Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Apr. 01, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | JRSIS HEALTH CARE Corp | ||
Entity Central Index Key | 0001597892 | ||
Document Type | 10-K | ||
Trading Symbol | JRSS | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 11,439,000 | ||
Entity Common Stock, Shares Outstanding | 14,975,000 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2018 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 256,450 | $ 884,292 |
Accounts receivable, net | 8,213,015 | 5,678,957 |
Inventories | 1,163,845 | 936,549 |
Other receivables | 7,590 | 3,334 |
Prepayments | 1,826,214 | 900,680 |
Amount due from related parties | 149,811 | 1,788,710 |
Deferred expenses | 291,104 | 69,334 |
Deposits for capital leases-current portion | 72,700 | |
Total current assets | 11,980,729 | 10,261,856 |
Construction in progress | 803,257 | 11,320,976 |
Property and equipment, net | 37,723,969 | 26,151,630 |
Long term deferred expenses | 1,238,455 | 106,411 |
Deposits for capital leases | 720,306 | 838,121 |
Total assets | 52,466,716 | 48,678,994 |
Current Liabilities: | ||
Accounts payable | 3,635,761 | 2,105,563 |
Notes payable | 668,175 | |
Short-term bank loans | 445,647 | |
Deposits received | 14,213 | 6,305 |
Amount due to related parties | 109,147 | 73,993 |
Other payable | 49,707 | 77,935 |
Deferred tax payable | 107,365 | |
Tax payable | 41,156 | |
Payroll payable | 383,943 | 57,016 |
Capital lease obligations - current portion | 2,161,977 | 2,313,181 |
Total current liabilities | 7,171,444 | 5,079,640 |
Capital lease obligations | 19,380,209 | 22,767,740 |
Deferred tax payable | 1,231,462 | |
Other capital lease payable | 2,651,084 | 598,811 |
Total liabilities | 30,434,199 | 28,446,191 |
Shareholders' equity | ||
Common stock; $0.001 par value, 100,000,000 shares authorized; 14,975,000 and 14,835,000 issued and outstanding at December 31, 2018 and 2017, respectively | 14,975 | 14,835 |
Additional Paid-in capital | 2,191,363 | 2,051,503 |
Retained earnings | 12,913,912 | 10,920,942 |
Other comprehensive income | (983,109) | (93,520) |
Total shareholders' equity of the Company | 14,137,141 | 12,893,760 |
Non-controlling interest | 7,895,376 | 7,339,043 |
Total shareholders' equity | 22,032,517 | 20,232,803 |
Total liabilities and shareholders' equity | $ 52,466,716 | $ 48,678,994 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 14,975,000 | 14,835,000 |
Common Stock, Shares, Outstanding | 14,975,000 | 14,835,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue: | ||
Total revenue | $ 28,402,759 | $ 24,147,957 |
Operating costs and expenses: | ||
Cost of medicine sold | 8,244,092 | 7,055,828 |
Medical consumables | 3,960,634 | 2,851,904 |
Salaries and benefits | 5,067,864 | 3,606,687 |
Office supplies | 1,140,464 | 677,745 |
Vehicle expenses | 188,483 | 90,028 |
Utilities expenses | 499,852 | 439,248 |
Rentals and leases | 109,326 | 26,636 |
Advertising and promotion expenses | 78,696 | 75,542 |
Interest expense | 1,133,935 | 1,324,867 |
Professional fee | 222,412 | 74,046 |
Depreciation | 1,764,765 | 1,268,253 |
Total operating costs and expenses | 22,410,523 | 17,490,784 |
Earnings from operations before other income and income taxes | 5,992,236 | 6,657,173 |
Other income (expenses) | (379,486) | (16,231) |
Earnings from operations before income taxes | 5,612,750 | 6,640,942 |
Income tax | 2,765,650 | 2,528 |
Net income | 2,847,100 | 6,638,414 |
Less: net income attributable to non-controlling interests | 854,130 | 1,991,524 |
Net income attributable to the Company | 1,992,970 | 4,646,890 |
Other comprehensive income: | ||
Foreign currency translation adjustment attributable to non-controlling interests | (297,797) | 295,000 |
Foreign currency translation adjustment attributable to the Company | (889,589) | 692,535 |
Comprehensive income | 1,659,714 | 7,625,949 |
Less: Comprehensive income attributable to non-controlling interests | 556,333 | 2,286,524 |
Comprehensive income attributable to the Company | $ 1,103,381 | $ 5,339,425 |
Basic and diluted earnings per share (in dollars per share) | $ 0.1333 | $ 0.3247 |
Weighted average number of shares outstanding (in shares) | 14,948,397 | 14,311,932 |
Medicine [Member] | ||
Revenue: | ||
Total revenue | $ 11,183,130 | $ 10,889,753 |
Patient services[Member] | ||
Revenue: | ||
Total revenue | $ 17,219,629 | $ 13,258,204 |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHARESHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Retained Earnings [Member] | Other Comprehensive Income [Member] | Additional Paid-in Capital [Member] | Non-Controlling Interest [Member] | Total |
Balance at Dec. 31, 2016 | $ 13,915 | $ 6,274,052 | $ (786,055) | $ 1,132,423 | $ 5,052,519 | $ 11,686,854 |
Balance (in shares) at Dec. 31, 2016 | 13,915,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 4,646,890 | 1,991,524 | 6,638,414 | |||
Shares issued | $ 920 | 919,080 | 920,000 | |||
Shares issued (in shares) | 920,000 | |||||
Foreign currency translation adjustment | 692,535 | 295,000 | 987,535 | |||
Balance at Dec. 31, 2017 | $ 14,835 | 10,920,942 | (93,520) | 2,051,503 | 7,339,043 | 20,232,803 |
Balance (in shares) at Dec. 31, 2017 | 14,835,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,992,970 | 854,130 | 2,847,100 | |||
Shares issued | $ 140 | 139,860 | 140,000 | |||
Shares issued (in shares) | 140,000 | |||||
Foreign currency translation adjustment | (889,589) | (297,797) | (1,187,386) | |||
Balance at Dec. 31, 2018 | $ 14,975 | $ 12,913,912 | $ (983,109) | $ 2,191,363 | $ 7,895,376 | $ 22,032,517 |
Balance (in shares) at Dec. 31, 2018 | 14,975,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows From Operating Activities | ||
Net income | $ 2,847,100 | $ 6,638,414 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 1,764,765 | 1,268,253 |
Interest | 1,133,935 | 1,324,867 |
Amortization for long-term deferred assets | 384,483 | |
Loss on disposal of fixed assets | 294,565 | |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (2,951,899) | (2,040,729) |
Inventories | (288,677) | (78,437) |
Amount due from related parties | 1,578,970 | 129,261 |
Prepayments and other current assets | 501,856 | (200,901) |
Accounts payable | 1,966,667 | 1,263,300 |
Notes payable | 151,142 | |
Amount due to related parties | 37,886 | 54,907 |
Deferred tax payable | 1,391,702 | |
Deposits received | 8,573 | 162 |
Accrued expenses and other current liabilities | 375,066 | (20,887) |
Net cash provided by operating activities | 9,199,134 | 8,338,210 |
Cash Flows From Investing Activities | ||
Purchases of fixed assets | (3,278,264) | (2,590,890) |
Prepayment for construction in progress | (1,158,992) | (10,901,428) |
Prepayment for fixed assets | (1,529,837) | |
Proceeds from disposal of fixed assets | 29,088 | |
Net cash used in investing activities | (5,967,093) | (13,463,230) |
Cash Flows From Financing Activities | ||
Proceeds from shareholders | 140,000 | 903,153 |
Payments on capital lease obligation | (3,622,715) | 3,860,155 |
Short-term bank loans | 405,176 | |
Repayment to bank | (440,462) | |
Net cash provided by (used in) financing activities | (3,923,177) | 5,168,484 |
Effect of exchange rate fluctuation on cash and cash equivalents | 63,294 | (49,834) |
Net decrease in cash and cash equivalents | (627,842) | (6,370) |
Cash and cash equivalents, beginning of period | 884,292 | 890,662 |
Cash and cash equivalents, ending of period | 256,450 | 884,292 |
Supplemental disclosure of cash flow information | ||
Cash paid for income taxes | (1,303,288) | (2,528) |
Cash paid for interest | $ (1,154,872) | $ (1,324,867) |
DESCRIPTION OF BUSINESS AND ORG
DESCRIPTION OF BUSINESS AND ORGANIZATION | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND ORGANIZATION | NOTE 1. DESCRIPTION OF BUSINESS AND ORGANIZATION JRSIS Health Care Corporation (the “Company” or “JRSS”) was incorporated on November 20, 2013 under the laws of the State of Florida. In December 2013 JRSS acquired 100% of the equity in JRSIS Health Care Limited (“JHCL”), which is a Limited Liability Company registered in British Virgin Island (“BVI”) on February 25, 2013. JHCL owns 100% of the equity in Runteng Medical Group Co., Ltd (“Runteng”), a limited liability company registered in Hong Kong on September 17, 2012. Runteng owns 70% of the equity in Harbin Jiarun Hospital Co., Ltd (“Jiarun”), a for-profit hospital incorporated in Harbin City of Heilongjiang, China in February 2006. The remaining 30% of the equity in Jiarun is owned by Junsheng Zhang, who is the Chairman of the Board of JRSIS Health Care Corporation. Jiarun is a private hospital serving patients on a municipal and county level and providing both Western and Chinese medical practices to the residents of Harbin. Jiarun also owns 100% of the equity in: ● Harbin Jiarun Hospital Co., Ltd Nanjing Road Branch (“NRB Hospital”), a hospital branch of Jiarun, incorporated in Harbin city of Heilongjiang, China in October 2017. NRB hospital is a private hospital serving patients on a municipal and county level and providing both Western and Chinese medical practices to the residents of Harbin. ● Harbin Jiarun Hospital Co., Ltd 2 nd nd nd 30% of the equity in Jiarun is held by Junsheng Zhang, and is therefore a non-controlling interest (“NCI”), accounted for pursuant to ASC810-10-45, which states that the ownership interest in the subsidiary that is held by owners other than the parent is a non-controlling interest. According to the supplemental agreement signed between Junsheng Zhang and Runteng on June 1, 2013, the comprehensive income from Jiarun would be attributable to retained earnings and non-controlling interest for 70% and 30% respectively, from July 1, 2013. |
SUMMARIES OF SIGNIFICANT ACCOUN
SUMMARIES OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
