Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 13, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | Image International Group, Inc. | |
Entity Central Index Key | 1,578,523 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 113,059,000 | |
Trading Symbol | IMGL | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,018 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash | $ 616,277 | $ 986,821 |
Fixed deposits - Pledged | 302,247 | |
Deposits and other receivables | 58,893 | 39,439 |
Amount due from related parties | 188,168 | 57,955 |
Total Current Assets | 1,165,585 | 1,084,215 |
Property, Plant and Equipment, net | 193,118 | 198,548 |
Intangible Assets, net | 1,702,363 | 1,753,907 |
Total Non-current Assets | 1,895,481 | 1,952,455 |
Total Assets | 3,061,066 | 3,036,670 |
Current Liabilities | ||
Short-term loans | 476,151 | 484,260 |
Other payables and accrued liabilities | 572,024 | 559,578 |
Notes payable | 302,247 | |
Due to related parties | 3,490,033 | 3,005,353 |
Total Current Liabilities | 4,840,455 | 4,049,191 |
Total Liabilities | 4,840,455 | 4,049,191 |
Ordinary shares | ||
Common stock, 1,000,000,000 shares authorized, $0.001 par value, 113,059,000 and 414,059,000 shares issued and outstanding of June 30, 2018 and December 31, 2017 respectively | 113,059 | 414,059 |
Additional paid-in capital | (1,356,456) | (1,070,222) |
Accumulated deficit | (470,803) | (352,254) |
Accumulated other comprehensive income | (65,189) | 9,955 |
Total Stockholders' Equity | (1,779,389) | (1,012,521) |
Total Liabilities and Stockholders' Equity | $ 3,061,066 | $ 3,036,670 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares issued | 113,059,000 | 414,059,000 |
Common stock, shares outstanding | 113,059,000 | 414,059,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Revenues | ||||
General and Administrative expenses | ||||
Amortization | 11,568 | 10,640 | 23,052 | 21,237 |
Audit fee | 7,510 | 16,214 | ||
Building management fee | 1,437 | 2,688 | ||
Consulting | 122,876 | 268,282 | ||
Depreciation | 1,420 | 1,296 | 2,818 | 2,586 |
Office expenses | 7,474 | 34 | 12,766 | 99 |
Professional fees | 895 | 4,614 | ||
Rental expenses | 27,445 | 50,523 | ||
Repair and maintenance | 2,569 | 5,144 | ||
Salaries and staff benefit | 64,726 | 875 | 111,992 | 1,747 |
Transfer agent and filing fees | 4,831 | 10,582 | ||
Travel | 211 | 40 | 846 | 45 |
Total Expenses | 252,962 | 12,885 | 509,521 | 25,714 |
Other income (expenses) | ||||
Bank charges | (724) | (13) | (1,289) | (33) |
Interest income | 404 | 688 | 1 | |
Loan interest expense | (4,891) | (4,498) | (9,746) | (8,978) |
Other finance expense | (102) | (289) | ||
Rental income | 8,247 | 16,526 | ||
Other income (expenses), net | 2,934 | (4,511) | 5,890 | (9,010) |
Net Profit (Loss) | (250,028) | (17,396) | (503,631) | (34,724) |
Foreign currency translation adjustment | 21,352 | 15,456 | (698) | 23,124 |
Comprehensive Profit (Loss) | $ (228,676) | $ (1,940) | $ (504,329) | $ (11,600) |
Profit (Loss) Per Share, Basic and Diluted | $ (0.0022) | $ (0.0435) | $ (0.0045) | $ (0.0868) |
Weighted Average Shares Outstanding | 113,059,000 | 400,000 | 113,059,000 | 400,000 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating Activities | ||
Net income (loss) | $ (503,631) | $ (34,724) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 25,870 | 23,823 |
Changes in operating assets and liabilities: | ||
Deposits and other receivables | (20,570) | |
Due from related parties | (195,604) | |
Other payables and accrued liabilities | (85,422) | 8,978 |
Due to related parties | 408,573 | 291 |
Net Cash Used In Operating Activities | (370,784) | (1,632) |
Cash flows from investing activities: | ||
Addition to property, plant and equipment | (628) | |
Increase in fixed deposits - pledged | (302,247) | |
Net cash used in investing activities | (302,875) | |
Cash flows from financing activities: | ||
Issuance of Notes Payable | 314,192 | |
Net cash generated from financing activities | 314,192 | |
Effect of exchange rates on cash and cash equivalents | (11,077) | 503 |
Increase (Decrease) in Cash, cash equivalents and restricted cash | (370,544) | (1,129) |
Cash, cash equivalents and restricted cash, Beginning of Period | 986,821 | 21,714 |
Cash, cash equivalents and restricted cash, End of Period | 616,277 | 20,585 |
Supplemental Disclosures: | ||
Interest paid | ||
Income taxes paid |
Organization and Description of
Organization and Description of Business | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Organization and Description of Business | NOTE 1- Organization and Description of Business Image International Group, Inc. (“IMGL”) was initially incorporated in the state of Nevada on July 25, 2005 under the name of Eardley Ventures. On April 21, 2008, the Company’s name, Eardley Ventures, was changed to Owlhead Minerals Corp in order to more appropriately reflect the Company’s business plan. On December 23, 2014, Owlhead Minerals Corp. filed an Amendment to it Articles of Incorporation with the Nevada Secretary of State, changing its name from Owlhead Minerals Corp. to Image International Group, Inc. and increasing its authorized capital from 100,000,000 common shares with a par value of $0.001 to 1,000,000,000 shares common shares with a par value of $0.001. Tang Dynasty Investment Group Limited (“Tang Dynasty”) was incorporated under the laws of Hong Kong on March 22, 2017 and its principal office is located at suites 502 and 503 on the 5th floor of Fourseas Building in Jordan, Hong Kong. It assumed a full ownership and control of Shenzhen Gu Yue Environmental Protection Technology Co. Ltd (“Gu Yue”) on November 29, 2017. Shenzhen Gu Yue Environmental Protection Technology Co. Ltd (“Gu Yue”) was incorporated on November 8, 2010 as a domestic company in the People’s Republic of China. It was converted to a Wholly Foreign-Owned Enterprise (“WFOE”) on November 29, 2017. Gu Yue is mainly an equity holding company. Yangshuo County Xing Yuan Lead-Zinc Mine Co., Ltd. (“Yangshuo”) was incorporated on January 22, 1996 under the laws of the People’s Republic of China. Yangshuo primarily engages in lead, zinc and copper mining ore and generates revenue through the sales of processed lead, zinc and copper to customers primarily in Guangxi province. Due to the Chinese government policy on environmental protection, its traditional business of mining of lead, zinc and copper has been idled in recent years. Yangshuo has been exploring business opportunities in the processing of lead-zinc tailings. During this transition period, Yangshuo made its building and land available for lease and entered into operating leases with individual and business lessees. The leases with individual lessees expire over the next 1 to 2 year(s) and the leases with commercial lessees expire over the next 3 years. On December 5, 2017, Gu Yue obtained a controlling interest of Yangshuo through a series of contractual agreements including Exclusive Business Cooperation Agreement, Exclusive Option Agreement, Power of Attorney and Equity Pledge Agreement. As a result, Gu Yue contractually controlled and managed an operating company, Yangshuo and conducted its business solely through Yangshuo, its variable interest entity. On January 15, 2018, Image International Group, Inc. (“IMGL”) entered into a share exchange agreement (“Share Exchange Agreement”) with (i) Tang Dynasty Investment Group Limited, a limited liability company formed under the laws of Hong Kong, Special Administrative Region, China (“Tang Dynasty”). Pursuant to the terms of the Share Exchange Agreement, IMGL issued 400,000,000 new shares of its common stock, par value at $0.001 per share for all of the outstanding common stock of Tang Dynasty. As a result, Tang Dynasty became our wholly owned subsidiary. However, on June 10, 2018, the Company and shareholders of Tang Dynasty agreed to amend the Share Exchange Agreement, in which the shareholders of Tang Dynasty have agreed to receive 99-million shares of the Company down from 400-million under the January 15, 2018 agreement. As a result, Common stock of IMGL as of June 30, 2018 has been re-stated as $113,059, being 113,059,000 shares issued and outstanding. Accordingly, we refer to IMGL, its consolidated subsidiaries and variable interest entity collectively as the “Company”, “we”, “us” and “our”. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | NOTE 2 - Basis of Presentation and Significant Accounting Policies Basis of Presentation The accompanying Unaudited condensed consolidated financial statements have been prepared in accordance with the generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information pursuant to the rules and regulations of the SEC. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the financial statements have been included. Interim results are not necessarily indicative of results to be expected for the full year. The information included in this Form 10-Q should be read in conjunction with information included in the Company’s annual report on Form 8-K/A for the year ended December 31, 2017, that was filed with the SEC on May 21, 2018. Principles of Consolidation These condensed consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States and are expressed in U.S. dollars. Use of Estimates and Assumptions The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimate and assumptions that impact the presented amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the presented amounts of revenues and expenses during the period. Actual results may differ from those estimates. Significant estimates reflected in the condensed consolidated financial statements include the collectability of receivables, the useful lives of long-lived assets and intangibles, assumptions used in assessing impairment of long-lived assets, valuation of accruals for expenses and tax due. Going Concern Consideration These condensed consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has not generated significant revenues since inception and is unlikely to generate earnings in the immediate future. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to obtain necessary equity financing to continue operations, and the attainment of profitable operations. As at June 30, 2018, the Company has a working capital deficiency of $3,674,870 and has an accumulated deficit of $470,803 since inception. