Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2016 | Jan. 13, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | eBullion, Inc. | |
Entity Central Index Key | 1,573,766 | |
Trading Symbol | ebml | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 512,600,000 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Dec. 31, 2016 | Mar. 31, 2016 |
Current Assets | ||
Cash | $ 793,804 | $ 1,109,465 |
Commissions receivable | 517,751 | 100,493 |
Deposits and prepaid expenses | 42,099 | 29,819 |
Prepaid income taxes | 147,556 | |
Total current assets | 1,353,654 | 1,387,333 |
Noncurrent Assets | ||
Deposits and prepaid expenses | 188,395 | 141,084 |
Property and equipment, net | 243,243 | 253,807 |
Loan receivable from Global Long | 773,734 | 773,793 |
Deferred income taxes | 101,953 | 101,960 |
Total noncurrent assets | 1,307,325 | 1,270,644 |
Total assets | 2,660,979 | 2,657,977 |
Current Liabilities | ||
Bank Overdraft | 30,645 | |
Accounts payable and accrued liabilities | 12,463 | 33,684 |
Income taxes payable | 12,067 | |
Customer deposits | 208,731 | 187,037 |
Total current liabilities | 233,261 | 251,366 |
Noncurrent Liabilities | ||
Deferred income taxes | 584 | 5,517 |
Total noncurrent liabilities | 584 | 5,517 |
Total liabilities | 233,845 | 256,883 |
Commitments and contingencies | ||
Shareholders' Equity | ||
Common stock, $0.0001 par value, 1,000,000,000 shares authorized, 512,600,000 shares issued and outstanding | 51,260 | 51,260 |
Additional paid in capital | 1,477,404 | 1,477,404 |
Retained earnings | 900,506 | 873,954 |
Accumulated other comprehensive loss | (2,036) | (1,524) |
Total shareholders' equity | 2,427,134 | 2,401,094 |
Total liabilities and shareholders' equity | $ 2,660,979 | $ 2,657,977 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2016 | Mar. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 512,600,000 | 512,600,000 |
Common stock, shares outstanding | 512,600,000 | 512,600,000 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | ||
REVENUES | |||||
Commission revenue | $ 468,476 | $ 528,755 | $ 1,502,897 | $ 1,371,311 | |
EXPENSES | |||||
General and administrative | 246,136 | 456,239 | 921,777 | 1,221,611 | |
Employee compensation and benefits | 166,738 | 167,158 | 527,340 | 495,772 | |
Depreciation | 18,903 | 24,083 | 56,703 | 64,426 | |
Loss on disposal of property and equipment | 124,860 | 124,846 | |||
Total expenses | 431,777 | 772,340 | 1,505,820 | 1,906,655 | |
INCOME (LOSS) FROM OPERATIONS | 36,699 | (243,585) | (2,923) | (535,344) | |
OTHER INCOME | |||||
Rental income | 9,031 | ||||
Interest income, net | 15,499 | 11,643 | 36,606 | 32,999 | |
Total other income | 15,499 | 11,643 | 36,606 | 42,030 | |
INCOME (LOSS) BEFORE INCOME TAXES | 52,198 | (231,942) | 33,683 | (493,314) | |
INCOME TAX PROVISION (BENEFIT) | |||||
Current | 12,063 | 12,061 | 4,181 | ||
Deferred | (1,263) | 22,987 | (4,930) | 17,684 | |
Total income tax provision (benefit) | 10,800 | 22,987 | 7,131 | 21,865 | |
NET INCOME (LOSS) | 41,398 | (254,929) | 26,552 | (515,179) | |
OTHER COMPREHENSIVE INCOME (LOSS) | |||||
Foreign currency translation | (163) | (245) | (512) | 2,058 | |
COMPREHENSIVE INCOME (LOSS) | $ 41,235 | $ (255,174) | $ 26,040 | $ (513,121) | |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | |||||
Basic and diluted (in share) | [1] | 512,600,000 | 512,600,000 | 512,600,000 | 512,600,000 |
BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE | |||||
Basic and diluted earnings (loss) per common share (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 | |
[1] | The Company's weighted average common shares outstanding for both basic and diluted earnings per share have been restated for the effects of the 10 for 1 stock split which was effective in March 2015. See Note 13 for further discussion. |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) (Parentheticals) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statements Of Operations [Abstract] | ||||
Stock split | 10 for 1 | 10 for 1 | 10 for 1 | 10 for 1 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Shareholders' Equity - USD ($) | Common Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
BALANCE at Mar. 31, 2015 | $ 51,260 | $ 1,477,404 | $ 1,383,704 | $ (1,220) | $ 2,911,148 |
BALANCE (in shares) at Mar. 31, 2015 | 512,600,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (509,750) | (509,750) | |||
Foreign currency translation adjustment | (304) | (304) | |||
BALANCE at Mar. 31, 2016 | $ 51,260 | 1,477,404 | 873,954 | (1,524) | 2,401,094 |
BALANCE (in shares) at Mar. 31, 2016 | 512,600,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | 26,552 | 26,552 | |||
Foreign currency translation adjustment | (512) | (512) | |||
BALANCE at Dec. 31, 2016 | $ 51,260 | $ 1,477,404 | $ 900,506 | $ (2,036) | $ 2,427,134 |
BALANCE (in shares) at Dec. 31, 2016 | 512,600,000 |
Unaudited Condensed Consolidat7
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
OPERATING ACTIVITIES: | ||
Net income (loss) | $ 26,552 | $ (515,179) |
Adjustments to reconcile net income (loss) to net cash used in operating activities | ||
Depreciation and amortization | 56,703 | 64,426 |
Loss on disposal of property and equipment | 124,846 | |
Changes in operating assets and liabilities: | ||
Commissions receivable | (417,090) | 75,775 |
Deposits and prepaid expenses | (59,578) | (94,500) |
Accounts payable and accrued liabilities | (51,850) | 9,070 |
Customer deposits | 21,699 | 78,975 |
Prepaid income taxes | 147,483 | |
Income taxes payable | 12,061 | 4,181 |
Deferred income taxes | (4,930) | 17,684 |
Net cash used in operating activities | (268,950) | (234,722) |
INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (46,147) | (234,443) |
