Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 30, 2017 | Nov. 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 | Sep. 30, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2017 | Mar. 31, 2017 |
Current Assets | ||
Cash | $ 1,049,831 | $ 1,061,609 |
Commissions receivable | 648,990 | 546,310 |
Deposits and prepaid expenses | 82,495 | 42,142 |
Total current assets | 1,781,316 | 1,650,061 |
Noncurrent Assets | ||
Deposits and prepaid expenses | 195,684 | 188,010 |
Equipment, net | 186,753 | 224,350 |
Loan receivable from Global Long Inc. Limited | 772,157 | |
Deferred income taxes | 2,474 | 71,221 |
Total noncurrent assets | 384,911 | 1,255,738 |
Total assets | 2,166,227 | 2,905,799 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 160,279 | 56,161 |
Amount due to directors | 236,160 | 313,050 |
Amount due to a related company | 48,369 | |
Customer deposits | 95,089 | 212,886 |
Total current liabilities | 539,897 | 582,097 |
Noncurrent Liabilities: | ||
Deferred income taxes | 466 | |
Total noncurrent liabilities | 466 | |
Total liabilities | 539,897 | 582,563 |
Commitments | ||
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 | 194,427 | 818,849 |
Accumulated other comprehensive loss | (96,761) | (24,277) |
Total shareholders' equity | 1,626,330 | 2,323,236 |
Total liabilities and shareholders' equity | $ 2,166,227 | $ 2,905,799 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2017 | Mar. 31, 2017 |
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 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
REVENUES | ||||
Commission revenue | $ 35,690 | $ 561,178 | $ 126,454 | $ 1,034,416 |
EXPENSES | ||||
General and administrative | 211,091 | 330,115 | 415,307 | 675,632 |
Employee compensation and benefits | 142,678 | 186,183 | 320,147 | 360,601 |
Depreciation and amortization | 18,763 | 18,905 | 37,597 | 37,800 |
Total expenses | 372,532 | 535,203 | 773,051 | 1,074,033 |
(LOSS) INCOME FROM OPERATIONS | (336,842) | 25,975 | (646,597) | (39,617) |
OTHER INCOME | ||||
Interest income, net | 8,005 | 7,743 | 19,698 | 21,107 |
Total other income | 8,005 | 7,743 | 19,698 | 21,107 |
(LOSS) INCOME BEFORE INCOME TAXES | (328,837) | 33,718 | (626,899) | (18,510) |
INCOME TAX PROVISION (BENEFIT) | ||||
Current | 0 | 0 | 0 | 0 |
Deferred | 5 | (2,405) | (2,477) | (3,668) |
Total income tax provision (benefit) | 5 | (2,405) | (2,477) | (3,668) |
NET (LOSS) INCOME | (328,842) | 36,123 | (624,422) | (14,842) |
OTHER COMPREHENSIVE (LOSS) INCOME | ||||
Foreign currency translation | (68,205) | 1,056 | (72,484) | (343) |
COMPREHENSIVE (LOSS) INCOME | $ (397,047) | $ 37,179 | $ (696,906) | $ (15,185) |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | ||||
Basic and diluted (in shares) | 512,600,000 | 512,600,000 | 512,600,000 | 512,600,000 |
BASIC AND DILUTED (LOSS) EARNINGS PER COMMON SHARE | ||||
Basic and diluted (loss) earnings per common share (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Shareholders' Equity - USD ($) | Common Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total |
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 | (55,105) | (55,105) | |||
Foreign currency translation adjustment | (22,753) | (22,753) | |||
BALANCE at Mar. 31, 2017 | $ 51,260 | 1,477,404 | 818,849 | (24,277) | 2,323,236 |
BALANCE (in shares) at Mar. 31, 2017 | 512,600,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (624,422) | (624,422) | |||
Foreign currency translation adjustment | (72,484) | (72,484) | |||
BALANCE at Sep. 30, 2017 | $ 51,260 | $ 1,477,404 | $ 194,427 | $ (96,761) | $ 1,626,330 |
BALANCE (in shares) at Sep. 30, 2017 | 512,600,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
OPERATING ACTIVITIES: | ||
Net loss | $ (624,422) | $ (14,842) |
Adjustments to reconcile net loss to net Cash used in operating activities | ||
Depreciation and amortization | 37,597 | 37,800 |
Changes in operating assets and liabilities: | ||
Commissions receivable | (105,664) | (102,130) |
Loan receivable from Global Long Inc. Limited | 769,210 | |
Deposits and prepaid expenses | (49,291) | (87,103) |
Accounts payable and accrued liabilities | 104,476 | (649) |
Amount due to a director | (75,370) | |
Amount due to a related company | 48,436 | |
Customer deposits | (116,853) | 16,543 |
Deferred income taxes | (2,477) | (3,668) |