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These condensed financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Foreign Currency Translation The reporting currency of the Company is the U.S. dollar. Tang Dynasty uses the local currency, Hong Kong Dollar, while Gu Yue and Yangshuo use the local currency, Renminbi (RMB), as their functional currencies as determined based on the criteria of ASC 830, “Foreign Currency Translation”. Assets and liabilities are translated at the unified exchange rate as quoted by the U.S. Federal Reserve at the end of the period. Income and expense accounts are translated at the average translation rates and the equity accounts are translated at historical rates. Translation adjustments resulting from this process are included in accumulated other comprehensive income in the statement of equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. Translation adjustments included in accumulated other comprehensive gain/(loss) for the three month ended June 30, 2018 and 2017, for the six month ended June 30, 2018 and 2017, amounted to $21,352, $15,456, (698) and $23,124 respectively. Below is a table with foreign exchange rates used for translation: (Average Rate) June 30, 2018 June 30, 2017 Chinese Renminbi (RMB) RMB 6.3655 RMB 6.8716 Hong Kong dollar (HKD) HKD 7.8381 HKD 7.774 United States dollar ($) $ 1.0000 $ 1.0000 (Closing Rate) June 30, 2018 December 31, 2017 Chinese Renminbi (RMB) RMB 6.6171 RMB 6.5063 Hong Kong dollar (HKD) HKD 7.8463 HKD 7.8128 United States dollar ($) $ 1.0000 $ 1.0000 Cash and Cash Equivalent We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. We maintain with various financial institutions in Hong Kong and PRC. As of June 30, 2018, cash balances held in Hong Kong and PRC banks are uninsured. We have not experienced any losses in bank accounts and believes we are not exposed to any risks on our cash in bank accounts. Financial Instruments The carrying amount reported in the balance sheet for cash, other receivables, accrued liabilities and other payables approximate fair value because of the immediate or short-term maturity of these financial instruments. Plant, Property, and Equipment Plant, property and equipment are stated at cost less accumulated depreciation and impairment losses. Gains and losses on dispositions of property and equipment are included in operating income (loss). Major additions, renewals and improvements are capitalized, while maintenance and repairs are recognized as expense as incurred. Depreciation is provided over the estimated useful life of each class of depreciable assets and is computed using the straight-line method over the useful lives of the assets are as follows: Classification Estimated useful life Buildings Over the lease term Intangibles Intangible assets are carried at cost less accumulated amortization. We account for its significant leases of land use rights for purposes of classification of operating or capital. At the inception of the lease agreements, we will classify the leases as capital leases under ASC 840-30 if (a) transfer of ownership to lessee at the end of the lease term, (b) bargain purchase option, (c) the lease term equals to or exceeds 75% of economic life of the leased property, and/or (d) present value of minimum lease payments exceeds 90% of fair value of the lease property. Otherwise, the leases will be classified as operating leases. Intangible assets with finite useful lives are amortized on a straight-line basis that align with it economic benefits of the intangible assets to be consumed. The original estimated useful life for the land use rights ranged from 38 to 70 years stipulated on the lease term. Intangible assets are reviewed at least annually to determine whether there are any circumstances arisen that may trigger the impairment of their carrying values. Management considers intangible assets to be impaired if their carrying value exceeds the future projected cash flows from the perspective operations. Management also evaluates the periods of amortization to identify if any subsequent events or conditions that warrant revised estimates of useful lives. Impairment of Long-lived Assets Long-lived assets, including buildings and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. We assess the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated discounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When we identify an impairment, we reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. As of the period ended June 30, 2018 and fiscal years ended December 31, 2017, management determined that there was no impairment. Fair Values of Financial Instruments ASC Topic 825, Financial Instruments (“Topic 825”) requires disclosure of fair value information of financial instruments, whether or not recognized in the balance sheets, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Topic 825 excludes certain financial instruments and all non-financial assets and liabilities from its disclosure requirements. Accordingly, the aggregate fair value amounts do not represent the underlying value of the Company. The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow: Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. We consider the carrying amount of cash, other receivables and other short-term payables, to approximate their fair values because of the short period of time between the origination of such instruments and their expected realization. Comprehensive Income (Loss) Other comprehensive income (loss) refers to revenues, expenses, gains and losses that under generally accepted accounting principles are included in comprehensive income (loss) but are excluded from net income (loss) as these amounts are recorded directly as an adjustment to stockholders’ equity. Our other comprehensive income (loss) is comprised of foreign currency translation adjustments. Concentration of Risk Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and other accounts receivable. As of June 30, 2018 and December 31, 2017 $616,277 and $986,821 were deposited with various major financial institutions located in Hong Kong and the PRC, respectively. While management believes that these financial institutions are of high credit quality, it also continually monitors their credit worthiness. Under the Deposit Scheme Protection Rules of Hong Kong Special Administrative Region, China, eligible bank deposits with banks in Hong Kong are insured up to $63,724 (HKD500,000). Eligible bank deposits include all types of ordinary deposits in any currency such as current accounts, savings accounts, secured deposits and time deposits with a maturity term no more than 5 years. Historically, deposits in Chinese banks are secure due to state policy to protect depositor interests. However, China promulgated a Bankruptcy Law in August 2006 that came into effect on June 1, 2007, which contains a separate article expressly stating that the State Council may promulgate implementation measures to provide for the bankruptcy of Chinese banks based on the Bankruptcy Law. Under the current Bankruptcy Law, a Chinese bank may file bankruptcy if it deems itself to be insolvent. In addition, since China’s concession to the World Trade Organization, foreign banks have been gradually permitted to operate in China and have intensified competition in many aspects, especially since the opening of the Renminbi business to foreign banks in late 2006. Therefore, the risk of bankruptcy at the institutions that the Company maintains deposits has increased. In the event of bankruptcy, the Company is unlikely to reclaim its deposits in full since it is unlikely to be classified as a secured creditor under PRC laws. Deposits and other receivables consist of rental receivable, other receivable and deposit paid. These are typically unsecured and rental receivable are derived from revenue earned from leasee, thereby exposed to credit risk. The risk is mitigated by the Company’s assessment of its leasees’ creditworthiness and its ongoing monitoring of outstanding balances. The Company maintains reserves for estimated credit losses, and such losses have generally been within expectations. Income Taxes We account for income taxes using an asset and liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance against deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. We apply ASC 740, Accounting for Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted by the U.S. government which included a wide range of tax reform affecting businesses including the corporate tax rates, international tax provisions, tax credits and deduction with majority of the tax provision effective after December 31, 2017. Certain activities conducted in foreign jurisdictions may result in the imposition of U.S. corporate income taxes on IMGL when its subsidiaries, controlled foreign corporations (“CFCs”), generate income that is subject to Subpart F or GILTI under the U.S. Internal Revenue Code beginning after December 31, 2017. The Company did not accrue any liability, interest or penalties related to uncertain tax positions in our provision for income taxes line of our consolidated statements of operations for the six months ended June 30, 2018 and year ended December 31, 2017. We do not expect that its assessment regarding unrecognized tax positions will materially change over the next 12 months. Recent Accounting Pronouncements Recently Adopted Accounting Standards Revenue Recognition Financial instrument Statement of Cash Flows: Statement of Cash Flows: Business Combination Business Combinations (Topic 805): Clarifying the Definition of a Business Stock-based Compensation On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Cuts and Jobs Act (“the Tax Act”). As of June 30, 2018, the Company has not completed our accounting for the effects of the Tax Act based on the currently available information and has made a reasonable estimates in the first quarter of 2018. The Company will monitor future guidance set forth by the Department of Treasury with regard to the tax provisions under the Act, and true up this estimate as appropriate within the one year measurement period. If revisions are needed as new information becomes available, the final determination of the deemed incremental income tax expense, deemed re-measurement of the deferred assets and liabilities or other applicable provisions of the Tax Act will be completed as additional information becomes available within the 12 months re-measurement period. In January 2018, the FASB staff released Staff Q&A Topic 740 No. 5 which provides a guidance on accounting for tax provision of Global Intangible Low-Taxed Income (“GILTI”) as provided under the Tax Cuts and Jobs Act (“the Act”). The GILTI refers to the tax on the excess of a United States shareholder’s total net foreign income over a deemed return on tangible assets. Based on the information available to us for the first quarter of 2018, the Company provisionally made a policy election and accounted for its potential GILTI tax as a period cost when incurred. In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”). The amendments in this update expand the scope of Topic 718 to include share-based payment transactions for acquiring goods or services from nonemployees. An entity should apply the requirements of Topic 718 to nonemployee awards except in certain circumstances. ASU 2018-07 clarifies that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be consumed in a grantor’s operations unless the transaction effectively provides financing