approximate fair value due to the short-term duration of those instruments. See Note 24 for additional information on the fair values related to other financial assets and liabilities. Concentration of Risk The Company maintains cash with banks in the USA, PRC, Hong Kong, and Taiwan. 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 3,000,000 insured by Central Deposit Insurance Corporation (“CDIC”). In China, a depositor has up to 500,000 insured by the People’s Bank of China Financial Stability Bureau (“FSD”). In Hong Kong, a depositor 500,000 by Hong Kong Deposit Protection Board (“DPB”). In the United States, the standard insurance amount 250,000 per depositor in a bank insured by the Federal Deposit Insurance Corporation (“FDIC”). Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash equivalents, time deposits and accounts receivable. 1,512,000 1,382,000 33,949,000 24,312,000 With respect to accounts receivable, the Company generally does not require collateral and does not have an allowance for doubtful accounts. Year ended Year ended Year ended Amount % of Amount % of Amount % of Farglory Life Insurance Co., Ltd. $ 18,617,293 26 % $ 23,684,774 34 % $ 17,649,359 36 % Taiwan Life Insurance Co., Ltd. (**) 9,309,759 13 % 8,381,587 12 % 6,112,311 13 % TransGlobe Life Insurance Inc. 8,168,837 11 % (*) (*) 4,729,565 10 % Fubon Life Insurance Co., Ltd. (*) (*) 7,167,163 10 % 6,744,014 14 % (*) Revenue for the year ended had not exceeded 10% or more of the consolidated revenue. (**) Taiwan Life Insurance Co., Ltd. was formerly known as CTBC Life Insurance Co., Ltd. December 31, 2017 December 31, 2016 December 31, 2015 Amount % of Total Amount % of Total Amount % of Total Farglory Life Insurance Co., Ltd. $ 3,430,661 26 % $ 6,503,843 41 % $ 3,689,404 43 % Taiwan Life Insurance Co., Ltd. (**) 2,192,668 17 % 1,973,410 13 % 994,978 11 % TransGlobe Life Insurance Inc. 1,811,401 14 % (*) (*) % 747,993 8 % Fubon Life Insurance Co., Ltd (*) (*) 1,660,685 11 % 990,327 11 % (*) The related revenue for the year ended had not exceeded 10% or more of the consolidated revenue. (**) Taiwan Life Insurance Co., Ltd. was formerly known as CTBC Life Insurance Co., Ltd. The Company’s operations are in the PRC, Hong Kong 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, Hong Kong 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, Hong Kong 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. 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,” The Company managed and reviewed its business as three operating segments. The business of CU WFOE, CU Hong Kong and the Company’s Consolidated Affiliated Entities (“CAE”) in PRC was managed and reviewed as the PRC segment. The business of AHFL and its subsidiaries in Taiwan was managed and reviewed as Taiwan segment. The business of PFAL was managed and reviewed as Hong Kong segment. The PRC and Taiwan segments are substantially all of the reported consolidated amounts. Please refer to Note 26 for additional information on the segment reporting. 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. Variable Interest Entities The Company follows FASB ASC Subtopic 810-10-05-8, “Consolidation of VIEs,” a. The power, through voting rights or similar rights, to direct the activities of a legal entity that most significantly impact the entity’s economic performance b. The obligation to absorb the expected losses of the legal entity c. The right to receive the expected residual returns of the legal entity. 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 with its two subsidiaries in the PRC. On January 17, 2011, CU WFOE and Anhou and Anhou Original Shareholders entered into the VIE Agreements (the “First VIE Agreements”) 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) RMB 1 0.16 · 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, on October 24, 2013, CU WFOE, Anhou and Anhou Existing Shareholders entered into a series of variable interest agreements (the “Second VIE Agreements”), including Power of Attorneys, Exclusive Option Agreements, Share Pledge Agreements, in the same form as the First VIE Agreements, other than the change of shareholder names and their respective shareholdings. The First 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 years ended December 31, 2017, 2016 and 2015, no event including a-d above took place that would change the Company’s primary beneficiary status. Guidance for Accounting Impacts of the Tax Cuts and Jobs Act Income Tax Accounting Implications of the Tax Cuts and Jobs Act On December 22, 2017, the 2017 Tax Cuts and Jobs Act (the “Tax Reform Act”) was enacted into law and the new legislation contains several key tax provisions that impact the Company, including a reduction of the corporate income tax rate to 21 As of December 31, 2017, there are no material elements of the Tax Reform Act for which the Company’s accounting is complete. While the Company's accounting for the following elements of the Tax Reform Act is incomplete, the Company was able to make reasonable estimates of the tax effect with respect to the reduction of the federal corporate tax rate. The Company has determined that the tax rate reduction does not have any material impact on the current consolidated financial statements. The Company's accounting for the following law changes of the Tax Reform Act is incomplete, and it is not yet able to make reasonable estimates of the effects. Therefore, no provisional adjustment was recorded. One-time transition tax is based on the Company’s total post-1986 earnings and profits (“E&P”) that it previously deferred from U.S. income taxes. The Company has a significant number of foreign subsidiaries and therefore has not yet completed its calculation of the total post-1986 E&P as well as non-U.S. income taxes paid for these foreign subsidiaries. In addition, the Tax Reform Act also creates a new requirement that certain income (i.e., GILTI) earned by controlled foreign corporations (“CFCs”) must be included currently in the gross income of the CFCs’ U.S. shareholder. GILTI is the excess of the shareholder’s net CFC tested income over the net deemed tangible income return, which is currently defined as the excess of (1) 10 percent of the aggregate of the U.S. shareholder’s pro rata share of the qualified business asset investment of each CFC with respect to which it is a U.S. shareholder over (2) the amount of certain interest expense taken into account in the determination of net CFC-tested income. The Company is continuing to evaluate the provision of the Tax Reform Act and the application of ASC 740. Adoption of New Accounting Standards Balance Sheet Classification of Deferred Taxes In November 2015, the FASB issued ASU 2015-17, " Income Taxes (Topic 740) - Balance Sheet Classification of Deferred Taxes. 123,406 59,233 Accounting Standards Issued but Not Yet Adopted Revenue Recognition In May 2014, the FASB issued a new accounting standard on revenue from contracts with customers, which, when effective, will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principal of the standard is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments, changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. The new guidance is effective for us in the first quarter of 2018. Two methods of transition are permitted upon adoption: full retrospective and modified retrospective. The Company will adopt this standard in the first quarter of 2018 using a modified retrospective adoption approach. Under this approach, prior periods will not be restated. Rather, revenues and other disclosures for prior periods will be provided in the notes to the financial statements as previously reported under the current revenue standard, and the cumulative effect of initially applying the new standard will be recognized as an adjustment to retained earnings as of January 1, 2018. An assessment to determine the impacts of the new accounting standard has been performed. The Company implemented new accounting and operational processes which were a result of the new guidance and analyzed the impact of these changes. The primary impacts of the new standard to the Company are expected to be as follows: Revenue - The revenue recognition for commissions derived from insurance agency and brokerage services has been accelerated from historical patterns, recognition when the monthly or quarterly remuneration becomes determinable, to the recognition of an estimate of expected commissions upon the policy effective date. Under the new guidance, the Company will also need to defer certain revenues to reflect delivery of services over the contract period. As a result, revenue from certain arrangements will be recognized in earlier periods under the new guidance in comparison to our current accounting policies, and others will be recognized in later periods. This change is anticipated to result in a significant shift in timing of interim revenue. Contract Costs - The assets recognized for the costs to obtain and/or fulfill a contract will be amortized on a systematic basis that is consistent with the transfer of the services to which the asset relates. These costs, including certain sales commissions and internal costs related to pre-placement broking activities, were previously expensed as incurred. As such, the Company expects the recognition of costs to shift among quarters. For situations where the amortization period of the asset is one year or less, the Company plans to apply a practical expedient and recognize the costs of obtaining a contract as an expense when incurred. Leases In February 2016, the FASB issued ASU 2016-02, Leases Leases Credit Losses In June 2016, the FASB issued ASC Update No. 2016-13, (Topic 326), Financial Instruments Credit Losses: Measurement of Credit Losses on Financial Instruments Restricted Cash In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU No. 2016-18”) Simplifying the Test for Goodwill Impairment In January 2017 the FASB issued ASU 2017-04, “ IntangiblesGoodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment IntangiblesGoodwill and Other statements. The Company does not believe that new accounting pronouncements other than disclosed above will have a material impact on its financial position, results of operations or cash flows. |
CASH AND CASH EQUIVALENTS AND T
CASH AND CASH EQUIVALENTS AND TIME DEPOSITS | 12 Months Ended |
Dec. 31, 2017 | |
Cash And Cash Equivalents And Time Deposits [Abstract] | |
Cash And Cash Equivalents And Time Deposits Disclosure [Text Block] | NOTE 3 CASH AND CASH EQUIVALENTS AND TIME DEPOSITS December 31, December 31, Cash and cash equivalents: Cash in banks and on hand $ 11,774,489 $ 17,713,744 Cash equivalent re-purchase bonds 2,697,628 - Time deposits with original maturities less than three months 1,001,832 2,455,711 15,473,949 20,169,455 Time deposits with original maturities over three months but less than one year 21,470,113 5,352,347 Total cash and cash equivalents and time deposits $ 36,944,062 $ 25,521,802 On December 22, 2017, the Company and China Bills Finance Corporation entered into a repurchase agreement to purchase re-purchase bonds of $ 2,697,628 80,000,000 0.38 As of December 31, 2017, the Company had time deposits of approximately $ 1,686,017 50,000,000 |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash, Cash Equivalents, and Marketable Securities [Text Block] | NOTE 4 MARKETABLE SECURITIES Marketable securities represented investment in equity securities of listed stocks and funds as follows: December 31, 2017 Gross Unrealized Total Cost Gains Fair Value Trading: Funds $ 33,117 $ 264 $ 33,381 $ 33,117 $ 264 $ 33,381 December 31, 2016 Fair Value at Gross Fair Value at December 31, Unrealized December 31, 2015 Gains 2016 Trading: Stocks $ 28,863 $ 9,900 $ 38,763 Funds 2,340,219 47,888 2,388,107 $ 2,369,082 $ 57,788 $ 2,426,870 |
STRUCTURED DEPOSIT
STRUCTURED DEPOSIT | 12 Months Ended |
Dec. 31, 2017 | |
Structured Deposit Disclosure [Abstract] | |
Structured Deposit Disclosure [Text Block] | NOTE 5 STRUCTURED DEPOSIT On July 7, 2017, the Company entered into an agreement with Cathay United Bank to purchase a 185-day structured deposit in effective on July 7, 2017 and mature January 8, 2018 , with principal approximately $1,229,563 ( 8,000,000 The structured deposit has an embedded foreign exchange option linked to US Dollar to China Yuan offshore exchange rate (“USDCNH”). Strike price of the structured deposit is set at 7.3 USDCNH and the fixing date is on January 4, 2018. Yield rate will be at 4.1% per annum when the USDCNH is above or equal strike price on the fixing date, or at 3.9% per annum when blow. 3.9 December 31, 2017 Cost Gross Total Structured deposit $ 1,278,551 $ (30,211) $ 1,248,340 $ 1,278,551 $ (30,211) $ 1,248,340 |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets [Text Block] | NOTE 6 OTHER CURRENT ASSETS December 31, 2017 December 31, 2016 Loan receivable $ 1,510,347 $ 1,486,846 Prepaid rent and rent deposits 213,688 199,022 Prepaid expenses 87,947 64,678 Other receivables 135,996 50,683 Refundable business tax 150,221 17,441 Interest receivable 94,887 12,648 Total other current assets $ 2,193,086 $ 1,831,318 On October 24, 2016, the Company entered into a loan agreement with a third party, Rich Fountain Limited (“RFL”), a company incorporated under the laws of Samoa. The Company provided a short-term loan approximately $ 1,618,577 48,000,000 4.5 The Company received partial payment of approximately $ 71,974 2,134,440 36,256 1,075,200 1,510,347 44,790,360 . |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 7 PROPERTY, PLANT AND EQUIPMENT, NET December 31, 2017 December 31,2016 Office equipment $ 1,198,456 $ 1,070,061 Office furniture 103,025 168,658 Leasehold improvements 761,522 581,964 Transportation equipment 221,477 132,344 Other equipment 90,990 87,302 Total 2,375,470 2,040,329 Less: accumulated depreciation (1,429,168) (1,113,424) Total property, plant and equipment, net $ 946,302 $ 926,905 Depreciation expense was $ 325,212 315,344 332,715 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 8 INTANGIBLE ASSETS December 31, 2017 December 31, 2016 Software $ 1,797,227 $ 1,500,339 Less: accumulated amortization (1,021,449) (716,120) Total intangible assets $ 775,778 $ 784,219 Years ending December 31, Amount 2018 $ 258,824 2019 222,200 2020 190,875 2021 78,270 2022 25,609 Thereafter - Total $ 775,778 Amortization expense was $ 235,972 310,684 130,486 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2017 | |
Acquisition And Goodwill [Abstract] | |
Goodwill Disclosure [Text Block] | NOTE 9 GOODWILL Goodwill arose from the acquisition of PFAL in April 2014. The fair value of the net identifiable assets of PFAL at acquisition date was $ 324,871 51 165,684 31,651 . |
LONG-TERM INVESTMENTS
LONG-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Long Term Investment [Abstract] | |
Long Term Investment [Text Block] | NOTE 10 LONG-TERM INVESTMENTS December 31, 2017 December 31, 2016 Equity investment accounted for the cost method $ 1,296,039 $ 1,190,558 Government bonds held for available-for-sale 103,723 94,506 Total long-term investments $ 1,399,762 $ 1,285,064 Type Investee Investment December 31, December 31, Cost Method Genius Insurance Broker Co., Ltd 15.64 % $ 1,296,039 $ 1,190,558 Government bonds held for available-for-sale According to Taiwan Regulations Governing Deposit of Bond and Acquirement of Insurance by Insurance Agents, Insurance Brokers and Insurance Surveyors (“RGDBAI”) Article 3 requirement, Law Broker is required to maintain a minimum of NTD 3,000,000 101,161 92,928 December 31, 2017 Fair Value at Gross Fair Value at December 31, Unrealized December 31, 2016 Gains 2017 Government bonds 94,506 9,217 103,723 $ 94,506 $ 9,217 $ 103,723 December 31, 2016 Fair Value at Gross Fair Value at December 31, Unrealized December 31, 2015 Gains 2016 Government bonds 94,381 125 94,506 $ 94,381 $ 125 $ 94,506 |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets Disclosure [Text Block] | NOTE 11 OTHER ASSETS December 31, 2017 December 31, 2016 Rental deposits $ 508,352 $ 445,283 Register capital deposit 1,075,867 - Restricted cash 469,615 248,803 Prepayments 140,404 5,576 Deferred tax assets 123,406 84,597 Other 82,231 1,456 Total other assets $ 2,399,875 $ 785,715 According to China Insurance Regulatory Commission No. 82, promulgated 10 Restricted cash was a deposit in the bank by the Company in conformity with Provisions of the Supervision and Administration of Specialized Insurance Agencies, which is not allowed to be withdrawn without the permission of the regulatory commission, and the trust account for Law Broker’s general manager’s bonus plans. |
TAXES PAYABLE
TAXES PAYABLE | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Taxes Payable Disclosure [Text Block] | NOTE 12 TAXES PAYABLE December 31, 2017 December 31, 2016 PRC Tax $ 270,267 $ 163,461 Hong Kong Tax 5,527 14,233 Taiwan Tax 3,232,996 2,072,175 Total taxes payable $ 3,508,790 $ 2,249,869 PRC tax represents income tax and other taxes accrued according to PRC tax law by the Company’s subsidiaries and CAE in the PRC. Taiwan tax represents income tax and other taxes accrued according to Taiwan tax law by the Company’s subsidiaries and branches in Taiwan. Hong Kong tax represents income tax accrued according to Hong Kong tax law by the Company’s subsidiaries in Hong Kong. |
SHORT-TERM LOANS
SHORT-TERM LOANS | 12 Months Ended |
Dec. 31, 2017 | |
Short-term Debt [Abstract] | |
Short-term Debt [Text Block] | NOTE 13 SHORT-TERM LOANS The Company’s short-term loans consisted of the following as of December 31, 2017 and 2016: December 31, 2017 December 31, 2016 Credit facility, O-Bank $ 1,400,000 $ - Credit facility, CTBC 950,000 - Total short-term loans $ 2,350,000 $ - The Company entered into three credit agreements with several commercial banks during the fiscal year 2017 as follows: · O-Bank Co., Ltd. (“O-Bank”): The Company entered into a line of credit agreement with O-Bank for a $ 1,500,000 0.5 600,000 2.35 800,000 2.70 1,686,017 50,000,000 · CTBC Bank Co., Ltd. (“CTBC”): On November 17, 2017, the Company entered into a line of credit agreement with CTBC, pursuant to which the Company has a credit facility of $ 1,000,000 1 950,000 3.30 · Far Eastern International Bank(“FEIB”): On September 21, 2017, the Company entered into a line of credit agreement with FEIB for a credit facility of $ 2,000,000 1.3 1.25 Total interest expense of short-term loans was $ 1,531 |
CONVERTIBLE BONDS
CONVERTIBLE BONDS | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | NOTE 14 CONVERTIBLE BONDS The Company intends to issue the convertible bonds during the period commencing on June 23, 2016 and ended on September 30, 2016 with an aggregate principal amount of up to $ 10,000,000 100,000 6 The conversion price shall be the product of (i) the average closing trading price for the 10 business days immediately prior to the conversion date times (ii) 80%. On June 23, 2016, the Company had issued two units of its convertible bonds with an aggregate principal amount of $ 200,000 200,000 12,000 $ 6,363 years and 2016, respectively |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities Disclosure [Text Block] | NOTE 15 OTHER CURRENT LIABILITIES December 31, 2017 December 31, 2016 Commissions payable to sales professionals $ 6,415,071 $ 11,869,181 AIATW and Farglory 1,237,684 2,090,718 Due to previous shareholders of AHFL - 480,559 Accrued business tax 487,586 469,259 Withholding tax 347,824 362,954 Accrued tax penalties - 370,000 Accrued bonus 1,730,278 1,935,091 Salary payable to administrative staff 1,194,725 183,066 Accrued labor, health insurance and employee retirement plan 114,556 92,085 Accrued advertisement expense - 32,525 Accrued bonus for Ms. Chao 210,752 - Other accrued liabilities 1,051,112 754,471 Total other current liabilities $ 12,789,588 $ 18,639,909 Commissions payable to sales professionals, accrued bonus, salaries payable to administrative staff, and accrued advertisement expense are usually settled within 12 months. Accrued business tax, withholding tax, accrued labor, health insurance and employee retirement plan will be paid to the related government departments within one month. Accrued tax penalties are estimated potential penalty in the event of a tax audit. Other accrued liabilities consist of accrued interest, accrued marketing expense and operating expenses payable for training and travelling. See Note 17 for additional information on current liabilities related to AIA International Limited Taiwan Branch (“AIATW”) and Farglory, due to previous shareholders of AHFL, and accrued bonus for Ms. Chao. |
LONG-TERM LOANS
LONG-TERM LOANS | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-term Debt [Text Block] | NOTE 16 LONG-TERM LOANS The Company’s long-term loans consisted of the following as of December 31, 2017 and 2016: December 31, 2017 December 31, 2016 Loan A, interest at 8% per annum, maturity date May 15, 2019 $ 130,641 $ 144,015 Loan B, interest at 8% per annum, maturity date July 20, 2019 118,345 110,892 Total long-term loans $ 248,986 $ 254,907 On May 15, 2016, Anhou entered into a loan agreement (“Loan A”) with an individual third party. The long-term Loan Agreement provided for 130,641 (RMB 850,000 and $ 144,015 850,000 8 May 15, 2019 On July 20, 2016, Anhou entered into a loan agreement (“Loan B”) with an individual third party. The long-term Loan Agreement provided for approximately $ 118,345 770,000 and $ 110,892 770,000 8 annum and interest is payable annually. The principal and the accrued interest will be due on July 20, 2019 Total interest expenses for the long-term loans were $ 20,737 11,755 |