SUMMARIES OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. SUMMARIES OF SIGNIFICANT ACCOUNTING POLICIES A. Basis of presentation The consolidated financial statements have been prepared in accordance with the United States generally accepted accounting principles (“U.S. GAAP”). B. Principles of consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All inter-company transactions and balances have been eliminated in consolidation. Non-controlling interests represent the equity interest in Jiarun that is not attributable to the Company. Non-controlling interest is reported in the consolidated financial position within equity, separate from the Company’s equity. Net income or loss and comprehensive income or loss are attributed to the Company’s and the non-controlling interest. C. Use of estimates The preparation of audited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ from those estimates. Significant items subject to such estimates and assumptions include valuation allowances for receivables and recoverability of carrying amount and the estimated useful lives of long-lived assets. These estimates are often based on complex judgments and assumptions that management believes to be reasonable but are inherently uncertain and unpredictable. Actual results could differ from these estimates. D. Functional currency and foreign currency translation JRSS and JHCL’s functional currency is the United States dollar (“US$”). Runteng’s functional currency is the Hong Kong dollar (“HK$”). The functional currency of Jiarun is the Renminbi (“RMB”). The Company’s reporting currency is US$. Assets and liabilities of Runteng and Jiarun are translated at the current exchange rate at the balance sheet dates, revenues and expenses are translated at the average exchange rates during the reporting periods, and equity accounts are translated at historical rates. Translation adjustments are reported in other comprehensive income. The exchange rates used for foreign currency translation are as follows: For the year Ended December 31, 2018 2017 (USD to RMB/USD to HKD) ( USD to RMB/USD to HKD Assets and liabilities period end exchange rate 6.8776 / 7.8317 6.5074 / 7.8152 Revenue and expenses period average 6.6193 / 7.8375 6.7578 / 7.7926 E. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk are cash, accounts receivable and other receivables arising from its normal business activities. The Company places its cash in what it believes to be credit-worthy financial institutions. The majority of sales are either cash receipt in advance or cash receipt upon delivery. For the years ended December 31, 2018 and 2017, no customer accounted for more than 10% of net revenue. As of December 31, 2018 and 2017, three and two customers accounted for more than 5% of net accounts receivable, respectively. For those credit sales, the Company routinely assesses the financial strength of its customers and, based upon factors surrounding the credit risk, establishes an allowance, if required, for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowance is limited. F. Cash and cash equivalents Cash and cash equivalents include all cash, deposits in banks and other liquid investments with initial maturities of three months or less. G. Accounts receivable Accounts receivable are recorded at net realizable value consisting of the carrying amount less an allowance for uncollectible accounts as needed. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company determines the allowance based on aging data, historical collection experience, customer specific facts and economic conditions. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. H. Inventories Inventories, consisting principally of medicines, are stated at the lower of cost or market using the first-in, first-out method (“FIFO”). This policy requires the Company to make estimates regarding the market value of inventory, including an assessment of excess or obsolete inventory. The Company determines excess or obsolete inventory based on an estimate of the future demand and estimated selling prices for its products. I. Construction in progress Construction in progress represents the new hospital painting and decoration costs. And all direct costs relating to the polishing and decoration are capitalized as construction in progress. No depreciation is provided in respect of construction in progress. J. Property and equipment Property and equipment are stated at cost. Expenditures for maintenance and repairs are charged to operations when incurred, while additions and betterments are capitalized. Depreciation is recorded on a straight-line basis reflective of the useful lives of the assets. When assets are retired or disposed, the asset’s original cost and related accumulated depreciation are eliminated from accounts and any gain or loss is reflected in income. The estimated useful lives for property and equipment categories are as follows: Buildings and improvement 10-40 years Medical equipment 5-15 years Transportation instrument 5-10 years Office equipment 5-10 years Electronic equipment 5-10 years Software 5-10 years K. Leases Operating lease Leases where substantially all the rewards and risks of ownership of assets remain with the lessor are accounted for as operating leases. Minimum lease payments, including scheduled rent increases, made under operating leases are charged to the consolidated statements of operations and other comprehensive income (loss) on a straight-line basis over the lease term. Contingent rentals are excluded from minimum lease payments and are recognized as expense when the achievement of the specified target is considered probable. Capital lease Leases which substantially transfer all of the benefits and risks inherent in ownership to the lessee are classified as capital leases. In a capital lease, assets and liabilities are recorded at the amount of the lesser of (a) the fair value of the leased asset at the inception of the lease or (b) the present value of the minimum lease payments (excluding executing costs) over the lease term. Recorded assets are depreciated over their estimated useful lives. During the lease term, each minimum lease payment is allocated between a reduction of the obligation and interest expense to produce a constant periodic rate of interest on the remaining balance of the obligation. Leasehold improvements are depreciated over the depreciable lives of the corresponding fixed asset or the related lease term, whichever is shorter. L. Fair Value Measurement The Company applies the provisions of ASC Subtopic 820-10, Fair Value Measurements, for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements. ASC 820 also establishes a framework for measuring fair value and expands disclosures about fair value measurements. Fair value is defined as the price that would be received when selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining the fair value for the assets and liabilities required or permitted to be recorded, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes three levels of inputs that may be used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs that is observable, either directly or indirectly, for substantially the full term of the asset or liability; Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). There were no transfers between level 1, level 2 or level 3 measurements for the years ended December 31, 2018 and 2017. Cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities are reflected in the accompanying consolidated financial statements at amounts that approximate fair value because of the short-term nature of these instruments. The fair value of the Company’s capital lease obligations also approximates carrying value as they bear interest at current market rates. M. Segment and geographic information The Company is operating in one segment in accordance with the accounting guidance FASB ASC topic 280, “Segment Reporting”. The company’s revenues are from customers in People’s Republic of China (“PRC”). All assets of the company are located in PRC. N. Revenue recognition The Company recognizes revenue when the amount of revenue can be reliably measured, it is probable that economic benefits will flow to the entity, and specific criteria have been met for each of the Company’s activities as described below. Medicine sales Revenue from the sale of medicine is recognized when it is both earned and realized. The Company’s policy is to recognize the sale of medicine when the title of the medicine, ownership and risk of loss have transferred to the purchasers, and collection of the sales proceeds is reasonably assured, all of which generally occur when the patient receives the medicine. Given the nature of this revenue source of the Company’s business and the applicable rules guiding revenue recognition, the revenue recognition practices for the sale of medicine do not contain estimates that materially affect results of operations nor does the Company have any policy for return of products. Patient Services In accordance with the medical licenses under which Jiarun operates, the scope of its approved medical patient service includes medical consulting, surgery, obstetrics and gynecology, pediatrics, anesthesia, clinic laboratory, medical imaging, and traditional Chinese medicine. Patient service revenue is recognized when it is both earned and realized. The Company’s policy is to recognize patient service revenue when the medical service has been provided to the patient and collection of the revenue is reasonably assured. The Company provides services to both patients covered by social insurance and patients who are not covered by social insurance. The Company charges the same rates for patient services regardless of the coverage by social insurance. Patients who are not covered by social insurance are liable for the total cost of medical treatment. ● For out-patient medical services, revenue is recognized when the Company provides medical service to the patient. The Company collects payment before the patient leaves the hospital. ● For in-patient medical services, when a patient checks into the hospital, the Company estimates the approximate fee the patient will spend in the hospital based on patient’s symptoms. At that time, the Company collects the estimated fees from the patient and records the payment as deposits received. During the in-patient services period, the Company recognizes revenue when the patient service is provided and deducts the cost of service from the deposit received. The Company records these transactions based on daily reports generated by the respective medical department. When medical services exceed patient deposits received the Company records revenue and accounts receivable when the patient services are provided. When a patient checks out from the hospital, the Company calculates and determines the remaining deposit, if any, and refunds the unused portion of the deposit to the patients. In the case where the patient has a balance in accounts receivable, accounts receivable are required to be paid in full at checkout. Patients covered by social insurance will receive a portion or full medical services reimbursed or paid by the social insurance agencies via prepaid cards or insurance claim settlement process. Settlement process The Company is a registered medical service vendor under the state social insurance system for various social insurance agencies; the insurance agencies include “Social Medical Insurance funded by PRC and Heilongjiang Province” and “Heilongjiang Province New