to the grantor or are awarded under a contract accounted for under Topic 606 (as defined below). ASU 2018-07 is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. The amendments require that adjustments required upon application of the update be made through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. We have historically awarded share-based compensation to nonemployees; however, we do not currently have any outstanding share-based awards to nonemployees. Therefore, we do not believe the adoption of ASU 2018-07 will have an impact on our consolidated financial condition and results of operations unless share-based payments are issued to nonemployees in the future. Leases In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” This accounting standard seeks to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Current US GAAP does not require lessees to recognize assets and liabilities arising from operating leases on the balance sheet. This standard also provides guidance from the lessees’ perspective on how to determine if a lease is an operating lease or a financing lease and the differences in accounting for each. In January 2018, the FASB issued ASU No. 2018-01, which allows for an entity to elect an optional transition practical expedient for land easements that exist or expired before adoption of Topic 842. The adoption of this standard is required for interim and fiscal periods beginning after December 15, 2018 and it is required to be applied using the modified retrospective approach. Early adoption is permitted. The Company is currently evaluating the impact of the above standards on their consolidated financial statements. Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future consolidated financial statements. In July 2018, the FASB issued ASU 2018-10, “ Codification Improvements to Topic 842, Leases ”. These amendments affect narrow aspects of the guidance issued in the amendments in ASU 2016-02 including those regarding residual value guarantees, rate implicit in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase option, variable lease payments that depend on an index or a rate, investment tax credits, lease term and purchase option, transition guidance for amounts previously recognized in business combinations, certain transition adjustments, transition guidance for leases previously classified as capital leases under Topic 840, transition guidance for modifications to leases previously classified as direct financing or sales-type leases under Topic 840, transition guidance for sale and leaseback transactions, impairment of net investment in the lease, unguaranteed residual asset, effect of initial direct costs on rate implicit in the lease, and failed sale and leaseback transactions. For entities that early adopted Topic 842, the amendments are effective upon issuance of ASU 2018-10, and the transition requirements are the same as those in Topic 842. For entities that have not adopted Topic 842, the effective date and transition requirements will be the same as the effective date and transition requirements in Topic 842. The Company is currently evaluating the impact of the adoption of ASU 2018-10 on its consolidated financial statements. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which works to improve on certain aspects of ASU No. 2016-02 identified by stakeholders as problematic or difficult to implement, including the adoption method. Currently, entities are required to adopt this ASU using a modified retrospective transition method. Under that transition method, an entity initially applies this ASU at the beginning of the earliest period presented in its financial statements. ASU No. 2018-11 provides another adoption method, which allows entities to initially apply ASU No. 2016-02 at the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. We are currently evaluating the impact the standard may have on our consolidated financial statements and related disclosures. Reporting of Comprehensive Income: In February 2018, the FASB issued ASU 2018-02—Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The guidance is effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The adoption of this ASU is not expected to have an impact on our financial statements. Income Tax: In March 2018, the FASB issued ASU No. 2018-05, Income Taxes (Topic 740): Amendments to SEC paragraphs pursuant to SEC Staff Accounting Bulletin No. 118 (“ASU 2018-05”). The amendments in this update add various SEC paragraphs pursuant to the issuance of SEC Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”). SAB 118 directs taxpayers to consider the implications of the Tax Cuts and Jobs Act (“Tax Act”) as provisional when it does not have the necessary information available, prepared, or analyzed in reasonable detail to complete its accounting for the change in the tax law. SAB 118 provides a one-year measurement period from a registrant’s reporting period that includes the Tax Act’s enactment date to allow the registrant sufficient time to obtain, prepare and analyze information to complete the required accounting under ASC 740. As described in the 2017 Form 10-K, we reflected the impact of the changes in rates on our deferred tax assets and liabilities at December 31, 2017, as we are required to reflect the change in the period in which the law is enacted. We are still analyzing certain aspects of the Tax Act, which could potentially affect the measurement of our income tax balances and future income tax expense or benefit. The ultimate impact of the Tax Act may differ from the estimates provided herein, possibly materially, due to additional regulatory guidance, changes in interpretations and assumptions, and other actions as a result of the Tax Act. Codification Improvements: In July 2018, the FASB issued ASU No. 2018-09, Codification Improvements (“ASU 2018-09”). The amendments in this update include changes to clarify and make other incremental improvements to GAAP under the FASB’s perpetual project to address suggestions from stakeholders. The amendments in this update affect a wide variety of topics and apply to all reporting entities within the scope of the affected accounting guidance. The transition and effective date guidance is based on the facts and circumstances of each amendment. A number of the amendments do not require transition guidance and are effective as of the issuance of the update while many of the updates that have transition guidance are effective for annual periods beginning after December 15, 2018. For amendments relating to issued but not effective guidance, the effective date of these amendments follows that of the originally issued update. We are currently assessing the potential impact of the many amendments within ASU 2018-09 and are currently unable to quantify the impact, if any, the standard will have on our consolidated financial condition and results of operations. Investments: In March 2018, the FASB issued ASU No. 2018-04, Investments—Debt Securities (Topic 320 and Regulated Operations (Topic 980): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273, which supersedes previous SEC guidance in the Codification in SAB Topic 5.M, Other-Than-Temporary Impairment of Certain Investments in Equity Securities and special balance sheet requirements in Regulation S-X Rule 3A-05 for Public Utility Holding Companies. The changes are effective when issued. The adoption of these updates did not have a material impact on our consolidated financial statements. Financial Instruments: In February 2018, the FASB issued ASU 2018-03—Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The new guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years beginning after June 15, 2018. Public business entities with fiscal years beginning between December 15, 2017, and June 15, 2018, are not required to adopt these amendments until the interim period beginning after June 15, 2018, and public business entities with fiscal years beginning between June 15, 2018, and December 15, 2018, are not required to adopt these amendments before adopting the amendments in Update 2016-01. For all other entities, the effective date is the same as the effective date in Update 2016-01. All entities may early adopt these amendments for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, as long as they have adopted Update 2016-01. The adoption of this ASU is not expected to have an impact on our financial statements. Accounting Pronouncements Issued But Not Yet Adopted Leases Financial Instruments - Credit Losses: Financial Instruments - Credit Losses Leases: Except for the ASU above, in the period from February 2018 through May 2018, the FASB has issued ASU No. 2018-02 through ASU 2018-05, which are not expected to have a material impact on the consolidated financial statements upon adoption. |
Prepayment, Deposits and Other
Prepayment, Deposits and Other Receivables | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Prepayment, Deposits and Other Receivables | NOTE 3 – Prepayment, Deposits and Other Receivables Prepayment, deposits and other receivables consisted of the following: June 30, 2018 December 31, 2017 (Unaudited) (Audited) Rental receivable $ 22,316 $ 13,193 Deposit paid 26,134 26,246 Other receivables 10,443 - Less: allowance for doubtful accounts - - Total deposits and other receivables, net $ 58,893 $ 39,439 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | NOTE 4 – PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment consisted of the following: June 30, 2018 December 31, 2017 (Unaudited) (Audited) Buildings, at cost $ 211,573 $ 215,176 Office equipment, at cost 604 - Less: accumulated depreciation and impairment charges (19,059 ) (16,628 ) Total property, plant and equipment, net $ 193,118 $ 198,548 The depreciation expenses for three months ended June 30, 2018 and 2017, and six months ended June 30, 2018 and 2017 were $1,420, $1,296, $2,818 and $2,586 respectively. |
Intangibles, Net
Intangibles, Net | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangibles, Net | NOTE 5 – INTANGIBLES, NET Intangible assets consisted of the following: June 30, 2018 December 31, 2017 (Unaudited) (Audited) Land use rights $ 1,858,820 $ 1,890,475 Less: accumulated amortization (156,457 ) (136,568 ) Total intangibles, net $ 1,702,363 $ 1,753,907 The amortization expenses of land use rights for the three months ended June 30, 2018 and 2017, and six months ended June 30, 2018 and 2017 were $11,568, $10,640, $23,052 and $21,237 respectively. The estimated amortization expenses for each of the five succeeding years is as follows: Year ending December 31, Estimated amortization expense 2018 (remaining period) $ 22,543 2019 44,720 2020 44,720 2021 44,720 2022 44,720 Thereafter 1,500,940 Total $ 1,702,363 |
Short Term Loans and Loan Payab