LONG-TERM LIABILITIES
LONG-TERM LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Other Long-Term Liabilities Disclosure [Text Block] | NOTE 17 LONG-TERM LIABILITIES The Company’s long-term liabilities consisted of the following as of December 31, 2017 and 2016: December 31, 2017 December 31, 2016 Unearned revenue AIATW $ 4,239,130 $ 4,742,272 Unearned revenue Farglory - 495,615 Deferred tax liabilities 122,551 - Due to previous shareholders of AHFL 480,559 - Other long-term liabilities - 77,440 Total long-term liabilities $ 4,842,240 $ 5,315,327 Unearned revenue AIATW On June 10, 2013, AHFL entered into a Strategic Alliance Agreement (the “Alliance Agreement”) with AIATW, the purpose to which is to promote life insurance products provided by AIATW within Taiwan by insurance agencies or brokerage companies affiliated with AHFL or CUIS. The original term of the Alliance Agreement was from June 1, 2013 to May 31, 2018. Pursuant to the terms of the Alliance Agreement, AIATW paid AHFL an execution fee approximately $ 8,326,700 250,000,000 11,904,762 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 on a pro rata basis when the performance targets are not met were revised. On January 6, 2016, AHFL entered into an Amendment 2 to Strategic Alliance Agreement (the “Amendment No. 2”) with AIATW to further revise certain provisions in the Strategic Alliance Agreement and the previous amendment entered into by and between AHFL and AIATW. To the extent permitted by applicable laws and regulations, AHFL shall assist and encourage any insurance agency company or insurance brokerage company duly approved by the competent government authorities of Taiwan (the “Appointed Broker/Agent”), to cooperate with AIATW for the promotion of life insurance products of AIATW. Pursuant to the Amendment No. 2, the expiration date of the Strategic Alliance Agreement was extended from May 31, 2018 to December 31, 2021, and the effect of the Strategic Alliance Agreement during the period from October 1, 2014 to December 31, 2015 was suspended. In addition, both AHFL and AIATW agreed to adjust certain terms and conditions set forth in the Strategic Alliance Agreement, among which: (i) expand the scope of services to be provided by AHFL to AIATW to include, without limitation, assessment and advice on suitability of cooperative partners, advice on product strategies suitable for promotion channel development, advice on promotion/sales channel improvement, advice on promotion channel marketing and strategic planning, and promotion channel talent training; and (ii) remove certain provisions related to performance milestones and refund of Execution Fees. On March 15, 2016, AHFL issued a promise letter (the “2016 Letter”) to AIATW that AHFL is required to (i) fulfill sales targets and (ii) the 13-month persistency ratio. On June 14, 2017, with AIATW’s consent, the 2016 Letter was revoked in order to conform with the latest terms and conditions regarding the cooperation between AHFL and AIATW as set forth in a third amendment (Amendment No. 3). Pursuant to the Amendment No. 3, both AHFL and AIATW agreed to adjust certain terms and conditions set forth this amendment, among which (i) except the first contract year (April 15th, 2013 to September 30th, 2014), the sales target of the alliance between the parties shall be changed to (a) value of new business (“VONB”) and (b) the 13-month persistency ratio; and (ii) AIATW will calculate and recognize the VONB and 13-month persistency ratio each contract year and inform the Company the result; and (iii) the Company agrees to return the basic business promotion fees to AIATW within thirty (30) days of receipt of the notice sent by AIATW if the Company fails to meet the targets set forth in Amendment No. 3, AIATW reserves the right to offset such amount against the amount payable by it to the Company; and (iv) upon the termination of the Alliance Agreement and its amendments pursuant to the Section 8.2 of the Alliance Agreement, both parties agreed to calculate the amount to be returned or repaid, as applicable, based on the past and current contract years. The Company shall return the basic business promotion fees at NTD 330,000,000 The Company recognizes AIATW’s revenue when the life insurance products provided by AIATW are met: (i) persuasive evidence of an agreement between the insurance company and insured exists, (ii) insurance brokerage services have been provided, (iii) the fee to be paid by the related insurer to the Company for such services is fixed or determinable, and (iv) the collectability of the fee is reasonably assured. The refund is primarily due to the portion of performance sales targets are not met in that contract year. Contract Period Execution Fees Revenue Revenue VAT Refund Amount Refund VAT First 4/15/2013 ~ 9/30/2014 NTD 50,000,000 NTD 27,137,958 (1) NTD 1,356,898 NTD 20,481,090 (1) NTD 1,024,054 Second 1/1/2016 ~ 12/31/2016 NTD 35,000,000 NTD 12,855,000 (2) NTD 642,750 NTD 20,478,333 (2) NTD 1,023,917 Third 1/1/2017 ~ 12/31/2017 NTD 33,000,000 NTD 12,628,201 (3) NTD 631,410 NTD 18,800,370 (3) NTD 940,019 Fourth 1/1/2018 ~ 12/31/2018 NTD 33,000,000 NTD - NTD - NTD - NTD - Fifth 1/1/2019 ~ 12/31/2019 NTD 33,000,000 NTD - NTD - NTD - NTD - Sixth 1/1/2020 ~ 12/31/2020 NTD 33,000,000 NTD - NTD - NTD - NTD - Seventh 1/1/2021 ~ 12/31/2021 NTD 33,000,000 NTD - NTD - NTD - NTD - TOTAL NTD 250,000,000 NTD 52,621,159 NTD 2,631,058 NTD 59,759,793 NTD 2,987,990 (1) The revenue recognition for the first contract year is based on the annual first year premium (“AFYP”) set in Alliance Agreement, which is difference from other contract years. From the second contract year to the seventh contract year, the revenue calculation is based on VONB. The Company recognized the first contract year’s revenue 892,742 27,137,958 net of Value-Added Tax (“VAT”). On December 3, 2015 and February 23, 2016, the Company refunded the amounts of 160,573 4,761,905 net of VAT, 530,056 15,719,185 net of VAT, (2) For the year ended December 31, 2017, the Company recognized the second contract year’s revenue amount 422,883 12,855,000 net of VAT, and refunded the 690,537 20,478,333 , net of VAT, for the same contract period. (3) For the year ended December 31, 2017, the Company estimated to recognize the third contract year’s revenue amount 415,423 12,628,201 net of VAT, and refund the amount 633,955 18,800,370 , net of VAT, for the same contract period based on the calculation of VONB and 13-month persistency. 1,731,048 52,621,159 4,239,130 4,742,272 amounts in current liabilities 633,955 1,966,814 Unearned revenue Farglory On April 20, 2016, the Company entered into a service agreement (“Service Agreement”) with Farglory Life Insurance Co., Ltd. (“Farglory”). The Company is to provide consulting services to Farglory for NTD 4,000,000 20,000,000 On January 2, 2018, both parties reached the final agreement and the Company received termination notice from Farglory. Pursuant to the termination notice, the Company should refund approximately $ 603,729 17,904,000 495,615 and amounts 603,729 123,904 For the year ended December 31, 2017, the Company recognized revenue amount of $ 68,951 2,096,000 603,729 Due to previous shareholders of AHFL Due to previous shareholders of AHFL is the remaining balance payable of the acquisition cost. The Company and the selling shareholders of AHFL entered into a third Amendment to the Acquisition Agreement (the “Third Amendment”), pursuant to which, the Company committed to distribute the cash payment in the amount approximately $ 676,466 22.5 153,097 4,830,514 $ 480,559 15 Other long-term liabilities On May 10, 2016, Law Broker entered into an engagement agreement (“Engagement Agreement”) with Hui-Hsien Chao (“Ms. Chao”), pursuant to which, she acts as the general manager of Law Broker for and a term from December 29, 2015 to December 28, 2018. Ms. Chao’s primary responsibilities are to assist Law Broker in operating and managing insurance agency business. According to the Engagement Agreement, Ms. Chao’s Bonus plans include: 1) execution, 2) long-term service fees, 3) pension and 4) non-competition. The payment of such bonuses will only occur upon satisfaction of certain condition and subject to the terms in the Engagement Agreement. Ms. Chao acts as the general manager or equivalent position of Law Broker for a term of at least three years. On May 14, 2016, Law Broker and Ms. Chao entered into a supplementary agreement (“Supplementary Agreement”) to postpone her pension vesting date to December 29, 2016. Law Broker expects that none of the above-mentioned bonuses are to be paid prior to May 2019, and therefore it has recorded as long-term liabilities representing the corresponding portion of such bonuses accrued. On March 13, 2017, Law Broker and Ms. Chao entered into another amendment to Engagement Agreement dated May 10, 2016 to specify 1) Ms. Chao’s pension calculation assumption and start date, and 2) the non-competition provision start date. As of December 31, 2017 and 2016, the balance of such accrued long-term liabilities was 0 77,440 210,752 0 |
PREFERRED STOCK
PREFERRED STOCK | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders Equity Note [Abstract] | |
Preferred Stock [Text Block] | NOTE 18 PREFERRED STOCK 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 with $0.00001 par value. It currently has 1,000,000 shares of Series A Preferred Stock (“Series A Stock”) issued and outstanding as of December 31, 2017 and 2016. 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 the Company’s 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 from the extent that the rights and limitations of the common stock and the Series A Stock differ. Fully Paid and Nonassessable. All of the Company’s outstanding shares of preferred stock are fully paid and nonassessable. From the qualitative aspect, the Company notes the following regarding this deemed compensation: Ø Does not violate any debt or other contract covenants; Ø Does not change any earnings or EPS trends; Ø Does not affect any previous earnings or EPS guidance; Ø Does not affect any segment or class of revenue; Ø Does not affect any regulatory compliance matters; Ø Does not affect cash compensation of management; Ø 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 its 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 its stockholders, and may adversely affect the voting and other rights of the holders of its common stock. 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. |
STATUTORY RESERVES
STATUTORY RESERVES | 12 Months Ended |
Dec. 31, 2017 | |
Statutory Reserves [Abstract] | |
Statutory Reserves Disclosure [Text Block] | NOTE 19 STATUTORY RESERVES According to Taiwan accounting rules and corporation regulations, the Company’s subsidiaries in Taiwan must appropriate 10 25 Pursuant to the PRC regulations, the Company’s CAE are required to transfer 10 50 |
NON-CONTROLLING INTERESTS
NON-CONTROLLING INTERESTS | 12 Months Ended |
Dec. 31, 2017 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest Disclosure [Text Block] | NOTE 20 NON-CONTROLLING INTERESTS Non-controlling interests consisted of the following as of December 31, 2017 and 2016: Name of Controlled Entity % of Non- As of Net Income of Other As of Law Enterprise 34.05 % $ 17,386 $ (307,217) $ 46,591 $ (243,240) Law Broker 34.05 % 9,621,159 3,387,038 892,144 13,900,341 PFAL 49.00 % 232,414 (3,817) (518) 228,079 MKI 49.00 % (1,569) (548) - (2,117) PA Taiwan 49.00 % (95,448) (52,169) 2,175 (145,442) PTC Nanjing 49.00 % (2,400) (60) 495 (1,965) Total $ 9,771,542 $ 3,023,227 $ 940,887 $ 13,735,656 Name of Controlled Entity % of Non- As of Net Income of Other As of Law Enterprise 34.05 % $ 199,699 $ (307,583) $ 125,270 $ 17,386 Law Broker 34.05 % 7,197,128 2,402,245 21,786 9,621,159 PFAL 49.00 % 206,098 26,411 (95) 232,414 MKI 49.00 % (1,065) (504) - (1,569) PA Taiwan 49.00 % (26,292) (70,341) 1,185 (95,448) PTC Nanjing 49.00 % (837) (904) (659) (2,400) Total $ 7,574,731 $ 2,094,324 $ 147,487 $ 9,771,542 Restatement did not impact to non-controlling interests, see Note 27 for Restatement |
INCOME TAX
INCOME TAX | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes Excluding Taxes Payable Disclosure [Text Block] | Provision (benefit) for income taxes for the year ended December 31, 2017 consisted of: Year ended December 31, 2017 Federal State Foreign Total Current $ - $ - $ 3,426,326 $ 3,426,326 Deferred - - 87,391 87,391 Total $ - $ - $ 3,513,717 $ 3,513,717 Provision (benefit) for income taxes for the year ended December 31, 2016 consisted of: Year ended December 31, 2016 Federal State Foreign Total Current $ - $ - $ 2,207,581 $ 2,207,581 Deferred - - (87,983) (87,983) Total $ - $ - $ 2,119,598 $ 2,119,598 Provision (benefit) for income taxes for the year ended December 31, 2015 consisted of: Year ended December 31, 2015 Federal State Foreign Total Current $ - $ - $ 1,553,650 $ 1,553,650 Deferred - - (34,424) (34,424) Total $ - $ - $ 1,519,226 $ 1,519,226 Significant components of the deferred tax assets and liabilities for income taxes as of December 31, 2017 and 2016 consisted of the following: 2017 2016 Deferred tax assets Net operating loss carry-forward $ 874,934 $ 993,050 Others 123,406 84,597 Total $ 998,340 $ 1,077,647 Valuation allowance (874,934) (993,050) Net deferred tax assets - noncurrent $ 123,406 $ 84,597 Deferred tax liabilities - noncurrent $ 122,551 $ - A 100 123,406 84,597 122,551 CU WFOE and the VIE 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 10 Beginning for the year ended December 31, 2017 Anhou and its branches elected to file joint tax returns under PRC tax jurisdiction. Due to the adoption of this filing method, operating loss in the branches from the year 2016 and prior years can no longer deduct earnings beginning in the year 2017. However, any loss incurred in any of the branches in the joint tax return will be consolidated and any further loss in the joint tax return can be carried over to the five years from the year 2017. Due to the joint filing of tax returns for Anhou, the Company reversed deferred tax assets and related valuation allowance of $ 67,577 The Company’s subsidiaries in Taiwan are governed by the Income Tax Law of Taiwan and are generally subject to tax at 17 10 The Company’s subsidiaries in Hong Kong are governed by the Inland Revenue Ordinance Tax Law of Hong Kong and are generally subject to a profit tax at the rate of 16.5 Year ended Year ended Year ended US statutory rate 34 % 34 % 34 % Tax rate difference (18) % (20) % (22) % Tax base difference - % 1 % (1) % Income tax on undistributed earnings - % 10 % 10 % Loss in subsidiaries 3 % 5 % 15 % Un-deductible and non-taxable items 7 % - % - % Effective tax rate 26 % 30 % 36 % Un-deductible and non-taxable items mainly represent un-deductible expenses according to PRC tax laws and the non-taxable tax income or loss. 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 and the potential penalty was estimated to be $ 370,000 370,000 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE 22 RELATED PARTY TRANSACTIONS Due to related parties December 31, 2017 December 31, 2016 Due to Mr. Mao (CEO of the Company) $ 409,054 $ 361,379 Due to Xude Investment (Owned by Mr. Chwan Hau Li*) - 32,374 Due to Mr. Zhu (Legal Representative of Jiangsu) 2,128 1,994 Ms. Lu (Shareholder of Anhou) 161,380 - Due to Yuli Broker (Owned by Ms. Lee**) - 265 Due to Yuli Investment (Owned by Ms. Lee**) - 265 Due to I Health Management Corp*** 17,703 3,724 Total $ 590,265 $ 400,001 * Chwan Hau Li is a Director of the Company ** Mr. Lee is the Director of Law Broker *** 25% of I Health Management Corp’s shares are owned by Multiple Capital Enterprise, and 24% of Multiple Capital Enterprise’s shares are owned by members of Debt Forgiveness Related Parties Xude Investment was owned by Mr. Chwan Hau Li, Director of the Company. The outstanding balance as of December 31, 2016 was primarily related to the set-up fees on behalf of GHFL and GIC. In March 2017, Xude Investment agreed to forgive the Company’s debt. As of December 31, 2017, the Company has debt forgiveness recognized with a total amount of $ 32,937 Lease Agreements On July 1, 2016, the Company entered into a lease agreement with Yuli Broker to lease its Nan-King East Road office space in Taipei City. The lease term was for one year commencing on July 1, 2016 and ending on June 30, 2017, with an annual base rent approximately of $ 590 18,000 564 279 On July 1, 2016, the Company entered into a lease agreement with Yuli Investment to lease its Nan-King East Road office space in Taipei City. The lease term was for one year commencing on July 1, 2016 and ending on June 30, 2017, with an annual base rent approximately of $ 590 18,000 564 279 Advisory Agreements On May 2, 2016, the Company entered into an advisory agreement with I Health. Pursuant to the Advisory Agreement, I Health provided 10,000 Taiwan citizen’s health information to the Company for its new insurance product during May 2, 2016 to May 1, 2017. The total advisory fee was approximately $ 42,000 13,315 25,130 3,724 On December 7, 2016, the Company entered into an advisory agreement with Fu Chang Li (“Mr. Li,” the Director of the Company). Pursuant to this Advisory Agreement, Mr. Li provided investment consulting to the Company from December 7, 2016 to December 6, 2017. On December 7, 2017, both parties agreed to extend this advisory agreement from December 7, 2017 to December 6, 2018. The total advisory fee was approximately $ 59,000 1,800,000 59,214 0 Consulting Agreement On November 1, 2016, the Company entered into a consulting agreement with Apex Biz Solution Limited. (“Apex,” was formerly known as Prime Technology Corp.) Apex and PFAL are related parties of the Company because they are owned by the Company’s managment. According to the Agreement, the Company would provide administrative operational consulting services to Apex from November 1, 2016 through December 31, 2021. As of December 31, 2017 and 2016, the Company had account receivable amounted $ 17,231 6,660 50,053 6,356 |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments Disclosure [Text Block] | NOTE 23 COMMITMENTS Operating Leases 2,537,348 2,132,950 1,735,521 Twelve months ending December 31, 2018 $ 2,022,510 Twelve months ending December 31, 2019 877,362 Twelve months ending December 31, 2020 197,971 Twelve months ending December 31, 2021 50,461 Twelve months ending December 31, 2022 14,199 Thereafter - Total $ 3,162,503 |
FINANCIAL RISK MANAGEMENT AND F
FINANCIAL RISK MANAGEMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Financial Risk Management and Fair Values [Abstract] | |
Financial Risk Management and Fair Values Disclosure [Text Block] | NOTE 24 FINANCIAL RISK MANAGEMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS Financial Risk Management 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 cash 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 NTD, the functional currency for the subsidiaries in Hong Kong is HKD, and the functional currency for the subsidiaries and VIEs in PRC is RMB. The consolidated financial statements of the Company are in USD. The fluctuation of NTD, HKD and RMB will affect the Company’s 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. Fair Value of Financial Instruments Fair Value Carrying Level 1 Level 2 Level 3 Value Assets Time deposits $ - $ 22,471,945 $ - $ 22,471,945 Marketable securities: Fund 33,381 - - 33,381 Structured deposit - 1,248,340 - 1,248,340 Loan receivable (Other current assets in Note 6) - - 1,510,347 1,510,347 Long-term investment: Equity investment - - 1,941,800 1,296,039 Government bonds - 103,723 - 103,723 Liabilities Short-term loans $ - $ - $ 2,350,000 $ 2,350,000 Due to related parties - - 590,265 590,265 Convertible bonds - - 200,000 200,000 Long-term loans - - 248,986 248,986 The following table presents the fair value and carrying value of the Company’s financial assets and liabilities as of December 31, 2016: Fair Value Carrying Level 1 Level 2 Level 3 Value Assets Time deposits $ - $ 7,808,058 $ - $ 7,808,058 Marketable securities: Stocks 38,763 - - 38,763 Funds 2,388,107 - - 2,388,107 Loan receivable (Other current assets in Notes 6) - - 1,486,846 1,486,846 Long-term investment: Equity investment - - 1,288,279 1,190,558 Government bonds - 94,506 - 94,506 Liabilities Due to related parties $ - $ - $ 400,001 $ 400,001 Convertible bonds - - 200,000 200,000 Long-term loans - - 254,907 254,907 Time deposits The carrying amount approximates its fair value due to short-term duration Marketable securities The fair value of stocks and funds is generally valued based on quoted market prices in active markets. Structured deposit The fair value of the structured deposit is determined based on present value of the structured deposit, using annum yield of 3.9%. Loan receivable The Company’s loan receivable is determined based on 4.5 Equity investment The fair value of the Company’s equity investment was arrived at using the “Income Approach.” The calculation assumptions were based on the growth rate, cash discount rate (rate for weighted average cost of capital), and liquidity discount rate. Government bonds The fair value of government bonds is valued based on theoretical bond price in Taipei Exchange (formerly the Gre Tai Securities Market.) Short-term loans The fair value of the Company’s short-term loans had been determined based on the nature of the interest rates and the proximity to the issuance date. Due to related parties The amount due to related parties bears no interest and payable on demand. Convertible bonds The Company determined the fair value of the convertible bonds is 80 (10) Long-term loans - The fair value of the long-term loans were determined by discounted cash flows based on the interest rates. |
