Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2022shares | |
Document and Entity Information | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Transition Report | false |
Document Period End Date | Mar. 31, 2022 |
Entity File Number | 000-54884 |
Entity Registrant Name | CHINA UNITED INSURANCE SERVICE, INC. |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 30-0826400 |
Entity Address, Address Line One | 7F, No. 311 Section 3 |
Entity Address, Address Line Two | Nan-King East Road |
Entity Address, City or Town | Taipei City |
Entity Address, Country | TW |
Entity Address, Postal Zip Code | 105405 |
City Area Code | 8862 |
Local Phone Number | 87126958 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 30,286,199 |
Entity Central Index Key | 0001512927 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 20,595,428 | $ 18,234,350 |
Time deposits | 68,935,263 | 64,299,176 |
Accounts receivable | 18,315,305 | 26,761,678 |
Contract assets | 457,917 | 0 |
Marketable securities | 832,990 | |
Other current assets | 1,173,425 | 1,207,496 |
Total current assets | 110,310,328 | 110,502,700 |
Right-of-use assets under operating leases | 6,594,686 | 6,449,182 |
Property and equipment, net | 1,823,211 | 2,061,755 |
Intangible assets, net | 359,759 | 333,118 |
Long-term investments | 2,594,564 | 2,696,812 |
Restricted cash - noncurrent | 13,650 | 88,282 |
Deferred tax assets | 698,750 | 909,032 |
Other assets | 4,733,347 | 4,740,640 |
TOTAL ASSETS | 127,128,295 | 127,781,521 |
Current liabilities | ||
Commission payable to sales professionals | 9,840,217 | 14,003,541 |
Short-term loans | 19,589,013 | 18,835,932 |
Income tax payable - current | 5,087,907 | 3,893,047 |
Operating lease liabilities - current | 3,312,917 | 3,059,329 |
Due to related parties | 36,844 | 50,531 |
Other current liabilities | 13,826,954 | 13,997,603 |
Total current liabilities | 51,693,852 | 53,839,983 |
Income tax payable - noncurrent | 539,636 | 539,636 |
Operating lease liabilities - noncurrent | 3,250,652 | 3,298,089 |
Net defined benefit liabilities - noncurrent | 376,522 | 389,198 |
Other liabilities | 524,109 | 541,754 |
TOTAL LIABILITIES | 56,384,771 | 58,608,660 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, par value $0.00001, 10,000,000 authorized, 1,000,000 issued and outstanding as of March 31, 2022 and December 31, 2021, respectively | 10 | 10 |
Common stock, par value $0.00001, 100,000,000 authorized, 30,286,199 issued and outstanding as of March 31, 2022 and December 31, 2021, respectively | 303 | 303 |
Additional paid-in capital | 9,296,953 | 9,296,953 |
Statutory reserves | 11,101,064 | 11,101,064 |
Retained earnings | 16,635,245 | 13,690,368 |
Accumulated other comprehensive income | 2,593,189 | 4,664,848 |
Total stockholders' equity attributable to China United's shareholders | 39,626,764 | 38,753,546 |
Noncontrolling interests | 31,116,760 | 30,419,315 |
TOTAL STOCKHOLDERS' EQUITY | 70,743,524 | 69,172,861 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 127,128,295 | $ 127,781,521 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||
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 | 30,286,199 | 30,286,199 |
Common stock, shares outstanding | 30,286,199 | 30,286,199 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||
Revenue | $ 30,980,523 | $ 30,530,117 |
Cost of revenue | 19,009,519 | 18,973,432 |
Gross profit | 11,971,004 | 11,556,685 |
Operating expenses: | ||
Selling | 684,150 | 579,777 |
General and administrative | 5,973,039 | 6,090,254 |
Total operating expense | 6,657,189 | 6,670,031 |
Income from operations | 5,313,815 | 4,886,654 |
Other income (expenses): | ||
Interest income | 104,977 | 83,998 |
Interest expenses | (52,335) | (42,470) |
Foreign currency exchange gains | 737,550 | 328,466 |
Other - net | 162,048 | 178,940 |
Total other income, net | 952,240 | 548,934 |
Income before income taxes | 6,266,055 | 5,435,588 |
Income tax expense | (1,581,897) | (1,398,806) |
Net income | 4,684,158 | 4,036,782 |
Less: net income attributable to noncontrolling interests | (1,739,281) | (1,626,396) |
Net income attributable to China United's shareholders | 2,944,877 | 2,410,386 |
Other comprehensive items, net of tax: | ||
Foreign currency translation loss | (3,113,495) | (1,191,299) |
Other | 0 | 364 |
Total other comprehensive loss | (3,113,495) | (1,190,935) |
Comprehensive income | 1,570,663 | 2,845,847 |
Less: comprehensive income attributable to noncontrolling interests | (697,445) | (1,263,321) |
Comprehensive income attributable to China United's shareholders | $ 873,218 | $ 1,582,526 |
Weighted average shares outstanding: | ||
Basic | 30,286,199 | 29,421,736 |
Diluted | 30,286,199 | 29,421,736 |
Earnings per share attributable to common stockholders of China United: | ||
Basic | $ 0.094 | $ 0.079 |
Diluted | $ 0.094 | $ 0.079 |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Common Stock | Preferred Stock | Additional Paid-in Capital | Statutory Reserves | Accumulated Other Comprehensive Loss | Retained Earnings | Parent | Noncontrolling Interests | Total |
Balance at Dec. 31, 2020 | $ 294 | $ 10 | $ 8,190,449 | $ 9,463,903 | $ 3,889,429 | $ 9,097,408 | $ 30,641,493 | $ 24,595,741 | $ 55,237,234 |
Balance (in shares) at Dec. 31, 2020 | 29,421,736 | 1,000,000 | |||||||
Foreign currency translation loss | (828,100) | (828,100) | (363,199) | (1,191,299) | |||||
Other comprehensive income | 240 | 240 | 124 | 364 | |||||
Net income | 2,410,386 | 2,410,386 | 1,626,396 | 4,036,782 | |||||
Balance at Mar. 31, 2021 | $ 294 | $ 10 | 8,190,449 | 9,463,903 | 3,061,569 | 11,507,794 | 32,224,019 | 25,859,062 | 58,083,081 |
Balance (in shares) at Mar. 31, 2021 | 29,421,736 | 1,000,000 | |||||||
Balance at Dec. 31, 2020 | $ 294 | $ 10 | 8,190,449 | 9,463,903 | 3,889,429 | 9,097,408 | 30,641,493 | 24,595,741 | 55,237,234 |
Balance (in shares) at Dec. 31, 2020 | 29,421,736 | 1,000,000 | |||||||
Balance at Dec. 31, 2021 | $ 303 | $ 10 | 9,296,953 | 11,101,064 | 4,664,848 | 13,690,368 | 38,753,546 | 30,419,315 | 69,172,861 |
Balance (in shares) at Dec. 31, 2021 | 30,286,199 | 1,000,000 | |||||||
Foreign currency translation loss | (2,071,659) | (2,071,659) | (1,041,836) | (3,113,495) | |||||
Net income | 2,944,877 | 2,944,877 | 1,739,281 | 4,684,158 | |||||
Balance at Mar. 31, 2022 | $ 303 | $ 10 | $ 9,296,953 | $ 11,101,064 | $ 2,593,189 | $ 16,635,245 | $ 39,626,764 | $ 31,116,760 | $ 70,743,524 |
Balance (in shares) at Mar. 31, 2022 | 30,286,199 | 1,000,000 |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 4,684,158 | $ 4,036,782 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 286,049 | 301,618 |
Amortization of right-of-use assets | 951,111 | 877,022 |
Amortization of bond premium | 58 | |
Gain on sales of financial assets | (140,913) | |
Loss on valuation of financial assets | 11,177 | 150,992 |
Loss on disposals of equipment | 4,368 | 77 |
Deferred income tax | 41,730 | 80,710 |
Unrealized foreign currency exchange (gains) | (228,109) | |
Net changes in operating assets and liabilities: | ||
Accounts receivable | 7,774,338 | 6,353,128 |
Contract assets | (468,333) | (98,867) |
Other current assets | (107,500) | 33,244 |
Other assets | 112,257 | (58,712) |
Commission payable to sales professionals | (3,799,212) | (2,154,109) |
Income tax payable | 1,327,928 | 1,171,156 |
Other current liabilities | (1,758,352) | (2,746,985) |
Other liabilities | (217,259) | |
Lease liabilities | (1,232,314) | (1,142,714) |
Net cash provided by operating activities | 7,599,296 | 6,445,228 |
Cash flows from investing activities: | ||
Purchases of marketable securities | (846,673) | |
Purchases of time deposits | (23,217,843) | (23,561,920) |
Proceeds from maturities of time deposits | 16,562,521 | 22,403,564 |
Proceeds from receipts in advance of disposal of a subsidiary | 2,316,652 | |
Proceeds from sales of marketable securities | 1,424,798 | |
Purchase of equipment | (69,500) | (57,520) |
Purchase of intangible assets | (76,637) | (9,780) |
Net cash (used in) provided by investing activities | (5,331,480) | 199,142 |
Cash flows from financing activities: | ||
Proceeds from short-term loans | 6,488,087 | 6,324,770 |
Repayment of short-term loans | (5,423,529) | (4,140,000) |
Repayment of related party borrowings | (9,789) | (13,627) |
Net cash provided by financing activities | 1,054,769 | 2,171,143 |
Foreign currency translation | (1,036,139) | (443,188) |
Net increase in cash, cash equivalents and restricted cash | 2,286,446 | 8,372,325 |
Cash, cash equivalents and restricted cash, beginning balance | 18,322,632 | 9,129,828 |
Cash, cash equivalents and restricted cash, ending balance | 20,609,078 | 17,502,153 |
SUPPLEMENTARY DISCLOSURE: | ||
Interest paid | 52,490 | 40,886 |
SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Lease liabilities arising from new right-of-use assets | $ 1,096,615 | $ 635,360 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 3 Months Ended |
Mar. 31, 2022 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | CHINA UNITED INSURANCE SERVICE, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Amount in USD) NOTE 1 – ORGANIZATION AND PRINCIPAL ACTIVITIES China United Insurance Service, Inc. (“China United” or “CUII”), its subsidiaries and variable-interest entity and its subsidiaries (collectively referred to herein as the “Company”) primarily engage in insurance brokerage and insurance agency services. The Company markets and sells to customers two broad categories of insurance products: life insurance products and property and casualty insurance products, both focused on meeting the particular insurance needs of individuals. The insurance products are underwritten by some of the leading insurance companies in Taiwan and China. The Company manages its business through aggregating them into three geographic operating segments, Taiwan, the PRC, and Hong Kong. The Company’s common stock currently trades over the counter under the ticker symbol “CUII” on the OTCQB. The corporate structure as of March 31, 2022 is as follows: On January 31, 2022, Genius Investment Consultant Co., Ltd (“GIC”), a subsidiary entity of CUII entered into a stock transfer agreement with AIlife International Investment Co., Ltd. (“AIlife”), pursuant to which GIC sold and transferred to AIlife 100% of its equity ownership in Joint Insurance Broker Co., Ltd. (“JIB”), a former wholly-owned subsidiary of GIC, resulting in AIlife owning 100% equity interest in JIB. Such exchange of equity interests between CUII’s subsidiaries are under common control of the Company and therefore, they were accounted for at the carrying amount of the equity interests transferred and there was no impact on consolidated financial statements as of and for the three months ended March 31, 2022. On February 25, 2022, Law Anhou Insurance Agency Co., Ltd. (“Law Anhou”), a contractually controlled entity of CUII entered into a Share Purchase Agreement with Jiangsu Law Insurance Brokerage Co., Ltd. (“Jiangsu Law”) and third-party buyers, pursuant to which Law Anhou shall sell and transfer 100% of its equity ownership in Jiangsu Law, a wholly owned subsidiary of Law Anhou to the following buyers: Xuzhou Guosheng Furui Asset Management Co., Ltd., Jiangsu Zhongbozhixin Financial Service Outsourcing Co., Ltd., and Xuzhou Xinrui Service Outsourcing Co., Ltd. Due to delays in the registration of shareholder change caused by the COVID-19, the control of Jiangsu Law has not been transferred as of March 31, 2022. Law Anhou has received the first installment of the contract $2,317,971 (RMB 14.7 million) which was recorded under other current liabilities as of March 31, 2022. The total assets as of March 31, 2022 and revenue from Jiangsu Law for the three months ended March 31, 2022 were 0.67% and 0.72%, respectively, which were immaterial to the Company’s consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of China United, its subsidiaries and variable interest entity and its subsidiaries as shown in the corporate structure in Note 1. All significant intercompany transactions and balances have been eliminated in consolidation. Certain reclassifications have been made to the consolidated financial statements for prior year to the current year’s presentation. Such reclassifications have no effect on net income and the cash flow statements operating activities as previously reported. Basis of Presentation The unaudited condensed consolidated financial statements presented herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Regulation S-X. Accordingly, the financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments, including normal recurring adjustments, considered necessary for a fair statement of the financial statements have been included. Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2021, which were included in the Company’s 2021 Annual Report on Form 10-K (“2021 Form 10-K”). The accompanying consolidated balance sheet as of December 31, 2021, has been derived from the Company’s audited consolidated financial statements as of that date. Use of Estimates The preparation of the Company’s unaudited condensed 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. Variable Interest Entities 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, China United, through its subsidiary, Zhengzhou Zhonglian Hengfu Business Consulting Co., Limited (“WFOE”), entered into Exclusive Business Cooperation Agreement (the “EBCA”), Power of Attorney, Option Agreement, and Share Pledge Agreement (collectively, the First VIE Agreements) on January 17, 2011 with Anhou and Anhou original shareholders so as to operate and conduct the insurance agency and brokerage business in the PRC. Pursuant to the EBCA, (a) WFOE has the right to provide Anhou with complete technical support, business support and related consulting services during the term of the EBCA; (b) 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 the EBCA, 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 the EBCA; (c) within 90 days after the end of each fiscal year Anhou shall pay an amount to WFOE equal to the shortfall, if any, of the aggregate net income of Anhou for such fiscal; (d) 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 the EBCA; and (e) the shareholders of Anhou have pledged all of their equity interests in Anhou to WFOE to guarantee Anhou’s performance of its obligations under the EBCA. The term of the EBCA is 10 years and may be extended and determined by WFOE prior to the expiration thereof, and Anhou shall accept such extended term unconditionally. On March 23, 2022, Anhou and WFOE entered into an amendment to the EBCA, pursuant to which the EBCA shall be automatic renewed for successive terms unless WFOE gives a 30-day notice to terminate such agreement, with each term being 10 years. To extend the business within the PRC, Anhou intended to increase its registered capital to RMB50 million (approximately $8 million) to meet the requirement of the China Insurance Regulatory Commission (the “CIRC”) so that it can set up new branches in any province beyond its current operations in China. China United increased the investment in Anhou through various loan agreements with the shareholders of Anhou. The aggregate funding provided by WFOE was RMB 40 million. Due to the capital increase, a series of variable interest agreements (the “Second VIE Agreements”), which include Power of Attorneys, Exclusive Option Agreements, Share Pledge Agreements, were signed on October 24, 2013 and entered 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 Second VIE Agreements, WFOE is considered the primary beneficiary of Anhou and has effective control over Anhou. Accordingly, the results of operations, assets and liabilities of Anhou and its subsidiaries (collectively, the “Consolidated Affiliated Entities” or the “CAE”) are consolidated from the earliest period presented. The Company reviews the VIE’s status on an annual basis and determine if any events have occurred that could cause its primary beneficiary status to change, which 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; and (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. For the three months ended March 31, 2022 and 2021, no event taken place that would change the Company’s primary beneficiary status. Marketable Securities The Company invests part of its excessive cash in equity securities and money market funds. Marketable securities represent trading securities bought and held primarily for sale in the near-term to generate income on short-term price differences and are stated at fair value. Realized and unrealized gains and losses are recorded in other income (expense). Accounts Receivable 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 March 31, 2022 and December 31, 2021. Revenue Recognition The Company’s revenue is derived from insurance agency and brokerage services with respect to life insurance and property and casualty insurance products. The Company, through its subsidiaries and variable interest entities, 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 core revenue recognition principle under ASC 606, the Company considers the contracts with insurance companies contain one performance obligation and consideration should be recorded when performance obligation is satisfied at point in time. 