Rural Cooperative Medical Care System”. The Company utilizes an online system maintained by the social insurance agencies for patients who are covered by social insurance agencies. ● The Company records patients’ information in the social insurance system at check in. The system determines the covered portion and amounts based on the information input to the system. ● At the time of check out, the Company collects payment for services the patients are liable for and records accounts receivable from the social insurance agencies for the portion of services covered by the social insurances. In the case that the patients have made payment during the in-patient services period, the Company refunds any amount in excess of the portion they are liable for. ● The Company is responsible for submitting supporting documents of patient services provided to the social insurance agencies for their review. The Company is also required to reconcile its records with the social insurance agencies once a month. Once the social insurance agencies approve the reconciliation, the insurance agencies will settle the accounts receivable balance in the next month following the approval. O. Income taxes The Company has adopted FASB ASC Topic 740, “Income Taxes,” which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. In July 2006, the FASB issued FIN 48(ASC 740-10), Accounting for Uncertainty in Income Taxes-An Interpretation of FASB Statement No. 109 (ASC 740), which requires income tax positions to meet a more-likely-than-not recognition threshold to be recognized in the financial statements. Under FIN 48 (ASC 740-10), tax positions that previously failed to meet the more-likely-than-not threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The application of tax laws and regulations is subject to legal and factual interpretation, judgment and uncertainty. Tax laws and regulations themselves are subject to change as a result of changes in fiscal policy, changes in legislation, the evolution of regulations and court rulings. Therefore, the actual liability may be materially different from our estimates, which could result in the need to record additional tax liabilities or potentially reverse previously recorded tax liabilities or deferred tax asset valuation allowance. As a result of the implementation of FIN 48 (ASC 740-10), the Company made a comprehensive review of its portfolio of tax positions in accordance with recognition standards established by FIN 48 (ASC 740-10). The Company recognized no material adjustments to liabilities or shareholder’s equity as a result of the implementation. The adoption of FIN 48 did not have a material impact on the Company’s unaudited consolidated financial statements. Enterprise income tax is determined under the Provisional Regulations of PRC Concerning Income Tax on Enterprises promulgated by the PRC, income tax is payable by enterprises at a rate of 25% of their taxable income. P. Earnings per share Basic earnings per common share is computed by using net income divided by the weighted average number of shares of common stock outstanding for the periods presented. Diluted earnings per share is computed by dividing net income by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding for the periods presented. Q. Reclassification The comparative figures have been reclassified to conform to current year presentation. R. Recently adopted accounting pronouncements In March 2017, the FASB issued ASU No. 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities. Under current GAAP, entities normally amortize the premium as an adjustment of yield over the contractual life of the instrument. This guidance shortens the amortization period for certain callable debt securities held at a premium to the earliest call date. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The adoption of ASU No. 2017-08 is not expected to have a material impact on the Company’s consolidated financial statements. In July 2017, the FASB issued Accounting Standards Update (“ASU”) No. 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815) (“ASU 2017-11”). The update changes the classification of certain equity-linked financial instruments (or embedded features) with down round features. The update also clarifies existing disclosure requirements for equity-classified instruments. The update is effective retrospectively for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. Early adoption is permitted for all companies in any interim or annual period. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which provides an additional, optional transition method related to implementing the new leases standard. ASU 2018-11 provides that companies can initially apply the new leases standard at adoption and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Management is evaluating the new guidance and expects to report increased assets and liabilities as a result of recording right-of-use assets and lease liabilities. We will adopt this guidance for our interim and annual periods beginning January 1, 2019 The FASB issued an Accounting Standards Update (ASU) that helps organizations address certain stranded income tax effects in accumulated other comprehensive income (AOCI) resulting from the Tax Cuts and Jobs Act. ASU No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, provides financial statement preparers with an option to reclassify stranded tax effects within AOCI to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (or portion thereof) is recorded. The ASU requires financial statement preparers to disclose: ● A description of the accounting policy for releasing income tax effects from AOCI; ● Whether they elect to reclassify the stranded income tax effects from the Tax Cuts and Jobs Act; and ● Information about the other income tax effects that are reclassified. The amendments affect any organization that is required to apply the provisions of Topic 220, Income Statement—Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP. The amendments are effective for all organizations for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. Organizations should apply the proposed amendments 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 guidance is not expected to have a significant impact on the Company’s financial statements. We do not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows. |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Dec. 31, 2018 | |
Receivables, Net, Current [Abstract] | |
ACCOUNTS RECEIVABLE, NET | NOTE 3. ACCOUNTS RECEIVABLE, NET December 31 2018 2017 Accounts receivable $ 8,237,369 $ 5,704,697 Less: allowance for doubtful debts 24,354 25,740 $ 8,213,015 $ 5,678,957 The Company experienced nil bad debts during the years ended December 31, 2018 and 2017. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 4. INVENTORIES At December 31, 2018 and 2017, inventories consist of the following: December 31 2018 2017 Western medicine $ 809,499 $ 662,079 Chinese herbal medicine 29,796 29,499 Medical material 321,477 243,445 Other material 3,073 1,526 $ 1,163,845 $ 936,549 |
PREPAYMENT
PREPAYMENT | 12 Months Ended |
Dec. 31, 2018 | |
Prepaid Expense, Current [Abstract] | |
PREPAYMENT | NOTE 5. PREPAYMENT At December 31, 2018 and 2017, prepayment consists of the following: December 31 2018 2017 Deposits on medical equipment $ 1,297,411 $ 491,822 Heating fees 135,035 117,188 Others 393,768 291,670 $ 1,826,214 $ 900,680 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 6. PROPERTY AND EQUIPMENT At December 31, 2018 and 2017, property and equipment, at cost, consist of: December 31, 2018 2017 Transportation equipment $ 1,000,303 $ 871,653 Medical equipment 15,001,892 11,833,334 Electrical equipment 1,649,229 1,496,461 Office equipment and other 813,635 130,524 Buildings 24,011,797 15,389,204 Software 138,366 146,238 Total fixed assets at cost 42,615,222 29,867,414 Accumulated depreciation (4,891,253 ) (3,715,784 ) Total fixed assets, net $ 37,723,969 $ 26,151,630 Depreciation expense was $1,764,765 and $1,268,253 for the years ended December 31, 2018 and 2017, respectively. |
LONG TERM DEFERRED EXPENSES
LONG TERM DEFERRED EXPENSES | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Expenses [Abstract] | |
LONG TERM DEFERRED EXPENSES | NOTE 7. LONG TERM DEFERRED EXPENSES On May 7, 2015, July 3, 2015 and October 16, 2015, Jiarun entered into three lease agreements to lease medical equipment from Hair Finance Leasing (China) Co., Ltd. (“Hair”), a third party, for a five-year period, in which Jiarun is required to pay a consulting fee to Hair for the services provided over the five years. During the year ended December 31, 2018, the Company paid approximately $1.6 million for the decoration of its outpatient building and the two Branch Hospitals. The consulting and decoration fees paid but attributable to the current and subsequent accounting periods were accounted for as deferred expenses and long term deferred expenses. The current portion of the prepaid consulting and decoration fees were recorded as deferred expenses of $291,104 and $69,334 as of December 31, 2018 and 2017. The long-term deferred expenses were $1,238,455 and 106,411 as of December 31, 2018 and 2017. The Company recorded consulting fees of $68,193 and $66,764, and decoration fees of $149,105 and $nil for the year ended December 31, 2018 and 2017, respectively. |
CAPITAL LEASE OBLIGATIONS AND D
CAPITAL LEASE OBLIGATIONS AND DEPOSIT FOR CAPITAL LEASES | 12 Months Ended |
Dec. 31, 2018 | |
Leases, Capital [Abstract] | |