RECLASSIFICATIONS
RECLASSIFICATIONS | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Disclosure of Reclassification Amount [Text Block] | NOTE 25 RECLASSIFICATIONS Certain reclassifications have been made to the financial statements for prior years to conform to the current year’s presentation. The changes of the presentation were with respect to present time deposits as a line item on the consolidated balance sheets and reclassify deferred current tax assets from other current assets to other assets in accordance with FASB ASU No. 2015-17. The effects of the reclassifications for the prior year were reflected below. Consolidated Balance Sheet December 31, 2016 Original: Cash and cash equivalents $ 25,521,802 Other current assets 1,890,551 Other assets 726,482 Reclassified: Cash and cash equivalents $ 20,169,455 Time deposits 5,352,347 Other current assets 1,831,318 Other assets 785,715 Consolidated Statements of Cash Flows Year Ended Year Ended Original: Net cash used in investing activities $ (2,625,499) $ (383,843) Foreign currency translation 147,568 (832,294) Net increase in cash and cash equivalents 4,689,978 1,260,025 Cash and cash equivalents, beginning balance 20,831,824 19,571,799 Cash and cash equivalents, ending balance 25,521,802 20,831,824 Reclassified: Cash flows from investing activities: Purchases of time deposits $ (7,161,459) $ (9,562,553) Proceeds from maturities of time deposits 9,697,617 10,556,173 Net cash provided by (used in) investing activities (89,341) 609,777 Foreign currency translation 7,530 (564,053) Net increase (decrease) in cash and cash equivalents 7,086,098 2,521,886 Cash and cash equivalents, beginning balance 13,083,357 10,561,471 Cash and cash equivalents, ending balance 20,169,455 13,083,357 |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | NOTE 26 SEGMENT REPORTING For the years ended December 31, Geographical Areas 2017 2016 2015 (Restated) Revenue Taiwan $ 62,147,136 $ 61,208,145 $ 48,669,261 PRC 10,467,488 8,461,511 5,892,928 Hong Kong 302,096 325,408 461,577 Elimination adjustment (68,276) (61,058) - Total revenue $ 72,848,444 $ 69,934,006 $ 55,023,766 Income (loss) from operations Taiwan $ 12,109,928 $ 7,303,616 $ 3,073,888 PRC 489,017 (817,914) (1,525,560) Hong Kong 3,065 66,356 209,373 Elimination adjustment 141,410 132,432 42,884 Total income (loss) from operations $ 12,743,420 $ 6,684,490 $ 1,800,585 Depreciation and amortization expenses Taiwan $ 466,020 $ 541,461 $ 366,717 PRC 94,877 84,279 96,172 Hong Kong 287 288 312 Elimination adjustment - - - Total depreciation and amortization expenses $ 561,184 $ 626,028 $ 463,201 Interest income Taiwan $ 422,688 $ 234,316 $ 208,526 PRC 1,696 4,464 31,047 Hong Kong - 1 2 Elimination adjustment (85,215) (30,116) (9,066) Total interest income $ 339,169 $ 208,665 $ 230,509 Interest expenses Taiwan $ 98,746 $ 38,083 $ 9,720 PRC 21,844 11,755 - Hong Kong - - - Elimination adjustment (85,215) (30,116) (9,066) Total interest expenses $ 35,375 $ 19,722 $ 654 Income tax Taiwan $ 3,236,264 $ 2,095,827 $ 1,496,206 PRC 282,504 13,135 16,429 Hong Kong (5,051) 10,636 6,591 Elimination adjustment - - - Total income tax $ 3,513,717 $ 2,119,598 $ 1,519,226 Net income (loss) Taiwan $ 10,050,593 $ 5,803,241 $ 1,963,988 PRC 128,052 (844,778) (1,531,555) Hong Kong (7,790) 53,900 222,665 Elimination adjustment 7,010 7,220 6,187 Total net income (loss) $ 10,177,865 $ 5,019,583 $ 661,285 As of December 31, Geographical Areas 2017 2016 (Restated) Capital expenditures Taiwan $ (507,983) $ (835,564) PRC (34,445) (148,936) Hong Kong - - Total capital expenditures $ (542,428) $ (984,500) Long-lived assets Taiwan $ 1,612,125 $ 1,453,772 PRC 109,597 256,704 Hong Kong 358 648 Elimination adjustment - - Total long-lived assets $ 1,722,080 $ 1,711,124 Reportable assets Taiwan $ 96,399,321 $ 90,388,991 PRC 11,140,124 13,325,433 Hong Kong 643,881 561,708 Elimination adjustment (48,910,083) (54,908,429) Total reportable assets $ 59,273,243 $ 49,367,703 |
RESTATEMENT
RESTATEMENT | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block [Abstract] | |
Restatement of prior year financial statements [Text Block] | NOTE 27 RESTATEMENT The Company has restated its previously filed 2016 and 2015 consolidated financial statements to correct a material error related to the accounting for the acquisition of GHFL in 2015. The GHFL acquisition has been accounted for the acquisition of a business but upon reflection and further analysis, the Company has concluded that it would be more accurately accounted for as an asset acquisition. The restatement for 2016 consolidated financial statements: CONSOLIDATED BALANCE SHEET As of December 31, 2016 Previously Adjustment Restated ASSETS Current assets Cash and cash equivalents $ 25,521,802 $ (5,352,347 ) {b} $ 20,169,455 Time deposits - 5,352,347 {b} 5,352,347 Marketable securities 2,426,870 - 2,426,870 Accounts receivable, net 15,774,159 - 15,774,159 Other current assets 1,890,551 (59,233 ) {b} 1,831,318 Total current assets 45,613,382 (59,233 ) {b} 45,554,149 Property, plant and equipment, net 926,905 - 926,905 Intangible assets 784,219 - 784,219 Goodwill 2,071,491 (2,039,840 ) {a} 31,651 Long-term investment 1,285,064 - 1,285,064 Other assets 726,482 59,233 {b} 785,715 TOTAL ASSETS $ 51,407,543 $ (2,039,840 ) {a} $ 49,367,703 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Taxes payable $ 2,249,869 $ - $ 2,249,869 Due to related parties 400,001 - 400,001 Other current liabilities 18,639,909 - 18,639,909 Total current liabilities 21,289,779 - 21,289,779 - Convertible bonds 200,000 - 200,000 Long-term loans 254,907 - 254,907 Long-term liabilities 5,315,327 - 5,315,327 TOTAL LIABILITIES 27,060,013 - 27,060,013 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, 29,452,669 issued and outstanding 295 - 295 Additional paid-in capital 8,157,512 - 8,157,512 Statutory reserves 3,799,585 - 3,799,585 Retained earnings 3,286,562 (2,039,840 ) {a} 1,246,722 Accumulated other comprehensive gain/ (loss) (667,976 ) - (667,976 ) Stockholders’ equity attribute to parent’s shareholders 14,575,988 (2,039,840 ) {a} 12,536,148 Noncontrolling interests 9,771,542 - 9,771,542 TOTAL STOCKHOLDERS’ EQUITY 24,347,530 (2,039,840 ) {a} 22,307,690 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 51,407,543 $ (2,039,840 ) {a} $ 49,367,703 {a} The Company corrected the acquisition method from business acquisition to asset acquisition. The consideration provided in excess of fair market value of the purchased entity cannot be treated as goodwill. The excess payment is restated to compensation on asset acquisition. {b} See Note 25 for additional information on the reclassifications. The restatement for 2015 consolidated financial statements: CONSOLIDATED BALANCE SHEET As of December 31, 2015 Previously Adjustment Restated ASSETS Current assets Cash and cash equivalents $ 20,831,824 $ (7,748,467 ) {b} $ 13,083,357 Time deposits - 7,748,467 {b} 7,748,467 Marketable securities 2,369,082 - 2,369,082 Accounts receivable, net 9,630,993 - 9,630,993 Other current assets 1,055,015 - 1,055,015 Total current assets 33,886,914 - 33,886,914 Property, plant and equipment, net 918,798 - 918,798 Intangible assets 468,779 - 468,779 Goodwill 2,071,491 (2,039,840 ) {a} 31,651 Long-term investment 1,264,611 - 1,264,611 Other assets 791,223 - 791,223 TOTAL ASSETS $ 39,401,816 $ (2,039,840 ) {a} $ 37,361,976 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Taxes payable $ 1,521,962 $ - $ 1,521,962 Short-term loan 222,235 - 222,235 Due to related parties 945,932 - 945,932 Other current liabilities 10,870,750 - 10,870,750 Total current liabilities 13,560,879 - 13,560,879 - Long-term liabilities 6,594,530 - 6,594,530 TOTAL LIABILITIES 20,155,409 - 20,155,409 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, 29,452,669 issued and outstanding 295 - 295 Additional paid-in capital 8,157,512 - 8,157,512 Statutory reserves 2,385,327 - 2,385,327 Retained earnings 1,808,665 (2,039,840 ) {a} (231,175 ) Accumulated other comprehensive gain/ (loss) (680,133 ) - (680,133 ) Stockholders’ equity attribute to parent’s shareholders 11,671,676 (2,039,840 ) {a} 9,631,836 Noncontrolling interests 7,574,731 - 7,574,731 TOTAL STOCKHOLDERS’ EQUITY 19,246,407 (2,039,840 ) {a} 17,206,567 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 39,401,816 $ (2,039,840 ) {a} $ 37,361,976 CONSOLIDATED STATEMENT OF OPERATIONS AND OTHER COMPREHENSIVE INCOME / (LOSS) For the year ended December 31, 2015 Previously Adjustment Restated Revenue $ 55,023,766 - $ 55,023,766 Cost of revenue 35,423,762 - 35,423,762 Gross profit 19,600,004 - 19,600,004 Operating expenses: Selling 3,084,408 - 3,084,408 General and administrative 12,675,171 2,039,840 {a} 14,715,011 Total operating expense 15,759,579 2,039,840 {a} 17,799,419 Income from operations 3,840,425 (2,039,840 ) {a} 1,800,585 Other income (expenses) Interest income 230,509 - 230,509 Interest expense (654 ) - (654 ) Other - net 150,071 - 150,071 Total other income (expenses) 379,926 - 379,926 Income before income taxes 4,220,351 (2,039,840 ) {a} 2,180,511 Income tax expense 1,519,226 - 1,519,226 Net income (loss) 2,701,125 (2,039,840 ) {a} 661,285 Net income attributable to the noncontrolling interests 1,623,198 - 1,623,198 Net income (loss) attributable to parent’s shareholders 1,077,927 (2,039,840 ) {a} (961,913 ) Other comprehensive items Foreign currency translations gain(loss) (329,562 ) - (329,562 ) Other 310 - 310 Other comprehensive income (loss) attributable to parent’s shareholders (329,252 ) - (329,252 ) Other comprehensive items attributable to noncontrolling interests (477,738 ) - (477,738 ) Comprehensive income attributable to parent’s shareholders $ 748,675 (2,039,840 ) {a} $ (1,291,165 ) Comprehensive income attributable to noncontrolling interests $ 1,145,460 - $ 1,145,460 Weighted average shares outstanding: Basic 29,365,834 29,365,834 Diluted 30,365,834 29,365,834 Income per share: Basic $ 0.037 $ (0.033 ) Diluted $ 0.035 $ (0.033 ) {a} The Company corrected the acquisition method from business acquisition to asset acquisition. The consideration provided in excess of fair market value of the purchased entity cannot be treated as goodwill. The excess payment is restated to compensation on asset acquisition. {b} See Note 25 for additional information on the reclassifications. |
QUARTERLY INFORMATION
QUARTERLY INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | NOTE 28 QUARTERLY INFORMATION (UNAUDITED) As of March 31, 2017 Previously Adjustment Restated CONSOLIDATED BALANCE SHEET ASSETS Goodwill $ 2,071,491 $ (2,039,840) $ 31,651 TOTAL ASSETS 49,227,142 (2,039,840) 47,187,302 Retained earnings 4,152,250 (2,039,840) 2,112,410 Stockholders’ equity attribute to parent’s shareholders 16,701,244 (2,039,840) 14,661,404 TOTAL STOCKHOLDERS’ EQUITY 27,792,876 (2,039,840) 25,753,036 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 49,227,142 $ (2,039,840) $ 47,187,302 As of June 30, 2017 Previously Adjustment Restated CONSOLIDATED BALANCE SHEET ASSETS Goodwill $ 2,071,491 $ (2,039,840) $ 31,651 TOTAL ASSETS 48,983,681 (2,039,840) 46,943,841 Retained earnings 5,804,053 (2,039,840) 3,764,213 Stockholders’ equity attribute to parent’s shareholders 18,721,318 (2,039,840) 16,681,478 TOTAL STOCKHOLDERS’ EQUITY 30,295,360 (2,039,840) 28,255,520 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 48,983,681 $ (2,039,840) $ 46,943,841 As of September 30, 2017 Previously Adjustment Restated CONSOLIDATED BALANCE SHEET ASSETS Goodwill $ 2,071,491 $ (2,039,840) $ 31,651 TOTAL ASSETS 51,132,862 $ (2,039,840) 49,093,022 Retained earnings 6,663,807 $ (2,039,840) 4,623,967 Stockholders’ equity attribute to parent’s shareholders 20,077,289 (2,039,840) 18,037,449 TOTAL STOCKHOLDERS’ EQUITY 32,344,226 (2,039,840) 30,304,386 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 51,132,862 $ (2,039,840) $ 49,093,022 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 29 SUBSEQUENT EVENTS Taiwan Income Tax Law Amendment become effective in February 2018. Income tax rate of Taiwan has been changed from 17 20 On January 25, 2018, the Company draw down a borrowing of $1,500,000 from the credit agreement with FEIB. This borrowing bears an interest rate of 2.95 2,000,000 February 23, 2018 The Company plans to invest in its Yuli Broker, a related party owned by Ms. Lee. The application of the investment was approved by Investment Commission of the Ministry of Economic Affairs in Taiwan in January 2018. 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 that require recognition or disclosures in the consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN36
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | The accompanying consolidated financial statements include the accounts of China United, its subsidiaries and VIEs as shown in the corporate structure in Note 1. All intercompany transactions and balances have been eliminated in consolidation. Certain reclassifications have been made to the consolidated financial statements for prior years to the current year’s presentation. Such reclassifications have no effect on net income as previously reported. Please see Note 25, Reclassifications. |
Use of Estimates, Policy [Policy Text Block] | The preparation of the Company’s consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates and assumptions. |
Noncontrolling Interest [Policy Text Block] | Noncontrolling interest consists of direct and indirect equity interest in AHFL and its subsidiaries arising from the acquisition of AHFL by CUIS and acquisition of PFAL by AHFL in August 2012 and April 2014, respectively. The Company follows Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, “ Consolidation NCI 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. |
Comprehensive Income, Policy [Policy Text Block] | The Company follows FASB ASC Topic 220 (“ASC 220”), “Reporting Comprehensive Income,” |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | The Company’s financial statements are presented in U.S. dollars ($), which is the Company’s reporting and functional currency. The functional currencies of the Company’s subsidiaries are NTD, RMB and HKD. 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). Monetary assets and liabilities denominated in foreign currency are translated at the functional currency using the rate of exchange prevailing at the balance sheet date. Any differences are taken to profit or loss as a gain or loss on foreign currency translation in the consolidated statements of operations and other comprehensive income (loss). The Company translates the assets and liabilities into U.S. dollars using the rate of exchange prevailing at the balance sheet date and the statements of operations and cash flows are translated at an average rate during the reporting period. Adjustments resulting from the translation from NTD, RMB and HKD into U.S. dollars are recorded in stockholders’ equity as part of accumulated other comprehensive income. Average Rate for the years ended December 31, 2017 2016 2015 Taiwan dollar (NTD) NTD 30.39845 NTD 32.21390 NTD 31.73010 China yuan (RMB) RMB 6.75701 RMB 6.64301 RMB 6.21750 Hong Kong dollar (HKD) HKD 7.79223 HKD 7.76173 HKD 7.75210 United States dollar ($) $ 1.00000 $ 1.00000 $ 1.00000 Exchange Rate at December 31, 2017 December 31, 2016 Taiwan dollar (NTD) NTD 29.65568 NTD 32.28310 China yuan (RMB) RMB 6.50638 RMB 6.94370 Hong Kong dollar (HKD) HKD 7.81493 HKD 7.75434 United States dollar ($) $ 1.00000 $ 1.00000 |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and cash equivalents include cash on hand, bank deposits, and highly liquid investments with maturities of three months or less at the date of origination. |
Marketable Securities, Policy [Policy Text Block] | The Company invests part of its excessive cash in equity securities, money market funds, debt and equity funds. Such investments are included in “Marketable securities” in the accompanying consolidated balance sheets. Trading securities represent securities bought and held primarily for sale in the near-term to generate income on short-term price differences and are stated at fair value. Realized and unrealized gains and losses are recorded in other income (expense). |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Accounts receivable includes commission receivables and is stated at net realizable values. The Company reviews its accounts receivable regularly to determine if a bad debt allowance is necessary at each quarter-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, 2017 and 2016. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment Property, plant and equipment are stated at cost, less accumulated depreciation. Expenditures for improvements are capitalized; repairs and maintenance are charged to expense as incurred. Upon sale of retirement, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is recorded in other income (expense). Depreciation of office equipment, office furniture, leasehold improvements, transportation equipment and other equipment is computed using the straight-line method based on estimated useful lives ranging from one to ten years with estimated salvage value. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill represents the excess of acquisition cost over the fair value of the net assets in the acquisition of a business. Goodwill is not amortized but instead is tested for impairment annually or more frequently if events or changes in circumstances indicate it might be impaired, using two-step goodwill impairment test. The first step screens for potential impairment of goodwill to determine if the fair value 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 fair value of goodwill to its carrying value. As of December 31, 2017, and 2016, there were no indications of impairment of goodwill. Intangible assets, which primarily consist of software, are stated at cost, less accumulated amortization, and amortized over estimated useful lives ranging from 3 5 |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets Other than Goodwill The Company reviews the carrying values of the long-lived assets when circumstances warrant as to whether the carrying value has become impaired. The Company considers assets to be impaired if the carrying value of an asset exceeds the present value of future net undiscounted cash flows from its related operations. There were no impairment recognized for the years ended December 31, 2017, 2016 and 2015. |
Investment, Policy [Policy Text Block] | Long-Term Investments Long-term investments include government bonds held as available-for-sale and equity investments accounted for the cost method. Available-for-sale investments are carried at fair value and unrealized gains and losses as a result of changes in the fair value are recorded as a separate component within accumulated other comprehensive income in the accompanying consolidated balance sheets. The Company applies the cost method of accounting for investments in companies that do not have a readily determinable fair value in which it holds an interest of less than 20% and over which it does not have the ability to exercise significant influence. Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis in the investment is established. |
Debt, Policy [Policy Text Block] | Convertible debt is accounted for under the guidelines established by ASC 470-20 “ Debt with Conversion and Other Options |
Revenue Recognition, Policy [Policy Text Block] | The Company’s revenue is from insurance agency and brokerage services. The Company, through its subsidiaries and VIEs, 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 and brokerage 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 companies. For the fiscal years ended December 31, 2017, 2016 and 2015, policy cancellations were $ 227,901 340,086 291,325 The Company pays commissions to its sales professionals when an insurance product is sold by the sales professionals. The Company recognizes commission revenue from insurance companies on a gross basis, and the commissions paid to its sales professionals are recognized as cost of revenue. |
