Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Jun. 30, 2014 | Aug. 13, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'eBullion, Inc. | ' |
Entity Central Index Key | '0001573766 | ' |
Amendment Flag | 'false | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Current Fiscal Year End Date | '--03-31 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 51,260,000 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Mar. 31, 2014 | ||
Current Assets: | ' | ' | ||
Cash | $1,661,229 | $808,039 | ||
Commissions receivable | 314,322 | 34,125 | ||
Deposits and prepaid expenses | 52,253 | 58,368 | ||
Prepaid income taxes | 96,380 | 96,305 | ||
Loan receivable from eBullion Trade | ' | 997,049 | ||
Total current assets | 2,124,184 | 1,993,886 | ||
Noncurrent Assets: | ' | ' | ||
Deposits and prepaid expenses | 219,254 | 219,913 | ||
Equipment, net | 285,618 | 305,842 | ||
Deferred income taxes | 2,744 | 150 | ||
Total noncurrent assets | 507,616 | 525,905 | ||
Total assets | 2,631,800 | 2,519,791 | ||
Current Liabilities: | ' | ' | ||
Accounts payable and accrued liabilities | 85,624 | 66,658 | ||
Customer deposits | 76,129 | 38,990 | ||
Income taxes | 61,920 | 40,091 | ||
Total current liabilities | 223,673 | 145,739 | ||
Total liabilities | 223,673 | 145,739 | ||
Commitments | ' | ' | ||
Shareholders' Equity | ' | ' | ||
Common stock, $0.0001 par value, 500,000,000 shares authorized, 51,260,000 shares issued and outstanding | 5,126 | 5,126 | ||
Additional paid in capital (1) | 1,544,596 | [1] | 1,544,596 | [1] |
Retained earnings | 858,350 | 825,347 | ||
Accumulated other comprehensive income (loss) | 55 | -1,017 | ||
Total shareholders' equity | 2,408,127 | 2,374,052 | ||
Total liabilities and shareholders' equity | $2,631,800 | $2,519,791 | ||
[1] | The capital accounts of the Company have been retroactively restated to reflect the equivalent number of common shares based on the exchange ratio of the merger transaction in determining the basic and diluted weighted average shares. See note 1. |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
Balance Sheets [Abstract] | ' | ' |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 51,260,000 | 51,260,000 |
Common stock, shares outstanding | 51,260,000 | 51,260,000 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | |||
REVENUES | ' | ' | ||
Commission revenues | $708,527 | $1,168,242 | ||
EXPENSES | ' | ' | ||
General and administrative | 432,318 | 584,696 | ||
Employee compensation and benefits | 206,250 | 184,245 | ||
Depreciation and amortization | 20,169 | 19,856 | ||
Total expenses | 658,737 | 788,797 | ||
INCOME BEFORE INTEREST AND INCOME TAXES | 49,790 | 379,445 | ||
Interest income, net | 2,413 | 108 | ||
INCOME BEFORE INCOME TAXES | 52,203 | 379,553 | ||
PROVISION FOR INCOME TAXES | ' | ' | ||
Current | 21,793 | 71,584 | ||
Deferred | -2,593 | -2,486 | ||
Total provision for income taxes | 19,200 | 69,098 | ||
NET INCOME | 33,003 | 310,455 | ||
OTHER COMPREHENSIVE INCOME | ' | ' | ||
Foreign currency translation | 1,072 | 2,103 | ||
COMPREHENSIVE INCOME | $34,075 | $312,558 | ||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | ' | ' | ||
Basic and diluted (1) | 51,260,000 | [1] | 51,260,000 | [1] |
BASIC AND DILUTED EARNINGS PER COMMON SHARE | ' | ' | ||
Basic and diluted earnings per common share | $0 | $0.01 | ||
[1] | The capital accounts of the Company have been retroactively restated to reflect the equivalent number of common shares based on the exchange ratio of the merger transaction in determining the basic and diluted weighted average shares. See note 1. |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Shareholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | |
Beginning Balance at Mar. 13, 2013 | [1] | $2,129,412 | $5,076 | $1,304,602 | $821,982 | ($2,248) |
Beginning Balance, shares at Mar. 13, 2013 | [1] | ' | 50,760,000 | ' | ' | ' |
Proceeds from private placement | 240,044 | 50 | 239,994 | ' | ' | |
Proceeds from private placement, shares | ' | 500,000 | ' | ' | ' | |
Recapitalization | -21,058 | ' | ' | -21,058 | ' | |
Net income | 24,423 | ' | ' | 24,423 | ' | |
Foreign currency translation adjustment | 1,231 | ' | ' | ' | 1,231 | |
Balance at Mar. 31, 2014 | 2,374,052 | 5,126 | 1,544,596 | 825,347 | -1,017 | |
Balance, shares at Mar. 31, 2014 | ' | 51,260,000 | ' | ' | ' | |
Net income | 33,003 | ' | ' | 33,003 | ' | |
Foreign currency translation adjustment | 1,072 | ' | ' | ' | 1,072 | |
Balance at Jun. 30, 2014 | $2,408,127 | $5,126 | $1,544,596 | $858,350 | $55 | |
Balance, shares at Jun. 30, 2014 | ' | 51,260,000 | ' | ' | ' | |
[1] | The capital accounts of the Company have been retroactively restated to reflect the equivalent number of common shares based on the exchange ratio of the merger transaction in determining the basic and diluted weighted average shares. See note 1. |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
OPERATING ACTIVITIES: | ' | ' |
Net income | $33,003 | $310,455 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ' | ' |
Depreciation and amortization | 20,169 | 19,856 |
Changes in operating assets and liabilities: | ' | ' |
Commissions receivable | -280,111 | 314,215 |
Deposits and prepaid expenses | 6,987 | 82,032 |
Accounts payable and accrued liabilities | 18,615 | 16,865 |
Customer deposits | 37,101 | 227,955 |
Income taxes payable | 21,793 | 71,584 |
Deferred income taxes | -2,593 | -2,486 |
Net cash provided by (used in) operating activities | -145,036 | 1,040,476 |
INVESTING ACTIVITIES: | ' | ' |
Purchase of equipment | ' | -45,094 |
Loan receivable from eBullion Trade | 997,604 | ' |
Net cash provided by (used in) investing activities | 997,604 | -45,094 |
FINANCING ACTIVITIES: | ' | ' |
Bank overdraft | ' | 20,904 |
Net proceeds from private placement | ' | 240,044 |
Net cash provided by financing activities | ' | 260,948 |
NET INCREASE IN CASH | 852,568 | 1,256,330 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 622 | 2,113 |
Cash, beginning of period | 808,039 | 1,415,629 |
Cash, end of period | 1,661,229 | 2,674,072 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ' | ' |
Cash paid during the year for income taxes | ' | ' |
Nature_of_Operations_and_Basis
Nature of Operations and Basis of Presentation | 3 Months Ended | |
Jun. 30, 2014 | ||
Nature of Operations and Basis of Presentation [Abstract] | ' | |
Nature of Operations and Basis of Presentation | ' | |
1 | Nature of Operations and Basis of Presentation | |
eBullion, Inc. (“eBullion” or “the Company”) was incorporated in Delaware on January 28, 2013. On April 3, 2013, the Company’s shareholders exchanged 100% of their shares for 100% of the shares of Man Loong Bullion Company Limited (“Man Loong”) a company which was incorporated in Hong Kong in 1974, and in 2007, was re-registered under Hong Kong law as a limited liability company. Upon completion of this transaction, Man Loong became a 100% owned subsidiary of eBullion. This transaction was accounted for as a reverse take-over. | ||
The Company provides trading services for gold and silver trading positions on Man Loong’s proprietary, 24-hour electronic trading platform, and its telephone transaction system located in Hong Kong. The Company is licensed through the Chinese Gold and Silver Exchange Society (“CGSE”) a self-regulatory organization located in Hong Kong which acts as an exchange for the trading of Kilo gold and Loco London gold and silver price indices quoted on the London Metals Exchange. | ||
The Company is not a counter party for trades entered through its trading platform and telephone transaction system, and instead, contracts with agents who pay Man Loong a fixed commission on each trade that the Company executes for its agents and their customers. | ||
Reverse Merger Accounting | ||
The share exchange transaction (the “Merger”) completed on April 3, 2013 was accounted for as a recapitalization in accordance with Accounting Principles Generally Accepted in the United States of America (“U.S. GAAP”). Man Loong was the acquirer for financial reporting purposes and eBullion was the acquired company. Consequently, the assets and liabilities and the results of operations that are reflected in the historical financial statements prior to the Merger are those of Man Loong and are recorded using the historical cost basis. The consolidated financial statements after completion of the Merger include the assets and liabilities of eBullion and Man Loong, historical results of operations of Man Loong and results of operations of eBullion from the closing date of the Merger. Common stock and the corresponding capital amounts of the Company pre-Merger have been retroactively restated reflecting the exchange ratio in the Merger. In conjunction with the Merger, Man Loong received no cash and assumed no liabilities of eBullion. All members of eBullion’s executive management are from Man Loong. | ||
Basis of Presentation | ||