Net cash used in operating activities | (14,358) | (200,193) |
FINANCING ACTIVITIES: | ||
Bank overdraft | (30,628) | |
Net cash used in financing activities | (30,628) | |
NET DECREASE IN CASH | (14,358) | (230,821) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 2,580 | (150) |
Cash, beginning of period | 1,061,609 | 1,109,465 |
Cash, end of period | 1,049,831 | 878,494 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash paid for income taxes | $ 0 | $ 0 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 6 Months Ended |
Sep. 30, 2017 | |
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. 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. Description of subsidiaries Name Place of incorporation and kind of legal entity Principal activities and place of operation Particulars paid-up capital Effective interest held Man Loong Bullion Company Limited (“Man Loong”) Hong Kong, a limited liability company Provision of sub-agency service in London gold dealing HK$10,152,000 100% Shenzhen Qianhai Man Loong Bullion Company Limited (“SQML”) The PRC, a limited liability company Provision of gold trading service in the PRC RMB2,000,000 100% eBullion and its subsidiaries are hereinafter referred to as (the “Company”). Basis of Presentation The Company’s 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”). The Company’s and Man Loong’s fiscal year end is March 31. The accompanying unaudited condensed consolidated financial statements have been prepared by management in accordance with both accounting principles generally accepted in the United States (“GAAP”), and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and note disclosures normally included in audited financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. In the opinion of management, the consolidated balance sheet as of March 31, 2017 which has been derived from audited financial statements and these unaudited condensed consolidated financial statements reflect all normal and recurring adjustments considered necessary to state fairly the results for the periods presented. The results for the period ended September 30, 2017 are not necessarily indicative of the results to be expected for the entire fiscal year ending March 31, 2018 or for any future period. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the Management’s Discussion and the audited financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended March 31, 2017. Principles of Consolidation The condensed consolidated financial statements as of September 30, 2017, 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 | 6 Months Ended |
Sep. 30, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Use of Estimates The preparation of these 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 condensed consolidated financial statements and the reported amounts of revenue and expenses during the year. 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 years to conform to the current presentation. Such reclassifications had no effect on net income (loss). Revenue Recognition The Company recognizes revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 605, Revenue Recognition 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 six months or less. As of September 30, 2017 and March 31, 2017, the Company had no cash equivalents. The Company reclassifies cash overdrafts to accounts payable. 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. 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 180 days of trade execution. The Company has not historically incurred credit losses on these commissions receivable. As of September 30, 2017 and March 31, 2017, the Company had no reserve for credit losses nor had it incurred any bad debts for the six months ended September 30, 2017 and 2016. 