Increase in restricted cash | (313,864) | |
Loan receivable from Global Long | (774,083) | |
Net cash used in investing activities | (46,147) | (1,322,390) |
NET INCREASE (DECREASE) IN CASH | (315,097) | (1,557,112) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (564) | 1,010 |
Cash, beginning of period | 1,109,465 | 2,513,423 |
Cash, end of period | 793,804 | 957,321 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash paid during the period for interest | ||
Cash paid during the period for income taxes |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 9 Months Ended |
Dec. 31, 2016 | |
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. In April 2016, Man Loong received a license from the CGSE to trade gold contracts in the new Qian Hai trade zone in Shenzhen, China. Concurrent with receiving the license, Man Loong registered a new subsidiary, Shenzhen Qian Hai Man Loong Bullion Company Ltd. (“Shenzhen Qian Hai”) organized as a Wholly Foreign Owned Enterprise under PRC law. The new license will allow Man Loong to provide its trading platform and trading services to its existing and new customers who are citizens of the PRC to trade gold contracts through Shenzhen Qian Hai. Man Loong intends to charge a fee to facilitate such trades placed in Qian Hai and is in the process of defining its business and marketing strategies and processes for trades placed through Shenzhen Qian Hai. Basis of Presentation These unaudited condensed consolidated financial statements are expressed in U.S. Dollars and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments of a normal recurring nature and considered necessary for a fair presentation of its financial condition and results of operations for the interim periods presented in this Quarterly Report on Form 10-Q have been included. Operating results for the interim periods are not necessarily indicative of financial results for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2016. The Company’s and Man Loong’s fiscal year end is March 31. Principles of Consolidation The unaudited condensed consolidated financial statements as of December 31, 2016 and March 31, 2016, and for the three and nine months ended December 31, 2016 and 2015, include the accounts of eBullion and its wholly owned subsidiary, Man Loong. All significant intercompany transactions have been eliminated. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Use of Estimates The preparation of these 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 unaudited 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 consolidated financial statements. Actual results could differ from those estimates. Revenue Recognition The Company recognizes revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 605, Revenue Recognition 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 and nine months ended December 31, 2016 and 2015. The total amount charged to advertising expense was $353 and $4,696 for the nine months ended December 31, 2016 and 2015, respectively and $0 and $0 for the three months ended December 31, 2016 and 2015, 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 December 31, 2016 and March 31, 2016, the Company had no cash equivalents. Fair Value of Financial Instruments ASC 820, “Fair Value Measurements 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. The Company had no financial instruments that were required to be measured at fair value for the three and nine months ended December 31, 2016 and 2015. 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 December 31, 2016 and March 31, 2016, the Company has no reserve for credit losses nor has it incurred any bad debts for the three and nine months ended December 31, 2016 and 2015. 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. Deposits 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. Property and Equipment Property and 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. Property and 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 unaudited condensed consolidated statements of comprehensive income (loss). There were no disposals of equipment for the three and nine months ended December 31, 2016 and 2015. 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. The Company did not have a VIE as of December 31, and March 31, 2016 and for the three and nine months ended December 31, 2016 and 2015. Reporting Currency and Foreign Currency Translation As of December 31 and March 31, 2016 and for the three and nine months ended December 31, 2016 and 2015, 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 (loss), 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 (loss) and accumulated translation adjustments are reported as a separate component of shareholders’ equity. Foreign exchange rates at December 31 and March 31, 2016 and for the three and nine months ended December 31, 2016 and 2015 are as follows: 2016 2015 Year end March 31, 2016 USD/HKD exchange rate 7.7540 - Period end USD/HKD exchange rate 7.7546 7.7503 Average USD/HKD exchange rate: Nine months ended December 31 7.7579 7.7511 Three months ended December 31 7.7571 7.7503 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 asset is considered impaired when the anticipated undiscounted cash flow from such an asset is less than its 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 December 31, 2016 and March 31, 2016 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 December 31, 2016 and March 31, 2016 were accepted pursuant to the Company’s agreements with certain of its independent agents. Under terms of those agreements, the Company 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 customer’s trading losses. Accordingly, the Company had no risk of loss related