The Company’s unaudited condensed consolidated financial statements are expressed in U.S. Dollars and are presented in accordance with U.S. GAAP and the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, the unaudited financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited condensed consolidated interim financial statements reflect all adjustments of a normal and recurring nature which are considered necessary for a fair presentation of the results of operations for the interim periods presented. However, the results of operations for these interim periods are not necessarily indicative of the results that may be expected for the year ended March 31, 2015. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company’s registration statement on Form S-1. The Company’s and Man Loong’s fiscal year end is March 31. | ||
Principles of Consolidation | ||
The unaudited condensed consolidated financial statements as of June 30, and March 31, 2014, and for the three months ended June 30, 2014 and 2013, include the accounts of eBullion and its wholly owned subsidiary, Man Loong. All significant intercompany transactions have been eliminated. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||
Summary of Significant Accounting Policies | ' | ||||||||
2. Summary of Significant Accounting Policies | |||||||||
Use of Estimates | |||||||||
The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Changes in these estimates are recorded when known. Significant estimates made by management include: | |||||||||
● | Valuation of assets and liabilities | ||||||||
● | Useful lives of equipment | ||||||||
● | Accounting for transactions with variable interest entities | ||||||||
● | Other matters that affect the reported amounts and disclosures of contingencies in the condensed consolidated financial statements. | ||||||||
Actual results could differ from those estimates. | |||||||||
Reclassifications | |||||||||
Certain reclassifications have been made to amounts reported in the previous periods to conform to the current presentation. Such reclassifications had no effect on net income. | |||||||||
Revenue Recognition | |||||||||
The Company recognizes revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 605, Revenue Recognition, which requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence that an arrangement exists; (2) delivery has occurred or services have been rendered; (3) the fee is fixed and determinable; and (4) collectability is reasonably assured. The Company is not a counter party for trades executed through its trading platform and telephone transaction system and, instead, recognizes revenue to the extent of the flat-fee commission it receives on each trade processed for its agents and their customers. | |||||||||
Advertising | |||||||||
Advertising costs are incurred for the production and communication of advertising, as well as other marketing activities. The Company expenses the cost of advertising as incurred. The Company did not capitalize any production costs associated with advertising for the three months ended June 30, 2014 and 2013. The total amount charged to advertising expense was $2,634 and $361 for the three months ended June 30, 2014 and 2013, respectively. | |||||||||
Cash and cash equivalents | |||||||||
Cash and cash equivalents consist primarily of cash on deposit, certificates of deposits, money market accounts, and investment grade commercial paper that are readily convertible to cash and purchased with original maturities of three months or less. As of June 30, 2014 and 2013, the Company had no cash equivalents. | |||||||||
Fair Value of Financial Instruments | |||||||||
ASC 820, “Fair Value Measurements”, defines fair value and establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The carrying amounts reported in the balance sheets for cash, commissions and related party receivables, loan receivable from eBullion Trade, bank overdraft, accounts payable and accrued expenses and customer deposits qualify as financial instruments and are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. | |||||||||
The standard establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy defined by the standard are as follows: | |||||||||
Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, listed equities and U.S. government treasury securities. | |||||||||
Level 2 - Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category include non-exchange-traded derivatives such as over the counter forwards, options and repurchase agreements. | |||||||||
Level 3 - Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value from the perspective of a market participant. Level 3 instruments include those that may be more structured or otherwise tailored to customers’ needs. | |||||||||
Commissions Receivable | |||||||||
Commissions receivable represent commissions to be collected from agents for their customers’ trades executed across Man Loong’s electronic trade platform and telephone transaction system through the balance sheet date. Commissions receivable are typically remitted to the Company within 30 days of trade execution. The Company has not historically incurred credit losses on these commissions receivable. As of June 30, and March 31, 2014, the Company has no reserve for credit losses nor has it incurred any bad debts for the three months ended June 30, 2014 and 2013. | |||||||||
Deposits and Prepaid Expenses | |||||||||
The Company records goods and services paid for but not received until a future date as deposits and prepaid expenses. These primarily include deposits and prepayments for occupancy related expenses. Deposit or prepaid expenses which will be realized more than 12 months past the balance sheet date are classified as non-current assets in the accompanying condensed consolidated balance sheets. | |||||||||
Equipment | |||||||||
Equipment is stated at cost. The cost of an asset consists of its purchase price and any directly attributable costs of bringing the asset to its present working condition and location for its intended use. | |||||||||
Equipment is depreciated using the straight-line method over the estimated useful lives of the assets as follows: | |||||||||
Office equipment | 5 years | ||||||||
Furniture and fixtures | 5 years | ||||||||
Computer equipment | 5 years | ||||||||
Expenditures for maintenance and repairs are charged to expense as incurred. Additions, renewals and betterments are capitalized. | |||||||||
Gain or loss on disposal of equipment is the difference between net sales proceeds and the carrying amount of the relevant assets, if any, and is recognized as income or loss in the accompanying condensed consolidated statements of comprehensive income. | |||||||||
Variable Interest Entity | |||||||||
A variable interest entity (“VIE”) is a legal entity, other than an individual, used for business purposes that either (a) has equity investors that do not provide sufficient financial resources for the entity to support its activities, or (b) the equity investors lack any one of the following three criteria: | |||||||||
● | The power to direct activities that most significantly impact the entity’s economic performance | ||||||||
● | The obligation to absorb the expected losses of the entity | ||||||||
● | The right to receive the expected residual returns. | ||||||||
A VIE is required to be consolidated by a reporting entity if it has a controlling financial interest in the VIE. A reporting entity is deemed to have a controlling financial interest in a VIE if it both has the power to direct the activities that most significantly impact the VIE’s economic performance and the obligation to absorb the losses or the right to receive economic benefits from the VIE that could potentially be significant to the VIE. | |||||||||
Reporting Currency and Foreign Currency Translation | |||||||||
As of and for the three months ended June 30, 2014 and 2013, the accounts of the Company were maintained in their functional currencies, which is the U.S. dollar for eBullion and the Hong Kong dollar ("HK dollar") for Man Loong. The financial statements of Man Loong have been translated into U.S. dollars which is its reporting currency. All assets and liabilities of Man Loong are translated at the exchange rate on the balance sheet date, shareholders’ equity is translated at historical rates and the statements of comprehensive income, and statements of cash flows are translated at the weighted average exchange rate for the periods. The resulting translation adjustments for the period are reported under other comprehensive income and accumulated translation adjustments are reported as a separate component of shareholders’ equity. | |||||||||
Foreign exchange rates at June 30 and March 31, 2014 and for the three months ended June 30, 2014 and 2013 are as follows: | |||||||||
2014 | 2013 | ||||||||
Period end USD/HKD exchange rate | 7.7511 | 7.7557 | |||||||
Average USD/HKD exchange rate: | 7.7527 | 7.7615 | |||||||
Long-Lived Assets | |||||||||