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 is approved by the respective insurance company. 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. For the first year commission (FYC), the Company recognizes the revenue when the individuals’ policies are effective. The Company makes the estimation amount to be entitled for annual performance and operating bonus which is based on the FYC. The Company makes an estimation on performance and operation bonus which are based on the accumulated FYC on quarterly basis, and make reconciliation between actual and estimation amount on annual basis. For the three months ended March 31, 2022 and 2021, the estimated revenue was approximately $2.8 million and $2.0 million, respectively. Others includes the contingent commissions for subsequent years, the bonus based on persistency ratio bonus, and service allowances, are considered highly susceptible to factors outside the company's influence and depend on the actions of third parties (i.e., the subsequent premiums paid by individual policyholders), and the uncertainty can be extended for many years. Considering the high uncertainties, the contingent commissions for subsequent years, the bonus based on persistency ratio, and service allowances will be recognized as revenue based on the actual amount received from the insurance companies after the uncertain event is resolved. For property and casualty insurance products, the Company recognizes the revenue when the individuals’ policies are effective. The revenue from property and casualty insurance products were 7.0% and 5.6% of total revenue for the three months ended March 31, 2022 and 2021, respectively. The Company is obligated to pay commissions to its sales professionals when an insurance policy becomes effective. The Company recognizes commission revenue granted from insurance companies on a gross basis, and the commissions paid to its sales professionals are recognized as cost of revenue. The Company enters into service agreements with insurance companies, which may give rise to contract assets and contract liabilities. When the timing of revenue recognition differs from the timing of payments made by insurance companies, the Company recognizes either contract assets (its performance precedes the billing date) or contract liabilities (customer payment is received in advance of performance). Foreign Currency Transactions China United’s financial statements are presented in U.S. dollars ($), which is the China United’s reporting and functional currency. The functional currencies of the China United’s subsidiaries are New Taiwan dollar (“NTD”), China yuan (“RMB”) and Hong Kong dollar (“HKD”). Each subsidiary maintains its financial records in its own functional currency. Transactions denominated in foreign currencies are measured at the exchange rates prevailing on the transaction dates. Monetary assets and liabilities denominated in foreign currencies are remeasured at the exchange rates prevailing at the balance sheet date. Non-monetary items that are measured in terms of historical cost in foreign currency are remeasured using the exchange rates at the dates of the initial transactions. Exchange gains and losses are included 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 unaudited condensed consolidated financial statements are as follows: Average Rate for the three months ended March 31, 2022 2021 (unaudited) (unaudited) Taiwan dollar (NTD) NTD 27.98355 NTD 28.06892 China yuan (RMB) RMB 6.34536 RMB 6.48199 Hong Kong dollar (HKD) HKD 7.80460 HKD 7.75690 United States dollar ($) $ 1.00000 $ 1.00000 Exchange Rate at March 31, 2022 (unaudited) December 31, 2021 Taiwan dollar (NTD) NTD 28.62003 NTD 27.68785 China yuan (RMB) RMB 6.34175 RMB 6.35877 Hong Kong dollar (HKD) HKD 7.83033 HKD 7.79713 United States dollar ($) $ 1.00000 $ 1.00000 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 treated as 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 FASB ASC Topic 260, “Earnings Per Share.” As of March 31, 2022 and 2021, the Company does not have any potentially dilutive instrument. The following is a reconciliation of the income and share data used in the basic and diluted EPS computations for the three months ended March 31, 2022 and 2021 under the two-class method. Three Months Ended March 31, 2022 2021 Numerator: Common stock Preferred stock Common stock Preferred stock Allocation of net income attributable to the Company $ 2,850,750 $ 94,127 $ 2,331,154 $ 79,232 Denominator: Weighted average shares of the Company’s common/preferred stock outstanding - basic 30,286,199 1,000,000 29,421,736 1,000,000 Basic and diluted earnings per share $ 0.094 $ 0.094 $ 0.079 $ 0.079 The participating rights (liquidation and dividend rights) of the holders of the Company’s common stock and preferred stock are identical, except with respect to voting right. As a result, and in accordance with ASC 260, the undistributed earnings for each year are allocated based on the contractual participation rights of the common stock and preferred stock as if the earnings for the year had been distributed. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. 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. - In determining the appropriate levels, the Company performs a detailed analysis of the assets and liabilities that are measured and reported on a fair value basis. At each reporting period, all assets and liabilities for which the fair value measurement is based on significant unobservable inputs are classified as Level 3. The following table summarize financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021: March 31, 2022 Fair Value Carrying Level 1 Level 2 Level 3 Value Assets Marketable securities : Stock and mutual funds $ 832,990 $ — $ — $ 832,990 Long-term investments: REITs 1,204,320 — — 1,204,320 Total assets measured at fair value $ 2,037,310 $ — $ — $ 2,037,310 December 31, 2021 Fair Value Carrying Level 1 Level 2 Level 3 Value Assets Long-term investments: REITs $ 1,261,482 $ — $ — $ 1,261,482 Total assets measured at fair value $ 1,261,482 $ — $ — $ 1,261,482 The carrying amounts of current financial assets and liabilities in the consolidated balance sheets for cash equivalents, time deposits, and restricted cash equivalents approximate fair value due to the short-term duration of those instruments, which are considered level 2 fair value measurement. 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. Concentration of Risk The Company maintains cash with banks in the USA, People’s Republic of China (“PRC”), Hong Kong, and Taiwan. Should any bank holding the Company’s cash become insolvent, or if the Company is otherwise unable to withdraw funds, the Company would lose all or part of its cash deposit with that bank; however, the Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. In Taiwan, a depositor has up to 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 deposit and accounts receivable. As of March 31, 2022 and December 31, 2021, approximately $2,643,000 and $2,712,000 of the Company’s cash and cash equivalents, time deposits, and registered capital deposits held by financial institutions, was insured, and the remaining balance of approximately $90,445,000 and $83,446,000, 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 three months ended March 31, 2022 and 2021, the Company’s revenues from sale of insurance policies underwritten by these companies were: Three Months Ended March 31, 2022 2021 (unaudited) (unaudited) % of Total % of Total Amount Revenue Amount Revenue TransGlobe Life Insurance Inc. $ 7,680,425 25 % $ 6,600,629 22 % Taiwan Life Insurance Co., Ltd. 4,406,584 14 % 7,231,458 24 % Farglory Life Insurance Co., Ltd. 3,431,308 11 % 4,519,841 15 % As of March 31, 2022 and December 31, 2021, the Company’s accounts receivable from these companies were: March 31, 2022 (unaudited) December 31, 2021 % of Total % of Total Accounts Accounts Amount Receivable Amount Receivable TransGlobe Life Insurance Inc. $ 5,217,313 28 % $ 8,569,590 32 % Taiwan Life Insurance Co., Ltd 3,520,479 19 % 4,483,343 17 % Farglory Life Insurance Co., Ltd. 2,049,294 11 % 2,729,673 10 % The Company’s operations are in the PRC, Hong Kong and Taiwan. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic, foreign currency exchange and legal environments in the PRC, Hong Kong and Taiwan, and by the state of each economy. The Company’s results of operations 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. 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 that 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 measured as 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 are classified as interest expense and penalties are classified in selling, general and administrative expenses in the statements of operations and other comprehensive income (loss). New Accounting Pronouncements and Other Guidance New accounting pronouncements not yet adopted Credit Losses In June 2016, the FASB issued ASU No. 2016-13, (FASB ASC Topic 326), Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments which amends the current accounting guidance and requires the use of the new forward-looking “expected loss” model, rather than the “incurred loss” model, which requires all expected losses to be determined based on historical experience, current conditions and reasonable and supportable forecasts. This guidance amends the accounting for credit losses for most financial assets and certain other instruments including trade and other receivables, held-to-maturity debt securities, loans and other instruments. In November 2019, the FASB issued ASU No. 2019-10 to postpone the effective date of ASU No. 2016-13 for public business entities eligible to be smaller reporting companies defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company believes the adoption of ASU No. 2016-13 will not have a material impact on the Company’s consolidated financial statements. Reference Rate Reform In March 2020, the FASB issued ASU No. 2020–04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The pronouncement provides temporary optional expedients and exceptions to the current guidance on contract modifications and hedge accounting to ease the financial reporting burden related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. The guidance was effective for all entities upon issuance and generally can be applied to applicable contract modifications through December 31, 2022. The Company is currently evaluating the effects of the guidance on the Company’s consolidated financial statements and related disclosures. 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. |
CASH, CASH EQUIVALENTS AND REST
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 3 Months Ended |
Mar. 31, 2022 | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | NOTE 3 – CASH, CASH EQUIVALENTS AND RESTRICTED CASH Cash, cash equivalents and restricted cash consisted of the following as of March 31, 2022 and December 31, 2021: March 31, 2022 (unaudited) December 31, 2021 Cash and cash equivalents: Cash on hand and in banks $ 20,595,428 $ 18,234,350 Restricted cash – noncurrent 13,650 88,282 Total cash, cash equivalents and restricted cash shown in the statements of cash flows $ 20,609,078 $ 18,322,632 Noncurrent 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. |
TIME DEPOSITS
TIME DEPOSITS | 3 Months Ended |
Mar. 31, 2022 | |
TIME DEPOSITS | |
TIME DEPOSITS | NOTE 4 – TIME DEPOSITS March 31, 2022 (unaudited) December 31, 2021 Total time deposits $ 72,718,699 $ 71,161,391 Less: Time deposits – with original maturities less than three months (3,783,436) (6,862,215) Time deposits – original maturities over three months but less than one year $ 68,935,263 $ 64,299,176 Time Deposits Pledged as Collateral The Company had a total of $24,767,563 (NTD 708.8 million) and $23,811,616 (NTD 659.3 million) restricted time deposits, respectively, as of March 31, 2022 and December 31, 2021. As of March 31, 2022 and December 31, 2021, time deposits of $34,941 (NTD 1 million) and $36,117 (NTD 1 million) were pledged as collateral for the Company’s credit card, respectively. In addition, the Company had time deposits of $24,732,622 and $23,775,499 pledged as collateral for short-term loans, respectively, as of March 31, 2022 and December 31, 2021. See Note 6. |
LONG-TERM INVESTMENTS
LONG-TERM INVESTMENTS | 3 Months Ended |
Mar. 31, 2022 | |
LONG-TERM INVESTMENTS. | |