to customer deposits at December 31, 2016 and March 31, 2016. Accumulated Other Comprehensive Loss The Company’s accumulated other comprehensive loss as December 31, and March 31, 2016 consist of adjustments resulting from translating Man Loong’s functional currency, the HK dollar, to its reporting currency, the U.S. dollar. Rental Income Rental income consisted of rent charged for a portion of Man Loong’s office facility which was leased on a short term lease arrangement. Agreed rental payments were $4,514 per month from January 1, 2015 until March 31, 2015 when the lease arrangement expired. Though not subject to a formal lease agreement, in April 2015, Man Loong extended the lease arrangement for a further 2 months. For the nine months ended December 31, 2016 and 2015, Man Loong recognized $0 and $9,031, respectively, and $0 and $0 for the three months ended December 31, 2016 and 2015, respectively in the accompanying unaudited condensed consolidated statements of comprehensive income. Income Taxes The Company utilizes ASC 740, Income Taxes The Company has adopted the provisions of the interpretation, of ASC 740, Accounting for Uncertainty in Income Taxes Historically, the Company has not provided for U.S. income and foreign withholding taxes on Man Loong’s undistributed earnings, because such earnings have been retained and reinvested by Man Loong. The Company does not intend to require Man Loong 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 (Loss) per Share The Company computes earnings (loss) per share (“EPS”) in accordance with ASC 260, Earnings Per Share 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 (loss) per share. Comprehensive Income (Loss) Comprehensive income (Loss) is comprised of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains or losses resulting from translating Man Loong’s functional currency, the HK dollar, to its reporting currency, the U.S. dollar. Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13 Financial Instruments – Credit Losses (Topic 326) Measurement of Credit on Financial Instruments In May 2016, the FASB issued ASU 2016-12 Revenue From Contracts (Topic 606) Narrow Scope Improvements and Practical Expedients In February 2016, the FASB issued ASU 2016-02 Leases (Topic 842). ASU 2016-02 establishes new guidance for the recording and disclosure of assets and liabilities that arise from leasing activity. ASU 2016-02 will require most lessees to record lease assets and lease liabilities that arise from leases on the statement of financial condition and disclose qualitative and quantitative information related to lease transactions such as variable lease payments and options to renew and terminate leases. ASU 2016-02 is effective for years beginning after December 18, 2018 and early adoption is permitted. The Company is evaluating ASU 2016-02 to determine its impact, if any, on the unaudited condensed consolidated financial statements. In January 2016, the FASB issued ASU 2016-01 Financial Instruments Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Liabilities In August 2015, the FASB issued ASU 2015-14 Revenue From Contracts With Customers (Topic 606) Deferral of the Effective Date In November 2015, the FASB issued ASU 2015-17 Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes. 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 unaudited condensed consolidated financial statements. |
Deposits and Prepaid Expenses
Deposits and Prepaid Expenses | 9 Months Ended |
Dec. 31, 2016 | |
Deposits and Prepaid Expenses [Abstract] | |
Deposits and Prepaid Expenses | 3. Deposits and Prepaid Expenses Deposits and prepaid expenses consisted of the following as of December 31, 2016 and March 31, 2016: Unaudited December 31, Audited March 31, Current Prepaid rent and occupancy expenses $ 42,099 $ 29,819 Noncurrent Rent and occupancy deposits 188,395 141,084 Total deposits and prepaid expenses $ 230,494 $ 170,903 |
Loan receivable from Global Lon
Loan receivable from Global Long | 9 Months Ended |
Dec. 31, 2016 | |
Loan Receivable from Global Long [Abstract] | |
Loan receivable from Global Long | 4. Loan receivable from Global Long On April 3, 2015, Man Loong loaned Global Long Inc. Limited (“Global Long”) $773,332 (HKD$6,000,000). Global Long is registered in Hong Kong and through its subsidiary in the Peoples Republic of China, eBullion Trade Company Limited (“eBullion Trade”), is engaged in trading silver contracts as an electronic trading member of the Guangdong Precious Metal Exchange (“GPME”). The loan bears interest at a 6% annual rate, matures on its 5th anniversary and is secured by a first right of claim on a bank deposit held by eBullion Trade. Under the terms of the loan, interest is payable to Man Loong quarterly and Global Long has the right to repay the loan at any time before the maturity date. Until all principal and accrued interest are repaid on the loan, Global Long may not enter into additional borrowings without Man Loong’s written permission, and upon certain events of default, the Loan becomes due on demand. The purpose of the loan was to establish a relationship with Global Long with the intent of becoming their first choice for Global Long’s customers who wish to trade in gold trading positions through the CGSE. The Company determined that the loan to Global Long does not give the Company a variable interest in Global Long and that Global Long is not a variable interest entity (“VIE”) because Man Loong does not have the power to direct any of the activities of Global Long or eBullion Trade that significantly impact their economic performance. Accordingly, the Company has not consolidated Global Long into its consolidated financial statements. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Dec. 31, 2016 | |