The Company periodically evaluates the carrying value of long-lived assets when events and circumstances warrant such review. The carrying value of a long-lived assets is considered impaired when the anticipated undiscounted cash flow from such an asset is separately identifiable and is less than the carrying value. In that event, a loss is recognized in the amount by which the carrying value exceeds the fair market value of the long-lived asset. The Company has identified no such impairment losses. | |||||||||
Accounts payable and accrued liabilities | |||||||||
Accounts payable and accrued liabilities at June 30 and March 31, 2014 primarily consist of accrued statutory bonus payable to employees in Hong Kong, audit fees payable to the Company’s auditors and accountants and legal fees payable to the Company’s legal counsel. | |||||||||
Customer Deposits | |||||||||
Customer deposits at June 30 and March 31, 2014 were accepted pursuant to the Company’s agreements with certain of its independent agents. Under terms of those agreements, the Company’s accepts margin deposits for certain of the agents’ customers who prefer that the Company hold those deposits. If an agent’s customer suffers a trading loss equaling 80% or more of the customers’ deposit balance, the customer is required to increase the balance of his deposit or the customer’s trading position is closed and the remaining deposit balance is remitted to the agent in order to fund the customers’ trading losses. | |||||||||
Accordingly, the Company had no risk of loss related to customer deposits at June 30 and March 31, 2014 and for the three months ended June 30, 2014 and 2013. | |||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||
The Company’s accumulated other comprehensive income (loss) as of June 30 and March 31, 2014 consists of adjustments resulting from translating Man Loong’s functional currency, the HK dollar, to its reporting currency, the U.S. dollar. | |||||||||
Income Taxes | |||||||||
The Company utilizes ASC 740, Income Taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income 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 period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. | |||||||||
The Company has adopted the provisions of the interpretation, of ASC 740, Accounting for Uncertainty in Income Taxes. The Company did not have any material unrecognized tax benefits and there was no effect on its financial condition or results of operations as a result of implementing the interpretation. The Company files income tax returns in the United States and we are subject to federal income tax examinations for the fiscal years ended March 31, 2014 and 2013. Man Loong files income tax returns in Hong Kong and is no longer subject to tax examinations by tax authorities for years before 2007. At June 30 and March 31, 2014, Man Loong had no uncertain tax positions. | |||||||||
We have not provided for U.S. income and foreign withholding taxes on approximately $99,000 of Man Loong’s undistributed earnings for the three months ended June 30, 2014, because such earnings have been retained and reinvested by Man Loong. The Company does not intend to require Man Long to pay dividends for the foreseeable future and so additional income taxes and applicable withholding taxes that would result from the repatriation of such earnings are not practicably determinable. | |||||||||
Earnings per Share | |||||||||
The Company computes earnings per share (“EPS”) in accordance with ASC 260, Earnings Per Share. ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common shares outstanding during the period. | |||||||||
Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of contracts to issue ordinary common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. The computation of diluted EPS includes the estimated impact of the exercise of contracts to purchase common stocks using the treasury stock method and the potential shares of converted common stock associated with the convertible debt using the if-converted method. | |||||||||
Potential common shares that have an anti-dilutive effect (i.e., those that increase earnings per share or decrease loss per share) are excluded from the calculation of diluted EPS. | |||||||||
The Company does not have any securities that may potentially dilute its basic earnings per share. | |||||||||
Comprehensive Income | |||||||||
Comprehensive income is comprised of net income and other comprehensive income. Other comprehensive income includes unrealized gains or losses resulting from translating Man Loong’s functional currency, the HK dollar, to its reporting currency, the U.S. dollar. | |||||||||
Recently Adopted Accounting Standards | |||||||||
In January 2013, we adopted FASB ASU No. 2011-11, Balance Sheet (Topic 210), Disclosures about Offsetting Assets and Liabilities. The amendments in ASU 2011-11 require the disclosure of information on offsetting and related arrangements for financial and derivative instruments to enable users of its financial statements to understand the effect of those arrangements on its financial position. Amendments under ASU 2011-11 will be applied retrospectively for fiscal years, and interim periods within those years, beginning after January 1, 2013. The adoption of this update did not have a material impact on the Company’s condensed consolidated financial statements. | |||||||||
In January 2013, the FASB issued ASU 2013-01, Balance Sheet (Topic 820), Clarifying the Scope of Disclosures About Offsetting Assets and Liabilities. This standard clarifies the scope of the disclosure requirements for offsetting assets and liabilities which apply to certain derivative instruments in ASU 2011-11. ASU 2013-01 is effective for fiscal years and interim periods beginning on or after January 1, 2013 with early adoption permitted. The adoption of ASU 2013-01 did not have a material impact on the Company’s condensed consolidated financial statements. | |||||||||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued ASU 2013-02, Comprehensive Income (Topic 220), Reporting Amounts Reclassified Out of Accumulated Other Comprehensive Income. ASU 2013-02 requires entities to disclose changes in accumulated other comprehensive income by component within other comprehensive income, and to make those disclosures either on the face of the income statement or in a separate footnote. ASU 2013-02 is effective for fiscal years and interim periods beginning after December 15, 2012. The adoption of ASU 2013-02 did not have a material impact on the Company’s condensed consolidated financial statements. | |||||||||
Recent Accounting Pronouncements | |||||||||
In July 2012, the FASB issued ASU 2012-04, Technical Amendments and Corrections. The updates to current guidance make the codification easier to understand and the fair value measurement guidance easier to apply by eliminating inconsistencies and providing needed clarification. ASU 2012-04 is effective for fiscal periods beginning after December 15, 2012. The adoption of ASU 2012-04 is not expected to have a material effect on the Company’s condensed consolidated financial statements. | |||||||||
In February 2013, the FASB issued ASU No. 2013-04, Liabilities (Topic 405), Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date. The amendments in ASU 2013-04 provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this update is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. The guidance requires an entity to measure those obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance in this Update also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. The amendments in this standard are effective retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of ASU No. 2013-04 is not expected to have a material effect on the Company’s condensed consolidated financial statements. | |||||||||
In March 2013, the FASB issued ASU 2013-05, Foreign Currency Matters (Topic 830), Parent’s Accounting for Cumulative Translation Adjustments Upon Derecognition of Certain Subsidiaries or Groups of Assets Within a Foreign Entity or an Investment in a Foreign Entity. ASU 2013-05 requires entities to release the entire balance of cumulative translation adjustment to the entity’s investment in a foreign entity when there is a; 1) sale of the subsidiary or group of net assets within the foreign entity; 2) loss of controlling financial interest in an investment in a foreign entity; or, 3) a step acquisition of a foreign entity such that the reporting entity changes from the equity method to consolidation of the foreign entity. ASU 2013-05 is effective for fiscal periods beginning after December 15, 2013. The adoption of ASU 2013-05 is not expected to have a material effect on the Company’s condensed consolidated financial statements. | |||||||||
In April 2013, the FASB issued ASU 2013-07, Presentation of Financial Statements (Topic 205), Liquidation Basis of Accounting. ASU-2013-07 requires the reporting entity to use the liquidation basis of accounting to present its financial statements when it determines that liquidation is imminent. ASU 2013-07 is effective for fiscal periods beginning after December 15, 2013. The adoption of ASU 2013-07 is not expected to have a material effect on the Company’s condensed consolidated financial statements. | |||||||||