CAPITAL LEASE OBLIGATIONS AND DEPOSIT FOR CAPITAL LEASES | NOTE 8. CAPITAL LEASE OBLIGATIONS AND DEPOSIT FOR CAPITAL LEASES On June 5, 2013, Jiarun entered into a lease agreement to lease its hospital building from Harbin Baiyi Real Estate Development Co., Ltd (“the Lessor”), which is owned by Junsheng Zhang, a related party. The Lease has a term of 30 years, requiring annual prepayment of a rent of RMB7,000,000. The first payment was made on September 1, 2014. At the end of the leasing period, a final payment will be made to settle the total leasing amount. Both parties agreed for Jiarun to pay RMB3,000,000 as deposit at the execution of the Leasing agreement, which will be deducted from the final rental settlement. In accordance with accounting principles and treatment, this payment was booked as deposit in our accounts. The Lessor shall return the premium for lease to Jiarun at expiration of this Contract or pledge this deposit as part of rents for the last period or periods in 2043. The implicit interest rate, which determined the rental fee after fair value was amortized, was calculated at 6.55%, which is the benchmark interest rate announced by The People’s Bank of China. After the completion of all payments, the ownership of the lease item will be transferred to Jiarun. The leasing agreement for our hospital building contains the following provisions: ● Rental payments of RMB7,000,000 (equivalent to $1,144,913) per year, payable at the beginning of September. ● An option allowing the lessor to extend the lease for thirty years beyond the last renewal option exercised by the company. ● A guarantee by the company that the lessor will realize $nil, from selling the asset at the expiration of the lease This lease is a capital lease because its term (30 years) exceeds 75% of the building’s estimated economic life. In addition, the present value ($15,185,032) of the minimum lease payments exceeds 90% of the fair value of the building ($15,721,295). ● Accumulated annual amounts resulting from applying an interest rate of 6.55% to the balance of the lease obligation at the beginning of each year. The lease obligation is increased by the amount of the prior year’s interest, the amount of the net rental payment at the beginning of each year; and this amount represents the guaranteed residual value at the end of the lease term. On September 1, 2014, October 22, 2014, March 26, 2015, May 7, 2015, July 3, 2015, October 16, 2015, April 6, 2016 and April 13, 2016 and November 25, 2016 and April 5 2017 Jiarun entered into several lease agreements to lease medical equipment and elevators from three lease finance companies, which are all third parties, for three to five-year periods, in which Jiarun is required to make monthly or quarterly payments toward the leases. The Company was also required to pay deposits up front, which deposits will later be used to offset against the last quarterly payment. The medical equipment and elevator will be transferred to Jiarun upon the completion of the agreement. These leases have been classified as capital leases. The cost of the medical equipment included in these leases is included in the consolidated balance sheets as property and equipment and construction in progress. The future minimum lease payments for annual capital lease obligation as of December 31, 2018 are as follows: Year Amounts 2019 $ 2,161,977 2020 1,122,713 2021 349,522 Thereafter 17,907,974 Total $ 21,542,186 The Company recorded finance lease fees of $1,178,074 and $1,286,306 for the years ended December 2018 and 2017, respectively. |
SHORT-TERM BANK LOAN
SHORT-TERM BANK LOAN | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BANK LOANS | NOTE 9. SHORT-TERM BANK LOANS As of December 31, 2018 and 2017, the short-term bank loans were $ nil and $445,647, respectively. The loans were primarily obtained from Harbin Bank with interest rate of 6.09% per annum, from January 19, 2017 to January 18, 2018, for working capital and capital expenditure purposes. The interest expenses were $2,150 and $23,956 for the year ended December 31, 2018 and 2017, respectively. |
NON-CONTROLLING INTERESTS
NON-CONTROLLING INTERESTS | 12 Months Ended |
Dec. 31, 2018 | |
Noncontrolling Interest [Abstract] | |
NON-CONTROLLING INTERESTS | NOTE 10. NON-CONTROLLING INTERESTS Jiarun is the Company’s majority-owned subsidiary, which is consolidated in the Company’s financial statements with a non-controlling interest (NCI) recognized. The Company holds 70% interest of Jiarun as of December 31, 2018 and 2017. As of December 31, 2018 and 2017, NCI in the consolidated balance sheet was $7,895,376 and $7,339,043, respectively. For the year ended December 31, 2018, the comprehensive income attributable to shareholders’ equity and NCI is $1,103,381 and $556,333, respectively. For the year ended December 31, 2017, the comprehensive income attributable to shareholders’ equity and NCIs is $5,339,425 and $2,286,524, respectively. |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2018 | |
Revenue: | |
REVENUE | NOTE 11. REVENUE The Company’s revenue consists of medicine sales and patient care revenue. For the Year Ended December 31, 2018 2017 Medicine: Western medicine $ 8,613,196 $ 8,630,919 Chinese medicine 1,753,625 1,782,552 Herbal medicine 816,309 476,282 Total medicine $ 11,183,130 $ 10,889,753 Patient services: Medical consulting $ 8,720,373 $ 7,110,475 Medical treatment 8,160,483 5,736,799 Others 392,773 410,930 Total patient services $ 17,219,629 $ 13,258,204 $ 28,402,759 $ 24,147,957 |
INCOME TAX EXPENSE
INCOME TAX EXPENSE | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX EXPENSE | NOTE 12. INCOME TAX EXPENSE The Company uses the asset-liability method of accounting for income taxes prescribed by ASC 740 Income Taxes. The Company and its subsidiaries each file their taxes individually. United States JRSS is subject to the United States of America Tax law at tax rate of 21%. No provision for the US federal income taxes has been made as the Company had no US taxable income for the periods presented, and its earnings are planned to be reinvested indefinitely into the operations of the Company in the PRC.. The following table shows the components of the allowance for US income tax recorded for 2018: Amounts Loss before income tax $ (222,412 ) Tax rate at 21% (46,707 ) Disallowed tax losses 46,707 Income tax expense $ — BVI JHCL was incorporated in the BVI and, under the current laws of the BVI, it is not subject to income tax. Hong Kong Runteng was incorporated in Hong Kong and is subject to Hong Kong profits tax. Runteng is subject to Hong Kong taxation on its activities conducted in Hong Kong and income arising in or derived from Hong Kong. The applicable statutory tax rate is 16.5%. The following table shows the components of the allowance for Hong Kong income tax recorded for 2018: Amounts Loss before income tax $ (672 ) Tax rate at 16.5% (111 ) Disallowed tax losses 111 Income tax expense $ — PRC Corporate Income Tax (CIT) is determined under the Provisional Regulations of PRC Concerning Income Tax on Enterprises promulgated by the PRC, income tax is payable by enterprises at a rate of 25% of their taxable income. Jiarun had benefited from provisions of the Regulations that exempted certain medical facilities from income tax. Recently, the local tax office informed Jiarun that to the entitlement of fully tax-exempt status should be terminated in 2015. Jiarun was determined to pay $1,318,102 income tax for the years 2015 through 2017, based on a preferential rate of 2.5% of gross revenue, and the government waived interest and penalties. Beginning in 2018, Jiarun is paying income tax at the national rate of 25% of taxable income. The following table shows the components of the allowance for PRC income tax recorded for 2018: Amounts Income tax expense $ 55,846 Income tax: 2018 deferred 1,391,702 Income tax: prior period 1,318,102 Tax expense from continuing operation $ 2,765,650 Reconciliation: Amounts Income tax at statutory rate $ 1,447,548 Expense on prior period adjustment 1,318,102 Tax expense from continuing operation $ 2,765,650 According to the PRC “Notice on Preferential Corporate Income Tax (CIT) Treatment for Eligible Equipment or Machinery (Cai Shui [2018] No. 54)”, a 100% immediate tax deduction for CIT purposes is allowed on the condition that the unit price of each item of equipment or machinery is individually less than RMB5 million. Depreciation for tax purposes is not required. Basis differences between tax and GAAP for depreciation of property and equipment exist because in 2018 the Company purchased Eligible Equipment for RMB 36.83million, with $1,391,702 deferred income tax, creating differences between tax and GAAP. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 13. RELATED PARTY TRANSACTIONS The following is the list of the related parties to which the Group has transactions with: (a) Junsheng Zhang, the Chairman of the Company (b) Harbin Baiyi Real Estate Development Co., Ltd, owned by Junsheng Zhang (c) Harbin Jiarun Pharmacy Co., Ltd, owned by Junsheng Zhang (d) Heilongjiang Province Runjia Medical Equipment Company Limited, owned by Junsheng Zhang (e) Jiarun Super Market Co., Ltd,. owned by Junsheng Zhang (f) Harbin Qi-run Pharmacy Limited, owned by Junsheng Zhang (g) Yanhua Xing and Weiguang Song, the former shareholders of JHCL Amount due from related parties Amount due from related parties consisted of the following as of the periods indicated: December 31, Name of related parties 2018 2017 Harbin Baiyi Real Estate Development Co., Ltd, $ 99,811 $ 1,738,710 Junsheng Zhang 46,500 46,500 Yanhua Xing 2,450 2,450 Weiguang Song 1,050 1,050 $ 149,811 $ 1,788,710 Amount due from Baiyi mainly represented the deposit for the outpatient building decoration. The Company had paid a deposit of $99,811 in 2018. Amount due from Junsheng Zhang, Yanhua Xing and Weiguang Song, who are the prior shareholders of JHCL, was mainly for the paid-in capital to which they had committed. Amount due to related parties Amount due to related parties consisted of the following as of the periods indicated: December 31, Name of related parties 2018 2017 Harbin Jiarun Pharmacy Co., Ltd $ 1,211 $ 7 Heilongjiang Province Runjia Medical Equipment Co., Ltd 1,614 6,014 Jiarun Super Market Co., Ltd. 39,042 — Harbin Qi-run Pharmacy Co., Ltd 17,280 17,972 Junsheng Zhang 50,000 50,000 $ 109,147 $ 73,993 Amount due to Harbin Jiarun Pharmacy Co., Ltd., Harbin Qi-run Pharmacy Co., Ltd. and Heilongjiang Province Runjia Medical Equipment Company Limited were mainly the balance due for purchase of medicine and medical material from these three companies. Amounts due to Junsheng Zhang represented amounts paid by Mr. Zhang for the daily operation of the company. Related parties’ transactions Purchase of medicine and medical material from related parties consisted of the following for the periods indicated: For the Year ended December 31, Name of related parties 2018 2017 Harbin Jiarun Pharmacy Co., Ltd $ 229,498 $ 192,259 Heilongjiang Province Runjia Medical Equipment Co., Ltd 5,965 6,463 Harbin Qi-run Pharmacy Co., Ltd 28,770 30,443 $ 264,233 $ 229,165 Deposits for capital leases and capital lease obligations On June 5, 2013, Jiarun entered into a Lease Agreement to lease its hospital complex from Harbin Baiyi Real Estate Development Co., Ltd, which is owned by Junsheng Zhang, a related party. As of December 31, 2018, the Company had deposits for capital leases and capital lease obligations of $436,199 and $12,817,373 respectively. As of December 31, 2017, the Company had deposits for capital leases and capital lease obligations of $461,014 and $14,632,836 respectively. |
BASIC AND DILUTED EARNINGS PER
BASIC AND DILUTED EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