Short Term Loans and Loan Payable | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Short Term Loans and Loan Payable | NOTE 6 – SHORT TERM LOANS AND LOAN PAYABLE Short-term loans represented amounts due to bank and government agency, normally due within one year. The principal of the loans is due at maturity but can be renewed at the bank’s option. Interest is due monthly. Short term loans due to bank and government consisted of the following as of the years indicated: June 30, 2018 December 31, 2017 (Unaudited) (Audited) Loan from Agricultural Bank of China with original principal amount at RMB 1,497,945 at a variable interest rate. Average interest rate is 4.9% for the quarter ended June 30, 2018 and the fiscal year ended December 31, 2017. The loan is matured in October 1989. Yangshuo is negotiating an extension with the lender. $ 226,375 $ 230,230 Loan from the Yangshuo County Bureau of Finance with original principal amount RMB 652,794 at a fixed interest rate. Interest rate is 7.92% per annum for the quarter ended June 30, 2018 and the fiscal year ended December 31, 2017. The loan is repayable on demand. 98,652 100,333 Loan from the Yangshuo County Bureau of finance with original loan amount RMB 1,000,000 at a zero interest rate. The loan is repayable on demand. 151,124 153,697 Total short-term loans $ 476,151 $ 484,260 Interest expense on short term loans for the three months ended June 30, 2018 and 2017, and six months ended June 30, 2018 and 2017 amounted to $4,891, $4,498, $9,746 and $8,978 respectively. No interest expense has been capitalized into property, plant and equipment as all borrowings were for working capital purposes. |
Other Payables and Accrued Liab
Other Payables and Accrued Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
Payables and Accruals [Abstract] | |
Other Payables and Accrued Liabilities | NOTE 7 – OTHER PAYABLES AND ACCRUED LIABILITIES Other payables and accrued liabilities as of June 30, 2018 and December 31, 2017 consisted of: June 30, 2018 December 31, 2017 (Unaudited) (Audited) Security deposits & other payable $ 90,480 $ 96,847 Accrued loan interest expenses 410,467 407,923 Payroll payable 9,265 3,927 Accrued expenses 61,812 50,881 Total $ 572,024 $ 559,578 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 8- RELATED PARTY TRANSACTIONS On July 15, 2017, Tang Dynasty entered into consulting agreements with two of its former shareholders, Cheuk Kau Herman Kwong and Kwok Leung Lee (“the consultants”). The agreements provide that the monthly compensation for January and February 2018, $2,552 (HKD20,000), for March to June 2018, $1,275 (HKD10,000), is payable to each of the consultants for the financial and project management services rendered to Tang Dynasty. Pursuant to these agreements, Tang Dynasty has incurred and paid $3,827 (HKD30,000) and $10,206 (HKD80,000) and to each of the consultants during the three months period and six months period ended June 30, 2018 respectively. IMGL has incurred $30,000 and $60,000 as management consulting fee to Hoi Ming Chan, Chief Executive Officer, in respect of his services rendered to IMGL for the three months period ended June 30, 2018 and the six month period ended period ended June 30, 2018 respectively. IMGL has incurred and paid $10,500 and $21,000 as financial consulting fee to AE Financial Management Ltd. in respect of the services rendered by Edward Low, Chief Financial Officer, for the three months period ended June 30, 2018 and the six month period ended June 30, 2018 respectively. Other receivables-related parties Other receivables - related parties are those non-trade receivables arising from transactions between the Company and certain related parties, such as loans and employee advances to such related parties. The loans are unsecured, non-interest bearing and due in the next 12 months. Other receivables - related parties consisted of the following Name of related parties Relationship Nature of transactions June 30, 2018 (Unaudited) December 31, 2017 (Audited) Image International Group Inc. Mr. Hoi Ming Chan is the Chief Executive Officer Loan for funding business development activities $ - $ 57,955 Hui Zhang Director of Yangshuo Loan for funding business development activities 188,168 - Total $ 188,168 $ 57,955 Other payables-related parties Other payables - related parties consisted of the following: Name of related parties Relationship Nature of transactions June 30, 2018 (Unaudited) December 31, 2017 (Audited) Hui Zhang Director of Yangshuo Funds to former shareholders $ - $ 392,235 Ni Qin Director of Shenzhen Guyue Environmental Technology Co. Ltd. Loan from director for operating cash flows 318,002 16,008 Hoi Ming Chan Chief Executive Officer of IMGL and Director of Tang Dynasty Advances from director to support the operation of Tang Dynasty and compensation for consulting service to IMGL 3,169,302 2,575,428 Zhi Yuan Chen Supervisor of Shenzhen Guyue Environmental Technology Co. Ltd. Loan from supervisor for Gu Yue’s operating cash flow 2,729 19,681 Shenzhen Dongyuan Dongli Battery Co., Ltd Zhi Yuan CHEN is the corporate representative of the Company Loan for Gu Yue’s operating cash flows - 799 Huizhou Shiji Wufeng Agricultural Industry Co., Ltd Owned by Shenzhen Dongyuan Dongli Battery Co., Ltd and Zhi Yuan CHEN Loan for Gu Yue’s operating cash flows - 1,202 Total 3,490,033 3,005,353 Total other payables - related parties - current 3,490,033 3,005,353 Total other payables - related parties - non-current $ - $ - |
Non-Operating Revenue
Non-Operating Revenue | 6 Months Ended |
Jun. 30, 2018 | |
Revenues [Abstract] | |
Non-Operating Revenue | NOTE 9 – NON-OPERATING REVENUE Non-operating revenue mainly consists of rental revenue. Yangshuo has recognized its rental revenue in an amount of $8,247 and $16,526 for the three months and six months ended June 30, 2018 respectively. The following is a schedule by years of minimum future rentals on non-cancelable operating leases as of June 30, 2018: Year ending December 31: 2018 $ 9,465 2019 10,148 2020 6,840 Total minimum future rentals receivable $ 26,453 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 10 – INCOME TAXES We are subject to income taxes in both the United States and multiple foreign jurisdictions. Significant judgments and estimates are required in determining the consolidated income tax expense. U.S. Prior to January 31, 2018, IMGL, incorporated in Nevada, is subject to federal income tax rate at 34%. On December 22, 2017, the U.S government enacted the Tax Cuts and Jobs Act which covers a wide range of changes to the U.S. tax code, including, but not limited to (1) reducing the U.S. federal corporate income tax rate from 35 percent to 21 percent; (2) requiring companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries; (3) generally eliminating U.S. federal corporate income taxes on dividends from foreign subsidiaries (4) providing modification to subpart F provisions and new taxes on certain foreign earnings such as Global Intangible Low-Taxed Income (GILTI). Except for the one-time transition tax, most of these provisions go into effect starting January 1, 2018. The share exchange between IMGL and Tang Dynasty was closed on January 18, 2018 and thus the business combination was effective on the same day. Accordingly, the Company was not subject to the one-time transition tax which was in effect in the calendar year 2017. Beginning the first quarter 2018, we are subject to GILTI and applying the guidance in SAB 118 when accounting for the enactment date effects of the Act. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. As of June 30, 2018, we have not completed our accounting for all the tax effects of the Tax Act. Since our foreign subsidiaries incurred losses for the three months ended June 30, 2018, we anticipated that the tax effects of the Tax Act is nominal. We will continue to evaluate the tax effects of the Tax Act and refine our estimate when additional information is available. Our estimate could be changed as we obtain a more thorough understanding of the Tax Act. Changes to the provisional estimate of the tax effect of the Tax Act will be recorded as a discrete item during the interim period. Hong Kong Tang Dynasty Investment Group Limited, incorporated in Hong Kong, SAR, is subject to Hong Kong Profits tax at 16.5%. PRC Our subsidiary, Gu Yue and VIE, Yangshuo are incorporated in the People’s Republic of China and governed by the income tax laws of the PRC. The income tax provision in respect to operations in the PRC is calculated at the applicable tax rates on the taxable income for the periods based on existing legislation, interpretations and practices in respect thereof. Under the Enterprise Income Tax Laws of the PRC (the “EIT Laws”), Chinese enterprises are subject to income tax at a rate of 25% after appropriate tax adjustments. Under the EIT Laws, dividends paid by PRC enterprises out of profits earned post-2007 to non-PRC tax resident investors are subject to PRC withholding tax of 10%. A lower withholding tax rate may be applied based on applicable tax treaty with certain countries. Effective tax rates for the six months ended June 30, 2018 and 2017 were nil. The Company and its subsidiaries have incurred operating losses historically. The Company believes that it is more likely than not that its accumulated operating losses from IMGL, Tang Dynasty, Gu Yue and Yangshuo will not be utilized before they are expired. Therefore, the Company has provided full valuation allowance for the deferred tax assets and accumulated net operating losses. Accordingly, the Company has no net deferred tax assets. The Company did not recognize any interest and penalties related to uncertain tax positions in its provision for income taxes for the six months ended June 30, 2018 and year ended December 31, 2017. The Company does not expect that its assessment regarding unrecognized tax positions will materially change over the next 12 months. |
Statutory Reserve
Statutory Reserve | 6 Months Ended |
Jun. 30, 2018 | |
Statutory Reserve | |
Statutory Reserve | NOTE 11 - STATUTORY RESERVE Pursuant to the laws applicable to the PRC, PRC entities must make appropriations from after-tax profit to the non-distributable “statutory surplus reserve fund”. Subject to certain cumulative limits, the “statutory surplus reserve fund” requires annual appropriations of 10% of after-tax profit until the aggregated appropriations reach 50% of the registered capital (as determined under accounting principles generally accepted in the PRC (“PRC GAAP”) at each year-end). Gu Yue and Yangshuo did not make appropriations to statutory reserve for the six months ended June 30, 2018 as both entities have incurred accounting losses and tax losses during that period. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 12 - COMMITMENTS AND CONTINGENCIES As of the reporting date, the Company has not incurred any unrecognized or recognized commitments or loss contingencies that are subject to disclosure requirements. |
Contingent Liability
Contingent Liability | 6 Months Ended |
Jun. 30, 2018 | |
Contingent Liability | |