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force). The amendments in ASU 2013-11 state that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, with certain exceptions. ASU 2013-11 applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The amendments in ASU 2013-11 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this update is not expected to have a material impact on the condensed consolidated financial statements. | |||||||||
Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the SEC did not or are not believed by management to have a material impact on the Company’s present or future condensed consolidated financial statements. |
Deposits_and_Prepaid_Expenses
Deposits and Prepaid Expenses | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Deposits and Prepaid Expenses [Abstract] | ' | ||||||||
Deposits and Prepaid Expenses | ' | ||||||||
3 | Deposits and Prepaid Expenses | ||||||||
Deposits and prepaid expenses consisted of the following as of June 30 and March 31, 2014: | |||||||||
Unaudited | Audited | ||||||||
June 30, | March 31, | ||||||||
2014 | 2014 | ||||||||
Current | |||||||||
Prepaid rent and occupancy expenses | $ | 52,253 | $ | 58,368 | |||||
52,253 | 58,368 | ||||||||
Noncurrent | |||||||||
Rent and occupancy deposits | 219,254 | 219,913 | |||||||
Total deposits and prepaid expenses | $ | 271,507 | $ | 278,281 | |||||
Loan_Receivable_from_eBullion_
Loan Receivable from eBullion Trade | 3 Months Ended | |
Jun. 30, 2014 | ||
Loan receivable from eBullion Trade [Abstract] | ' | |
Loan receivable from eBullion Trade | ' | |
4 | Loan receivable from eBullion Trade | |
In July 2013, the Company’s wholly-owned subsidiary Man Loong, loaned eBullion Trade Company Limited (“eBullion Trade”) $997,393 (RMB 6,100,000). eBullion Trade is a development stage entity pursuing a license in the Peoples’ Republic of China for the purpose of engaging in trading silver contracts as an electronic trading member of the Guangdong Precious Metal Exchange (“GPME”). | ||
The Company determined that the loan to eBullion Trade gave the Company a variable interest in eBullion Trade and that eBullion Trade is a variable interest entity (“VIE”) because the equity investor of eBullion Trade on the date of the loan lacked sufficient equity at risk to finance its activities without the loan. However, the Company determined that it was not the primary beneficiary of the VIE, because Man Loong did not have the power to direct the activities of the VIE that significantly impacted its economic performance. Accordingly, the Company has not consolidated eBullion Trade into its condensed consolidated financial statements. | ||
The loan was unsecured, bore no interest and matured on April 17, 2014. Under terms of the loan, in the event that eBullion Trade’s GPME application was approved, it had the option to repay the loan in cash or by transferring 100% of its outstanding stock to Man Loong. | ||
In April 2014, eBullion Trade informed Man Loong that it intended to repay the loan in cash in accordance with the terms of the loan agreement, and the loan was repaid in full on May 2, 2014. |
Equipment
Equipment | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Equipment [Abstract] | ' | ||||||||
Equipment | ' | ||||||||
5 | Equipment | ||||||||
Equipment, including leasehold improvements, consisted of the following as of June 30 and March 31, 2014: | |||||||||
Unaudited | Audited | ||||||||
30-Jun-14 | 31-Mar-14 | ||||||||
Office equipment | $ | 305,557 | $ | 305,557 | |||||
Computer equipment | 41,546 | 41,546 | |||||||
Furniture and fixtures | 56,117 | 56,117 | |||||||
403,220 | 403,220 | ||||||||
Less: Accumulated depreciation | (117,602 | ) | (97,378 | ) | |||||
Equipment, net | $ | 285,618 | $ | 305,842 | |||||
Depreciation expense was $20,169 and $19,856 for the three months ended June 30, 2014 and 2013, respectively, and was recorded as depreciation and amortization expense in the accompanying condensed consolidated statements of comprehensive income. | |||||||||
Customer_Deposits
Customer Deposits | 3 Months Ended | |
Jun. 30, 2014 | ||
Customer Deposits [Abstract] | ' | |
Customer Deposits | ' | |
6 | Customer Deposits | |
Customer deposits were $76,129 and $38,990 at June 30 and March 31, 2014, respectively, and were recorded as a current liability in the accompanying condensed consolidated balance sheets. |
General_and_Administrative_Exp
General and Administrative Expenses | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
General and Administrative Expenses [Abstract] | ' | ||||||||
General and Administrative Expenses | ' | ||||||||
7 | General and Administrative Expenses | ||||||||
General and administrative expenses consist of the following for the three months ended June 30, 2014 and 2013. | |||||||||
2014 | 2013 | ||||||||
Marketing expenses | $ | 80,946 | $ | 240,462 | |||||
Trading platform rent | 46,347 | 32,281 | |||||||
Transportation | 17,318 | 18,742 | |||||||
Internet | 5,930 | 6,126 | |||||||
Travel and entertainment | 3,741 | 16,618 | |||||||
Computers and software | 14,332 | 19,597 | |||||||
Legal and professional | 78,233 | 50,899 | |||||||
Licenses | 730 | 3,499 | |||||||
Occupancy | 147,547 | 151,678 | |||||||
Advertising | 2,634 | 361 | |||||||
Other taxes | 1,050 | - | |||||||
Other | 33,510 | 44,433 | |||||||
Total general and administrative expenses | $ | 432,318 | $ | 584,696 |
Income_Taxes
Income Taxes | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Income Taxes [Abstract] | ' | ||||||||
Income Taxes | ' | ||||||||
8 | Income Taxes | ||||||||
Income before income taxes as shown in the accompanying condensed consolidated statements of comprehensive income is summarized below for the three months ended June 30, 2014 and 2013. | |||||||||
2014 | 2013 | ||||||||
United States | $ | (66,124 | ) | $ | (41,204 | ) | |||
Hong Kong | 118,327 | 420,757 | |||||||
Income before income taxes | $ | 52,203 | $ | 379,553 | |||||
Under Hong Kong Profits Tax Law the Company is subject to profits tax at a statutory rate of 16.5% on income reported in its statutory financial statements after appropriate tax adjustments. | |||||||||
The provision (benefit) for income taxes consists of the following for the three months ended June 30, 2014 and 2013: | |||||||||
2014 | 2013 | ||||||||
Current: | |||||||||
United States | $ | - | $ | - | |||||
Hong Kong | 21,793 | 71,584 | |||||||
Total current provision | 21,793 | 71,584 | |||||||
Deferred: | |||||||||
United States | - | - | |||||||
Hong Kong | (2,593 | ) | (2,486 | ) | |||||
Total deferred benefit | (2,593 | ) | (2,486 | ) | |||||
Total income tax provision | $ | 19,200 | $ | 69,098 | |||||
The reconciliation of the income tax provision to the amount computed by applying the U.S. statutory federal income tax rate to income before income taxes is as follows: | |||||||||
2014 | 2013 | ||||||||
Income tax provision at the U.S. statutory tax rate | $ | 8,051 | $ | 129,048 | |||||
Valuation allowance on U.S. net operating loss | 11,531 | 5,301 | |||||||
Impact of foreign operations | (4,356 | ) | (66,422 | ) | |||||
Other | 3,974 | 1,171 | |||||||
Total income tax provision | $ | 19,200 | $ | 69,098 | |||||
At June 30, 2014, the Company had U.S. net operating loss carryforwards of approximately $223,000 which expire in 2034. Based on the available evidence, it is uncertain whether future U.S. taxable income will be sufficient to offset the estimated net loss carryforwards, accordingly, we have recorded a valuation allowance of approximately $76,000 as of June 30, 2014. | |||||||||
As of June 30 and March 31, 2014, the Company’s and Man Loong’s differences between the book and tax basis of equipment gave rise to deferred income tax assets of $2,744 and $150, respectively which are recorded as noncurrent in the accompanying condensed consolidated balance sheets. The Company had no other differences between the book and tax basis of assets and liabilities as of June 30 and March 31, 2014. | |||||||||
As a result of the implementation of ASC 740, Accounting for Income Taxes, the Company recognized no material adjustment to unrecognized tax benefits. The Company will continue to classify income tax penalties and interest, if any, as part of interest and other expenses in the accompanying statements of comprehensive income. The Company has incurred no interest or penalties during the three months ended June 30, 2014 and 2013. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings Per Share | ' | ||||||||
9 | Earnings Per Share | ||||||||
Earnings per share (“EPS”) information for the three months ended June 30, 2014 and 2013 was determined by dividing net income for the period by the weighted average number of both basic and diluted shares of common stock and common stock equivalents outstanding. | |||||||||
