Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 30, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Fuda Group (USA) Corp | |
Entity Central Index Key | 1,623,013 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 105,954,309 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 10,124,617 | $ 18,178,550 |
Accounts receivable, net | 4,925,067 | 475,041 |
Inventory | 30,982 | 0 |
Prepaid rent | 112,041 | 28,254 |
Security deposits to suppliers | 6,519,049 | 996,166 |
Other receivables | 6,404 | 6,380 |
Total Current Assets | 21,718,160 | 19,684,391 |
Land, property & equipment (net) | 49,660,083 | 49,478,802 |
Other assets | 46,404 | 46,233 |
Total Assets | 71,424,647 | 69,209,426 |
Current Liabilities | ||
Accounts payable and accrued expenses | 588,602 | 29,014 |
Taxes payable | 0 | 0 |
Due to related parties | 1,311,287 | 3,631,621 |
Other payables | 0 | 0 |
Trade financing loans | 0 | 0 |
Advances from customers | 6,187 | 6,164 |
Total Current Liabilities | 1,906,076 | 3,666,799 |
Total Liabilities | $ 1,906,076 | $ 3,666,799 |
Commitments & contingencies | ||
Stockholders' Equity | ||
Common stock, $0.0001 par value, 480,000,000 shares authorized; 105,954,309 shares at March 31, 2016 and December 31, 2015, respectively | $ 10,595 | $ 10,595 |
Additional paid-in capital | 9,579,682 | 9,579,682 |
Accumulated other comprehensive income | (2,909,383) | (3,188,494) |
Statutory reserve | 6,372,690 | 5,990,116 |
Accumulated earnings (unrestricted) | 56,464,987 | 53,150,728 |
Total stockholders' equity | 69,518,571 | 65,542,627 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 71,424,647 | $ 69,209,426 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 480,000,000 | 480,000,000 |
Common Stock, Shares, Issued | 105,954,309 | 105,954,309 |
Common Stock, Shares, Outstanding | 105,954,309 | 105,954,309 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Sales | ||
Affiliated Entities | $ 0 | $ 737,261 |
Third parties | 5,085,375 | 6,585,304 |
Total sales | 5,085,375 | 7,322,565 |
Cost of sales | ||
Affiliated Entities | 0 | 55,853 |
Third parties | 1,020,255 | 3,284,570 |
Total cost of sales | 1,020,255 | 3,340,423 |
Gross margin | 4,065,120 | 3,982,142 |
Operating expenses | ||
Selling, general & administrative expenses | 368,290 | 160,051 |
Total operating expenses | 368,290 | 160,051 |
Income (Loss) from operation | 3,696,830 | 3,822,091 |
Other income (expenses) | ||
Interest income (expenses), net | 0 | (1,353) |
Government rebate | 0 | 34,438 |
Other income | 3 | 0 |
Total other income (expenses) | 3 | 33,085 |
Income before income tax | 3,696,833 | 3,855,176 |
Income tax | 0 | 0 |
Net income | 3,696,833 | 3,855,176 |
Foreign currency translation adjustment | 279,111 | 236,993 |
Comprehensive income | $ 3,975,944 | $ 4,092,169 |
Common Shares Outstanding, basic and diluted | 105,954,309 | 58,213,167 |
Net income per share Basic and diluted | $ 0.03 | $ 0.07 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities | ||
Net income | $ 3,696,833 | $ 3,855,176 |
Adjustments to reconcile net income to net cash provided by or used in operating activities: | ||
Bad debt expense | 0 | 0 |
Shares to be used and issued for compensation | 0 | 0 |
Depreciation and amortization | 1,779 | 1,057 |
Expenses paid by stockholder and contributed as capital | 0 | 619 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (4,399,391) | (1,497,088) |
Inventory | (30,622) | (544,062) |
Prepaid rent | (81,298) | 19,078 |
Other receivables | 319 | 345,593 |
Security deposits to suppliers | (5,416,385) | 2,176,636 |
Accounts payable and accrued expenses | 551,579 | 5,979,196 |
Accounts payable-related parties | 0 | (8,366,913) |
Taxes payable | 0 | 0 |
Other payables | 0 | 598,897 |
Increase/(Decrease) in security deposit Advances from customers | (309) | 0 |
Other assets | 0 | 0 |
Net cash (used) provided by operating activities | (5,677,495) | 2,568,189 |
Cash flows from financing activities | ||
Capital withdrawal from owners | 0 | 0 |
Proceeds from issuance of common stock | 0 | 0 |
Proceeds/(Repayment) to related party, net | (2,447,994) | 1,894,577 |
Proceeds/(Repayments) from trade financing loans, net | 0 | (1,891,048) |
Net cash used by financing activities | (2,447,994) | 3,529 |
Cash flows from investing activities | ||
Purchase of land, property and equipment | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Effect of exchange rate changes | 71,556 | 12,919 |
NET INCREASE (DECREASE) IN CASH | (8,053,933) | 2,584,637 |
CASH | ||
Beginning of period | 18,178,550 | 466 |
End of period | 10,124,617 | 2,585,103 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION CASH PAID FOR: | ||
Interest | 0 | 1,363 |