Contingent Liability | NOTE 13 – CONTINGENT LIABILITY In an administrative litigation in 2017, the plaintiff Yunsheng YANG, an independent third party to Yangshuo, filed a claim against the Yangshuo County People’s Government (the “Government”) naming Yangshuo as the third party in revoking the State-owned Land Use Certificate (Shuo Guo Yong (2015) No.500), which states that Yangshuo has the right to use the land involved of area of approximately 734.4 ㎡ The plaintiff was unsatisfied with the judgment and appealed to the Guangxi Zhuang Autonomous Region Higher People’s Court. The second trial is pending at the date of this report. According to the PRC legal opinion of the counsel of Yangshuo , the possible impact is that if the judge held in favor of the plaintiff’s claims, Yangshuo might lose the right to use the Land which carrying amount as of June 30, 2018 was US$258,436. However, the director of Yangshuo opined that the probability of losing the case is less than probable based on the judgement of the court of first instance. As such, no impairment loss is provided on the involved land as of the report date. |
Basis of Presentation and Sig19
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Unaudited condensed consolidated financial statements have been prepared in accordance with the generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information pursuant to the rules and regulations of the SEC. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the financial statements have been included. Interim results are not necessarily indicative of results to be expected for the full year. The information included in this Form 10-Q should be read in conjunction with information included in the Company’s annual report on Form 8-K/A for the year ended December 31, 2017, that was filed with the SEC on May 21, 2018. |
Principles of Consolidation | Principles of Consolidation These condensed consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States and are expressed in U.S. dollars. |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimate and assumptions that impact the presented amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the presented amounts of revenues and expenses during the period. Actual results may differ from those estimates. Significant estimates reflected in the condensed consolidated financial statements include the collectability of receivables, the useful lives of long-lived assets and intangibles, assumptions used in assessing impairment of long-lived assets, valuation of accruals for expenses and tax due. |
Going Concern Consideration | Going Concern Consideration These condensed consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has not generated significant revenues since inception and is unlikely to generate earnings in the immediate future. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to obtain necessary equity financing to continue operations, and the attainment of profitable operations. As at June 30, 2018, the Company has a working capital deficiency of $3,674,870 and has an accumulated deficit of $470,803 since inception. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These condensed financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. |
Foreign Currency Translation | Foreign Currency Translation The reporting currency of the Company is the U.S. dollar. Tang Dynasty uses the local currency, Hong Kong Dollar, while Gu Yue and Yangshuo use the local currency, Renminbi (RMB), as their functional currencies as determined based on the criteria of ASC 830, “Foreign Currency Translation”. Assets and liabilities are translated at the unified exchange rate as quoted by the U.S. Federal Reserve at the end of the period. Income and expense accounts are translated at the average translation rates and the equity accounts are translated at historical rates. Translation adjustments resulting from this process are included in accumulated other comprehensive income in the statement of equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. Translation adjustments included in accumulated other comprehensive gain/(loss) for the three month ended June 30, 2018 and 2017, for the six month ended June 30, 2018 and 2017, amounted to $21,352, $15,456, (698) and $23,124 respectively. Below is a table with foreign exchange rates used for translation: (Average Rate) June 30, 2018 June 30, 2017 Chinese Renminbi (RMB) RMB 6.3655 RMB 6.8716 Hong Kong dollar (HKD) HKD 7.8381 HKD 7.774 United States dollar ($) $ 1.0000 $ 1.0000 (Closing Rate) June 30, 2018 December 31, 2017 Chinese Renminbi (RMB) RMB 6.6171 RMB 6.5063 Hong Kong dollar (HKD) HKD 7.8463 HKD 7.8128 United States dollar ($) $ 1.0000 $ 1.0000 |
Cash and Cash Equivalent | Cash and Cash Equivalent We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. We maintain with various financial institutions in Hong Kong and PRC. As of June 30, 2018, cash balances held in Hong Kong and PRC banks are uninsured. We have not experienced any losses in bank accounts and believes we are not exposed to any risks on our cash in bank accounts. |
Financial Instruments | Financial Instruments The carrying amount reported in the balance sheet for cash, other receivables, accrued liabilities and other payables approximate fair value because of the immediate or short-term maturity of these financial instruments. |
Plant, Property, and Equipment | Plant, Property, and Equipment Plant, property and equipment are stated at cost less accumulated depreciation and impairment losses. Gains and losses on dispositions of property and equipment are included in operating income (loss). Major additions, renewals and improvements are capitalized, while maintenance and repairs are recognized as expense as incurred. Depreciation is provided over the estimated useful life of each class of depreciable assets and is computed using the straight-line method over the useful lives of the assets are as follows: Classification Estimated useful life Buildings Over the lease term |
Intangibles | Intangibles Intangible assets are carried at cost less accumulated amortization. We account for its significant leases of land use rights for purposes of classification of operating or capital. At the inception of the lease agreements, we will classify the leases as capital leases under ASC 840-30 if (a) transfer of ownership to lessee at the end of the lease term, (b) bargain purchase option, (c) the lease term equals to or exceeds 75% of economic life of the leased property, and/or (d) present value of minimum lease payments exceeds 90% of fair value of the lease property. Otherwise, the leases will be classified as operating leases. Intangible assets with finite useful lives are amortized on a straight-line basis that align with it economic benefits of the intangible assets to be consumed. The original estimated useful life for the land use rights ranged from 38 to 70 years stipulated on the lease term. Intangible assets are reviewed at least annually to determine whether there are any circumstances arisen that may trigger the impairment of their carrying values. Management considers intangible assets to be impaired if their carrying value exceeds the future projected cash flows from the perspective operations. Management also evaluates the periods of amortization to identify if any subsequent events or conditions that warrant revised estimates of useful lives. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets Long-lived assets, including buildings and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. We assess the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated discounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When we identify an impairment, we reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. As of the period ended June 30, 2018 and fiscal years ended December 31, 2017, management determined that there was no impairment. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments ASC Topic 825, Financial Instruments (“Topic 825”) requires disclosure of fair value information of financial instruments, whether or not recognized in the balance sheets, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Topic 825 excludes certain financial instruments and all non-financial assets and liabilities from its disclosure requirements. Accordingly, the aggregate fair value amounts do not represent the underlying value of the Company. The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow: Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. We consider the carrying amount of cash, other receivables and other short-term payables, to approximate their fair values because of the short period of time between the origination of such instruments and their expected realization. |
Comprehensive Income (loss) | Comprehensive Income (Loss) Other comprehensive income (loss) refers to revenues, expenses, gains and losses that under generally accepted accounting principles are included in comprehensive income (loss) but are excluded from net income (loss) as these amounts are recorded directly as an adjustment to stockholders’ equity. Our other comprehensive income (loss) is comprised of foreign currency translation adjustments. |
Concentration of Risk | Concentration of Risk Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and other accounts receivable. As of June 30, 2018 and December 31, 2017 $616,277 and $986,821 were deposited with various major financial institutions located in Hong Kong and the PRC, respectively. While management believes that these financial institutions are of high credit quality, it also continually monitors their credit worthiness. Under the Deposit Scheme Protection Rules of Hong Kong Special Administrative Region, China, eligible bank deposits with banks in Hong Kong are insured up to $63,724 (HKD500,000). Eligible bank deposits include all types of ordinary deposits in any currency such as current accounts, savings accounts, secured deposits and time deposits with a maturity term no more than 5 years. Historically, deposits in Chinese banks are secure due to state policy to protect depositor interests. However, China promulgated a Bankruptcy Law in August 2006 that came into effect on June 1, 2007, which contains a separate article expressly stating that the State Council may promulgate implementation measures to provide for the bankruptcy of Chinese banks based on the Bankruptcy Law. Under the current Bankruptcy Law, a Chinese bank may file bankruptcy if it deems itself to be insolvent. In addition, since China’s concession to the World Trade Organization, foreign banks have been gradually permitted to operate in China and have intensified competition in many aspects, especially since the opening of the Renminbi business to foreign banks in late 2006. Therefore, the risk of bankruptcy at the institutions that the Company maintains deposits has increased. In the event of bankruptcy, the Company is unlikely to reclaim its deposits in full since it is unlikely to be classified as a secured creditor under PRC laws. Deposits and other receivables consist of rental receivable, other receivable and deposit paid. These are typically unsecured and rental receivable are derived from revenue earned from leasee, thereby exposed to credit risk. The risk is mitigated by the Company’s assessment of its leasees’ creditworthiness and its ongoing monitoring of outstanding balances. The Company maintains reserves for estimated credit losses, and such losses have generally been within expectations. |