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 (loss). Reporting Currency and Foreign Currency Translation As of September 30, 2017 and March 31, 2017 and for the six months ended September 30, 2017 and 2016, 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 (loss) and accumulated translation adjustments are reported as a separate component of shareholders’ equity. Foreign exchange rates used: 2017 2016 Six months ended September 30, 2017 USD/HKD exchange rate 7.8110 7.7548 Average USD/HKD exchange rate: 7.8002 7.7582 Six months ended September 30, 2017 USD/RMB exchange rate 1.1737 1.1625 Average USD/RMB exchange rate: 1.1531 1.1755 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 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 September 30, 2017 and March 31, 2017 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 September 30, 2017 and March 31, 2017 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 September 30, 2017 and March 31, 2017. Accumulated Other Comprehensive (Loss) The Company’s accumulated other comprehensive (loss) as September 30, 2017 and March 31, 2017 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 The Company has adopted the provisions of the interpretation, of ASC 740, Accounting for Uncertainty in Income Taxes Historically, we have 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 and losses resulting from translating Man Loong’s functional currency, the HK dollar, to its reporting currency, the U.S. dollar. Recent Accounting Pronouncements In January 2017, the FASB has issued Accounting Standards Update (ASU) No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” These amendments eliminate Step 2 from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. Effective for public business entities that are a SEC filers for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. ASU 2017-04 should be adopted on a prospective basis. In December 2016, the FASB has issued Accounting Standards Update (ASU) No. 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers.” The amendments affect narrow aspects of the guidance issued in ASU 2014-09 including Loan Guarantee Fees, Contract Costs, Provisions for Losses on Construction-Type and Production-Type Contracts, Disclosure of Remaining Performance Obligations, Disclosure of Prior Period Performance Obligations, Contract Modifications, Contract Asset vs. Receivable, Refund Liability, Advertising Costs, Fixed Odds Wagering Contracts in the Casino Industry, and Costs Capitalized for Advisors to Private Funds and Public Funds. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements for FASB Accounting Standards Codification Topic 606. Public entities should apply Topic 606 (and related amendments) for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein. Management has considered all recent accounting pronouncements issued. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s financial statements. |
Deposits and Prepaid Expenses
Deposits and Prepaid Expenses | 6 Months Ended |
Sep. 30, 2017 | |
Deposits and Prepaid Expenses [Abstract] | |
Deposits and prepaid expenses | 3. Deposits and Prepaid Expenses Deposits and prepaid expenses consisted of the following as of September 30, 2017 and March 31, 2017. Unaudited Audited September 30, 2017 March 31, 2017 Current Prepaid rent and occupancy expenses $ 82,495 $ 42,142 Noncurrent Rent and occupancy deposits 195,684 188,010 Total deposits and prepaid expenses $ 278,179 $ 230,152 |
Loan receivable from Global Lon
Loan receivable from Global Long | 6 Months Ended |
Sep. 30, 2017 | |
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”) $774,164 (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 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 condensed consolidated Global Long into its condensed consolidated financial statements. At September 30, 2017, the loan receivable from Global Long was fully repaid. |
Equipment
Equipment | 6 Months Ended |
Sep. 30, 2017 | |
Property and Equipment [Abstract] | |
Equipment | 5. Equipment Equipment, including leasehold improvements, consisted of the following as of September 30, 2017 and March 31, 2017 Unaudited September 30, 2017 Audited March 31, 2017 Office equipment $ 206,345 $ 206,345 Computer equipment 59,919 59,919 Furniture and fixtures 111,916 111,916 378,180 378,180 Less: Accumulated depreciation (191,427 ) (153,830 ) Equipment, net $ 186,753 $ 224,350 Depreciation expense was $37,597 and $37,800 for the six months ended September 30, 2017 and 2016, respectively, and was recorded as depreciation expense in the accompanying condensed consolidated statements of comprehensive (loss) income. |
General and Administrative Expe
General and Administrative Expenses | 6 Months Ended |
Sep. 30, 2017 | |
General and Administrative Expense [Abstract] | |