Income Tax, Policy [Policy Text Block] | The Company records income tax expense using the asset-and-liability method of accounting for deferred income taxes. 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. Deferred tax assets are reduced by a valuation allowance if, based on available evidence, it is more likely than not that the deferred tax assets will not 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 |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair value accounting establishes a framework for measuring fair value and expands disclosure about fair value measurements. Fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels 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 fair value. The carrying amounts of financial assets and liabilities in the consolidated balance sheets for cash and cash equivalents, accounts payable and accrued expense approximate fair value due to the short-term duration of those instruments. See Note 24 for additional information on the fair values related to other financial assets and liabilities. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | The Company maintains cash with banks in the USA, PRC, Hong Kong, and Taiwan. 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 3,000,000 insured by Central Deposit Insurance Corporation (“CDIC”). In China, a depositor has up to 500,000 insured by the People’s Bank of China Financial Stability Bureau (“FSD”). In Hong Kong, a depositor 500,000 by Hong Kong Deposit Protection Board (“DPB”). In the United States, the standard insurance amount 250,000 per depositor in a bank insured by the Federal Deposit Insurance Corporation (“FDIC”). Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash equivalents, time deposits and accounts receivable. 1,512,000 1,382,000 33,949,000 24,312,000 With respect to accounts receivable, the Company generally does not require collateral and does not have an allowance for doubtful accounts. Year ended Year ended Year ended Amount % of Amount % of Amount % of Farglory Life Insurance Co., Ltd. $ 18,617,293 26 % $ 23,684,774 34 % $ 17,649,359 36 % Taiwan Life Insurance Co., Ltd. (**) 9,309,759 13 % 8,381,587 12 % 6,112,311 13 % TransGlobe Life Insurance Inc. 8,168,837 11 % (*) (*) 4,729,565 10 % Fubon Life Insurance Co., Ltd. (*) (*) 7,167,163 10 % 6,744,014 14 % (*) Revenue for the year ended had not exceeded 10% or more of the consolidated revenue. (**) Taiwan Life Insurance Co., Ltd. was formerly known as CTBC Life Insurance Co., Ltd. December 31, 2017 December 31, 2016 December 31, 2015 Amount % of Total Amount % of Total Amount % of Total Farglory Life Insurance Co., Ltd. $ 3,430,661 26 % $ 6,503,843 41 % $ 3,689,404 43 % Taiwan Life Insurance Co., Ltd. (**) 2,192,668 17 % 1,973,410 13 % 994,978 11 % TransGlobe Life Insurance Inc. 1,811,401 14 % (*) (*) % 747,993 8 % Fubon Life Insurance Co., Ltd (*) (*) 1,660,685 11 % 990,327 11 % (*) The related revenue for the year ended had not exceeded 10% or more of the consolidated revenue. (**) Taiwan Life Insurance Co., Ltd. was formerly known as CTBC Life Insurance Co., Ltd. The Company’s operations are in the PRC, Hong Kong 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, Hong Kong 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, Hong Kong 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. |
Lessor, Leases [Policy Text Block] | 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,” |
Segment Reporting, Policy [Policy Text Block] | The Company managed and reviewed its business as three operating segments. The business of CU WFOE, CU Hong Kong and the Company’s Consolidated Affiliated Entities (“CAE”) in PRC was managed and reviewed as the PRC segment. The business of AHFL and its subsidiaries in Taiwan was managed and reviewed as Taiwan segment. The business of PFAL was managed and reviewed as Hong Kong segment. The PRC and Taiwan segments are substantially all of the reported consolidated amounts. Please refer to Note 26 for additional information on the segment reporting. |
Commitments and Contingencies, Policy [Policy Text Block] | 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. |
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | Variable Interest Entities The Company follows FASB ASC Subtopic 810-10-05-8, “Consolidation of VIEs,” a. The power, through voting rights or similar rights, to direct the activities of a legal entity that most significantly impact the entity’s economic performance b. The obligation to absorb the expected losses of the legal entity c. The right to receive the expected residual returns of the legal entity. 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 with its two subsidiaries in the PRC. On January 17, 2011, CU WFOE and Anhou and Anhou Original Shareholders entered into the VIE Agreements (the “First VIE Agreements”) 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) RMB 1 0.16 · 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, on October 24, 2013, CU WFOE, Anhou and Anhou Existing Shareholders entered into a series of variable interest agreements (the “Second VIE Agreements”), including Power of Attorneys, Exclusive Option Agreements, Share Pledge Agreements, in the same form as the First VIE Agreements, other than the change of shareholder names and their respective shareholdings. The First 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 years ended December 31, 2017, 2016 and 2015, no event including a-d above took place that would change the Company’s primary beneficiary status. |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements and Other Guidance Guidance for Accounting Impacts of the Tax Cuts and Jobs Act Income Tax Accounting Implications of the Tax Cuts and Jobs Act On December 22, 2017, the 2017 Tax Cuts and Jobs Act (the “Tax Reform Act”) was enacted into law and the new legislation contains several key tax provisions that impact the Company, including a reduction of the corporate income tax rate to 21 As of December 31, 2017, there are no material elements of the Tax Reform Act for which the Company’s accounting is complete. While the Company's accounting for the following elements of the Tax Reform Act is incomplete, the Company was able to make reasonable estimates of the tax effect with respect to the reduction of the federal corporate tax rate. The Company has determined that the tax rate reduction does not have any material impact on the current consolidated financial statements. The Company's accounting for the following law changes of the Tax Reform Act is incomplete, and it is not yet able to make reasonable estimates of the effects. Therefore, no provisional adjustment was recorded. One-time transition tax is based on the Company’s total post-1986 earnings and profits (“E&P”) that it previously deferred from U.S. income taxes. The Company has a significant number of foreign subsidiaries and therefore has not yet completed its calculation of the total post-1986 E&P as well as non-U.S. income taxes paid for these foreign subsidiaries. In addition, the Tax Reform Act also creates a new requirement that certain income (i.e., GILTI) earned by controlled foreign corporations (“CFCs”) must be included currently in the gross income of the CFCs’ U.S. shareholder. GILTI is the excess of the shareholder’s net CFC tested income over the net deemed tangible income return, which is currently defined as the excess of (1) 10 percent of the aggregate of the U.S. shareholder’s pro rata share of the qualified business asset investment of each CFC with respect to which it is a U.S. shareholder over (2) the amount of certain interest expense taken into account in the determination of net CFC-tested income. The Company is continuing to evaluate the provision of the Tax Reform Act and the application of ASC 740. Adoption of New Accounting Standards Balance Sheet Classification of Deferred Taxes In November 2015, the FASB issued ASU 2015-17, " Income Taxes (Topic 740) - Balance Sheet Classification of Deferred Taxes. 123,406 59,233 Accounting Standards Issued but Not Yet Adopted Revenue Recognition In May 2014, the FASB issued a new accounting standard on revenue from contracts with customers, which, when effective, will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principal of the standard is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments, changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. The new guidance is effective for us in the first quarter of 2018. Two methods of transition are permitted upon adoption: full retrospective and modified retrospective. The Company will adopt this standard in the first quarter of 2018 using a modified retrospective adoption approach. Under this approach, prior periods will not be restated. Rather, revenues and other disclosures for prior periods will be provided in the notes to the financial statements as previously reported under the current revenue standard, and the cumulative effect of initially applying the new standard will be recognized as an adjustment to retained earnings as of January 1, 2018. An assessment to determine the impacts of the new accounting standard has been performed. The Company implemented new accounting and operational processes which were a result of the new guidance and analyzed the impact of these changes. The primary impacts of the new standard to the Company are expected to be as follows: Revenue - The revenue recognition for commissions derived from insurance agency and brokerage services has been accelerated from historical patterns, recognition when the monthly or quarterly remuneration becomes determinable, to the recognition of an estimate of expected commissions upon the policy effective date. Under the new guidance, the Company will also need to defer certain revenues to reflect delivery of services over the contract period. As a result, revenue from certain arrangements will be recognized in earlier periods under the new guidance in comparison to our current accounting policies, and others will be recognized in later periods. This change is anticipated to result in a significant shift in timing of interim revenue. Contract Costs - The assets recognized for the costs to obtain and/or fulfill a contract will be amortized on a systematic basis that is consistent with the transfer of the services to which the asset relates. These costs, including certain sales commissions and internal costs related to pre-placement broking activities, were previously expensed as incurred. As such, the Company expects the recognition of costs to shift among quarters. For situations where the amortization period of the asset is one year or less, the Company plans to apply a practical expedient and recognize the costs of obtaining a contract as an expense when incurred. Leases In February 2016, the FASB issued ASU 2016-02, Leases Leases Credit Losses In June 2016, the FASB issued ASC Update No. 2016-13, (Topic 326), Financial Instruments Credit Losses: Measurement of Credit Losses on Financial Instruments Restricted Cash In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU No. 2016-18”) Simplifying the Test for Goodwill Impairment In January 2017 the FASB issued ASU 2017-04, “ IntangiblesGoodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment IntangiblesGoodwill and Other statements. The Company does not believe that new accounting pronouncements other than disclosed above will have a material impact on its financial position, results of operations or cash flows. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill represents the excess of acquisition cost over the fair value of the net assets in the acquisition of a business. Goodwill is not amortized but instead is tested for impairment annually or more frequently if events or changes in circumstances indicate it might be impaired, using two-step goodwill impairment test. The first step screens for potential impairment of goodwill to determine if the fair value 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 fair value of goodwill to its carrying value. As of December 31, 2017, and 2016, there were no indications of impairment of goodwill. Intangible assets, which primarily consist of software, are stated at cost, less accumulated amortization, and amortized over estimated useful lives ranging from 3 5 |
SUMMARY OF SIGNIFICANT ACCOUN37
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Intercompany Foreign Currency Balances [Table Text Block] | The exchange rates used for financial statements are as follows: Average Rate for the years ended December 31, 2017 2016 2015 Taiwan dollar (NTD) NTD 30.39845 NTD 32.21390 NTD 31.73010 China yuan (RMB) RMB 6.75701 RMB 6.64301 RMB 6.21750 Hong Kong dollar (HKD) HKD 7.79223 HKD 7.76173 HKD 7.75210 United States dollar ($) $ 1.00000 $ 1.00000 $ 1.00000 Exchange Rate at December 31, 2017 December 31, 2016 Taiwan dollar (NTD) NTD 29.65568 NTD 32.28310 China yuan (RMB) RMB 6.50638 RMB 6.94370 Hong Kong dollar (HKD) HKD 7.81493 HKD 7.75434 United States dollar ($) $ 1.00000 $ 1.00000 |
Schedule Of Revenue From Insurance Services [Table Text Block] | Year ended Year ended Year ended Amount % of Amount % of Amount % of Farglory Life Insurance Co., Ltd. $ 18,617,293 26 % $ 23,684,774 34 % $ 17,649,359 36 % Taiwan Life Insurance Co., Ltd. (**) 9,309,759 13 % 8,381,587 12 % 6,112,311 13 % TransGlobe Life Insurance Inc. 8,168,837 11 % (*) (*) 4,729,565 10 % Fubon Life Insurance Co., Ltd. (*) (*) 7,167,163 10 % 6,744,014 14 % (*) Revenue for the year ended had not exceeded 10% or more of the consolidated revenue. (**) Taiwan Life Insurance Co., Ltd. was formerly known as CTBC Life Insurance Co., Ltd. |
Schedule Of Accounts Receivable From Related Parties [Table Text Block] | As of December 31, 2017, 2016 and 2015, the Company’s accounts receivable from these companies were: December 31, 2017 December 31, 2016 December 31, 2015 Amount % of Total Amount % of Total Amount % of Total Farglory Life Insurance Co., Ltd. $ 3,430,661 26 % $ 6,503,843 41 % $ 3,689,404 43 % Taiwan Life Insurance Co., Ltd. (**) 2,192,668 17 % 1,973,410 13 % 994,978 11 % TransGlobe Life Insurance Inc. 1,811,401 14 % (*) (*) % 747,993 8 % Fubon Life Insurance Co., Ltd (*) (*) 1,660,685 11 % 990,327 11 % (*) The related revenue for the year ended had not exceeded 10% or more of the consolidated revenue. (**) Taiwan Life Insurance Co., Ltd. was formerly known as CTBC Life Insurance Co., Ltd. |
CASH AND CASH EQUIVALENTS AND38
CASH AND CASH EQUIVALENTS AND TIME DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Cash And Cash Equivalents And Time Deposits [Abstract] | |
Schedule Of Cash And Cash Equivalents And Time Deposits [Table Text Block] | Cash and cash equivalents and time deposits consisted of the following as of December 31, 2017 and 2016: December 31, December 31, Cash and cash equivalents: Cash in bank and on hand $ 11,774,489 $ 17,713,744 Cash equivalent re-purchase bonds 2,697,628 - Bank time deposits (*) 1,001,832 2,455,711 15,473,949 20,169,455 Bank time deposits (**) 21,470,113 5,352,347 Total cash and cash equivalents and time deposits $ 36,944,062 $ 25,521,802 (*) With original maturities less than three months (**) With original maturities over three months but less than one year |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities [Table Text Block] | Marketable securities represented investment in equity securities of listed stocks and funds as follows: December 31, 2017 Gross Unrealized Total Cost Gains Fair Value Trading: Funds $ 33,117 $ 264 $ 33,381 $ 33,117 $ 264 $ 33,381 December 31, 2016 Fair Value at Gross Fair Value at December 31, Unrealized December 31, 2015 Gains 2016 Trading: Stocks $ 28,863 $ 9,900 $ 38,763 Funds 2,340,219 47,888 2,388,107 $ 2,369,082 $ 57,788 $ 2,426,870 |
STRUCTURED DEPOSIT (Tables)
STRUCTURED DEPOSIT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Structured Deposit Disclosure [Abstract] | |
Schedule Of Structured Deposits [Table Text Block] | As of December 31, 2017, the Company used 3.9 December 31, 2017 Cost Gross Total Structured deposit $ 1,278,551 $ (30,211) $ 1,248,340 $ 1,278,551 $ (30,211) $ 1,248,340 |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016: December 31, 2017 December 31, 2016 Loan receivable $ 1,510,347 $ 1,486,846 Prepaid rent and rent deposits 213,688 199,022 Prepaid expenses 87,947 64,678 Other receivables 135,996 50,683 Refundable business tax 150,221 17,441 Interest receivable 94,887 12,648 Total other current assets $ 2,193,086 $ 1,831,318 |
PROPERTY, PLANT AND EQUIPMENT42
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property, plant and equipment consisted of the following, as of December 31, 2017 and 2016: December 31, 2017 December 31,2016 Office equipment $ 1,198,456 $ 1,070,061 Office furniture 103,025 168,658 Leasehold improvements 761,522 581,964 Transportation equipment 221,477 132,344 Other equipment 90,990 87,302 Total 2,375,470 2,040,329 Less: accumulated depreciation (1,429,168) (1,113,424) Total property, plant and equipment, net $ 946,302 $ 926,905 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | As of December 31, 2017 and 2016, the Company’s intangible assets consisted the following: December 31, 2017 December 31, 2016 Software $ 1,797,227 $ 1,500,339 Less: accumulated amortization (1,021,449) (716,120) Total intangible assets $ 775,778 $ 784,219 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Estimated future intangible assets amortization as of December 31, 2017 is as follows: Years ending December 31, Amount 2018 $ 258,824 2019 222,200 2020 190,875 2021 78,270 2022 25,609 Thereafter - Total $ 775,778 |
LONG-TERM INVESTMENTS (Tables)
LONG-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Long Term Investment [Abstract] | |
Available-for-sale Securities [Table Text Block] | As of December 31, 2017 and 2016, the Company’s long-term investments consisted the following: December 31, 2017 December 31, 2016 Equity investment accounted for the cost method $ 1,296,039 $ 1,190,558 Government bonds held for available-for-sale 103,723 94,506 Total long-term investments $ 1,399,762 $ 1,285,064 |
Schedule of Cost Method Investments [Table Text Block] | Equity investment accounted for the cost method Type Investee Investment December 31, December 31, Cost Method Genius Insurance Broker Co., Ltd 15.64 % $ 1,296,039 $ 1,190,558 |
Schedule Of Long Term Investment [Table Text Block] | December 31, 2017 Fair Value at Gross Fair Value at December 31, Unrealized December 31, 2016 Gains 2017 Government bonds 94,506 9,217 103,723 $ 94,506 $ 9,217 $ 103,723 December 31, 2016 Fair Value at Gross Fair Value at December 31, Unrealized December 31, 2015 Gains 2016 Government bonds 94,381 125 94,506 $ 94,381 $ 125 $ 94,506 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016: December 31, 2017 December 31, 2016 Rental deposits $ 508,352 $ 445,283 Register capital deposit 1,075,867 - Restricted cash 469,615 248,803 Prepayments 140,404 5,576 Deferred tax assets 123,406 84,597 Other 82,231 1,456 Total other assets $ 2,399,875 $ 785,715 |
TAXES PAYABLE (Tables)
TAXES PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule Of Taxes Payable [Table Text Block] | The Company’s taxes payable consisted of the following as of December 31, 2017 and 2016: December 31, 2017 December 31, 2016 PRC Tax $ 270,267 $ 163,461 Hong Kong Tax 5,527 14,233 Taiwan Tax 3,232,996 2,072,175 Total taxes payable $ 3,508,790 $ 2,249,869 |
SHORT-TERM LOANS (Tables)
SHORT-TERM LOANS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Short-term Debt [Abstract] | |
Schedule of Short-term Debt [Table Text Block] | December 31, 2017 December 31, 2016 Credit facility, O-Bank $ 1,400,000 $ - Credit facility, CTBC 950,000 - Total short-term loans $ 2,350,000 $ - |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Schedule Of Other Current Liabilities [Table Text Block] | December 31, 2017 December 31, 2016 Commissions payable to sales professionals $ 6,415,071 $ 11,869,181 AIATW and Farglory 1,237,684 2,090,718 Due to previous shareholders of AHFL - 480,559 Accrued business tax 487,586 469,259 Withholding tax 347,824 362,954 Accrued tax penalties - 370,000 Accrued bonus 1,730,278 1,935,091 Salary payable to administrative staff 1,194,725 183,066 Accrued labor, health insurance and employee retirement plan 114,556 92,085 Accrued advertisement expense - 32,525 Accrued bonus for Ms. Chao 210,752 - Other accrued liabilities 1,051,112 754,471 Total other current liabilities $ 12,789,588 $ 18,639,909 |
LONG-TERM LOANS (Tables)
LONG-TERM LOANS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | December 31, 2017 December 31, 2016 Loan A, interest at 8% per annum, maturity date May 15, 2019 $ 130,641 $ 144,015 Loan B, interest at 8% per annum, maturity date July 20, 2019 118,345 110,892 Total long-term loans $ 248,986 $ 254,907 |
LONG-TERM LIABILITIES (Tables)
LONG-TERM LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Other Noncurrent Liabilities [Table Text Block] | The Company’s long-term liabilities consisted of the following as of December 31, 2017 and 2016: December 31, 2017 December 31, 2016 Unearned revenue AIATW $ 4,239,130 $ 4,742,272 Unearned revenue Farglory - 495,615 Deferred tax liabilities 122,551 - Due to previous shareholders of AHFL 480,559 - Other long-term liabilities - 77,440 Total long-term liabilities $ 4,842,240 $ 5,315,327 |
