Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 29, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | China United Insurance Service, Inc. | ||
Entity Central Index Key | 0001512927 | ||
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 | $ 65,505,414 | ||
Trading Symbol | CUII | ||
Entity Common Stock, Shares Outstanding | 29,452,669 | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 16,663,942 | $ 15,473,949 |
Time deposits | 25,740,164 | 21,470,113 |
Restricted cash equivalents | 3,320,802 | 0 |
Structured deposits | 0 | 1,248,340 |
Accounts receivable | 15,332,355 | 13,301,006 |
Other current assets | 1,155,678 | 2,226,467 |
Total current assets | 62,212,941 | 53,719,875 |
Property, plant and equipment, net | 1,195,695 | 946,302 |
Intangible assets, net | 575,985 | 775,778 |
Long-term investments | 2,477,558 | 1,399,762 |
Restricted cash – long-term | 655,027 | 469,615 |
Other assets | 1,764,638 | 1,961,911 |
TOTAL ASSETS | 68,881,844 | 59,273,243 |
Current liabilities | ||
Short-term loans | 8,435,587 | 2,350,000 |
Income tax payable - short-term | 1,599,146 | 3,508,790 |
Commissions payable to sales professionals | 8,014,480 | 6,415,071 |
Convertible bonds | 0 | 200,000 |
Due to related parties | 996,565 | 801,017 |
Other current liabilities | 7,348,841 | 6,163,765 |
Total current liabilities | 26,394,619 | 19,438,643 |
Long-term loans | 0 | 248,986 |
Income tax payable - long-term | 1,007,323 | 0 |
Other liabilities | 2,537,072 | 4,842,240 |
TOTAL LIABILITIES | 29,939,014 | 24,529,869 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS EQUITY | ||
Preferred stock, $0.00001 par value, 10,000,000 authorized, 1,000,000 issued and outstanding | 10 | 10 |
Common stock, $0.00001 par value, 100,000,000 authorized, 29,452,669 issued and outstanding | 295 | 295 |
Additional paid-in capital | 8,190,449 | 8,190,449 |
Statutory reserves | 7,299,123 | 5,781,008 |
Retained earnings | 7,273,227 | 6,419,937 |
Accumulated other comprehensive income | (171,318) | 616,019 |
Total stockholders' equity attributable to shareholders of the Company | 22,591,786 | 21,007,718 |
Noncontrolling interests | 16,351,044 | 13,735,656 |
TOTAL STOCKHOLDERS' EQUITY | 38,942,830 | 34,743,374 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 68,881,844 | $ 59,273,243 |
CONSOLIDATED BALANCE SHEETS _PA
CONSOLIDATED BALANCE SHEETS [PARENTHETICAL] - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Preferred stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred Stock, shares issued | 1,000,000 | 1,000,000 |
Preferred Stock, shares outstanding | 1,000,000 | 1,000,000 |
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 29,452,669 | 29,452,669 |
Common stock, shares outstanding | 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, 2018 | Dec. 31, 2017 | |
Revenue | $ 78,667,731 | $ 72,848,444 |
Cost of revenue | 49,314,709 | 42,801,007 |
Gross profit | 29,353,022 | 30,047,437 |
Operating expenses: | ||
Selling | 3,560,840 | 2,344,633 |
General and administrative | 17,854,923 | 14,959,384 |
Total operating expenses | 21,415,763 | 17,304,017 |
Income from operations | 7,937,259 | 12,743,420 |
Other income (expenses): | ||
Interest income | 446,859 | 339,169 |
Interest expenses | (130,523) | (35,375) |
Dividend income | 354,224 | 332,302 |
Other - net | 418,999 | 312,066 |
Total other income, net | 1,089,559 | 948,162 |
Income before income tax | 9,026,818 | 13,691,582 |
Income tax expense | 3,610,172 | 3,513,717 |
Net income | 5,416,646 | 10,177,865 |
Net income attributable to noncontrolling interests | 3,045,241 | 3,023,227 |
Net income attributable to shareholders of the Company | 2,371,405 | 7,154,638 |
Other comprehensive income (loss) | ||
Foreign currency translation gain (loss) | (787,695) | 1,241,081 |
Other | 358 | 42,914 |
Total other comprehensive income | (787,337) | 1,283,995 |
Less: comprehensive income attributable to noncontrolling interests | (429,854) | 940,887 |
Comprehensive income attributable to shareholders of the Company | $ 1,584,068 | $ 8,438,633 |
Weighted average shares outstanding: | ||
Basic | 29,452,669 | 29,452,669 |
Diluted | 29,452,669 | 30,509,552 |
Earnings per share attributable to common shareholders of the Company: | ||
Basic | $ 0.078 | $ 0.243 |
Diluted | $ 0.078 | $ 0.235 |
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 Interest [Member] |
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 | 2,181,599 | 0 | 0 | 0 | 0 | 1,241,081 | 0 | 1,241,081 | 940,518 |
Other comprehensive gain | 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 | |||||||
Appropriation of reserves | 0 | $ 0 | $ 0 | 0 | 1,518,115 | 0 | (1,518,115) | 0 | 0 |
Foreign currency translation gain | (1,217,733) | 0 | 0 | 0 | 0 | (787,695) | 0 | (787,695) | (430,038) |
Other comprehensive gain | 542 | 0 | 0 | 0 | 0 | 358 | 0 | 358 | 184 |
Net income | 5,416,646 | 0 | 0 | 0 | 0 | 0 | 2,371,405 | 2,371,405 | 3,045,242 |
Balance at Dec. 31, 2018 | $ 38,942,830 | $ 295 | $ 10 | $ 8,190,449 | $ 7,299,123 | $ (171,318) | $ 7,273,227 | $ 22,591,786 | $ 16,351,044 |
Balance (in shares) at Dec. 31, 2018 | 29,452,669 | 1,000,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Cash flows from operating activities: | |||
Net income | $ 5,416,646 | $ 10,177,865 | |
Adjustment to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 636,980 | 561,184 | |
Pension plan | 0 | 2,169 | |
Amortization of bond premium | 569 | 0 | |
Loss on debt forgiveness | 12,645 | 0 | |
Loss on valuation of financial assets | 125,714 | 64,749 | |
Loss on disposal of fixed assets | 36,279 | 110,964 | |
Deferred income tax | (163,631) | 87,391 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (2,421,663) | 3,657,114 | |
Other current assets | (486,314) | (335,939) | |
Other assets | 106,662 | (1,277,215) | |
Income tax payable | (726,379) | 1,036,997 | |
Commissions payable to sales professionals | 1,826,478 | (5,557,039) | |
Other current liabilities | 2,672,584 | (1,592,557) | |
Other liabilities | (3,129,118) | (1,028,760) | |
Net cash provided by operating activities | 3,907,452 | 5,906,923 | |
Cash flows from investing activities: | |||
Purchases of structured deposits | (13,696,531) | (1,285,882) | |
Proceeds from maturities of structured deposits | 14,993,795 | 0 | |
Purchases of time deposits | (49,535,273) | (32,699,028) | |
Proceeds from maturities of time deposits | 44,555,966 | 17,437,704 | |
Proceeds from repayment of loan made to RFL | 1,486,485 | 0 | |
Loan made to RFL | 0 | 105,586 | |
Proceeds from sale of marketable securities | 0 | 7,515,680 | |
Purchase of marketable securities | 0 | (4,967,359) | |
Purchase of long-term investments - REITs | (1,327,505) | 0 | |
Purchase of property, plant and equipment | (696,028) | (382,473) | |
Purchase of intangible assets | (82,136) | (159,955) | |
Net cash used in investing activities | (4,301,227) | (14,435,727) | [1] |
Cash flows from financing activities: | |||
Repayment of convertible bonds | (200,000) | 0 | |
Proceeds from short-term loans | 34,300,000 | 2,350,000 | |
Repayment of short-term loans | (28,450,000) | (22,199) | |
Proceeds from related party borrowings | 475,273 | 464,850 | |
Repayment to related party borrowing | (637,686) | (285,856) | |
Net cash provided by financing activities | 5,487,587 | 2,506,795 | [1] |
Foreign currency translation | (397,605) | 1,577,935 | [1] |
Net increase (decrease) in cash, cash equivalents and restricted cash and equivalents | 4,696,207 | (4,444,074) | |
Cash, cash equivalents and restricted cash and equivalents, beginning balance | 15,943,564 | 20,387,638 | |
Cash, cash equivalents and restricted cash and equivalents, ending balance | 20,639,771 | 15,943,564 | |
SUPPLEMENTARY DISCLOSURE: | |||
Interest paid | 264,845 | 33,844 | |
Income tax paid | 3,561,329 | 2,307,768 | |
SUPPLEMENTARY DISCLOSURE of CASH FLOW FOR NON-CASH TRANSACTION: | |||
Debt forgiveness - related parties | $ 0 | $ 32,937 | |
[1] | The reported amounts have been revised to incorporate the effect of reclassification made to prior year consolidated financial statements. Refer to Note 27 of 2017 Form 10-K. |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE 1 – ORGANIZATION AND PRINCIPAL ACTIVITIES Overview 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). In January of 2011, through Zhengzhou Zhonglian Hengfu Business Consulting Co., Limited (“WFOE”), a wholly owned Hong Kong based subsidiary of CU Hong Kong, the Company entered a series of agreements (“VIE agreements”) with Law Anhou Insurance Agency Co., Limited (“Anhou”) that established, among other things, an exclusive business cooperation agreement. Prior to the VIE agreements with WFOE, Anhou owned 100% interest of Sichuan Kangzhuang Insurance Agency Co., Limited (“Sichuan Kangzhuang”) and 100% interest of Jiangsu Law Insurance Brokers Co., Limited. Both subsidiaries are also engaged in selling life and property casualty insurance products in the PRC. With the establishment of VIE in 2011, the Company expanded business operations into Peoples’ Republic of China (“PRC” or “China”). For the purpose of procuring certain economic benefits and establishing a more centralized control over the business operations in Sichuan province, the Company reorganized by dissolving Sichuan Kangzhuang, and set up a branch office of Anhou in Sichuan province instead. On October 8, 2018, Sichuan Kangzhuang was legally dissolved. The Company owns 65.95 100 The Company’s common stock currently trades over the counter under the ticker symbol “CUII” on the OTC Pink market. Acquisitions In July of 2018, the Company completed its acquisition of Kao Te Insurance Broker (“KT Broker”) for its existing brokerage licenses. Under Taiwanese law, the brokerage license is undetachable from the legal entity and the entity itself cannot be dissolved, so the Company renamed KT Broker to Joint Insurance Broker Co., Limited (“JIB”) to serve as a holding entity for the brokerage licenses. The Company has no intention of operating the existing business of KT Broker nor retain any of its sales personnel, therefore the Company accounted the acquisition as assets purchase in accordance with ASC 805. The corporate structure as of December 31, 2018 is as follows: |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The accompanying consolidated financial statements include the accounts of China United, its subsidiaries and variable interest entities as shown in the corporate structure in Note 1. All significant intercompany transactions and balances have been eliminated in the consolidation. The Company consolidates variable interest entities where it has been determined that the Company is the primary beneficiary of those entities' operations. 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. Use of Estimates The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”). The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and footnotes thereto. Actual results may differ from those estimates and assumptions. Noncontrolling Interest 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,” which governs the accounting for and reporting of noncontrolling interests (“NCI”) in partially owned consolidated subsidiaries and the loss of control of subsidiaries. Certain provisions of this standard indicate, among other things, that NCIs be treated as a separate component of equity, not as a liability, that increases and decreases in the parent’s ownership interest that leave control intact be treated as equity transactions rather than as step acquisitions or dilution gains or losses, and that losses of a partially owned consolidated subsidiary be allocated to the NCI even when such allocation might result in a deficit balance. This standard also required changes to certain presentation and disclosure requirements. The net income (loss) attributed to the NCI is separately designated in the accompanying statements of operations and other comprehensive income (loss). Losses attributable to the NCI in a subsidiary may exceed the NCI’s interests in the subsidiary’s equity. The excess attributable to the NCI is attributed to those interests. The NCI shall continue to be attributed its share of losses even if that attribution results in a deficit NCI balance. Comprehensive Income The Company follows FASB ASC Topic 220, “Reporting Comprehensive Income,” which establishes standards for the reporting and display of comprehensive income, its components and accumulated balances in a full set of general-purpose financial statements. ASC 220 defines comprehensive income as net income and all changes to stockholders’ equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders, including adjustments to minimum pension liabilities, accumulated foreign currency translation, and unrealized gains or losses on securities held as available-for-sale. Foreign Currency Transactions The Company’s financial statements are presented in U.S. dollars ($), which is the Company’s reporting and functional currency. The functional currencies of the Company’s subsidiaries are NTD, RMB and HKD. The resulting translation adjustments are reported under other comprehensive income in accordance with FASB ASC Topic 220, “Reporting Comprehensive Income”. Gains and losses resulting from the translation of foreign currency transactions are reflected in the consolidated statements of operations and other comprehensive income (loss). Monetary assets and liabilities denominated in foreign currency are translated at the functional currency using the rate of exchange prevailing at the balance sheet date. Any differences are taken to profit or loss as a gain or loss on foreign currency translation in the consolidated statements of operations and other comprehensive income (loss). The Company translates the assets and liabilities into U.S. dollars using the rate of exchange prevailing at the balance sheet date and the statements of operations and cash flows are translated at an average rate during the reporting period. Adjustments resulting from the translation from NTD, RMB and HKD into U.S. dollars are recorded in stockholders’ equity as part of accumulated other comprehensive income. The exchange rates used for financial statements are as follows: Average Rate for the years ended December 31, 2018 2017 Taiwan dollar (NTD) NTD 30.13172 NTD 30.39845 China yuan (RMB) RMB 6.61464 RMB 6.75701 Hong Kong dollar (HKD) HKD 7.83704 HKD 7.79223 United States dollar ($) $ 1.00000 $ 1.00000 Exchange Rate at December 31, 2018 December 31, 2017 Taiwan dollar (NTD) NTD 30.56492 NTD 29.65568 China yuan (RMB) RMB 6.87644 RMB 6.50638 Hong Kong dollar (HKD) HKD 7.83125 HKD 7.81493 United States dollar ($) $ 1.00000 $ 1.00000 Cash and Cash Equivalents Cash and cash equivalents include cash in banks, bank deposits, and highly liquid investments with maturities of three months or less at the date of origination. These investments are carried at cost, which approximates market value. Restricted Cash and Cash Equivalents Restricted cash and cash equivalents represent amounts held in banks by the Company in conformity with Provisions of the Supervision and Administration of Specialized Insurance Agencies by China Insurance Regulatory Commission and time deposits in financial institutions that are pledged to satisfy the requirements of certain debt agreements. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable includes commission receivables 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, 2018 and 2017. 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, transportation equipment and other equipment is computed using straight-line method based on estimated useful lives ranging from one to ten years with estimated salvage value. Leasehold improvements are depreciated or amortized over the shorter of the estimated useful life of the asset or the remaining expected lease term. Goodwill and Intangible Assets 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 evaluated 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, 2018, and 2017, 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 to 5 years. Impairment of Long-Lived Assets 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 was no impairment recognized for the years ended December 31, 2018 and 2017. Long-Term Investments Long-term investments include government bonds held as available-for-sale, investment in real estate investment trusts (“REITs”) measured at fair value through net income, 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 measures equity investments in companies that do not have a readily determinable fair value in which it holds an interest of less than 20% using cost method, and no changes in fair value is recognize in net income for those equity investments. Convertible Bonds Convertible debt is accounted for under the guidelines established by ASC Subtopic 470-20 “Debt with Conversion and Other Options.” ASC 470-20 governs the calculation of an embedded beneficial conversion. The amount of the value of beneficial conversion feature may reduce the carrying value of the instrument to zero, but no further. Many of the conversion features embedded in the Company’s notes are variable and are adjusted based on a discount to market prices which could cause an unlimited number of shares of common stock to be issued. In these cases, the Company records the embedded conversion feature as a derivative instrument, at fair value. The embedded conversion features are recorded as discounts when the notes become convertible. The excess of fair value of the embedded conversion feature over the carrying value of the debt is recorded as an immediate charge to operations. Each reporting period, the Company will compute the estimated fair value of derivatives and record changes to operations. The discounts relating to the initial recording of the derivatives or beneficial conversion features will be amortized over the terms of the convertible bonds. Advertising Costs The Company expenses all advertising costs, which include promotions and branding, as incurred. The Company incurred $749,563 and $386,858 in advertising and marketing costs during the years ended December 31, 2018 and 2017, respectively. Revenue Recognition The Company’s revenue is generated from providing 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 adopted the new revenue standard ASC Topic 606, Revenue from Contracts with Customers, at the beginning of 2018, which requires that recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company recognizes revenue when control over services provided by the Company is transferred to the respective insurance company; whereby the transfer of control is considered complete when the insurance policy becomes effective. The new guidance includes requirements to estimate variable or contingent consideration to be received and recognize variable consideration to the extent that a significant reversal of revenue will not probably occur in the subsequent periods. Applying the new revenue standard requires significant judgment and estimate to be made by the Company. The Company is obligated to pay commissions to its sales professionals when an insurance policy becomes effective. 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 Taxes 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% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits is classified as interest expense and penalties are classified in general and administrative expenses in the consolidated statements of operations and other comprehensive income (loss). Earnings Per Share Basic earnings per common share (“EPS”) is computed by dividing net income attributable to the common shareholders of the Company by the weighted-average number of common shares outstanding. Diluted EPS is computed in the same manner as basic EPS, except the number of shares includes additional common shares that would have been outstanding if potential common shares with a dilutive effect had been issued. As the holders of preferred stock of the Company 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 Company as may be declared by the board of directors, the preferred stock is a participating security. When calculating the basic earnings per common share, the two-class method is used to allocate earnings to common stock and participating security as required by ASC Topic 260, “Earnings Per Share.” Potential common shares consist primarily of convertible bonds calculated using the if-converted method. However, convertible bonds were excluded from the calculation due to the antidilutive effect. The antidilutive common share equivalents excluded from the computation 45,935 for the year ended December 31, 2018. The calculation for basic and diluted EPS is as follows: As of December 31, 2018 2018 2017 Net income attributable to common shareholders of the Company: $ 2,371,405 $ 7,154,638 Effect of dilution - 12,000 Net income attributable to common shareholders of the Company after dilution $ 2,371,405 $ 7,166,638 Basic weighted-average number of common shares outstanding 29,452,669 29,452,669 Effect of convertible bond - 1,056,883 Diluted weighted-average number of common shares outstanding 29,452,669 30,509,552 Earnings per share attributable to common shareholders of the Company: Basic $ 0.078 $ 0.243 Diluted $ 0.078 $ 0.235 Fair Value of Financial Instruments 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. This hierarchy requires the use of observable market data when available. 