General and Administrative Expenses | 6. General and Administrative Expenses General and administrative expenses consist of the following for the three and six months ended September 30, 2017 and 2016. Three months ended September 30, Six months ended September 30, 2017 2016 2017 2016 Marketing expenses $ - $ 97,837 $ 8,582 $ 212,688 Trading platform rent 30,030 24,929 56,152 61,716 Transportation 71 2,014 826 3,152 Internet 7,944 5,608 12,649 10,469 Travel and entertainment - 2,673 612 3,028 Computers and software 7,648 7,856 14,862 22,061 Legal and professional 41,658 41,700 63,377 106,466 Licenses 574 10,443 1,974 13,866 Occupancy 109,180 117,266 230,181 206,795 Advertising 1,280 124 2,564 353 Other 12,706 19,665 23,528 35,038 Total general and administrative expense $ 211,091 $ 330,115 $ 415,307 $ 675,632 |
Income Taxes
Income Taxes | 6 Months Ended |
Sep. 30, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | 7 . Income Taxes (Loss) income before income taxes as shown in the accompanying condensed consolidated statements of comprehensive (loss) income is summarized below for the six months ended September 30, 2017 and 2016. Six months ended September 30, 2017 2016 United States $ (19,436 ) (24,851 ) Hong Kong (607,463 ) 6,341 (Loss) income before income taxes $ (626,899 ) (18,510 ) The provision (benefit) for income taxes consists of the following for the six months ended September 30, 2017 and 2016: Six months Ended September 30, 2017 2016 Current: United States $ - $ - Hong Kong - - Total current provision - - Deferred: United States - - Hong Kong (2,477 ) (3,668 ) Total deferred benefit (2,477 ) (3,668 ) Total income tax provision (benefit) $ (2,477 ) $ (3,668 ) The reconciliation of the income tax provision to the amount computed by applying the U.S. statutory federal income tax rate to (loss) income before income taxes is as follows: Six months Ended September 30, 2017 2016 Income tax provision (benefit) at the U.S. statutory tax rate $ (213,145 ) $ (6,293 ) Valuation allowance on U.S. net operating loss carryforwards 6,608 8,449 Impact of foreign operations 204,060 (5,824 ) Income tax provision (benefit) $ (2,477 ) $ (3,668 ) At September 30, 2017, the Company had U.S. net operating loss carryforwards of approximately $480,000 which expire in 2037. 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, the Company has recorded a valuation allowance of approximately $163,200 as of September 30, 2017. At September 30, 2017 and March 31, 2017, the Company’s and Man Loong’s differences between the book and tax basis of equipment gave rise to deferred income tax asset of $2,474 and $71,221, respectively which are recorded as noncurrent in the accompanying condensed consolidated statements of financial condition. The Company had no other differences between the book and tax basis of assets and liabilities as at September 30, 2017 and March 31, 2017. As a result of the implementation of ASC 740, Accounting for Income Taxes |
Related Party Transactions and
Related Party Transactions and Balances | 6 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions and Balances [Abstract] | |
Related Party Transactions and Balances | 8. 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 expense as a component of general and administrative expenses. Included in general and administrative expenses in the accompanying unaudited condensed consolidated statements of comprehensive (loss) income for the six months ended September 30, 2017 and 2016, are rental fees which were paid to True Technology of $23,076 and $23,201 respectively. Included in employee compensation and benefits in the accompanying condensed consolidated statements of comprehensive (loss) income for the six months ended September 30, 2017 and 2016, are salaries and director compensation of $19,230 and $18,045 respectively, which were paid to two of the Company’s directors and shareholders. |
Commitments
Commitments | 6 Months Ended |
Sep. 30, 2017 | |
Commitments and contingencies [Abstract] | |