Schedule Of Contract with Customer [Table Text Block] | The following table presents the amounts recognized as revenue and the refunded for each contract year: Contract Period Execution Fees Revenue Revenue VAT Refund Amount Refund VAT First 4/15/2013 ~ 9/30/2014 NTD 50,000,000 NTD 27,137,958 (1) NTD 1,356,898 NTD 20,481,090 (1) NTD 1,024,054 Second 1/1/2016 ~ 12/31/2016 NTD 35,000,000 NTD 12,855,000 (2) NTD 642,750 NTD 20,478,333 (2) NTD 1,023,917 Third 1/1/2017 ~ 12/31/2017 NTD 33,000,000 NTD 12,628,201 (3) NTD 631,410 NTD 18,800,370 (3) NTD 940,019 Fourth 1/1/2018 ~ 12/31/2018 NTD 33,000,000 NTD - NTD - NTD - NTD - Fifth 1/1/2019 ~ 12/31/2019 NTD 33,000,000 NTD - NTD - NTD - NTD - Sixth 1/1/2020 ~ 12/31/2020 NTD 33,000,000 NTD - NTD - NTD - NTD - Seventh 1/1/2021 ~ 12/31/2021 NTD 33,000,000 NTD - NTD - NTD - NTD - TOTAL NTD 250,000,000 NTD 52,621,159 NTD 2,631,058 NTD 59,759,793 NTD 2,987,990 (1) The revenue recognition for the first contract year is based on the annual first year premium (“AFYP”) set in Alliance Agreement, which is difference from other contract years. From the second contract year to the seventh contract year, the revenue calculation is based on VONB. The Company recognized the first contract year’s revenue 892,742 27,137,958 net of Value-Added Tax (“VAT”). On December 3, 2015 and February 23, 2016, the Company refunded the amounts of 160,573 4,761,905 net of VAT, 530,056 15,719,185 net of VAT, (2) For the year ended December 31, 2017, the Company recognized the second contract year’s revenue amount 422,883 12,855,000 net of VAT, and refunded the 690,537 20,478,333 , net of VAT, for the same contract period. (3) For the year ended December 31, 2017, the Company estimated to recognize the third contract year’s revenue amount 415,423 12,628,201 net of VAT, and refund the amount 633,955 18,800,370 , net of VAT, for the same contract period based on the calculation of VONB and 13-month persistency. |
NON-CONTROLLING INTERESTS (Tabl
NON-CONTROLLING INTERESTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Noncontrolling Interest [Abstract] | |
Schedule of Non-Controlling Interests [Table Text Block] | Non-controlling interests consisted of the following as of December 31, 2017 and 2016: Name of Controlled Entity % of Non- As of Net Income of Other As of Law Enterprise 34.05 % $ 17,386 $ (307,217) $ 46,591 $ (243,240) Law Broker 34.05 % 9,621,159 3,387,038 892,144 13,900,341 PFAL 49.00 % 232,414 (3,817) (518) 228,079 MKI 49.00 % (1,569) (548) - (2,117) PA Taiwan 49.00 % (95,448) (52,169) 2,175 (145,442) PTC Nanjing 49.00 % (2,400) (60) 495 (1,965) Total $ 9,771,542 $ 3,023,227 $ 940,887 $ 13,735,656 Name of Controlled Entity % of Non- As of Net Income of Other As of Law Enterprise 34.05 % $ 199,699 $ (307,583) $ 125,270 $ 17,386 Law Broker 34.05 % 7,197,128 2,402,245 21,786 9,621,159 PFAL 49.00 % 206,098 26,411 (95) 232,414 MKI 49.00 % (1,065) (504) - (1,569) PA Taiwan 49.00 % (26,292) (70,341) 1,185 (95,448) PTC Nanjing 49.00 % (837) (904) (659) (2,400) Total $ 7,574,731 $ 2,094,324 $ 147,487 $ 9,771,542 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Provision (benefit) for income taxes for the year ended December 31, 2017 consisted of: Year ended December 31, 2017 Federal State Foreign Total Current $ - $ - $ 3,426,326 $ 3,426,326 Deferred - - 87,391 87,391 Total $ - $ - $ 3,513,717 $ 3,513,717 Provision (benefit) for income taxes for the year ended December 31, 2016 consisted of: Year ended December 31, 2016 Federal State Foreign Total Current $ - $ - $ 2,207,581 $ 2,207,581 Deferred - - (87,983) (87,983) Total $ - $ - $ 2,119,598 $ 2,119,598 Provision (benefit) for income taxes for the year ended December 31, 2015 consisted of: Year ended December 31, 2015 Federal State Foreign Total Current $ - $ - $ 1,553,650 $ 1,553,650 Deferred - - (34,424) (34,424) Total $ - $ - $ 1,519,226 $ 1,519,226 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Significant components of the deferred tax assets and liabilities for income taxes as of December 31, 2017 and 2016 consisted of the following: 2017 2016 Deferred tax assets Net operating loss carry-forward $ 874,934 $ 993,050 Others 123,406 84,597 Total $ 998,340 $ 1,077,647 Valuation allowance (874,934) (993,050) Net deferred tax assets - noncurrent $ 123,406 $ 84,597 Deferred tax liabilities - noncurrent $ 122,551 $ - |
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 year ended December 31, 2017, 2016 and 2015: Year ended Year ended Year ended US statutory rate 34 % 34 % 34 % Tax rate difference (18) % (20) % (22) % Tax base difference - % 1 % (1) % Income tax on undistributed earnings - % 10 % 10 % Loss in subsidiaries 3 % 5 % 15 % Un-deductible and non-taxable items 7 % - % - % Effective tax rate 26 % 30 % 36 % |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | December 31, 2017 December 31, 2016 Due to Mr. Mao (CEO of the Company) $ 409,054 $ 361,379 Due to Xude Investment (Owned by Mr. Chwan Hau Li*) - 32,374 Due to Mr. Zhu (Legal Representative of Jiangsu) 2,128 1,994 Ms. Lu (Shareholder of Anhou) 161,380 - Due to Yuli Broker (Owned by Ms. Lee**) - 265 Due to Yuli Investment (Owned by Ms. Lee**) - 265 Due to I Health Management Corp*** 17,703 3,724 Total $ 590,265 $ 400,001 * Chwan Hau Li is a Director of the Company ** Mr. Lee is the Director of Law Broker *** 25% of I Health Management Corp’s shares are owned by Multiple Capital Enterprise, and 24% of Multiple Capital Enterprise’s shares are owned by members of |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | 2,537,348 2,132,950 1,735,521 Twelve months ending December 31, 2018 $ 2,022,510 Twelve months ending December 31, 2019 877,362 Twelve months ending December 31, 2020 197,971 Twelve months ending December 31, 2021 50,461 Twelve months ending December 31, 2022 14,199 Thereafter - Total $ 3,162,503 |
FINANCIAL RISK MANAGEMENT AND55
FINANCIAL RISK MANAGEMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | The following table presents the fair value and carrying value of the Company’s financial assets and liabilities as of December 31, 2017: Fair Value Carrying Level 1 Level 2 Level 3 Value Assets Time deposits $ - $ 22,471,945 $ - $ 22,471,945 Marketable securities: Fund 33,381 - - 33,381 Structured deposit - 1,248,340 - 1,248,340 Loan receivable (Other current assets in Note 6) - - 1,510,347 1,510,347 Long-term investment: Equity investment - - 1,941,800 1,296,039 Government bonds - 103,723 - 103,723 Liabilities Short-term loans $ - $ - $ 2,350,000 $ 2,350,000 Due to related parties - - 590,265 590,265 Convertible bonds - - 200,000 200,000 Long-term loans - - 248,986 248,986 The following table presents the fair value and carrying value of the Company’s financial assets and liabilities as of December 31, 2016: Fair Value Carrying Level 1 Level 2 Level 3 Value Assets Time deposits $ - $ 7,808,058 $ - $ 7,808,058 Marketable securities: Stocks 38,763 - - 38,763 Funds 2,388,107 - - 2,388,107 Loan receivable (Other current assets in Notes 6) - - 1,486,846 1,486,846 Long-term investment: Equity investment - - 1,288,279 1,190,558 Government bonds - 94,506 - 94,506 Liabilities Due to related parties $ - $ - $ 400,001 $ 400,001 Convertible bonds - - 200,000 200,000 Long-term loans - - 254,907 254,907 |
RECLASSIFICATIONS (Tables)
RECLASSIFICATIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule Of Reclassification [Table Text Block] | reflected below. Consolidated Balance Sheet December 31, 2016 Original: Cash and cash equivalents $ 25,521,802 Other current assets 1,890,551 Other assets 726,482 Reclassified: Cash and cash equivalents $ 20,169,455 Time deposits 5,352,347 Other current assets 1,831,318 Other assets 785,715 Consolidated Statements of Cash Flows Year Ended Year Ended Original: Net cash used in investing activities $ (2,625,499) $ (383,843) Foreign currency translation 147,568 (832,294) Net increase in cash and cash equivalents 4,689,978 1,260,025 Cash and cash equivalents, beginning balance 20,831,824 19,571,799 Cash and cash equivalents, ending balance 25,521,802 20,831,824 Reclassified: Cash flows from investing activities: Purchases of time deposits $ (7,161,459) $ (9,562,553) Proceeds from maturities of time deposits 9,697,617 10,556,173 Net cash provided by (used in) investing activities (89,341) 609,777 Foreign currency translation 7,530 (564,053) Net increase (decrease) in cash and cash equivalents 7,086,098 2,521,886 Cash and cash equivalents, beginning balance 13,083,357 10,561,471 Cash and cash equivalents, ending balance 20,169,455 13,083,357 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | The geographical distributions of the Company’s financial information for the years ended December 31, 2017, 2016 and 2015 were as follows: For the years ended December 31, Geographical Areas 2017 2016 2015 (Restated) Revenue Taiwan $ 62,147,136 $ 61,208,145 $ 48,669,261 PRC 10,467,488 8,461,511 5,892,928 Hong Kong 302,096 325,408 461,577 Elimination adjustment (68,276) (61,058) - Total revenue $ 72,848,444 $ 69,934,006 $ 55,023,766 Income (loss) from operations Taiwan $ 12,109,928 $ 7,303,616 $ 3,073,888 PRC 489,017 (817,914) (1,525,560) Hong Kong 3,065 66,356 209,373 Elimination adjustment 141,410 132,432 42,884 Total income (loss) from operations $ 12,743,420 $ 6,684,490 $ 1,800,585 Depreciation and amortization expenses Taiwan $ 466,020 $ 541,461 $ 366,717 PRC 94,877 84,279 96,172 Hong Kong 287 288 312 Elimination adjustment - - - Total depreciation and amortization expenses $ 561,184 $ 626,028 $ 463,201 Interest income Taiwan $ 422,688 $ 234,316 $ 208,526 PRC 1,696 4,464 31,047 Hong Kong - 1 2 Elimination adjustment (85,215) (30,116) (9,066) Total interest income $ 339,169 $ 208,665 $ 230,509 Interest expenses Taiwan $ 98,746 $ 38,083 $ 9,720 PRC 21,844 11,755 - Hong Kong - - - Elimination adjustment (85,215) (30,116) (9,066) Total interest expenses $ 35,375 $ 19,722 $ 654 Income tax Taiwan $ 3,236,264 $ 2,095,827 $ 1,496,206 PRC 282,504 13,135 16,429 Hong Kong (5,051) 10,636 6,591 Elimination adjustment - - - Total income tax $ 3,513,717 $ 2,119,598 $ 1,519,226 Net income (loss) Taiwan $ 10,050,593 $ 5,803,241 $ 1,963,988 PRC 128,052 (844,778) (1,531,555) Hong Kong (7,790) 53,900 222,665 Elimination adjustment 7,010 7,220 6,187 Total net income (loss) $ 10,177,865 $ 5,019,583 $ 661,285 |
Schedule Of Long Term Liabilities [Table Text Block] | The geographical distribution of the Company’s financial information as of December 31, 2017 and 2016 were as follows: As of December 31, Geographical Areas 2017 2016 (Restated) Capital expenditures Taiwan $ (507,983) $ (835,564) PRC (34,445) (148,936) Hong Kong - - Total capital expenditures $ (542,428) $ (984,500) Long-lived assets Taiwan $ 1,612,125 $ 1,453,772 PRC 109,597 256,704 Hong Kong 358 648 Elimination adjustment - - Total long-lived assets $ 1,722,080 $ 1,711,124 Reportable assets Taiwan $ 96,399,321 $ 90,388,991 PRC 11,140,124 13,325,433 Hong Kong 643,881 561,708 Elimination adjustment (48,910,083) (54,908,429) Total reportable assets $ 59,273,243 $ 49,367,703 |
RESTATEMENT (Tables)
RESTATEMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | CONSOLIDATED BALANCE SHEET As of December 31, 2016 Previously Adjustment Restated ASSETS Current assets Cash and cash equivalents $ 25,521,802 $ (5,352,347 ) {b} $ 20,169,455 Time deposits - 5,352,347 {b} 5,352,347 Marketable securities 2,426,870 - 2,426,870 Accounts receivable, net 15,774,159 - 15,774,159 Other current assets 1,890,551 (59,233 ) {b} 1,831,318 Total current assets 45,613,382 (59,233 ) {b} 45,554,149 Property, plant and equipment, net 926,905 - 926,905 Intangible assets 784,219 - 784,219 Goodwill 2,071,491 (2,039,840 ) {a} 31,651 Long-term investment 1,285,064 - 1,285,064 Other assets 726,482 59,233 {b} 785,715 TOTAL ASSETS $ 51,407,543 $ (2,039,840 ) {a} $ 49,367,703 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Taxes payable $ 2,249,869 $ - $ 2,249,869 Due to related parties 400,001 - 400,001 Other current liabilities 18,639,909 - 18,639,909 Total current liabilities 21,289,779 - 21,289,779 - Convertible bonds 200,000 - 200,000 Long-term loans 254,907 - 254,907 Long-term liabilities 5,315,327 - 5,315,327 TOTAL LIABILITIES 27,060,013 - 27,060,013 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, 29,452,669 issued and outstanding 295 - 295 Additional paid-in capital 8,157,512 - 8,157,512 Statutory reserves 3,799,585 - 3,799,585 Retained earnings 3,286,562 (2,039,840 ) {a} 1,246,722 Accumulated other comprehensive gain/ (loss) (667,976 ) - (667,976 ) Stockholders’ equity attribute to parent’s shareholders 14,575,988 (2,039,840 ) {a} 12,536,148 Noncontrolling interests 9,771,542 - 9,771,542 TOTAL STOCKHOLDERS’ EQUITY 24,347,530 (2,039,840 ) {a} 22,307,690 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 51,407,543 $ (2,039,840 ) {a} $ 49,367,703 {a} The Company corrected the acquisition method from business acquisition to asset acquisition. The consideration provided in excess of fair market value of the purchased entity cannot be treated as goodwill. The excess payment is restated to compensation on asset acquisition. {b} See Note 25 for additional information on the reclassifications. The restatement for 2015 consolidated financial statements: CONSOLIDATED BALANCE SHEET As of December 31, 2015 Previously Adjustment Restated ASSETS Current assets Cash and cash equivalents $ 20,831,824 $ (7,748,467 ) {b} $ 13,083,357 Time deposits - 7,748,467 {b} 7,748,467 Marketable securities 2,369,082 - 2,369,082 Accounts receivable, net 9,630,993 - 9,630,993 Other current assets 1,055,015 - 1,055,015 Total current assets 33,886,914 - 33,886,914 Property, plant and equipment, net 918,798 - 918,798 Intangible assets 468,779 - 468,779 Goodwill 2,071,491 (2,039,840 ) {a} 31,651 Long-term investment 1,264,611 - 1,264,611 Other assets 791,223 - 791,223 TOTAL ASSETS $ 39,401,816 $ (2,039,840 ) {a} $ 37,361,976 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Taxes payable $ 1,521,962 $ - $ 1,521,962 Short-term loan 222,235 - 222,235 Due to related parties 945,932 - 945,932 Other current liabilities 10,870,750 - 10,870,750 Total current liabilities 13,560,879 - 13,560,879 - Long-term liabilities 6,594,530 - 6,594,530 TOTAL LIABILITIES 20,155,409 - 20,155,409 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, 29,452,669 issued and outstanding 295 - 295 Additional paid-in capital 8,157,512 - 8,157,512 Statutory reserves 2,385,327 - 2,385,327 Retained earnings 1,808,665 (2,039,840 ) {a} (231,175 ) Accumulated other comprehensive gain/ (loss) (680,133 ) - (680,133 ) Stockholders’ equity attribute to parent’s shareholders 11,671,676 (2,039,840 ) {a} 9,631,836 Noncontrolling interests 7,574,731 - 7,574,731 TOTAL STOCKHOLDERS’ EQUITY 19,246,407 (2,039,840 ) {a} 17,206,567 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 39,401,816 $ (2,039,840 ) {a} $ 37,361,976 |
Restatement to Prior Year Income [Table Text Block] | CONSOLIDATED STATEMENT OF OPERATIONS AND OTHER COMPREHENSIVE INCOME / (LOSS) For the year ended December 31, 2015 Previously Adjustment Restated Revenue $ 55,023,766 - $ 55,023,766 Cost of revenue 35,423,762 - 35,423,762 Gross profit 19,600,004 - 19,600,004 Operating expenses: Selling 3,084,408 - 3,084,408 General and administrative 12,675,171 2,039,840 {a} 14,715,011 Total operating expense 15,759,579 2,039,840 {a} 17,799,419 Income from operations 3,840,425 (2,039,840 ) {a} 1,800,585 Other income (expenses) Interest income 230,509 - 230,509 Interest expense (654 ) - (654 ) Other - net 150,071 - 150,071 Total other income (expenses) 379,926 - 379,926 Income before income taxes 4,220,351 (2,039,840 ) {a} 2,180,511 Income tax expense 1,519,226 - 1,519,226 Net income (loss) 2,701,125 (2,039,840 ) {a} 661,285 Net income attributable to the noncontrolling interests 1,623,198 - 1,623,198 Net income (loss) attributable to parent’s shareholders 1,077,927 (2,039,840 ) {a} (961,913 ) Other comprehensive items Foreign currency translations gain(loss) (329,562 ) - (329,562 ) Other 310 - 310 Other comprehensive income (loss) attributable to parent’s shareholders (329,252 ) - (329,252 ) Other comprehensive items attributable to noncontrolling interests (477,738 ) - (477,738 ) Comprehensive income attributable to parent’s shareholders $ 748,675 (2,039,840 ) {a} $ (1,291,165 ) Comprehensive income attributable to noncontrolling interests $ 1,145,460 - $ 1,145,460 Weighted average shares outstanding: Basic 29,365,834 29,365,834 Diluted 30,365,834 29,365,834 Income per share: Basic $ 0.037 $ (0.033 ) Diluted $ 0.035 $ (0.033 ) {a} The Company corrected the acquisition method from business acquisition to asset acquisition. The consideration provided in excess of fair market value of the purchased entity cannot be treated as goodwill. The excess payment is restated to compensation on asset acquisition. {b} See Note 25 for additional information on the reclassifications. |
QUARTERLY INFORMATION (Tables)
QUARTERLY INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Table Text Block] | The following quarterly data are derived from the Company’s consolidated balance sheet. See “Note 27Restatement” for information concerning the Restatement of the Company’s financial statements. As of March 31, 2017 Previously Adjustment Restated CONSOLIDATED BALANCE SHEET ASSETS Goodwill $ 2,071,491 $ (2,039,840) $ 31,651 TOTAL ASSETS 49,227,142 (2,039,840) 47,187,302 Retained earnings 4,152,250 (2,039,840) 2,112,410 Stockholders’ equity attribute to parent’s shareholders 16,701,244 (2,039,840) 14,661,404 TOTAL STOCKHOLDERS’ EQUITY 27,792,876 (2,039,840) 25,753,036 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 49,227,142 $ (2,039,840) $ 47,187,302 As of June 30, 2017 Previously Adjustment Restated CONSOLIDATED BALANCE SHEET ASSETS Goodwill $ 2,071,491 $ (2,039,840) $ 31,651 TOTAL ASSETS 48,983,681 (2,039,840) 46,943,841 Retained earnings 5,804,053 (2,039,840) 3,764,213 Stockholders’ equity attribute to parent’s shareholders 18,721,318 (2,039,840) 16,681,478 TOTAL STOCKHOLDERS’ EQUITY 30,295,360 (2,039,840) 28,255,520 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 48,983,681 $ (2,039,840) $ 46,943,841 As of September 30, 2017 Previously Adjustment Restated CONSOLIDATED BALANCE SHEET ASSETS Goodwill $ 2,071,491 $ (2,039,840) $ 31,651 TOTAL ASSETS 51,132,862 $ (2,039,840) 49,093,022 Retained earnings 6,663,807 $ (2,039,840) 4,623,967 Stockholders’ equity attribute to parent’s shareholders 20,077,289 (2,039,840) 18,037,449 TOTAL STOCKHOLDERS’ EQUITY 32,344,226 (2,039,840) 30,304,386 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 51,132,862 $ (2,039,840) $ 49,093,022 |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents [Table Text Block] | December 31, December 31, Cash and cash equivalents: Cash in banks and on hand $ 11,774,489 $ 17,713,744 Cash equivalent re-purchase bonds 2,697,628 - Time deposits with original maturities less than three months 1,001,832 2,455,711 15,473,949 20,169,455 Time deposits with original maturities over three months but less than one year 21,470,113 5,352,347 Total cash and cash equivalents and time deposits $ 36,944,062 $ 25,521,802 |
ORGANIZATION AND PRINCIPAL AC61
ORGANIZATION AND PRINCIPAL ACTIVITIES (Details Textual) $ / shares in Units, $ in Millions | 1 Months Ended | ||||||||||||||
Mar. 31, 2019TWD ($)shares | Feb. 17, 2016 | Feb. 13, 2015shares | Aug. 24, 2012USD ($)shares | Aug. 24, 2012TWD ($)shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Apr. 23, 2014HKD ($) | Jan. 28, 2011shares | Jan. 16, 2011USD ($)$ / sharesshares | Sep. 30, 2010USD ($) | Sep. 30, 2010CNY (¥) | Aug. 10, 2010USD ($) | Aug. 10, 2010CNY (¥) | |
Disclosure of Organization And Principal Activities [Line Items] | |||||||||||||||
Common stock, shares issued | 29,452,669 | 29,452,669 | 29,452,669 | ||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||||||||||||
Common stock, value | $ | $ 295 | $ 295 | $ 295 | ||||||||||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | |||||||||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | ||||||||||||
Registered Capital | $ | $ 1,530,000 | ||||||||||||||
Sichuan Kangzhuang [Member] | |||||||||||||||
Disclosure of Organization And Principal Activities [Line Items] | |||||||||||||||
Business Acquisition Cost Of Acquired Entity Purchases Price | $ 78,000 | ¥ 532,622 | |||||||||||||
Jiangsu [Member] | |||||||||||||||
Disclosure of Organization And Principal Activities [Line Items] | |||||||||||||||
Business Acquisition Cost Of Acquired Entity Purchases Price | $ 75,470 | ¥ 518,000 | |||||||||||||
Law Enterprise [Member] | |||||||||||||||
Disclosure of Organization And Principal Activities [Line Items] | |||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 65.95% | 65.95% | |||||||||||||
Maximum [Member] | |||||||||||||||
Disclosure of Organization And Principal Activities [Line Items] | |||||||||||||||
Common stock, shares authorized | 100,000,000 | ||||||||||||||
Common Stock [Member] | |||||||||||||||
Disclosure of Organization And Principal Activities [Line Items] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 352,166 | ||||||||||||||
Common Stock [Member] | Maximum [Member] | |||||||||||||||
Disclosure of Organization And Principal Activities [Line Items] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 2,000,000 | ||||||||||||||
Mr Wong [Member] | |||||||||||||||
Disclosure of Organization And Principal Activities [Line Items] | |||||||||||||||
Equity Method Investment, Ownership Percentage | 49.00% | ||||||||||||||
Capital Units, Value | $ | $ 500,000 | ||||||||||||||