Property and Equipment [Abstract] | |
Property and Equipment | 5. Property and Equipment Property and equipment, including leasehold improvements, consisted of the following as of December 31, 2016 and March 31, 2016: Unaudited December 31, 2016 March 31, Office equipment $ 206,329 $ 206,345 Computer equipment 59,914 59,919 Furniture and fixtures 111,936 65,774 378,179 332,038 Less: Accumulated depreciation (134,936 ) (78,231 ) Equipment, net $ 243,243 $ 253,807 Depreciation expense was $56,703 and $64,426 for the nine months ended December 31, 2016 and 2015, respectively, and $18,903 and $24,083 for the three months ended December 31, 2016 and 2015, respectively and was recorded as depreciation expense in the accompanying unaudited condensed consolidated statements of comprehensive income (loss). |
Customer Deposits
Customer Deposits | 9 Months Ended |
Dec. 31, 2016 | |
Customer Deposits Disclosure [Abstract] | |
Customer Deposits | 6. Customer Deposits Customer deposits were $208,731 and $187,037 at December 31, 2016 and March 31, 2016, respectively, and were recorded as a current liability in the accompanying unaudited condensed consolidated balance sheets. |
General and Administrative Expe
General and Administrative Expenses | 9 Months Ended |
Dec. 31, 2016 | |
General and Administrative Expense [Abstract] | |
General and Administrative Expenses | 7. General and Administrative Expenses General and administrative expenses consist of the following for the three and nine months ended December 31, 2016 and 2015. Unaudited Nine Unaudited Nine Unaudited Three Unaudited Three 2016 2015 2016 2015 Marketing expenses $ 255,597 $ 254,406 $ 42,903 $ 82,298 Trading platform rent 78,415 126,019 16,697 42,554 Transportation 8,118 36,171 4,967 6,366 Internet 15,864 13,620 5,395 4,713 Travel and entertainment 4,382 6,892 1,354 3,040 Computers and software 30,490 30,098 8,429 13,862 Legal and professional 133,438 115,598 26,970 35,244 Licenses 14,524 37,802 657 10,832 Occupancy 325,301 501,829 118,507 193,498 Advertising 353 4,696 - - Other 55,295 94,480 20,257 63,832 Total general and administrative expense $ 921,777 $ 1,221,611 $ 246,136 $ 456,239 |
Income Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | 8. Income Taxes Income (loss) before income taxes as shown in the accompanying unaudited condensed consolidated statements of comprehensive income (loss) is summarized below for the three and nine months ended December 31, 2016 and 2015. Unaudited Nine Unaudited Nine Unaudited Three Unaudited Three 2016 2015 2016 2015 United States $ (38,081 ) $ (46,441 ) $ (13,230 ) $ (20,292 ) Hong Kong 71,764 (446,873 ) 65,428 (211,650 ) Income before income taxes $ 33,683 $ (493,314 ) $ 52,198 $ (231,942 ) 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 income tax provision (benefit) consists of the following for the three and nine months ended December 31, 2016 and 2015: Unaudited Nine Unaudited Nine Unaudited Three Unaudited Three 2016 2015 2016 2015 Current: United States $ - $ - $ - $ - Hong Kong 12,061 4,181 12,063 - Total current provision 12,061 4,181 12,063 - Deferred: United States - - - - Hong Kong (4,930 ) 17,684 (1,263 ) 22,987 Total deferred benefit (4,930 ) 17,684 (1,263 ) 22,987 Total income tax provision $ 7,131 $ 21,865 $ 10,800 $ 22,987 The reconciliation of the income tax provision (benefit) to the amount computed by applying the U.S. statutory federal income tax rate to income before income taxes is as follows: Unaudited Nine Unaudited Nine Unaudited Three Unaudited Three 2016 2015 2016 2015 Income tax provision (benefit) at the U.S. statutory tax rate $ 11,452 $ (167,727 ) $ 17,747 $ (78,860 ) Valuation allowance on U.S. net operating loss carryforwards 12,948 15,790 4,498 6,899 Impact of foreign operations (17,269 ) 173,802 (11,445 ) 94,948 Other - - - - Income tax provision (benefit) $ 7,131 $ 21,865 $ 10,800 $ 22,987 At December 31, 2016, we had U.S. net operating loss carryforwards of approximately $408,000 which expire at various times through 2035. Based on the available evidence, it is uncertain whether future U.S. taxable income will be sufficient to offset the estimated net loss carryforward, accordingly, we have recorded a valuation allowance of approximately $138,720 as of December 31, 2016. At December 31, 2016, we had Hong Kong net operating loss carryforwards of approximately $285,000 which expire at various times through 2032. Based on the available evidence, it is uncertain whether future Hong Kong taxable income will be sufficient to offset the estimated net loss carryforward, accordingly, we have recorded a valuation allowance of approximately $47,000 as of December 31, 2016. As December 31 and March 31, 2016, the Company’s and Man Loong’s differences between the book and tax basis of equipment gave rise to deferred income tax assets of $101,953 and $101,960, 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 December 31 and March 31, 2016. As a result of the implementation of ASC 740, Accounting for Income Taxes |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Dec. 31, 2016 | |
Earnings (Loss) Per Share [Abstract] | |
Earnings (Loss) Per Share | 9. Earnings (Loss) Per Share Earnings (loss) per share (“EPS”) information for the three and nine months ended December 31, 2016 and 2015 was determined by dividing net income (loss) for the period by the weighted average number of both basic and diluted shares of common stock and common stock equivalents outstanding. As of and for the three and nine months ended December 31, 2016 and 2015, the Company did not have any securities that may potentially dilute the basic earnings per share. Therefore basic and diluted earnings per share for the respective years are the same. Unaudited Nine Unaudited Nine Unaudited Three Unaudited Three 2016 2015 2016 2015 Numerator Net income (loss) attributable to common shareholders $ 26,552 $ (515,179 ) $ 41,398 $ (254,929 ) Denominator Weighted average shares of common stock (basic and diluted) 51,260,000 51,260,000 51,260,000 51,260,000 Basic and diluted earnings (loss) per share $ 0.00 $ (0.00 ) $ 0.00 $ (0.00 ) |