BASIC AND DILUTED EARNINGS PER SHARE | NOTE 14. BASIC AND DILUTED EARNINGS PER SHARE Basic net income per share is computed using the weighted average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares comprise shares issuable upon the exercise of share-based awards, using the treasury stock method. The reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for income from continuing operations is shown as follows: December 31 2018 2017 Numerator: Net income available to common stockholders $ 1,992,970 $ 4,646,890 Denominator: Basic and diluted weighted-average number of shares outstanding 14,948,397 14,311,932 Net income per share: Basic and diluted $ 0.1333 $ 0.3247 |
CONTINGENCIES AND COMMITMENT
CONTINGENCIES AND COMMITMENT | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES AND COMMITMENT | NOTE 15. CONTINGENCIES AND COMMITMENT Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company’s management and legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought. There was no contingency of this type as of December 31, 2018 and 2017. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material would be disclosed. There was no contingency of this type as of December 31, 2018 and 2017. Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed. In August 2017 JRSS leased office space under non-cancellable operating lease agreements. Under terms of the lease agreement, from August 2017, JRSS is committed to lease expense payments of approximately $36,881 per year for 5 years. This office is used for a 2 nd In December 2017 JRSS leased office space under non-cancellable operating lease agreements. Under terms of the lease agreement, from December 2017, JRSS is committed to lease expense payments of approximately $68,128 per year for 5 years. This office is used for the operations of the 1 st Future annual minimum lease payments, for non-cancellable operating leases are as follows: Year ending December 31 Amount $ 2019 123,105 2020 129,284 2021 134,579 2022 105,441 492,409 The company has paid rentals and lease expense of $109,326 and $26,636 for the years ended December 31, 2018 and 2017, respectively |
COMMON STOCK
COMMON STOCK | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
COMMON STOCK | NOTE 16. COMMON STOCK During 2018 the Company issued 140,000 shares of restricted common stock in exchange for US$140,000. The sale was made pursuant to SEC Regulation S to eight non-US persons during 2018, and accordingly was exempt from registration. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 17. SUBSEQUENT EVENTS The Management of the Company determined that there were no reportable subsequent events to be disclosed. |
SUMMARIES OF SIGNIFICANT ACCO_2
SUMMARIES OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of presentation | A. Basis of presentation The consolidated financial statements have been prepared in accordance with the United States generally accepted accounting principles (“U.S. GAAP”). |
Principles of consolidation | B. Principles of consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All inter-company transactions and balances have been eliminated in consolidation. Non-controlling interests represent the equity interest in Jiarun that is not attributable to the Company. Non-controlling interest is reported in the consolidated financial position within equity, separate from the Company’s equity. Net income or loss and comprehensive income or loss are attributed to the Company’s and the non-controlling interest. |
Use of estimates | C. Use of estimates The preparation of audited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ from those estimates. Significant items subject to such estimates and assumptions include valuation allowances for receivables and recoverability of carrying amount and the estimated useful lives of long-lived assets. These estimates are often based on complex judgments and assumptions that management believes to be reasonable but are inherently uncertain and unpredictable. Actual results could differ from these estimates. |
Functional currency and foreign currency translation | D. Functional currency and foreign currency translation JRSS and JHCL’s functional currency is the United States dollar (“US$”). Runteng’s functional currency is the Hong Kong dollar (“HK$”). The functional currency of Jiarun is the Renminbi (“RMB”). The Company’s reporting currency is US$. Assets and liabilities of Runteng and Jiarun are translated at the current exchange rate at the balance sheet dates, revenues and expenses are translated at the average exchange rates during the reporting periods, and equity accounts are translated at historical rates. Translation adjustments are reported in other comprehensive income. The exchange rates used for foreign currency translation are as follows: For the year Ended December 31, 2018 2017 (USD to RMB/USD to HKD) ( USD to RMB/USD to HKD Assets and liabilities period end exchange rate 6.8776 / 7.8317 6.5074 / 7.8152 Revenue and expenses period average 6.6193 / 7.8375 6.7578 / 7.7926 |
Concentration of Credit Risk | E. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk are cash, accounts receivable and other receivables arising from its normal business activities. The Company places its cash in what it believes to be credit-worthy financial institutions. The majority of sales are either cash receipt in advance or cash receipt upon delivery. For the years ended December 31, 2018 and 2017, no customer accounted for more than 10% of net revenue. As of December 31, 2018 and 2017, three and two customers accounted for more than 5% of net accounts receivable, respectively. For those credit sales, the Company routinely assesses the financial strength of its customers and, based upon factors surrounding the credit risk, establishes an allowance, if required, for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowance is limited. |
Cash and cash equivalents | F. Cash and cash equivalents Cash and cash equivalents include all cash, deposits in banks and other liquid investments with initial maturities of three months or less. |
Accounts receivable | G. Accounts receivable Accounts receivable are recorded at net realizable value consisting of the carrying amount less an allowance for uncollectible accounts as needed. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company determines the allowance based on aging data, historical collection experience, customer specific facts and economic conditions. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. |
Inventories | H. Inventories Inventories, consisting principally of medicines, are stated at the lower of cost or market using the first-in, first-out method (“FIFO”). This policy requires the Company to make estimates regarding the market value of inventory, including an assessment of excess or obsolete inventory. The Company determines excess or obsolete inventory based on an estimate of the future demand and estimated selling prices for its products. |
Construction in progress | I. Construction in progress Construction in progress represents the new hospital painting and decoration costs. And all direct costs relating to the polishing and decoration are capitalized as construction in progress. No depreciation is provided in respect of construction in progress. |
Property and equipment | J. Property and equipment Property and equipment are stated at cost. Expenditures for maintenance and repairs are charged to operations when incurred, while additions and betterments are capitalized. Depreciation is recorded on a straight-line basis reflective of the useful lives of the assets. When assets are retired or disposed, the asset’s original cost and related accumulated depreciation are eliminated from accounts and any gain or loss is reflected in income. The estimated useful lives for property and equipment categories are as follows: Buildings and improvement 10-40 years Medical equipment 5-15 years Transportation instrument 5-10 years Office equipment 5-10 years Electronic equipment 5-10 years Software 5-10 years |
Leases | K. Leases Operating lease Leases where substantially all the rewards and risks of ownership of assets remain with the lessor are accounted for as operating leases. Minimum lease payments, including scheduled rent increases, made under operating leases are charged to the consolidated statements of operations and other comprehensive income (loss) on a straight-line basis over the lease term. Contingent rentals are excluded from minimum lease payments and are recognized as expense when the achievement of the specified target is considered probable. Capital lease Leases which substantially transfer all of the benefits and risks inherent in ownership to the lessee are classified as capital leases. In a capital lease, assets and liabilities are recorded at the amount of the lesser of (a) the fair value of the leased asset at the inception of the lease or (b) the present value of the minimum lease payments (excluding executing costs) over the lease term. Recorded assets are depreciated over their estimated useful lives. During the lease term, each minimum lease payment is allocated between a reduction of the obligation and interest expense to produce a constant periodic rate of interest on the remaining balance of the obligation. Leasehold improvements are depreciated over the depreciable lives of the corresponding fixed asset or the related lease term, whichever is shorter. |
Fair Value Measurement | L. Fair Value Measurement The Company applies the provisions of ASC Subtopic 820-10, Fair Value Measurements, for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements. ASC 820 also establishes a framework for measuring fair value and expands disclosures about fair value measurements. Fair value is defined as the price that would be received when selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining the fair value for the assets and liabilities required or permitted to be recorded, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes three levels of inputs that may be used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs that is observable, either directly or indirectly, for substantially the full term of the asset or liability; Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). There were no transfers between level 1, level 2 or level 3 measurements for the years ended December 31, 2018 and 2017. Cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities are reflected in the accompanying consolidated financial statements at amounts that approximate fair value because of the short-term nature of these instruments. The fair value of the Company’s capital lease obligations also approximates carrying value as they bear interest at current market rates. |