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 22 for additional information on the fair values related to other financial assets and liabilities. Concentration of Risk The Company maintains cash and cash equivalents with banks or high credit, quality financial institutions in the USA, PRC, Hong Kong, and Taiwan with balances in excess of the limits insured by various governments. In Taiwan, a depositor has up to NTD3,000,000 insured by Central Deposit Insurance Corporation (“CDIC”). In China, a depositor has up to RMB500,000 insured by the People’s Bank of China Financial Stability Bureau (“FSD”). In Hong Kong, a depositor has up to HKD500,000 insured by Hong Kong Deposit Protection Board (“DPB”). In the United States, the standard insurance amount is $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 and cash equivalents, time deposits, restricted cash, register capital deposits and accounts receivable. As of December 31, 2018, and 2017, approximately $1,751,000 and $1,512,000 of the Company’s cash and cash equivalents, time deposits, restricted cash and register capital deposits held by financial institutions, was insured, and the remaining balance of approximately $44,289,000 and $33,949,000, was not insured. With respect to accounts receivable, the Company generally does not require collateral and does not have an allowance for doubtful accounts. For the fiscal years ended December 31, 2018 and 2017, the Company realized revenues with the customers individually more than 10% of the total revenue of the Company were: Years ended December 31, 2018 2017 Amount % of Total Revenue Amount % of Total Revenue Farglory Life Insurance Co., Ltd. $ 18,432,050 23 % $ 18,617,293 26 % Taiwan Life Insurance Co., Ltd. (**) 11,024,333 14 % 9,309,759 13 % TransGlobe Life Insurance Inc. 10,280,105 13 % 8,168,837 11 % Fubon Life Insurance Co., Ltd. (* ) (* ) (* ) (* ) (*) 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. As of December 31, 2018 and 2017, the Company’s accounts receivable As of December 31, 2018 2017 Amount % of Total Accounts Receivable Amount % of Total Accounts Receivable Farglory Life Insurance Co., Ltd. $ 3,139,404 24 % $ 3,430,661 26 % Taiwan Life Insurance Co., Ltd. (**) 2,578,590 20 % 2,192,668 17 % TransGlobe Life Insurance Inc. 2,381,181 18 % 1,811,401 14 % Fubon Life Insurance Co., Ltd. (* ) (* ) (* ) (* ) (*) 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 operates their business 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. Operating Leases Leases, where substantially all the rewards and risks of ownership of assets remain with the leasing company, that do not meet the capitalization criteria of FASB ASC Topic 840 “Leases,” are accounted for as operating leases. Segment Reporting The Company managed and reviewed its business as three operating segments. The business of 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 23 for additional information on the segment reporting. Contingencies Certain conditions may exist as of the date the financial statements are issued, which could result in a loss to the Company which will be resolved when one or more future events occur or fail to occur. The Company’s management assesses such contingent liabilities, and such assessment inherently involves judgment. In assessing loss contingencies arising from legal proceedings pending against the Company or unasserted claims that may rise from such proceedings, the Company’s management evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought. If the assessment of a contingency indicates it is probable a material loss will be incurred and the amount of the loss can be reasonably estimated, then the estimated loss is accrued in the Company’s financial statements. If the assessment indicates a material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material would be disclosed. Variable Interest Entities The Company follows FASB ASC Subtopic 810-10-05-8, “Consolidation of VIEs,” states that a VIE is a legal entity in which equity investors do not have sufficient equity at risk for the legal entity to finance its activities without additional subordinated financial support or, as a group, the holders of the equity investment at risk lack any one of the following three characteristics: 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 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, 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) 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 WFOE. Anhou further agrees that unless with 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 WFOE fees equal to 90% of the net income of Anhou, and the payment is quarterly, and (4) 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 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 WFOE prior to the expiration thereof. The extended term shall be determined by WFOE, and Anhou shall accept such extended term unconditionally. During the term of this Agreement, unless WFOE commits gross negligence, or a fraudulent act, against Anhou, Anhou may not terminate this Agreement. Nevertheless, 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 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 WFOE or its designated person an exclusive and irrevocable right to acquire, at any time, the entire portion of Anhou’s equity interest held by each shareholder of Anhou, or any portion thereof, to the extent permitted by PRC law. The purchase price for the shareholders’ equity interests in Anhou shall be the lower of (i) RMB1 ($0.16) and (ii) the lowest price allowed by relevant laws and regulations. If appraisal is required by the laws of PRC when WFOE exercises the Equity Interest Purchase Option (as defined in the Option Agreement), the Parties shall negotiate in good faith and based on the appraisal result make necessary adjustment to the Equity Interest Purchase Price (as defined in the Option Agreement) so that it complies with any and all then applicable laws of the PRC. The term of this Agreement is 10 years, and may be renewed at WFOE’s election. Share Pledge Agreement under which the owners of Anhou pledged their equity interests in Anhou to 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, 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, 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 WFOE, Anhou and Anhou Original Shareholders on the same date. The EBCA executed by and between WFOE and Anhou on January 17, 2011 remains in full effect. As a result of the agreements among WFOE, the shareholders of Anhou and Anhou, WFOE is considered the primary beneficiary of Anhou, WFOE has effective control over Anhou; therefore, 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, 2018 and 2017, no event including a)-d) above took place that would change the Company’s primary beneficiary status. New Accounting Pronouncements and Other Guidance New Accounting Pronouncements Effective January 1, 2018: Revenue from Contracts with Customers In May 2014, the FASB issued new accounting guidance – ASU No. 2014-09, (Topic 606), Revenue from Contracts with Customers related to revenue from contracts with customers. The core principle of the Standard is that recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new guidance requires that companies disclose the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted the new guidance effective January 1, 2018, using the modified retrospective method, which applies the new guidance beginning in the year of adoption, with the cumulative effect of initially applying the guidance recognized as an adjustment to retained earnings at January 1, 2018. The Company’s revenue is derived from insurance agency and brokerage services. The Company, through its subsidiaries, sells insurance products provided by insurance companies to individuals, and is compensated in the form of commissions from the respective insurance companies, according to the terms of each service agreement made by and between the Company and the insurance companies. The sale of an insurance product by the Company is considered complete when initial insurance premium is paid by an individual and the insurance policy becomes effective. When a policy is effective, the insurance company is obligated to pay the agreed-upon commission to the Company under the terms of its service agreement with the Company and such commission is recognized as revenue. Upon adoption of the new revenue guidance, the timing of revenue recognition remains unchanged. However, the new guidance includes requirements to estimate variable or contingent consideration to be received and recognize variable consideration to the extent that a significant reversal of revenue will not probably occur in the subsequent periods. Under the legacy GAAP, the Company recognized |
CASH, CASH EQUIVALENTS AND REST
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2018 | |
Restricted Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents Disclosure [Text Block] | NOTE 3 – CASH, CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS Cash, cash equivalents and restricted cash and cash equivalents consisted of the following as of December 31, 2018 and 2017: December 31, 2018 December 31, 2017 Cash and cash equivalents: Cash in banks and on hand $ 7,439,057 $ 11,774,489 Cash equivalents - re-purchase bonds - 2,697,628 Cash equivalents - commercial paper 654,006 - Time deposits - with original maturities less than three months 8,570,879 1,001,832 16,663,942 15,473,949 Restricted cash equivalents 3,320,802 - Restricted cash – long-term 655,027 469,615 Total cash, cash equivalents and restricted cash shown in the statements of cash flows $ 20,639,771 $ 15,943,564 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 (NTD 80,000,000 160,000,000 On December 14, 2018, the Company purchased a commercial paper of $654,006 (NTD 19,989,649) with a maturity of 25 days and 0.70% interest rate annum. Restricted cash equivalents include time deposits of $3,302,802 (NTD101,500,000), which were with original maturities less than three months and pledged to satisfy the requirements of certain debt agreements. Long-term restricted cash includes a mandatory deposit in the bank in conformity with Provisions of the Supervision and Administration of Specialized Insurance Agencies in PRC, which is not allowed to be withdrawn without the permission of the regulatory commission, and a trust account held for the bonus accrued for Law Broker’s general manager. |
TIME DEPOSITS AND STRUCTURED DE
TIME DEPOSITS AND STRUCTURED DEPOSITS | 12 Months Ended |
Dec. 31, 2018 | |
Short-term Investments [Abstract] | |
Cash, Cash Equivalents, and Short-term Investments [Text Block] | NOTE 4 – TIME DEPOSITS AND STRUCTURED DEPOSITS December 31, 2018 December 31, 2017 Total time deposits $ 34,311,043 $ 22,471,945 Less: time deposits - original maturities less than three months (see Note 3) (8,570,879 ) (1,001,832 ) Time deposits - original maturities over three months but less than one year $ 25,740,164 $ 21,470,113 Structured deposits $ - $ 1,248,340 Time Deposits Pledged as Collateral As of December 31, 2018 and 2017, the Company had time deposits of approximately $5,404,889 (NTD 165,200,000 50,000,000 34,311,043 22,471,945 respectively, pledged as collateral for short-term loans. See Note 10. Structured Deposits 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 on January 8, 2018, with principal approximately $1,229,563 (RMB 8 million 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 below. On February 9, 2018, the Company entered into an agreement with CTBC Bank Co., Ltd. (CTBC) to purchase a one-month FX Swap and Forward Linked structured product in effective on February 13, 2018 and mature on March 29, 2018, with principal approximately $1,273,855 (RMB 8 million From May to December of 2018, the Company entered into agreements with CTBC to purchase dual currency investment structured products which are embedded a foreign exchange option linked to USDCNH. The settlement amount on the maturity date is referring to the USDCNH on a valuation date which is compared with a pre-determined USDCNH 3.50% to 5.10% per annum. As of December 31, 2018 and 2017, the Company had structured deposits of nil and $1,248,340, respectively. Gross unrealized losses on valuation of structured deposits as of December 31, 2018 and 2017 were nil and $30,211 respectively. |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets [Text Block] | NOTE 5 – OTHER CURRENT ASSETS The Company’s other current assets consisted of the following as of December 31, 2018 and 2017: December 31, 2018 December 31, 2017 Loan receivable $ - $ 1,510,347 Prepaid rent and rent deposits 322,130 213,688 Prepaid expenses 327,083 87,947 Other receivables 325,946 135,996 Refundable business tax 149,028 150,221 Marketable securities 30,800 33,381 Interest receivable 691 94,887 Total other current assets $ 1,155,678 $ 2,226,467 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 (NTD 48,000,000 2,134,440 1,075,200 44,790,360 |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 6 – PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment consisted of the following, as of December 31, 2018 and 2017: December 31, 2018 December 31, 2017 Office equipment $ 1,293,549 $ 1,198,456 Office furniture 112,366 103,025 Leasehold improvements 910,168 761,522 Transportation equipment 223,115 221,477 Other equipment 375,496 90,990 Total 2,914,694 2,375,470 Less: accumulated depreciation (1,718,999 ) (1,429,168 ) Total property, plant and equipment, net $ 1,195,695 $ 946,302 Depreciation expense was $375,588 $325,212 |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 7 – INTANGIBLE ASSETS , NET As of December 31, 2018 and 2017, the Company’s intangible assets consisted the following: December 31, 2018 December 31, 2017 Software $ 1,816,449 $ 1,797,227 Less: accumulated amortization (1,240,464 ) (1,021,449 ) Total intangible assets net $ 575,985 $ 775,778 Estimated future assets amortization as of December 31, 2018 is as follows: Years ending December 31, Amount 2019 $ 233,520 2020 203,127 2021 93,872 2022 35,791 2023 9,675 Thereafter - Total $ 575,985 Amortization expense was $261,392 and $235,972 for the years ended December 31, 2018 and 2017, respectively. |
LONG-TERM INVESTMENTS
LONG-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Long Term Investment [Abstract] | |
Long Term Investment [Text Block] | NOTE 8 – LONG-TERM INVESTMENTS As of December 31, 2018 and 2017, the Company’s long-term investments consisted the following: December 31, 2018 December 31, 2017 Equity investments accounted for the cost method $ 1,257,485 $ 1,296,039 Government bonds held for available-for-sale 99,834 103,723 REITs 1,120,239 - Total long-term investments $ 2,477,558 $ 1,399,762 Equity investments accounted for the cost method The change in carrying value of equity investment from December 31, 2017 to December 31, 2018 was entirely due to foreign currency translation. Type Investee Investment Ownership December 31, 2018 Amount December 31, 2017 Amount Equity investments Genius Insurance Broker Co., Ltd 15.64 % $ 1,257,485 $ 1,296,039 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 Law Broker is required to maintain a minimum of NTD 3,000,000 ($98,152 and $101,161 as of December 31, 2018 and 2017, respectively) restricted balance in a separate account December 31, 2018 Fair value at December 31, 2017 Gross unrealized losses Fair value at December 31, 2018 Government bonds 103,723 (3,889 ) 99,834 $ 103,723 $ (3,889 ) $ 99,834 December 31, 2017 Fair value at December 31, 2016 Gross unrealized gains Fair value at December 31, 2017 Government bonds 94,506 9,217 103,723 $ 94,506 $ 9,217 $ 103,723 REITs REITs are valued based on quoted market prices in the active market of Taiwan. The fair value of REITs as of December 31, 2018 was $ 1,120,239 220,596 |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets Disclosure [Text Block] | NOTE 9 – OTHER ASSETS The Company’s other assets consisted of the following as of December 31, 2018 and 2017: December 31, 2018 December 31, 2017 Rental deposits $ 465,423 $ 508,352 Register capital deposit 872,544 1,075,867 Prepayments 112,055 140,404 Deferred tax assets 268,237 123,406 Goodwill 31,651 31,651 Other 14,728 82,231 Total other assets $ 1,764,638 $ 1,961,911 According to China Insurance Regulatory Commission No. 82, promulgated on September 29, 2016, the Company should deposit all of its registered capital in a custody fund account and subject to limited usage, among which, no less than 10 872,544 1,075,867 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 |
SHORT-TERM LOANS
SHORT-TERM LOANS | 12 Months Ended |
Dec. 31, 2018 | |
Short-term Debt [Abstract] | |
Short-term Debt [Text Block] | NOTE 10 – SHORT-TERM LOANS The Company’s short-term loans consisted of the following as of December 31, 2018 and 2017: December 31, 2018 December 31, 2017 Credit facility, O-Bank $ 3,600,000 $ 1,400,000 Credit facility, FEIB 2,000,000 - Credit facility, CTBC 1,000,000 950,000 Credit facility, KGI 1,600,000 - Subtotal 8,200,000 2,350,000 Current portion of long-term loans (Note 14) 235,587 - Total short-term loans $ 8,435,587 $ 2,350,000 The Company entered into three credit agreements with several commercial banks 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 revolving credit facility from June 22, 2017 to June 21, 2018. The line of credit was renewed on September 4, 2018 and matures on September 3, 2019, with a revolving credit limit raised to $4,000,000. Borrowings under the agreement bear interest at the TAIFX3 rate plus a margin of 0.5% The credit facility is secured by a total amount of approximately $4,492,078 (NTD 137,300,000) of time deposits. Far Eastern International Bank (“FEIB”): On September 21, 2017, the Company entered into a line of credit agreement with FEIB for a revolving credit facility of $2,000,000 from September 21, 2017 to September 21, 2018. The line of credit was renewed on October 26, 2018 and matures on September 21, 2019. Borrowings under the agreement bear interest at the higher of LIBOR or TAIFX3 rate plus a margin of 0.85%. On June 15 and June 22, 2018, the Company draw down borrowings of $1,000,000 and $500,000, respectively, with interest at a rate of 3.45% per annum. These amounts were paid off in July of 2018. On July 13 and July 20, 2018, the Company draw down $1,000,000 and $500,000 with interest at a rate of 3.38% and 3.39% per annum, respectfully. These amounts were paid off in August of 2018. On August 10 and August 17, 2018, the Company draw down $1,000,000 and $500,000 with interest at a rate of 3.37% and 3.38% per annum, respectfully. These amounts were paid off in September of 2018. On September 07, September 14 and September 21, 2018, the Company draw down $1,000,000, $500,000 and $500,000 with interest at a rate of 3.60%, 3.65% and 3.68% per annum, respectfully. These amounts were paid off in November of 2018. On November 13, 2018 the Company draw down a borrowing of $2,000,000 with interest at a rate of 3.40% per annum. The Company paid off the borrowing in December of 2018. On December 7, 2018, the Company draw down a borrowing of $2,000,000 with interest at a rate of 3.95% per annum. The Company paid off the borrowing in January of 2019. The credit facility is secured by a total amount of approximately $2,434,163 (NTD 74,400,000) of time deposits. 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 revolving credit facility of $1,000,000 from November 17, 2017 to July 31, 2018. This line of credit was renewed on September 12, 2018 and matures on August 31, 2019, with a revolving credit limit raised to $1,500,000. Borrowings under the agreement bear interest at the CTBC’s cost of fund plus a margin of 1 KGI Commercial Bank Co., Ltd. (“KGI”): On September 19, 2018 , the Company was approved of entering into a line of credit agreement with KGI, pursuant to which the Company has a revolving credit facility of $ 1,600,000 from October 26, 2018 to October 26, 2019 . Borrowings under the agreement bear interest at the LIBOR rate plus a margin of 0.9 %. On December 27, 2018 , the Company draw down a borrowing of $ 1,600,000 with interest at a rate of 3.41 % per annum. 2019 . The credit facility is secured by a total amount of approximately $ 1,799,450 (NTD 55,000,000) of time deposits. Total interest expenses of short-term loans incurred were $105,536 and $1,531 for the years ended December 31, 2018 and December 31, 2017, respectively. |