Related Party Transactions and
Related Party Transactions and Balances | 9 Months Ended |
Dec. 31, 2016 | |
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 $3,868 per month for the three and nine months ended December 31, 2016 and 2015 and is recorded as trading platform rent as a component of general and administrative expenses. Included in trading platform rental fees in the accompanying unaudited condensed consolidated statements of comprehensive income (loss) for the nine months ended December 31, 2016 and 2015, are rental fees which were paid to True Technology of $34,803 and $34,834 respectively. Rental fees paid to True Technology for the three months ended December 31, 2016 and 2015 were $11,602 and $11,612 respectively. Included in employee compensation and benefits in the accompanying unaudited condensed consolidated statements of comprehensive income for the nine months ending December 31, 2016 and 2015, are salaries and director compensation of $29,647 and $23,222 respectively, which were paid to two of the Company’s directors and shareholders. Compensation and benefits paid to these shareholders for the three months ended December 31, 2016 and 2015 were $11,602 and $7,742 respectively . |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Dec. 31, 2016 | |
Commitments and contingencies [Abstract] | |
Commitments and contingencies | 11. Commitments and contingencies The Company leases office space under non-cancellable operating lease agreements that expire on various dates through 2018. In December 2012, the Company entered into a lease agreement on approximately 10,000 square feet of office space which replaced its previous office facilities. The Company occupied the space in January 2013. Under terms of the lease, the Company paid approximately $192,000 in lease deposits and was committed to lease and management fee payments of approximately $46,647 per month for 29 months. In September 2015, the Company entered into a new lease agreement on approximately 5,500 square feet of office space which replaced its previous office facilities. The Company occupied the space in December 2015. Under terms of the lease, the Company paid approximately $147,397 in lease deposits and was committed to lease and management fee payments of approximately $27,209 per month for 35 months. In May 2016, the Company entered into a new lease agreement for additional office space. The Company occupied the space in July 2016. Under terms of the lease, the Company paid approximately $44,155 in lease deposits and is committed to lease and management fee payments of approximately $10,645 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. In April 2015, the trading platform lease with True Technology was renewed for 2 years with monthly payment of approximately $3,868 until March 31, 2017. Years ending December 31, 2017 465,604 2018 364,743 $ 830,347 As of December 31, 2016, the Company has no capital commitments or contingencies in the next twelve months. |
Subsequent events
Subsequent events | 9 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent events | 12. Subsequent events The Company evaluated subsequent events through the date the financial statements were issued and filed with this Form 10-Q. There were no subsequent events that required recognition or disclosure. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of these 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 unaudited 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 consolidated financial statements. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 605, Revenue Recognition |
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 and nine months ended December 31, 2016 and 2015. The total amount charged to advertising expense was $353 and $4,696 for the nine months ended December 31, 2016 and 2015, respectively and $0 and $0 for the three months ended December 31, 2016 and 2015, 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 December 31, 2016 and March 31, 2016, the Company had no cash equivalents. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments ASC 820, “Fair Value Measurements 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. The Company had no financial instruments that were required to be measured at fair value for the three and nine months ended December 31, 2016 and 2015. |
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 December 31, 2016 and March 31, 2016, the Company has no reserve for credit losses nor has it incurred any bad debts for the three and nine months ended December 31, 2016 and 2015. |
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. Deposits 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. |
Property and Equipment | Property and Equipment Property and 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. Property and 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 unaudited condensed consolidated statements of comprehensive income (loss). There were no disposals of equipment for the three and nine months ended December 31, 2016 and 2015. |
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. The Company did not have a VIE as of December 31, and March 31, 2016 and for the three and nine months ended December 31, 2016 and 2015. |