For the three months ended June 30 2014 and 2013, the Company did not have any securities that may potentially dilute basic earnings per share. Therefore basic and diluted earnings per share for the respective periods are the same. | |||||||||
2014 | 2013 | ||||||||
Numerator | |||||||||
Net income attributable to common shareholders | $ | 33,003 | $ | 310,445 | |||||
Denominator | |||||||||
Weighted average shares of common stock (basic and diluted) | 51,260,000 | 51,260,000 | |||||||
Basic and diluted earnings per share | $ | 0 | $ | 0.01 | |||||
Related_Party_Transactions_and
Related Party Transactions and Balances | 3 Months Ended | |
Jun. 30, 2014 | ||
Related Party Transactions and Balances [Abstract] | ' | |
Related Party Transactions and Balances | ' | |
10 | Related Party Transactions and Balances | |
The Company engaged in related party transactions with certain shareholders, and a company under common control as described below. | ||
On May 27, 2011, the Company entered into an agreement with a company under common control, True Technology Company Limited (“True Technology”), under which True Technology hosts the Company’s servers and provides a connection between the customer’s servers and the internet using True Technology’s public network connections. The fee for these services was $12,894 per month through April 2013 when the fee was reduced to $3,868 per month and is recorded as trading platform rent as a component of general and administrative expenses. Included in trading platform rental fees in the accompanying condensed consolidated statements of comprehensive income for the three months ended June 30, 2014 and 2013, are rental fees which were paid to True Technology of $11,609 and $11,596 respectively. | ||
Included in employee compensation and benefits in the accompanying condensed consolidated statements of comprehensive income for the three months ended June 30, 2014 and 2013, are salaries and director compensation of $11,609 and $7,730 respectively, which were paid to two of the Company’s shareholders. | ||
Commitments
Commitments | 3 Months Ended | ||||
Jun. 30, 2014 | |||||
Commitments [Abstract] | ' | ||||
Commitments | ' | ||||
11 | Commitments | ||||
The Company leases office space under non-cancellable operating lease agreements that expire on various dates through 2016. | |||||
In December 2012, the Company entered into a new lease agreement on approximately 10,000 square feet of office space which replaced its existing office facilities. The Company occupied the new space in January 2013. Under terms of the lease, the Company paid approximately $192,000 in lease deposits and is committed to lease and management fee payments of approximately $46,647 per month for 29 months. | |||||
In May 27, 2011, the Company entered into an agreement with True Technology, a company under common control under which True Technology hosts the Company’s servers and provides a connection between the customer’s servers and the internet using True Technology’s public network connections. The fees paid to True Technology are approximately $12,894 per month for 12 months after which the fees were reduced to $3,868 per month for 24 months. | |||||
Future annual minimum lease payments, including maintenance and management fees, for non-cancellable operating leases and trading platform fees, are as follows: | |||||
Years ending June 30, | |||||
2015 | 606,896 | ||||
2016 | 238,570 | ||||
$ | 845,466 | ||||
Common_Stock
Common Stock | 3 Months Ended | |
Jun. 30, 2014 | ||
Common Stock [Abstract] | ' | |
Common Stock | ' | |
12 | Common Stock | |
Prior to the Merger, the Company issued 50,760,000 shares of common stock to directors as founder shares. | ||
On April 3, 2013, the Company issued 50,760,000 of its common stock as founder shares in exchange for 100% of Man Loong’s outstanding shares to complete the Merger. | ||
Subsequent to the Merger, the Company issued 500,000 shares of common stock, with par value $0.0001 to various investors for total cash proceeds of $240,044. | ||
As of June 30, 2014, the Company had a total of 51,260,000 shares issued and outstanding. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||
Use of Estimates | ' | ||||||||
Use of Estimates | |||||||||
The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Changes in these estimates are recorded when known. Significant estimates made by management include: | |||||||||
● | Valuation of assets and liabilities | ||||||||
● | Useful lives of equipment | ||||||||
● | Accounting for transactions with variable interest entities | ||||||||
● | Other matters that affect the reported amounts and disclosures of contingencies in the condensed consolidated financial statements. | ||||||||
Actual results could differ from those estimates. | |||||||||
Reclassifications | ' | ||||||||
Reclassifications | |||||||||
Certain reclassifications have been made to amounts reported in the previous periods to conform to the current presentation. Such reclassifications had no effect on net income. | |||||||||
Revenue Recognition | ' | ||||||||
Revenue Recognition | |||||||||
The Company recognizes revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 605, Revenue Recognition, which requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence that an arrangement exists; (2) delivery has occurred or services have been rendered; (3) the fee is fixed and determinable; and (4) collectability is reasonably assured. The Company is not a counter party for trades executed through its trading platform and telephone transaction system and, instead, recognizes revenue to the extent of the flat-fee commission it receives on each trade processed for its agents and their customers. | |||||||||
Advertising | ' | ||||||||
Advertising | |||||||||
Advertising costs are incurred for the production and communication of advertising, as well as other marketing activities. The Company expenses the cost of advertising as incurred. The Company did not capitalize any production costs associated with advertising for the three months ended June 30, 2014 and 2013. The total amount charged to advertising expense was $2,634 and $361 for the three months ended June 30, 2014 and 2013, respectively. | |||||||||
Cash and cash equivalents | ' | ||||||||
Cash and cash equivalents | |||||||||
Cash and cash equivalents consist primarily of cash on deposit, certificates of deposits, money market accounts, and investment grade commercial paper that are readily convertible to cash and purchased with original maturities of three months or less. As of June 30, 2014 and 2013, the Company had no cash equivalents. | |||||||||
Fair Value of Financial Instruments | ' | ||||||||
Fair Value of Financial Instruments | |||||||||
ASC 820, “Fair Value Measurements”, defines fair value and establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The carrying amounts reported in the balance sheets for cash, commissions and related party receivables, loan receivable from eBullion Trade, bank overdraft, accounts payable and accrued expenses and customer deposits qualify as financial instruments and are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. | |||||||||
The standard establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy defined by the standard are as follows: | |||||||||
Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, listed equities and U.S. government treasury securities. | |||||||||
Level 2 - Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category include non-exchange-traded derivatives such as over the counter forwards, options and repurchase agreements. | |||||||||
Level 3 - Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value from the perspective of a market participant. Level 3 instruments include those that may be more structured or otherwise tailored to customers’ needs. | |||||||||
Commissions Receivable | ' | ||||||||
Commissions Receivable | |||||||||
Commissions receivable represent commissions to be collected from agents for their customers’ trades executed across Man Loong’s electronic trade platform and telephone transaction system through the balance sheet date. Commissions receivable are typically remitted to the Company within 30 days of trade execution. The Company has not historically incurred credit losses on these commissions receivable. As of June 30, and March 31, 2014, the Company has no reserve for credit losses nor has it incurred any bad debts for the three months ended June 30, 2014 and 2013. | |||||||||
Deposits and Prepaid Expenses | ' | ||||||||
Deposits and Prepaid Expenses | |||||||||
The Company records goods and services paid for but not received until a future date as deposits and prepaid expenses. These primarily include deposits and prepayments for occupancy related expenses. Deposit or prepaid expenses which will be realized more than 12 months past the balance sheet date are classified as non-current assets in the accompanying condensed consolidated balance sheets. | |||||||||
Equipment | ' | ||||||||
Equipment | |||||||||