Income Taxes | Income Taxes We account for income taxes using an asset and liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance against deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. We apply ASC 740, Accounting for Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted by the U.S. government which included a wide range of tax reform affecting businesses including the corporate tax rates, international tax provisions, tax credits and deduction with majority of the tax provision effective after December 31, 2017. Certain activities conducted in foreign jurisdictions may result in the imposition of U.S. corporate income taxes on IMGL when its subsidiaries, controlled foreign corporations (“CFCs”), generate income that is subject to Subpart F or GILTI under the U.S. Internal Revenue Code beginning after December 31, 2017. The Company did not accrue any liability, interest or penalties related to uncertain tax positions in our provision for income taxes line of our consolidated statements of operations for the six months ended June 30, 2018 and year ended December 31, 2017. We do not expect that its assessment regarding unrecognized tax positions will materially change over the next 12 months. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Standards Revenue Recognition Financial instrument Statement of Cash Flows: Statement of Cash Flows: Business Combination Business Combinations (Topic 805): Clarifying the Definition of a Business Stock-based Compensation On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Cuts and Jobs Act (“the Tax Act”). As of June 30, 2018, the Company has not completed our accounting for the effects of the Tax Act based on the currently available information and has made a reasonable estimates in the first quarter of 2018. The Company will monitor future guidance set forth by the Department of Treasury with regard to the tax provisions under the Act, and true up this estimate as appropriate within the one year measurement period. If revisions are needed as new information becomes available, the final determination of the deemed incremental income tax expense, deemed re-measurement of the deferred assets and liabilities or other applicable provisions of the Tax Act will be completed as additional information becomes available within the 12 months re-measurement period. In January 2018, the FASB staff released Staff Q&A Topic 740 No. 5 which provides a guidance on accounting for tax provision of Global Intangible Low-Taxed Income (“GILTI”) as provided under the Tax Cuts and Jobs Act (“the Act”). The GILTI refers to the tax on the excess of a United States shareholder’s total net foreign income over a deemed return on tangible assets. Based on the information available to us for the first quarter of 2018, the Company provisionally made a policy election and accounted for its potential GILTI tax as a period cost when incurred. In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”). The amendments in this update expand the scope of Topic 718 to include share-based payment transactions for acquiring goods or services from nonemployees. An entity should apply the requirements of Topic 718 to nonemployee awards except in certain circumstances. ASU 2018-07 clarifies that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be consumed in a grantor’s operations unless the transaction effectively provides financing to the grantor or are awarded under a contract accounted for under Topic 606 (as defined below). ASU 2018-07 is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. The amendments require that adjustments required upon application of the update be made through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. We have historically awarded share-based compensation to nonemployees; however, we do not currently have any outstanding share-based awards to nonemployees. Therefore, we do not believe the adoption of ASU 2018-07 will have an impact on our consolidated financial condition and results of operations unless share-based payments are issued to nonemployees in the future. Leases In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” This accounting standard seeks to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Current US GAAP does not require lessees to recognize assets and liabilities arising from operating leases on the balance sheet. This standard also provides guidance from the lessees’ perspective on how to determine if a lease is an operating lease or a financing lease and the differences in accounting for each. In January 2018, the FASB issued ASU No. 2018-01, which allows for an entity to elect an optional transition practical expedient for land easements that exist or expired before adoption of Topic 842. The adoption of this standard is required for interim and fiscal periods beginning after December 15, 2018 and it is required to be applied using the modified retrospective approach. Early adoption is permitted. The Company is currently evaluating the impact of the above standards on their consolidated financial statements. Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future consolidated financial statements. In July 2018, the FASB issued ASU 2018-10, “ Codification Improvements to Topic 842, Leases ”. These amendments affect narrow aspects of the guidance issued in the amendments in ASU 2016-02 including those regarding residual value guarantees, rate implicit in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase option, variable lease payments that depend on an index or a rate, investment tax credits, lease term and purchase option, transition guidance for amounts previously recognized in business combinations, certain transition adjustments, transition guidance for leases previously classified as capital leases under Topic 840, transition guidance for modifications to leases previously classified as direct financing or sales-type leases under Topic 840, transition guidance for sale and leaseback transactions, impairment of net investment in the lease, unguaranteed residual asset, effect of initial direct costs on rate implicit in the lease, and failed sale and leaseback transactions. For entities that early adopted Topic 842, the amendments are effective upon issuance of ASU 2018-10, and the transition requirements are the same as those in Topic 842. For entities that have not adopted Topic 842, the effective date and transition requirements will be the same as the effective date and transition requirements in Topic 842. The Company is currently evaluating the impact of the adoption of ASU 2018-10 on its consolidated financial statements. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which works to improve on certain aspects of ASU No. 2016-02 identified by stakeholders as problematic or difficult to implement, including the adoption method. Currently, entities are required to adopt this ASU using a modified retrospective transition method. Under that transition method, an entity initially applies this ASU at the beginning of the earliest period presented in its financial statements. ASU No. 2018-11 provides another adoption method, which allows entities to initially apply ASU No. 2016-02 at the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. We are currently evaluating the impact the standard may have on our consolidated financial statements and related disclosures. Reporting of Comprehensive Income: In February 2018, the FASB issued ASU 2018-02—Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The guidance is effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The adoption of this ASU is not expected to have an impact on our financial statements. Income Tax: In March 2018, the FASB issued ASU No. 2018-05, Income Taxes (Topic 740): Amendments to SEC paragraphs pursuant to SEC Staff Accounting Bulletin No. 118 (“ASU 2018-05”). The amendments in this update add various SEC paragraphs pursuant to the issuance of SEC Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”). SAB 118 directs taxpayers to consider the implications of the Tax Cuts and Jobs Act (“Tax Act”) as provisional when it does not have the necessary information available, prepared, or analyzed in reasonable detail to complete its accounting for the change in the tax law. SAB 118 provides a one-year measurement period from a registrant’s reporting period that includes the Tax Act’s enactment date to allow the registrant sufficient time to obtain, prepare and analyze information to complete the required accounting under ASC 740. As described in the 2017 Form 10-K, we reflected the impact of the changes in rates on our deferred tax assets and liabilities at December 31, 2017, as we are required to reflect the change in the period in which the law is enacted. We are still analyzing certain aspects of the Tax Act, which could potentially affect the measurement of our income tax balances and future income tax expense or benefit. The ultimate impact of the Tax Act may differ from the estimates provided herein, possibly materially, due to additional regulatory guidance, changes in interpretations and assumptions, and other actions as a result of the Tax Act. Codification Improvements: In July 2018, the FASB issued ASU No. 2018-09, Codification Improvements (“ASU 2018-09”). The amendments in this update include changes to clarify and make other incremental improvements to GAAP under the FASB’s perpetual project to address suggestions from stakeholders. The amendments in this update affect a wide variety of topics and apply to all reporting entities within the scope of the affected accounting guidance. The transition and effective date guidance is based on the facts and circumstances of each amendment. A number of the amendments do not require transition guidance and are effective as of the issuance of the update while many of the updates that have transition guidance are effective for annual periods beginning after December 15, 2018. For amendments relating to issued but not effective guidance, the effective date of these amendments follows that of the originally issued update. We are currently assessing the potential impact of the many amendments within ASU 2018-09 and are currently unable to quantify the impact, if any, the standard will have on our consolidated financial condition and results of operations. Investments: In March 2018, the FASB issued ASU No. 2018-04, Investments—Debt Securities (Topic 320 and Regulated Operations (Topic 980): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273, which supersedes previous SEC guidance in the Codification in SAB Topic 5.M, Other-Than-Temporary Impairment of Certain Investments in Equity Securities and special balance sheet requirements in Regulation S-X Rule 3A-05 for Public Utility Holding Companies. The changes are effective when issued. The adoption of these updates did not have a material impact on our consolidated financial statements. Financial Instruments: In February 2018, the FASB issued ASU 2018-03—Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The new guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years beginning after June 15, 2018. Public business entities with fiscal years beginning between December 15, 2017, and June 15, 2018, are not required to adopt these amendments until the interim period beginning after June 15, 2018, and public business entities with fiscal years beginning between June 15, 2018, and December 15, 2018, are not required to adopt these amendments before adopting the amendments in Update 2016-01. For all other entities, the effective date is the same as the effective date in Update 2016-01. All entities may early adopt these amendments for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, as long as they have adopted Update 2016-01. The adoption of this ASU is not expected to have an impact on our financial statements. |