Segment and geographic information | M. Segment and geographic information The Company is operating in one segment in accordance with the accounting guidance FASB ASC topic 280, “Segment Reporting”. The company’s revenues are from customers in People’s Republic of China (“PRC”). All assets of the company are located in PRC. |
Revenue recognition | N. Revenue recognition The Company recognizes revenue when the amount of revenue can be reliably measured, it is probable that economic benefits will flow to the entity, and specific criteria have been met for each of the Company’s activities as described below. Medicine sales Revenue from the sale of medicine is recognized when it is both earned and realized. The Company’s policy is to recognize the sale of medicine when the title of the medicine, ownership and risk of loss have transferred to the purchasers, and collection of the sales proceeds is reasonably assured, all of which generally occur when the patient receives the medicine. Given the nature of this revenue source of the Company’s business and the applicable rules guiding revenue recognition, the revenue recognition practices for the sale of medicine do not contain estimates that materially affect results of operations nor does the Company have any policy for return of products. Patient Services In accordance with the medical licenses under which Jiarun operates, the scope of its approved medical patient service includes medical consulting, surgery, obstetrics and gynecology, pediatrics, anesthesia, clinic laboratory, medical imaging, and traditional Chinese medicine. Patient service revenue is recognized when it is both earned and realized. The Company’s policy is to recognize patient service revenue when the medical service has been provided to the patient and collection of the revenue is reasonably assured. The Company provides services to both patients covered by social insurance and patients who are not covered by social insurance. The Company charges the same rates for patient services regardless of the coverage by social insurance. Patients who are not covered by social insurance are liable for the total cost of medical treatment. ● For out-patient medical services, revenue is recognized when the Company provides medical service to the patient. The Company collects payment before the patient leaves the hospital. ● For in-patient medical services, when a patient checks into the hospital, the Company estimates the approximate fee the patient will spend in the hospital based on patient’s symptoms. At that time, the Company collects the estimated fees from the patient and records the payment as deposits received. During the in-patient services period, the Company recognizes revenue when the patient service is provided and deducts the cost of service from the deposit received. The Company records these transactions based on daily reports generated by the respective medical department. When medical services exceed patient deposits received the Company records revenue and accounts receivable when the patient services are provided. When a patient checks out from the hospital, the Company calculates and determines the remaining deposit, if any, and refunds the unused portion of the deposit to the patients. In the case where the patient has a balance in accounts receivable, accounts receivable are required to be paid in full at checkout. Patients covered by social insurance will receive a portion or full medical services reimbursed or paid by the social insurance agencies via prepaid cards or insurance claim settlement process. Settlement process The Company is a registered medical service vendor under the state social insurance system for various social insurance agencies; the insurance agencies include “Social Medical Insurance funded by PRC and Heilongjiang Province” and “Heilongjiang Province New Rural Cooperative Medical Care System”. The Company utilizes an online system maintained by the social insurance agencies for patients who are covered by social insurance agencies. ● The Company records patients’ information in the social insurance system at check in. The system determines the covered portion and amounts based on the information input to the system. ● At the time of check out, the Company collects payment for services the patients are liable for and records accounts receivable from the social insurance agencies for the portion of services covered by the social insurances. In the case that the patients have made payment during the in-patient services period, the Company refunds any amount in excess of the portion they are liable for. ● The Company is responsible for submitting supporting documents of patient services provided to the social insurance agencies for their review. The Company is also required to reconcile its records with the social insurance agencies once a month. Once the social insurance agencies approve the reconciliation, the insurance agencies will settle the accounts receivable balance in the next month following the approval. |
Income taxes | O. Income taxes The Company has adopted FASB ASC Topic 740, “Income Taxes,” which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. In July 2006, the FASB issued FIN 48(ASC 740-10), Accounting for Uncertainty in Income Taxes-An Interpretation of FASB Statement No. 109 (ASC 740), which requires income tax positions to meet a more-likely-than-not recognition threshold to be recognized in the financial statements. Under FIN 48 (ASC 740-10), tax positions that previously failed to meet the more-likely-than-not threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The application of tax laws and regulations is subject to legal and factual interpretation, judgment and uncertainty. Tax laws and regulations themselves are subject to change as a result of changes in fiscal policy, changes in legislation, the evolution of regulations and court rulings. Therefore, the actual liability may be materially different from our estimates, which could result in the need to record additional tax liabilities or potentially reverse previously recorded tax liabilities or deferred tax asset valuation allowance. As a result of the implementation of FIN 48 (ASC 740-10), the Company made a comprehensive review of its portfolio of tax positions in accordance with recognition standards established by FIN 48 (ASC 740-10). The Company recognized no material adjustments to liabilities or shareholder’s equity as a result of the implementation. The adoption of FIN 48 did not have a material impact on the Company’s unaudited consolidated financial statements. Enterprise income tax is determined under the Provisional Regulations of PRC Concerning Income Tax on Enterprises promulgated by the PRC, income tax is payable by enterprises at a rate of 25% of their taxable income. |
Earnings per share | P. Earnings per share Basic earnings per common share is computed by using net income divided by the weighted average number of shares of common stock outstanding for the periods presented. Diluted earnings per share is computed by dividing net income by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding for the periods presented. |
Reclassification | Q. Reclassification The comparative figures have been reclassified to conform to current year presentation. |
Recently adopted accounting pronouncements | R. Recently adopted accounting pronouncements In March 2017, the FASB issued ASU No. 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities. Under current GAAP, entities normally amortize the premium as an adjustment of yield over the contractual life of the instrument. This guidance shortens the amortization period for certain callable debt securities held at a premium to the earliest call date. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The adoption of ASU No. 2017-08 is not expected to have a material impact on the Company’s consolidated financial statements. In July 2017, the FASB issued Accounting Standards Update (“ASU”) No. 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815) (“ASU 2017-11”). The update changes the classification of certain equity-linked financial instruments (or embedded features) with down round features. The update also clarifies existing disclosure requirements for equity-classified instruments. The update is effective retrospectively for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. Early adoption is permitted for all companies in any interim or annual period. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which provides an additional, optional transition method related to implementing the new leases standard. ASU 2018-11 provides that companies can initially apply the new leases standard at adoption and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Management is evaluating the new guidance and expects to report increased assets and liabilities as a result of recording right-of-use assets and lease liabilities. We will adopt this guidance for our interim and annual periods beginning January 1, 2019 The FASB issued an Accounting Standards Update (ASU) that helps organizations address certain stranded income tax effects in accumulated other comprehensive income (AOCI) resulting from the Tax Cuts and Jobs Act. ASU No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, provides financial statement preparers with an option to reclassify stranded tax effects within AOCI to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (or portion thereof) is recorded. The ASU requires financial statement preparers to disclose: ● A description of the accounting policy for releasing income tax effects from AOCI; ● Whether they elect to reclassify the stranded income tax effects from the Tax Cuts and Jobs Act; and ● Information about the other income tax effects that are reclassified. The amendments affect any organization that is required to apply the provisions of Topic 220, Income Statement—Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP. The amendments are effective for all organizations for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. Organizations should apply the proposed amendments 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 guidance is not expected to have a significant impact on the Company’s financial statements. We do not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows. |
SUMMARIES OF SIGNIFICANT ACCO_3
SUMMARIES OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of foreign currency translation | The exchange rates used for foreign currency translation are as follows: For the year Ended December 31, 2018 2017 (USD to RMB/USD to HKD) ( USD to RMB/USD to HKD Assets and liabilities period end exchange rate 6.8776 / 7.8317 6.5074 / 7.8152 Revenue and expenses period average 6.6193 / 7.8375 6.7578 / 7.7926 |