Commitments | 9. Commitments The Company leases office space under non-cancellable operating lease agreements that expire on various dates through 2019. 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 will replace its previous office facilities. The Company will occupy the space in December 2015. Under terms of the lease, the Company paid approximately $147,397 in lease deposits and is committed to lease and management fee payments of approximately $27,209 per month for 35 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 $3,866 per month for 24 months. In April 2017, the trading platform lease with True Technology was renewed for 2 years with monthly payment of approximately $3,866 until March 31, 2019. Future annual minimum lease payments, including maintenance and management fees, for non-cancellable operating leases and trading platform fees, are as follows: Years ending September 30, 2018 $ 504,710 2019 47,478 $ 552,188 |
Subsequent events
Subsequent events | 6 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent events | 10. Subsequent events In accordance with ASC Topic 855, “ Subsequent Events |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Sep. 30, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company’s 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"). The Company’s and Man Loong’s fiscal year end is March 31. The accompanying unaudited condensed consolidated financial statements have been prepared by management in accordance with both accounting principles generally accepted in the United States ("GAAP"), and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and note disclosures normally included in audited financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. In the opinion of management, the consolidated balance sheet as of March 31, 2017 which has been derived from audited financial statements and these unaudited condensed consolidated financial statements reflect all normal and recurring adjustments considered necessary to state fairly the results for the periods presented. The results for the period ended September 30, 2017 are not necessarily indicative of the results to be expected for the entire fiscal year ending March 31, 2018 or for any future period. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the Management’s Discussion and the audited financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended March 31, 2017. |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements as of September 30, 2017, include the accounts of eBullion and its wholly owned subsidiary, Man Loong. All significant intercompany transactions have been eliminated. |
Use of Estimates | Use of Estimates · 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 years to conform to the current presentation. Such reclassifications had no effect on net income (loss). |
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. |
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 six months or less. As of September 30, 2017 and March 31, 2017, the Company had no cash equivalents. The Company reclassifies cash overdrafts to accounts payable. |
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. |
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 180 days of trade execution. The Company has not historically incurred credit losses on these commissions receivable. As of September 30, 2017 and March 31, 2017, the Company had no reserve for credit losses nor had it incurred any bad debts for the six months ended September 30, 2017 and 2016. |
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 (loss). |
Reporting Currency and Foreign Currency Translation | Reporting Currency and Foreign Currency Translation As of September 30, 2017 and March 31, 2017 and for the six months ended September 30, 2017 and 2016, 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 (loss) and accumulated translation adjustments are reported as a separate component of shareholders’ equity. Foreign exchange rates used: 2017 2016 Six months ended September 30, 2017 USD/HKD exchange rate 7.8110 7.7548 Average USD/HKD exchange rate: 7.8002 7.7582 Six months ended September 30, 2017 USD/RMB exchange rate 1.1737 1.1625 Average USD/RMB exchange rate: 1.1531 1.1755 |
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 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 September 30, 2017 and March 31, 2017 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 September 30, 2017 and March 31, 2017 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 September 30, 2017 and March 31, 2017. |