INCOME TAX PAYABLE
INCOME TAX PAYABLE | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Taxes Payable Disclosure [Text Block] | NOTE 11 – INCOME TAX PAYABLE The Company’s income tax payable consisted of the following as of December 31, 2018 and 2017: December 31, 2018 December 31, 2017 Taiwan Tax $ 1,416,540 $ 3,232,996 USA Tax (Note 19) 1,131,307 - PRC Tax 7,590 270,267 Hong Kong Tax 51,032 5,527 Total income tax payable $ 2,606,469 $ 3,508,790 Less: short-term (1,599,146 ) (3,508,790 ) Income tax payable – long-term (Note 19) $ 1,007,323 $ - |
COMMISSIONS PAYABLE TO SALES PR
COMMISSIONS PAYABLE TO SALES PROFESSIONALS | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Disclosure Of Commissions Payable [Text Block] | NOTE 12 – COMMISSIONS PAYABLE TO SALES PROFESSIONALS Commissions payable to professionals consisted of the following as of December 31, 2018 and 2017: December 31, 2018 December 31, 2017 Taiwan $ 7,602,595 $ 6,206,269 PRC 411,885 208,802 Hong Kong - - Total commissions payable to sales professionals $ 8,014,480 $ 6,415,071 Commissions payable to sales professionals are usually settled within twelve months. As of December 31, 2018 and 2017, the Company had the commissions payable obligation to sale professionals amounted $8,014,480 and $6,415,071, respectively. |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities Disclosure [Text Block] | NOTE 13 – OTHER CURRENT LIABILITIES Other current liabilities consisted of the following as of December 31, 2018 and 2017: December 31, 2018 December 31, 2017 Unearned revenue - current (Note 15) $ 1,028,256 $ 1,237,684 Payroll payable and other benefits 1,360,790 1,309,281 Accrued bonus 2,320,445 1,730,278 Accrued business tax and tax withholdings 893,391 835,410 Other accrued liabilities 1,745,959 1,051,112 Total other current liabilities $ 7,348,841 $ 6,163,765 See Note 15 for additional information on current liabilities related to AIA International Limited Taiwan Branch (“AIATW”). |
LONG-TERM LOANS
LONG-TERM LOANS | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt [Text Block] | NOTE 14 – LONG-TERM LOANS The Company’s long-term loans consisted of the following as of December 31, 2018 and 2017: December 31, 2018 December 31, 2017 Loan A, interest at 8% per annum, maturity date May 15, 2019 $ 123,611 $ 130,641 Loan B, interest at 8% per annum, maturity date July 20, 2019 111,976 118,345 Total loans 235,587 248,986 Less: current portion (Note 10) (235,587 ) - Total long-term loans $ - $ 248,986 Law Anhou Insurance Agency Co., Limited (“Anhou”) in Nanjing City, PRC is a variable interest entity (VIE) of which the Company is the primary beneficiary. The Company contractually control Anhou through CU Hong Kong. On May 15, 2016, Anhou entered into a loan agreement (“Loan A”) with an individual third party. The loan agreement provided for approximately $123,611 (RMB 850,000) and $130,641 (RMB 850,000) as of December 31, 2018 and 2017, respectively, loan to the Company. The Loan A bears an interest rate of 8% per annum and interest is payable annually. The principal and the accrued interest will be due on May 15, 2019. As of December 31, 2018, the principal amount was reclassified to current liabilities. On July 20, 2016, Anhou entered into a loan agreement (“Loan B”) with an individual third party. The loan agreement provided for approximately $111,976 (RMB 770,000) and $118,345 (RMB 770,000) as of December 31, 2018 and 2017, respectively, loan to the Company. The Loan B bears an interest rate of 8% per annum and interest is payable annually. The principal and the accrued interest will be due on July 20, 2019. As of December 31, 2018, the principal amount was reclassified to current liabilities. Total interest expenses for the long-term loans were $18,450 and $20,737, respectively, for the years ended December 31, 2018 and 2017. |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Liabilities Disclosure [Text Block] | NOTE 15 – OTHER LIABILITIES The Company’s other liabilities consisted of the following as of December 31, 2018 and 2017: December 31, 2018 December 31, 2017 Unearned revenue - AIATW $ 2,056,513 $ 4,239,130 Due to previous shareholders of AHFL 480,559 480,559 Deferred tax liabilities - 122,551 Total other liabilities $ 2,537,072 $ 4,842,240 Unearned revenue – AIATW On June 10, 2013, AHFL entered into a Strategic Alliance Agreement (the “Alliance Agreement”) with AIA International Limited Taiwan Branch (“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 (NTD250,000,000, including the tax of NTD11,904,762, the “Execution Fee”), which is to be recorded as revenue upon fulfilling sales targets and the 13-month persistency ratio, as defined, over the next five years. The Execution Fee may be required to be recalculated if certain performance targets are not met by AHFL. On September 30, 2014, AHFL entered into a Strategic Alliance Supplemental Agreement (the “First Amendment to the Alliance Agreement”) with AIATW. In the First Amendment to the Alliance 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 No. 2 to the Alliance Agreement (the “Second Amendment to the Alliance Agreement”) 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 Second Amendment to the Alliance Agreement, the expiration date of the Strategic Alliance Agreement was extended from May 31, 2018 to December 31, 2021, and the effect of the 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 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 an Amendment No. 3 to the Alliance Agreement (the “Third Amendment to the Alliance Agreement”). Pursuant to the Third Amendment to the Alliance Agreement, 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 the Third Amendment to the Alliance Agreement, 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 execution fees at for the first contract year, for the second contract year, and NTD33 million for each contract year thereafter within one month after the termination. The following table presents the amounts recognized as revenue and refund for each contract year: Contract Year Period Execution Fees Revenue Amount Revenue VAT Amount Refund Amount Refund VAT Amount First 04/15/2013 09/30/2014 NTD 50,000,000 NTD 27,137,958 (1) NTD 1,356,898 NTD 20,481,090 (1) NTD 1,024,054 Second 01/01/2016 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 01/01/2017 12/31/2017 NTD 33,000,000 NTD 12,628,201 (3) NTD 631,410 NTD 18,800,370 (3) NTD 940,019 Fourth 01/01/2018 12/31/2018 NTD 33,000,000 NTD 11,228,600 (4) NTD 561,429 NTD 20,199,971 (4) NTD 1,010,000 Fifth 01/01/2019 12/31/2019 NTD 33,000,000 NTD - NTD - NTD - NTD - Sixth 01/01/2020 12/31/2020 NTD 33,000,000 NTD - NTD - NTD - NTD - Seventh 01/01/2021 12/31/2021 NTD 33,000,000 NTD - NTD - NTD - NTD - TOTAL NTD 250,000,000 NTD 63,849,759 NTD 3,192,487 NTD 79,959,764 NTD 3,997,990 1) The revenue recognition for the first contract year is based on the annual first year premium (“AFYP”) set in Alliance Agreement, which is different 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 $892,742 (NTD 27,137,958), net of Value-Added Tax (“VAT”) in 2017 due to uncertainty resolved after Amendment 3 went effective. Besides, on December 3, 2015 and February 23, 2016, the Company refunded the amounts of $160,573 (NTD4,761,905), net of VAT, and $530,056 (NTD15,719,185), net of VAT, to AIATW, respectively, due to the portion of performance sales targets not met during the first contract year based on original agreement and earlier amendments. 2) For the year ended December 31, 2016, the Company recognized the second contract year’s revenue amount of $422,883 (NTD 12,855,000), net of VAT, and refunded the amount of $690,537 (NTD 20,478,333), net of VAT, due to uncertainty resolved after Amendment 3 went effective. 3) For the year ended December 31, 2017, the Company recognized the third contract year’s revenue amount of $415,423 (NTD12,628,201), net of VAT, and refund amount of $633,955 (NTD18,800,370), net of VAT, for the same contract period based on the calculation of VONB and 13-month persistency. 4) For the year ended December 31, 2018, the Company estimated to recognize the fourth contract year’s revenue amount of $391,223 (NTD11,788,229), net of VAT, and refund the amount of $651,816 (NTD19,640,341), net of VAT, for the same contract period based on the calculation of VONB and 13-month persistency. The revenue recorded and refund amounts were trued up to $412,230 (NTD 12,068,571) and $661,286 (NTD 19,360,000), respectively, for the year ended December 31, 2018 based on notice received from AIATW. The Company recognized revenue of $372,650 (NTD 11,228,600) and $1,731,048 (NTD 52,621,159), net of VAT, for the years ended December 31, 2018 and 2017 related to this agreement. As of December 31, 2018 and 2017, the Company had non-current portion of unearned revenue of $2,056,513 and $4,239,130, respectively, and amounts in current liabilities of $1,028,256 and $1,237,684, respectively, related to the Alliance Agreement. Unearned revenue – Farglory On April 20, 2016, the Company entered into a service agreement (“Service Agreement”) with Farglory. The Company was to provide consulting services to Farglory for NTD 4,000,000 per year and the aggregate consulting services fee was NTD 20,000,000 from May 1, 2016 to April 30, 2021. On January 2, 2018, the Company received termination notice from Farglory. Pursuant to the termination notice, the Company refunded approximately $603,729 (NTD 17,904,000) to Farglory in January 2018. Due to previous shareholders of AHFL Due to previous shareholders of AHFL is the entire remaining balance payable of the acquisition cost. On March 12, 2017, the Company and the selling shareholders of AHFL entered into a fifth amendment to the acquisition agreement, pursuant to which, the Company agreed to make the cash payment in the amount of $480,559 (NTD15 million) on or prior to March 31, 2019. On March 27, 2019, the Company and the selling shareholders of AHFL entered into a sixth amendment to the acquisition agreement, pursuant to which, the Company agreed to make the cash payment in the amount of $480,559 (NTD15 million) on or prior to March 31, 2021. |
PREFERRED STOCK
PREFERRED STOCK | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders Equity Note [Abstract] | |
Preferred Stock [Text Block] | NOTE 16 – 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, 2018 and 2017. 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: Does not violate any debt or other contract covenants; Does not change any earnings or EPS trends; Does not affect any previous earnings or EPS guidance; Does not affect any segment or class of revenue; Does not affect any regulatory compliance matters; Does not affect cash compensation of management; Does not involve concealment of an unlawful act Additional preferred stock may be authorized and issued in the future in connection with acquisitions, financings, or other matters, as the Board of Directors deems appropriate. In the event that the Registrant issues any shares of preferred stock, a certificate of designation containing the rights, privileges and limitations of this series of preferred stock will be filed with the Secretary of State of the State of Delaware. The effect of this preferred stock designation power is that 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, 2018 | |
Statutory Reserves [Abstract] | |
Statutory Reserves Disclosure [Text Block] | NOTE 17 – STATUTORY RESERVES According to Taiwan accounting rules and corporation regulations, the Company’s subsidiaries in Taiwan must appropriate 10% of net income to statutory reserves until the accumulated reserve reaches registered capital. The reserve can be converted into share capital by issuing new shares to existing shareholders in proportion to their shareholding or by increasing the par value of the shares currently held by them, with a limitation that the reserve left is not less than 25% of the registered capital after converting to share capital. Pursuant to the PRC regulations, the Company’s CAE are required to transfer 10% of net profits, as determined under the PRC accounting regulations, to a Statutory Common Reserve Fund (“Reserve Fund”). Appropriation to the Reserve Fund may cease when the fund equals 50% |
NONCONTROLLING INTERESTS
NONCONTROLLING INTERESTS | 12 Months Ended |
Dec. 31, 2018 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest Disclosure [Text Block] | NOTE 18 – NONCONTROLLING INTERESTS Noncontrolling interests consisted of the following as of December 31, 2018 and 2017: Name of Entity % of Non- Controlling Interests December 31, 2017 Net Income (Loss) Other Comprehensive Income (Loss) December 31, 2018 Law Enterprise 34.05 % $ (243,240 ) $ 193,308 $ (22,625 ) $ (72,557 ) Law Broker 34.05 % 13,900,341 2,655,344 (406,023 ) 16,149,662 PFAL 49.00 % 228,079 208,918 (255 ) 436,742 MKI 49.00 % (2,117 ) (513 ) - (2,630 ) PA Taiwan 49.00 % (145,442 ) (11,789 ) (531 ) (157,762 ) PTC Nanjing 49.00 % (1,965 ) (26 ) (420 ) (2,411 ) Total $ 13,735,656 $ 3,045,242 $ (429,854 ) $ 16,351,044 Name of Entity % of Non- Controlling Interests December 31, 2016 Net Income (Loss) Other Comprehensive Income (Loss) December 31, 2017 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 |
INCOME TAX
INCOME TAX | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes Excluding Taxes Payable Disclosure [Text Block] | NOTE 19 – INCOME TAX Provision (benefit) for income taxes for the year ended December 31, 2018 consisted of: Year ended December 31, 2018 Federal State Foreign Total Current $ 1,227,243 $ - $ 2,546,560 $ 3,773,803 Deferred - - (163,631 ) (163,631 ) Total $ 1,227,243 $ - $ 2,382,929 $ 3,610,172 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 Significant components of the deferred tax assets and liabilities for income taxes as of December 31, 2018 and 2017 consisted of the following: 2018 2017 Deferred tax assets Net operating loss carry-forward $ 847,023 $ 874,934 Others 268,237 123,406 Total $ 1,115,260 $ 998,340 Valuation allowance (847,023 ) (874,934 ) Net deferred tax assets - noncurrent $ 268,237 $ 123,406 Deferred tax liabilities - noncurrent $ - $ 122,551 A 100 % valuation allowance was provided for the deferred tax assets related to the PRC segment as of December 31, 2018 and 2017 . The deferred tax assets of $ 268,237 and $ 123,406 related to the Taiwan segment were included in other assets, respectively, on the consolidated balance sheets as of December 31, 2018 and 2017 . Deferred tax liabilities were the timing differences of revenue and cost of sales recognized in the year ended December 31, 2018 . Deferred tax liabilities of nil and $ 122,551 , respectively, related to the PRC segment were included in other long-term liabilities on the consolidated balance sheets as of December 31, 2018 and 2017 . The following table reconciles the Company’s statutory tax rates to effective tax rates for the years ended December 31, 2018 and 2017: Years Ended December 31, 2018 2017 US statutory rate 21 % 34 % Tax rate difference (1 )% (18 )% Tax base difference - % - % Income tax on undistributed earnings 4 % - % Loss in subsidiaries 3 % 3 % Un-deductible and non-taxable items - % 7 % True up of prior year income tax 3 % - % Withholding tax 10 % - % Effective tax rate 40 % 26 % Un-deductible and non-taxable items mainly represent un-deductible expenses according to PRC tax laws and the non-taxable tax income or loss. The Company’s income tax expense is mainly generated by its subsidiaries in Taiwan and PRC. The Company’s subsidiaries in Taiwan are governed by the Income Tax Law of Taiwan which was amended in February 2018. The major change was to increase the statutory tax rate on income reported in the statutory financial statements after appropriate adjustments from 17% to 20% starting from the beginning of 2018. In addition, the Income Tax Law of Taiwan provided that a company is taxed at an additional 10% on any undistributed earnings. This was reduced to 5% by the amended Income Tax Law of Taiwan. The Company has recorded an income tax expense of $21,434 for remeasuring the Company’s deferred tax as a result of increase in tax rate in the year ended December 31, 2018. In June 2018, the shareholders of Law Enterprise approved the distribution of accumulated earnings to shareholders including AHFL. Under the Income Tax Law of Taiwan, the distributed earnings are not subject to the undistributed earning tax and the foreign shareholders of a Taiwan company will bear 21% of withholding tax after deducting certain tax credits allowed by the Income Tax Law of Taiwan for the dividend received. As a result of the earning distribution, Law Enterprise reversed $902,479 of the undistributed earning tax liability accrued in prior years and AHFL accrued $877,746 of withholding tax liability that cannot be deducted in its tax jurisdiction. WFOE and the VIE in PRC are governed by the Income Tax Law of PRC concerning private-run enterprises, which are generally subject to tax at 25% on income reported in the statutory financial statements after appropriate adjustments, except for Jiangsu. For Jiangsu , according to the requirement of local tax authorities, the tax basis is at 10% of total revenue, instead of net income. As of 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 can no longer be deducted from earnings beginning in the year 2017. However, any losses incurred in any of the branches in the joint tax return will be consolidated and any further losses in the joint tax return can be carried over five years from the year 2017. 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% on the estimated assessable profits. The 2017 Tax Cuts and Jobs Act (the “2017 Tax Act”) was enacted into law on December 22, 2017. The 2017 Tax Act significantly revised the U.S. corporate income tax by, among other things, lowering the statutory corporate tax rate from 35% to 21%, eliminating certain deductions, imposing a mandatory one-time tax on accumulated earnings of foreign subsidiaries, introducing new tax regimes, and changing how foreign earnings are subject to U.S. tax. The Company has determined the implication of the tax rate reduction does not have any impact on its consolidated financial statements. A one-time transition tax, based on the Company’s total post-1986 earnings and profits (“E&P”) that it previously deferred from U.S. income taxes, was recorded at $1,199,195 for the transition tax on undistributed earnings of non-U.S. subsidiaries during the year ended December 31, 2018. The Company recorded $95,936 and $1,007,323 of income tax payable as current liabilities and long-term liabilities respectively based on the statutory due date as of December 31, 2018. In addition, the 2017 Tax 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 FASB Staff Q&A, Topic 740 No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year that tax is incurred. The Company has elected to recognize the tax on GILTI as period the tax is incurred. For the year ended December 31, 2018, no GILTI tax obligation existed and no GILTI tax expense was recorded. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE 20 – RELATED PARTY TRANSACTIONS Due to related parties Due to related parties consisted of the following as of December 31, 2018 and 2017: December 31, 2018 December 31, 2017 Due to Mr. Mao (Principal shareholder of the Company)* $ 391,311 $ 409,054 Due to Ms. Lu (Shareholder of Anhou)* - 161,380 Due to I Health Management Corp** - 17,703 Accrued bonus for Ms. Chao*** 597,631 210,752 Others 7,623 2,128 Total $ 996,565 $ 801,017 *Amounts due to Mr. Mao and Ms. Lu bear no interest and are payable on demand. **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 the Company’s management level. ***On May 10, 2016, Law Broker entered into an engagement agreement (“Engagement Agreement”) with Hui-Hsien Chao (“Ms. Chao”), pursuant to which, she serves as the general manager of Law Broker 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 March 13, 2017, Law Broker and Ms. Chao entered into an amendment to the Engagement above-mentioned to specify 1) Ms. Chao’s pension calculation assumptions and start date, and 2) the non-competition provision start date. As of December 31, 2018 and 2017, the Company had current liabilities amounted $597,631 and $210,752, respectively, related to accrued bonus for Ms. Chao. 398,801 123,362 Lease Agreements On February 1, 2018, Prime Asia Corporation, Limited, the Company’s majority owned subsidiary entered into a lease agreement with Apex Biz Solution Limited (“Apex,” was formerly known as Prime Technology Corp.) Apex is a related party of the Company because it is affiliated to the Company’s management. The lease is to lease the office space in Taipei City to Apex. The lease term is for 10 months commencing on February 1, 2018, with a monthly base rent of approximately $660 (NTD 20,000). 