Schedule of estimated useful lives for property and equipment categories | The estimated useful lives for property and equipment categories are as follows: Buildings and improvement 10-40 years Medical equipment 5-15 years Transportation instrument 5-10 years Office equipment 5-10 years Electronic equipment 5-10 years Software 5-10 years |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables, Net, Current [Abstract] | |
Schedule of Accounts Receivable | December 31 2018 2017 Accounts receivable $ 8,237,369 $ 5,704,697 Less: allowance for doubtful debts 24,354 25,740 $ 8,213,015 $ 5,678,957 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | At December 31, 2018 and 2017, inventories consist of the following: December 31 2018 2017 Western medicine $ 809,499 $ 662,079 Chinese herbal medicine 29,796 29,499 Medical material 321,477 243,445 Other material 3,073 1,526 $ 1,163,845 $ 936,549 |
PREPAYMENT (Tables)
PREPAYMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Prepaid Expense, Current [Abstract] | |
Schedule of prepayment | At December 31, 2018 and 2017, prepayment consists of the following: December 31 2018 2017 Deposits on medical equipment $ 1,297,411 $ 491,822 Heating fees 135,035 117,188 Others 393,768 291,670 $ 1,826,214 $ 900,680 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | At December 31, 2018 and 2017, property and equipment, at cost, consist of: December 31, 2018 2017 Transportation equipment $ 1,000,303 $ 871,653 Medical equipment 15,001,892 11,833,334 Electrical equipment 1,649,229 1,496,461 Office equipment and other 813,635 130,524 Buildings 24,011,797 15,389,204 Software 138,366 146,238 Total fixed assets at cost 42,615,222 29,867,414 Accumulated depreciation (4,891,253 ) (3,715,784 ) Total fixed assets, net $ 37,723,969 $ 26,151,630 |
CAPITAL LEASE OBLIGATIONS AND_2
CAPITAL LEASE OBLIGATIONS AND DEPOSIT FOR CAPITAL LEASES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases, Capital [Abstract] | |
Schedule of future minimum lease payments for annual capital lease obligation | The future minimum lease payments for annual capital lease obligation as of December 31, 2018 are as follows: Year Amounts 2019 $ 2,161,977 2020 1,122,713 2021 349,522 Thereafter 17,907,974 Total $ 21,542,186 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue: | |
Schedule of revenue | The Company’s revenue consists of medicine sales and patient care revenue. For the Year Ended December 31, 2018 2017 Medicine: Western medicine $ 8,613,196 $ 8,630,919 Chinese medicine 1,753,625 1,782,552 Herbal medicine 816,309 476,282 Total medicine $ 11,183,130 $ 10,889,753 Patient services: Medical consulting $ 8,720,373 $ 7,110,475 Medical treatment 8,160,483 5,736,799 Others 392,773 410,930 Total patient services $ 17,219,629 $ 13,258,204 $ 28,402,759 $ 24,147,957 |
INCOME TAX EXPENSE (Table)
INCOME TAX EXPENSE (Table) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of the components of the allowance for Hong Kong and PRC income tax recorded for 2018 | NOTE 12. INCOME TAX EXPENSE The following table shows the components of the allowance for US income tax recorded for 2018: Amounts Loss before income tax $ (222,412 ) Tax rate at 21% (46,707 ) Disallowed tax losses 46,707 Income tax expense $ — The following table shows the components of the allowance for Hong Kong income tax recorded for 2018: Amounts Loss before income tax $ (672 ) Tax rate at 16.5% (111 ) Disallowed tax losses 111 Income tax expense $ — The following table shows the components of the allowance for PRC income tax recorded for 2018: Amounts Income tax expense $ 55,846 Income tax: 2018 deferred 1,391,702 Income tax: prior period 1,318,102 Tax expense from continuing operation $ 2,765,650 Reconciliation: Amounts Income tax at statutory rate $ 1,447,548 Expense on prior period adjustment 1,318,102 Tax expense from continuing operation $ 2,765,650 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of due from related parties | Amount due from related parties consisted of the following as of the periods indicated: December 31, Name of related parties 2018 2017 Harbin Baiyi Real Estate Development Co., Ltd, $ 99,811 $ 1,738,710 Junsheng Zhang 46,500 46,500 Yanhua Xing 2,450 2,450 Weiguang Song 1,050 1,050 $ 149,811 $ 1,788,710 |
Schedule of due to related parties | Amount due to related parties consisted of the following as of the periods indicated: December 31, Name of related parties 2018 2017 Harbin Jiarun Pharmacy Co., Ltd $ 1,211 $ 7 Heilongjiang Province Runjia Medical Equipment Co., Ltd 1,614 6,014 Jiarun Super Market Co., Ltd. 39,042 — Harbin Qi-run Pharmacy Co., Ltd 17,280 17,972 Junsheng Zhang 50,000 50,000 $ 109,147 $ 73,993 |
Schedule of purchases from related party transactions | Purchase of medicine and medical material from related parties consisted of the following for the periods indicated: For the Year ended December 31, Name of related parties 2018 2017 Harbin Jiarun Pharmacy Co., Ltd $ 229,498 $ 192,259 Heilongjiang Province Runjia Medical Equipment Co., Ltd 5,965 6,463 Harbin Qi-run Pharmacy Co., Ltd 28,770 30,443 $ 264,233 $ 229,165 |
BASIC AND DILUTED EARNINGS PE_2
BASIC AND DILUTED EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings per share | The reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for income from continuing operations is shown as follows: December 31 2018 2017 Numerator Net income available to common stockholders $ 1,992,970 $ 4,646,890 Denominator: Basic and diluted weighted-average number of shares outstanding 14,948,397 14,311,932 Net income per share: Basic and diluted $ 0.1333 $ 0.3247 |
CONTINGENCIES AND COMMITMENT (T
CONTINGENCIES AND COMMITMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future annual minimum lease payments for operating leases | Future annual minimum lease payments, for non-cancellable operating leases are as follows: Year ending December 31 Amount $ 2019 123,105 2020 129,284 2021 134,579 2022 105,441 492,409 |
DESCRIPTION OF BUSINESS AND O_2
DESCRIPTION OF BUSINESS AND ORGANIZATION (Details Textual) | Feb. 28, 2006 | Jul. 31, 2013 | Dec. 31, 2013 | Sep. 17, 2012 |
Subsidiary, Runteng Medical Group Co., Ltd [Member] | ||||
Business And Organization [Line Items] | ||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |||
JHCL [Member] | ||||
Business And Organization [Line Items] | ||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |||
Junsheng Zhang [Member] | ||||
Business And Organization [Line Items] | ||||
Attribution of accumulated retained earnings of Jiarun, Percentage | 70.00% | |||
Noncontrolling Interest, Ownership Percentage by Parent | 30.00% | |||
Subsidiary, Runteng Medical Group Co., Ltd [Member] | JHCL [Member] | ||||
Business And Organization [Line Items] | ||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 100.00% | |||
Runteng [Member] | ||||
Business And Organization [Line Items] | ||||
Joint venture investment in Jiarun, Ownership Percentage in Harbin Jiarun Hospital Co., Ltd | 70.00% | |||
Attribution of accumulated retained earnings of Jiarun, Percentage | 30.00% |
SUMMARIES OF SIGNIFICANT ACCO_4
SUMMARIES OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
China, Yuan Renminbi | Assets And Liabilities [Member] | ||
Foreign currency translation | 6.8776 | 6.5074 |
Description of foreign currency translation | period end exchange rate | period end exchange rate |
Hong Kong, Dollars | Assets And Liabilities [Member] | ||
Foreign currency translation | 7.8317 | 7.8152 |
Description of foreign currency translation | period end exchange rate | period end exchange rate |
Revenue And Expenses [Member] | China, Yuan Renminbi | ||
Foreign currency translation | 6.6193 | 6.7578 |
Description of foreign currency translation | period average | period average |
Revenue And Expenses [Member] | Hong Kong, Dollars | ||
Foreign currency translation | 7.8375 | 7.7926 |
Description of foreign currency translation | period average | period average |
SUMMARIES OF SIGNIFICANT ACCO_5
SUMMARIES OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 12 Months Ended |
Dec. 31, 2018 | |
Building And Building Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Building And Building Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 40 years |
Medical Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Medical Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 15 years |
Transportation Instrument [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Transportation Instrument [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Office Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Office Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Electronic Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Electronic Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
SUMMARIES OF SIGNIFICANT ACCO_6
SUMMARIES OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - Number | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
People's Republic of China [Member] | ||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | 25.00% | |
Sales Revenue, Net [Member] | ||
Concentration Risk, Percentage | 10.00% | 10.00% |
Accounts Receivable [Member] | ||
Concentration Risk, Percentage | 5.00% | 5.00% |
Number of customers | 3 | 2 |
ACCOUNTS RECEIVABLE, NET (Detai
ACCOUNTS RECEIVABLE, NET (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Receivables, Net, Current [Abstract] | ||
Accounts receivable | $ 8,237,369 | $ 5,704,697 |
Less: allowance for doubtful debts | 24,354 | 25,740 |
Accounts receivable, net | $ 8,213,015 | $ 5,678,957 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory [Line Items] | ||
Total inventories | $ 1,163,845 | $ 936,549 |
Western Medicine [Member] | ||
Inventory [Line Items] | ||
Total inventories | 809,499 | 662,079 |
Chinese Herbal Medicine [Member] | ||
Inventory [Line Items] | ||
Total inventories | 29,796 | 29,499 |
Medical material [Member] | ||
Inventory [Line Items] | ||
Total inventories | 321,477 | 243,445 |
Other material [Member] | ||
Inventory [Line Items] | ||
Total inventories | $ 3,073 | $ 1,526 |
PREPAYMENT (Details)
PREPAYMENT (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule Of Prepaid Expenses Current [Line Items] | ||
Total prepayment | $ 1,826,214 | $ 900,680 |
Deposists On Medical Equipment [Member] | ||
Schedule Of Prepaid Expenses Current [Line Items] | ||
Total prepayment | 1,297,411 | 491,822 |
Heating Fees [Member] | ||
Schedule Of Prepaid Expenses Current [Line Items] | ||
Total prepayment | 135,035 | 117,188 |
Others [Member] | ||
Schedule Of Prepaid Expenses Current [Line Items] | ||