Accumulated Other Comprehensive (Loss) | Accumulated Other Comprehensive (Loss) The Company’s accumulated other comprehensive (loss) as September 30, 2017 and March 31, 2017 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 The Company has adopted the provisions of the interpretation, of ASC 740, Accounting for Uncertainty in Income Taxes Historically, we have 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 and 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 January 2017, the FASB has issued Accounting Standards Update (ASU) No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” These amendments eliminate Step 2 from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. Effective for public business entities that are a SEC filers for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. ASU 2017-04 should be adopted on a prospective basis. In December 2016, the FASB has issued Accounting Standards Update (ASU) No. 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers.” The amendments affect narrow aspects of the guidance issued in ASU 2014-09 including Loan Guarantee Fees, Contract Costs, Provisions for Losses on Construction-Type and Production-Type Contracts, Disclosure of Remaining Performance Obligations, Disclosure of Prior Period Performance Obligations, Contract Modifications, Contract Asset vs. Receivable, Refund Liability, Advertising Costs, Fixed Odds Wagering Contracts in the Casino Industry, and Costs Capitalized for Advisors to Private Funds and Public Funds. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements for FASB Accounting Standards Codification Topic 606. Public entities should apply Topic 606 (and related amendments) for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein. Management has considered all recent accounting pronouncements issued. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s financial statements. |
Nature of Operations and Basi18
Nature of Operations and Basis of Presentation (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Nature of Operations and Basis of Presentation [Abstract] | |
Schedule of description of subsidiaries | Name Place of incorporation and kind of legal entity Principal activities and place of operation Particulars paid-up capital Effective interest held Man Loong Bullion Company Limited (“Man Loong”) Hong Kong, a limited liability company Provision of sub-agency service in London gold dealing HK$10,152,000 100% Shenzhen Qianhai Man Loong Bullion Company Limited (“SQML”) The PRC, a limited liability company Provision of gold trading service in the PRC RMB2,000,000 100% |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of estimated useful lives of the assets | Office equipment 5 years Furniture and fixtures 5 years Computer equipment 5 years |
Schedule of foreign exchange rates translation | 2017 2016 Six months ended September 30, 2017 USD/HKD exchange rate 7.8110 7.7548 Average USD/HKD exchange rate: 7.8002 7.7582 Six months ended September 30, 2017 USD/RMB exchange rate 1.1737 1.1625 Average USD/RMB exchange rate: 1.1531 1.1755 |
Deposits and Prepaid Expenses (
Deposits and Prepaid Expenses (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Deposits and Prepaid Expenses [Abstract] | |
Schedule of deposits and prepaid expenses | Unaudited Audited September 30, 2017 March 31, 2017 Current Prepaid rent and occupancy expenses $ 82,495 $ 42,142 Noncurrent Rent and occupancy deposits 195,684 188,010 Total deposits and prepaid expenses $ 278,179 $ 230,152 |
Equipment (Tables)
Equipment (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Property and Equipment [Abstract] | |
Schedule of property and equipment, including leasehold improvements | Unaudited September 30, 2017 Audited March 31, 2017 Office equipment $ 206,345 $ 206,345 Computer equipment 59,919 59,919 Furniture and fixtures 111,916 111,916 378,180 378,180 Less: Accumulated depreciation (191,427 ) (153,830 ) Equipment, net $ 186,753 $ 224,350 |
General and Administrative Ex22
General and Administrative Expenses (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
General and Administrative Expense [Abstract] | |
Schedule of general and administrative expenses | Three months ended September 30, Six months ended September 30, 2017 2016 2017 2016 Marketing expenses $ - $ 97,837 $ 8,582 $ 212,688 Trading platform rent 30,030 24,929 56,152 61,716 Transportation 71 2,014 826 3,152 Internet 7,944 5,608 12,649 10,469 Travel and entertainment - 2,673 612 3,028 Computers and software 7,648 7,856 14,862 22,061 Legal and professional 41,658 41,700 63,377 106,466 Licenses 574 10,443 1,974 13,866 Occupancy 109,180 117,266 230,181 206,795 Advertising 1,280 124 2,564 353 Other 12,706 19,665 23,528 35,038 Total general and administrative expense $ 211,091 $ 330,115 $ 415,307 $ 675,632 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Income Taxes [Abstract] | |