Mr Wong [Member] | Maximum [Member] | |||||||||||||||
Disclosure of Organization And Principal Activities [Line Items] | |||||||||||||||
Capital Units, Value | $ | $ 1,470,000 | ||||||||||||||
Employees of Law Broker [Member] | Stock Option Pool [Member] | |||||||||||||||
Disclosure of Organization And Principal Activities [Line Items] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 2,000,000 | ||||||||||||||
Ahfl [Member] | |||||||||||||||
Disclosure of Organization And Principal Activities [Line Items] | |||||||||||||||
Equity Method Investment, Ownership Percentage | 100.00% | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 352,166 | ||||||||||||||
Expected Proceeds From Public Offering | the net proceeds raised through such public offering financing shall be at least USD10,000,000 | ||||||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 8,000,000 | 8,000,000 | |||||||||||||
Business Combination, Consideration Transferred | $ 676,000 | $ 22.5 | |||||||||||||
Ahfl [Member] | Subsequent Event [Member] | |||||||||||||||
Disclosure of Organization And Principal Activities [Line Items] | |||||||||||||||
Due to Officers or Stockholders | $ | $ 15 | ||||||||||||||
Ahfl [Member] | Common Stock [Member] | |||||||||||||||
Disclosure of Organization And Principal Activities [Line Items] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 704,333 | ||||||||||||||
Before Amendment [Member] | |||||||||||||||
Disclosure of Organization And Principal Activities [Line Items] | |||||||||||||||
Common stock, shares authorized | 30,000,000 | ||||||||||||||
After Amendment [Member] | |||||||||||||||
Disclosure of Organization And Principal Activities [Line Items] | |||||||||||||||
Common stock, shares authorized | 100,000,000 | ||||||||||||||
Preferred stock, shares authorized | 10,000,000 | ||||||||||||||
Genius Amendment [Member] | |||||||||||||||
Disclosure of Organization And Principal Activities [Line Items] | |||||||||||||||
Expected Proceeds From Public Offering | the net proceeds raised through such public offering financing shall be at least USD10,000,000 | ||||||||||||||
Jiangsu Law [Member] | Ahfl [Member] | |||||||||||||||
Disclosure of Organization And Principal Activities [Line Items] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 352,166 | ||||||||||||||
Non U S Person [Member] | |||||||||||||||
Disclosure of Organization And Principal Activities [Line Items] | |||||||||||||||
Common stock, shares issued | 20,000,000 | ||||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.00001 | ||||||||||||||
Common stock, value | $ | $ 300,000 | ||||||||||||||
Increased Registered Capital | $ | $ 300,000 | ||||||||||||||
GHFL [Member] | |||||||||||||||
Disclosure of Organization And Principal Activities [Line Items] | |||||||||||||||
Equity Method Investment, Ownership Percentage | 100.00% | ||||||||||||||
Genius Insurance Broker Co., Ltd [Member] | |||||||||||||||
Disclosure of Organization And Principal Activities [Line Items] | |||||||||||||||
Equity Method Investment, Ownership Percentage | 15.64% | ||||||||||||||
Prime Financial Asia Ltd [Member] | |||||||||||||||
Disclosure of Organization And Principal Activities [Line Items] | |||||||||||||||
Equity Method Investment, Ownership Percentage | 51.00% |
SUMMARY OF SIGNIFICANT ACCOUN62
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Taiwan Dollar [Member] | |||
Foreign Currency Average Rate Translation | 30.39845 | 32.2139 | 31.7301 |
Foreign Currency Exchange Rate, Translation | 29.65568 | 32.2831 | |
China yuan [Member] | |||
Foreign Currency Average Rate Translation | 6.75701 | 6.64301 | 6.2175 |
Foreign Currency Exchange Rate, Translation | 6.50638 | 6.9437 | |
Hong Kong Dollar [Member] | |||
Foreign Currency Average Rate Translation | 7.79223 | 7.76173 | 7.7521 |
Foreign Currency Exchange Rate, Translation | 7.81493 | 7.75434 | |
United States Dollar [Member] | |||
Foreign Currency Average Rate Translation | 1 | 1 | 1 |
Foreign Currency Exchange Rate, Translation | 1 | 1 |
SUMMARY OF SIGNIFICANT ACCOUN63
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Farglory Life Insurance Co., Ltd. [Member] | |||||
Financial Services Revenue | $ 18,617,293 | $ 23,684,774 | $ 17,649,359 | ||
Financial Services Percentage | 26.00% | 34.00% | 36.00% | ||
Taiwan Life Insurance Co., Ltd [Member] | |||||
Financial Services Revenue | $ 9,309,759 | [1] | $ 8,381,587 | [1] | $ 6,112,311 |
Financial Services Percentage | 13.00% | [1] | 12.00% | [1] | 13.00% |
Fubon Life Insurance Co., Ltd [Member] | |||||
Financial Services Revenue | [2] | $ 7,167,163 | $ 6,744,014 | ||
Financial Services Percentage | [2] | 10.00% | 14.00% | ||
TransGlobe Life Insurance Inc [Member] | |||||
Financial Services Revenue | $ 8,168,837 | [2] | $ 4,729,565 | ||
Financial Services Percentage | 11.00% | [2] | 10.00% | ||
[1] | Taiwan Life Insurance Co., Ltd. was formerly known as CTBC Life Insurance Co., Ltd. | ||||
[2] | Revenue for the year ended had not exceeded 10% or more of the consolidated revenue. |
SUMMARY OF SIGNIFICANT ACCOUN64
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Farglory Life Insurance Co., Ltd. [Member] | |||||
Accounts Receivable, Net | $ 3,430,661 | $ 6,503,843 | $ 3,689,404 | ||
Percentage Of Accounts Receivable | 26.00% | 41.00% | 43.00% | ||
Taiwan Life Insurance Co., Ltd [Member] | |||||
Accounts Receivable, Net | $ 2,192,668 | [1] | $ 1,973,410 | [1] | $ 994,978 |
Percentage Of Accounts Receivable | 17.00% | [1] | 13.00% | [1] | 11.00% |
Fubon Life Insurance Co., Ltd [Member] | |||||
Accounts Receivable, Net | [2] | $ 1,660,685 | $ 990,327 | ||
Percentage Of Accounts Receivable | [2] | 11.00% | 11.00% | ||
TransGlobe Life Insurance Inc [Member] | |||||
Accounts Receivable, Net | $ 1,811,401 | [2] | $ 747,993 | ||
Percentage Of Accounts Receivable | 14.00% | [2] | 8.00% | ||
[1] | Taiwan Life Insurance Co., Ltd. was formerly known as CTBC Life Insurance Co., Ltd. | ||||
[2] | The related revenue for the year ended had not exceeded 10% or more of the consolidated revenue. |
SUMMARY OF SIGNIFICANT ACCOUN65
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017CNY (¥)¥ / shares | Dec. 31, 2017TWD ($) | Dec. 31, 2017HKD ($) | |
Disclosure of Summary Of Significant Accounting Policies [Line Items] | |||||||
Common Stockholders' Equity | $ / shares | $ 0.16 | ||||||
Policy Cancellations | $ 227,901 | $ 340,086 | $ 291,325 | ||||
Probability percentage expected to be realized upon tax settlement | 50.00% | 50.00% | 50.00% | 50.00% | |||
VIE Agreements | The term of this Agreement is 10 years, and may be renewed at CU WFOE’s election. | ||||||
Cash, FDIC Insured Amount | $ 250,000 | ||||||
Effective Income Tax Rate Reconciliation, At Federal Statutory Income Tax Rate | 34.00% | 34.00% | 34.00% | ||||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | $ 123,406 | $ 84,597 | |||||
Scenario, Plan [Member] | |||||||
Disclosure of Summary Of Significant Accounting Policies [Line Items] | |||||||
Effective Income Tax Rate Reconciliation, At Federal Statutory Income Tax Rate | 21.00% | ||||||
Credit Concentration Risk [Member] | |||||||
Disclosure of Summary Of Significant Accounting Policies [Line Items] | |||||||
Cash, FDIC Insured Amount | 1,512,000 | 1,382,000 | |||||
Cash, Uninsured Amount | $ 33,949,000 | $ 24,312,000 | |||||
Taiwan | |||||||
Disclosure of Summary Of Significant Accounting Policies [Line Items] | |||||||
Cash, FDIC Insured Amount | $ 3,000,000 | ||||||
Hong Kong [Member] | |||||||
Disclosure of Summary Of Significant Accounting Policies [Line Items] | |||||||
Cash, FDIC Insured Amount | ¥ | ¥ 500,000 | ||||||
China [Member] | |||||||
Disclosure of Summary Of Significant Accounting Policies [Line Items] | |||||||
Cash, FDIC Insured Amount | $ 500,000 | ||||||
Maximum [Member] | |||||||
Disclosure of Summary Of Significant Accounting Policies [Line Items] | |||||||
Property, Plant and Equipment, Useful Life | 10 years | ||||||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||||||
Minimum [Member] | |||||||
Disclosure of Summary Of Significant Accounting Policies [Line Items] | |||||||
Property, Plant and Equipment, Useful Life | 0 years | ||||||
Finite-Lived Intangible Asset, Useful Life | 3 years | ||||||
Henan Anhou [Member] | |||||||
Disclosure of Summary Of Significant Accounting Policies [Line Items] | |||||||
Common Stockholders' Equity | ¥ / shares | ¥ 1 |
CASH AND CASH EQUIVALENTS AND66
CASH AND CASH EQUIVALENTS AND TIME DEPOSITS (Details) | Dec. 31, 2017USD ($) | Dec. 22, 2017USD ($) | Dec. 22, 2017TWD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Cash in banks and on hand | $ 11,774,489 | $ 17,713,744 | ||||
Cash equivalent - re-purchase bonds | 2,697,628 | $ 2,697,628 | $ 80,000,000 | 0 | ||
Time deposits - with original maturities less than three months | 1,001,832 | 2,455,711 | ||||
Cash and Cash Equivalents, at Carrying Value | 15,473,949 | 20,169,455 | $ 13,083,357 | $ 10,561,471 | ||
Time deposits - with original maturities over three months but less than one year | 21,470,113 | 5,352,347 | $ 7,748,467 | |||
Total cash and cash equivalents and time deposits | 36,944,062 | 25,521,802 | ||||
Bank Time Deposits [Member] | ||||||
Time deposits - with original maturities over three months but less than one year | $ 21,470,113 | $ 5,352,347 |
CASH AND CASH EQUIVALENTS AND67
CASH AND CASH EQUIVALENTS AND TIME DEPOSITS (Details Textual) | Dec. 31, 2017USD ($) | Dec. 22, 2017USD ($) | Dec. 22, 2017TWD ($) | Dec. 11, 2017TWD ($) | Dec. 31, 2016USD ($) |
Restricted Cash | $ 1,686,017 | $ 50,000,000 | |||
Debt Instrument, Repurchase Amount | $ 2,697,628 | $ 2,697,628 | $ 80,000,000 | $ 0 | |
Debt Instrument, Interest Rate, Stated Percentage | 0.38% | 0.38% |
MARKETABLE SECURITIES (Details)
MARKETABLE SECURITIES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Marketable Securities [Line Items] | ||
Cost or Amortized Cost | $ 33,117 | $ 2,369,082 |
Gross Unrealized Gains (Losses) | 264 | 57,788 |
Total Fair Value | 33,381 | 2,426,870 |
Stocks [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Disclosure of Marketable Securities [Line Items] | ||
Cost or Amortized Cost | 28,863 | |
Gross Unrealized Gains (Losses) | 9,900 | |
Total Fair Value | 38,763 | |
Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Disclosure of Marketable Securities [Line Items] | ||
Cost or Amortized Cost | 33,117 | 2,340,219 |
Gross Unrealized Gains (Losses) | 264 | 47,888 |
Total Fair Value | $ 33,381 | $ 2,388,107 |
STRUCTURED DEPOSIT (Details)
STRUCTURED DEPOSIT (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Structured Deposit, Amortized Cost Basis | $ 1,278,551 | |
Structured Deposit, Gross Unrealized Gain Loss | (30,211) | |
Structured Deposits | 1,248,340 | $ 0 |
Structured Deposit [Member] | ||
Structured Deposit, Amortized Cost Basis | 1,278,551 | |
Structured Deposit, Gross Unrealized Gain Loss | (30,211) | |
Structured Deposits | $ 1,248,340 |
STRUCTURED DEPOSIT (Details Tex
STRUCTURED DEPOSIT (Details Textual) | Jul. 07, 2017USD ($) | Dec. 31, 2017 | Jul. 07, 2017CNY (¥) |
Structured deposit interest rate | 3.90% | ||
Structured Deposit [Member] | |||
Receivable with Imputed Interest, Due Date | Jan. 8, 2018 | ||
Receivable with Imputed Interest, Face Amount | $ 1,229,563 | ¥ 8,000,000 |
OTHER CURRENT ASSETS (Details)
OTHER CURRENT ASSETS (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of Other Current Assets [Line Items] | ||
Loan receivable | $ 1,510,347 | $ 1,486,846 |
Prepaid rent and rent deposits | 213,688 | 199,022 |
Prepaid expenses | 87,947 | 64,678 |
Other receivables | 135,996 | 50,683 |
Refundable business tax | 150,221 | 17,441 |
Interest receivable | 94,887 | 12,648 |
Total other current assets | $ 2,193,086 | $ 1,831,318 |
OTHER CURRENT ASSETS (Details T
OTHER CURRENT ASSETS (Details Textual) | Jul. 14, 2017USD ($) | Jul. 14, 2017TWD ($) | Oct. 24, 2016USD ($) | Jun. 22, 2017USD ($) | Jun. 22, 2017TWD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017TWD ($) | Dec. 31, 2016USD ($) | Oct. 24, 2016TWD ($) | Dec. 31, 2015USD ($) |
Short-term Debt | $ 2,350,000 | $ 0 | $ 222,235 | |||||||
Proceeds from Collection of Notes Receivable | $ 36,256 | $ 1,075,200 | $ 71,974 | $ 2,134,440 | ||||||
Notes Receivable, Related Parties, Current | $ 1,510,347 | $ 44,790,360 | ||||||||
Rich Fountain Limited [Member] | Short Term Loan E [Member] | ||||||||||
Short-term Debt | $ 1,618,577 | $ 48,000,000 | ||||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.50% | 4.50% | ||||||||
Debt Instrument, Maturity Date | Apr. 23, 2017 |
PROPERTY, PLANT AND EQUIPMENT73
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | |||
Total | $ 2,375,470 | $ 2,040,329 | |
Less: accumulated depreciation | (1,429,168) | (1,113,424) | |
Total property, plant and equipment, net | 946,302 | 926,905 | $ 918,798 |
Office Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | 1,198,456 | 1,070,061 | |
Office Furniture [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | 103,025 | 168,658 | |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | 761,522 | 581,964 | |
Transportation equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | 221,477 | 132,344 | |
Other equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | $ 90,990 | $ 87,302 |
PROPERTY, PLANT AND EQUIPMENT74
PROPERTY, PLANT AND EQUIPMENT, NET (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Member] | |||
Depreciation | $ 325,212 | $ 315,344 | $ 332,715 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | |||
Software | $ 1,797,227 | $ 1,500,339 | |
Less: accumulated amortization | (1,021,449) | (716,120) | |
Total intangible assets | $ 775,778 | $ 784,219 | $ 468,779 |
INTANGIBLE ASSETS (Details 1)
INTANGIBLE ASSETS (Details 1) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Finite Lived Intangible Assets Future Amortization Expense [Line Items] | |||
2,018 | $ 258,824 | ||
2,019 | 222,200 | ||
2,020 | 190,875 | ||
2,021 | 78,270 | ||
2,022 | 25,609 | ||
Thereafter | 0 | ||
Total | $ 775,778 | $ 784,219 | $ 468,779 |
INTANGIBLE ASSETS (Details Text
INTANGIBLE ASSETS (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Computer Software, Intangible Asset [Member] | |||
Amortization of Intangible Assets | $ 235,972 | $ 310,684 | $ 130,486 |
GOODWILL (Details Textual)
GOODWILL (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended |
Apr. 30, 2014 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||
Business Acquisition, Percentage Of Voting Interests Acquired | 51.00% | |
Fair Value of Assets Acquired | $ 324,871 | $ 165,684 |
CUIS [Member] | ||
Business Acquisition [Line Items] | ||
Goodwill, Acquired During Period | $ 31,651 |
LONG-TERM INVESTMENTS (Details)
LONG-TERM INVESTMENTS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Long Term Investment [Line Items] | |||
Equity investment accounted for the cost method | $ 1,296,039 | $ 1,190,558 | |
Government bonds held for available-for-sale | 103,723 | 94,506 | |
Total long-term investments | $ 1,399,762 | $ 1,285,064 | $ 1,264,611 |
LONG-TERM INVESTMENTS (Details
LONG-TERM INVESTMENTS (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Long Term Investment [Line Items] | ||
Investee Name | Genius Insurance Broker Co., Ltd | |
Investment Ownership Percentage | 15.64% | |
Long-Term Investment In Equity Amount | $ 1,296,039 | $ 1,190,558 |
LONG-TERM INVESTMENTS (Detail81
LONG-TERM INVESTMENTS (Details 2) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Long Term Investment [Line Items] | |||
Cost or Amortized Cost | $ 103,723 | $ 94,506 | $ 94,381 |
Gross Unrealized Gains | 9,217 | 125 | |
US Treasury and Government [Member] | |||
Long Term Investment [Line Items] | |||
Cost or Amortized Cost | 94,506 | $ 94,381 | |
Gross Unrealized Gains | 9,217 | 125 | |
Total Fair Value | $ 103,723 | $ 94,506 |
LONG-TERM INVESTMENTS (Detail82
LONG-TERM INVESTMENTS (Details Textual) | Dec. 31, 2017USD ($) | Dec. 31, 2017TWD ($) | Dec. 31, 2016USD ($) |
Long Term Investment [Line Items] | |||
Regulatory Requirements Minimum Amount | $ 101,161 | $ 3,000,000 | $ 92,928 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Other Assets [Line Items] | ||
Rental deposit | $ 508,352 | $ 445,283 |
Register capital deposit | 1,075,867 | 0 |
Restricted cash | 469,615 | 248,803 |
Prepayments | 140,404 | 5,576 |
Deferred tax assets | 123,406 | 84,597 |
Others | 82,231 | 1,456 |
Total other assets | $ 2,399,875 | $ 785,715 |
OTHER ASSETS (Details Textual)
OTHER ASSETS (Details Textual) | Sep. 29, 2016 |
Register Capital Deposit Percentage | 10.00% |
TAXES PAYABLE (Details)
TAXES PAYABLE (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Taxes Payable [Line Items] | |||
Total taxes payable | $ 3,508,790 | $ 2,249,869 | $ 1,521,962 |
PRC Tax [Member] | |||
Taxes Payable [Line Items] | |||
Total taxes payable | 270,267 | 163,461 | |
Hong Kong Tax [Member] | |||
Taxes Payable [Line Items] | |||
Total taxes payable | 5,527 | 14,233 | |
Taiwan | |||
Taxes Payable [Line Items] | |||
Total taxes payable | $ 3,232,996 | $ 2,072,175 |
SHORT-TERM LOANS (Details)
SHORT-TERM LOANS (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Short-term Debt [Line Items] | |||
Total short term loans | $ 2,350,000 | $ 0 | $ 222,235 |
Loan A [Member] | Prime Rate [Member] | Debt Instrument, Redemption, Period One [Member] | |||
Short-term Debt [Line Items] | |||
Total short term loans | 1,400,000 | 0 | |
Loan C [Member] | Prime Rate [Member] | Debt Instrument, Redemption, Period One [Member] | |||
Short-term Debt [Line Items] | |||
Total short term loans | $ 950,000 | $ 0 |
SHORT-TERM LOANS (Details Textu
SHORT-TERM LOANS (Details Textual) | 12 Months Ended | ||||||||
Dec. 31, 2017USD ($) | Dec. 28, 2017USD ($) | Dec. 26, 2017USD ($) | Dec. 26, 2017TWD ($) | Dec. 11, 2017USD ($) | Nov. 17, 2017USD ($) | Sep. 21, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Short-term Debt [Line Items] | |||||||||
Short-term Debt | $ 2,350,000 | $ 0 | $ 222,235 | ||||||
Interest Expense, Short-term Borrowings | 1,531 | ||||||||
O Bank [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Short-term Debt | $ 800,000 | $ 600,000 | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 2.70% | 2.70% | 2.35% | ||||||
Line of Credit Facility, Current Borrowing Capacity | $ 1,500,000 | ||||||||
Cash Collateral for Borrowed Securities | $ 1,686,017 | $ 50,000,000 | |||||||
Debt Instrument, Description of Variable Rate Basis | cost of fund plus a margin of 0.5% | ||||||||
CTBC Bank [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Short-term Debt | $ 950,000 | ||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.30% | ||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 1,000,000 | ||||||||
Debt Instrument, Description of Variable Rate Basis | cost of fund plus a margin of 1% | ||||||||
FEIB [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Debt Instrument, Interest Rate, Effective Percentage | 1.25% | ||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 2,000,000 | ||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR rate plus a margin of 1.3% |
CONVERTIBLE BONDS (Details Text
CONVERTIBLE BONDS (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 22, 2017 | Jun. 23, 2016 | |
Debt Instrument, Interest Rate, Stated Percentage | 0.38% | |||
Convertible bonds - noncurrent | $ 0 | $ 200,000 | ||
Interest Expense, Debt | $ 6,363 | |||
Convertible Debt [Member] | ||||
Debt Conversion, Description | The conversion price shall be the product of (i) the average closing trading price for the 10 business days immediately prior to the conversion date times (ii) 80%. | |||
Unit Price Per Debt Instrument | $ 100,000 | |||
Debt Instrument, Face Amount | $ 10,000,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | |||
Interest Expense, Debt | $ 12,000 | |||
Non-US [Member] | Convertible Debt [Member] | ||||
Debt Instrument, Face Amount | $ 200,000 |
OTHER CURRENT LIABILITIES (Deta
OTHER CURRENT LIABILITIES (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2013 |
Disclosure of Other Current Liabilities [Line Items] | ||||
Commissions payable to sales professionals | $ 6,415,071 | $ 11,869,181 | ||
AIATW and Farglory | 1,237,684 | 2,090,718 | ||
Due to previous shareholders of AHFL | 0 | 480,559 | ||
Accrued business tax | 487,586 | 469,259 | ||
Withholding tax | 347,824 | 362,954 | ||
Accrued tax penalties | 0 | 370,000 | $ 370,000 | |
Accrued bonus | 1,730,278 | 1,935,091 | ||
Salary payable to administrative staff | 1,194,725 | 183,066 | ||
Accrued labor, health insurance and employee retirement plan | 114,556 | 92,085 | ||
Accrued advertisement expense | 0 | 32,525 | ||
Accrued bonus for Ms. Chao | 210,752 | 0 | ||
Other accrued liabilities | 1,051,112 | 754,471 | ||
Total other current liabilities | $ 12,789,588 | $ 18,639,909 | $ 10,870,750 |
LONG-TERM LOANS (Details)
LONG-TERM LOANS (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Total long-term loans | $ 248,986 | $ 254,907 |
Loan A [Member] | ||
Total long-term loans | 130,641 | 144,015 |
Loan B [Member] | ||
Total long-term loans | $ 118,345 | $ 110,892 |
LONG-TERM LOANS (Details Textua
LONG-TERM LOANS (Details Textual) | May 15, 2016 | Jul. 20, 2016 | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2017CNY (¥) | Dec. 22, 2017 | Dec. 31, 2016CNY (¥) | Dec. 31, 2015USD ($) |
Long-term Debt | $ 4,842,240 | $ 5,315,327 | $ 6,594,530 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 0.38% | |||||||