LONG-TERM INVESTMENTS | NOTE 5 – LONG-TERM INVESTMENTS As of March 31, 2022 and December 31, 2021, the Company’s long-term investments consisted of the following: March 31, 2022 (unaudited) December 31, 2021 Equity investments under cost method $ 1,390,244 $ 1,435,330 REITs 1,204,320 1,261,482 Total long-term investments $ 2,594,564 $ 2,696,812 Equity Investments under cost method using the measurement alternative March 31, 2022 (unaudited) December 31, 2021 Investment Investment Investee Ownership Amount Ownership Amount Genius Insurance Broker Co., Ltd (“GIB”) 11.73 % $ 1,342,938 11.73 % $ 1,388,151 Hainan Haoguan Yucheng Technology Service LLP (“HAINAN”) 9.99 % 47,306 9.99 % 47,179 On February 13, 2015, the Company and AHFL, a wholly owned subsidiary of the Company, entered into an acquisition agreement with Mr. Chwan Hau Li, the selling shareholder of GHFL. Subsequent to the acquisition, GHFL became a wholly-owned subsidiary of the Company which in turn holds approximately 15.64% issued and outstanding shares of Genius Insurance Broker Co., Ltd. (“Genius Broker”). Accordingly, the acquisition was accounted for as an asset acquisition of Genius Broker, which is an equity investment under cost method using the measurement alternative acquired by the Company. The total paid-in capital with GIB changed from NTD 45 million to NTD 60 million due to capital increase taken place on August 14, 2020. GIC didn’t subscribe the new shares during the capital increase. As a result, the equity interest of GIB owned by GIC reduced from 15.64% to 11.73%. A new investee in the investment ownership was due to the Company’s investment in HAINAN in 2021. HAINAN operates projects for insurance platforms, which contain insurance product centralized procurement, share service platform of sub-hierarchy distribution channel, and IoT business requirement. The Company invested HAINAN for RMB 300,000, or 9.99%, to engage in the qualification of supplier membership and distributor membership. The change in carrying value of equity investment resulted from the fluctuation of exchange rates. REITs REITs are valued based on quoted market prices in the active market of Taiwan. The fair value of REITs as of March 31, 2022 and December 31, 2021 were $1,204,320 and $1,261,482, respectively. Unrealized losses included in earnings for assets held at the end of the reporting periods were $16,441 and $20,489 for the three months ended March 31, 2022 and 2021, respectively. For the three months ended March 31, 2022 and 2021, no other-than temporary impairment were recorded related to the long-term investments. |
SHORT-TERM LOANS
SHORT-TERM LOANS | 3 Months Ended |
Mar. 31, 2022 | |
SHORT-TERM LOANS | |
SHORT-TERM LOANS | NOTE 6 – SHORT-TERM LOANS The Company’s short-term loans consisted of the following as of March 31, 2022 and December 31, 2021: March 31, 2022 (unaudited) December 31, 2021 Debt Collateral Debt Collateral Line of Credit Collateral balance value balance value $8.7 million (NTD 250 million) revolving line of credit with Cathay United Bank Company Limited (“CUB”); the loan bears interest at the higher of CUB's adjustable rates for loans plus a margin of 0.41% or the 1-month TAIBOR rate plus a margin of 0.8% and matures on May 4, 2022. Time deposits $ 5,223,615 $ 5,258,556 $ 9,011,172 $ 9,047,289 $4.0 million revolving line of credit with O-Bank; the loan bears interest at the TAIFX3 rate plus a margin of 0.5% and matures on December 2, 2022. Time deposits 4,000,000 4,821,799 4,000,000 4,984,135 $6.0 million revolving line of credit with Taishin International Bank (“TSIB”); the loan bears interest at the TSIB’s cost of funds plus a margin of 0.7% and matures on May 31, 2022. Time deposits 2,200,000 3,065,801 2,200,000 3,065,801 $2.5 million revolving line of credit with Far Eastern International Bank Time deposits 1,850,000 2,865,127 1,850,000 2,961,588 $3.1 million revolving line of credit with KGI; the loan bears interest at the TAIFX Fixing rate plus a margin of 0.9% and matures on May 18, 2022. Time deposits 1,540,000 2,357,961 1,540,000 2,481,926 $7.0 million (NTD 200 million) revolving line of credit with Taishin International Bank (“TSIB”); the loan bears interest at the TSIB’s cost of funds plus a margin of 0.625% and matures on May 31, 2022. Time deposits 3,721,171 3,721,171 234,760 234,760 $3.0 million revolving line of credit with E. Sun Bank (“E. Sun”); the loan bears interest at the TAIFX3 rate plus a margin of 0.4% and matures on November 30, 2022. Time deposits 600,000 1,000,000 — 1,000,000 $7.0 million (NTD 200 million) revolving line of credit with E. Sun Bank (“E. Sun”); the loan bears interest at the E. Sun’s adjustable rates for loans plus a margin of 0.1% and matures on October 15, 2022. Time deposits 454,227 1,642,207 — — $ 19,589,013 $ 24,732,622 $ 18,835,932 $ 23,775,499 Borrowings under the revolving credit agreements are generally due 90 days or less. Total interest expenses for short-term loans incurred were $52,335 and $42,470, respectively, for the three months ended March 31, 2022 and 2021, respectively. |
COMMISSIONS PAYABLE TO SALES PR
COMMISSIONS PAYABLE TO SALES PROFESSIONALS | 3 Months Ended |
Mar. 31, 2022 | |
COMMISSIONS PAYABLE TO SALES PROFESSIONALS | |
COMMISSIONS PAYABLE TO SALES PROFESSIONALS | NOTE 7 – COMMISSIONS PAYABLE TO SALES PROFESSIONALS Commissions payable to sales professionals consisted of the following as of March 31, 2022 and December 31, 2021: March 31, 2022 (unaudited) December 31, 2021 Taiwan $ 9,625,456 $ 13,793,343 PRC 214,761 210,198 Total commissions payable to sales professionals $ 9,840,217 $ 14,003,541 Commissions payable to sales professionals are usually settled within twelve months. |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 3 Months Ended |
Mar. 31, 2022 | |
OTHER CURRENT LIABILITIES | |
OTHER CURRENT LIABILITIES | NOTE 8 – OTHER CURRENT LIABILITIES Other current liabilities were as follows, as of March 31, 2022 and December 31, 2021: March 31, 2022 (unaudited) December 31, 2021 Accrued bonus $ 5,463,307 $ 6,645,496 Payroll payable and other benefits 1,742,262 2,188,074 Accrued business tax and tax withholdings 1,323,088 1,903,039 Proceeds from receipts in advance of disposal of a subsidiary 2,317,971 — Execution fees payable – AIA(Note 10) 1,153,039 1,191,858 Other accrued liabilities 1,827,287 2,069,136 Total other current liabilities $ 13,826,954 $ 13,997,603 Accrued Bonus The Company’s foreign subsidiaries have various bonus plans, which provide cash awards to employees based upon their performance, and had accrued bonus of $2,932,572 and $4,059,901, respectively, related to cash awards to employees as of March 31, 2022 and December 31, 2021. The Company has other compensation plans solely provided by Law Broker to its officers. The compensation plans eligible to Law Broker’s officers include a surplus bonus based on a percentage of income after tax and other performance bonuses such as retention and non-competition. For the three months ended March 31, 2022 and 2021, the bonus expenses to Law Broker’s officers under the compensation plans were $72,905 and $91,896, respectively. As of March 31, 2022 and December 31, 2021, the Company had accrued bonus of $2,530,735 and $2,585,595 payable within next 12 months, respectively, related to the compensation plans for Law Broker’s officers. See Note 15 for additional information of agreements with Law Broker’s officers. |
OTHER LIABILITIES
OTHER LIABILITIES | 3 Months Ended |
Mar. 31, 2022 | |
OTHER LIABILITIES | |
OTHER LIABILITIES | NOTE 9 – OTHER LIABILITIES The Company’s other liabilities consisted of the following as of March 31, 2022 and December 31, 2021: March 31, 2022 (unaudited) December 31, 2021 Due to previous shareholders of AHFL $ 524,109 $ 541,754 Total other liabilities $ 524,109 $ 541,754 Due to Previous Shareholders of AHFL Due to previous shareholders of AHFL is the entire remaining balance payable of the acquisition cost. 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 will make the cash payment in the amount of NTD15 million on or prior to March 31, 2021. In March 2021, the Company entered a seventh amendment with the selling shareholders in negotiation with the previous shareholders of AHFL to extend the repayment date to March 31, 2024. As of March 31, 2022 and December 31, 2021, the amount due to previous shareholders of AHFL were $524,109 and $541,754, respectively. |
CONTRACTS WITH CUSTOMERS
CONTRACTS WITH CUSTOMERS | 3 Months Ended |
Mar. 31, 2022 | |
CONTRACTS WITH CUSTOMERS | |
CONTRACTS WITH CUSTOMERS | NOTE 10 – CONTRACTS WITH CUSTOMERS Information about accounts receivable and contract assets from contracts with customers is as follows: March 31, 2022 (unaudited) December 31, 2021 Accounts receivable $ 18,315,305 $ 26,761,678 Contract assets 457,917 — Contract assets are the Company’s conditional rights to consideration for completed performance obligation and are in relation to the performance bonus to be rewarded based on the annual performance. The Company recognizes the contingent commission as a contract asset when the performance obligation is fulfilled, and the Company has not had the unconditional rights to the payment. As of March 31, 2022 and December 31, 2021, the Company had $457,917 and nil of contract assets, respectively. Contract with AIATW On June 10, 2013, AHFL entered into a Strategic Alliance Agreement (the “Alliance Agreement”) with AIA International Limited Taiwan Branch (“AIATW”), the purpose of which is to promote life insurance products provided by AIATW within Taiwan by insurance agencies or brokerage companies affiliated with AHFL or China United. Pursuant to the terms of the Alliance Agreement, AIATW paid AHFL an execution fee, which was recorded as revenue upon fulfilling certain criteria over the original term of the Alliance Agreement from June 1, 2013 to May 31, 2018. From 2014 to 2017, AHFL has entered into three amendments to the Alliance Agreement with AIATW to further revise certain terms and conditions in the Alliance Agreement, including the extension of the expiration date from May 31, 2018 to December 31, 2021. Pursuant to the Third Amendment to the Alliance Agreement (the “Amendment 3”), both AHFL and AIATW agreed to adjust certain terms and conditions set forth in this amendment, some of which included (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 Amendment 3, AIATW reserves the right to offset such amount against the amount payable by it to the Company; and (iv) upon the termination of the Alliance Agreement and its amendments pursuant to the Section 8.2 of the Alliance Agreement, both parties agreed to calculate the amount to be returned or repaid, as applicable, based on the past and current contract years. The Company shall return the basic business execution fees at NTD 50 million for the first contract year, NTD 35 million for the second contract year, and NTD 33 million for each contract year thereafter within one month after the termination. Accordingly, for the last contract year of 2021, no revenue was recognized because the Company failed to meet the targets set forth in the Amendment 3 and therefore, the Company shall refund the basic business execution fees of NTD 33 million based on the calculation of VONB and 13-month persistency for the same contract period. As of March 31, 2022 and December 31, 2021, the basic business execution fees of $1,153,039 and $1,191,858 were payable and recorded under other current liabilities, respectively. On March 15, 2022, AHFL entered into the Fourth Amendment to the Alliance Agreement (the “Amendment 4”), which, among other things, extended the expiration date of the Alliance Agreement to December 31, 2031. Pursuant to Amendment 4, the sales targets for the remaining contract term under the Alliance Agreement shall be changed by reference to (i) the amount of VONB and (ii) the 13-month persistency ratio as set forth therein, provided that to the extent any underlying insurance contract is revoked, invalidated or terminated and premiums are refunded to such policyholder, the amount of the related VONB shall be correspondingly reduced. Amendment 4 provides that AIATW shall pay the strategic alliance business promotion fee of NTD 50 million to AHFL; however, AHFL shall be required to return certain portions of or all of the business promotion fees within thirty (30) days of receipt of notice provided by AIATW if AFHL fails to meet certain goals set in Table 2 and Table 3 of Amendment 4. The primary factor under formula one focuses on the annual and/or accumulated achievement rate(s), while the primary factor under formula two focuses on the 13-month persistency ratio(s), among others. The Company recognized the revenue related to AIATW of $22,135 (NTD 619,428) and nil, net of VAT, for the three months ended March 31, 2022 and 2021, respectively. |
LEASE
LEASE | 3 Months Ended |
Mar. 31, 2022 | |
LEASE | |
LEASE | NOTE 11 –LEASE The Company has operating leases for its offices with lease terms ranging from one to five years. The Company recorded its operating lease cost of $1,370,536 and $1,020,873 for the three months ended March 31, 2022 and 2021. Operating lease right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. As of March 31, 2022 and December 31, 2021, operating lease right-of-use assets and lease liabilities were as follows: March 31, 2022 (unaudited) December 31, 2021 Right-of-use assets under operating leases $ 6,594,686 $ 6,449,182 Operating lease liabilities – current 3,312,917 3,059,329 Operating lease liabilities – noncurrent 3,250,652 3,298,089 Lease term and discount rate March 31, 2022 (unaudited) December 31, 2021 Weighted average remaining lease term Operating lease 2.23 years 2.31 years Weighted average discount rate Operating lease 3.19 % 2.80 % Supplemental cash flow information related to leases Three Months Ended March 31, 2022(unaudited) 2021(unaudited) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows related to operating leases $ 1,232,314 $ 1,142,714 Amortization of right-of-use assets under operating leases 951,111 877,022 The minimum future lease payments as of March 31, 2022 are as follows: Amount 2022 (remainder of year) 2,705,341 2023 2,577,470 2024 1,292,693 2025 178,775 2026 12,074 Thereafter — Total minimum lease payments 6,766,353 Less: Interest (202,784) Present value of future minimum lease payments $ 6,563,569 |
NONCONTROLLING INTERESTS
NONCONTROLLING INTERESTS | 3 Months Ended |
Mar. 31, 2022 | |
NONCONTROLLING INTERESTS | |
NONCONTROLLING INTERESTS | NOTE 12 – NONCONTROLLING INTERESTS Noncontrolling interests consisted of the following as of March 31, 2022 and December 31, 2021: % of Non- Other March 31, controlling December 31, Net Income Comprehensive 2022 Name of Entity Interest 2021 (Loss) (Loss) (unaudited) Law Enterprise 34.05 % $ (676,166) $ (82,974) $ (5,870) (765,010) Law Broker 34.05 % 31,016,203 1,650,826 (1,018,942) 31,648,087 Uniwill 50.00 % 48,802 149,554 (16,158) 182,198 Rays 1.00 % (6,461) (55) — (6,516) PFAL 49.00 % 364,056 21,930 (866) 385,120 MKI 49.00 % (327,119) — — (327,119) Total $ 30,419,315 $ 1,739,281 $ (1,041,836) $ 31,116,760 % of Non- Other Impact from controlling December 31, Net Income Comprehensive Liquidation of December 31, Name of Entity Interest 2020 (Loss) Income (Loss) PA Taiwan 2021 Law Enterprise 34.05 % $ (414,957) $ (264,642) $ 3,433 $ — $ (676,166) Law Broker 34.05 % 25,177,272 5,444,673 394,258 — 31,016,203 Uniwill 50.00 % (421,035) 466,934 2,903 — 48,802 Rays 1.00 % (5,772) (689) — — (6,461) PFAL 49.00 % 423,978 (63,441) 3,519 — 364,056 MKI 49.00 % (732) (161,090) — (165,297) (327,119) PA Taiwan 49.00 % (163,013) 1,102 (3,386) 165,297 — Total $ 24,595,741 $ 5,422,847 $ 400,727 $ — $ 30,419,315 |
INCOME TAX
INCOME TAX | 3 Months Ended |
Mar. 31, 2022 | |
INCOME TAX | |