Reporting Currency and Foreign Currency Translation | Reporting Currency and Foreign Currency Translation As of December 31 and March 31, 2016 and for the three and nine months ended December 31, 2016 and 2015, 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 (loss), 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 (loss) and accumulated translation adjustments are reported as a separate component of shareholders’ equity. Foreign exchange rates at December 31 and March 31, 2016 and for the three and nine months ended December 31, 2016 and 2015 are as follows: 2016 2015 Year end March 31, 2016 USD/HKD exchange rate 7.7540 - Period end USD/HKD exchange rate 7.7546 7.7503 Average USD/HKD exchange rate: Nine months ended December 31 7.7579 7.7511 Three months ended December 31 7.7571 7.7503 |
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 asset is considered impaired when the anticipated undiscounted cash flow from such an asset is less than its 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 December 31, 2016 and March 31, 2016 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 December 31, 2016 and March 31, 2016 were accepted pursuant to the Company’s agreements with certain of its independent agents. Under terms of those agreements, the Company 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 customer’s trading losses. Accordingly, the Company had no risk of loss related to customer deposits at December 31, 2016 and March 31, 2016. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The Company’s accumulated other comprehensive loss as December 31, and March 31, 2016 consist of adjustments resulting from translating Man Loong’s functional currency, the HK dollar, to its reporting currency, the U.S. dollar. |
Rental Income | Rental Income Rental income consisted of rent charged for a portion of Man Loong’s office facility which was leased on a short term lease arrangement. Agreed rental payments were $4,514 per month from January 1, 2015 until March 31, 2015 when the lease arrangement expired. Though not subject to a formal lease agreement, in April 2015, Man Loong extended the lease arrangement for a further 2 months. For the nine months ended December 31, 2016 and 2015, Man Loong recognized $0 and $9,031, respectively, and $0 and $0 for the three months ended December 31, 2016 and 2015, respectively in the accompanying unaudited condensed consolidated statements of comprehensive income. |
Income Taxes | Income Taxes The Company utilizes ASC 740, Income Taxes The Company has adopted the provisions of the interpretation, of ASC 740, Accounting for Uncertainty in Income Taxes Historically, the Company has not provided for U.S. income and foreign withholding taxes on Man Loong’s undistributed earnings, because such earnings have been retained and reinvested by Man Loong. The Company does not intend to require Man Loong 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 (Loss) per Share | Earnings (Loss) per Share The Company computes earnings (loss) per share (“EPS”) in accordance with ASC 260, Earnings Per Share 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 (loss) per share. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (Loss) is comprised of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains or losses resulting from translating Man Loong’s functional currency, the HK dollar, to its reporting currency, the U.S. dollar. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13 Financial Instruments – Credit Losses (Topic 326) Measurement of Credit on Financial Instruments In May 2016, the FASB issued ASU 2016-12 Revenue From Contracts (Topic 606) Narrow Scope Improvements and Practical Expedients In February 2016, the FASB issued ASU 2016-02 Leases (Topic 842). ASU 2016-02 establishes new guidance for the recording and disclosure of assets and liabilities that arise from leasing activity. ASU 2016-02 will require most lessees to record lease assets and lease liabilities that arise from leases on the statement of financial condition and disclose qualitative and quantitative information related to lease transactions such as variable lease payments and options to renew and terminate leases. ASU 2016-02 is effective for years beginning after December 18, 2018 and early adoption is permitted. The Company is evaluating ASU 2016-02 to determine its impact, if any, on the unaudited condensed consolidated financial statements. In January 2016, the FASB issued ASU 2016-01 Financial Instruments Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Liabilities In August 2015, the FASB issued ASU 2015-14 Revenue From Contracts With Customers (Topic 606) Deferral of the Effective Date In November 2015, the FASB issued ASU 2015-17 Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes. 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 unaudited condensed consolidated financial statements. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of estimated useful lives of the assets | Office equipment 5 years Furniture and fixtures 5 years Computer equipment 5 years |
Summary of foreign exchange rates translation | 2016 2015 Year end March 31, 2016 USD/HKD exchange rate 7.7540 - Period end USD/HKD exchange rate 7.7546 7.7503 Average USD/HKD exchange rate: Nine months ended December 31 7.7579 7.7511 Three months ended December 31 7.7571 7.7503 |
Deposits and Prepaid Expenses (
Deposits and Prepaid Expenses (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Deposits and Prepaid Expenses [Abstract] | |
Schedule of deposits and prepaid expenses | Unaudited December 31, Audited March 31, Current Prepaid rent and occupancy expenses $ 42,099 $ 29,819 Noncurrent Rent and occupancy deposits 188,395 141,084 Total deposits and prepaid expenses $ 230,494 $ 170,903 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Property and Equipment [Abstract] | |