Equipment is stated at cost. The cost of an asset consists of its purchase price and any directly attributable costs of bringing the asset to its present working condition and location for its intended use. | |||||||||
Equipment is depreciated using the straight-line method over the estimated useful lives of the assets as follows: | |||||||||
Office equipment | 5 years | ||||||||
Furniture and fixtures | 5 years | ||||||||
Computer equipment | 5 years | ||||||||
Expenditures for maintenance and repairs are charged to expense as incurred. Additions, renewals and betterments are capitalized. | |||||||||
Gain or loss on disposal of equipment is the difference between net sales proceeds and the carrying amount of the relevant assets, if any, and is recognized as income or loss in the accompanying condensed consolidated statements of comprehensive income. | |||||||||
Variable Interest Entity | ' | ||||||||
Variable Interest Entity | |||||||||
A variable interest entity (“VIE”) is a legal entity, other than an individual, used for business purposes that either (a) has equity investors that do not provide sufficient financial resources for the entity to support its activities, or (b) the equity investors lack any one of the following three criteria: | |||||||||
● | The power to direct activities that most significantly impact the entity’s economic performance | ||||||||
● | The obligation to absorb the expected losses of the entity | ||||||||
● | The right to receive the expected residual returns. | ||||||||
A VIE is required to be consolidated by a reporting entity if it has a controlling financial interest in the VIE. A reporting entity is deemed to have a controlling financial interest in a VIE if it both has the power to direct the activities that most significantly impact the VIE’s economic performance and the obligation to absorb the losses or the right to receive economic benefits from the VIE that could potentially be significant to the VIE. | |||||||||
Reporting Currency and Foreign Currency Translation | ' | ||||||||
Reporting Currency and Foreign Currency Translation | |||||||||
As of and for the three months ended June 30, 2014 and 2013, the accounts of the Company were maintained in their functional currencies, which is the U.S. dollar for eBullion and the Hong Kong dollar ("HK dollar") for Man Loong. The financial statements of Man Loong have been translated into U.S. dollars which is its reporting currency. All assets and liabilities of Man Loong are translated at the exchange rate on the balance sheet date, shareholders’ equity is translated at historical rates and the statements of comprehensive income, and statements of cash flows are translated at the weighted average exchange rate for the periods. The resulting translation adjustments for the period are reported under other comprehensive income and accumulated translation adjustments are reported as a separate component of shareholders’ equity. | |||||||||
Foreign exchange rates at June 30 and March 31, 2014 and for the three months ended June 30, 2014 and 2013 are as follows: | |||||||||
2014 | 2013 | ||||||||
Period end USD/HKD exchange rate | 7.7511 | 7.7557 | |||||||
Average USD/HKD exchange rate: | 7.7527 | 7.7615 | |||||||
Long-Lived Assets | ' | ||||||||
Long-Lived Assets | |||||||||
The Company periodically evaluates the carrying value of long-lived assets when events and circumstances warrant such review. The carrying value of a long-lived assets is considered impaired when the anticipated undiscounted cash flow from such an asset is separately identifiable and is less than the carrying value. In that event, a loss is recognized in the amount by which the carrying value exceeds the fair market value of the long-lived asset. The Company has identified no such impairment losses. | |||||||||
Accounts payable and accrued liabilities | ' | ||||||||
Accounts payable and accrued liabilities | |||||||||
Accounts payable and accrued liabilities at June 30 and March 31, 2014 primarily consist of accrued statutory bonus payable to employees in Hong Kong, audit fees payable to the Company’s auditors and accountants and legal fees payable to the Company’s legal counsel. | |||||||||
Customer Deposits | ' | ||||||||
Customer Deposits | |||||||||
Customer deposits at June 30 and March 31, 2014 were accepted pursuant to the Company’s agreements with certain of its independent agents. Under terms of those agreements, the Company’s accepts margin deposits for certain of the agents’ customers who prefer that the Company hold those deposits. If an agent’s customer suffers a trading loss equaling 80% or more of the customers’ deposit balance, the customer is required to increase the balance of his deposit or the customer’s trading position is closed and the remaining deposit balance is remitted to the agent in order to fund the customers’ trading losses. | |||||||||
Accordingly, the Company had no risk of loss related to customer deposits at June 30 and March 31, 2014 and for the three months ended June 30, 2014 and 2013. | |||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||
The Company’s accumulated other comprehensive income (loss) as of June 30 and March 31, 2014 consists of adjustments resulting from translating Man Loong’s functional currency, the HK dollar, to its reporting currency, the U.S. dollar. | |||||||||
Income Taxes | ' | ||||||||
Income Taxes | |||||||||
The Company utilizes ASC 740, Income Taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income 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 period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. | |||||||||
The Company has adopted the provisions of the interpretation, of ASC 740, Accounting for Uncertainty in Income Taxes. The Company did not have any material unrecognized tax benefits and there was no effect on its financial condition or results of operations as a result of implementing the interpretation. The Company files income tax returns in the United States and we are subject to federal income tax examinations for the fiscal years ended March 31, 2014 and 2013. Man Loong files income tax returns in Hong Kong and is no longer subject to tax examinations by tax authorities for years before 2007. At June 30 and March 31, 2014, Man Loong had no uncertain tax positions. | |||||||||
We have not provided for U.S. income and foreign withholding taxes on approximately $99,000 of Man Loong’s undistributed earnings for the three months ended June 30, 2014, because such earnings have been retained and reinvested by Man Loong. The Company does not intend to require Man Long to pay dividends for the foreseeable future and so additional income taxes and applicable withholding taxes that would result from the repatriation of such earnings are not practicably determinable. | |||||||||
Earnings per Share | ' | ||||||||
Earnings per Share | |||||||||
The Company computes earnings per share (“EPS”) in accordance with ASC 260, Earnings Per Share. ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common shares outstanding during the period. | |||||||||
Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of contracts to issue ordinary common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. The computation of diluted EPS includes the estimated impact of the exercise of contracts to purchase common stocks using the treasury stock method and the potential shares of converted common stock associated with the convertible debt using the if-converted method. | |||||||||
Potential common shares that have an anti-dilutive effect (i.e., those that increase earnings per share or decrease loss per share) are excluded from the calculation of diluted EPS. | |||||||||
The Company does not have any securities that may potentially dilute its basic earnings per share. | |||||||||
Comprehensive Income | ' | ||||||||
Comprehensive Income | |||||||||
Comprehensive income is comprised of net income and other comprehensive income. Other comprehensive income includes unrealized gains or losses resulting from translating Man Loong’s functional currency, the HK dollar, to its reporting currency, the U.S. dollar. | |||||||||
Recently Adopted Accounting Standards | ' | ||||||||
Recently Adopted Accounting Standards | |||||||||
In January 2013, we adopted FASB ASU No. 2011-11, Balance Sheet (Topic 210), Disclosures about Offsetting Assets and Liabilities. The amendments in ASU 2011-11 require the disclosure of information on offsetting and related arrangements for financial and derivative instruments to enable users of its financial statements to understand the effect of those arrangements on its financial position. Amendments under ASU 2011-11 will be applied retrospectively for fiscal years, and interim periods within those years, beginning after January 1, 2013. The adoption of this update did not have a material impact on the Company’s condensed consolidated financial statements. | |||||||||