680 20,476 7,317 On July 1, 2016, the Company entered into lease agreements with Yuli Broker and Yuli Investment separately, to lease their Nan-King East Road office space in Taipei City. The lease terms were both for one year commencing on July 1, 2016 and ending on June 30, 2017, with an annual base rent approximately of $610 (NTD18,000). On June 30, 2018, these lease agreements were extended automatically to June 30, 2019. The Company recorded rent income of $1,138 and $1,128, respectively, for the years ended December 31, 2018 and 2017. Yuli Broker and Yuli Investment are owned by Ms. Lee who is the Director of Law Broker. The Company plans to invest in Yuli Broker and the application of the investment was approved by Investment Commission of the Ministry of Economic Affairs in Taiwan in January 2018. As of December 31, 2018, the Company has not commenced the investment. Advisory Agreements On May 2, 2016, the Company entered into an advisory agreement with I Health who is contracted to provide 10,000 Taiwan citizens’ health information to the Company. The total advisory fee was approximately $42,000 (NTD 1,275,000). For the year ended December 31, 2017, the Company had cost of revenue related to I Health amounted $13,315. The Company had due to I Health $17,703 as of December 31, 2017. On December 7, 2016, the Company entered into an advisory agreement with Mr. Fu Chang Li, the Director of the Company. Pursuant to this Advisory Agreement, Mr. Li provided investment consulting services 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 $60,204 (NTD 1,800,000). For the years ended December 31, 2018 and 2017, the Company recognized $59,368 and $59,214, respectively, general and administrative expenses in connection to this advisory agreement. Consulting Agreement On November 1, 2016, the Company entered into a consulting agreement with Apex pursuant to which the Company would provide administrative operational consulting services to Apex from November 1, 2016 through December 31, 2021. As of December 31, 2018 and 2017, the Company had accounts receivable amounted of nil and $17,231, respectively. The Company also had revenue of $31,449 and $50,053 for the years ended December 31, 2018 and 2017, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments Disclosure [Text Block] | NOTE 21 – COMMITMENTS AND CONTINGENCIES Operating Leases The Company has operating leases for its offices. Rental expenses for the years ended December 31, 2018 and 2017 were $2,720,365, and $2,537,348, respectively. At December 31, 2018, total future minimum annual lease payments under operating leases were as follows, by years: Years ending December 31, Amount 2019 $ 2,043,635 2020 818,792 2021 369,340 2022 131,568 2023 121,303 Thereafter - Total $ 3,484,638 Legal Proceedings On December 20, 2018, the Company and one of the Company’s former employees, agreed to settle fraud charges brought by the SEC relating to a scheme to manipulate the Company's trading volume for the purpose of obtaining a listing on Nasdaq. Neither the Company nor the former employee realized financial gain from the scheme. Both the Company and the former employee agreed to the entry of a final judgment that enjoins them from violating the charged provisions of the federal securities laws, orders the Company to comply with its undertaking to retain an independent compliance monitor for a period of not less than one year. The SEC did not seek a monetary penalty against the Company and there is no financial impact to the Company. |
FINANCIAL RISK MANAGEMENT AND F
FINANCIAL RISK MANAGEMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Financial Risk Management and Fair Values [Abstract] | |
Financial Risk Management and Fair Values Disclosure [Text Block] | NOTE 22 – 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 of the Company are 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 The following table presents the fair value and carrying value of the Company’s financial assets and liabilities as of December 31, 2018: Fair Value Level 1 Level 2 Level 3 Carrying Value Assets Total cash, cash equivalents, time deposits, restricted cash and cash equivalents 46,379,935 - - 46,379,935 Marketable securities: Mutual fund 30,800 - - 30,800 Structured deposits - - - - Long-term investments: Government bonds (available-for-sale debt securities) - 99,834 - 99,834 REITs 1,120,239 - - 1,120,239 Liabilities Short-term loans - 8,435,587 - 8,435,587 Due to previous shareholders of AHFL - - 457,396 480,559 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 Level 1 Level 2 Level 3 Carrying Value Assets Total cash, cash equivalents, time deposits, restricted cash and cash equivalents 37,413,677 37,413,677 Marketable securities: Mutual fund 33,381 - - 33,381 Structured deposits - - 1,248,340 1,248,340 Long-term investment: Government bonds (available-for-sale debt securities) - 103,723 - 103,723 Liabilities Short-term loans - 2,350,000 - 2,350,000 Long-term loans - - 239,624 248,986 Due to previous shareholders of AHFL - - 465,950 480,559 The following table presents a reconciliation from the opening balances to the closing balances for recurring fair value measurements categorized within level 3 of the fair value hierarchy: Opening balance as of January 1, 2018 $ 1,248,340 Transfer into/ out of Level 3 - Total gains (losses) for the period included in earnings 68,646 Total gains (losses) for the period included in other comprehensive income - Purchases 13,696,531 Settlements (14,993,795 ) Foreign exchange gains (losses) (19,722 ) Ending balance as of December 31, 2018 $ - During the twelve months ended December 31, 2018, there were no assets or liabilities that were transferred between any of the levels. The carrying amounts of current financial assets and liabilities in the consolidated balance sheets for cash and cash equivalents, time deposits, restricted cash equivalents, accounts receivable, short-term loans and accrued expense approximate fair value due to the short-term duration of those instruments. Restricted cash – The fair value approximates the carrying amount due to the nature of cash held in restricted accounts. Marketable securities and long-term investments in REITs – The fair values of mutual funds and REITs were valued based on quoted market prices in active markets. Structured deposits – Structured deposits are hybrid instruments containing embedded derivatives. The valuation of the hybrid instruments is predominantly driven by the derivative features embedded within the instruments. The structured deposits are valued based on discounted cash flow analyses that consider the embedded derivative and terms and payment structure of the deposits. As of December 31, 2018 and 2017, the values of structured deposits were nil and $1,248,340 respectively. Gross unrealized losses on valuation of structured deposits at December 31, 2018 and 2017 were nil and $30,211 respectively. The embedded derivative features are valued using Black & Scholes option pricing model that used significant unobservable inputs, i.e., volatility of options. The fair value is determined by using the counterparty’s pricing information. The volatility mentioned above is a pricing input for options. Generally, the higher the volatility of the underlying, the riskier the instrument. Given a long position in an option, an increase in volatility, in isolation, would generally result in an increase in a fair value measurement. Government bonds – The fair value of government bonds is valued based on theoretical bond price in the Taipei Exchange. Long-term loans and due to previous shareholders – The fair value of long-term loans and due to previous shareholders are determined based on the variable nature of the interest rates and the proximity to the issuance date. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | NOTE 23 – SEGMENT REPORTING The Company organizes and manages its business as three operating segments by operating geographic areas. The business of WFOE, CU Hong Kong and the Company’s Consolidated Affiliated Entities (“CAE”) in PRC was managed and reviewed as PRC segment. The business of AHFL and its subsidiaries in Taiwan was managed and reviewed as Taiwan segment. The business of PFAL was managed and reviewed as Hong Kong segment. PRC and Taiwan segments retain majority of reported consolidated amounts. The geographical distributions of the Company’s financial information for the years ended December 31, 2018 and 2017 were as follows: For the Years Ended December 31, Geographic Areas 2018 2017 Revenue Taiwan $ 67,515,966 $ 62,147,136 PRC 10,465,147 10,467,488 Hong Kong 718,924 302,096 Elimination adjustment (32,306 ) (68,276 ) Total revenue $ 78,667,731 $ 72,848,444 Income (loss) from operations Taiwan $ 7,362,949 $ 12,109,928 PRC (48,080 ) 489,017 Hong Kong 478,626 3,065 Elimination adjustment 143,764 141,410 Total income from operations $ 7,937,259 $ 12,743,420 Net income (loss) Taiwan $ 4,906,605 $ 10,050,593 PRC 70,087 128,052 Hong Kong 426,363 (7,790 ) Elimination adjustment 13,591 7,010 Total net income $ 5,416,646 $ 10,177,865 The geographical distribution of the Company’s financial information as of December 31, 2018 and 2017 were as follows: As of December 31, Geographical Areas 2018 2017 Long-lived assets Taiwan $ 1,092,576 $ 836,347 PRC 102,383 109,597 Hong Kong 736 358 Elimination adjustment - - Total long-lived assets $ 1,195,695 $ 946,302 Reportable assets Taiwan $ 100,220,270 $ 96,399,321 PRC 11,796,388 11,140,124 Hong Kong 1,015,400 643,881 Elimination adjustment (44,150,214 ) (48,910,083 ) Total reportable assets $ 68,881,844 $ 59,273,243 Capital investment Taiwan $ 641,873 $ 348,028 PRC 53,158 34,445 Hong Kong 997 - Elimination adjustment - - Total capital investments $ 696,028 $ 382,473 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 24 – SUBSEQUENT EVENTS The Company has evaluated all other subsequent events through the date these consolidated financial statements were issued and determine that there were no subsequent events or transactions that require recognition or disclosures in the consolidated financial statements except for the follows: On January 30, 2019, the Company drew down $200,000 from the credit facility of CTBC with interest at a rate of 3.26% per annum. These amounts were paid off in February of 2019. On February 27, March 21 and March 28, 2019, the Company drew down borrowings of $450,000, $100,000 and $650,000 with interest at a rate of 3.75% per annum, respectively. On March 27, 2019, a sixth Amendment to the Acquisition Agreement (the “Sixth Amendment to AHFL Acquisition Agreement”) was entered into by and among our Company and the selling shareholders of AHFL named therein. Pursuant to the Sixth Amendment to AHFL Acquisition Agreement, our Company agreed to distribute the cash payment in the amount of NT$15 million to the selling shareholders of AHFL named therein on or prior to March 31, 2021. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The accompanying consolidated financial statements include the accounts of China United, its subsidiaries and variable interest entities as shown in the corporate structure in Note 1. All significant intercompany transactions and balances have been eliminated in the consolidation. The Company consolidates variable interest entities where it has been determined that the Company is the primary beneficiary of those entities' operations. 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. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”). The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and footnotes thereto. Actual results may differ from those estimates and assumptions. |
Noncontrolling Interest [Policy Text Block] | Noncontrolling Interest 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,” which governs the accounting for and reporting of noncontrolling interests (“NCI”) in partially owned consolidated subsidiaries and the loss of control of subsidiaries. Certain provisions of this standard indicate, among other things, that NCIs be treated as a separate component of equity, not as a liability, that increases and decreases in the parent’s ownership interest that leave control intact be treated as equity transactions rather than as step acquisitions or dilution gains or losses, and that losses of a partially owned consolidated subsidiary be allocated to the NCI even when such allocation might result in a deficit balance. This standard also required changes to certain presentation and disclosure requirements. The net income (loss) attributed to the NCI is separately designated in the accompanying statements of operations and other comprehensive income (loss). Losses attributable to the NCI in a subsidiary may exceed the NCI’s interests in the subsidiary’s equity. The excess attributable to the NCI is attributed to those interests. The NCI shall continue to be attributed its share of losses even if that attribution results in a deficit NCI balance. |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income The Company follows FASB ASC Topic 220, “Reporting Comprehensive Income,” which establishes standards for the reporting and display of comprehensive income, its components and accumulated balances in a full set of general-purpose financial statements. ASC 220 defines comprehensive income as net income and all changes to stockholders’ equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders, including adjustments to minimum pension liabilities, accumulated foreign currency translation, and unrealized gains or losses on securities held as available-for-sale. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Transactions 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 FASB ASC Topic 220, “Reporting Comprehensive Income”. 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. The exchange rates used for financial statements are as follows: Average Rate for the years ended December 31, 2018 2017 Taiwan dollar (NTD) NTD 30.13172 NTD 30.39845 China yuan (RMB) RMB 6.61464 RMB 6.75701 Hong Kong dollar (HKD) HKD 7.83704 HKD 7.79223 United States dollar ($) $ 1.00000 $ 1.00000 Exchange Rate at December 31, 2018 December 31, 2017 Taiwan dollar (NTD) NTD 30.56492 NTD 29.65568 China yuan (RMB) RMB 6.87644 RMB 6.50638 Hong Kong dollar (HKD) HKD 7.83125 HKD 7.81493 United States dollar ($) $ 1.00000 $ 1.00000 |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents include cash in banks, bank deposits, and highly liquid investments with maturities of three months or less at the date of origination. These investments are carried at cost, which approximates market value. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash and Cash Equivalents Restricted cash and cash equivalents represent amounts held in banks by the Company in conformity with Provisions of the Supervision and Administration of Specialized Insurance Agencies by China Insurance Regulatory Commission and time deposits in financial institutions that are pledged to satisfy the requirements of certain debt agreements. |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable includes commission receivables 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, 2018 and 2017. |
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, transportation equipment and other equipment is computed using straight-line method based on estimated useful lives ranging from one to ten years with estimated salvage value. Leasehold improvements are depreciated or amortized over the shorter of the estimated useful life of the asset or the remaining expected lease term. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill and Intangible Assets 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 evaluated 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, 2018, and 2017, 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 to 5 years. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets 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 was no impairment recognized for the years ended December 31, 2018 and 2017. |
Investment, Policy [Policy Text Block] | Long-Term Investments Long-term investments include government bonds held as available-for-sale, investment in real estate investment trusts (“REITs”) measured at fair value through net income, 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 measures equity investments in companies that do not have a readily determinable fair value in which it holds an interest of less than 20% using cost method, and no changes in fair value is recognize in net income for those equity investments. |
Debt, Policy [Policy Text Block] | Convertible Bonds Convertible debt is accounted for under the guidelines established by ASC Subtopic 470-20 “Debt with Conversion and Other Options.” ASC 470-20 governs the calculation of an embedded beneficial conversion. The amount of the value of beneficial conversion feature may reduce the carrying value of the instrument to zero, but no further. Many of the conversion features embedded in the Company’s notes are variable and are adjusted based on a discount to market prices which could cause an unlimited number of shares of common stock to be issued. In these cases, the Company records the embedded conversion feature as a derivative instrument, at fair value. The embedded conversion features are recorded as discounts when the notes become convertible. The excess of fair value of the embedded conversion feature over the carrying value of the debt is recorded as an immediate charge to operations. Each reporting period, the Company will compute the estimated fair value of derivatives and record changes to operations. The discounts relating to the initial recording of the derivatives or beneficial conversion features will be amortized over the terms of the convertible bonds. |
Advertising Costs, Policy [Policy Text Block] | Advertising Costs The Company expenses all advertising costs, which include promotions and branding, as incurred. The Company incurred $749,563 and $386,858 in advertising and marketing costs during the years ended December 31, 2018 and 2017, respectively. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition The Company’s revenue is generated from providing 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 adopted the new revenue standard ASC Topic 606, Revenue from Contracts with Customers, at the beginning of 2018, which requires that recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company recognizes revenue when control over services provided by the Company is transferred to the respective insurance company; whereby the transfer of control is considered complete when the insurance policy becomes effective. The new guidance includes requirements to estimate variable or contingent consideration to be received and recognize variable consideration to the extent that a significant reversal of revenue will not probably occur in the subsequent periods. Applying the new revenue standard requires significant judgment and estimate to be made by the Company. The Company is obligated to pay commissions to its sales professionals when an insurance policy becomes effective. 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] | Income Taxes 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% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits is classified as interest expense and penalties are classified in general and administrative expenses in the consolidated statements of operations and other comprehensive income (loss). |