Schedule of property and equipment, including leasehold improvements | Unaudited December 31, 2016 March 31, Office equipment $ 206,329 $ 206,345 Computer equipment 59,914 59,919 Furniture and fixtures 111,936 65,774 378,179 332,038 Less: Accumulated depreciation (134,936 ) (78,231 ) Equipment, net $ 243,243 $ 253,807 |
General and Administrative Ex24
General and Administrative Expenses (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
General and Administrative Expense [Abstract] | |
Schedule of general and administrative expenses | Unaudited Nine Unaudited Nine Unaudited Three Unaudited Three 2016 2015 2016 2015 Marketing expenses $ 255,597 $ 254,406 $ 42,903 $ 82,298 Trading platform rent 78,415 126,019 16,697 42,554 Transportation 8,118 36,171 4,967 6,366 Internet 15,864 13,620 5,395 4,713 Travel and entertainment 4,382 6,892 1,354 3,040 Computers and software 30,490 30,098 8,429 13,862 Legal and professional 133,438 115,598 26,970 35,244 Licenses 14,524 37,802 657 10,832 Occupancy 325,301 501,829 118,507 193,498 Advertising 353 4,696 - - Other 55,295 94,480 20,257 63,832 Total general and administrative expense $ 921,777 $ 1,221,611 $ 246,136 $ 456,239 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Summary of income (loss) before income taxes | Unaudited Nine Unaudited Nine Unaudited Three Unaudited Three 2016 2015 2016 2015 United States $ (38,081 ) $ (46,441 ) $ (13,230 ) $ (20,292 ) Hong Kong 71,764 (446,873 ) 65,428 (211,650 ) Income before income taxes $ 33,683 $ (493,314 ) $ 52,198 $ (231,942 ) |
Schedule of income tax provision (benefit) | Unaudited Nine Unaudited Nine Unaudited Three Unaudited Three 2016 2015 2016 2015 Current: United States $ - $ - $ - $ - Hong Kong 12,061 4,181 12,063 - Total current provision 12,061 4,181 12,063 - Deferred: United States - - - - Hong Kong (4,930 ) 17,684 (1,263 ) 22,987 Total deferred benefit (4,930 ) 17,684 (1,263 ) 22,987 Total income tax provision $ 7,131 $ 21,865 $ 10,800 $ 22,987 |
Schedule of reconciliation of the income tax provision (benefit) | Unaudited Nine Unaudited Nine Unaudited Three Unaudited Three 2016 2015 2016 2015 Income tax provision (benefit) at the U.S. statutory tax rate $ 11,452 $ (167,727 ) $ 17,747 $ (78,860 ) Valuation allowance on U.S. net operating loss carryforwards 12,948 15,790 4,498 6,899 Impact of foreign operations (17,269 ) 173,802 (11,445 ) 94,948 Other - - - - Income tax provision (benefit) $ 7,131 $ 21,865 $ 10,800 $ 22,987 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Earnings (Loss) Per Share [Abstract] | |
Schedule of basic and diluted earnings (loss) per share | Unaudited Nine Unaudited Nine Unaudited Three Unaudited Three 2016 2015 2016 2015 Numerator Net income (loss) attributable to common shareholders $ 26,552 $ (515,179 ) $ 41,398 $ (254,929 ) Denominator Weighted average shares of common stock (basic and diluted) 51,260,000 51,260,000 51,260,000 51,260,000 Basic and diluted earnings (loss) per share $ 0.00 $ (0.00 ) $ 0.00 $ (0.00 ) |
Commitments and contingencies (
Commitments and contingencies (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Commitments and contingencies [Abstract] | |
Schedule of future annual minimum lease payments | Years ending December 31, 2017 465,604 2018 364,743 $ 830,347 |
Nature of Operations and Basi28
Nature of Operations and Basis of Presentation (Detail Textuals) | Apr. 03, 2013 | Dec. 31, 2016 |
Nature of Operations and Basis of Presentation [Abstract] | ||
Date of incorporation | Jan. 28, 2013 | |
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. | |
Ownership percentage by Man Loong | 100.00% |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Details) | 9 Months Ended |
Dec. 31, 2016 | |
Office equipment | |
Property, Plant and Equipment [Line Items] | |
Equipment estimated useful lives | P5Y |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Equipment estimated useful lives | P5Y |
Computer equipment | |
Property, Plant and Equipment [Line Items] | |
Equipment estimated useful lives | P5Y |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Details 1) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Year end March 31, 2016 USD/HKD exchange rate | ||||||
Accounting Policy [Line Items] | ||||||
Average foreign exchange rate | 7.7540 | |||||
Period end USD/HKD exchange rate | ||||||
Accounting Policy [Line Items] | ||||||
Average foreign exchange rate | 7.7546 | 7.7503 | ||||
Average USD/HKD exchange rate: | ||||||
Accounting Policy [Line Items] | ||||||
Average foreign exchange rate | 7.7571 | 7.7503 | 7.7579 | 7.7511 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Detail Textuals) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |||||
Advertising expense | $ 353 | $ 4,696 | |||
Disposals of equipment | |||||
Customer deposits description | 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 customer's trading losses. | ||||
Rental payment | $ 4,514 | ||||
Lease expiration date | Mar. 31, 2015 | ||||
Rental income | $ 9,031 |
Deposits and Prepaid Expenses32
Deposits and Prepaid Expenses (Details) - USD ($) | Dec. 31, 2016 | Mar. 31, 2016 |
Current | ||
Prepaid rent and occupancy expenses | $ 42,099 | $ 29,819 |
Noncurrent | ||
Rent and occupancy deposits | 188,395 | 141,084 |
Total deposits and prepaid expenses | $ 230,494 | $ 170,903 |
Loan receivable from Global L33
Loan receivable from Global Long (Detail Textuals) | Apr. 03, 2015USD ($) | Dec. 31, 2016USD ($) | Mar. 31, 2016USD ($) | Apr. 03, 2015HKD |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan receivable from Global Long | $ 773,734 | $ 773,793 | ||