INCOME TAX | NOTE 13 – INCOME TAX The following table reconciles the Company’s statutory tax rates to effective tax rates for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 2021 (unaudited) (unaudited) US statutory rate 21 % 21 % Tax rate difference (2) % (2) % Change in valuation allowance 8 % 4 % Income tax on undistributed earnings 4 % 4 % Utilization of deferred tax assets not previously recognized (2) % (1) % Non-deductible and non-taxable items — % 1 % True up of prior year income tax — % (1) % Other (4) % — % Effective tax rate 25 % 26 % The Company’s income tax expense is mainly generated by its subsidiaries in Taiwan. The Company’s subsidiaries in Taiwan are governed by the Income Tax Law of Taiwan and subject to a statutory tax rate on income reported in the statutory financial statements at 20% and a tax on undistributed earnings at 5%. The Company had no plan to distribute earnings earned for the years ended December 2021 and 2020, and the tax on undistributed earnings on entities in Taiwan of 5% was estimated. As of March 31, 2022 and December 31, 2021, the Company had current tax payable of $4,904,891 and $3,703,412 for Taiwan income tax, respectively. WFOE and the Consolidated Affiliated Entities (“CAE”) in the 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. WFOE and CAE had no income tax expenses for the three months ended March 31, 2022 and 2021 due to the net operating losses generated in the previous years. The Company’s subsidiaries in Hong Kong are governed by the Inland Revenue Ordinance Tax Law and subject to two-tiered profits tax regime. The first HK$2 million assessable profits is taxed at 8.25% and any assessable profits over HK$2 million is taxed at 16.25%. As of March 31, 2022 and December 31, 2021, the Company had current tax payable of $3,137 and $9,756 for Hong Kong income tax. The 2017 Tax Act was enacted into law on December 22, 2017 and imposed 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. Based on the Company’s total post-1986 earnings and profits (“E&P”) that it previously deferred from U.S. income taxes, we recorded the one-time transition tax $1,199,195 in eight annual installments for the transition tax on undistributed earnings of non-U.S. subsidiaries during the year ended December 31, 2018. As of March 31, 2022 and December 31, 2021, the Company both had current tax payable of $179,879 and noncurrent tax payable of $539,636 for U.S. income tax. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2022 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 14 – RELATED PARTY TRANSACTIONS The following summarized the Company’s loans payable related parties as of March 31, 2022 and December 31, 2021: March 31, 2022 (unaudited) December 31, 2021 Due to Ms. Lu (A shareholder of Anhou) $ 25,654 $ 41,311 Others 11,190 9,220 Total $ 36,844 $ 50,531 Amounts due to Ms. Lu were borrowings from Ms. Lu to support Anhou’s business operation. The amounts were non-interesting bearing and payable on demand. Due to bonus to officer, please refer to Note 8; and due to AHFL previous shareholders, please refer to Note 9. There was no other material related party transactions other than those disclosed above. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES. | |
COMMITMENTS AND CONTINGENCIES | NOTE 15– COMMITMENTS AND CONTINGENCIES Operating Leases See future minimum annual lease payments in Note 11. Time Deposits Pledged as Collateral See time deposits pledged as collateral in Notes 4 and 6. Appointment agreement On December 21, 2018, Law Broker entered into an appointment agreement with Shu-Fen, Lee (“Ms. Lee”), pursuant to which, she served as the president of Law Broker from December 21, 2018 to December 20, 2021. Law Broker expects to extend Ms. Lee’s appointment agreement at the next meeting of the board of directors. Ms. Lee’s primary responsibilities included 1) overall business planning, 2) implementation of resolution of the shareholders' meeting or the board of directors, 3) the appointment and dismissal of the Law Broker’s employees and sales professionals, except for internal auditors, 4) financial management and application, 5) being the representative of Law Broker, 6) other matters assigned by the board of directors. According to the appointment agreement, Ms. Lee’s compensation plan included: 1) base salary, 2) managerial allowance, 3) surplus bonus based on 1.25% of Law Broker’s income after tax, and 4) annual year-end bonus. The renewed appointment agreement is expected to be signed in May 2022. For the three months ended March 31, 2022 and 2021, the Company has recorded the compensation expense of $72,905 and $62,208 under the appointment agreement, respectively. Engagement agreement On December 23, 2021, Law Broker entered into a new engagement agreement with Hui-Hsien Chao (“Ms. Chao”), pursuant to which she shall have served as the general manager of Law Broker from December 23, 2021 to December 22, 2024. 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 shall include: 1) execution, 2) long-term service fees and 3) non-competition. The payment of such bonuses will only occur upon satisfaction of certain conditions and subject to the terms in the engagement agreement. Ms. Chao has agreed to act as the general manager or equivalent position of Law Broker for a term of at least three years. For the three months ended March 31, 2022 and 2021, the Company has recorded the performance bonus expense of nil and $29,689 under the engagement agreement, respectively. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 3 Months Ended |
Mar. 31, 2022 | |
VARIABLE INTEREST ENTITIES | |
VARIABLE INTEREST ENTITIES | NOTE 16 –VARIABLE INTEREST ENTITIES The carrying amounts of the assets, liabilities and the results of operations of the VIE and its subsidiaries (i.e., Zhengzhou Zhonglia Hengfu Business Consulting Co., Limited and its subsidiaries) included in the Company’s consolidated balance sheets and statements of comprehensive loss after the elimination of intercompany balances and transactions among VIEs and their subsidiaries within the Company are as follows: March 31, 2022 (Amount in USD) (unaudited) December 31, 2021 ASSETS Current assets Cash and cash equivalents $ 2,808,564 $ 1,001,974 Accounts receivable and notes receivable 731,192 455,884 Other current assets 173,360 120,113 Total current assets 3,713,116 1,577,971 Right-of-use assets under operating leases 1,400,738 1,528,856 Property and equipment, net 209,016 199,056 Prepaid expenses - intangible assets 20,389 9,377 Long-term investments 47,306 47,179 Restricted cash – noncurrent 856 72,870 Registered capital deposits 1,103,796 1,100,842 Deferred tax assets — 74,709 Other assets 84,176 83,951 TOTAL ASSETS $ 6,579,393 $ 4,694,811 LIABILITIES Current liabilities Commissions payable to sales professionals $ 214,761 $ 210,198 Other current liabilities 3,312,953 1,117,738 Due to related parties - Ms. Lu (the shareholder of Law Anhou) 25,654 41,311 Total current liabilities 3,553,368 1,369,247 Operating lease liabilities - noncurrent 807,009 908,971 TOTAL LIABILITIES $ 4,360,377 $ 2,278,218 Three Months Ended March 31, (Amount in USD) 2022 2021 Revenue $ 1,347,816 $ 1,951,469 Net loss (201,946) (50,781) Net cash used in operating activities (472,033) (449,692) Net cash provided by (used in) investing activities 2,290,667 (7,292) Net cash used in financing activities (15,760) (7,714) The VIEs contributed $ 1,347,816 and $1,951,469 of the Company’s consolidated revenue for the three months ended March 31, 2022 and 2021, respectively, after elimination of inter-company transactions. As of March 31, 2022, there was no pledge or collateralization of the VIEs’ assets that can only be used to settle obligations of the VIEs, other than the share pledge agreements, restricted cash and registered capital deposits. Other than the amounts due to the Company and its non-VIE subsidiaries (which are eliminated upon consolidation), the creditors of the VIEs’ third-party liabilities did not have recourse to the general credit of the Company in normal course of business. The Company did not provide or intend to provide financial or other supports not previously contractually required to the VIEs during the years presented. |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 2022 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | NOTE 17 – 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 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 three months ended March 31, 2022 and 2021 were as follows: Three Months Ended March 31, (unaudited) (unaudited) 2022 2021 Geographical Areas Revenue Taiwan $ 30,505,357 $ 28,851,500 PRC 1,347,816 1,951,469 Hong Kong 82,822 110,985 Elimination adjustment (955,472) (383,837) Total revenue $ 30,980,523 $ 30,530,117 Income (loss) from operations Taiwan $ 5,213,523 $ 4,690,729 PRC (155,919) (3,918) Hong Kong 38,401 61,493 Elimination adjustment 217,810 138,350 Total income from operations $ 5,313,815 $ 4,886,654 Non operating income (expense) Taiwan $ 860,527 $ 587,469 PRC 256,585 96,152 Hong Kong 9,502 (118) Elimination adjustment (174,374) (134,569) Total non-operating income (expense) $ 952,240 $ 548,934 Net income Taiwan $ 4,570,169 $ 3,933,490 PRC 25,798 46,918 Hong Kong 44,756 56,312 Elimination adjustment 43,435 62 Total net income $ 4,684,158 $ 4,036,782 The geographical distribution of the Company’s financial information as of March 31, 2022 and December 31, 2021 were as follows: March 31, 2022 (unaudited) December 31, 2021 Geographical Areas Reportable assets Taiwan $ 190,952,606 $ 195,981,770 PRC 14,209,455 12,326,308 Hong Kong 798,648 756,692 Elimination adjustment (78,832,414) (81,283,249) Total reportable assets $ 127,128,295 $ 127,781,521 Long-lived assets Taiwan $ 6,809,903 $ 6,784,644 PRC 1,609,754 1,727,911 Hong Kong 1,146 1,287 Elimination adjustment (2,906) (2,905) Total long-lived assets $ 8,417,897 $ 8,510,937 Capital investments (CAPEX cash flows) Taiwan $ 43,515 $ 595,591 PRC 25,985 79,203 Hong Kong — 154 Total capital investments $ 69,500 $ 674,948 |
RISKS AND UNCERTAINTIES
RISKS AND UNCERTAINTIES | 3 Months Ended |
Mar. 31, 2022 | |
RISKS AND UNCERTAINTIES | |
RISKS AND UNCERTAINTIES | NOTE 18 –RISKS AND UNCERTAINTIES There has continued to be widespread impact from the coronavirus disease (“COVID-19”) pandemic including potentially more contagious strains of COVID-19 such as the Delta and Omicron variants. It has created significant volatility and uncertainty and economic disruption. The extent to which the pandemic impacts the Company’s business and operations will depend on numerous evolving factors, many of which are not within the Company’s control and which the Company may not be able to accurately predict, including its duration and scope; the ultimate availability, administration and effectiveness of vaccines around the world; governmental actions that have been and continue to be taken in response to the pandemic, including vaccine coverage; the impact of the pandemic on economic activity and actions taken in response; the ability of the Company’s customers to pay their insurance premiums which could impact the Company’s commission and fee revenues for the services provided; and the long-term impact of employees working from home, including increased technology costs. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2022 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 19 – 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 following: As disclosed in Note 10, the Company failed to meet the targets set forth in the Amendment 3 of the Alliance Agreement with AIATW and shall refund the basic business execution fees of $1,159,039 (NTD 33 million). On May 6, 2022, AIATW issued a formal letter to the Company and agreed to reduce the refund amount of $1,159,039 (NTD 33.0 million) to $807,127 (NTD 23.1 million). |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Principles of Consolidation | Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of China United, its subsidiaries and variable interest entity and its subsidiaries as shown in the corporate structure in Note 1. All significant intercompany transactions and balances have been eliminated in consolidation. Certain reclassifications have been made to the consolidated financial statements for prior year to the current year’s presentation. Such reclassifications have no effect on net income and the cash flow statements operating activities as previously reported. |
Basis of Presentation | Basis of Presentation The unaudited condensed consolidated financial statements presented herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Regulation S-X. Accordingly, the financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments, including normal recurring adjustments, considered necessary for a fair statement of the financial statements have been included. Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2021, which were included in the Company’s 2021 Annual Report on Form 10-K (“2021 Form 10-K”). The accompanying consolidated balance sheet as of December 31, 2021, has been derived from the Company’s audited consolidated financial statements as of that date. |
Use of Estimates | Use of Estimates The preparation of the Company’s unaudited condensed 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. |
Variable Interest Entities | Variable Interest Entities 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, China United, through its subsidiary, Zhengzhou Zhonglian Hengfu Business Consulting Co., Limited (“WFOE”), entered into Exclusive Business Cooperation Agreement (the “EBCA”), Power of Attorney, Option Agreement, and Share Pledge Agreement (collectively, the First VIE Agreements) on January 17, 2011 with Anhou and Anhou original shareholders so as to operate and conduct the insurance agency and brokerage business in the PRC. Pursuant to the EBCA, (a) WFOE has the right to provide Anhou with complete technical support, business support and related consulting services during the term of the EBCA; (b) 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 the EBCA, 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 the EBCA; (c) within 90 days after the end of each fiscal year Anhou shall pay an amount to WFOE equal to the shortfall, if any, of the aggregate net income of Anhou for such fiscal; (d) 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 the EBCA; and (e) the shareholders of Anhou have pledged all of their equity interests in Anhou to WFOE to guarantee Anhou’s performance of its obligations under the EBCA. The term of the EBCA is 10 years and may be extended and determined by WFOE prior to the expiration thereof, and Anhou shall accept such extended term unconditionally. On March 23, 2022, Anhou and WFOE entered into an amendment to the EBCA, pursuant to which the EBCA shall be automatic renewed for successive terms unless WFOE gives a 30-day notice to terminate such agreement, with each term being 10 years. To extend the business within the PRC, Anhou intended to increase its registered capital to RMB50 million (approximately $8 million) to meet the requirement of the China Insurance Regulatory Commission (the “CIRC”) so that it can set up new branches in any province beyond its current operations in China. China United increased the investment in Anhou through various loan agreements with the shareholders of Anhou. The aggregate funding provided by WFOE was RMB 40 million. Due to the capital increase, a series of variable interest agreements (the “Second VIE Agreements”), which include Power of Attorneys, Exclusive Option Agreements, Share Pledge Agreements, were signed on October 24, 2013 and entered 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 Second VIE Agreements, WFOE is considered the primary beneficiary of Anhou and has effective control over Anhou. Accordingly, the results of operations, assets and liabilities of Anhou and its subsidiaries (collectively, the “Consolidated Affiliated Entities” or the “CAE”) are consolidated from the earliest period presented. The Company reviews the VIE’s status on an annual basis and determine if any events have occurred that could cause its primary beneficiary status to change, which 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; and (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. For the three months ended March 31, 2022 and 2021, no event taken place that would change the Company’s primary beneficiary status. |