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Share Basic earnings per common share (“EPS”) is computed by dividing net income attributable to the common shareholders of the Company by the weighted-average number of common shares outstanding. Diluted EPS is computed in the same manner as basic EPS, except the number of shares includes additional common shares that would have been outstanding if potential common shares with a dilutive effect had been issued. As the holders of preferred stock of the Company 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 Company as may be declared by the board of directors, the preferred stock is a participating security. When calculating the basic earnings per common share, the two-class method is used to allocate earnings to common stock and participating security as required by ASC Topic 260, “Earnings Per Share.” Potential common shares consist primarily of convertible bonds calculated using the if-converted method. However, convertible bonds were excluded from the calculation due to the antidilutive effect. The antidilutive common share equivalents excluded from the computation 45,935 for the year ended December 31, 2018. The calculation for basic and diluted EPS is as follows: As of December 31, 2018 2018 2017 Net income attributable to common shareholders of the Company: $ 2,371,405 $ 7,154,638 Effect of dilution - 12,000 Net income attributable to common shareholders of the Company after dilution $ 2,371,405 $ 7,166,638 Basic weighted-average number of common shares outstanding 29,452,669 29,452,669 Effect of convertible bond - 1,056,883 Diluted weighted-average number of common shares outstanding 29,452,669 30,509,552 Earnings per share attributable to common shareholders of the Company: Basic $ 0.078 $ 0.243 Diluted $ 0.078 $ 0.235 |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments 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. This hierarchy requires the use of observable market data when available. 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 22 for additional information on the fair values related to other financial assets and liabilities. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Risk The Company maintains cash and cash equivalents with banks or high credit, quality financial institutions in the USA, PRC, Hong Kong, and Taiwan with balances in excess of the limits insured by various governments. In Taiwan, a depositor has up to NTD3,000,000 insured by Central Deposit Insurance Corporation (“CDIC”). In China, a depositor has up to RMB500,000 insured by the People’s Bank of China Financial Stability Bureau (“FSD”). In Hong Kong, a depositor has up to HKD500,000 insured by Hong Kong Deposit Protection Board (“DPB”). In the United States, the standard insurance amount is $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 and cash equivalents, time deposits, restricted cash, register capital deposits and accounts receivable. As of December 31, 2018, and 2017, approximately $1,751,000 and $1,512,000 of the Company’s cash and cash equivalents, time deposits, restricted cash and register capital deposits held by financial institutions, was insured, and the remaining balance of approximately $44,289,000 and $33,949,000, was not insured. With respect to accounts receivable, the Company generally does not require collateral and does not have an allowance for doubtful accounts. For the fiscal years ended December 31, 2018 and 2017, the Company realized revenues with the customers individually more than 10% of the total revenue of the Company were: Years ended December 31, 2018 2017 Amount % of Total Revenue Amount % of Total Revenue Farglory Life Insurance Co., Ltd. $ 18,432,050 23 % $ 18,617,293 26 % Taiwan Life Insurance Co., Ltd. (**) 11,024,333 14 % 9,309,759 13 % TransGlobe Life Insurance Inc. 10,280,105 13 % 8,168,837 11 % Fubon Life Insurance Co., Ltd. (* ) (* ) (* ) (* ) (*) 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. As of December 31, 2018 and 2017, the Company’s accounts receivable As of December 31, 2018 2017 Amount % of Total Accounts Receivable Amount % of Total Accounts Receivable Farglory Life Insurance Co., Ltd. $ 3,139,404 24 % $ 3,430,661 26 % Taiwan Life Insurance Co., Ltd. (**) 2,578,590 20 % 2,192,668 17 % TransGlobe Life Insurance Inc. 2,381,181 18 % 1,811,401 14 % Fubon Life Insurance Co., Ltd. (* ) (* ) (* ) (* ) (*) 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 operates their business 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] | Operating Leases Leases, where substantially all the rewards and risks of ownership of assets remain with the leasing company, that do not meet the capitalization criteria of FASB ASC Topic 840 “Leases,” are accounted for as operating leases. |
Segment Reporting, Policy [Policy Text Block] | Segment Reporting The Company managed and reviewed its business as three operating segments. The business of 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 23 for additional information on the segment reporting. |
Commitments and Contingencies, Policy [Policy Text Block] | Contingencies Certain conditions may exist as of the date the financial statements are issued, which could result in a loss to the Company which will be resolved when one or more future events occur or fail to occur. The Company’s management assesses such contingent liabilities, and such assessment inherently involves judgment. In assessing loss contingencies arising from legal proceedings pending against the Company or unasserted claims that may rise from such proceedings, the Company’s management evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought. If the assessment of a contingency indicates it is probable a material loss will be incurred and the amount of the loss can be reasonably estimated, then the estimated loss is accrued in the Company’s financial statements. If the assessment indicates a material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material would be disclosed. |
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | Variable Interest Entities The Company follows FASB ASC Subtopic 810-10-05-8, “Consolidation of VIEs,” states that a VIE is a legal entity in which equity investors do not have sufficient equity at risk for the legal entity to finance its activities without additional subordinated financial support or, as a group, the holders of the equity investment at risk lack any one of the following three characteristics: 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 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, 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) 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 WFOE. Anhou further agrees that unless with 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 WFOE fees equal to 90% of the net income of Anhou, and the payment is quarterly, and (4) 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 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 WFOE prior to the expiration thereof. The extended term shall be determined by WFOE, and Anhou shall accept such extended term unconditionally. During the term of this Agreement, unless WFOE commits gross negligence, or a fraudulent act, against Anhou, Anhou may not terminate this Agreement. Nevertheless, 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 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 WFOE or its designated person an exclusive and irrevocable right to acquire, at any time, the entire portion of Anhou’s equity interest held by each shareholder of Anhou, or any portion thereof, to the extent permitted by PRC law. The purchase price for the shareholders’ equity interests in Anhou shall be the lower of (i) RMB1 ($0.16) and (ii) the lowest price allowed by relevant laws and regulations. If appraisal is required by the laws of PRC when WFOE exercises the Equity Interest Purchase Option (as defined in the Option Agreement), the Parties shall negotiate in good faith and based on the appraisal result make necessary adjustment to the Equity Interest Purchase Price (as defined in the Option Agreement) so that it complies with any and all then applicable laws of the PRC. The term of this Agreement is 10 years, and may be renewed at WFOE’s election. Share Pledge Agreement under which the owners of Anhou pledged their equity interests in Anhou to 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, 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, 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 WFOE, Anhou and Anhou Original Shareholders on the same date. The EBCA executed by and between WFOE and Anhou on January 17, 2011 remains in full effect. As a result of the agreements among WFOE, the shareholders of Anhou and Anhou, WFOE is considered the primary beneficiary of Anhou, WFOE has effective control over Anhou; therefore, 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, 2018 and 2017, 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 New Accounting Pronouncements Effective January 1, 2018: Revenue from Contracts with Customers In May 2014, the FASB issued new accounting guidance – ASU No. 2014-09, (Topic 606), Revenue from Contracts with Customers related to revenue from contracts with customers. The core principle of the Standard is that recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new guidance requires that companies disclose the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted the new guidance effective January 1, 2018, using the modified retrospective method, which applies the new guidance beginning in the year of adoption, with the cumulative effect of initially applying the guidance recognized as an adjustment to retained earnings at January 1, 2018. The Company’s revenue is derived from insurance agency and brokerage services. The Company, through its subsidiaries, sells insurance products provided by insurance companies to individuals, and is compensated in the form of commissions from the respective insurance companies, according to the terms of each service agreement made by and between the Company and the insurance companies. The sale of an insurance product by the Company is considered complete when initial insurance premium is paid by an individual and the insurance policy becomes effective. When a policy is effective, the insurance company is obligated to pay the agreed-upon commission to the Company under the terms of its service agreement with the Company and such commission is recognized as revenue. Upon adoption of the new revenue guidance, the timing of revenue recognition remains unchanged. However, the new guidance includes requirements to estimate variable or contingent consideration to be received and recognize variable consideration to the extent that a significant reversal of revenue will not probably occur in the subsequent periods. Under the legacy GAAP, the Company recognized certain contingent commissions when fixed or determinable whereas the Company recognizes estimated contingent commissions when the policy is accepted under the new revenue guidance. This results in the revenue recognition accelerated from historical patterns and a shift in timing of quarterly revenue recognized. In addition, the Company recognizes the contingent commission as contract asset when the performance obligation is fulfilled but yet obtain unconditional rights of payment. As a result, the Company recognizes contract assets to distinguish from accounts receivable. Since the majority of the Company’s fee arrangements involve contracts that cover a single year of services, there was no significant change in the amount of revenue recognized in an annual period after adoption of the new revenue recognition accounting policy. The cumulative effect of adopting the new standard from January 1, 2018 is nil to the opening balance of retained earnings. The comparative information and prior periods were not restated and reported under the legacy accounting standards. Restricted Cash In November 2016, the FASB issued ASU No. 2016-18, (Topic 230), Statement of Cash Flows, amending the presentation of restricted cash within the consolidated statements of cash flows. The new guidance requires that restricted cash be added to cash and cash equivalents on the consolidated statements of cash flows. The Company adopted this ASU in the first quarter of 2018 on a retrospective basis with the following impacts to the Company’s prior period consolidated statement of cash flows: Twelve Months Ended December 31, 2017 Previously Reported* Adjustments As Revised Operating activities $ 5,655,491 $ 251,432 $ 5,906,923 Investing activities (14,435,727 ) - (14,435,727 ) Financing activities 2,506,795 - 2,506,795 Foreign currency translation 1,577,935 - 1,577,935 Net change in cash, cash equivalents, and restricted cash and equivalents $ (4,695,506 ) $ 251,432 $ (4,444,074 ) Financial Instruments – Recognition and Measurement On January 1, 2018, the Company adopted, on a prospective basis, ASU No. 2016-01, (Subtopic 825-10), Recognition and Measurement of Financial Assets and Liabilities that makes limited changes to the accounting for financial instruments. The changes primarily relate to (i) the requirement to measure equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) at fair value, with changes in the fair value recognized in net income, (ii) an alternative approach for the measurement of equity investments that do not have a readily determinable fair value, (iii) the elimination of the other-than-temporary impairment model and its replacement with a requirement to perform a qualitative assessment to identify the impairment of equity investments, and a requirement to recognize impairment losses in net income based on the difference between the fair value and the carrying value of the equity investment, (iv) the elimination of the requirement to disclose the methods and significant assumptions used to estimate the fair value of financial instruments measured at amortized cost, (v) the addition of a requirement to use the exit price concept when measuring the fair value of financial instruments for disclosure purposes and (vi) the addition of a requirement to present financial assets and financial liabilities separately in the notes to financial statements, grouped by measurement category (e.g., fair value, amortized cost, lower of cost or market) and by form of financial asset (e.g., loans, equity securities). The equity investment without readily determinable fair value held by the Company is the investment of Genius Insurance Broker Co., Ltd. The Company elects to measure the equity investment using measurement alternative and records the investment at cost minus impairment, if any, plus or minus changes resulting from qualifying observable prices changes. Adjustments resulting from impairments and observable prices changes are recorded in the income statement. Further, in accordance with the guidance, recurring fair value disclosures are no longer provided for equity securities measured using the measurement alternative. In addition, the existing impairment model has been replaced with a new one-step qualitative impairment model. No initial adoption adjustment was recorded for these instruments since the guidance is required to be applied prospectively for securities measured using the measurement alternative. For the year ended December 31, 2018, there is no impairment indicator and no adjustment to the cost of the equity investment in Genius Insurance Broker Co., Ltd. As of December 31, 2018 and 2017, the equity investment of Genius Insurance Broker Co., Ltd. is classified under long-term investments and the carrying amounts were $1,257,485 and $1,296,039, respectively. Accounting Standards Issued but Not Yet Adopted Leases In February 2016, FASB issued ASU No. 2016-02, (Topic 842), Leases. ASU 2016-02 requires the recognition of lease assets and lease liabilities by lessees for those leases currently classified as operating leases and makes certain changes to the accounting for lease expenses. We anticipate that the adoption of ASU 2016-02 for our leasing arrangements will likely (i) increase our recorded assets and liabilities, (ii) increase depreciation and amortization expense, (iii) increase interest expense and (iv) decrease lease/rental expense. We plan to adopt the standard as of January 1, 2019, the beginning of fiscal 2019. We will elect the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows us to continue to apply the legacy guidance in ASC 840 in the comparative periods presented in the year we adopt the new leases standard. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. We will also elect the practical expedient that allows us to carry forward historical lease classifications and we will make an accounting policy election to keep leases with an initial term of 12 months or less off the balance sheet. While substantially complete, the Company is still in the process of finalizing its evaluation of the effect of ASU 2016-02 on the Company’s financial statements and disclosures. The Company will finalize its accounting assessment and quantitative impact of the adoption during the first quarter of fiscal year 2019. Credit Losses In June 2016, the FASB issued ASU No. 2016-13, (Topic 326), Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments There were other updates recently issued. The management does not believe that other than disclosed above, accounting pronouncements the recently issued but not yet adopted will have a material impact on its financial position results of operations or cash flows. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 Taiwan dollar (NTD) NTD 30.13172 NTD 30.39845 China yuan (RMB) RMB 6.61464 RMB 6.75701 Hong Kong dollar (HKD) HKD 7.83704 HKD 7.79223 United States dollar ($) $ 1.00000 $ 1.00000 Exchange Rate at December 31, 2018 December 31, 2017 Taiwan dollar (NTD) NTD 30.56492 NTD 29.65568 China yuan (RMB) RMB 6.87644 RMB 6.50638 Hong Kong dollar (HKD) HKD 7.83125 HKD 7.81493 United States dollar ($) $ 1.00000 $ 1.00000 |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The calculation for basic and diluted EPS is as follows: As of December 31, 2018 2018 2017 Net income attributable to common shareholders of the Company: $ 2,371,405 $ 7,154,638 Effect of dilution - 12,000 Net income attributable to common shareholders of the Company after dilution $ 2,371,405 $ 7,166,638 Basic weighted-average number of common shares outstanding 29,452,669 29,452,669 Effect of convertible bond - 1,056,883 Diluted weighted-average number of common shares outstanding 29,452,669 30,509,552 Earnings per share attributable to common shareholders of the Company: Basic $ 0.078 $ 0.243 Diluted $ 0.078 $ 0.235 |
Schedule Of Revenue From Insurance Services [Table Text Block] | For the fiscal years ended December 31, 2018 and 2017, the Company realized revenues with the customers individually more than 10% of the total revenue of the Company were: Years ended December 31, 2018 2017 Amount % of Total Revenue Amount % of Total Revenue Farglory Life Insurance Co., Ltd. $ 18,432,050 23 % $ 18,617,293 26 % Taiwan Life Insurance Co., Ltd. (**) 11,024,333 14 % 9,309,759 13 % TransGlobe Life Insurance Inc. 10,280,105 13 % 8,168,837 11 % Fubon Life Insurance Co., Ltd. (* ) (* ) (* ) (* ) (*) 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, 2018 and 2017, the Company’s accounts receivable As of December 31, 2018 2017 Amount % of Total Accounts Receivable Amount % of Total Accounts Receivable Farglory Life Insurance Co., Ltd. $ 3,139,404 24 % $ 3,430,661 26 % Taiwan Life Insurance Co., Ltd. (**) 2,578,590 20 % 2,192,668 17 % TransGlobe Life Insurance Inc. 2,381,181 18 % 1,811,401 14 % Fubon Life Insurance Co., Ltd. (* ) (* ) (* ) (* ) (*) 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 New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | Twelve Months Ended December 31, 2017 Previously Reported* Adjustments As Revised Operating activities $ 5,655,491 $ 251,432 $ 5,906,923 Investing activities (14,435,727 ) - (14,435,727 ) Financing activities 2,506,795 - 2,506,795 Foreign currency translation 1,577,935 - 1,577,935 Net change in cash, cash equivalents, and restricted cash and equivalents $ (4,695,506 ) $ 251,432 $ (4,444,074 ) |
CASH, CASH EQUIVALENTS AND RE_2
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Restricted Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents [Table Text Block] | Cash, cash equivalents and restricted cash and cash equivalents consisted of the following as of December 31, 2018 and 2017: December 31, 2018 December 31, 2017 Cash and cash equivalents: Cash in banks and on hand $ 7,439,057 $ 11,774,489 Cash equivalents - re-purchase bonds - 2,697,628 Cash equivalents - commercial paper 654,006 - Time deposits - with original maturities less than three months 8,570,879 1,001,832 16,663,942 15,473,949 Restricted cash equivalents 3,320,802 - Restricted cash – long-term 655,027 469,615 Total cash, cash equivalents and restricted cash shown in the statements of cash flows $ 20,639,771 $ 15,943,564 |
TIME DEPOSITS AND STRUCTURED _2
TIME DEPOSITS AND STRUCTURED DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | |
Cash, Cash Equivalents and Investments [Table Text Block] | December 31, 2018 December 31, 2017 Total time deposits $ 34,311,043 $ 22,471,945 Less: time deposits - original maturities less than three months (see Note 3) (8,570,879 ) (1,001,832 ) Time deposits - original maturities over three months but less than one year $ 25,740,164 $ 21,470,113 Structured deposits $ - $ 1,248,340 |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017: December 31, 2018 December 31, 2017 Loan receivable $ - $ 1,510,347 Prepaid rent and rent deposits 322,130 213,688 Prepaid expenses 327,083 87,947 Other receivables 325,946 135,996 Refundable business tax 149,028 150,221 Marketable securities 30,800 33,381 Interest receivable 691 94,887 Total other current assets $ 1,155,678 $ 2,226,467 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property, plant and equipment consisted of the following, as of December 31, 2018 and 2017: December 31, 2018 December 31, 2017 Office equipment $ 1,293,549 $ 1,198,456 Office furniture 112,366 103,025 Leasehold improvements 910,168 761,522 Transportation equipment 223,115 221,477 Other equipment 375,496 90,990 Total 2,914,694 2,375,470 Less: accumulated depreciation (1,718,999 ) (1,429,168 ) Total property, plant and equipment, net $ 1,195,695 $ 946,302 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | As of December 31, 2018 and 2017, the Company’s intangible assets consisted the following: December 31, 2018 December 31, 2017 Software $ 1,816,449 $ 1,797,227 Less: accumulated amortization (1,240,464 ) (1,021,449 ) Total intangible assets net $ 575,985 $ 775,778 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Estimated future assets amortization as of December 31, 2018 is as follows: Years ending December 31, Amount 2019 $ 233,520 2020 203,127 2021 93,872 2022 35,791 2023 9,675 Thereafter - Total $ 575,985 |
LONG-TERM INVESTMENTS (Tables)
LONG-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Long Term Investment [Abstract] | |
Available-for-sale Securities [Table Text Block] | As of December 31, 2018 and 2017, the Company’s long-term investments consisted the following: December 31, 2018 December 31, 2017 Equity investments accounted for the cost method $ 1,257,485 $ 1,296,039 Government bonds held for available-for-sale 99,834 103,723 REITs 1,120,239 - Total long-term investments $ 2,477,558 $ 1,399,762 |
Schedule of Cost Method Investments [Table Text Block] | Equity investments accounted for the cost method The change in carrying value of equity investment from December 31, 2017 to December 31, 2018 was entirely due to foreign currency translation. Type Investee Investment Ownership December 31, 2018 Amount December 31, 2017 Amount Equity investments Genius Insurance Broker Co., Ltd 15.64 % $ 1,257,485 $ 1,296,039 |
Schedule Of Long Term Investment [Table Text Block] | December 31, 2018 Fair value at December 31, 2017 Gross unrealized losses Fair value at December 31, 2018 Government bonds 103,723 (3,889 ) 99,834 $ 103,723 $ (3,889 ) $ 99,834 December 31, 2017 Fair value at December 31, 2016 Gross unrealized gains Fair value at December 31, 2017 Government bonds 94,506 9,217 103,723 $ 94,506 $ 9,217 $ 103,723 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017: December 31, 2018 December 31, 2017 Rental deposits $ 465,423 $ 508,352 Register capital deposit 872,544 1,075,867 Prepayments 112,055 140,404 Deferred tax assets 268,237 123,406 Goodwill 31,651 31,651 Other 14,728 82,231 Total other assets $ 1,764,638 $ 1,961,911 |
SHORT-TERM LOANS (Tables)
SHORT-TERM LOANS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Short-term Debt [Abstract] | |
Schedule of Short-term Debt [Table Text Block] | The Company’s short-term loans consisted of the following as of December 31, 2018 and 2017: December 31, 2018 December 31, 2017 Credit facility, O-Bank $ 3,600,000 $ 1,400,000 Credit facility, FEIB 2,000,000 - Credit facility, CTBC 1,000,000 950,000 Credit facility, KGI 1,600,000 - Subtotal 8,200,000 2,350,000 Current portion of long-term loans (Note 14) 235,587 - Total short-term loans $ 8,435,587 $ 2,350,000 |
INCOME TAX PAYABLE (Tables)
INCOME TAX PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule Of Taxes Payable [Table Text Block] | The Company’s income tax payable consisted of the following as of December 31, 2018 and 2017: December 31, 2018 December 31, 2017 Taiwan Tax $ 1,416,540 $ 3,232,996 USA Tax (Note 19) 1,131,307 - PRC Tax 7,590 270,267 Hong Kong Tax 51,032 5,527 Total income tax payable $ 2,606,469 $ 3,508,790 Less: short-term (1,599,146 ) (3,508,790 ) Income tax payable – long-term (Note 19) $ 1,007,323 $ - |
COMMISSIONS PAYABLE TO SALES _2
COMMISSIONS PAYABLE TO SALES PROFESSIONALS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule Of Commissions Payable [Table Text Block] | Commissions payable to professionals consisted of the following as of December 31, 2018 and 2017: December 31, 2018 December 31, 2017 Taiwan $ 7,602,595 $ 6,206,269 PRC 411,885 208,802 Hong Kong - - Total commissions payable to sales professionals $ 8,014,480 $ 6,415,071 |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Schedule Of Other Current Liabilities [Table Text Block] | Other current liabilities consisted of the following as of December 31, 2018 and 2017: December 31, 2018 December 31, 2017 Unearned revenue - current (Note 15) $ 1,028,256 $ 1,237,684 Payroll payable and other benefits 1,360,790 1,309,281 Accrued bonus 2,320,445 1,730,278 Accrued business tax and tax withholdings 893,391 835,410 Other accrued liabilities 1,745,959 1,051,112 Total other current liabilities $ 7,348,841 $ 6,163,765 |
LONG-TERM LOANS (Tables)
LONG-TERM LOANS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | The Company’s long-term loans consisted of the following as of December 31, 2018 and 2017: December 31, 2018 December 31, 2017 Loan A, interest at 8% per annum, maturity date May 15, 2019 $ 123,611 $ 130,641 Loan B, interest at 8% per annum, maturity date July 20, 2019 111,976 118,345 Total loans 235,587 248,986 Less: current portion (Note 10) (235,587 ) - Total long-term loans $ - $ 248,986 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Other Noncurrent Liabilities [Table Text Block] | The Company’s other liabilities consisted of the following as of December 31, 2018 and 2017: December 31, 2018 December 31, 2017 Unearned revenue - AIATW $ 2,056,513 $ 4,239,130 Due to previous shareholders of AHFL 480,559 480,559 Deferred tax liabilities - 122,551 Total other liabilities $ 2,537,072 $ 4,842,240 |
Schedule Of Contract with Customer [Table Text Block] | The following table presents the amounts recognized as revenue and refund for each contract year: Contract Year Period Execution Fees Revenue Amount Revenue VAT Amount Refund Amount Refund VAT Amount First 04/15/2013 09/30/2014 NTD 50,000,000 NTD 27,137,958 (1) NTD 1,356,898 NTD 20,481,090 (1) NTD 1,024,054 Second 01/01/2016 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 01/01/2017 12/31/2017 NTD 33,000,000 NTD 12,628,201 (3) NTD 631,410 NTD 18,800,370 (3) NTD 940,019 Fourth 01/01/2018 12/31/2018 NTD 33,000,000 NTD 11,228,600 (4) NTD 561,429 NTD 20,199,971 (4) NTD 1,010,000 Fifth 01/01/2019 12/31/2019 NTD 33,000,000 NTD - NTD - NTD - NTD - Sixth 01/01/2020 12/31/2020 NTD 33,000,000 NTD - NTD - NTD - NTD - Seventh 01/01/2021 12/31/2021 NTD 33,000,000 NTD - NTD - NTD - NTD - TOTAL NTD 250,000,000 NTD 63,849,759 NTD 3,192,487 NTD 79,959,764 NTD 3,997,990 1) The revenue recognition for the first contract year is based on the annual first year premium (“AFYP”) set in Alliance Agreement, which is different 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 $892,742 (NTD 27,137,958), net of Value-Added Tax (“VAT”) in 2017 due to uncertainty resolved after Amendment 3 went effective. Besides, on December 3, 2015 and February 23, 2016, the Company refunded the amounts of $160,573 (NTD4,761,905), net of VAT, and $530,056 (NTD15,719,185), net of VAT, to AIATW, respectively, due to the portion of performance sales targets not met during the first contract year based on original agreement and earlier amendments. 2) For the year ended December 31, 2016, the Company recognized the second contract year’s revenue amount of $422,883 (NTD 12,855,000), net of VAT, and refunded the amount of $690,537 (NTD 20,478,333), net of VAT, due to uncertainty resolved after Amendment 3 went effective. 3) For the year ended December 31, 2017, the Company recognized the third contract year’s revenue amount of $415,423 (NTD12,628,201), net of VAT, and refund amount of $633,955 (NTD18,800,370), net of VAT, for the same contract period based on the calculation of VONB and 13-month persistency. 4) For the year ended December 31, 2018, the Company estimated to recognize the fourth contract year’s revenue amount of $391,223 (NTD11,788,229), net of VAT, and refund the amount of $651,816 (NTD19,640,341), net of VAT, for the same contract period based on the calculation of VONB and 13-month persistency. The revenue recorded and refund amounts were trued up to $412,230 (NTD 12,068,571) and $661,286 (NTD 19,360,000), respectively, for the year ended December 31, 2018 based on notice received from AIATW. |
NONCONTROLLING INTERESTS (Table
NONCONTROLLING INTERESTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Noncontrolling Interest [Abstract] | |
Schedule of Non-Controlling Interests [Table Text Block] | Noncontrolling interests consisted of the following as of December 31, 2018 and 2017: Name of Entity % of Non- Controlling Interests December 31, 2017 Net Income (Loss) Other Comprehensive Income (Loss) December 31, 2018 Law Enterprise 34.05 % $ (243,240 ) $ 193,308 $ (22,625 ) $ (72,557 ) Law Broker 34.05 % 13,900,341 2,655,344 (406,023 ) 16,149,662 PFAL 49.00 % 228,079 208,918 (255 ) 436,742 MKI 49.00 % (2,117 ) (513 ) - (2,630 ) PA Taiwan 49.00 % (145,442 ) (11,789 ) (531 ) (157,762 ) PTC Nanjing 49.00 % (1,965 ) (26 ) (420 ) (2,411 ) Total $ 13,735,656 $ 3,045,242 $ (429,854 ) $ 16,351,044 Name of Entity % of Non- Controlling Interests December 31, 2016 Net Income (Loss) Other Comprehensive Income (Loss) December 31, 2017 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 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 consisted of: Year ended December 31, 2018 Federal State Foreign Total Current $ 1,227,243 $ - $ 2,546,560 $ 3,773,803 Deferred - - (163,631 ) (163,631 ) Total $ 1,227,243 $ - $ 2,382,929 $ 3,610,172 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 |
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, 2018 and 2017 consisted of the following: 2018 2017 Deferred tax assets Net operating loss carry-forward $ 847,023 $ 874,934 Others 268,237 123,406 Total $ 1,115,260 $ 998,340 Valuation allowance (847,023 ) (874,934 ) Net deferred tax assets - noncurrent $ 268,237 $ 123,406 Deferred tax liabilities - noncurrent $ - $ 122,551 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The following table reconciles the Company’s statutory tax rates to effective tax rates for the years ended December 31, 2018 and 2017: Years Ended December 31, 2018 2017 US statutory rate 21 % 34 % Tax rate difference (1 )% (18 )% Tax base difference - % - % Income tax on undistributed earnings 4 % - % Loss in subsidiaries 3 % 3 % Un-deductible and non-taxable items - % 7 % True up of prior year income tax 3 % - % Withholding tax 10 % - % Effective tax rate 40 % 26 % |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | Due to related parties consisted of the following as of December 31, 2018 and 2017: December 31, 2018 December 31, 2017 Due to Mr. Mao (Principal shareholder of the Company)* $ 391,311 $ 409,054 Due to Ms. Lu (Shareholder of Anhou)* - 161,380 Due to I Health Management Corp** - 17,703 Accrued bonus for Ms. Chao*** 597,631 210,752 Others 7,623 2,128 Total $ 996,565 $ 801,017 *Amounts due to Mr. Mao and Ms. Lu bear no interest and are payable on demand. **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 the Company’s management level. ***On May 10, 2016, Law Broker entered into an engagement agreement (“Engagement Agreement”) with Hui-Hsien Chao (“Ms. Chao”), pursuant to which, she serves as the general manager of Law Broker 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 March 13, 2017, Law Broker and Ms. Chao entered into an amendment to the Engagement above-mentioned to specify 1) Ms. Chao’s pension calculation assumptions and start date, and 2) the non-competition provision start date. As of December 31, 2018 and 2017, the Company had current liabilities amounted $597,631 and $210,752, respectively, related to accrued bonus for Ms. Chao. 398,801 123,362 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | At December 31, 2018, total future minimum annual lease payments under operating leases were as follows, by years: Years ending December 31, Amount 2019 $ 2,043,635 2020 818,792 2021 369,340 2022 131,568 2023 121,303 Thereafter - Total $ 3,484,638 |
FINANCIAL RISK MANAGEMENT AND_2
FINANCIAL RISK MANAGEMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018: Fair Value Level 1 Level 2 Level 3 Carrying Value Assets Total cash, cash equivalents, time deposits, restricted cash and cash equivalents 46,379,935 - - 46,379,935 Marketable securities: Mutual fund 30,800 - - 30,800 Structured deposits - - - - Long-term investments: Government bonds (available-for-sale debt securities) - 99,834 - 99,834 REITs 1,120,239 - - 1,120,239 Liabilities Short-term loans - 8,435,587 - 8,435,587 Due to previous shareholders of AHFL - - 457,396 480,559 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 Level 1 Level 2 Level 3 Carrying Value Assets Total cash, cash equivalents, time deposits, restricted cash and cash equivalents 37,413,677 37,413,677 Marketable securities: Mutual fund 33,381 - - 33,381 Structured deposits - - 1,248,340 1,248,340 Long-term investment: Government bonds (available-for-sale debt securities) - 103,723 - 103,723 Liabilities Short-term loans - 2,350,000 - 2,350,000 Long-term loans - - 239,624 248,986 Due to previous shareholders of AHFL - - 465,950 480,559 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The following table presents a reconciliation from the opening balances to the closing balances for recurring fair value measurements categorized within level 3 of the fair value hierarchy: Opening balance as of January 1, 2018 $ 1,248,340 Transfer into/ out of Level 3 - Total gains (losses) for the period included in earnings 68,646 Total gains (losses) for the period included in other comprehensive income - Purchases 13,696,531 Settlements (14,993,795 ) Foreign exchange gains (losses) (19,722 ) Ending balance as of December 31, 2018 $ - |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 were as follows: For the Years Ended December 31, Geographic Areas 2018 2017 Revenue Taiwan $ 67,515,966 $ 62,147,136 PRC 10,465,147 10,467,488 Hong Kong 718,924 302,096 Elimination adjustment (32,306 ) (68,276 ) Total revenue $ 78,667,731 $ 72,848,444 Income (loss) from operations Taiwan $ 7,362,949 $ 12,109,928 PRC (48,080 ) 489,017 Hong Kong 478,626 3,065 Elimination adjustment 143,764 141,410 Total income from operations $ 7,937,259 $ 12,743,420 Net income (loss) Taiwan $ 4,906,605 $ 10,050,593 PRC 70,087 128,052 Hong Kong 426,363 (7,790 ) Elimination adjustment 13,591 7,010 Total net income $ 5,416,646 $ 10,177,865 |
Schedule Of Long Term Liabilities [Table Text Block] | The geographical distribution of the Company’s financial information as of December 31, 2018 and 2017 were as follows: As of December 31, Geographical Areas 2018 2017 Long-lived assets Taiwan $ 1,092,576 $ 836,347 PRC 102,383 109,597 Hong Kong 736 358 Elimination adjustment - - Total long-lived assets $ 1,195,695 $ 946,302 Reportable assets Taiwan $ 100,220,270 $ 96,399,321 PRC 11,796,388 11,140,124 Hong Kong 1,015,400 643,881 Elimination adjustment (44,150,214 ) (48,910,083 ) Total reportable assets $ 68,881,844 $ 59,273,243 Capital investment Taiwan $ 641,873 $ 348,028 PRC 53,158 34,445 Hong Kong 997 - Elimination adjustment - - Total capital investments $ 696,028 $ 382,473 |
ORGANIZATION AND PRINCIPAL AC_2
ORGANIZATION AND PRINCIPAL ACTIVITIES (Details Textual) | Dec. 31, 2018 | Dec. 31, 2017 |
Law Insurance Broker Co [Member] | ||
Disclosure of Organization And Principal Activities [Line Items] | ||
Equity Method Investment, Ownership Percentage | 100.00% | |
Sichuan Kangzhuang [Member] | ||
Disclosure of Organization And Principal Activities [Line Items] | ||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |
Law Enterprise [Member] | ||
Disclosure of Organization And Principal Activities [Line Items] | ||
Noncontrolling Interest, Ownership Percentage by Parent | 34.05% | 34.05% |
Jiangsu Law [Member] | ||
Disclosure of Organization And Principal Activities [Line Items] | ||
Equity Method Investment, Ownership Percentage | 100.00% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Dec. 31, 2018 | Dec. 31, 2017 |
Taiwan Dollar [Member] | ||
Foreign Currency Average Rate Translation | 30.13172 | 30.39845 |
Foreign Currency Exchange Rate, Translation | 30.56492 | 29.65568 |
China yuan [Member] | ||
Foreign Currency Average Rate Translation | 6.61464 | 6.75701 |
Foreign Currency Exchange Rate, Translation | 6.87644 | 6.50638 |
Hong Kong, Dollars | ||
Foreign Currency Average Rate Translation | 7.83704 | 7.79223 |
Foreign Currency Exchange Rate, Translation | 7.83125 | 7.81493 |
United States of America, Dollars | ||
Foreign Currency Average Rate Translation | 1 | 1 |
Foreign Currency Exchange Rate, Translation | 1 | 1 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Net income attributable to common shareholders of the Company: | $ 2,371,405 | $ 7,154,638 |
Effect of dilution | 0 | 12,000 |
Net income attributable to common shareholders of the Company after dilution | $ 2,371,405 | $ 7,166,638 |
Basic weighted-average number of common shares outstanding | 29,452,669 | 29,452,669 |
Effect of convertible bond | 0 | 1,056,883 |
Diluted weighted-average number of common shares outstanding | 29,452,669 | 30,509,552 |
Earnings per share attributable to common shareholders of the Company: | ||
Basic | $ 0.078 | $ 0.243 |
Diluted | $ 0.078 | $ 0.235 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | ||||
Farglory Life Insurance Co., Ltd. [Member] | |||||
Financial Services Revenues | $ 18,432,050 | $ 18,617,293 | |||
Financial Services Percentage | 23.00% | 26.00% | |||
Taiwan Life Insurance Co., Ltd [Member] | |||||
Financial Services Revenues | [1] | $ 11,024,333 | $ 9,309,759 | ||
Financial Services Percentage | 14.00% | [1] | 13.00% | ||
TransGlobe Life Insurance Inc [Member] | |||||
Financial Services Revenues | $ 10,280,105 | $ 8,168,837 | |||
Financial Services Percentage | 13.00% | 11.00% | |||
Fubon Life Insurance Co., Ltd [Member] | |||||
Financial Services Revenues | [2] | ||||
Financial Services Percentage | [2] | [1] | |||
[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 ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | |||
Accounts Receivable, Net | $ 0 | ||||
Farglory Life Insurance Co., Ltd. [Member] | |||||
Accounts Receivable, Net | $ 3,139,404 | $ 3,430,661 | |||
Percentage Of Accounts Receivable | 24.00% | 26.00% | |||
Taiwan Life Insurance Co., Ltd [Member] | |||||
Accounts Receivable, Net | [1] | $ 2,578,590 | $ 2,192,668 | ||
Percentage Of Accounts Receivable | 20.00% | 17.00% | [1] | ||
TransGlobe Life Insurance Inc [Member] | |||||
Accounts Receivable, Net | $ 2,381,181 | $ 1,811,401 | |||
Percentage Of Accounts Receivable | 18.00% | 14.00% | |||
Fubon Life Insurance Co., Ltd [Member] | |||||
Accounts Receivable, Net | [2] | ||||
Percentage Of Accounts Receivable | [1] | [2] | |||
[1] | Taiwan Life Insurance Co., Ltd. was formerly known as CTBC Life Insurance Co., Ltd. | ||||
[2] | Revenue for the year ended had not exceeded 190% or more of the consolidated revenue. |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | |||
Operating activities | $ 3,907,452 | $ 5,906,923 | ||
Investing activities | (4,301,227) | (14,435,727) | [1] | |
Financing activities | 5,487,587 | 2,506,795 | [1] | |
Foreign currency translation | $ (397,605) | 1,577,935 | [1] | |
Net change in cash, cash equivalents, and restricted cash and equivalents | [1] | (4,695,506) | ||
Legacy GAAP [Member] | ||||
Operating activities | 5,906,923 | |||
Investing activities | (14,435,727) | |||
Financing activities | 2,506,795 | |||
Foreign currency translation | 1,577,935 | |||
Net change in cash, cash equivalents, and restricted cash and equivalents | (4,444,074) | |||
Restatement Adjustment [Member] | ||||
Operating activities | 251,432 | |||
Investing activities | 0 | |||
Financing activities | 0 | |||
Foreign currency translation | 0 | |||
Net change in cash, cash equivalents, and restricted cash and equivalents | $ 251,432 | |||