Schedule of income (loss) before income taxes | Six months ended September 30, 2017 2016 United States $ (19,436 ) (24,851 ) Hong Kong (607,463 ) 6,341 (Loss) income before income taxes $ (626,899 ) (18,510 ) |
Schedule of income tax provision (benefit) | Six months Ended September 30, 2017 2016 Current: United States $ - $ - Hong Kong - - Total current provision - - Deferred: United States - - Hong Kong (2,477 ) (3,668 ) Total deferred benefit (2,477 ) (3,668 ) Total income tax provision (benefit) $ (2,477 ) $ (3,668 ) |
Schedule of reconciliation of the income tax provision (benefit) | Six months Ended September 30, 2017 2016 Income tax provision (benefit) at the U.S. statutory tax rate $ (213,145 ) $ (6,293 ) Valuation allowance on U.S. net operating loss carryforwards 6,608 8,449 Impact of foreign operations 204,060 (5,824 ) Income tax provision (benefit) $ (2,477 ) $ (3,668 ) |
Commitments (Tables)
Commitments (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Commitments and contingencies [Abstract] | |
Schedule of future annual minimum lease payments | Years ending September 30, 2018 $ 504,710 2019 47,478 $ 552,188 |
Nature of Operations and Basi25
Nature of Operations and Basis of Presentation (Details) - 6 months ended Sep. 30, 2017 - Limited liability company | HKD | CNY (¥) |
Man Loong Bullion Company Limited ("Man Loong") | Hong Kong | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Principal activities and place of operation | Provision of sub-agency service in London gold dealing | |
Particulars paid-up capital | HKD | HKD 10,152,000 | |
Effective interest held | 100.00% | |
Shenzhen Qianhai Man Loong Bullion Company Limited ("SQML") | PRC | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Principal activities and place of operation | Provision of gold trading service in the PRC | |
Particulars paid-up capital | ¥ | ¥ 2,000,000 | |
Effective interest held | 100.00% |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Details) | 6 Months Ended |
Sep. 30, 2017 | |
Office equipment | |
Property, Plant and Equipment [Line Items] | |
Equipment estimated useful lives | 5 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Equipment estimated useful lives | 5 years |
Computer equipment | |
Property, Plant and Equipment [Line Items] | |
Equipment estimated useful lives | 5 years |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Details 1) | 6 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Six months ended USD/HKD exchange rate | ||
Accounting Policy [Line Items] | ||
Foreign exchange rate | 7.8110 | 7.7548 |
Average USD/HKD exchange rate: | ||
Accounting Policy [Line Items] | ||
Foreign exchange rate | 7.8002 | 7.7582 |
Six months ended USD/RMB exchange rate | ||
Accounting Policy [Line Items] | ||
Foreign exchange rate | 1.1737 | 1.1625 |
Average USD/RMB exchange rate | ||
Accounting Policy [Line Items] | ||
Foreign exchange rate | 1.1531 | 1.1755 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Detail Textuals) | 6 Months Ended |
Sep. 30, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
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. |
Deposits and Prepaid Expenses29
Deposits and Prepaid Expenses (Details) - USD ($) | Sep. 30, 2017 | Mar. 31, 2017 |
Current | ||
Prepaid rent and occupancy expenses | $ 82,495 | $ 42,142 |
Noncurrent | ||
Rent and occupancy deposits | 195,684 | 188,010 |
Total deposits and prepaid expenses | $ 278,179 | $ 230,152 |
Loan receivable from Global L30
Loan receivable from Global Long (Detail Textuals) | Apr. 03, 2015USD ($) | Mar. 31, 2017USD ($) | Apr. 03, 2015HKD |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan receivable from Global Long Inc. Limited | $ 772,157 | ||
Global Long | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan receivable from Global Long Inc. Limited | $ 774,164 | HKD 6,000,000 | |
Interest rate on loan | 6.00% |
Equipment (Details)
Equipment (Details) - USD ($) | Sep. 30, 2017 | Mar. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Equipment, gross | $ 378,180 | $ 378,180 |