Interest Expense, Debt | 6,363 | |||||||
Loan C [Member] | ||||||||
Interest Expense, Debt | 11,755 | |||||||
Loan A [Member] | ||||||||
Debt Instrument, Maturity Date | May 15, 2019 | |||||||
Long-term Debt | 130,641 | 144,015 | ¥ 850,000 | ¥ 850,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 0.00% | |||||||
Interest Expense, Debt | 20,737 | |||||||
Loan B [Member] | ||||||||
Debt Instrument, Maturity Date | Jul. 20, 2019 | |||||||
Long-term Debt | $ 118,345 | $ 110,892 | ¥ 770,000 | ¥ 770,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% |
LONG-TERM LIABILITIES (Details)
LONG-TERM LIABILITIES (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||
Deferred tax liabilities | $ 122,551 | $ 0 | |
Due to pervious shareholders of AHFL | 480,559 | 0 | |
Other long-term liabilities | 0 | 77,440 | |
Total long-term liabilities | 4,842,240 | 5,315,327 | $ 6,594,530 |
Unearned revenue - AIATW | |||
Debt Instrument [Line Items] | |||
Unearned revenue | 4,239,130 | 4,742,272 | |
Unearned revenue - Farglory | |||
Debt Instrument [Line Items] | |||
Unearned revenue | $ 0 | $ 495,615 |
LONG-TERM LIABILITIES (Details
LONG-TERM LIABILITIES (Details 1) | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2017TWD ($) | Dec. 31, 2016USD ($) | ||
Revenue Amount | $ 1,731,048 | $ 52,621,159 | $ 0 | |
Strategic Alliance Agreement [Member] | ||||
Execution Fees | 250,000,000 | |||
Revenue Amount | 52,621,159 | |||
Refund Amount | 59,759,793 | |||
Revenue VAT Amount | 2,631,058 | |||
Refund VAT Amount | $ 2,987,990 | |||
First Year [Member] | Strategic Alliance Agreement [Member] | ||||
Contract Initiation Date | Apr. 15, 2013 | Apr. 15, 2013 | ||
Contract Maturity Date | Sep. 30, 2014 | Sep. 30, 2014 | ||
Execution Fees | $ 50,000,000 | |||
Revenue Amount | [1] | 27,137,958 | ||
Refund Amount | [1] | 20,481,090 | ||
Revenue VAT Amount | 1,356,898 | |||
Refund VAT Amount | $ 1,024,054 | |||
Second Year [Member] | Strategic Alliance Agreement [Member] | ||||
Contract Initiation Date | Jan. 1, 2016 | Jan. 1, 2016 | ||
Contract Maturity Date | Dec. 31, 2016 | Dec. 31, 2016 | ||
Execution Fees | $ 35,000,000 | |||
Revenue Amount | [2] | 12,855,000 | ||
Refund Amount | [2] | 20,478,333 | ||
Revenue VAT Amount | 642,750 | |||
Refund VAT Amount | $ 1,023,917 | |||
Third Year [Member] | Strategic Alliance Agreement [Member] | ||||
Contract Initiation Date | Jan. 1, 2017 | Jan. 1, 2017 | ||
Contract Maturity Date | Dec. 31, 2017 | Dec. 31, 2017 | ||
Execution Fees | $ 33,000,000 | |||
Revenue Amount | [3] | 12,628,201 | ||
Refund Amount | [3] | 18,800,370 | ||
Revenue VAT Amount | 631,410 | |||
Refund VAT Amount | $ 940,019 | |||
Fourth Year [Member] | Strategic Alliance Agreement [Member] | ||||
Contract Initiation Date | Jan. 1, 2018 | Jan. 1, 2018 | ||
Contract Maturity Date | Dec. 31, 2018 | Dec. 31, 2018 | ||
Execution Fees | $ 33,000,000 | |||
Revenue Amount | 0 | |||
Refund Amount | 0 | |||
Revenue VAT Amount | 0 | |||
Refund VAT Amount | $ 0 | |||
Fifth Year [Member] | Strategic Alliance Agreement [Member] | ||||
Contract Initiation Date | Jan. 1, 2019 | Jan. 1, 2019 | ||
Contract Maturity Date | Dec. 31, 2019 | Dec. 31, 2019 | ||
Execution Fees | $ 33,000,000 | |||
Revenue Amount | 0 | |||
Refund Amount | 0 | |||
Revenue VAT Amount | 0 | |||
Refund VAT Amount | $ 0 | |||
Sixth Year [Member] | Strategic Alliance Agreement [Member] | ||||
Contract Initiation Date | Jan. 1, 2020 | Jan. 1, 2020 | ||
Contract Maturity Date | Dec. 31, 2020 | Dec. 31, 2020 | ||
Execution Fees | $ 33,000,000 | |||
Revenue Amount | 0 | |||
Refund Amount | 0 | |||
Revenue VAT Amount | 0 | |||
Refund VAT Amount | $ 0 | |||
Seventh Year [Member] | Strategic Alliance Agreement [Member] | ||||
Contract Initiation Date | Jan. 1, 2021 | Jan. 1, 2021 | ||
Contract Maturity Date | Dec. 31, 2021 | Dec. 31, 2021 | ||
Execution Fees | $ 33,000,000 | |||
Revenue Amount | 0 | |||
Refund Amount | 0 | |||
Revenue VAT Amount | 0 | |||
Refund VAT Amount | $ 0 | |||
[1] | The revenue recognition for the first contract year is based on the annual first year premium (“AFYP”) set in Alliance Agreement, which is difference from other contract years. From the second contract year to the seventh contract year, the revenue calculation is based on VONB. The Company recognized the first contract year’s revenue amount of $937,379 (NTD28,494,856) and refunded the amount of nil for the first contract year for the year ended December 31, 2017. On December 3, 2015 and February 23, 2016, the Company refunded the amounts of $152,235 (NTD 5,000,000) and $502,532 (NTD 16,505,144) to AIATW, respectively, due to the portion of performance sales targets not met during the first contract year. | |||
[2] | For the year ended December 31, 2017, the Company recognized the second contract year’s revenue amount of $444,028 (NTD13,497,750) and refunded the amount of $725,063 (NTD21,502,250) for the same contract period. | |||
[3] | For the year ended December 31, 2017, the Company recognized the third contract year’s revenue amount of $436,194 (NTD13,259,611) and refunded the amount of $665,653 (NTD19,740,389) for the same contract period. |
LONG-TERM LIABILITIES (Detail94
LONG-TERM LIABILITIES (Details Textual) | Jun. 14, 2017TWD ($) | Jun. 10, 2013TWD ($) | Apr. 20, 2016TWD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017TWD ($) | Dec. 31, 2016USD ($) | Jan. 02, 2018TWD ($) | Dec. 31, 2017TWD ($) | Mar. 12, 2017USD ($) | Mar. 12, 2017TWD ($) | Jul. 21, 2016USD ($) | Jul. 21, 2016TWD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2016TWD ($) | Feb. 23, 2016USD ($) | Feb. 23, 2016TWD ($) | Dec. 03, 2015USD ($) | Dec. 03, 2015TWD ($) | Jun. 10, 2013USD ($) | Jun. 10, 2013TWD ($) |
Debt Instrument [Line Items] | ||||||||||||||||||||
Accrued Long-term Liabilities | $ 0 | $ 77,440 | ||||||||||||||||||
Deferred Revenue, Revenue Recognized | 1,731,048 | $ 52,621,159 | 0 | |||||||||||||||||
Basic Business Promotion Fees | $ 330,000,000 | |||||||||||||||||||
Contract with Customer, Refund Liability | $ 17,904,000 | |||||||||||||||||||
Due to Other Related Parties, Current | 210,752 | 0 | ||||||||||||||||||
Service Agreements [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Deferred Revenue, Noncurrent | 495,615 | |||||||||||||||||||
Expected Consulting Service Fee Per Year | $ 4,000,000 | |||||||||||||||||||
Deferred Revenue, Current | 603,729 | 123,904 | ||||||||||||||||||
Expected Aggregate Consulting Service Fee Five Year | $ 20,000,000 | |||||||||||||||||||
Supplementary Agreement [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Accrued Long-term Liabilities | 0 | 77,440 | ||||||||||||||||||
Strategic Alliance Agreement [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Execution Fee Amount Paid | $ 8,326,700 | $ 250,000,000 | ||||||||||||||||||
Tax On Execution Fee | $ 11,904,762 | |||||||||||||||||||
Strategic Alliance Agreement [Member] | First Year [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Deferred Revenue, Revenue Recognized | 892,742 | 27,137,958 | ||||||||||||||||||
Strategic Alliance Agreement [Member] | Second Year [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Customer Refund Liability, Noncurrent | 690,537 | $ 20,478,333 | ||||||||||||||||||
Deferred Revenue, Revenue Recognized | 422,883 | 12,855,000 | ||||||||||||||||||
Strategic Alliance Agreement [Member] | Third Year [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Customer Refund Liability, Noncurrent | 633,955 | 18,800,370 | ||||||||||||||||||
Deferred Revenue, Revenue Recognized | 415,423 | 12,628,201 | ||||||||||||||||||
AHFL [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Due to Officers or Stockholders | $ 422,883 | $ 480,559 | $ 15,000,000 | $ 153,097 | $ 4,830,514 | $ 676,466 | $ 22,500,000 | |||||||||||||
Farglory [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Recognition Of Unrecognized Revenue | 68,951 | $ 2,096,000 | ||||||||||||||||||
Customer Refundable Fees, Refund Payments | 633,916 | |||||||||||||||||||
AIATW [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Deferred Revenue, Noncurrent | 4,239,130 | 4,742,272 | ||||||||||||||||||
Customer Refund Liability, Noncurrent | $ 530,056 | $ 15,719,185 | $ 160,573 | $ 4,761,905 | ||||||||||||||||
Deferred Revenue, Current | $ 633,955 | $ 1,966,814 |
PREFERRED STOCK (Details Textua
PREFERRED STOCK (Details Textual) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 28, 2011 |
Class of Stock [Line Items] | ||||
Preferred stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 | $ 0.00001 | $ 0.00001 |
Preferred Stock, Shares Outstanding | 1,000,000 | 1,000,000 | 1,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 1,000,000 | 1,000,000 | 1,000,000 | |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 |
Minimum [Member] | ||||
Class of Stock [Line Items] | ||||
Common Stock, Shares Authorized | 30,000,000 | |||
Maximum [Member] | ||||
Class of Stock [Line Items] | ||||
Common Stock, Shares Authorized | 100,000,000 | |||
Series A Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred Stock, Shares Outstanding | 1,000,000 | 1,000,000 | ||
Preferred Stock, Shares Issued | 1,000,000 | 1,000,000 |
STATUTORY RESERVES (Details Tex
STATUTORY RESERVES (Details Textual) | 12 Months Ended |
Dec. 31, 2017 | |
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% |
NON-CONTROLLING INTERESTS (Deta
NON-CONTROLLING INTERESTS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Non-Controlling Interests [Line Items] | |||
Noncontrolling Interests | $ 13,735,656 | $ 9,771,542 | $ 7,574,731 |
Net Income of Non-Controlling Interests | 3,023,227 | 2,127,428 | 1,623,198 |
Other Comprehensive Gain/(Loss) of Non-Controlling Interests | $ 940,887 | $ 147,487 | |
Law Enterprise [Member] | |||
Non-Controlling Interests [Line Items] | |||
% of Non-controlling Interests | 34.05% | 34.05% | |
Noncontrolling Interests | $ (243,240) | $ 17,386 | 199,699 |
Net Income of Non-Controlling Interests | (307,217) | (307,583) | |
Other Comprehensive Gain/(Loss) of Non-Controlling Interests | $ 46,591 | $ 125,270 | |
Law Broker [Member] | |||
Non-Controlling Interests [Line Items] | |||
% of Non-controlling Interests | 34.05% | 34.05% | |
Noncontrolling Interests | $ 13,900,341 | $ 9,621,159 | 7,197,128 |
Net Income of Non-Controlling Interests | 3,387,038 | 2,402,245 | |
Other Comprehensive Gain/(Loss) of Non-Controlling Interests | $ 892,144 | $ 21,786 | |
PFAL [Member] | |||
Non-Controlling Interests [Line Items] | |||
% of Non-controlling Interests | 49.00% | 49.00% | |
Noncontrolling Interests | $ 228,079 | $ 232,414 | 206,098 |
Net Income of Non-Controlling Interests | (3,817) | 26,411 | |
Other Comprehensive Gain/(Loss) of Non-Controlling Interests | $ (518) | $ (95) | |
MKI [Member] | |||
Non-Controlling Interests [Line Items] | |||
% of Non-controlling Interests | 49.00% | 49.00% | |
Noncontrolling Interests | $ (2,117) | $ (1,569) | (1,065) |
Net Income of Non-Controlling Interests | (548) | (504) | |
Other Comprehensive Gain/(Loss) of Non-Controlling Interests | $ 0 | $ 0 | |
PA Taiwan [Member] | |||
Non-Controlling Interests [Line Items] | |||
% of Non-controlling Interests | 49.00% | 49.00% | |
Noncontrolling Interests | $ (145,442) | $ (95,448) | (26,292) |
Net Income of Non-Controlling Interests | (52,169) | (70,341) | |
Other Comprehensive Gain/(Loss) of Non-Controlling Interests | $ 2,175 | $ 1,185 | |
PTC Nanjing [Member] | |||
Non-Controlling Interests [Line Items] | |||
% of Non-controlling Interests | 49.00% | 49.00% | |
Noncontrolling Interests | $ (1,965) | $ (2,400) | $ (837) |
Net Income of Non-Controlling Interests | (60) | (904) | |
Other Comprehensive Gain/(Loss) of Non-Controlling Interests | $ 495 | $ (659) |
INCOME TAX (Details)
INCOME TAX (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current | $ 3,426,261 | $ 2,207,581 | $ 1,553,650 |
Deferred | 87,456 | (87,983) | (34,424) |
Total | 3,513,717 | 2,119,598 | 1,519,226 |
Federal [Member] | |||
Current | 0 | 0 | 0 |
Deferred | 0 | 0 | 0 |
Total | 0 | 0 | 0 |
State [Member] | |||
Current | 0 | 0 | 0 |
Deferred | 0 | 0 | 0 |
Total | 0 | 0 | 0 |
Foreign [Member] | |||
Current | 3,426,261 | 2,207,581 | 1,553,650 |
Deferred | 87,456 | (87,983) | (34,424) |
Total | $ 3,513,717 | $ 2,119,598 | $ 1,519,226 |
INCOME TAX (Details 1)
INCOME TAX (Details 1) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets | ||
Net operating loss carry-forward | $ 874,934 | $ 993,050 |
Others | 123,406 | 84,597 |
Total | 998,340 | 1,077,647 |
Valuation allowance | (874,934) | (993,050) |
Deferred tax assets - noncurrent | 123,406 | 84,597 |
Deferred tax liabilities - noncurrent | $ 122,551 | $ 0 |
INCOME TAX (Details 2)
INCOME TAX (Details 2) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Income Tax [Line Items] | |||
US statutory rate | 34.00% | 34.00% | 34.00% |
Tax rate difference | (18.00%) | (20.00%) | (22.00%) |
Tax base difference | 0.00% | 1.00% | (1.00%) |
Income tax on undistributed earnings | 0.00% | 10.00% | 10.00% |
Loss in subsidiaries | 3.00% | 5.00% | 15.00% |
Un-deductible and non-taxable items | 7.00% | 0.00% | 0.00% |
Effective tax rate | 26.00% | 30.00% | 36.00% |
INCOME TAX (Details Textual)
INCOME TAX (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2013 | |
Schedule of Income Tax [Line Items] | ||||
Tax per financial statements | 26.00% | 30.00% | 36.00% | |
Tax Basis Percentage On Revenue | 10.00% | |||
Deferred Tax Liabilities, Net, Current | $ 122,551 | $ 0 | ||
Deferred Tax Assets, Other | 123,406 | 84,597 | ||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 67,577 | |||
Income Tax Examination, Penalties Accrued | 0 | 370,000 | $ 370,000 | |
Income Tax Examination, Penalties Expense | $ 370,000 | |||
Hong Kong | ||||
Schedule of Income Tax [Line Items] | ||||
Tax per financial statements | 16.50% | |||
PRC | ||||
Schedule of Income Tax [Line Items] | ||||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | 100.00% | |||
Subsidiary [Member] | ||||
Schedule of Income Tax [Line Items] | ||||
Tax per financial statements | 25.00% | |||
Taiwan | ||||
Schedule of Income Tax [Line Items] | ||||
Tax per financial statements | 17.00% | |||
Additional Income Tax Rate On Undistributed Earnings | 10.00% | |||
Deferred Tax Assets, Other | $ 123,406 | $ 84,597 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||||
Due to related parties, Total | $ 590,265 | $ 400,001 | $ 945,932 | |
Mr.Mao [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to related parties, Total | 409,054 | 361,379 | ||
Ms. Lu [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to related parties, Total | 161,380 | 0 | ||
Mr. Chwan Hau Li [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to related parties, Total | [1] | 0 | 32,374 | |
Mr.Zhu [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to related parties, Total | 2,128 | 1,994 | ||
Yuli Broker [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to related parties, Total | [2] | 0 | 265 | |
Yuli Investment [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to related parties, Total | [2] | 0 | 265 | |
I Health Management [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to related parties, Total | $ 17,703 | $ 3,724 | ||
[1] | Chwan Hau Li is a Director of the Company | |||
[2] | Mr. Lee is the Director of Law Broker |
RELATED PARTY TRANSACTIONS (103
RELATED PARTY TRANSACTIONS (Details Textual) | Dec. 07, 2016USD ($) | Dec. 07, 2016TWD ($) | Jul. 01, 2016USD ($) | Jul. 01, 2016TWD ($) | May 02, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Related Party Transaction [Line Items] | ||||||||
General and Administrative Expense | $ 14,959,384 | $ 13,852,277 | $ 14,715,011 | |||||
Director [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Sponsor Fees | $ 59,000 | $ 1,800,000 | ||||||
General and Administrative Expense | 59,214 | |||||||
I Health Management Corp [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Sponsor Fees | $ 42,000 | |||||||
Other Cost of Services | 13,315 | 3,724 | ||||||
Yuli Broker [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Operating Leases, Income Statement, Minimum Lease Revenue | $ 590 | $ 18,000 | ||||||
Rental Income, Nonoperating | 564 | 279 | ||||||
Yuli Investment [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Operating Leases, Income Statement, Minimum Lease Revenue | $ 590 | $ 18,000 | ||||||
Rental Income, Nonoperating | 564 | 279 | ||||||
Xude Investment [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt Instrument, Decrease, Forgiveness | 32,937 | |||||||
Apex Biz Solution [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Accounts Receivable, Net | $ 17,231 | $ 6,660 |
COMMITMENTS (Details)
COMMITMENTS (Details) | Dec. 31, 2017USD ($) |
Other Commitments [Line Items] | |
Twelve months ending December 31, 2018 | $ 2,022,510 |
Twelve months ending December 31, 2019 | 877,362 |
Twelve months ending December 31, 2020 | 197,971 |
Twelve months ending December 31, 2021 | 50,461 |
Twelve months ending December 31, 2022 | 14,199 |
Thereafter | 0 |
Total | $ 3,162,503 |
COMMITMENTS (Details Textual)
COMMITMENTS (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Commitments [Line Items] | |||
Operating Leases, Rent Expense | $ 2,537,348 | $ 2,132,950 | $ 1,735,521 |
FINANCIAL RISK MANAGEMENT AN106
FINANCIAL RISK MANAGEMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | |||
Time deposits | $ 21,470,113 | $ 5,352,347 | $ 7,748,467 |
Marketable securities: | |||
Fund | 33,381 | 2,388,107 | |
Structured Deposits | 1,248,340 | 0 | |
Loan receivable (Other current assets in Notes 6) | 1,510,347 | 1,486,846 | |
Stocks | 38,763 | ||
Long-term investment: | |||
Equity investment | 1,296,039 | 1,190,558 | |
Government bonds | 103,723 | 94,506 | |
Liabilities | |||
Short-term loans | 2,350,000 | 0 | 222,235 |
Due to related parties | 590,265 | 400,001 | $ 945,932 |
Convertible bonds | 200,000 | 0 | |
Long-term loans | 248,986 | 254,907 | |
Fair Value, Inputs, Level 1 [Member] | |||
Assets | |||
Time deposits | 0 | 0 | |
Marketable securities: | |||
Fund | 33,381 | 2,388,107 | |
Structured Deposits | 0 | ||
Loan receivable (Other current assets in Notes 6) | 0 | 0 | |
Stocks | 38,763 | ||
Long-term investment: | |||
Equity investment | 0 | 0 | |
Government bonds | 0 | 0 | |
Liabilities | |||
Short-term loans | 0 | ||
Due to related parties | 0 | 0 | |
Convertible bonds | 0 | 0 | |
Long-term loans | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | |||
Assets | |||
Time deposits | 22,471,945 | 7,808,058 | |
Marketable securities: | |||
Fund | 0 | 0 | |
Structured Deposits | 1,248,340 | ||
Loan receivable (Other current assets in Notes 6) | 0 | 0 | |
Stocks | 0 | ||
Long-term investment: | |||
Equity investment | 0 | 0 | |
Government bonds | 103,723 | 94,506 | |
Liabilities | |||
Short-term loans | 0 | ||
Due to related parties | 0 | 0 | |
Convertible bonds | 0 | 0 | |
Long-term loans | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | |||
Assets | |||
Time deposits | 0 | 0 | |
Marketable securities: | |||
Fund | 0 | 0 | |
Structured Deposits | 0 | ||
Loan receivable (Other current assets in Notes 6) | 1,510,347 | 1,486,846 | |
Stocks | 0 | ||
Long-term investment: | |||
Equity investment | 1,941,800 | 1,288,279 | |
Government bonds | 0 | 0 | |
Liabilities | |||
Short-term loans | 2,350,000 | ||
Due to related parties | 590,265 | 400,001 | |
Convertible bonds | 200,000 | 200,000 | |
Long-term loans | $ 248,986 | $ 254,907 |
FINANCIAL RISK MANAGEMENT AN107
FINANCIAL RISK MANAGEMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS (Details Textual) | 1 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Dec. 31, 2017 | |
Structured Deposits [Member] | ||
Receivable with Imputed Interest, Description | The fair value of the structured deposit is determined based on present value of the structured deposit, using annum yield of 3.9%. | |
Convertible Debt [Member] | ||
Debt Instrument, Convertible, Threshold Trading Days | (10) | |
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | 80.00% | |
Rich Fountain Limited [Member] | ||
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 4.50% |
RECLASSIFICATIONS (Details)
RECLASSIFICATIONS (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Cash and cash equivalents | $ 15,473,949 | $ 20,169,455 | $ 13,083,357 | $ 15,473,949 | $ 20,169,455 | $ 13,083,357 |
Time deposits | 21,470,113 | 5,352,347 | 7,748,467 | |||
Other current assets | 2,193,086 | 1,831,318 | 1,055,015 | |||
Other assets | $ 2,399,875 | 785,715 | 791,223 | |||
Cash flows from investing activities: | ||||||
Purchases of time deposits | (32,699,028) | (7,161,459) | (9,562,553) | |||
Proceeds from maturities of time deposits | 17,437,704 | 9,697,617 | 10,556,173 | |||
Net cash provided by (used in) investing activities | (14,435,727) | (89,341) | 609,777 | |||
Foreign currency translation | 1,577,935 | 7,530 | (564,053) | |||
Net increase (decrease) in cash and cash equivalents | (4,695,506) | 7,086,098 | 2,521,886 | |||
Cash and cash equivalents, beginning balance | 20,169,455 | 13,083,357 | 10,561,471 | |||
Cash and cash equivalents, ending balance | 15,473,949 | 20,169,455 | 13,083,357 | |||
Scenario, Previously Reported [Member] | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Cash and cash equivalents | 25,521,802 | 25,521,802 | 20,831,824 | 25,521,802 | 20,831,824 | |
Time deposits | 0 | 0 | ||||