Marketable Securities | Marketable Securities The Company invests part of its excessive cash in equity securities and money market funds. Marketable securities represent trading securities bought and held primarily for sale in the near-term to generate income on short-term price differences and are stated at fair value. Realized and unrealized gains and losses are recorded in other income (expense). |
Accounts Receivable and Allowance for Doubtful Accounts | 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 March 31, 2022 and December 31, 2021. |
Revenue Recognition | Revenue Recognition The Company’s revenue is derived from insurance agency and brokerage services with respect to life insurance and property and casualty insurance products. The Company, through its subsidiaries and variable interest entities, 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 core revenue recognition principle under ASC 606, the Company considers the contracts with insurance companies contain one performance obligation and consideration should be recorded when performance obligation is satisfied at point in time. 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 is approved by the respective insurance company. 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. For the first year commission (FYC), the Company recognizes the revenue when the individuals’ policies are effective. The Company makes the estimation amount to be entitled for annual performance and operating bonus which is based on the FYC. The Company makes an estimation on performance and operation bonus which are based on the accumulated FYC on quarterly basis, and make reconciliation between actual and estimation amount on annual basis. For the three months ended March 31, 2022 and 2021, the estimated revenue was approximately $2.8 million and $2.0 million, respectively. Others includes the contingent commissions for subsequent years, the bonus based on persistency ratio bonus, and service allowances, are considered highly susceptible to factors outside the company's influence and depend on the actions of third parties (i.e., the subsequent premiums paid by individual policyholders), and the uncertainty can be extended for many years. Considering the high uncertainties, the contingent commissions for subsequent years, the bonus based on persistency ratio, and service allowances will be recognized as revenue based on the actual amount received from the insurance companies after the uncertain event is resolved. For property and casualty insurance products, the Company recognizes the revenue when the individuals’ policies are effective. The revenue from property and casualty insurance products were 7.0% and 5.6% of total revenue for the three months ended March 31, 2022 and 2021, respectively. The Company is obligated to pay commissions to its sales professionals when an insurance policy becomes effective. The Company recognizes commission revenue granted from insurance companies on a gross basis, and the commissions paid to its sales professionals are recognized as cost of revenue. The Company enters into service agreements with insurance companies, which may give rise to contract assets and contract liabilities. When the timing of revenue recognition differs from the timing of payments made by insurance companies, the Company recognizes either contract assets (its performance precedes the billing date) or contract liabilities (customer payment is received in advance of performance). |
Foreign Currency Transactions | Foreign Currency Transactions China United’s financial statements are presented in U.S. dollars ($), which is the China United’s reporting and functional currency. The functional currencies of the China United’s subsidiaries are New Taiwan dollar (“NTD”), China yuan (“RMB”) and Hong Kong dollar (“HKD”). Each subsidiary maintains its financial records in its own functional currency. Transactions denominated in foreign currencies are measured at the exchange rates prevailing on the transaction dates. Monetary assets and liabilities denominated in foreign currencies are remeasured at the exchange rates prevailing at the balance sheet date. Non-monetary items that are measured in terms of historical cost in foreign currency are remeasured using the exchange rates at the dates of the initial transactions. Exchange gains and losses are included 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 unaudited condensed consolidated financial statements are as follows: Average Rate for the three months ended March 31, 2022 2021 (unaudited) (unaudited) Taiwan dollar (NTD) NTD 27.98355 NTD 28.06892 China yuan (RMB) RMB 6.34536 RMB 6.48199 Hong Kong dollar (HKD) HKD 7.80460 HKD 7.75690 United States dollar ($) $ 1.00000 $ 1.00000 Exchange Rate at March 31, 2022 (unaudited) December 31, 2021 Taiwan dollar (NTD) NTD 28.62003 NTD 27.68785 China yuan (RMB) RMB 6.34175 RMB 6.35877 Hong Kong dollar (HKD) HKD 7.83033 HKD 7.79713 United States dollar ($) $ 1.00000 $ 1.00000 |
Earnings Per Share | 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 treated as 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 FASB ASC Topic 260, “Earnings Per Share.” As of March 31, 2022 and 2021, the Company does not have any potentially dilutive instrument. The following is a reconciliation of the income and share data used in the basic and diluted EPS computations for the three months ended March 31, 2022 and 2021 under the two-class method. Three Months Ended March 31, 2022 2021 Numerator: Common stock Preferred stock Common stock Preferred stock Allocation of net income attributable to the Company $ 2,850,750 $ 94,127 $ 2,331,154 $ 79,232 Denominator: Weighted average shares of the Company’s common/preferred stock outstanding - basic 30,286,199 1,000,000 29,421,736 1,000,000 Basic and diluted earnings per share $ 0.094 $ 0.094 $ 0.079 $ 0.079 The participating rights (liquidation and dividend rights) of the holders of the Company’s common stock and preferred stock are identical, except with respect to voting right. As a result, and in accordance with ASC 260, the undistributed earnings for each year are allocated based on the contractual participation rights of the common stock and preferred stock as if the earnings for the year had been distributed. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. |
Fair Value of Financial Instruments | 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. - In determining the appropriate levels, the Company performs a detailed analysis of the assets and liabilities that are measured and reported on a fair value basis. At each reporting period, all assets and liabilities for which the fair value measurement is based on significant unobservable inputs are classified as Level 3. The following table summarize financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021: March 31, 2022 Fair Value Carrying Level 1 Level 2 Level 3 Value Assets Marketable securities : Stock and mutual funds $ 832,990 $ — $ — $ 832,990 Long-term investments: REITs 1,204,320 — — 1,204,320 Total assets measured at fair value $ 2,037,310 $ — $ — $ 2,037,310 December 31, 2021 Fair Value Carrying Level 1 Level 2 Level 3 Value Assets Long-term investments: REITs $ 1,261,482 $ — $ — $ 1,261,482 Total assets measured at fair value $ 1,261,482 $ — $ — $ 1,261,482 The carrying amounts of current financial assets and liabilities in the consolidated balance sheets for cash equivalents, time deposits, and restricted cash equivalents approximate fair value due to the short-term duration of those instruments, which are considered level 2 fair value measurement. 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. |
Concentration of Risk | Concentration of Risk The Company maintains cash with banks in the USA, People’s Republic of China (“PRC”), Hong Kong, and Taiwan. Should any bank holding the Company’s cash become insolvent, or if the Company is otherwise unable to withdraw funds, the Company would lose all or part of its cash deposit with that bank; however, the Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. In Taiwan, a depositor has up to 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 deposit and accounts receivable. As of March 31, 2022 and December 31, 2021, approximately $2,643,000 and $2,712,000 of the Company’s cash and cash equivalents, time deposits, and registered capital deposits held by financial institutions, was insured, and the remaining balance of approximately $90,445,000 and $83,446,000, 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 three months ended March 31, 2022 and 2021, the Company’s revenues from sale of insurance policies underwritten by these companies were: Three Months Ended March 31, 2022 2021 (unaudited) (unaudited) % of Total % of Total Amount Revenue Amount Revenue TransGlobe Life Insurance Inc. $ 7,680,425 25 % $ 6,600,629 22 % Taiwan Life Insurance Co., Ltd. 4,406,584 14 % 7,231,458 24 % Farglory Life Insurance Co., Ltd. 3,431,308 11 % 4,519,841 15 % As of March 31, 2022 and December 31, 2021, the Company’s accounts receivable from these companies were: March 31, 2022 (unaudited) December 31, 2021 % of Total % of Total Accounts Accounts Amount Receivable Amount Receivable TransGlobe Life Insurance Inc. $ 5,217,313 28 % $ 8,569,590 32 % Taiwan Life Insurance Co., Ltd 3,520,479 19 % 4,483,343 17 % Farglory Life Insurance Co., Ltd. 2,049,294 11 % 2,729,673 10 % The Company’s operations are in the PRC, Hong Kong and Taiwan. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic, foreign currency exchange and legal environments in the PRC, Hong Kong and Taiwan, and by the state of each economy. The Company’s results of operations 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. |
Income Taxes | 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 that 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 measured as 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 are classified as interest expense and penalties are classified in selling, general and administrative expenses in the statements of operations and other comprehensive income (loss). |
New Accounting Pronouncements and Other Guidance | New Accounting Pronouncements and Other Guidance New accounting pronouncements not yet adopted Credit Losses In June 2016, the FASB issued ASU No. 2016-13, (FASB ASC Topic 326), Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments which amends the current accounting guidance and requires the use of the new forward-looking “expected loss” model, rather than the “incurred loss” model, which requires all expected losses to be determined based on historical experience, current conditions and reasonable and supportable forecasts. This guidance amends the accounting for credit losses for most financial assets and certain other instruments including trade and other receivables, held-to-maturity debt securities, loans and other instruments. In November 2019, the FASB issued ASU No. 2019-10 to postpone the effective date of ASU No. 2016-13 for public business entities eligible to be smaller reporting companies defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company believes the adoption of ASU No. 2016-13 will not have a material impact on the Company’s consolidated financial statements. Reference Rate Reform In March 2020, the FASB issued ASU No. 2020–04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The pronouncement provides temporary optional expedients and exceptions to the current guidance on contract modifications and hedge accounting to ease the financial reporting burden related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. The guidance was effective for all entities upon issuance and generally can be applied to applicable contract modifications through December 31, 2022. The Company is currently evaluating the effects of the guidance on the Company’s consolidated financial statements and related disclosures. 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) | 3 Months Ended |
Mar. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of Intercompany Foreign Currency Balances | Average Rate for the three months ended March 31, 2022 2021 (unaudited) (unaudited) Taiwan dollar (NTD) NTD 27.98355 NTD 28.06892 China yuan (RMB) RMB 6.34536 RMB 6.48199 Hong Kong dollar (HKD) HKD 7.80460 HKD 7.75690 United States dollar ($) $ 1.00000 $ 1.00000 Exchange Rate at March 31, 2022 (unaudited) December 31, 2021 Taiwan dollar (NTD) NTD 28.62003 NTD 27.68785 China yuan (RMB) RMB 6.34175 RMB 6.35877 Hong Kong dollar (HKD) HKD 7.83033 HKD 7.79713 United States dollar ($) $ 1.00000 $ 1.00000 |
Schedule of reconciliation of the income and share data used in the basic and diluted EPS computations | The following is a reconciliation of the income and share data used in the basic and diluted EPS computations for the three months ended March 31, 2022 and 2021 under the two-class method. Three Months Ended March 31, 2022 2021 Numerator: Common stock Preferred stock Common stock Preferred stock Allocation of net income attributable to the Company $ 2,850,750 $ 94,127 $ 2,331,154 $ 79,232 Denominator: Weighted average shares of the Company’s common/preferred stock outstanding - basic 30,286,199 1,000,000 29,421,736 1,000,000 Basic and diluted earnings per share $ 0.094 $ 0.094 $ 0.079 $ 0.079 |
Schedule of assets and liabilities measured at fair value on a recurring basis | The following table summarize financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021: March 31, 2022 Fair Value Carrying Level 1 Level 2 Level 3 Value Assets Marketable securities : Stock and mutual funds $ 832,990 $ — $ — $ 832,990 Long-term investments: REITs 1,204,320 — — 1,204,320 Total assets measured at fair value $ 2,037,310 $ — $ — $ 2,037,310 December 31, 2021 Fair Value Carrying Level 1 Level 2 Level 3 Value Assets Long-term investments: REITs $ 1,261,482 $ — $ — $ 1,261,482 Total assets measured at fair value $ 1,261,482 $ — $ — $ 1,261,482 |
Schedule Of Revenue From Insurance Services | For the three months ended March 31, 2022 and 2021, the Company’s revenues from sale of insurance policies underwritten by these companies were: Three Months Ended March 31, 2022 2021 (unaudited) (unaudited) % of Total % of Total Amount Revenue Amount Revenue TransGlobe Life Insurance Inc. $ 7,680,425 25 % $ 6,600,629 22 % Taiwan Life Insurance Co., Ltd. 4,406,584 14 % 7,231,458 24 % Farglory Life Insurance Co., Ltd. 3,431,308 11 % 4,519,841 15 % |