Less: Accumulated depreciation | (191,427) | (153,830) |
Equipment, net | 186,753 | 224,350 |
Office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, gross | 206,345 | 206,345 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, gross | 59,919 | 59,919 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, gross | $ 111,916 | $ 111,916 |
Equipment (Detail Textuals)
Equipment (Detail Textuals) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Property and Equipment [Abstract] | ||||
Depreciation expense | $ 18,763 | $ 18,905 | $ 37,597 | $ 37,800 |
General and Administrative Ex33
General and Administrative Expenses (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
General and Administrative Expense [Abstract] | ||||
Marketing expenses | $ 0 | $ 97,837 | $ 8,582 | $ 212,688 |
Trading platform rent | 30,030 | 24,929 | 56,152 | 61,716 |
Transportation | 71 | 2,014 | 826 | 3,152 |
Internet | 7,944 | 5,608 | 12,649 | 10,469 |
Travel and entertainment | 0 | 2,673 | 612 | 3,028 |
Computers and software | 7,648 | 7,856 | 14,862 | 22,061 |
Legal and professional | 41,658 | 41,700 | 63,377 | 106,466 |
Licenses | 574 | 10,443 | 1,974 | 13,866 |
Occupancy | 109,180 | 117,266 | 230,181 | 206,795 |
Advertising | 1,280 | 124 | 2,564 | 353 |
Other | 12,706 | 19,665 | 23,528 | 35,038 |
Total general and administrative expense | $ 211,091 | $ 330,115 | $ 415,307 | $ 675,632 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Tax jurisdictions from: | ||||
Local | $ (19,436) | $ (24,851) | ||
(Loss) income before income taxes | $ (328,837) | $ 33,718 | (626,899) | (18,510) |
HONG KONG | ||||
Tax jurisdictions from: | ||||
Foreign | $ (607,463) | $ 6,341 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Current: | ||||
United States | $ 0 | $ 0 | ||
Total current provision | $ 0 | $ 0 | 0 | 0 |
Deferred: | ||||
United States | 0 | 0 | ||
Total deferred benefit | 5 | (2,405) | (2,477) | (3,668) |
Total income tax provision (benefit) | $ 5 | $ (2,405) | (2,477) | (3,668) |
Hong Kong | ||||
Current: | ||||
Foreign | 0 | 0 | ||
Deferred: | ||||
Foreign | $ (2,477) | $ (3,668) |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Taxes [Abstract] | ||||
Income tax provision (benefit) at the U.S. statutory tax rate | $ (213,145) | $ (6,293) | ||
Valuation allowance on U.S. net operating loss carryforwards | 6,608 | 8,449 | ||
Impact of foreign operations | 204,060 | (5,824) | ||
Total income tax provision (benefit) | $ 5 | $ (2,405) | $ (2,477) | $ (3,668) |
Income Taxes (Detail Textuals)
Income Taxes (Detail Textuals) - USD ($) | 6 Months Ended | |
Sep. 30, 2017 | Mar. 31, 2017 | |
Income Taxes [Abstract] | ||
Operating loss carryforwards | $ 480,000 | |
Operating loss valuation allowance | 163,200 | |
Deferred income taxe assets | $ 2,474 | $ 71,221 |
Operating loss carryforwards, expiration date | Mar. 31, 2037 |
Related Party Transactions an38
Related Party Transactions and Balances (Detail Textuals) - USD ($) | 1 Months Ended | 6 Months Ended | ||
Apr. 30, 2013 | May 27, 2011 | Sep. 30, 2017 | Sep. 30, 2016 | |
Related Party Transaction [Line Items] | ||||
Salaries and director compensation | $ 19,230 | $ 18,045 | ||
True Technology Company Limited ("True Technology") | ||||
Related Party Transaction [Line Items] | ||||
Related party internet service fees | $ 3,868 | $ 12,894 | ||
Rental fees | $ 23,076 | $ 23,201 |
Commitments and contingencies (
Commitments and contingencies (Details) | Sep. 30, 2017USD ($) |
Years ending March 31, | |
2,018 | $ 504,710 |
2,019 | 47,478 |
Future annual minimum lease payments | $ 552,188 |
Commitments and contingencies40
Commitments and contingencies (Detail Textuals) | 1 Months Ended | |||
Apr. 30, 2017USD ($) | Sep. 30, 2015USD ($)ft² | Dec. 31, 2012USD ($)ft² | May 27, 2011USD ($) | |
Commitments And Contingencies [Line Items] | ||||
Area of office space | ft² | 5,500 | 10,000 | ||
Lease deposits | $ 147,397 | $ 192,000 | ||
Payment for management fee | $ 27,209 | $ 46,647 | ||
Lease term | 35 months | 29 months | ||
True Technology Company Limited ("True Technology") | ||||
Commitments And Contingencies [Line Items] | ||||
Fees paid per month for 12 months | $ 12,894 | |||
Renewal term | 2 years | |||
Monthly payment for 24 months | $ 3,866 | |||
Lease expiration date | Mar. 31, 2019 |