Accounting Pronouncements Issued but Not Yet Adopted | Accounting Pronouncements Issued But Not Yet Adopted Leases Financial Instruments - Credit Losses: Financial Instruments - Credit Losses Leases: Except for the ASU above, in the period from February 2018 through May 2018, the FASB has issued ASU No. 2018-02 through ASU 2018-05, which are not expected to have a material impact on the consolidated financial statements upon adoption. |
Basis of Presentation and Sig20
Basis of Presentation and Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Foreign Exchange Rates Used for Translation | Below is a table with foreign exchange rates used for translation: (Average Rate) June 30, 2018 June 30, 2017 Chinese Renminbi (RMB) RMB 6.3655 RMB 6.8716 Hong Kong dollar (HKD) HKD 7.8381 HKD 7.774 United States dollar ($) $ 1.0000 $ 1.0000 (Closing Rate) June 30, 2018 December 31, 2017 Chinese Renminbi (RMB) RMB 6.6171 RMB 6.5063 Hong Kong dollar (HKD) HKD 7.8463 HKD 7.8128 United States dollar ($) $ 1.0000 $ 1.0000 |
Schedule of Estimated Useful Lives of Property Plant and Equipment | Depreciation is provided over the estimated useful life of each class of depreciable assets and is computed using the straight-line method over the useful lives of the assets are as follows: Classification Estimated useful life Buildings Over the lease term |
Prepayment, Deposits and Othe21
Prepayment, Deposits and Other Receivables (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Schedule of Prepayment, Deposits and Other Receivables | Prepayment, deposits and other receivables consisted of the following: June 30, 2018 December 31, 2017 (Unaudited) (Audited) Rental receivable $ 22,316 $ 13,193 Deposit paid 26,134 26,246 Other receivables 10,443 - Less: allowance for doubtful accounts - - Total deposits and other receivables, net $ 58,893 $ 39,439 |
Property, Plant and Equipment22
Property, Plant and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment, Net | Property, plant and equipment consisted of the following: June 30, 2018 December 31, 2017 (Unaudited) (Audited) Buildings, at cost $ 211,573 $ 215,176 Office equipment, at cost 604 - Less: accumulated depreciation and impairment charges (19,059 ) (16,628 ) Total property, plant and equipment, net $ 193,118 $ 198,548 |
Intangibles, Net (Tables)
Intangibles, Net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consisted of the following: June 30, 2018 December 31, 2017 (Unaudited) (Audited) Land use rights $ 1,858,820 $ 1,890,475 Less: accumulated amortization (156,457 ) (136,568 ) Total intangibles, net $ 1,702,363 $ 1,753,907 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated amortization expenses for each of the five succeeding years is as follows: Year ending December 31, Estimated amortization expense 2018 (remaining period) $ 22,543 2019 44,720 2020 44,720 2021 44,720 2022 44,720 Thereafter 1,500,940 Total $ 1,702,363 |
Short Term Loans and Loan Pay24
Short Term Loans and Loan Payable (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Short term Loans | Short term loans due to bank and government consisted of the following as of the years indicated: June 30, 2018 December 31, 2017 (Unaudited) (Audited) Loan from Agricultural Bank of China with original principal amount at RMB 1,497,945 at a variable interest rate. Average interest rate is 4.9% for the quarter ended June 30, 2018 and the fiscal year ended December 31, 2017. The loan is matured in October 1989. Yangshuo is negotiating an extension with the lender. $ 226,375 $ 230,230 Loan from the Yangshuo County Bureau of Finance with original principal amount RMB 652,794 at a fixed interest rate. Interest rate is 7.92% per annum for the quarter ended June 30, 2018 and the fiscal year ended December 31, 2017. The loan is repayable on demand. 98,652 100,333 Loan from the Yangshuo County Bureau of finance with original loan amount RMB 1,000,000 at a zero interest rate. The loan is repayable on demand. 151,124 153,697 Total short-term loans $ 476,151 $ 484,260 |
Other Payables and Accrued Li25
Other Payables and Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Other Payables and Accrued Liabilities | Other payables and accrued liabilities as of June 30, 2018 and December 31, 2017 consisted of: June 30, 2018 December 31, 2017 (Unaudited) (Audited) Security deposits & other payable $ 90,480 $ 96,847 Accrued loan interest expenses 410,467 407,923 Payroll payable 9,265 3,927 Accrued expenses 61,812 50,881 Total $ 572,024 $ 559,578 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transaction | Other receivables - related parties consisted of the following Name of related parties Relationship Nature of transactions June 30, 2018 (Unaudited) December 31, 2017 (Audited) Image International Group Inc. Mr. Hoi Ming Chan is the Chief Executive Officer Loan for funding business development activities $ - $ 57,955 Hui Zhang Director of Yangshuo Loan for funding business development activities 188,168 - Total $ 188,168 $ 57,955 Other payables-related parties Other payables - related parties consisted of the following: Name of related parties Relationship Nature of transactions June 30, 2018 (Unaudited) December 31, 2017 (Audited) Hui Zhang Director of Yangshuo Funds to former shareholders $ - $ 392,235 Ni Qin Director of Shenzhen Guyue Environmental Technology Co. Ltd. Loan from director for operating cash flows 318,002 16,008 Hoi Ming Chan Chief Executive Officer of IMGL and Director of Tang Dynasty Advances from director to support the operation of Tang Dynasty and compensation for consulting service to IMGL 3,169,302 2,575,428 Zhi Yuan Chen Supervisor of Shenzhen Guyue Environmental Technology Co. Ltd. Loan from supervisor for Gu Yue’s operating cash flow 2,729 19,681 Shenzhen Dongyuan Dongli Battery Co., Ltd Zhi Yuan CHEN is the corporate representative of the Company Loan for Gu Yue’s operating cash flows - 799 Huizhou Shiji Wufeng Agricultural Industry Co., Ltd Owned by Shenzhen Dongyuan Dongli Battery Co., Ltd and Zhi Yuan CHEN Loan for Gu Yue’s operating cash flows - 1,202 Total 3,490,033 3,005,353 Total other payables - related parties - current 3,490,033 3,005,353 Total other payables - related parties - non-current $ - $ - |
Non-Operating Revenue (Tables)
Non-Operating Revenue (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenues [Abstract] | |
Schedule of Minimum Future Rentals on Non-Cancelable Operating Leases | The following is a schedule by years of minimum future rentals on non-cancelable operating leases as of June 30, 2018: Year ending December 31: 2018 $ 9,465 2019 10,148 2020 6,840 Total minimum future rentals receivable $ 26,453 |
Organization and Description 28
Organization and Description of Business (Details Narrative) - USD ($) | Jun. 10, 2018 | Jan. 15, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 23, 2014 |
Common stock authorized | 1,000,000,000 | 1,000,000,000 | |||
Common stock, par value | $ 0.001 | $ 0.001 | |||
Lease expiration description | The leases with individual lessees expire over the next 1 to 2 year(s) and the leases with commercial lessees expire over the next 3 years. | ||||
Re-stated value of common stock | $ 113,059 | ||||
Common stock, shares issued | 113,059,000 | 414,059,000 | |||
Common stock, shares outstanding | 113,059,000 | 414,059,000 | |||
Share Exchange Agreement [Member] | |||||
Common stock, par value | $ 0.001 | ||||
Number of shares issued during period | 400,000,000 | ||||
Share Exchange Agreement [Member] | Tang Dynasty [Member] | |||||
Number of shares issued during period | 99,000,000 | ||||
Minimum [Member] | |||||
Common stock authorized | 100,000,000 | ||||
Common stock, par value | $ 0.001 |
Basis of Presentation and Sig29
Basis of Presentation and Significant Accounting Policies (Detail Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Working capital deficiency | $ 3,674,870 | $ 3,674,870 | |||
Accumulated deficit | 470,803 | 470,803 | $ 352,254 | ||
Foreign currency translation adjustment | 21,352 | $ 15,456 | $ (698) | $ 23,124 | |
Lease payment description | (a) transfer of ownership to lessee at the end of the lease term, (b) bargain purchase option, (c) the lease term equals to or exceeds 75% of economic life of the leased property, and/or (d) present value of minimum lease payments exceeds 90% of fair value of the lease property. Otherwise, the leases will be classified as operating leases. | ||||
Impairment of long-lived assets | |||||
Cash | 616,277 | $ 616,277 | $ 986,821 | ||
Deposits term | 5 years | ||||
Income tax examination, likelihood percentage | A tax position is measured at the largest amount of benefit that is greater than 50 percent likelihood of being realized upon ultimate settlement. | ||||
Hong Kong [Member] | |||||
Bank deopsits | 63,724 | $ 63,724 | |||
Hong Kong [Member] | HKD [Member] | |||||
Bank deopsits | $ 500,000 | $ 500,000 | |||
Land [Member] | Minimum [Member] | |||||
Estimated useful lives of intangible assets | 38 years | ||||
Land [Member] | Maximum [Member] | |||||
Estimated useful lives of intangible assets | 70 years |
Basis of Presentation and Sig30
Basis of Presentation and Significant Accounting Policies - Schedule of Foreign Exchange Rates Used for Translation (Details) | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Average Rate [Member] | |||
Foreign currency translation exchange rates | 1 | 1 | |
Closing Rate [Member] | |||
Foreign currency translation exchange rates | 1 | 1 | |
RMB [Member] | Average Rate [Member] | |||
Foreign currency translation exchange rates | 6.3655 | 6.8716 | |