Schedule Of Accounts Receivable From Related Parties | As of March 31, 2022 and December 31, 2021, the Company’s accounts receivable from these companies were: March 31, 2022 (unaudited) December 31, 2021 % of Total % of Total Accounts Accounts Amount Receivable Amount Receivable TransGlobe Life Insurance Inc. $ 5,217,313 28 % $ 8,569,590 32 % Taiwan Life Insurance Co., Ltd 3,520,479 19 % 4,483,343 17 % Farglory Life Insurance Co., Ltd. 2,049,294 11 % 2,729,673 10 % |
CASH, CASH EQUIVALENTS AND RE_2
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |
Schedule of cash, cash equivalents and restricted cash | Cash, cash equivalents and restricted cash consisted of the following as of March 31, 2022 and December 31, 2021: March 31, 2022 (unaudited) December 31, 2021 Cash and cash equivalents: Cash on hand and in banks $ 20,595,428 $ 18,234,350 Restricted cash – noncurrent 13,650 88,282 Total cash, cash equivalents and restricted cash shown in the statements of cash flows $ 20,609,078 $ 18,322,632 |
TIME DEPOSITS (Tables)
TIME DEPOSITS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
TIME DEPOSITS | |
Schedule of time deposits | March 31, 2022 (unaudited) December 31, 2021 Total time deposits $ 72,718,699 $ 71,161,391 Less: Time deposits – with original maturities less than three months (3,783,436) (6,862,215) Time deposits – original maturities over three months but less than one year $ 68,935,263 $ 64,299,176 |
LONG-TERM INVESTMENTS (Tables)
LONG-TERM INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
LONG-TERM INVESTMENTS. | |
Schedule of company's long-term investments | As of March 31, 2022 and December 31, 2021, the Company’s long-term investments consisted of the following: March 31, 2022 (unaudited) December 31, 2021 Equity investments under cost method $ 1,390,244 $ 1,435,330 REITs 1,204,320 1,261,482 Total long-term investments $ 2,594,564 $ 2,696,812 |
Schedule of change in carrying value of Equity investments accounted for the cost method due to foreign currency translation | Equity Investments under cost method using the measurement alternative March 31, 2022 (unaudited) December 31, 2021 Investment Investment Investee Ownership Amount Ownership Amount Genius Insurance Broker Co., Ltd (“GIB”) 11.73 % $ 1,342,938 11.73 % $ 1,388,151 Hainan Haoguan Yucheng Technology Service LLP (“HAINAN”) 9.99 % 47,306 9.99 % 47,179 |
SHORT-TERM LOANS (Tables)
SHORT-TERM LOANS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
SHORT-TERM LOANS | |
Schedule of short-term loans | The Company’s short-term loans consisted of the following as of March 31, 2022 and December 31, 2021: March 31, 2022 (unaudited) December 31, 2021 Debt Collateral Debt Collateral Line of Credit Collateral balance value balance value $8.7 million (NTD 250 million) revolving line of credit with Cathay United Bank Company Limited (“CUB”); the loan bears interest at the higher of CUB's adjustable rates for loans plus a margin of 0.41% or the 1-month TAIBOR rate plus a margin of 0.8% and matures on May 4, 2022. Time deposits $ 5,223,615 $ 5,258,556 $ 9,011,172 $ 9,047,289 $4.0 million revolving line of credit with O-Bank; the loan bears interest at the TAIFX3 rate plus a margin of 0.5% and matures on December 2, 2022. Time deposits 4,000,000 4,821,799 4,000,000 4,984,135 $6.0 million revolving line of credit with Taishin International Bank (“TSIB”); the loan bears interest at the TSIB’s cost of funds plus a margin of 0.7% and matures on May 31, 2022. Time deposits 2,200,000 3,065,801 2,200,000 3,065,801 $2.5 million revolving line of credit with Far Eastern International Bank Time deposits 1,850,000 2,865,127 1,850,000 2,961,588 $3.1 million revolving line of credit with KGI; the loan bears interest at the TAIFX Fixing rate plus a margin of 0.9% and matures on May 18, 2022. Time deposits 1,540,000 2,357,961 1,540,000 2,481,926 $7.0 million (NTD 200 million) revolving line of credit with Taishin International Bank (“TSIB”); the loan bears interest at the TSIB’s cost of funds plus a margin of 0.625% and matures on May 31, 2022. Time deposits 3,721,171 3,721,171 234,760 234,760 $3.0 million revolving line of credit with E. Sun Bank (“E. Sun”); the loan bears interest at the TAIFX3 rate plus a margin of 0.4% and matures on November 30, 2022. Time deposits 600,000 1,000,000 — 1,000,000 $7.0 million (NTD 200 million) revolving line of credit with E. Sun Bank (“E. Sun”); the loan bears interest at the E. Sun’s adjustable rates for loans plus a margin of 0.1% and matures on October 15, 2022. Time deposits 454,227 1,642,207 — — $ 19,589,013 $ 24,732,622 $ 18,835,932 $ 23,775,499 |
COMMISSIONS PAYABLE TO SALES _2
COMMISSIONS PAYABLE TO SALES PROFESSIONALS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
COMMISSIONS PAYABLE TO SALES PROFESSIONALS | |
Schedule of commissions payable to professionals | Commissions payable to sales professionals consisted of the following as of March 31, 2022 and December 31, 2021: March 31, 2022 (unaudited) December 31, 2021 Taiwan $ 9,625,456 $ 13,793,343 PRC 214,761 210,198 Total commissions payable to sales professionals $ 9,840,217 $ 14,003,541 |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
OTHER CURRENT LIABILITIES | |
Schedule of other current liabilities | Other current liabilities were as follows, as of March 31, 2022 and December 31, 2021: March 31, 2022 (unaudited) December 31, 2021 Accrued bonus $ 5,463,307 $ 6,645,496 Payroll payable and other benefits 1,742,262 2,188,074 Accrued business tax and tax withholdings 1,323,088 1,903,039 Proceeds from receipts in advance of disposal of a subsidiary 2,317,971 — Execution fees payable – AIA(Note 10) 1,153,039 1,191,858 Other accrued liabilities 1,827,287 2,069,136 Total other current liabilities $ 13,826,954 $ 13,997,603 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
OTHER LIABILITIES | |
Schedule of other noncurrent liabilities | The Company’s other liabilities consisted of the following as of March 31, 2022 and December 31, 2021: March 31, 2022 (unaudited) December 31, 2021 Due to previous shareholders of AHFL $ 524,109 $ 541,754 Total other liabilities $ 524,109 $ 541,754 |
CONTRACTS WITH CUSTOMERS (Table
CONTRACTS WITH CUSTOMERS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
CONTRACTS WITH CUSTOMERS | |
Schedule of revenue recognition guidance | Information about accounts receivable and contract assets from contracts with customers is as follows: March 31, 2022 (unaudited) December 31, 2021 Accounts receivable $ 18,315,305 $ 26,761,678 Contract assets 457,917 — |
LEASE (Tables)
LEASE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
LEASE | |
Schedule of operating lease right-of-use assets and lease liabilities | March 31, 2022 (unaudited) December 31, 2021 Right-of-use assets under operating leases $ 6,594,686 $ 6,449,182 Operating lease liabilities – current 3,312,917 3,059,329 Operating lease liabilities – noncurrent 3,250,652 3,298,089 |
Schedule of lease term and discount rate | Lease term and discount rate March 31, 2022 (unaudited) December 31, 2021 Weighted average remaining lease term Operating lease 2.23 years 2.31 years Weighted average discount rate Operating lease 3.19 % 2.80 % |
Schedule of supplemental cash flow information related to leases | Supplemental cash flow information related to leases Three Months Ended March 31, 2022(unaudited) 2021(unaudited) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows related to operating leases $ 1,232,314 $ 1,142,714 Amortization of right-of-use assets under operating leases 951,111 877,022 |
Schedule of operating lease right-of-use assets and lease liabilities | The minimum future lease payments as of March 31, 2022 are as follows: Amount 2022 (remainder of year) 2,705,341 2023 2,577,470 2024 1,292,693 2025 178,775 2026 12,074 Thereafter — Total minimum lease payments 6,766,353 Less: Interest (202,784) Present value of future minimum lease payments $ 6,563,569 |
NONCONTROLLING INTERESTS (Table
NONCONTROLLING INTERESTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
NONCONTROLLING INTERESTS | |
Schedule of noncontrolling interests | % of Non- Other March 31, controlling December 31, Net Income Comprehensive 2022 Name of Entity Interest 2021 (Loss) (Loss) (unaudited) Law Enterprise 34.05 % $ (676,166) $ (82,974) $ (5,870) (765,010) Law Broker 34.05 % 31,016,203 1,650,826 (1,018,942) 31,648,087 Uniwill 50.00 % 48,802 149,554 (16,158) 182,198 Rays 1.00 % (6,461) (55) — (6,516) PFAL 49.00 % 364,056 21,930 (866) 385,120 MKI 49.00 % (327,119) — — (327,119) Total $ 30,419,315 $ 1,739,281 $ (1,041,836) $ 31,116,760 % of Non- Other Impact from controlling December 31, Net Income Comprehensive Liquidation of December 31, Name of Entity Interest 2020 (Loss) Income (Loss) PA Taiwan 2021 Law Enterprise 34.05 % $ (414,957) $ (264,642) $ 3,433 $ — $ (676,166) Law Broker 34.05 % 25,177,272 5,444,673 394,258 — 31,016,203 Uniwill 50.00 % (421,035) 466,934 2,903 — 48,802 Rays 1.00 % (5,772) (689) — — (6,461) PFAL 49.00 % 423,978 (63,441) 3,519 — 364,056 MKI 49.00 % (732) (161,090) — (165,297) (327,119) PA Taiwan 49.00 % (163,013) 1,102 (3,386) 165,297 — Total $ 24,595,741 $ 5,422,847 $ 400,727 $ — $ 30,419,315 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
INCOME TAX | |
Schedule of reconciles the Company's statutory tax rates to effective tax rates | The following table reconciles the Company’s statutory tax rates to effective tax rates for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 2021 (unaudited) (unaudited) US statutory rate 21 % 21 % Tax rate difference (2) % (2) % Change in valuation allowance 8 % 4 % Income tax on undistributed earnings 4 % 4 % Utilization of deferred tax assets not previously recognized (2) % (1) % Non-deductible and non-taxable items — % 1 % True up of prior year income tax — % (1) % Other (4) % — % Effective tax rate 25 % 26 % |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
RELATED PARTY TRANSACTIONS | |
Schedule of due to related parties | The following summarized the Company’s loans payable related parties as of March 31, 2022 and December 31, 2021: March 31, 2022 (unaudited) December 31, 2021 Due to Ms. Lu (A shareholder of Anhou) $ 25,654 $ 41,311 Others 11,190 9,220 Total $ 36,844 $ 50,531 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
VARIABLE INTEREST ENTITIES | |
Schedule of variable interest entities | March 31, 2022 (Amount in USD) (unaudited) December 31, 2021 ASSETS Current assets Cash and cash equivalents $ 2,808,564 $ 1,001,974 Accounts receivable and notes receivable 731,192 455,884 Other current assets 173,360 120,113 Total current assets 3,713,116 1,577,971 Right-of-use assets under operating leases 1,400,738 1,528,856 Property and equipment, net 209,016 199,056 Prepaid expenses - intangible assets 20,389 9,377 Long-term investments 47,306 47,179 Restricted cash – noncurrent 856 72,870 Registered capital deposits 1,103,796 1,100,842 Deferred tax assets — 74,709 Other assets 84,176 83,951 TOTAL ASSETS $ 6,579,393 $ 4,694,811 LIABILITIES Current liabilities Commissions payable to sales professionals $ 214,761 $ 210,198 Other current liabilities 3,312,953 1,117,738 Due to related parties - Ms. Lu (the shareholder of Law Anhou) 25,654 41,311 Total current liabilities 3,553,368 1,369,247 Operating lease liabilities - noncurrent 807,009 908,971 TOTAL LIABILITIES $ 4,360,377 $ 2,278,218 Three Months Ended March 31, (Amount in USD) 2022 2021 Revenue $ 1,347,816 $ 1,951,469 Net loss (201,946) (50,781) Net cash used in operating activities (472,033) (449,692) Net cash provided by (used in) investing activities 2,290,667 (7,292) Net cash used in financing activities (15,760) (7,714) |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
SEGMENT REPORTING | |
Schedule of revenue by major customers by reporting segments | Three Months Ended March 31, (unaudited) (unaudited) 2022 2021 Geographical Areas Revenue Taiwan $ 30,505,357 $ 28,851,500 PRC 1,347,816 1,951,469 Hong Kong 82,822 110,985 Elimination adjustment (955,472) (383,837) Total revenue $ 30,980,523 $ 30,530,117 Income (loss) from operations Taiwan $ 5,213,523 $ 4,690,729 PRC (155,919) (3,918) Hong Kong 38,401 61,493 Elimination adjustment 217,810 138,350 Total income from operations $ 5,313,815 $ 4,886,654 Non operating income (expense) Taiwan $ 860,527 $ 587,469 PRC 256,585 96,152 Hong Kong 9,502 (118) Elimination adjustment (174,374) (134,569) Total non-operating income (expense) $ 952,240 $ 548,934 Net income Taiwan $ 4,570,169 $ 3,933,490 PRC 25,798 46,918 Hong Kong 44,756 56,312 Elimination adjustment 43,435 62 Total net income $ 4,684,158 $ 4,036,782 |
Schedule of long-lived assets | The geographical distribution of the Company’s financial information as of March 31, 2022 and December 31, 2021 were as follows: March 31, 2022 (unaudited) December 31, 2021 Geographical Areas Reportable assets Taiwan $ 190,952,606 $ 195,981,770 PRC 14,209,455 12,326,308 Hong Kong 798,648 756,692 Elimination adjustment (78,832,414) (81,283,249) Total reportable assets $ 127,128,295 $ 127,781,521 Long-lived assets Taiwan $ 6,809,903 $ 6,784,644 PRC 1,609,754 1,727,911 Hong Kong 1,146 1,287 Elimination adjustment (2,906) (2,905) Total long-lived assets $ 8,417,897 $ 8,510,937 Capital investments (CAPEX cash flows) Taiwan $ 43,515 $ 595,591 PRC 25,985 79,203 Hong Kong — 154 Total capital investments $ 69,500 $ 674,948 |
ORGANIZATION AND PRINCIPAL AC_2
ORGANIZATION AND PRINCIPAL ACTIVITIES - Narrative (Details) ¥ in Millions | 3 Months Ended | ||||
Mar. 31, 2022USD ($) | Mar. 31, 2022CNY (¥) | Feb. 25, 2022 | Jan. 31, 2022USD ($) | Jan. 31, 2022CNY (¥) | |
Down Payment received | $ 2,317,971 | ||||
GIC | |||||
Ownership percentage | 100.00% | 100.00% | |||
Jiangsu Law [Member] | |||||
Ownership percentage | 100.00% | ||||
Down Payment received | ¥ 14.7 | $ 2,317,971 | ¥ 14.7 | ||
Percentage of total assets | 0.67% | ||||
Jiangsu Law [Member] | AFHL | |||||
Percentage of total revenue | 0.72% | ||||
Max Key Investments Limited | |||||
% of Non-controlling Interests | 100.00% | 100.00% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Details) | 3 Months Ended | ||
Mar. 31, 2022shares | Mar. 31, 2021 | Dec. 31, 2021shares | |
Common Stock, Shares, Issued | 30,286,199 | 30,286,199 | |
Taiwan Dollar (TWD) | |||
Foreign currency average rate translation | 27.98355 | 28.06892 | |
Foreign currency exchange rate, translation | 28.62003 | 27.68785 | |
China yuan (RMB) | |||
Foreign currency average rate translation | 6.34536 | 6.48199 | |
Foreign currency exchange rate, translation | 6.34175 | 6.35877 | |
Hong Kong dollar (HKD) | |||
Foreign currency average rate translation | 7.80460 | 7.75690 | |
Foreign currency exchange rate, translation | 7.83033 | 7.79713 | |
United States dollar ($) | |||
Foreign currency average rate translation | 1 | 1 | |
Foreign currency exchange rate, translation | 1 | 1 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of Risk (Revenue) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Concentration Risk [Line Items] | ||
Amount of Revenue | $ 30,980,523 | $ 30,530,117 |
Revenues | Customer concentration | TransGlobe Life Insurance Inc | ||
Concentration Risk [Line Items] | ||
Amount of Revenue | $ 7,680,425 | $ 6,600,629 |