Global Long | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan receivable from Global Long | $ 773,332 | HKD 6,000,000 | ||
Interest rate on loan | 6.00% |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | Dec. 31, 2016 | Mar. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Equipment, gross | $ 378,179 | $ 332,038 |
Less: Accumulated depreciation | (134,936) | (78,231) |
Equipment, net | 243,243 | 253,807 |
Office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, gross | 206,329 | 206,345 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, gross | 59,914 | 59,919 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, gross | $ 111,936 | $ 65,774 |
Property and Equipment (Detail
Property and Equipment (Detail Textuals) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property and Equipment [Abstract] | ||||
Depreciation expense | $ 18,903 | $ 24,083 | $ 56,703 | $ 64,426 |
Customer Deposits (Detail Textu
Customer Deposits (Detail Textuals) - USD ($) | Dec. 31, 2016 | Mar. 31, 2016 |
Customer Deposits Disclosure [Abstract] | ||
Customer deposits | $ 208,731 | $ 187,037 |
General and Administrative Ex37
General and Administrative Expenses (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
General and Administrative Expense [Abstract] | ||||
Marketing expenses | $ 42,903 | $ 82,298 | $ 255,597 | $ 254,406 |
Trading platform rent | 16,697 | 42,554 | 78,415 | 126,019 |
Transportation | 4,967 | 6,366 | 8,118 | 36,171 |
Internet | 5,395 | 4,713 | 15,864 | 13,620 |
Travel and entertainment | 1,354 | 3,040 | 4,382 | 6,892 |
Computers and software | 8,429 | 13,862 | 30,490 | 30,098 |
Legal and professional | 26,970 | 35,244 | 133,438 | 115,598 |
Licenses | 657 | 10,832 | 14,524 | 37,802 |
Occupancy | 118,507 | 193,498 | 325,301 | 501,829 |
Advertising | 353 | 4,696 | ||
Other | 20,257 | 63,832 | 55,295 | 94,480 |
Total general and administrative expense | $ 246,136 | $ 456,239 | $ 921,777 | $ 1,221,611 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Abstract] | ||||
United States | $ (13,230) | $ (20,292) | $ (38,081) | $ (46,441) |
Hong Kong | 65,428 | (211,650) | 71,764 | (446,873) |
Income before income taxes | $ 52,198 | $ (231,942) | $ 33,683 | $ (493,314) |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||||
United States | ||||
Hong Kong | 12,063 | 12,061 | 4,181 | |
Total current provision | 12,063 | 12,061 | 4,181 | |
Deferred: | ||||
United States | ||||
Hong Kong | (1,263) | 22,987 | (4,930) | 17,684 |
Total deferred benefit | (1,263) | 22,987 | (4,930) | 17,684 |
Total income tax provision | $ 10,800 | $ 22,987 | $ 7,131 | $ 21,865 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Abstract] | ||||
Income tax provision (benefit) at the U.S. statutory tax rate | $ 17,747 | $ (78,860) | $ 11,452 | $ (167,727) |
Valuation allowance on U.S. net operating loss carryforwards | 4,498 | 6,899 | 12,948 | 15,790 |
Impact of foreign operations | (11,445) | 94,948 | (17,269) | 173,802 |
Other | ||||
Total income tax provision (benefit) | $ 10,800 | $ 22,987 | $ 7,131 | $ 21,865 |
Income Taxes (Detail Textuals)
Income Taxes (Detail Textuals) - USD ($) | 9 Months Ended | |
Dec. 31, 2016 | Mar. 31, 2016 | |
Tax Credit Carryforward [Line Items] | ||
Statutory income tax rate | 16.50% | |
Deferred income taxes | $ 101,953 | $ 101,960 |
Hong Kong | ||
Tax Credit Carryforward [Line Items] | ||
Operating loss carryforwards | $ 285,000 | |
Operating loss carryforwards, expiration date | Mar. 31, 2032 | |
Operating loss valuation allowance | $ 47,000 | |
U.S. | ||
Tax Credit Carryforward [Line Items] | ||
Operating loss carryforwards | $ 408,000 | |
Operating loss carryforwards, expiration date | Mar. 31, 2035 | |
Operating loss valuation allowance | $ 138,720 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2016 | ||
Numerator | ||||||
Net income (loss) attributable to common shareholders (in dollars) | $ 41,398 | $ (254,929) | $ 26,552 | $ (515,179) | $ (509,750) | |
Denominator | ||||||
Weighted average shares of common stock (basic and diluted) | [1] | 512,600,000 | 512,600,000 | 512,600,000 | 512,600,000 | |
Basic and diluted earnings (loss) per share | $ 0 | $ 0 | $ 0 | $ 0 | ||
[1] | The Company's weighted average common shares outstanding for both basic and diluted earnings per share have been restated for the effects of the 10 for 1 stock split which was effective in March 2015. See Note 13 for further discussion. |
Related Party Transactions an43
Related Party Transactions and Balances (Detail Textuals) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||||
Compensation and benefits paid | $ 11,602 | $ 7,742 | $ 29,647 | $ 23,222 |
True Technology | ||||
Related Party Transaction [Line Items] | ||||
Related party internet service fees | 3,868 | 3,868 | 3,868 | 3,868 |
Rental fees | $ 11,602 | $ 11,612 | $ 34,803 | $ 34,834 |
Commitments and contingencies44
Commitments and contingencies (Details) | Dec. 31, 2016USD ($) |
Years ending December 31 | |
2,017 | $ 465,604 |
2,018 | 364,743 |
Future annual minimum lease payments | $ 830,347 |
Commitments and contingencies45
Commitments and contingencies (Detail Textuals) | 1 Months Ended | 9 Months Ended | |||
May 31, 2016USD ($) | Sep. 30, 2015USD ($)ft² | Apr. 30, 2015USD ($) | Dec. 31, 2012USD ($)ft² | Dec. 31, 2016 | |
Commitments And Contingencies [Line Items] | |||||
Area of office space | ft² | 5,500 | 10,000 | |||
Lease deposits | $ 44,155 | $ 147,397 | $ 192,000 | ||
Management fee payments | $ 10,645 | $ 27,209 | $ 46,647 | ||
Leasing payments term | 29 months | 35 months | 29 months | ||
Lease expiration date | Mar. 31, 2015 | ||||
True Technology | |||||
Commitments And Contingencies [Line Items] | |||||
Renewal term | 2 years | ||||
Monthly payment | $ 3,868 | ||||
Lease expiration date | Mar. 31, 2017 |