In January 2013, the FASB issued ASU 2013-01, Balance Sheet (Topic 820), Clarifying the Scope of Disclosures About Offsetting Assets and Liabilities. This standard clarifies the scope of the disclosure requirements for offsetting assets and liabilities which apply to certain derivative instruments in ASU 2011-11. ASU 2013-01 is effective for fiscal years and interim periods beginning on or after January 1, 2013 with early adoption permitted. The adoption of ASU 2013-01 did not have a material impact on the Company’s condensed consolidated financial statements. | |||||||||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued ASU 2013-02, Comprehensive Income (Topic 220), Reporting Amounts Reclassified Out of Accumulated Other Comprehensive Income. ASU 2013-02 requires entities to disclose changes in accumulated other comprehensive income by component within other comprehensive income, and to make those disclosures either on the face of the income statement or in a separate footnote. ASU 2013-02 is effective for fiscal years and interim periods beginning after December 15, 2012. The adoption of ASU 2013-02 did not have a material impact on the Company’s condensed consolidated financial statements. | |||||||||
Recent Accounting Pronouncements | ' | ||||||||
Recent Accounting Pronouncements | |||||||||
In July 2012, the FASB issued ASU 2012-04, Technical Amendments and Corrections. The updates to current guidance make the codification easier to understand and the fair value measurement guidance easier to apply by eliminating inconsistencies and providing needed clarification. ASU 2012-04 is effective for fiscal periods beginning after December 15, 2012. The adoption of ASU 2012-04 is not expected to have a material effect on the Company’s condensed consolidated financial statements. | |||||||||
In February 2013, the FASB issued ASU No. 2013-04, Liabilities (Topic 405), Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date. The amendments in ASU 2013-04 provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this update is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. The guidance requires an entity to measure those obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance in this Update also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. The amendments in this standard are effective retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of ASU No. 2013-04 is not expected to have a material effect on the Company’s condensed consolidated financial statements. | |||||||||
In March 2013, the FASB issued ASU 2013-05, Foreign Currency Matters (Topic 830), Parent’s Accounting for Cumulative Translation Adjustments Upon Derecognition of Certain Subsidiaries or Groups of Assets Within a Foreign Entity or an Investment in a Foreign Entity. ASU 2013-05 requires entities to release the entire balance of cumulative translation adjustment to the entity’s investment in a foreign entity when there is a; 1) sale of the subsidiary or group of net assets within the foreign entity; 2) loss of controlling financial interest in an investment in a foreign entity; or, 3) a step acquisition of a foreign entity such that the reporting entity changes from the equity method to consolidation of the foreign entity. ASU 2013-05 is effective for fiscal periods beginning after December 15, 2013. The adoption of ASU 2013-05 is not expected to have a material effect on the Company’s condensed consolidated financial statements. | |||||||||
In April 2013, the FASB issued ASU 2013-07, Presentation of Financial Statements (Topic 205), Liquidation Basis of Accounting. ASU-2013-07 requires the reporting entity to use the liquidation basis of accounting to present its financial statements when it determines that liquidation is imminent. ASU 2013-07 is effective for fiscal periods beginning after December 15, 2013. The adoption of ASU 2013-07 is not expected to have a material effect on the Company’s condensed consolidated financial statements. | |||||||||
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force). The amendments in ASU 2013-11 state that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, with certain exceptions. ASU 2013-11 applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The amendments in ASU 2013-11 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this update is not expected to have a material impact on the condensed consolidated financial statements. | |||||||||
Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the SEC did not or are not believed by management to have a material impact on the Company’s present or future condensed consolidated financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||
Equipment is depreciated using the straight-line method over the estimated useful lives of the assets | ' | ||||||||
Office equipment | 5 years | ||||||||
Furniture and fixtures | 5 years | ||||||||
Computer equipment | 5 years | ||||||||
Foreign exchange rates | ' | ||||||||
2014 | 2013 | ||||||||
Period end USD/HKD exchange rate | 7.7511 | 7.7557 | |||||||
Average USD/HKD exchange rate: | 7.7527 | 7.7615 | |||||||
Deposits_and_Prepaid_Expenses_
Deposits and Prepaid Expenses (Tables) | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Deposits and Prepaid Expenses [Abstract] | ' | ||||||||
Deposits and prepaid expenses disclosure | ' | ||||||||
Unaudited | Audited | ||||||||
30-Jun-14 | 31-Mar-14 | ||||||||
Current | |||||||||
Prepaid rent and occupancy expenses | $ | 52,253 | $ | 58,368 | |||||
52,253 | 58,368 | ||||||||
Noncurrent | |||||||||
Rent and occupancy deposits | 219,254 | 219,913 | |||||||
Total deposits and prepaid expenses | $ | 271,507 | $ | 278,281 |
Equipment_Tables
Equipment (Tables) | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Equipment [Abstract] | ' | ||||||||
Schedule of Equipment, including leasehold improvements | ' | ||||||||
Unaudited | Audited | ||||||||
30-Jun-14 | 31-Mar-14 | ||||||||
Office equipment | $ | 305,557 | $ | 305,557 | |||||
Computer equipment | 41,546 | 41,546 | |||||||
Furniture and fixtures | 56,117 | 56,117 | |||||||
403,220 | 403,220 | ||||||||
Less: Accumulated depreciation | (117,602 | ) | (97,378 | ) | |||||
Equipment, net | $ | 285,618 | $ | 305,842 | |||||
General_and_Administrative_Exp1
General and Administrative Expenses (Tables) | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
General and Administrative Expenses [Abstract] | ' | ||||||||
Schedule of General and administrative expenses | ' | ||||||||
2014 | 2013 | ||||||||
Marketing expenses | $ | 80,946 | $ | 240,462 | |||||
Trading platform rent | 46,347 | 32,281 | |||||||
Transportation | 17,318 | 18,742 | |||||||
Internet | 5,930 | 6,126 | |||||||
Travel and entertainment | 3,741 | 16,618 | |||||||
Computers and software | 14,332 | 19,597 | |||||||
Legal and professional | 78,233 | 50,899 | |||||||
Licenses | 730 | 3,499 | |||||||
Occupancy | 147,547 | 151,678 | |||||||
Advertising | 2,634 | 361 | |||||||
Other taxes | 1,050 | - | |||||||
Other | 33,510 | 44,433 | |||||||
Total general and administrative expenses | $ | 432,318 | $ | 584,696 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Income Taxes [Abstract] | ' | ||||||||
Schedule of income before income taxes | ' | ||||||||
2014 | 2013 | ||||||||
United States | $ | (66,124 | ) | $ | (41,204 | ) | |||
Hong Kong | 118,327 | 420,757 | |||||||
Income before income taxes | $ | 52,203 | $ | 379,553 | |||||
Schedule of provision (benefit) for income taxes | ' | ||||||||
2014 | 2013 | ||||||||
Current: | |||||||||
United States | $ | - | $ | - | |||||
Hong Kong | 21,793 | 71,584 | |||||||
Total current provision | 21,793 | 71,584 | |||||||
Deferred: | |||||||||
United States | - | - | |||||||
Hong Kong | (2,593 | ) | (2,486 | ) | |||||
Total deferred benefit | (2,593 | ) | (2,486 | ) | |||||
Total income tax provision | $ | 19,200 | $ | 69,098 | |||||
Schedule of reconciliation of the income tax provision | ' | ||||||||
2014 | 2013 | ||||||||
Income tax provision at the U.S. statutory tax rate | $ | 8,051 | $ | 129,048 | |||||
Valuation allowance on U.S. net operating loss | 11,531 | 5,301 | |||||||
Impact of foreign operations | (4,356 | ) | (66,422 | ) | |||||
Other | 3,974 | 1,171 | |||||||
Total income tax provision | $ | 19,200 | $ | 69,098 | |||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Schedule of basic and diluted earnings per share | ' | ||||||||
2014 | 2013 | ||||||||
Numerator | |||||||||
Net income attributable to common shareholders | $ | 33,003 | $ | 310,445 | |||||
Denominator | |||||||||
Weighted average shares of common stock (basic and diluted) | 51,260,000 | 51,260,000 | |||||||
Basic and diluted earnings per share | $ | 0 | $ | 0.01 | |||||
Commitments_Tables
Commitments (Tables) | 3 Months Ended | ||||
Jun. 30, 2014 | |||||
Commitments [Abstract] | ' | ||||
Schedule of future annual minimum lease payments | ' | ||||
Years ending June 30, | |||||
2015 | 606,896 | ||||
2016 | 238,570 | ||||
$ | 845,466 | ||||
Nature_of_Operations_and_Basis1
Nature of Operations and Basis of Presentation (Details) | 3 Months Ended |
Jun. 30, 2014 | |
Nature of Operations and Basis of Presentation [Abstract] | ' |
Entity Incorporation, Date of Incorporation | 28-Jan-13 |