Concentration risk percentage | 25.00% | 22.00% |
Revenues | Customer concentration | Taiwan Life Insurance Co., Ltd | ||
Concentration Risk [Line Items] | ||
Amount of Revenue | $ 4,406,584 | $ 7,231,458 |
Concentration risk percentage | 14.00% | 24.00% |
Revenues | Customer concentration | Farglory Life Insurance Co., Ltd. | ||
Concentration Risk [Line Items] | ||
Amount of Revenue | $ 3,431,308 | $ 4,519,841 |
Concentration risk percentage | 11.00% | 15.00% |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of Risk ( Accounts Receivable) (Details) - Credit concentration - Accounts receivable - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
TransGlobe Life Insurance Inc | ||
Concentration Risk [Line Items] | ||
Accounts receivable, net | $ 5,217,313 | $ 8,569,590 |
Percentage of accounts receivable | 28.00% | 32.00% |
Taiwan Life Insurance Co., Ltd | ||
Concentration Risk [Line Items] | ||
Accounts receivable, net | $ 3,520,479 | $ 4,483,343 |
Percentage of accounts receivable | 19.00% | 17.00% |
Farglory Life Insurance Co., Ltd. | ||
Concentration Risk [Line Items] | ||
Accounts receivable, net | $ 2,049,294 | $ 2,729,673 |
Percentage of accounts receivable | 11.00% | 10.00% |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) | Mar. 23, 2022 | Mar. 31, 2021USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2022CNY (¥) | Mar. 31, 2021USD ($) | Mar. 31, 2022CNY (¥) | Mar. 31, 2022TWD ($) | Mar. 31, 2022HKD ($) | Dec. 31, 2021USD ($) |
Disclosure of Summary Of Significant Accounting Policies | |||||||||
Cash, uninsured amount | $ 250,000 | ||||||||
Increase in registered capital | $ 8,000,000 | ¥ 50,000,000 | |||||||
Tax benefit percentage expected to be realized upon settlement | 50.00% | 50.00% | 50.00% | 50.00% | |||||
Revenue | $ 30,980,523 | $ 30,530,117 | |||||||
Compensation costs for awards granted to nonemployees | $ 72,905 | $ 62,208 | |||||||
Notice Period Terminate Agreement | 30 days | ||||||||
Aggregate funding provided by WFOE | ¥ | ¥ 40,000,000 | ||||||||
Property And Casualty Insurance Products | |||||||||
Disclosure of Summary Of Significant Accounting Policies | |||||||||
Revenue from products as a percentage of total revenue | 7.00% | 7.00% | 5.60% | ||||||
Taiwan | |||||||||
Disclosure of Summary Of Significant Accounting Policies | |||||||||
Cash, FDIC insured amount | $ 3,000,000 | ||||||||
Revenue | $ 2,000,000 | $ 2,800,000 | |||||||
CHINA | |||||||||
Disclosure of Summary Of Significant Accounting Policies | |||||||||
Cash, FDIC insured amount | ¥ | ¥ 500,000 | ||||||||
HONG KONG | |||||||||
Disclosure of Summary Of Significant Accounting Policies | |||||||||
Cash, FDIC insured amount | $ 500,000 | ||||||||
Credit concentration | |||||||||
Disclosure of Summary Of Significant Accounting Policies | |||||||||
Cash, FDIC insured amount | 2,643,000 | $ 2,712,000 | |||||||
Cash, uninsured amount | $ 90,445,000 | $ 83,446,000 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Condensed Balance Sheets of VIE (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Assets, Current [Abstract] | ||||
Cash and cash equivalents | $ 20,595,428 | $ 18,234,350 | ||
Accounts receivable | 18,315,305 | 26,761,678 | ||
Other current assets | 1,173,425 | 1,207,496 | ||
Total current assets | 110,310,328 | 110,502,700 | ||
Right-of-use assets under operating leases | 6,594,686 | 6,449,182 | ||
Property and equipment, net | 1,823,211 | 2,061,755 | ||
Long-term Investments | 2,594,564 | 2,696,812 | ||
Restricted cash - noncurrent | 13,650 | 88,282 | ||
Deferred tax assets | 698,750 | 909,032 | ||
Other assets | 4,733,347 | 4,740,640 | ||
TOTAL ASSETS | 127,128,295 | 127,781,521 | ||
Liabilities, Current [Abstract] | ||||
Commission payable to sales professionals | 9,840,217 | 14,003,541 | ||
Operating Lease, Liability, Current | 3,312,917 | 3,059,329 | ||
Total current liabilities | 51,693,852 | 53,839,983 | ||
Operating lease liabilities - noncurrent | 3,250,652 | 3,298,089 | ||
TOTAL LIABILITIES | 56,384,771 | 58,608,660 | ||
Commitments and Contingencies | ||||
STOCKHOLDERS EQUITY | ||||
Common Stock, Value, Issued | 303 | 303 | ||
Additional paid-in capital | 9,296,953 | 9,296,953 | ||
Retained earnings | 16,635,245 | 13,690,368 | ||
Accumulated other comprehensive income | 2,593,189 | 4,664,848 | ||
Total stockholders' equity attributable to China United's shareholders | 39,626,764 | 38,753,546 | ||
TOTAL STOCKHOLDERS' EQUITY | 70,743,524 | 69,172,861 | $ 58,083,081 | $ 55,237,234 |
Zhengzhou Zhonglia Hengfu Business Consulting Co., Limited | ||||
Assets, Current [Abstract] | ||||
Cash and cash equivalents | 2,808,564 | 1,001,974 | ||
Accounts receivable | 731,192 | 455,884 | ||
Other current assets | 173,360 | 120,113 | ||
Total current assets | 3,713,116 | 1,577,971 | ||
Right-of-use assets under operating leases | 1,400,738 | 1,528,856 | ||
Property and equipment, net | 209,016 | 199,056 | ||
Long-term Investments | 47,306 | 47,179 | ||
Restricted cash - noncurrent | 856 | 72,870 | ||
Deferred tax assets | 74,709 | |||
Other assets | 84,176 | 83,951 | ||
TOTAL ASSETS | 6,579,393 | 4,694,811 | ||
Liabilities, Current [Abstract] | ||||
Commission payable to sales professionals | 214,761 | 210,198 | ||
Total current liabilities | 3,553,368 | 1,369,247 | ||
Operating lease liabilities - noncurrent | 807,009 | 908,971 | ||
TOTAL LIABILITIES | $ 4,360,377 | $ 2,278,218 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Condensed Statements of Operations of VIE (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue | $ 30,980,523 | $ 30,530,117 |
Gross Profit | 11,971,004 | 11,556,685 |
Operating expenses: | ||
Selling | 684,150 | 579,777 |
General and administrative | 5,973,039 | 6,090,254 |
Total operating expense | 6,657,189 | 6,670,031 |
Income from operations | 5,313,815 | 4,886,654 |
Other income (expenses): | ||
Interest income | 104,977 | 83,998 |
Foreign currency exchange gains (losses) | 737,550 | 328,466 |
Other - net | 162,048 | 178,940 |
Total other income, net | 952,240 | 548,934 |
Income before income taxes | 6,266,055 | 5,435,588 |
Income tax expense | (1,581,897) | (1,398,806) |
Net income | 4,684,158 | 4,036,782 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Revenue | 1,347,816 | 1,951,469 |
Zhengzhou Zhonglia Hengfu Business Consulting Co., Limited | ||
Revenue | 1,347,816 | 1,951,469 |
Other income (expenses): | ||
Net income | $ (201,946) | $ (50,781) |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair Value of Financial Instruments (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Time deposits | $ 72,718,699 | $ 71,161,391 |
Marketable securities: | ||
Stock and mutual funds | 832,990 | |
Long-term investment: | ||
REITs | 1,204,320 | 1,261,482 |
Total assets measured at fair value | 2,037,310 | 1,261,482 |
Fair Value, Inputs, Level 1 | ||
Marketable securities: | ||
Stock and mutual funds | 832,990 | |
Long-term investment: | ||
REITs | 1,204,320 | 1,261,482 |
Total assets measured at fair value | $ 2,037,310 | $ 1,261,482 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of the income and share data used in the basic and diluted EPS computations (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Allocation of net income attributable to the Company. | $ 2,944,877 | $ 2,410,386 |
Weighted Average Number of Shares Outstanding, Basic | 30,286,199 | 29,421,736 |
Earnings Per Share, Basic | $ 0.094 | $ 0.079 |
Earnings Per Share, Diluted | $ 0.094 | $ 0.079 |
Common Stock | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Allocation of net income attributable to the Company. | $ 2,850,750 | $ 2,331,154 |
Weighted Average Number of Shares Outstanding, Basic | 30,286,199 | 29,421,736 |
Earnings Per Share, Basic | $ 0.094 | $ 0.079 |
Earnings Per Share, Diluted | $ 0.094 | $ 0.079 |
Preferred Stock | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Allocation of net income attributable to the Company. | $ 94,127 | $ 79,232 |
Weighted Average Number of Shares Outstanding, Basic | 1,000,000 | 1,000,000 |
Earnings Per Share, Basic | $ 0.094 | $ 0.079 |
Earnings Per Share, Diluted | $ 0.094 | $ 0.079 |
CASH, CASH EQUIVALENTS AND RE_3
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ||||
Cash on hand and in banks | $ 20,595,428 | $ 18,234,350 | ||
Restricted cash - noncurrent | 13,650 | 88,282 | ||
Total cash, cash equivalents and restricted cash shown in the statements of cash flows | $ 20,609,078 | $ 18,322,632 | $ 17,502,153 | $ 9,129,828 |
TIME DEPOSITS (Details)
TIME DEPOSITS (Details) $ in Millions | Mar. 31, 2022USD ($) | Mar. 31, 2022TWD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2021TWD ($) |
TIME DEPOSITS | ||||
Restricted Time Deposits | $ 24,767,563 | $ 708.8 | $ 23,811,616 | $ 659.3 |
Time deposits pledged as collateral | 34,941 | $ 1 | 36,117 | $ 1 |
Total time deposits | 72,718,699 | 71,161,391 | ||
Restricted Cash | 24,732,622 | 23,775,499 | ||
Less: Time deposits - with original maturities less than three months | (3,783,436) | (6,862,215) | ||
Time deposits - original maturities over three months but less than one year | $ 68,935,263 | $ 64,299,176 |
LONG-TERM INVESTMENTS - Summary
LONG-TERM INVESTMENTS - Summary of Companys long-term investments (Details) $ in Millions | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Aug. 14, 2020TWD ($) | Aug. 13, 2020TWD ($) |
LONG-TERM INVESTMENTS. | ||||
Equity investments under cost method | $ 1,390,244 | $ 1,435,330 | $ 60 | $ 45 |
REITs | 1,204,320 | 1,261,482 | ||
Total long-term investments | $ 2,594,564 | $ 2,696,812 |
LONG-TERM INVESTMENTS - Summa_2
LONG-TERM INVESTMENTS - Summary of change in carrying value of Equity investments accounted for the cost method due to foreign currency translation (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2021CNY (¥) | Aug. 14, 2020TWD ($) | Aug. 13, 2020TWD ($) | Feb. 13, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Long-Term Investment In Equity Amount | $ 1,390,244 | $ 1,435,330 | $ 60 | $ 45 | ||
Genius Insurance Broker Co Ltd | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investment Ownership Percentage | 11.73% | 11.73% | 11.73% | 11.73% | 15.64% | 15.64% |
Long-Term Investment In Equity Amount | $ 1,342,938 | $ 1,388,151 | ||||
Investee Name | Genius Insurance Broker Co., Ltd (“GIB”) | Genius Insurance Broker Co., Ltd (“GIB”) | ||||
Hainan Haoguan Yucheng Technology Service LLP ("HAINAN") | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investment Ownership Percentage | 9.99% | 9.99% | 9.99% | |||
Long-Term Investment In Equity Amount | $ 47,306 | $ 47,179 | ¥ 300,000 | |||
Investee Name | Hainan Haoguan Yucheng Technology Service LLP (“HAINAN”) | Hainan Haoguan Yucheng Technology Service LLP (“HAINAN”) |
LONG-TERM INVESTMENTS - Additio
LONG-TERM INVESTMENTS - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
LONG-TERM INVESTMENTS. | |||
Real Estate Investment Property, Net | $ 1,204,320 | $ 1,261,482 | |
Unrealized losses on Investments | $ 16,441 | $ 20,489 |
SHORT-TERM LOANS (Details)
SHORT-TERM LOANS (Details) $ in Millions | 3 Months Ended | |||
Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2022TWD ($) | Dec. 31, 2021USD ($) | |
Short-term Debt [Line Items] | ||||
Line of Credit, Current | $ 19,589,013 | $ 18,835,932 | ||
Collateral value | 24,732,622 | 23,775,499 | ||
Total short term loans | 19,589,013 | 18,835,932 | ||
Interest Expense, Short-term Borrowings | 52,335 | $ 42,470 | ||
Credit facility, CUB | ||||
Short-term Debt [Line Items] | ||||
Line of Credit, Current | 5,223,615 | 9,011,172 | ||
Collateral value | 5,258,556 | 9,047,289 | ||
Line of Credit Facility, Maximum Borrowing Capacity | 8,700,000 | $ 250 | ||
Credit facility, O-Bank | ||||
Short-term Debt [Line Items] | ||||
Line of Credit, Current | 4,000,000 | 4,000,000 | ||
Collateral value | 4,821,799 | 4,984,135 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 4,000,000 | |||
Debt Instrument, Description of Variable Rate Basis | 0.50% | |||
Credit facility, KGI | ||||
Short-term Debt [Line Items] | ||||
Line of Credit, Current | $ 1,540,000 | 1,540,000 | ||
Collateral value | 2,357,961 | 2,481,926 | ||
Line of Credit Facility, Maximum Borrowing Capacity | 3,100,000 | |||
Credit facility, FEIB [Member] | ||||
Short-term Debt [Line Items] | ||||
Line of Credit, Current | 1,850,000 | 1,850,000 | ||
Collateral value | 2,865,127 | 2,961,588 | ||
Line of Credit Facility, Maximum Borrowing Capacity | 2,500,000 | |||
Credit Facility E Sun Bank | ||||
Short-term Debt [Line Items] | ||||
Line of Credit, Current | 600,000 | |||
Collateral value | 1,000,000 | 1,000,000 | ||
Line of Credit Facility, Maximum Borrowing Capacity | 3,000,000 | |||
Credit Facility E Sun Bank 2 | ||||
Short-term Debt [Line Items] | ||||
Line of Credit, Current | 454,227 | |||
Collateral value | 1,642,207 | |||
Line of Credit Facility, Maximum Borrowing Capacity | 7,000,000 | 200 | ||
Credit Facility, TSIB | ||||
Short-term Debt [Line Items] | ||||
Line of Credit, Current | 2,200,000 | 2,200,000 | ||
Collateral value | 3,065,801 | 3,065,801 | ||
Line of Credit Facility, Maximum Borrowing Capacity | 6,000,000 | |||
Credit Facility, TSIB 2 | ||||
Short-term Debt [Line Items] | ||||
Line of Credit, Current | 3,721,171 | 234,760 | ||
Collateral value | 3,721,171 | $ 234,760 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 7,000,000 | $ 200 | ||
LIBOR | Credit facility, KGI | ||||
Short-term Debt [Line Items] | ||||
Debt Instrument, Description of Variable Rate Basis | 0.90% | |||
LIBOR | Credit facility, FEIB [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt Instrument, Description of Variable Rate Basis | 0.50% | |||
LIBOR | Credit Facility E Sun Bank | ||||
Short-term Debt [Line Items] | ||||
Debt Instrument, Description of Variable Rate Basis | 0.40% | |||
Adjustable rates for loans | Credit facility, CUB | ||||
Short-term Debt [Line Items] | ||||
Debt Instrument, Description of Variable Rate Basis | 0.41% | |||
Adjustable rates for loans | Credit Facility E Sun Bank 2 | ||||
Short-term Debt [Line Items] | ||||
Debt Instrument, Description of Variable Rate Basis | 0.10% | |||
1 month TAIBOR rate | Credit facility, CUB | ||||
Short-term Debt [Line Items] | ||||
Debt Instrument, Description of Variable Rate Basis | 0.80% | |||
Cost of funds plus a margin | Credit Facility, TSIB | ||||
Short-term Debt [Line Items] | ||||
Debt Instrument, Description of Variable Rate Basis | 0.70% | |||
Cost of funds plus a margin | Credit Facility, TSIB 2 | ||||
Short-term Debt [Line Items] | ||||
Debt Instrument, Description of Variable Rate Basis | 0.625% |
COMMISSIONS PAYABLE TO SALES _3
COMMISSIONS PAYABLE TO SALES PROFESSIONALS (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Total commissions payable to sales professionals | $ 9,840,217 | $ 14,003,541 |
Taiwan | ||
Total commissions payable to sales professionals | 9,625,456 | 13,793,343 |
PRC | ||
Total commissions payable to sales professionals | $ 214,761 | $ 210,198 |
OTHER CURRENT LIABILITIES (Deta
OTHER CURRENT LIABILITIES (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
OTHER CURRENT LIABILITIES | ||
Accrued bonus | $ 5,463,307 | $ 6,645,496 |
Payroll payable and other benefits | 1,742,262 | 2,188,074 |
Accrued business tax and tax withholdings | 1,323,088 | 1,903,039 |
Proceeds from receipts in advance of disposal of a subsidiary | 2,317,971 | |