[1] | The reported amounts have been revised to incorporate the effect of reclassification made to prior year consolidated financial statements. Refer to Note 27 of 2017 Form 10-K. |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) | 1 Months Ended | 12 Months Ended | |||||||
Jan. 17, 2011 | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2018USD ($)¥ / shares | Dec. 31, 2017USD ($) | Dec. 31, 2016 | Jan. 01, 2019 | Dec. 31, 2018TWD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018HKD ($) | |
Disclosure of Summary Of Significant Accounting Policies [Line Items] | |||||||||
Probability percentage expected to be realized upon tax settlement | 50.00% | 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, Uninsured Amount | $ 250,000 | $ 250,000 | |||||||
Common Stockholders Equity Interest Par Value | (per share) | $ 0.16 | $ 1 | |||||||
Long-term Investments | $ 2,477,558 | $ 2,477,558 | $ 1,399,762 | ||||||
Variable Interest Entity Activity Between VIE And Entity Expense Percentage | 90.00% | ||||||||
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% | ||||||
Debt Instrument, Term | 10 years | ||||||||
Marketing and Advertising Expense | $ 749,563 | $ 386,858 | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares | 45,935 | ||||||||
Subsequent Event [Member] | |||||||||
Disclosure of Summary Of Significant Accounting Policies [Line Items] | |||||||||
Lessor, Operating Lease, Term of Contract | 12 months | ||||||||
Credit Concentration Risk [Member] | |||||||||
Disclosure of Summary Of Significant Accounting Policies [Line Items] | |||||||||
Cash, FDIC Insured Amount | $ 1,751,000 | 1,751,000 | 1,512,000 | ||||||
Cash, Uninsured Amount | 44,289,000 | 44,289,000 | 33,949,000 | ||||||
Genius Insurance Broker Co., Ltd [Member] | |||||||||
Disclosure of Summary Of Significant Accounting Policies [Line Items] | |||||||||
Long-term Investments | $ 1,257,485 | $ 1,257,485 | $ 1,296,039 | ||||||
Taiwan | |||||||||
Disclosure of Summary Of Significant Accounting Policies [Line Items] | |||||||||
Cash, FDIC Insured Amount | $ 3,000,000 | ||||||||
HONG KONG | |||||||||
Disclosure of Summary Of Significant Accounting Policies [Line Items] | |||||||||
Cash, FDIC Insured Amount | ¥ | ¥ 500,000 | ||||||||
CHINA | |||||||||
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] | |||||||||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||||||||
Minimum [Member] | |||||||||
Disclosure of Summary Of Significant Accounting Policies [Line Items] | |||||||||
Finite-Lived Intangible Asset, Useful Life | 3 years |
CASH, CASH EQUIVALENTS AND RE_3
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS (Details) ¥ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018TWD ($) | Dec. 14, 2018USD ($) | Dec. 14, 2018TWD ($) | Jan. 08, 2018USD ($) | Jan. 08, 2018CNY (¥) | Dec. 31, 2017USD ($) | Dec. 22, 2017USD ($) | Dec. 22, 2017TWD ($) | Dec. 31, 2016USD ($) |
Cash in banks and on hand | $ 7,439,057 | $ 11,774,489 | ||||||||
Cash equivalents - re-purchase bonds | 0 | $ 160,000,000 | $ 1,229,563 | ¥ 8 | 2,697,628 | $ 2,697,628 | $ 80,000,000 | |||
Cash equivalents - commercial paper | 654,006 | $ 654,006 | $ 19,989,649 | 0 | ||||||
Time deposits - with original maturities less than three months (see Note 4) | 8,570,879 | 1,001,832 | ||||||||
Total cash and cash equivalents | 16,663,942 | 15,473,949 | ||||||||
Restricted cash equivalents | 3,320,802 | 0 | ||||||||
Restricted cash – long-term | 655,027 | 469,615 | ||||||||
Total cash, cash equivalents and restricted cash shown in the statements of cash flows | $ 20,639,771 | $ 15,943,564 | $ 20,387,638 |
CASH, CASH EQUIVALENTS AND RE_4
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS (Details Textual) ¥ in Millions | 1 Months Ended | ||||||||
Dec. 14, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018TWD ($) | Dec. 14, 2018TWD ($) | Jan. 08, 2018USD ($) | Jan. 08, 2018CNY (¥) | Dec. 31, 2017USD ($) | Dec. 22, 2017USD ($) | Dec. 22, 2017TWD ($) | |
Debt Instrument, Repurchase Amount | $ 0 | $ 160,000,000 | $ 1,229,563 | ¥ 8 | $ 2,697,628 | $ 2,697,628 | $ 80,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 0.38% | 0.38% | 0.38% | 0.38% | |||||
Commercial Paper, at Carrying Value | $ 654,006 | $ 654,006 | $ 19,989,649 | 0 | |||||
Maturity of Commercial Paper | 25 days | ||||||||
Commercial Paper Interest Rate Stated Percentage | 0.70% | 0.70% | |||||||
Restricted Cash and Cash Equivalents, Current | 3,320,802 | $ 0 | |||||||
Time Deposits [Member] | |||||||||
Restricted Cash and Cash Equivalents, Current | $ 3,302,802 | $ 101,500,000 |
TIME DEPOSITS AND STRUCTURED _3
TIME DEPOSITS AND STRUCTURED DEPOSITS (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | ||
Total time deposits | $ 34,311,043 | $ 22,471,945 |
Less: time deposits - original maturities less than three months (see Note 3) | (8,570,879) | (1,001,832) |
Time deposits - original maturities over three months but less than one year | 25,740,164 | 21,470,113 |
Structured deposits | $ 0 | $ 1,248,340 |
TIME DEPOSITS AND STRUCTURED _4
TIME DEPOSITS AND STRUCTURED DEPOSITS (Details Textual) ¥ in Millions | 2 Months Ended | 12 Months Ended | ||||||||
Mar. 29, 2018USD ($) | Mar. 29, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018TWD ($) | Jan. 08, 2018USD ($) | Jan. 08, 2018CNY (¥) | Dec. 31, 2017TWD ($) | Dec. 22, 2017USD ($) | Dec. 22, 2017TWD ($) | |
Restricted Cash | $ 5,404,889 | $ 1,641,905 | $ 165,200,000 | $ 50,000,000 | ||||||
Debt Instrument, Repurchase Amount | 0 | 2,697,628 | $ 160,000,000 | $ 1,229,563 | ¥ 8 | $ 2,697,628 | $ 80,000,000 | |||
Payments To Acquire Structured Deposits | $ 1,273,855 | ¥ 8 | ||||||||
Gain Loss On Valuation Of Structured Deposits | 0 | 30,211 | ||||||||
Structured Deposits | $ 0 | 1,248,340 | ||||||||
Debt Instrument, Description | 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 below. | |||||||||
Time Deposits, at Carrying Value | $ 34,311,043 | $ 22,471,945 | ||||||||
CTBC Bank [Member] | ||||||||||
Investment Interest Rate Range Start | 3.50% | |||||||||
Investment Interest Rate Range End | 5.10% |
OTHER CURRENT ASSETS (Details)
OTHER CURRENT ASSETS (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of Other Current Assets [Line Items] | ||
Loan receivable | $ 0 | $ 1,510,347 |
Prepaid rent and rent deposit | 322,130 | 213,688 |
Prepaid expenses | 327,083 | 87,947 |
Other receivable | 325,946 | 135,996 |
Refundable business tax | 149,028 | 150,221 |
Marketable securities | 30,800 | 33,381 |
Interest receivable | 691 | 94,887 |
Total other current assets | $ 1,155,678 | $ 2,226,467 |
OTHER CURRENT ASSETS (Details T
OTHER CURRENT ASSETS (Details Textual) | Jun. 14, 2017USD ($) | Jun. 14, 2017TWD ($) | Oct. 24, 2016USD ($) | Jun. 22, 2017USD ($) | Jun. 22, 2017TWD ($) | Dec. 31, 2018USD ($) | Aug. 17, 2018 | Dec. 31, 2017USD ($) | Dec. 31, 2017TWD ($) | Oct. 24, 2016TWD ($) |
Short-term Debt | $ 8,435,587 | $ 2,350,000 | ||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.38% | |||||||||
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 EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 2,914,694 | $ 2,375,470 |
Less: accumulated depreciation | (1,718,999) | (1,429,168) |
Total property, plant and equipment, net | 1,195,695 | 946,302 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 1,293,549 | 1,198,456 |
Office Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 112,366 | 103,025 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 910,168 | 761,522 |
Transportation equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 223,115 | 221,477 |
Other equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 375,496 | $ 90,990 |
PROPERTY, PLANT AND EQUIPMENT_4
PROPERTY, PLANT AND EQUIPMENT, NET (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Member] | ||
Depreciation | $ 375,588 | $ 325,212 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Software | $ 1,816,449 | $ 1,797,227 |
Less: accumulated amortization | (1,240,464) | (1,021,449) |
Total intangible assets, net | $ 575,985 | $ 775,778 |
INTANGIBLE ASSETS, NET (Detai_2
INTANGIBLE ASSETS, NET (Details 1) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Finite Lived Intangible Assets Future Amortization Expense [Line Items] | ||
2019 | $ 233,520 | |
2020 | 203,127 | |
2021 | 93,872 | |
2022 | 35,791 | |
2023 | 9,675 | |
Thereafter | 0 | |
Total | $ 575,985 | $ 775,778 |
INTANGIBLE ASSETS, NET (Detai_3
INTANGIBLE ASSETS, NET (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Computer Software, Intangible Asset [Member] | ||
Amortization of Intangible Assets | $ 261,392 | $ 235,972 |
LONG-TERM INVESTMENTS (Details)
LONG-TERM INVESTMENTS (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Long Term Investment [Line Items] | ||
Equity investments accounted for the cost method | $ 1,257,485 | $ 1,296,039 |
Government bonds held for available-for-sale | 99,834 | 103,723 |
REITs | 1,120,239 | 0 |
Total long-term investments | $ 2,477,558 | $ 1,399,762 |
LONG-TERM INVESTMENTS (Details
LONG-TERM INVESTMENTS (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Long Term Investment [Line Items] | ||
Investee Name | Genius Insurance Broker Co., Ltd | |
Investment Ownership Percentage | 15.64% | |
Long-Term Investment In Equity Amount | $ 1,257,485 | $ 1,296,039 |
LONG-TERM INVESTMENTS (Detail_2
LONG-TERM INVESTMENTS (Details 2) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Long Term Investment [Line Items] | |||
Cost or Amortized Cost | $ 103,723 | $ 94,506 | |
Gross Unrealized Gains (Losses) | $ 542 | 43,283 | |
US Treasury and Government [Member] | |||
Long Term Investment [Line Items] | |||
Cost or Amortized Cost | 99,834 | 103,723 | $ 94,506 |
Gross Unrealized Gains (Losses) | (3,889) | 9,217 | |
Total Fair Value | $ 99,834 | $ 103,723 |
LONG-TERM INVESTMENTS (Detail_3
LONG-TERM INVESTMENTS (Details Textual) | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2018TWD ($) | Dec. 31, 2017USD ($) | |
Long Term Investment [Line Items] | |||
Regulatory Requirements Minimum Amount | $ 98,152 | $ 3,000,000 | $ 101,161 |
Real Estate Investment Property, Net | 1,120,239 | $ 0 | |
Unrealized Gain (Loss) on Investments | $ 220,596 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Other Assets [Line Items] | ||
Rental deposits | $ 465,423 | $ 508,352 |
Register capital deposit | 872,544 | 1,075,867 |
Prepayments | 112,055 | 140,404 |
Deferred tax assets | 268,237 | 123,406 |
Goodwill | 31,651 | 31,651 |
Other | 14,728 | 82,231 |
Total other assets | $ 1,764,638 | $ 1,961,911 |
OTHER ASSETS (Details Textual)
OTHER ASSETS (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2014 | Dec. 31, 2018 | Dec. 31, 2017 | |
Registered Capital Value | $ 872,544 | $ 1,075,867 | |
Percentage Of Registered Capital Invested | 10.00% | ||
Business Acquisition, Percentage of Voting Interests Acquired | 51.00% | ||
Fair Value of Assets Acquired | $ 324,871 | $ 165,684 | |
Cuis [Member] | |||
Goodwill, Acquired During Period | $ 31,651 |
SHORT-TERM LOANS (Details)
SHORT-TERM LOANS (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Short-term Debt [Line Items] | ||
Line of Credit, Current | $ 8,200,000 | $ 2,350,000 |
Current portion of long-term loans (Note 14) | 235,587 | 0 |
Total short term loans | 8,435,587 | 2,350,000 |
Credit facility, FEIB [Member] | ||
Short-term Debt [Line Items] | ||
Line of Credit, Current | 2,000,000 | 0 |
Credit facility, KGI [Member] | ||
Short-term Debt [Line Items] | ||
Line of Credit, Current | 1,600,000 | 0 |
Credit facility, O-Bank [Member] | ||
Short-term Debt [Line Items] | ||
Line of Credit, Current | 3,600,000 | 1,400,000 |
Credit facility, CTBC [Member] | ||
Short-term Debt [Line Items] | ||
Line of Credit, Current | $ 1,000,000 | $ 950,000 |
SHORT-TERM LOANS (Details Textu
SHORT-TERM LOANS (Details Textual) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||
Feb. 27, 2019USD ($) | Jan. 30, 2019USD ($) | Oct. 26, 2018 | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018TWD ($) | Dec. 28, 2018USD ($) | Dec. 27, 2018USD ($) | Dec. 25, 2018USD ($) | Dec. 07, 2018USD ($) | Nov. 13, 2018USD ($) | Nov. 09, 2018USD ($) | Oct. 12, 2018USD ($) | Oct. 11, 2018USD ($) | Sep. 21, 2018USD ($) | Sep. 19, 2018USD ($) | Sep. 14, 2018USD ($) | Sep. 12, 2018USD ($) | Sep. 07, 2018USD ($) | Aug. 17, 2018USD ($) | Aug. 10, 2018USD ($) | Jul. 20, 2018USD ($) | Jul. 13, 2018USD ($) | Jun. 22, 2018USD ($) | Jun. 15, 2018USD ($) | Jun. 12, 2018USD ($) | Mar. 12, 2018USD ($) | Dec. 28, 2017USD ($) | Dec. 26, 2017USD ($) | Dec. 11, 2017USD ($) | Nov. 17, 2017USD ($) | Sep. 21, 2017USD ($) | |
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||
Short-term Debt | $ 8,435,587 | $ 8,435,587 | $ 2,350,000 | |||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.38% | |||||||||||||||||||||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 2,000,000 | |||||||||||||||||||||||||||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR rate plus a margin of 0.9% | |||||||||||||||||||||||||||||||||
Interest Expense, Short-term Borrowings | 105,536 | 1,531 | ||||||||||||||||||||||||||||||||
Repayments of Short-term Debt | 28,450,000 | $ 22,199 | ||||||||||||||||||||||||||||||||
O Bank [Member] | ||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||
Short-term Debt | $ 1,400,000 | $ 1,400,000 | $ 1,400,000 | $ 800,000 | $ 600,000 | |||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 2.89% | 2.89% | 2.53% | 2.70% | 2.35% | |||||||||||||||||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | 1,500,000 | 1,500,000 | ||||||||||||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 4,000,000 | $ 4,000,000 | ||||||||||||||||||||||||||||||||
Debt Instrument, Description of Variable Rate Basis | TAIFX3 rate plus a margin of 0.5% | |||||||||||||||||||||||||||||||||
Repayments of Lines of Credit | $ 500,000 | 900,000 | ||||||||||||||||||||||||||||||||
Cash Collateral for Borrowed Securities | 4,492,078 | $ 4,492,078 | $ 137,300,000 | |||||||||||||||||||||||||||||||
CTBC Bank [Member] | ||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 1,000,000 | |||||||||||||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,500,000 | $ 1,500,000 | ||||||||||||||||||||||||||||||||
CTBC Bank [Member] | Subsequent Event [Member] | ||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||
Repayments of Short-term Debt | $ 250,000 | $ 750,000 | ||||||||||||||||||||||||||||||||
FEIB [Member] | ||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||
Debt Instrument, Description of Variable Rate Basis | TAIFX3 rate plus a margin of 0.85% | |||||||||||||||||||||||||||||||||
Cash Collateral for Borrowed Securities | 2,434,163 | $ 2,434,163 | 74,400,000 | |||||||||||||||||||||||||||||||
KGI Commercial Bank Co Ltd [Member] | ||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||
Cash Collateral for Borrowed Securities | 1,799,450 | 1,799,450 | $ 55,000,000 | $ 1,600,000 | ||||||||||||||||||||||||||||||
Loan Two [Member] | ||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||
Short-term Debt | $ 900,000 | $ 1,500,000 | ||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 2.90% | |||||||||||||||||||||||||||||||||
Loan Three [Member] | ||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||
Short-term Debt | $ 1,200,000 | $ 2,400,000 | ||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.75% | 3.60% | ||||||||||||||||||||||||||||||||
Loan Four [Member] | ||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||
Short-term Debt | $ 500,000 | $ 1,000,000 | ||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.45% | |||||||||||||||||||||||||||||||||
Loan Five [Member] | ||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||
Short-term Debt | $ 500,000 | $ 1,000,000 | ||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.39% | 3.38% | ||||||||||||||||||||||||||||||||
Loan Six [Member] | ||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||
Short-term Debt | $ 500,000 | $ 1,000,000 | ||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.37% | |||||||||||||||||||||||||||||||||
Loan Seven [Member] | ||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||
Short-term Debt | $ 500,000 | $ 500,000 | $ 1,000,000 | |||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.68% | 3.65% | 3.60% | |||||||||||||||||||||||||||||||
Loan Eight [Member] | ||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||
Short-term Debt | $ 2,000,000 | |||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.40% | |||||||||||||||||||||||||||||||||
Loan Nine [Member] | ||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||
Short-term Debt | $ 2,000,000 | |||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.95% | |||||||||||||||||||||||||||||||||
Loan Ten [Member] | ||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||
Short-term Debt | $ 950,000 | |||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.30% | |||||||||||||||||||||||||||||||||
Loan Eleven [Member] | ||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||
Short-term Debt | $ 1,000,000 | |||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.26% | |||||||||||||||||||||||||||||||||
Loan Twelve [Member] | ||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||
Short-term Debt | $ 1,000,000 | |||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.26% | |||||||||||||||||||||||||||||||||
Loan Thirteen [Member] | ||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||
Short-term Debt | $ 3,000,000 | $ 3,000,000 | ||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.26% | 3.26% | 3.26% | |||||||||||||||||||||||||||||||
Loan Fourteen [Member] | ||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||
Short-term Debt | $ 1,000,000 | |||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.10% | |||||||||||||||||||||||||||||||||
Loan Fifteen [Member] | KGI Commercial Bank Co Ltd [Member] | ||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||
Short-term Debt | $ 1,600,000 | |||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.41% |
INCOME TAX PAYABLE (Details)
INCOME TAX PAYABLE (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Taxes Payable [Line Items] | ||
Total tax payable | $ 2,606,469 | $ 3,508,790 |
Less: short-term | 1,599,146 | 3,508,790 |
Income tax payable – long-term (Note 19) | 1,007,323 | 0 |
Taiwan Tax [Member] | ||
Taxes Payable [Line Items] | ||
Total tax payable | 1,416,540 | 3,232,996 |
USA Tax [Member] | ||
Taxes Payable [Line Items] | ||
Total tax payable | 1,131,307 | 0 |
PRC Tax [Member] | ||
Taxes Payable [Line Items] | ||
Total tax payable | 7,590 | 270,267 |
Hong Kong Tax [Member] | ||
Taxes Payable [Line Items] | ||
Total tax payable | $ 51,032 | $ 5,527 |
COMMISSIONS PAYABLE TO SALES _3
COMMISSIONS PAYABLE TO SALES PROFESSIONALS (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Commissions payable to sales professionals | $ 8,014,480 | $ 6,415,071 |
TW [Member] | ||
Commissions payable to sales professionals | 7,602,595 | 6,206,269 |
Prc [Member] | ||
Commissions payable to sales professionals | 411,885 | 208,802 |
H K [Member] | ||
Commissions payable to sales professionals | $ 0 | $ 0 |
COMMISSIONS PAYABLE TO SALES _4
COMMISSIONS PAYABLE TO SALES PROFESSIONALS (Details Textual) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Accrued Sales Commission, Current | $ 8,014,480 | $ 6,415,071 |
OTHER CURRENT LIABILITIES (Deta
OTHER CURRENT LIABILITIES (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of Other Current Liabilities [Line Items] | ||
Unearned revenue - current (Note 15) | $ 1,028,256 | $ 1,237,684 |
Payroll payable and other benefits | 1,360,790 | 1,309,281 |
Accrued bonus | 2,320,445 | 1,730,278 |
Accrued business tax and tax withholdings | 893,391 | 835,410 |
Other accrued liabilities | 1,745,959 | 1,051,112 |
Total other current liabilities | $ 7,348,841 | $ 6,163,765 |
LONG-TERM LOANS (Details)
LONG-TERM LOANS (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Total loans | $ 235,587 | $ 248,986 |
Less: current portion (Note 10) | (235,587) | 0 |
Total long-term loans | 0 | 248,986 |
Loan A [Member] | ||
Total long-term loans | 123,611 | 130,641 |
Loan B [Member] | ||
Total long-term loans | $ 111,976 | $ 118,345 |
LONG-TERM LOANS (Details Textua
LONG-TERM LOANS (Details Textual) | May 15, 2016 | Jul. 20, 2016 | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 22, 2017 |
Long-term Debt | $ 2,537,072 | $ 4,842,240 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 0.38% | 0.38% | 0.38% | ||||
Loan B [Member] | |||||||
Long-term Debt | $ 111,976 | 118,345 | ¥ 770,000 | ¥ 770,000 | |||
Interest Expense, Debt | 20,737 | ||||||
Loan C [Member] | |||||||
Interest Expense, Debt | 18,450 | ||||||
Loan A [Member] | |||||||
Debt Instrument, Maturity Date | May 15, 2019 | ||||||
Long-term Debt | $ 123,611 | $ 130,641 | ¥ 850,000 | ¥ 850,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | ||||||
Loan E [Member] | |||||||
Debt Instrument, Maturity Date | Jul. 20, 2019 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% |