Total prepayment | $ 393,768 | $ 291,670 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Total fixed assets at cost | $ 42,615,222 | $ 29,867,414 |
Accumulated depreciation | (4,891,253) | (3,715,784) |
Total fixed assets, net | 37,723,969 | 26,151,630 |
Transportation Instrument [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets at cost | 1,000,303 | 871,653 |
Medical Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets at cost | 15,001,892 | 11,833,334 |
Electronic Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets at cost | 1,649,229 | 1,496,461 |
Office Equipment and Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets at cost | 813,635 | 130,524 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets at cost | 24,011,797 | 15,389,204 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets at cost | $ 138,366 | $ 146,238 |
PROPERTY AND EQUIPMENT (Detai_2
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 1,764,765 | $ 1,268,253 |
LONG TERM DEFERRED EXPENSES (De
LONG TERM DEFERRED EXPENSES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred Expenses [Abstract] | ||
Deferred expenses | $ 291,104 | $ 69,334 |
Long-term deferred expenses | 1,238,455 | 106,411 |
Consulting fees | 68,193 | 66,764 |
Decoration fees | $ 149,105 | $ 0 |
CAPITAL LEASE OBLIGATIONS AND_3
CAPITAL LEASE OBLIGATIONS AND DEPOSIT FOR CAPITAL LEASES (Details) | Dec. 31, 2018USD ($) |
Leases, Capital [Abstract] | |
2019 | $ 2,161,977 |
2020 | 1,122,713 |
2021 | 349,522 |
Thereafter | 17,907,974 |
Total | $ 21,542,186 |
CAPITAL LEASE OBLIGATIONS AND_4
CAPITAL LEASE OBLIGATIONS AND DEPOSIT FOR CAPITAL LEASES (Details Narrative) | 1 Months Ended | 12 Months Ended | ||
Sep. 01, 2014USD ($) | Jun. 05, 2013CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Schedule Of Capital Lease Obligations and Deposit for Capital Leases [Line Items] | ||||
Capital Lease Financing Fees | $ 1,178,074 | $ 1,286,306 | ||
Harbin Baiyi Real Estate Development Co., Ltd [Member] | ||||
Schedule Of Capital Lease Obligations and Deposit for Capital Leases [Line Items] | ||||
Lease Agreement Annual Payments | $ 1,144,913 | ¥ 7,000,000 | ||
Captial Lease Obligation Deposits (Financial Leasing Premium Payments) | ¥ | ¥ 3,000,000 | |||
Term of Capital Lease | 30 years | 30 years | ||
Capital Lease Obligation Interest Rate Percentage | 6.55% | 6.55% | ||
Capital Lease Future Minimum Payments Fair Value Of Assets | $ 15,721,295 | |||
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments | $ 15,185,032 |
SHORT-TERM BANK LOANS (Details
SHORT-TERM BANK LOANS (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Disclosure [Abstract] | ||
Short-term Debt, Percentage Bearing Fixed Interest Rate | 6.09% | |
Interest expense | $ 2,150 | $ 23,956 |
Short-term Debt | $ 445,647 |
NON-CONTROLLING INTERESTS (Deta
NON-CONTROLLING INTERESTS (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Noncontrolling Interest [Line Items] | ||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | $ 556,333 | $ 2,286,524 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 1,103,381 | 5,339,425 |
Stockholders' Equity Attributable to Noncontrolling Interest | $ 7,895,376 | $ 7,339,043 |
Jiarun [Member] | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling Interest, Ownership Percentage by Parent | 70.00% | 70.00% |
REVENUE (Details)
REVENUE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Product Information [Line Items] | ||
Revenue | $ 28,402,759 | $ 24,147,957 |
Revenue, Net | 28,402,759 | |
Product [Member] | ||
Product Information [Line Items] | ||
Revenue | 11,183,130 | 10,889,753 |
Product [Member] | Western Medicine [Member] | ||
Product Information [Line Items] | ||
Revenue | 8,613,196 | 8,630,919 |
Product [Member] | Chinese Medicine [Member] | ||
Product Information [Line Items] | ||
Revenue | 1,753,625 | 1,782,552 |
Product [Member] | Herbal Medicine [Member] | ||
Product Information [Line Items] | ||
Revenue | 816,309 | 476,282 |
Service [Member] | ||
Product Information [Line Items] | ||
Revenue | 17,219,629 | 13,258,204 |
Service [Member] | Medical Consulting [Member] | ||
Product Information [Line Items] | ||
Revenue | 8,720,373 | 7,110,475 |
Service [Member] | Medical Treatment [Member] | ||
Product Information [Line Items] | ||
Revenue | 8,160,483 | 5,736,799 |
Service [Member] | Others [Member] | ||
Product Information [Line Items] | ||
Revenue | $ 392,773 | $ 410,930 |
INCOME TAX EXPENSE (Details)
INCOME TAX EXPENSE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income tax expense | $ 2,765,650 | $ 2,528 |
US | ||
Loss before income tax | (222,412) | |
Tax rate | (46,707) | |
Disallowed tax losses | 46,707 | |
Income tax expense | ||
Hong Kong | ||
Loss before income tax | (672) | |
Tax rate | (111) | |
Disallowed tax losses | 111 | |
Income tax expense |
INCOME TAX EXPENSE (Details 1)
INCOME TAX EXPENSE (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Tax expense from continuing operation | $ 2,765,650 | $ 2,528 |
Reconciliation: | ||
Tax expense from continuing operation | 2,765,650 | $ 2,528 |
People's Republic of China [Member] | ||
Income tax expense | 55,846 | |
Income tax: 2018 deferred | 1,391,702 | |
Income tax: prior period | 1,318,102 | |
Tax expense from continuing operation | 2,765,650 | |
Reconciliation: | ||
Income tax at statutory rate | 1,447,548 | |
Expense on prior period adjustment | 1,318,102 | |
Tax expense from continuing operation | $ 2,765,650 |
INCOME TAX EXPENSE (Details Tex
INCOME TAX EXPENSE (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Expense [Line Items] | ||
Effective Income Tax Rate Reconciliation, Percent | 25.00% | |
Deferred income tax | $ 1,391,702 | |
Descriptioin of purchased eligible equipment | According to the PRC “Notice on Preferential Corporate Income Tax (CIT) Treatment for Eligible Equipment or Machinery (Cai Shui [2018] No. 54)”, a 100% immediate tax deduction for CIT purposes is allowed on the condition that the unit price of each item of equipment or machinery is individually less than RMB5 million. Depreciation for tax purposes is not required. Basis differences between tax and GAAP for depreciation of property and equipment exist because in 2018 the Company purchased Eligible Equipment for RMB 36.83million. | |
People's Republic of China [Member] | ||
Income Tax Expense [Line Items] | ||
Income tax: 2018 deferred | $ 1,391,702 | |
Income tax: prior period | $ 1,318,102 | |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | 25.00% | |
Preferential rate | 2.50% | |
HONG KONG | ||
Income Tax Expense [Line Items] | ||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | 16.50% | |
UNITED STATES | ||
Income Tax Expense [Line Items] | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | ||
Amount due from related parties | $ 149,811 | $ 1,788,710 |
Harbin Baiyi Real Estate Development Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Amount due from related parties | 99,811 | 1,738,710 |
Junsheng Zhang [Member] | ||
Related Party Transaction [Line Items] | ||
Amount due from related parties | 46,500 | 46,500 |
Yanhua Xing [Member] | ||
Related Party Transaction [Line Items] | ||
Amount due from related parties | 2,450 | 2,450 |
Weiguang Song [Member] | ||
Related Party Transaction [Line Items] | ||
Amount due from related parties | $ 1,050 | $ 1,050 |
RELATED PARTY TRANSACTIONS (D_2
RELATED PARTY TRANSACTIONS (Details 1) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | ||
Amount due to related parties | $ 109,147 | $ 73,993 |
Harbin Jiarun Pharmacy Co Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Amount due to related parties | 1,211 | 7 |
Heilongjiang Province Runjia Medical Equipment Company Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Amount due to related parties | 1,614 | 6,014 |
Jiarun Super Market Co Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Amount due to related parties | 39,042 | |
Harbin Qirun Pharmacy Co Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Amount due to related parties | 17,280 | 17,972 |
Junsheng Zhang [Member] | ||
Related Party Transaction [Line Items] | ||
Amount due to related parties | $ 50,000 | $ 50,000 |
RELATED PARTY TRANSACTIONS (D_3
RELATED PARTY TRANSACTIONS (Details 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | ||
Related party transaction, purchases from related party | $ 264,233 | $ 229,165 |
Harbin Jiarun Pharmacy Co Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Related party transaction, purchases from related party | 229,498 | 192,259 |
Heilongjiang Province Runjia Medical Equipment Company Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Related party transaction, purchases from related party | 5,965 | 6,463 |
Harbin Qirun Pharmacy Co Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Related party transaction, purchases from related party | $ 28,770 | $ 30,443 |
RELATED PARTY TRANSACTIONS (D_4
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | ||
Prepaid Maintenance Cost | $ 99,811 | |
Harbin Baiyi Real Estate Development Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Deposits for capital leases, ended of the period | 436,199 | $ 461,014 |
Capital lease obligations, ended of the period | $ 12,817,373 | $ 14,632,836 |
BASIC AND DILUTED EARNINGS PE_3
BASIC AND DILUTED EARNINGS PER SHARE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | ||
Net income available to common stockholders | $ 1,992,970 | $ 4,646,890 |
Denominator: | ||
Basic and diluted weighted-average number of shares outstanding | 14,948,397 | 14,311,932 |
Net income per share: | ||
Basic and diluted | $ 0.1333 | $ 0.3247 |
CONTINGENCIES AND COMMITMENT (D
CONTINGENCIES AND COMMITMENT (Details) | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019 | $ 123,105 |
2020 | 129,284 |
2021 | 134,579 |
2022 | 105,441 |
Operating Leases, Future Minimum Payments Due | $ 492,409 |
CONTINGENCIES AND COMMITMENT _2
CONTINGENCIES AND COMMITMENT (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Aug. 31, 2017 | Aug. 17, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |||||
Loss Contingency, Damages Sought, Value | $ 0 | ||||
Loss Contingency, Estimate of Possible Loss | $ 0 | $ 0 | $ 0 | ||
Payments for Lease Deposits | $ 0 | ||||
Operating Lease, Expense | $ 68,128 | $ 36,881 | |||
Lessee, Operating Lease, Term of Contract | 5 years | 5 years | 5 years | ||
Operating Leases, Rent Expense | $ 109,326 | $ 26,636 |
COMMON STOCK (Details Narrative
COMMON STOCK (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Proceeds from Issuance of Common Stock | $ 140,000 | $ 903,153 |
Restricted Stock [Member] | ||
Stock Issued During Period, Shares, New Issues | 140,000 | |
Proceeds from Issuance of Common Stock | $ 140,000 |