Other current assets | 1,890,551 | 1,055,015 | ||||
Other assets | $ 726,482 | $ 791,223 | ||||
Cash flows from investing activities: | ||||||
Net cash provided by (used in) investing activities | (2,625,499) | (383,843) | ||||
Foreign currency translation | 147,568 | (832,294) | ||||
Net increase (decrease) in cash and cash equivalents | 4,689,978 | 1,260,025 | ||||
Cash and cash equivalents, beginning balance | $ 25,521,802 | 20,831,824 | 19,571,799 | |||
Cash and cash equivalents, ending balance | $ 25,521,802 | $ 20,831,824 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue | |||
Total revenue | $ 72,848,444 | $ 69,934,006 | $ 55,023,766 |
Income (loss) from operations | |||
Total income (loss) from operations | 12,743,420 | 6,684,490 | 1,800,585 |
Depreciation and amortization expenses | |||
Total depreciation and amortization expenses | 561,184 | 626,028 | 463,201 |
Interest income | |||
Total interest income | 339,169 | 208,665 | 230,509 |
Interest expenses | |||
Total interest expenses | 35,375 | 19,722 | 654 |
Income tax | |||
Total income tax | 3,513,717 | 2,119,598 | 1,519,226 |
Net income (loss) | |||
Total net income (loss) | 10,177,865 | 5,019,583 | 661,285 |
Elimination adjustment | |||
Revenue | |||
Total revenue | (68,276) | (61,058) | 0 |
Income (loss) from operations | |||
Total income (loss) from operations | 141,410 | 132,432 | 42,884 |
Depreciation and amortization expenses | |||
Total depreciation and amortization expenses | 0 | 0 | 0 |
Interest income | |||
Total interest income | (85,215) | (30,116) | (9,066) |
Interest expenses | |||
Total interest expenses | (85,215) | (30,116) | (9,066) |
Income tax | |||
Total income tax | 0 | 0 | 0 |
Net income (loss) | |||
Total net income (loss) | 7,010 | 7,220 | 6,187 |
Taiwan | |||
Revenue | |||
Total revenue | 62,147,136 | 61,208,145 | 48,669,261 |
Income (loss) from operations | |||
Total income (loss) from operations | 12,109,928 | 7,303,616 | 3,073,888 |
Depreciation and amortization expenses | |||
Total depreciation and amortization expenses | 466,020 | 541,461 | 366,717 |
Interest income | |||
Total interest income | 422,688 | 234,316 | 208,526 |
Interest expenses | |||
Total interest expenses | 98,746 | 38,083 | 9,720 |
Income tax | |||
Total income tax | 3,236,264 | 2,095,827 | 1,496,206 |
Net income (loss) | |||
Total net income (loss) | 10,050,593 | 5,803,241 | 1,963,988 |
PRC | |||
Revenue | |||
Total revenue | 10,467,488 | 8,461,511 | 5,892,928 |
Income (loss) from operations | |||
Total income (loss) from operations | 489,017 | (817,914) | (1,525,560) |
Depreciation and amortization expenses | |||
Total depreciation and amortization expenses | 94,877 | 84,279 | 96,172 |
Interest income | |||
Total interest income | 1,696 | 4,464 | 31,047 |
Interest expenses | |||
Total interest expenses | 21,844 | 11,755 | 0 |
Income tax | |||
Total income tax | 282,504 | 13,135 | 16,429 |
Net income (loss) | |||
Total net income (loss) | 128,052 | (844,778) | (1,531,555) |
Hong Kong | |||
Revenue | |||
Total revenue | 302,096 | 325,408 | 461,577 |
Income (loss) from operations | |||
Total income (loss) from operations | 3,065 | 66,356 | 209,373 |
Depreciation and amortization expenses | |||
Total depreciation and amortization expenses | 287 | 288 | 312 |
Interest income | |||
Total interest income | 0 | 1 | 2 |
Interest expenses | |||
Total interest expenses | 0 | 0 | 0 |
Income tax | |||
Total income tax | (5,051) | 10,636 | 6,591 |
Net income (loss) | |||
Total net income (loss) | $ (7,790) | $ 53,900 | $ 222,665 |
SEGMENT REPORTING (Details 1)
SEGMENT REPORTING (Details 1) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2015 | |
Capital expenditures | ||||||
Total capital expenditures | $ (542,428) | $ (984,500) | ||||
Long-lived assets | ||||||
Total long-lived assets | 1,722,080 | 1,711,124 | ||||
Reportable assets | ||||||
Total reportable assets | 59,273,243 | 49,367,703 | $ 49,093,022 | $ 46,943,841 | $ 47,187,302 | $ 37,361,976 |
Elimination adjustment | ||||||
Long-lived assets | ||||||
Total long-lived assets | 0 | 0 | ||||
Reportable assets | ||||||
Total reportable assets | (48,910,083) | (54,908,429) | ||||
Taiwan | ||||||
Capital expenditures | ||||||
Total capital expenditures | (507,983) | (835,564) | ||||
Long-lived assets | ||||||
Total long-lived assets | 1,612,125 | 1,453,772 | ||||
Reportable assets | ||||||
Total reportable assets | 96,399,321 | 90,388,991 | ||||
PRC | ||||||
Capital expenditures | ||||||
Total capital expenditures | (34,445) | (148,936) | ||||
Long-lived assets | ||||||
Total long-lived assets | 109,597 | 256,704 | ||||
Reportable assets | ||||||
Total reportable assets | 11,140,124 | 13,325,433 | ||||
Hong Kong | ||||||
Capital expenditures | ||||||
Total capital expenditures | 0 | 0 | ||||
Long-lived assets | ||||||
Total long-lived assets | 358 | 648 | ||||
Reportable assets | ||||||
Total reportable assets | $ 643,881 | $ 561,708 |
RESTATEMENT (Details)
RESTATEMENT (Details) - USD ($) | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Assets, Current [Abstract] | ||||||||||
Cash and cash equivalents | $ 15,473,949 | $ 20,169,455 | $ 13,083,357 | $ 10,561,471 | ||||||
Time deposits | 21,470,113 | 5,352,347 | 7,748,467 | |||||||
Marketable securities | 33,381 | 2,426,870 | 2,369,082 | |||||||
Accounts receivable, net | 13,301,006 | 15,774,159 | 9,630,993 | |||||||
Other current assets | 2,193,086 | 1,831,318 | 1,055,015 | |||||||
Total current assets | 53,719,875 | 45,554,149 | 33,886,914 | |||||||
Property, Plant and Equipment, Net | 946,302 | 926,905 | 918,798 | |||||||
Intangible assets | 775,778 | 784,219 | 468,779 | |||||||
Goodwill | 31,651 | $ 31,651 | $ 31,651 | $ 31,651 | 31,651 | 31,651 | ||||
Long-term investment | 1,399,762 | 1,285,064 | 1,264,611 | |||||||
Other assets | 2,399,875 | 785,715 | 791,223 | |||||||
TOTAL ASSETS | 59,273,243 | 49,093,022 | 46,943,841 | 47,187,302 | 49,367,703 | 37,361,976 | ||||
Current liabilities | ||||||||||
Taxes payable | 3,508,790 | 2,249,869 | 1,521,962 | |||||||
Due to related parties, Total | 590,265 | 400,001 | 945,932 | |||||||
Other current liabilities | 12,789,588 | 18,639,909 | 10,870,750 | |||||||
Short-term loan | 2,350,000 | 0 | 222,235 | |||||||
Total current liabilities | 19,438,643 | 21,289,779 | 13,560,879 | |||||||
Convertible bonds | 0 | 200,000 | ||||||||
Long-term loans | 248,986 | 254,907 | ||||||||
Long-term liabilities | 4,842,240 | 5,315,327 | 6,594,530 | |||||||
TOTAL LIABILITIES | 24,529,869 | 27,060,013 | 20,155,409 | |||||||
STOCKHOLDERS’ EQUITY | ||||||||||
Preferred stock, par value $0.00001, 10,000,000 authorized, 1,000,000 issued and outstanding | 10 | 10 | 10 | |||||||
Common stock, par value $0.00001, 100,000,000 authorized, 29,452,669 issued and outstanding | 295 | 295 | 295 | |||||||
Additional paid-in capital | 8,190,449 | 8,157,512 | 8,157,512 | |||||||
Statutory reserves | 5,781,008 | 3,799,585 | 2,385,327 | |||||||
Retained earnings | 6,419,937 | 4,623,967 | 3,764,213 | 2,112,410 | 1,246,722 | (231,175) | ||||
Accumulated other comprehensive gain/ (loss) | 616,019 | (667,976) | (680,133) | |||||||
Stockholders’ equity attribute to parent’s shareholders | 21,007,718 | 18,037,449 | 16,681,478 | 14,661,404 | 12,536,148 | 9,631,836 | ||||
Noncontrolling interest | 13,735,656 | 9,771,542 | 7,574,731 | |||||||
TOTAL STOCKHOLDERS’ EQUITY | 34,743,374 | 30,304,386 | 28,255,520 | 25,753,036 | 22,307,690 | 17,206,567 | 13,812,732 | |||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 59,273,243 | 49,093,022 | 46,943,841 | 47,187,302 | 49,367,703 | 37,361,976 | ||||
Scenario, Previously Reported [Member] | ||||||||||
Assets, Current [Abstract] | ||||||||||
Cash and cash equivalents | 25,521,802 | 20,831,824 | $ 19,571,799 | |||||||
Time deposits | 0 | 0 | ||||||||
Marketable securities | 2,426,870 | 2,369,082 | ||||||||
Accounts receivable, net | 15,774,159 | 9,630,993 | ||||||||
Other current assets | 1,890,551 | 1,055,015 | ||||||||
Total current assets | 45,613,382 | 33,886,914 | ||||||||
Property, Plant and Equipment, Net | 926,905 | 918,798 | ||||||||
Intangible assets | 784,219 | 468,779 | ||||||||
Goodwill | 2,071,491 | 2,071,491 | 2,071,491 | 2,071,491 | 2,071,491 | |||||
Long-term investment | 1,285,064 | 1,264,611 | ||||||||
Other assets | 726,482 | 791,223 | ||||||||
TOTAL ASSETS | 51,132,862 | 48,983,681 | 49,227,142 | 51,407,543 | 39,401,816 | |||||
Current liabilities | ||||||||||
Taxes payable | 2,249,869 | 1,521,962 | ||||||||
Due to related parties, Total | 400,001 | 945,932 | ||||||||
Other current liabilities | 18,639,909 | 10,870,750 | ||||||||
Short-term loan | 222,235 | |||||||||
Total current liabilities | 21,289,779 | 13,560,879 | ||||||||
Convertible bonds | 200,000 | |||||||||
Long-term loans | 254,907 | |||||||||
Long-term liabilities | 5,315,327 | 6,594,530 | ||||||||
TOTAL LIABILITIES | 27,060,013 | 20,155,409 | ||||||||
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, 29,452,669 issued and outstanding | 295 | 295 | ||||||||
Additional paid-in capital | 8,157,512 | 8,157,512 | ||||||||
Statutory reserves | 3,799,585 | 2,385,327 | ||||||||
Retained earnings | 6,663,807 | 5,804,053 | 4,152,250 | 3,286,562 | 1,808,665 | |||||
Accumulated other comprehensive gain/ (loss) | (667,976) | (680,133) | ||||||||
Stockholders’ equity attribute to parent’s shareholders | 20,077,289 | 18,721,318 | 16,701,244 | 14,575,988 | 11,671,676 | |||||
Noncontrolling interest | 9,771,542 | 7,574,731 | ||||||||
TOTAL STOCKHOLDERS’ EQUITY | 32,344,226 | 30,295,360 | 27,792,876 | 24,347,530 | 19,246,407 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 51,132,862 | 48,983,681 | 49,227,142 | 51,407,543 | 39,401,816 | |||||
Restatement Adjustment [Member] | ||||||||||
Assets, Current [Abstract] | ||||||||||
Cash and cash equivalents | [1] | (5,352,347) | (7,748,467) | |||||||
Time deposits | [1] | 5,352,347 | 7,748,467 | |||||||
Marketable securities | 0 | 0 | ||||||||
Accounts receivable, net | 0 | 0 | ||||||||
Other current assets | (59,233) | [1] | 0 | |||||||
Total current assets | (59,233) | [1] | 0 | |||||||
Property, Plant and Equipment, Net | 0 | 0 | ||||||||
Intangible assets | 0 | 0 | ||||||||
Goodwill | (2,039,840) | (2,039,840) | (2,039,840) | (2,039,840) | (2,039,840) | [2] | ||||
Long-term investment | 0 | 0 | ||||||||
Other assets | 59,233 | [1] | 0 | |||||||
TOTAL ASSETS | (2,039,840) | (2,039,840) | (2,039,840) | (2,039,840) | (2,039,840) | [2] | ||||
Current liabilities | ||||||||||
Taxes payable | 0 | 0 | ||||||||
Due to related parties, Total | 0 | 0 | ||||||||
Other current liabilities | 0 | 0 | ||||||||
Short-term loan | 0 | |||||||||
Total current liabilities | 0 | 0 | ||||||||
Convertible bonds | 0 | |||||||||
Long-term loans | 0 | |||||||||
Long-term liabilities | 0 | 0 | ||||||||
TOTAL LIABILITIES | 0 | 0 | ||||||||
STOCKHOLDERS’ EQUITY | ||||||||||
Preferred stock, par value $0.00001, 10,000,000 authorized, 1,000,000 issued and outstanding | 0 | 0 | ||||||||
Common stock, par value $0.00001, 100,000,000 authorized, 29,452,669 issued and outstanding | 0 | 0 | ||||||||
Additional paid-in capital | 0 | 0 | ||||||||
Statutory reserves | 0 | 0 | ||||||||
Retained earnings | (2,039,840) | (2,039,840) | (2,039,840) | (2,039,840) | (2,039,840) | [2] | ||||
Accumulated other comprehensive gain/ (loss) | 0 | 0 | ||||||||
Stockholders’ equity attribute to parent’s shareholders | (2,039,840) | (2,039,840) | (2,039,840) | (2,039,840) | (2,039,840) | [2] | ||||
Noncontrolling interest | 0 | 0 | ||||||||
TOTAL STOCKHOLDERS’ EQUITY | (2,039,840) | (2,039,840) | (2,039,840) | (2,039,840) | (2,039,840) | [2] | ||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ (2,039,840) | $ (2,039,840) | $ (2,039,840) | $ (2,039,840) | $ (2,039,840) | [2] | ||||
[1] | See Note 25 for additional information on the reclassifications. | |||||||||
[2] | The Company corrected the acquisition method from business acquisition to asset acquisition. The consideration provided in excess of fair market value of the purchased entity cannot be treated as goodwill. The excess payment is restated to compensation on asset acquisition. |
RESTATEMENT (Details) (Parenthe
RESTATEMENT (Details) (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 28, 2011 |
Preferred stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 | $ 0.00001 | $ 0.00001 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | 10,000,000 | |
Preferred Stock, Shares Issued | 1,000,000 | 1,000,000 | 1,000,000 | |
Preferred Stock, Shares Outstanding | 1,000,000 | 1,000,000 | 1,000,000 | 10,000,000 |
Common Stock, Par Or Stated Value Per Share | $ 0.00001 | $ 0.00001 | $ 0.00001 | |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 29,452,669 | 29,452,669 | 29,452,669 | |
Common Stock, Shares, Outstanding | 29,452,669 | 29,452,669 | 29,452,669 |
RESTATEMENT (Details 1)
RESTATEMENT (Details 1) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Revenue | $ 72,848,444 | $ 69,934,006 | $ 55,023,766 | |
Cost of revenue | 42,801,007 | 46,554,495 | 35,423,762 | |
Gross profit | 30,047,437 | 23,379,511 | 19,600,004 | |
Income (loss) from operations | ||||
Selling | 2,344,633 | 2,842,744 | 3,084,408 | |
General and administrative | 14,959,384 | 13,852,277 | 14,715,011 | |
Total operating expense | 17,304,017 | 16,695,021 | 17,799,419 | |
Income from operations | 12,743,420 | 6,684,490 | 1,800,585 | |
Other Income (Expenses) | ||||
Interest income | 339,169 | 208,665 | 230,509 | |
Interest expenses | (35,375) | (19,722) | (654) | |
Other - net | 312,066 | (8,125) | 150,071 | |
Total other income (expenses) | 948,162 | 454,691 | 379,926 | |
Income before income taxes | 13,691,582 | 7,139,181 | 2,180,511 | |
Net income (loss) | 10,177,865 | 5,019,583 | 661,285 | |
Net income attributable to the noncontrolling interest | 3,023,227 | 2,127,428 | 1,623,198 | |
Net income (loss) attributable to parent’s shareholders | 7,154,638 | 2,892,155 | (961,913) | |
Income tax expense | 3,513,717 | 2,119,598 | 1,519,226 | |
Other comprehensive items | ||||
Foreign currency translations gain(loss) | 1,241,081 | (30,045) | (329,562) | |
Other | 42,914 | 42,202 | 310 | |
Other comprehensive income (loss) attributable to parent’s shareholder | 1,283,995 | 12,157 | (329,252) | |
Other comprehensive items attributable to noncontrolling interest | 8,438,633 | 2,904,312 | (1,291,165) | |
Comprehensive income attributable to noncontrolling interest | 3,964,114 | 2,274,915 | 1,145,460 | |
Other comprehensive items attributable to noncontrolling interest | $ 940,887 | $ 147,487 | $ (477,738) | |
Weighted average shares outstanding: | ||||
Basic | 29,452,669 | 29,452,669 | 29,365,834 | |
Diluted | 30,509,552 | 30,462,097 | 29,365,834 | |
Income per share: | ||||
Basic | $ 0.243 | $ 0.098 | $ (0.033) | |
Diluted | $ 0.235 | $ 0.095 | $ (0.033) | |
Scenario, Previously Reported [Member] | ||||
Revenue | $ 55,023,766 | |||
Cost of revenue | 35,423,762 | |||
Gross profit | 19,600,004 | |||
Income (loss) from operations | ||||
Selling | 3,084,408 | |||
General and administrative | 12,675,171 | |||
Total operating expense | 15,759,579 | |||
Income from operations | 3,840,425 | |||
Other Income (Expenses) | ||||
Interest income | 230,509 | |||
Interest expenses | (654) | |||
Other - net | 150,071 | |||
Total other income (expenses) | 379,926 | |||
Income before income taxes | 4,220,351 | |||
Net income (loss) | 2,701,125 | |||
Net income attributable to the noncontrolling interest | 1,623,198 | |||
Net income (loss) attributable to parent’s shareholders | 1,077,927 | |||
Income tax expense | 1,519,226 | |||
Other comprehensive items | ||||
Foreign currency translations gain(loss) | (329,562) | |||
Other comprehensive income (loss) attributable to parent’s shareholder | (329,252) | |||
Other comprehensive items attributable to noncontrolling interest | 748,675 | |||
Comprehensive income attributable to noncontrolling interest | 1,145,460 | |||
Other comprehensive items attributable to noncontrolling interest | $ (477,738) | |||
Weighted average shares outstanding: | ||||
Basic | 29,365,834 | |||
Diluted | 30,365,834 | |||
Income per share: | ||||
Basic | $ 0.037 | |||
Diluted | $ 0.035 | |||
Scenario, Adjustment [Member] | ||||
Revenue | $ 0 | |||
Cost of revenue | 0 | |||
Gross profit | 0 | |||
Income (loss) from operations | ||||
Selling | 0 | |||
General and administrative | [1] | 2,039,840 | ||
Total operating expense | [1] | 2,039,840 | ||
Income from operations | [1] | (2,039,840) | ||
Other Income (Expenses) | ||||
Interest income | 0 | |||
Interest expenses | 0 | |||
Other - net | 0 | |||
Total other income (expenses) | 0 | |||
Income before income taxes | [1] | (2,039,840) | ||
Net income (loss) | [1] | (2,039,840) | ||
Net income attributable to the noncontrolling interest | 0 | |||
Net income (loss) attributable to parent’s shareholders | [1] | (2,039,840) | ||
Income tax expense | 0 | |||
Other comprehensive items | ||||
Foreign currency translations gain(loss) | 0 | |||
Other comprehensive income (loss) attributable to parent’s shareholder | 0 | |||
Other comprehensive items attributable to noncontrolling interest | [1] | (2,039,840) | ||
Comprehensive income attributable to noncontrolling interest | 0 | |||
Other comprehensive items attributable to noncontrolling interest | $ 0 | |||
[1] | The Company corrected the acquisition method from business acquisition to asset acquisition. The consideration provided in excess of fair market value of the purchased entity cannot be treated as goodwill. The excess payment is restated to compensation on asset acquisition. |
QUARTERLY INFORMATION (Details)
QUARTERLY INFORMATION (Details) - USD ($) | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current assets | ||||||||
Goodwill | $ 31,651 | $ 31,651 | $ 31,651 | $ 31,651 | $ 31,651 | $ 31,651 | ||
TOTAL ASSETS | 59,273,243 | 49,093,022 | 46,943,841 | 47,187,302 | 49,367,703 | 37,361,976 | ||
STOCKHOLDERS' EQUITY | ||||||||
Retained earnings | 6,419,937 | 4,623,967 | 3,764,213 | 2,112,410 | 1,246,722 | (231,175) | ||
Stockholder’s equity attribute to parent’s shareholders | 21,007,718 | 18,037,449 | 16,681,478 | 14,661,404 | 12,536,148 | 9,631,836 | ||
TOTAL STOCKHOLDERS’ EQUITY | 34,743,374 | 30,304,386 | 28,255,520 | 25,753,036 | 22,307,690 | 17,206,567 | $ 13,812,732 | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 59,273,243 | 49,093,022 | 46,943,841 | 47,187,302 | 49,367,703 | 37,361,976 | ||
Restatement Adjustment [Member] | ||||||||
Current assets | ||||||||
Goodwill | (2,039,840) | (2,039,840) | (2,039,840) | (2,039,840) | (2,039,840) | [1] | ||
TOTAL ASSETS | (2,039,840) | (2,039,840) | (2,039,840) | (2,039,840) | (2,039,840) | [1] | ||
STOCKHOLDERS' EQUITY | ||||||||
Retained earnings | (2,039,840) | (2,039,840) | (2,039,840) | (2,039,840) | (2,039,840) | [1] | ||
Stockholder’s equity attribute to parent’s shareholders | (2,039,840) | (2,039,840) | (2,039,840) | (2,039,840) | (2,039,840) | [1] | ||
TOTAL STOCKHOLDERS’ EQUITY | (2,039,840) | (2,039,840) | (2,039,840) | (2,039,840) | (2,039,840) | [1] | ||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | (2,039,840) | (2,039,840) | (2,039,840) | (2,039,840) | (2,039,840) | [1] | ||
Scenario, Previously Reported [Member] | ||||||||
Current assets | ||||||||
Goodwill | 2,071,491 | 2,071,491 | 2,071,491 | 2,071,491 | 2,071,491 | |||
TOTAL ASSETS | 51,132,862 | 48,983,681 | 49,227,142 | 51,407,543 | 39,401,816 | |||
STOCKHOLDERS' EQUITY | ||||||||
Retained earnings | 6,663,807 | 5,804,053 | 4,152,250 | 3,286,562 | 1,808,665 | |||
Stockholder’s equity attribute to parent’s shareholders | 20,077,289 | 18,721,318 | 16,701,244 | 14,575,988 | 11,671,676 | |||
TOTAL STOCKHOLDERS’ EQUITY | 32,344,226 | 30,295,360 | 27,792,876 | 24,347,530 | 19,246,407 | |||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 51,132,862 | $ 48,983,681 | $ 49,227,142 | $ 51,407,543 | $ 39,401,816 | |||
[1] | The Company corrected the acquisition method from business acquisition to asset acquisition. The consideration provided in excess of fair market value of the purchased entity cannot be treated as goodwill. The excess payment is restated to compensation on asset acquisition. |
SUBSEQUENT EVENTS (Details Text
SUBSEQUENT EVENTS (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jan. 25, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Subsequent Event [Line Items] | |||||
Effective Income Tax Rate Reconciliation, At Federal Statutory Income Tax Rate | 34.00% | 34.00% | 34.00% | ||
Short-term Debt | $ 2,350,000 | $ 0 | $ 222,235 | ||
Taiwan [Member] | |||||
Subsequent Event [Line Items] | |||||
Effective Income Tax Rate Reconciliation, At Federal Statutory Income Tax Rate | 17.00% | ||||
Scenario, Plan [Member] | |||||
Subsequent Event [Line Items] | |||||
Effective Income Tax Rate Reconciliation, At Federal Statutory Income Tax Rate | 21.00% | ||||
Scenario, Plan [Member] | Taiwan [Member] | |||||
Subsequent Event [Line Items] | |||||
Effective Income Tax Rate Reconciliation, At Federal Statutory Income Tax Rate | 20.00% | ||||
Subsequent Event [Member] | Loan F [Member] | |||||
Subsequent Event [Line Items] | |||||
Short-term Debt | $ 1,500,000 | ||||
Debt Instrument, Interest Rate, Effective Percentage | 2.95% | ||||
Cash Collateral for Borrowed Securities | $ 2,000,000 | ||||
Debt Instrument, Maturity Date | Feb. 23, 2018 | Feb. 23, 2018 |