OTHER LIABILITIES (Details)
OTHER LIABILITIES (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Unearned revenue - AIATW | $ 2,056,513 | $ 4,239,130 |
Due to previous shareholders of AHFL | 480,559 | 480,559 |
Deferred tax liabilities | 0 | 122,551 |
Total other liabilities | $ 2,537,072 | $ 4,842,240 |
OTHER LIABILITIES (Details 1)
OTHER LIABILITIES (Details 1) | 12 Months Ended | |||||||
Dec. 31, 2018USD ($) | Dec. 31, 2018TWD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017TWD ($) | Dec. 31, 2016TWD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016TWD ($) | ||
Revenue Amount | $ 372,650 | $ 11,228,600 | $ 1,731,048 | $ 52,621,159 | $ 12,855,000 | |||
Refund Amount | $ 690,537 | $ 20,478,333 | ||||||
Strategic Alliance Agreement [Member] | ||||||||
Execution Fees | 250,000,000 | |||||||
Revenue Amount | 63,849,759 | |||||||
Refund Amount | 79,959,764 | |||||||
Revenue VAT Amount | 3,192,487 | |||||||
Refund VAT Amount | $ 3,997,990 | |||||||
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 | [4] | 11,228,600 | ||||||
Refund Amount | [4] | 20,199,971 | ||||||
Revenue VAT Amount | 561,429 | |||||||
Refund VAT Amount | $ 1,010,000 | |||||||
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 different 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 $892,742 (NTD 27,137,958), net of Value-Added Tax (“VAT”) in 2017 due to uncertainty resolved after Amendment 3 went effective. Besides, on December 3, 2015 and February 23, 2016, the Company refunded the amounts of $160,573 (NTD4,761,905), net of VAT, and $530,056 (NTD15,719,185), net of VAT, to AIATW, respectively, due to the portion of performance sales targets not met during the first contract year based on original agreement and earlier amendments. | |||||||
[2] | For the year ended December 31, 2016, the Company recognized the second contract year’s revenue amount of $422,883 (NTD 12,855,000), net of VAT, and refunded the amount of $690,537 (NTD 20,478,333), net of VAT, due to uncertainty resolved after Amendment 3 went effective. | |||||||
[3] | For the year ended December 31, 2017, the Company recognized the third contract year’s revenue amount of $415,423 (NTD12,628,201), net of VAT, and refund amount of $633,955 (NTD18,800,370), net of VAT, for the same contract period based on the calculation of VONB and 13-month persistency. | |||||||
[4] | For the year ended December 31, 2018, the Company estimated to recognize the fourth contract year’s revenue amount of $391,223 (NTD11,788,229), net of VAT, and refund the amount of $651,816 (NTD19,640,341), net of VAT, for the same contract period based on the calculation of VONB and 13-month persistency. The revenue recorded and refund amounts were trued up to $412,230 (NTD 12,068,571) and $661,286 (NTD 19,360,000), respectively, for the year ended December 31, 2018 based on notice received from AIATW. |
OTHER LIABILITIES (Details Text
OTHER LIABILITIES (Details Textual) | Jun. 14, 2017TWD ($) | Jun. 10, 2013TWD ($) | Jan. 31, 2018USD ($) | Jan. 31, 2018TWD ($) | Apr. 20, 2016TWD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018TWD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017TWD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016TWD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2019TWD ($) | Mar. 27, 2019USD ($) | Mar. 27, 2019TWD ($) | Dec. 31, 2018TWD ($) | Dec. 31, 2017TWD ($) | Dec. 31, 2016TWD ($) | Feb. 23, 2016USD ($) | Feb. 23, 2016TWD ($) | Dec. 03, 2015USD ($) | Dec. 03, 2015TWD ($) | Jun. 10, 2013USD ($) | Jun. 10, 2013TWD ($) |
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Deferred Revenue, Noncurrent | $ 2,056,513 | $ 4,239,130 | ||||||||||||||||||||||
Customer Refund Liability, Noncurrent | $ 690,537 | $ 20,478,333 | ||||||||||||||||||||||
Deferred Revenue, Current | 1,028,256 | 1,237,684 | ||||||||||||||||||||||
Due to Officers or Stockholders | $ 480,559 | $ 15,000,000 | $ 480,559 | $ 15,000,000 | ||||||||||||||||||||
Deferred Revenue, Revenue Recognized | 372,650 | $ 11,228,600 | 1,731,048 | $ 52,621,159 | $ 12,855,000 | |||||||||||||||||||
Basic Business Promotion Fees | $ 33,000,000 | |||||||||||||||||||||||
First Year [Member] | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Basic Business Promotion Fees | 50,000,000 | |||||||||||||||||||||||
Second Year [Member] | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Basic Business Promotion Fees | $ 35,000,000 | |||||||||||||||||||||||
Service Agreements [Member] | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Expected Consulting Service Fee Per Year | $ 4,000,000 | |||||||||||||||||||||||
Expected Aggregate Consulting Service Fee Five Year | $ 20,000,000 | |||||||||||||||||||||||
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] | ||||||||||||||||||||||||
Deferred Revenue, Revenue Recognized | $ 422,883 | |||||||||||||||||||||||
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 | ||||||||||||||||||||||
Strategic Alliance Agreement [Member] | Fourth Year [Member] | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Customer Refund Liability, Noncurrent | 651,816 | $ 19,640,341 | ||||||||||||||||||||||
Deferred Revenue, Revenue Recognized | 391,223 | 11,788,229 | ||||||||||||||||||||||
Farglory [Member] | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Repayment related to Contract Termination | $ 603,729 | $ 17,904,000 | ||||||||||||||||||||||
AIATW [Member] | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Deferred Revenue, Noncurrent | 2,056,513 | 4,239,130 | ||||||||||||||||||||||
Customer Refund Liability, Noncurrent | 661,286 | $ 19,360,000 | $ 530,056 | $ 15,719,185 | $ 160,573 | $ 4,761,905 | ||||||||||||||||||
Deferred Revenue, Current | 1,028,256 | $ 1,237,684 | ||||||||||||||||||||||
Deferred Revenues Recognized | $ 412,230 | $ 12,068,571 |
PREFERRED STOCK (Details Textua
PREFERRED STOCK (Details Textual) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 28, 2011 |
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | |
Preferred stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 | $ 0.00001 |
Preferred Stock, Shares Outstanding | 1,000,000 | 1,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 1,000,000 | 1,000,000 | |
Maximum [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 100,000,000 | ||
Minimum [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 30,000,000 | ||
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) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | 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% | |
Statutory Reserves | $ 7,299,123 | $ 5,781,008 |
NONCONTROLLING INTERESTS (Detai
NONCONTROLLING INTERESTS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Non-Controlling Interests [Line Items] | |||
Noncontrolling Interests | $ 16,351,044 | $ 13,735,656 | $ 9,771,542 |
Net Income (Loss) | 3,045,241 | 3,023,227 | |
Other Comprehensive Income (Loss) | $ (429,854) | $ 940,887 | |
Law Enterprise [Member] | |||
Non-Controlling Interests [Line Items] | |||
% of Non-controlling Interests | 34.05% | 34.05% | |
Noncontrolling Interests | $ (72,557) | $ (243,240) | 17,386 |
Net Income (Loss) | 193,308 | (307,217) | |
Other Comprehensive Income (Loss) | $ (22,625) | $ 46,591 | |
Law Broker [Member] | |||
Non-Controlling Interests [Line Items] | |||
% of Non-controlling Interests | 34.05% | 34.05% | |
Noncontrolling Interests | $ 16,149,662 | $ 13,900,341 | 9,621,159 |
Net Income (Loss) | 2,655,344 | 3,387,038 | |
Other Comprehensive Income (Loss) | $ (406,023) | $ 892,144 | |
PFAL [Member] | |||
Non-Controlling Interests [Line Items] | |||
% of Non-controlling Interests | 49.00% | 49.00% | |
Noncontrolling Interests | $ 436,742 | $ 228,079 | 232,414 |
Net Income (Loss) | 208,918 | (3,817) | |
Other Comprehensive Income (Loss) | $ (255) | $ (518) | |
MKI [Member] | |||
Non-Controlling Interests [Line Items] | |||
% of Non-controlling Interests | 49.00% | 49.00% | |
Noncontrolling Interests | $ (2,630) | $ (2,117) | (1,569) |
Net Income (Loss) | (513) | (548) | |
Other Comprehensive Income (Loss) | $ 0 | $ 0 | |
PA Taiwan [Member] | |||
Non-Controlling Interests [Line Items] | |||
% of Non-controlling Interests | 49.00% | 49.00% | |
Noncontrolling Interests | $ (157,762) | $ (145,442) | (95,448) |
Net Income (Loss) | (11,789) | (52,169) | |
Other Comprehensive Income (Loss) | $ (531) | $ 2,175 | |
PTC Nanjing [Member] | |||
Non-Controlling Interests [Line Items] | |||
% of Non-controlling Interests | 49.00% | 49.00% | |
Noncontrolling Interests | $ (2,411) | $ (1,965) | $ (2,400) |
Net Income (Loss) | (26) | (60) | |
Other Comprehensive Income (Loss) | $ (420) | $ 495 |
INCOME TAX (Details)
INCOME TAX (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Current | $ 3,773,803 | $ 3,426,326 |
Deferred | (163,631) | 87,391 |
Total | 3,610,172 | 3,513,717 |
Federal [Member] | ||
Current | 1,227,243 | 0 |
Deferred | 0 | 0 |
Total | 1,227,243 | 0 |
State [Member] | ||
Current | 0 | 0 |
Deferred | 0 | 0 |
Total | 0 | 0 |
Foreign [Member] | ||
Current | 2,546,560 | 3,426,326 |
Deferred | (163,631) | 87,391 |
Total | $ 2,382,929 | $ 3,513,717 |
INCOME TAX (Details 1)
INCOME TAX (Details 1) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets | ||
Net operating loss carry-forward | $ 847,023 | $ 874,934 |
Others | 268,237 | 123,406 |
Total | 1,115,260 | 998,340 |
Valuation allowance | (847,023) | (874,934) |
Deferred tax assets - noncurrent | 268,237 | 123,406 |
Deferred tax liabilities - noncurrent | $ 0 | $ 122,551 |
INCOME TAX (Details 2)
INCOME TAX (Details 2) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Income Tax [Line Items] | ||
US statutory rate | 21.00% | 34.00% |
Tax rate difference | (1.00%) | (18.00%) |
Tax base difference | 0.00% | 0.00% |
Income tax on undistributed earnings | 4.00% | 0.00% |
Loss in subsidiaries | 3.00% | 3.00% |
Un-deductible and non-taxable items | 0.00% | 7.00% |
True up of prior year income tax | 3.00% | 0.00% |
Withholding tax | 10.00% | 0.00% |
Effective tax rate | 40.00% | 26.00% |
INCOME TAX (Details Textual)
INCOME TAX (Details Textual) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Income Tax [Line Items] | |||
Tax per financial statements | 40.00% | 26.00% | |
Tax Basis Percentage On Revenue | 10.00% | ||
Additional Income Tax Rate On Undistributed Earnings | 10.00% | ||
Deferred Tax Liabilities, Net, Current | $ 0 | $ 122,551 | |
Deferred Tax Assets, Other | $ 268,237 | $ 123,406 | |
Effective Income Tax Rate Reconciliation, At Federal Statutory Income Tax Rate | 21.00% | 34.00% | |
Income Tax Expense (Benefit) | $ 3,610,172 | $ 3,513,717 | |
Undistributed Earnings, Diluted | 1,199,195 | ||
Accrued Income Taxes, Noncurrent | 1,007,323 | 0 | |
Accrued Income Taxes, Current | $ 1,599,146 | $ 3,508,790 | |
Law Enterprise [Member] | |||
Schedule of Income Tax [Line Items] | |||
Reversal Of Undistributed Earnings Tax Liability | $ 902,479 | ||
Action Holdings Financial Limited [Member] | |||
Schedule of Income Tax [Line Items] | |||
Withholding Tax Liability | $ 877,746 | ||
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% | 100.00% | |
Subsidiary [Member] | |||
Schedule of Income Tax [Line Items] | |||
Tax per financial statements | 25.00% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Due to related parties, Total | $ 996,565 | $ 801,017 | |
Mr.Mao [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties, Total | [1] | 391,311 | 409,054 |
Ms. Lu [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties, Total | [1] | 0 | 161,380 |
I Health Management [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties, Total | [2] | 0 | 17,703 |
Ms Chao [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties, Total | [3] | 597,631 | 210,752 |
Others [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties, Total | $ 7,623 | $ 2,128 | |
[1] | Amounts due to Mr. Mao and Ms. Lu bear no interest and are payable on demand. | ||
[2] | 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 the Company’s management level. | ||
[3] | On May 10, 2016, Law Broker entered into an engagement agreement (“Engagement Agreement”) with Hui-Hsien Chao (“Ms. Chao”), pursuant to which, she serves as the general manager of Law Broker 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 March 13, 2017, Law Broker and Ms. Chao entered into an amendment to the Engagement above-mentioned to specify 1) Ms. Chao’s pension calculation assumptions and start date, and 2) the non-competition provision start date. As of December 31, 2018 and 2017, the Company had current liabilities amounted $597,631 and $210,752, respectively, related to accrued bonus for Ms. Chao. For the year ended December 31, 2018 and 2017, the Company recorded $398,801 and $123,362 bonus expense in accordance with the Agreement. |
RELATED PARTY TRANSACTIONS (D_2
RELATED PARTY TRANSACTIONS (Details Textual) | Feb. 01, 2018USD ($) | Feb. 01, 2018TWD ($) | Dec. 07, 2016USD ($) | Dec. 07, 2016TWD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018TWD ($) | Jul. 01, 2016USD ($) | Jul. 01, 2016TWD ($) | May 02, 2016USD ($) | May 02, 2016TWD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Related Party Transaction [Line Items] | ||||||||||||
Revenues | $ 78,667,731 | $ 72,848,444 | ||||||||||
Accounts Receivable, Net | $ 0 | 0 | ||||||||||
General and Administrative Expense | 17,854,923 | 14,959,384 | ||||||||||
Operating Leases, Rent Expense, Net | $ 680 | $ 20,476 | ||||||||||
Director [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Sponsor Fees | $ 60,204 | $ 1,800,000 | ||||||||||
General and Administrative Expense | 59,368 | 59,214 | ||||||||||
Mr. Mao and Ms. Lu [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Bonus Expense | 398,801 | 123,362 | ||||||||||
I Health Management Corp [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Sponsor Fees | $ 42,000 | $ 1,275,000 | ||||||||||
Cost of Goods and Services Sold | 13,315 | 17,703 | ||||||||||
Yuli Broker [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Rental Income, Nonoperating | 7,317 | |||||||||||
Yuli Investment [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Operating Leases, Income Statement, Minimum Lease Revenue | $ 610 | $ 18,000 | ||||||||||
Rental Income, Nonoperating | 1,138 | 1,128 | ||||||||||
Apex Biz Solution [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Operating Leases, Income Statement, Minimum Lease Revenue | $ 660 | $ 20,000 | ||||||||||
Revenues | $ 31,449 | 50,053 | ||||||||||
Accounts Receivable, Net | $ 17,231 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) | Dec. 31, 2018USD ($) |
Other Commitments [Line Items] | |
2019 | $ 2,043,635 |
2020 | 818,792 |
2021 | 369,340 |
2022 | 131,568 |
2023 | 121,303 |
Thereafter | 0 |
Total | $ 3,484,638 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Other Commitments [Line Items] | ||
Operating Leases, Rent Expense | $ 2,720,365 | $ 2,537,348 |
FINANCIAL RISK MANAGEMENT AND_3
FINANCIAL RISK MANAGEMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Total cash, cash equivalents, time deposits, restricted cash and cash equivalents | $ 46,379,935 | $ 37,413,677 |
Marketable securities: | ||
Mutual Fund | 30,800 | 33,381 |
Structured Deposits | 0 | 1,248,340 |
Long-term investment: | ||
Government bonds (available-for-sale debt securities) | 99,834 | 103,723 |
REITs | 1,120,239 | |
Liabilities | ||
Short-term loans | 8,435,587 | 2,350,000 |
Long-term loans | 0 | 248,986 |
Due to previous shareholders of AHFL | 480,559 | 480,559 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets | ||
Total cash, cash equivalents, time deposits, restricted cash and cash equivalents | 46,379,935 | 37,413,677 |
Marketable securities: | ||
Mutual Fund | 30,800 | 33,381 |
Structured Deposits | 0 | 0 |
Long-term investment: | ||
Government bonds (available-for-sale debt securities) | 0 | 0 |
REITs | 1,120,239 | |
Liabilities | ||
Short-term loans | 0 | 0 |
Long-term loans | 0 | |
Due to previous shareholders of AHFL | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets | ||
Total cash, cash equivalents, time deposits, restricted cash and cash equivalents | 0 | |
Marketable securities: | ||
Mutual Fund | 0 | 0 |
Structured Deposits | 0 | 0 |
Long-term investment: | ||
Government bonds (available-for-sale debt securities) | 99,834 | 103,723 |
REITs | 0 | |
Liabilities | ||
Short-term loans | 8,435,587 | 2,350,000 |
Long-term loans | 0 | |
Due to previous shareholders of AHFL | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets | ||
Total cash, cash equivalents, time deposits, restricted cash and cash equivalents | 0 | |
Marketable securities: | ||
Mutual Fund | 0 | 0 |
Structured Deposits | 0 | 1,248,340 |
Long-term investment: | ||
Government bonds (available-for-sale debt securities) | 0 | 0 |
REITs | 0 | |
Liabilities | ||
Short-term loans | 0 | 0 |
Long-term loans | 239,624 | |
Due to previous shareholders of AHFL | $ 457,396 | $ 465,950 |
FINANCIAL RISK MANAGEMENT AND_4
FINANCIAL RISK MANAGEMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 1) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Opening balance as of January 1, 2018 | $ 1,248,340 |
Transfer into/ out of Level 3 | 0 |
Total gains (losses) for the period included in earnings | 68,646 |
Total gains (losses) for the period included in other comprehensive income | 0 |
Purchases | 13,696,531 |
Settlements | (14,993,795) |
Foreign exchange gains (losses) | (19,722) |
Ending balance as of December 31, 2018 | $ 0 |
FINANCIAL RISK MANAGEMENT AND_5
FINANCIAL RISK MANAGEMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Structured Deposits | $ 0 | $ 1,248,340 |
Unrealized Gain losses On Valuation Of Structured Deposits | $ 0 | $ 30,211 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue | ||
Total revenue | $ 78,667,731 | $ 72,848,444 |
Income (loss) from operations | ||
Total income (loss) from operations | 7,937,259 | 12,743,420 |
Net income (loss) | ||
Total net income (loss) | 5,416,646 | 10,177,865 |
Elimination adjustment | ||
Revenue | ||
Total revenue | (32,306) | (68,276) |
Income (loss) from operations | ||
Total income (loss) from operations | 143,764 | 141,410 |
Net income (loss) | ||
Total net income (loss) | 13,591 | 7,010 |
Taiwan | ||
Revenue | ||
Total revenue | 67,515,966 | 62,147,136 |
Income (loss) from operations | ||
Total income (loss) from operations | 7,362,949 | 12,109,928 |
Net income (loss) | ||
Total net income (loss) | 4,906,605 | 10,050,593 |
PRC | ||
Revenue | ||
Total revenue | 10,465,147 | 10,467,488 |
Income (loss) from operations | ||
Total income (loss) from operations | (48,080) | 489,017 |
Net income (loss) | ||
Total net income (loss) | 70,087 | 128,052 |
Hong Kong | ||
Revenue | ||
Total revenue | 718,924 | 302,096 |
Income (loss) from operations | ||
Total income (loss) from operations | 478,626 | 3,065 |
Net income (loss) | ||
Total net income (loss) | $ 426,363 | $ (7,790) |
SEGMENT REPORTING (Details 1)
SEGMENT REPORTING (Details 1) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Long-lived assets | ||
Total long-lived assets | $ 1,195,695 | $ 946,302 |
Reportable assets | ||
Total reportable assets | 68,881,844 | 59,273,243 |
Capital Investment | ||
Capital Investment | 696,028 | 382,473 |
Elimination adjustment | ||
Long-lived assets | ||
Total long-lived assets | 0 | 0 |
Reportable assets | ||
Total reportable assets | (44,150,214) | (48,910,083) |
Capital Investment | ||
Capital Investment | 0 | 0 |
Taiwan | ||
Long-lived assets | ||
Total long-lived assets | 1,092,576 | 836,347 |
Reportable assets | ||
Total reportable assets | 100,220,270 | 96,399,321 |
Capital Investment | ||
Capital Investment | 641,873 | 348,028 |
PRC | ||
Long-lived assets | ||
Total long-lived assets | 102,383 | 109,597 |
Reportable assets | ||
Total reportable assets | 11,796,388 | 11,140,124 |
Capital Investment | ||
Capital Investment | 53,158 | 34,445 |
Hong Kong | ||
Long-lived assets | ||
Total long-lived assets | 736 | 358 |
Reportable assets | ||
Total reportable assets | 1,015,400 | 643,881 |
Capital Investment | ||
Capital Investment | $ 997 | $ 0 |
SUBSEQUENT EVENTS (Details Text
SUBSEQUENT EVENTS (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||
Mar. 28, 2019 | Mar. 27, 2019 | Mar. 21, 2019 | Feb. 27, 2019 | Jan. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 28, 2019 | Dec. 22, 2017 | |
Proceeds from Short-term Debt | $ 34,300,000 | $ 2,350,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.38% | 0.38% | |||||||
Subsequent Event [Member] | Ahfl [Member] | |||||||||
Business Combination, Consideration Transferred | $ 15,000,000 | ||||||||
Subsequent Event [Member] | CTBC Bank [Member] | |||||||||
Proceeds from Short-term Debt | $ 650,000 | $ 100,000 | $ 450,000 | $ 200,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.26% | 3.75% |