Execution fees payable | 1,153,039 | 1,191,858 |
Other accrued expenses | 1,827,287 | 2,069,136 |
Total other current liabilities | $ 13,826,954 | $ 13,997,603 |
OTHER CURRENT LIABILITIES - Add
OTHER CURRENT LIABILITIES - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Accrued bonus amount | $ 2,932,572 | $ 4,059,901 | |
Accrued bonus current | 5,463,307 | 6,645,496 | |
Compensation Plan [Member] | |||
Debt Instrument [Line Items] | |||
Bonus expense | 72,905 | $ 91,896 | |
Accrued bonus current | $ 2,530,735 | $ 2,585,595 |
OTHER LIABILITIES - Other noncu
OTHER LIABILITIES - Other noncurrent liabilities (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
OTHER LIABILITIES | ||
Due to previous shareholders of AHFL | $ 524,109 | $ 541,754 |
Total other liabilities | $ 524,109 | $ 541,754 |
OTHER LIABILITIES - Additional
OTHER LIABILITIES - Additional Information (Details) $ in Millions | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Mar. 27, 2019TWD ($) |
OTHER LIABILITIES | |||
Amount due to previous shareholders to AHFL | $ 524,109 | $ 541,754 | $ 15 |
CONTRACTS WITH CUSTOMERS - Cont
CONTRACTS WITH CUSTOMERS - Contract balance (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
CONTRACTS WITH CUSTOMERS | ||
Accounts receivable | $ 18,315,305 | $ 26,761,678 |
Contract assets | $ 457,917 | $ 0 |
CONTRACTS WITH CUSTOMERS - Reve
CONTRACTS WITH CUSTOMERS - Revenue and refund for each contract (Details) | Mar. 15, 2022TWD ($) | Jun. 14, 2017TWD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2022TWD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2022TWD ($) | Dec. 31, 2021USD ($) |
Basic Business Promotion Fees | $ 50,000,000 | $ 33,000,000 | |||||
Execution Fee Amount Payable | $ 1,153,039 | $ 1,191,858 | |||||
First Year [Member] | |||||||
Basic Business Promotion Fees | 50,000,000 | ||||||
Second Year [Member] | |||||||
Basic Business Promotion Fees | $ 35,000,000 | ||||||
AIATW [Member] | |||||||
Execution Fee Amount Payable | 1,153,039 | $ 33,000,000 | $ 1,191,858 | ||||
Revenue Amount | $ 22,135 | $ 619,428 | $ 0 |
LEASE - Operating lease right-o
LEASE - Operating lease right-of-use assets and lease liabilities (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
LEASE | ||
Right-of-use assets under operating leases | $ 6,594,686 | $ 6,449,182 |
Operating lease liabilities - current | 3,312,917 | 3,059,329 |
Operating lease liabilities - noncurrent | $ 3,250,652 | $ 3,298,089 |
LEASE - Lease term and discount
LEASE - Lease term and discount rate (Details) | Mar. 31, 2022 | Dec. 31, 2021 |
LEASE | ||
Weighted average remaining lease term, Operating lease | 2 years 2 months 23 days | 2 years 3 months 21 days |
Weighted average discount rate, Operating lease | 3.19% | 2.80% |
LEASE - Supplemental cash flow
LEASE - Supplemental cash flow information related to leases (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows related to operating leases | $ 1,232,314 | $ 1,142,714 |
Amortization of right-of-use assets under operating leases | $ 951,111 | $ 877,022 |
LEASE - Minimum future lease pa
LEASE - Minimum future lease payments (Details) | Mar. 31, 2022USD ($) |
LEASE | |
2022 (reminder of year) | $ 2,705,341 |
2023 | 2,577,470 |
2024 | 1,292,693 |
2025 | 178,775 |
2026 | 12,074 |
Thereafter | 0 |
Total minimum lease payments | 6,766,353 |
Less: Interest | (202,784) |
Present value of future minimum lease payments | $ 6,563,569 |
LEASE - Additional Information
LEASE - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
LEASE | ||
Operating Lease, Cost | $ 1,370,536 | $ 1,020,873 |
NONCONTROLLING INTERESTS (Detai
NONCONTROLLING INTERESTS (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Noncontrolling Interests [Line Items] | |||
Net Income (Loss) | $ 1,739,281 | $ 5,422,847 | |
Other Comprehensive Income (Loss) | (1,041,836) | 400,727 | |
Noncontrolling Interests | $ 31,116,760 | $ 30,419,315 | $ 24,595,741 |
Law Enterprise | |||
Schedule Of Noncontrolling Interests [Line Items] | |||
% of Non-controlling Interests | 34.05% | 34.05% | |
Net Income (Loss) | $ (82,974) | $ (264,642) | |
Other Comprehensive Income (Loss) | (5,870) | 3,433 | |
Noncontrolling Interests | $ (765,010) | $ (676,166) | (414,957) |
Law Broker | |||
Schedule Of Noncontrolling Interests [Line Items] | |||
% of Non-controlling Interests | 34.05% | 34.05% | |
Net Income (Loss) | $ 1,650,826 | $ 5,444,673 | |
Other Comprehensive Income (Loss) | (1,018,942) | 394,258 | |
Noncontrolling Interests | $ 31,648,087 | $ 31,016,203 | 25,177,272 |
Uniwill | |||
Schedule Of Noncontrolling Interests [Line Items] | |||
% of Non-controlling Interests | 50.00% | 50.00% | |
Net Income (Loss) | $ 149,554 | $ 466,934 | |
Other Comprehensive Income (Loss) | (16,158) | 2,903 | |
Noncontrolling Interests | $ 182,198 | $ 48,802 | (421,035) |
Rays | |||
Schedule Of Noncontrolling Interests [Line Items] | |||
% of Non-controlling Interests | 1.00% | 1.00% | |
Net Income (Loss) | $ (55) | $ (689) | |
Noncontrolling Interests | $ (6,516) | $ (6,461) | (5,772) |
PFAL | |||
Schedule Of Noncontrolling Interests [Line Items] | |||
% of Non-controlling Interests | 49.00% | 49.00% | |
Net Income (Loss) | $ 21,930 | $ (63,441) | |
Other Comprehensive Income (Loss) | (866) | 3,519 | |
Noncontrolling Interests | $ 385,120 | $ 364,056 | 423,978 |
MKI | |||
Schedule Of Noncontrolling Interests [Line Items] | |||
% of Non-controlling Interests | 49.00% | 49.00% | |
Net Income (Loss) | $ (161,090) | ||
Impact from Liquidation of PA Taiwan | (165,297) | ||
Noncontrolling Interests | $ (327,119) | $ (327,119) | (732) |
PA Taiwan | |||
Schedule Of Noncontrolling Interests [Line Items] | |||
% of Non-controlling Interests | 49.00% | ||
Net Income (Loss) | $ 1,102 | ||
Other Comprehensive Income (Loss) | (3,386) | ||
Impact from Liquidation of PA Taiwan | $ 165,297 | ||
Noncontrolling Interests | $ (163,013) |
INCOME TAX - Effective Income t
INCOME TAX - Effective Income tax rate reconciliation (Details) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
INCOME TAX | ||
U.S. statutory rate | 21.00% | 21.00% |
Tax rate difference | (2.00%) | (2.00%) |
Change in valuation allowance | 8.00% | 4.00% |
Income tax on undistributed earnings | 4.00% | 4.00% |
Utilization of deferred tax assets not previously recognized | (2.00%) | (1.00%) |
Non-deductible and non-taxable items | 1.00% | |
True up of prior year income tax | (1.00%) | |
Effective tax rate | 25.00% | 26.00% |
INCOME TAX - Additional Informa
INCOME TAX - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2022USD ($) | Mar. 31, 2022HKD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2021HKD ($) | Dec. 31, 2020 | Dec. 31, 2018USD ($) | Dec. 31, 2021USD ($) | |
Schedule of Income Tax [Line Items] | |||||||
Tax per financial statements | 25.00% | 25.00% | 26.00% | ||||
Net loss | $ 4,684,158 | $ 4,036,782 | |||||
Effective Income Tax Rate Reconciliation, At Federal Statutory Income Tax Rate | 21.00% | 21.00% | 21.00% | ||||
Percentage Of Undistributed Earnings | 5.00% | 5.00% | |||||
Undistributed Earnings, Diluted | $ 1,199,195 | ||||||
Accrued Income Taxes, Noncurrent | $ 539,636 | $ 539,636 | |||||
Current Tax payable | $ 5,087,907 | 3,893,047 | |||||
Taiwan Dollar (TWD) | |||||||
Schedule of Income Tax [Line Items] | |||||||
Additional Income Tax Rate On Undistributed Earnings | 5.00% | 5.00% | |||||
Effective Income Tax Rate Reconciliation, At Federal Statutory Income Tax Rate | 20.00% | 20.00% | |||||
Taxes Payable, Current | $ 4,904,891 | 3,703,412 | |||||
USA | |||||||
Schedule of Income Tax [Line Items] | |||||||
Accrued Income Taxes, Noncurrent | 539,636 | ||||||
Current Tax payable | $ 179,879 | ||||||
HONG KONG | |||||||
Schedule of Income Tax [Line Items] | |||||||
Tax per financial statements | 8.25% | 8.25% | 16.25% | ||||
Net loss | $ 2 | $ 2 | |||||
Taxes Payable, Current | $ 3,137 | $ 9,756 | |||||
Subsidiary [Member] | |||||||
Schedule of Income Tax [Line Items] | |||||||
Tax per financial statements | 25.00% | 25.00% |
RELATED PARTY TRANSACTIONS - Du
RELATED PARTY TRANSACTIONS - Due to related parties (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Related Party Transaction [Line Items] | ||
Due to related parties, Total | $ 36,844 | $ 50,531 |
Ms.Lu (A shareholder of Anhou) | ||
Related Party Transaction [Line Items] | ||
Due to related parties, Total | 25,654 | 41,311 |
Others | ||
Related Party Transaction [Line Items] | ||
Due to related parties, Total | $ 11,190 | $ 9,220 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
COMMITMENTS AND CONTINGENCIES. | ||
Surplus Bonus Percentage | 1.25% | |
Compensation expenses | $ 72,905 | $ 62,208 |
Number of years | 3 years | |
Performance Bonus | $ 0 | $ 29,689 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Current assets | |||
Cash and cash equivalents | $ 20,595,428 | $ 18,234,350 | |
Accounts receivable and notes receivable | 18,315,305 | 26,761,678 | |
Other current assets | 1,173,425 | 1,207,496 | |
Total current assets | 110,310,328 | 110,502,700 | |
Right-of-use assets under operating leases | 6,594,686 | 6,449,182 | |
Property and equipment, net | 1,823,211 | 2,061,755 | |
Prepaid expenses - intangible assets | 359,759 | 333,118 | |
Long-term Investments | 2,594,564 | 2,696,812 | |
Restricted cash - noncurrent | 13,650 | 88,282 | |
Deferred tax assets | 698,750 | 909,032 | |
Other assets | 4,733,347 | 4,740,640 | |
TOTAL ASSETS | 127,128,295 | 127,781,521 | |
Current liabilities | |||
Commissions payable to sales professionals | 9,840,217 | 14,003,541 | |
Other current liabilities | 13,826,954 | 13,997,603 | |
Due to related parties - Ms. Lu (the shareholder of Law Anhou) | 524,109 | 541,754 | |
Total current liabilities | 51,693,852 | 53,839,983 | |
Operating lease liabilities - noncurrent | 3,250,652 | 3,298,089 | |
TOTAL LIABILITIES | 56,384,771 | 58,608,660 | |
Revenue | 30,980,523 | $ 30,530,117 | |
Net loss | 4,684,158 | 4,036,782 | |
Net cash used in operating activities | 7,599,296 | 6,445,228 | |
Net cash provided by (used in) investing activities | (5,331,480) | 199,142 | |
Net cash used in financing activities | 1,054,769 | 2,171,143 | |
Zhengzhou Zhonglia Hengfu Business Consulting Co., Limited | |||
Current assets | |||
Cash and cash equivalents | 2,808,564 | 1,001,974 | |
Accounts receivable and notes receivable | 731,192 | 455,884 | |
Other current assets | 173,360 | 120,113 | |
Total current assets | 3,713,116 | 1,577,971 | |
Right-of-use assets under operating leases | 1,400,738 | 1,528,856 | |
Property and equipment, net | 209,016 | 199,056 | |
Prepaid expenses - intangible assets | 20,389 | 9,377 | |
Long-term Investments | 47,306 | 47,179 | |
Restricted cash - noncurrent | 856 | 72,870 | |
Registered capital deposits | 1,103,796 | 1,100,842 | |
Deferred tax assets | 74,709 | ||
Other assets | 84,176 | 83,951 | |
TOTAL ASSETS | 6,579,393 | 4,694,811 | |
Current liabilities | |||
Commissions payable to sales professionals | 214,761 | 210,198 | |
Other current liabilities | 3,312,953 | 1,117,738 | |
Due to related parties - Ms. Lu (the shareholder of Law Anhou) | 25,654 | 41,311 | |
Total current liabilities | 3,553,368 | 1,369,247 | |
Operating lease liabilities - noncurrent | 807,009 | 908,971 | |
TOTAL LIABILITIES | 4,360,377 | $ 2,278,218 | |
Revenue | 1,347,816 | 1,951,469 | |
Net loss | (201,946) | (50,781) | |
Net cash used in operating activities | (472,033) | (449,692) | |
Net cash provided by (used in) investing activities | 2,290,667 | (7,292) | |
Net cash used in financing activities | $ (15,760) | $ (7,714) |
VARIABLE INTEREST ENTITIES - Ad
VARIABLE INTEREST ENTITIES - Additional information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Variable Interest Entity [Line Items] | ||
Revenue | $ 30,980,523 | $ 30,530,117 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Revenue | $ 1,347,816 | $ 1,951,469 |
SEGMENT REPORTING - Revenue by
SEGMENT REPORTING - Revenue by major customers by reporting segments (Details) | 3 Months Ended | |
Mar. 31, 2022USD ($)segment | Mar. 31, 2021USD ($) | |
Schedule of Geographical Sales [Line Items] | ||
Number of operating segments | segment | 3 | |
Revenue | ||
Total revenue | $ 30,980,523 | $ 30,530,117 |
Income (loss) from operations | ||
Total income from operations | 5,313,815 | 4,886,654 |
Non operating income (expense) | ||
Total non-operating income (expense) | 952,240 | 548,934 |
Net income | ||
Net income | 4,684,158 | 4,036,782 |
Elimination adjustment | ||
Revenue | ||
Total revenue | (955,472) | (383,837) |
Income (loss) from operations | ||
Total income from operations | 217,810 | 138,350 |
Non operating income (expense) | ||
Total non-operating income (expense) | (174,374) | (134,569) |
Net income | ||
Net income | 43,435 | 62 |
Taiwan Dollar (TWD) | ||
Revenue | ||
Total revenue | 30,505,357 | 28,851,500 |
Income (loss) from operations | ||
Total income from operations | 5,213,523 | 4,690,729 |
Non operating income (expense) | ||
Total non-operating income (expense) | 860,527 | 587,469 |
Net income | ||
Net income | 4,570,169 | 3,933,490 |
PRC | ||
Revenue | ||
Total revenue | 1,347,816 | 1,951,469 |
Income (loss) from operations | ||
Total income from operations | (155,919) | (3,918) |
Non operating income (expense) | ||
Total non-operating income (expense) | 256,585 | 96,152 |
Net income | ||
Net income | 25,798 | 46,918 |
Hong Kong | ||
Revenue | ||
Total revenue | 82,822 | 110,985 |
Income (loss) from operations | ||
Total income from operations | 38,401 | 61,493 |
Non operating income (expense) | ||
Total non-operating income (expense) | 9,502 | (118) |
Net income | ||
Net income | $ 44,756 | $ 56,312 |
SEGMENT REPORTING - Geographica
SEGMENT REPORTING - Geographical distribution (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Reportable assets | ||
Total reportable assets | $ 127,128,295 | $ 127,781,521 |
Long-lived assets | ||
Total long-lived assets | 8,417,897 | 8,510,937 |
Capital investments (CAPEX cash flows) | ||
Total capital investments | 69,500 | 674,948 |
Elimination adjustment | ||
Reportable assets | ||
Total reportable assets | (78,832,414) | (81,283,249) |
Long-lived assets | ||
Total long-lived assets | (2,906) | (2,905) |
Taiwan Dollar (TWD) | ||
Reportable assets | ||
Total reportable assets | 190,952,606 | 195,981,770 |
Long-lived assets | ||
Total long-lived assets | 6,809,903 | 6,784,644 |
Capital investments (CAPEX cash flows) | ||
Total capital investments | 43,515 | 595,591 |
PRC | ||
Reportable assets | ||
Total reportable assets | 14,209,455 | 12,326,308 |
Long-lived assets | ||
Total long-lived assets | 1,609,754 | 1,727,911 |
Capital investments (CAPEX cash flows) | ||
Total capital investments | 25,985 | 79,203 |
Hong Kong | ||
Reportable assets | ||
Total reportable assets | 798,648 | 756,692 |
Long-lived assets | ||
Total long-lived assets | $ 1,146 | 1,287 |
Capital investments (CAPEX cash flows) | ||
Total capital investments | $ 154 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - AIATW [Member] $ in Millions | May 06, 2022USD ($) | May 06, 2022TWD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2022TWD ($) |
Subsequent Event [Line Items] | ||||
Execution Fees | $ 1,159,039 | $ 33 | ||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Execution Fees | $ 1,159,039 | $ 33 | ||
Refund Amount | $ 807,127 | $ 23.1 |