RMB [Member] | Closing Rate [Member] | |||
Foreign currency translation exchange rates | 6.6171 | 6.5063 | |
HKD [Member] | Average Rate [Member] | |||
Foreign currency translation exchange rates | 7.8381 | 7.774 | |
HKD [Member] | Closing Rate [Member] | |||
Foreign currency translation exchange rates | 7.8463 | 7.8128 |
Basis of Presentation and Sig31
Basis of Presentation and Significant Accounting Policies - Schedule of Estimated Useful Lives of Property Plant and Equipment (Details) | 6 Months Ended |
Jun. 30, 2018 | |
Building [Member] | |
Estimated useful life | Over the lease term |
Prepayment, Deposits and Othe32
Prepayment, Deposits and Other Receivables - Schedule of Prepayment, Deposits and Other Receivables (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Rental receivable | $ 22,316 | $ 13,193 |
Deposit paid | 26,134 | 26,246 |
Other receivables | 10,443 | |
Less: allowance for doubtful accounts | ||
Total deposits and other receivables, net | $ 58,893 | $ 39,439 |
Property, Plant and Equipment33
Property, Plant and Equipment, Net (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expenses | $ 1,420 | $ 1,296 | $ 2,818 | $ 2,586 |
Property, Plant and Equipment34
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment, Net (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Less: accumulated depreciation and impairment charges | $ (19,059) | $ (16,628) |
Total property, plant and equipment, net | 193,118 | 198,548 |
Building [Member] | ||
Property, plant and equipment, gross | 211,573 | 215,176 |
Office Equipment [Member] | ||
Property, plant and equipment, gross | $ 604 |
Intangibles, Net (Details Narra
Intangibles, Net (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expenses | $ 11,568 | $ 10,640 | $ 23,052 | $ 21,237 |
Intangibles, Net - Schedule of
Intangibles, Net - Schedule of Intangible Assets (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Land use rights | $ 1,858,820 | $ 1,890,475 |
Less: accumulated amortization | (156,457) | (136,568) |
Total intangibles, net | $ 1,702,363 | $ 1,753,907 |
Intangibles, Net - Schedule o37
Intangibles, Net - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2018 (remaining period) | $ 22,543 | |
2,019 | 44,720 | |
2,020 | 44,720 | |
2,021 | 44,720 | |
2,022 | 44,720 | |
Thereafter | 1,500,940 | |
Total intangibles, net | $ 1,702,363 | $ 1,753,907 |
Short Term Loans and Loan Pay38
Short Term Loans and Loan Payable (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Debt Disclosure [Abstract] | ||||
Interest expense | $ 4,891 | $ 4,498 | $ 9,746 | $ 8,978 |
Short Term Loans and Loan Pay39
Short Term Loans and Loan Payable - Schedule of Short term Loans (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Total short term loans | $ 476,151 | $ 484,260 |
Short Term Loan One [Member] | ||
Total short term loans | 226,375 | 230,230 |
Short Term Loan Two [Member] | ||
Total short term loans | 98,652 | 100,333 |
Short Term Loan Three [Member] | ||
Total short term loans | $ 151,124 | $ 153,697 |
Short Term Loans and Loan Pay40
Short Term Loans and Loan Payable - Schedule of Short term Loans (Details) (Parenthetical) - CNY (¥) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Short Term Loan One [Member] | ||
Debt interest rate | 4.90% | 4.90% |
Debt maturity date | Oct. 30, 1989 | Oct. 30, 1989 |
Short Term Loan One [Member] | RMB [Member] | ||
Original principal amount | ¥ 1,497,945 | ¥ 1,497,945 |
Short Term Loan Two [Member] | ||
Debt interest rate | 7.92% | 7.92% |
Short Term Loan Two [Member] | RMB [Member] | ||
Original principal amount | ¥ 652,794 | ¥ 652,794 |
Short Term Loan Three [Member] | ||
Debt interest rate | 0.00% | 0.00% |
Short Term Loan Three [Member] | RMB [Member] | ||
Original principal amount | ¥ 1,000,000 | ¥ 1,000,000 |
Other Payables and Accrued Li41
Other Payables and Accrued Liabilities - Schedule of Other Payables and Accrued Liabilities (Details ) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Security deposits & other payable | $ 90,480 | $ 96,847 |
Accrued loan interest expenses | 410,467 | 407,923 |
Payroll payable | 9,265 | 3,927 |
Accrued expenses | 61,812 | 50,881 |
Total | $ 572,024 | $ 559,578 |
Related Party Transaction (Deta
Related Party Transaction (Details Narrative) - USD ($) | Feb. 28, 2018 | Jan. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 |
Consulting fee | $ 895 | $ 4,614 | |||||
Parent Company [Member] | Chief Executive Officer [Member] | |||||||
Consulting fee | 30,000 | 60,000 | |||||
Parent Company [Member] | Chief Financial Officer [Member] | |||||||
Consulting fee | 10,500 | 21,000 | |||||
Consulting Agreements [Member] | Cheuk Kau Herman Kwong and Kwok Leung Lee [Member] | |||||||
Monthly compensation | $ 2,552 | $ 2,552 | $ 1,275 | ||||
Consulting Agreements [Member] | Cheuk Kau Herman Kwong and Kwok Leung Lee [Member] | HKD [Member] | |||||||
Monthly compensation | $ 20,000 | $ 20,000 | $ 10,000 | ||||
Consulting Agreements [Member] | Tang Dynasty [Member] | |||||||
Repayments of related party debt | $ 3,827 | 10,206 | |||||
Consulting Agreements [Member] | Tang Dynasty [Member] | HKD [Member] | |||||||
Repayments of related party debt | $ 30,000 | $ 80,000 |
Related Party Transaction - Sch
Related Party Transaction - Schedule of Related Party Transaction (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Other receivable related parties, total | $ 188,168 | $ 57,955 |
Other payables related parties, total | 3,490,033 | 3,005,353 |
Total other payables - related parties - current | 3,490,033 | 3,005,353 |
Total other payables - related parties - non-current | ||
Hui Zhang [Member] | ||
Name of related parties | Hui Zhang | Hui Zhang |
Relationship | Director of Yangshuo | Director of Yangshuo |
Nature of transactions | Loan for funding business development activities & Funds to former shareholders | Loan for funding business development activities & Funds to former shareholders |
Other receivable related parties, total | $ 188,168 | |
Other payables related parties, total | $ 392,235 | |
Ni Qin [Member] | ||
Name of related parties | Ni Qin | Ni Qin |
Relationship | Director of Shenzhen Guyue Environmental Technology Co. Ltd. | Director of Shenzhen Guyue Environmental Technology Co. Ltd. |
Nature of transactions | Loan from director for operating cash flows | Loan from director for operating cash flows |
Other payables related parties, total | $ 318,002 | $ 16,008 |
Hoi Ming Chan [Member] | ||
Name of related parties | Hoi Ming Chan | Hoi Ming Chan |
Relationship | Chief Executive Officer of IMGL and Director of Tang Dynasty | Chief Executive Officer of IMGL and Director of Tang Dynasty |
Nature of transactions | Advances from director to support the operation of Tang Dynasty and compensation for consulting service to IMGL | Advances from director to support the operation of Tang Dynasty and compensation for consulting service to IMGL |
Other payables related parties, total | $ 3,169,302 | $ 2,575,428 |
Zhi Yuan Chen [Member] | ||
Name of related parties | Zhi Yuan Chen | Zhi Yuan Chen |
Relationship | Supervisor of Shenzhen Guyue Environmental Technology Co. Ltd. | Supervisor of Shenzhen Guyue Environmental Technology Co. Ltd. |
Nature of transactions | Loan from supervisor for Gu Yues operating cash flow | Loan from supervisor for Gu Yues operating cash flow |
Other payables related parties, total | $ 2,729 | $ 19,681 |
Shenzhen Dongyuan Dongli Battery Co., Ltd [Member] | ||
Name of related parties | Shenzhen Dongyuan Dongli Battery Co., Ltd | Shenzhen Dongyuan Dongli Battery Co., Ltd |
Relationship | Zhi Yuan CHEN is the corporate representative of the Company | Zhi Yuan CHEN is the corporate representative of the Company |
Nature of transactions | Loan for Gu Yues operating cash flows | Loan for Gu Yues operating cash flows |
Other payables related parties, total | $ 799 | |
Huizhou Shiji Wufeng Agricultural Industry Co., Ltd [Member] | ||
Name of related parties | Huizhou Shiji Wufeng Agricultural Industry Co., Ltd | Huizhou Shiji Wufeng Agricultural Industry Co., Ltd |
Relationship | Owned by Shenzhen Dongyuan Dongli Battery Co., Ltd and Zhi Yuan CHEN | Owned by Shenzhen Dongyuan Dongli Battery Co., Ltd and Zhi Yuan CHEN |
Nature of transactions | Loan for Gu Yues operating cash flows | Loan for Gu Yues operating cash flows |
Other payables related parties, total | $ 1,202 | |
Parent Company [Member] | ||
Name of related parties | Image International Group Inc. | Image International Group Inc. |
Relationship | Mr. Hoi Ming Chan is the Chief Executive Officer | Mr. Hoi Ming Chan is the Chief Executive Officer |
Nature of transactions | Loan for funding business development activities | Loan for funding business development activities |
Other receivable related parties, total | $ 57,955 |
Non-Operating Revenue (Details
Non-Operating Revenue (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues [Abstract] | ||||
Non-operating rental revenue | $ 8,247 | $ 16,526 |
Non-Operating Revenue - Schedul
Non-Operating Revenue - Schedule of Minimum Future Rentals on Non-Cancelable Operating Leases (Details) | Jun. 30, 2018USD ($) |
Revenues [Abstract] | |
2,018 | $ 9,465 |
2,019 | 10,148 |
2,020 | 6,840 |
Total minimum future rentals receivable | $ 26,453 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) | Jan. 31, 2018 | Jun. 30, 2018 |
Effective federal income tax rate | 34.00% | 21.00% |
Income tax examination, description | On December 22, 2017, the U.S government enacted the Tax Cuts and Jobs Act which covers a wide range of changes to the U.S. tax code, including, but not limited to (1) reducing the U.S. federal corporate income tax rate from 35 percent to 21 percent; (2) requiring companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries; (3) generally eliminating U.S. federal corporate income taxes on dividends from foreign subsidiaries (4) providing modification to subpart F provisions and new taxes on certain foreign earnings such as Global Intangible Low-Taxed Income (GILTI). | |
People's Republic of China [Member] | Enterprise Income Tax Laws [Member] | ||
Effective profit tax percentage | 25.00% | |
Effective withholding tax percentage | 10.00% | |
Tang Dynasty Investment Group Limited [Member] | Hong Kong [Member] | ||
Effective profit tax percentage | 16.50% |
Statutory Reserve (Details Narr
Statutory Reserve (Details Narrative) | 6 Months Ended |
Jun. 30, 2018 | |
Statutory Reserve | |
Statutory surplus reserve fund, description | Subject to certain cumulative limits, the "statutory surplus reserve fund" requires annual appropriations of 10% of after-tax profit until the aggregated appropriations reach 50% of the registered capital (as determined under accounting principles generally accepted in the PRC ("PRC GAAP") at each year-end). |
Contingent Liability (Details N
Contingent Liability (Details Narrative) | Jun. 30, 2018USD ($) | Dec. 31, 2017a |
Area of land | a | 734.4 | |
Yangshuo [Member] | ||
Land carrying amount | $ | $ 258,436 |