Ownership description | 'Company's shareholders exchanged 100% of their shares for 100% of the shares of Man Loong Bullion Company Limited ("Man Loong") a company which was incorporated in Hong Kong in 1974, and in 2007, was re-registered under Hong Kong law as a limited liability company. Upon completion of this transaction, Man Loong became a 100% owned subsidiary of eBullion. |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) | 3 Months Ended |
Jun. 30, 2014 | |
Office equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Estimated Useful Lives | '5 years |
Furniture and fixtures [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Estimated Useful Lives | '5 years |
Computer equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Estimated Useful Lives | '5 years |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 1) | Jun. 30, 2014 | Jun. 30, 2013 |
Period end USD/HKD exchange rate [Member] | ' | ' |
Foreign exchange rates | 7.7511 | 7.7557 |
Average USD/HKD exchange rate [Member] | ' | ' |
Foreign exchange rates | 7.7527 | 7.7615 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Details 2) (USD $) | 3 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Summary of Significant Accounting Policies [Abstract] | ' | ' |
Advertising Expense | $2,634 | $361 |
Customer deposits | 'If an agent's customer suffers a trading loss equaling 80% or more of the customers' deposit balance, the customer is required to increase the balance of his deposit or the customer's trading position is closed and the remaining deposit balance is remitted to the agent in order to fund the customers' trading losses. | ' |
Undistributed earnings | $99,000 | ' |
Deposits_and_Prepaid_Expenses_1
Deposits and Prepaid Expenses (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
Current | ' | ' |
Prepaid rent and occupancy expenses | $52,253 | $58,368 |
Total prepaid rent and occupancy expenses | 52,253 | 58,368 |
Noncurrent | ' | ' |
Rent and occupancy deposits | 219,254 | 219,913 |
Total deposits and prepaid expenses | $271,507 | $278,281 |
Loan_Receivable_from_eBullion_1
Loan Receivable from eBullion Trade (Details) | Jun. 30, 2014 | Mar. 31, 2014 | Apr. 30, 2014 | Jul. 31, 2013 | Jul. 31, 2013 |
USD ($) | USD ($) | eBullion Trade [Member] | eBullion Trade [Member] | eBullion Trade [Member] | |
USD ($) | CNY | ||||
Loan receivable from eBullion Trade (Textual) | ' | ' | ' | ' | ' |
Loan receivable from eBullion Trade | ' | $997,049 | ' | $997,393 | 6,100,000 |
Maturity date of loan | ' | ' | 2-May-14 | 17-Apr-14 | 17-Apr-14 |
Term of loan | ' | ' | ' | 'Under terms of the loan, in the event that eBullion Trade's GPME application was approved, it had the option to repay the loan in cash or by transferring 100% of its outstanding stock to Man Loong. | 'Under terms of the loan, in the event that eBullion Trade's GPME application was approved, it had the option to repay the loan in cash or by transferring 100% of its outstanding stock to Man Loong. |
Equipment_Details
Equipment (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
Property, Plant and Equipment [Line Items] | ' | ' |
Equipment, gross | $403,220 | $403,220 |
Less: Accumulated depreciation | -117,602 | -97,378 |
Equipment, net | 285,618 | 305,842 |
Office Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Equipment, gross | 305,557 | 305,557 |
Computer Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Equipment, gross | 41,546 | 41,546 |
Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Equipment, gross | $56,117 | $56,117 |
Equipment_Details_Textual
Equipment (Details Textual) (USD $) | 3 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Equipment (Textual) | ' | ' |
Depreciation expense | $20,169 | $19,856 |
Customer_Deposits_Details
Customer Deposits (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
Customer Deposits (Textual) | ' | ' |
Customer deposits | $76,129 | $38,990 |
General_and_Administrative_Exp2
General and Administrative Expenses (Details) (USD $) | 3 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
General and Administrative Expenses [Abstract] | ' | ' |
Marketing expenses | $80,946 | $240,462 |
Trading platform rent | 46,347 | 32,281 |
Transportation | 17,318 | 18,742 |
Internet | 5,930 | 6,126 |
Travel and entertainment | 3,741 | 16,618 |
Computers and software | 14,332 | 19,597 |
Legal and professional | 78,233 | 50,899 |
Licenses | 730 | 3,499 |
Occupancy | 147,547 | 151,678 |
Advertising | 2,634 | 361 |
Other taxes | 1,050 | ' |
Other | 33,510 | 44,433 |
Total general and administrative expenses | $432,318 | $584,696 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Income Taxes [Abstract] | ' | ' |
United States | ($66,124) | ($41,204) |
Hong Kong | 118,327 | 420,757 |
Income before income taxes | $52,203 | $379,553 |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 3 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Current: | ' | ' |
United States | ' | ' |
Hong Kong | 21,793 | 71,584 |
Total current provision | 21,793 | 71,584 |
Deferred: | ' | ' |
United States | ' | ' |
Hong Kong | -2,593 | -2,486 |
Total deferred benefit | -2,593 | -2,486 |
Total income tax provision | $19,200 | $69,098 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 3 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Income Taxes [Abstract] | ' | ' |
Income tax provision at the U.S. statutory tax rate | $8,051 | $129,048 |
Valuation allowance on U.S. net operating loss | 11,531 | 5,301 |
Impact of foreign operations | -4,356 | -66,422 |
Other | 3,974 | 1,171 |
Total income tax provision | $19,200 | $69,098 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 3 Months Ended | |
Jun. 30, 2014 | Mar. 31, 2014 | |
Income Tax (Textual) | ' | ' |
Percentage of tax profit at statutory rate | 16.50% | ' |
Operating loss carryforwards | $223,000 | ' |
Valuation allowance | 76,000 | ' |
Operating loss carryforwards, Expiration date | 31-Dec-34 | ' |
Deferred income taxes | $2,744 | $150 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | |||
Numerator | ' | ' | ' | ||
Net income attributable to common shareholders | $33,003 | $310,455 | $24,423 | ||
Denominator | ' | ' | ' | ||
Weighted average shares of common stock (basic and diluted) | 51,260,000 | [1] | 51,260,000 | [1] | ' |
Basic and diluted earnings per share | $0 | $0.01 | ' | ||
[1] | The capital accounts of the Company have been retroactively restated to reflect the equivalent number of common shares based on the exchange ratio of the merger transaction in determining the basic and diluted weighted average shares. See note 1. |
Related_Party_Transactions_and1
Related Party Transactions and Balances (Details) (USD $) | 1 Months Ended | 3 Months Ended | ||
Apr. 30, 2013 | 27-May-11 | Jun. 30, 2014 | Jun. 30, 2013 | |
True Technology [Member] | ' | ' | ' | ' |
Related Party Transactions (Textual) | ' | ' | ' | ' |
Related party internet service fees | $3,868 | $12,894 | $11,609 | $11,596 |
Director [Member] | ' | ' | ' | ' |
Related Party Transactions (Textual) | ' | ' | ' | ' |
Salaries and director compensation | ' | ' | $11,609 | $7,730 |
Commitments_Details
Commitments (Details) (USD $) | Jun. 30, 2014 |
Years ending June 30, | ' |
2015 | $606,896 |
2016 | 238,570 |
Future annual minimum lease payments | $845,466 |
Commitments_Details_Textual
Commitments (Details Textual) (USD $) | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | ||
Dec. 31, 2012 | Jun. 30, 2014 | Apr. 30, 2013 | 27-May-11 | Jun. 30, 2014 | Jun. 30, 2013 | |
sqft | True Technology [Member] | True Technology [Member] | True Technology [Member] | True Technology [Member] | ||
Commitments (Textual) | ' | ' | ' | ' | ' | ' |
Operating lease expiration date | ' | 'Expire on various dates through 2016. | ' | ' | ' | ' |
Area of office space | 10,000 | ' | ' | ' | ' | ' |
Lease deposits | $192,000 | ' | ' | ' | ' | ' |
Lease and management fee payments | 46,647 | ' | ' | ' | ' | ' |
Description of Leasing payments | 'Under terms of the lease, the Company paid approximately $192,000 in lease deposits and is committed to lease and management fee payments of approximately $46,647 per month for 29 months. | ' | ' | ' | ' | ' |
Internet service fees | ' | ' | $3,868 | $12,894 | $11,609 | $11,596 |
Common_Stock_Details
Common Stock (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | ||
Apr. 03, 2013 | Jun. 30, 2013 | Mar. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | |
Common Stock [Member] | Director [Member] | |||||
Common Stock (Textual) | ' | ' | ' | ' | ' | ' |
Common stock, shares issued | ' | ' | 51,260,000 | 51,260,000 | ' | 50,760,000 |
Common stock, shares outstanding | ' | ' | 51,260,000 | 51,260,000 | ' | ' |
Shares issued to complete merger | 50,760,000 | ' | ' | ' | ' | ' |
Common stock, par value | ' | ' | $0.00 | $0.00 | ' | ' |
Percentage of equity interest acquired in exchange of shares | 100.00% | ' | ' | ' | ' | ' |
Proceeds from Issuance of Private Placement | ' | $240,044 | $240,044 | ' | $50 | ' |
Proceeds from private placement, shares | ' | ' | ' | ' | 500,000 | ' |