Income Taxes | $ 0 | $ 0 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. ORGANIZATION AND DESCRIPTION OF BUSINESS Fuda Group (USA) Corporation (“Fuda USA”) was incorporated on September 25, 2014 under the laws of the state of Delaware to engage in any lawful corporate undertaking, including, but not limited to, selected mergers and acquisitions. On September 28, 2015, Fuda USA entered into stock-for-stock acquisition agreements with each of Fuda Gold (UK) Limited (“Fuda UK”) and Marvel Investment Corporation Limited (“Marvel”). As a result of the Acquisitions, each of Fuda UK and Marvel has been acquired by Fuda USA, and now each has become a wholly owned subsidiary of Fuda USA. Fuda USA, as the surviving entity from the Acquisitions, has taken over the respective operations and business plans of each of both Fuda UK and Marvel (and also of Liaoning Fuda by virtue of Marvel’s ownership of Liaoning Fuda). Refer to “Principal of Consolidation” under Note 2 Summary of Significant Accounting Policies Fuda UK a private company organized under the laws of England and Wales was incorporated in May 20, 2015. Since its inception, Fuda UK has conducted minimal business operations but has started to purchase gold stones and powder and wholesale trading of gold bars. Fuda UK has executed a cooperative operation agreement to filter and sort gold sands or gold dust from the gold mine tailings and to sell the goods under a profit sharing ratio. Marvel Investment Corporation Limited was incorporated on October 28, 2009 under the laws of Hong Kong, PRC. The Company was established to engage in any lawful corporate undertaking, including, but not limited to, selected mergers and acquisitions. Marvel has conducted limited business operations in trading graphite and fluorite. On February 28, 2015, Marvel entered into an Equity Interest Transfer Agreement with Liaoning Fuda Mining Co., Ltd (“Liaoning Fuda”) whereas Marvel agreed to acquire 100 Liaoning Fuda was established in August 2012 in Dandong City, Liaoning Province, China (“PRC”) with authorized capital of 60 million Chinese Yuan. Liaoning Fuda is a natural resource trading company that consists of raw blocks, stone carvings, slabs, pavers and wall claddings. Fuda USA and its subsidiaries Marvel, Fuda UK, and Liaoning Fuda shall be collectively known as the “Company”. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited financial statements and related notes have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). This basis of accounting involves the application of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when incurred. The Company’s financial statements are expressed in U.S. dollars. Interim Financial Information The accompanying consolidated balance sheet as of December 31, 2015, which has been derived from the Company's audited financial statements as of that date, and the unaudited condensed financial information of the Company as of March 31, 2016 and for the three months ended March 31, 2016, has been prepared in accordance with the instructions to Form 10-Q and Article8-03 of Regulation S-X for interim financial information. In the opinion of management, such financial information includes all adjustments considered necessary for a fair presentation of the Company's financial position at such date and the operating results and cash flows for such periods. Operating results for the interim period ended March 31, 2016 are not necessarily indicative of the results that may be expected for the entire year. Certain information and footnote disclosure normally included in financial statements in accordance with generally accepted accounting principles have been omitted pursuant to the rules of the United States Securities and Exchange Commission ("SEC"). These unaudited financial statements should be read in conjunction with our audited financial statements and accompanying notes included in the Company's Annual Report on Form 10-K/A for the year ended December 31, 2015 filed on April 22, 2016. Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported net income or losses. The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. Acquisition of Fuda UK and Marvel by Fuda USA The acquisition was accounted under US GAAP as a business combination under reverse acquisition with Fuda UK and Marvel being the acquirers and Fuda USA being the acquiree as shares were issued by the public entity to acquire an interest in a larger privately owned entity; thereafter the shareholders of the privately owned entity became the controlling interest of the public entity. The consolidated financial statements have been presented at historical costs and on a retroactive basis to reflect the capital structure of Fuda UK and Marvel. The share exchange transaction was completed and effective on September 28, 2015 and Fuda UK and Marvel became subsidiaries of Fuda USA. Acquisition of Liaoning Fuda by Marvel The acquisition was accounted under US GAAP as a business combination under common control with Marvel being the acquirer as both entities were owned by the same shareholder. The consolidated financial statements have been presented at historical costs and on a retroactive basis. No purchase price or reverse merger accounting methods were used. The business combination transaction was completed and effective on June 30, 2015 and Liaoning became a subsidiary of Marvel. The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the amount of revenues and expenses during the reporting periods. Actual results could differ materially from those results. The Company follows the provisions of the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) 220 “Reporting Comprehensive Income”, and establishes standards for the reporting and display of comprehensive income, its components and accumulated balances in a full set of general purpose financial statements. The Company’s comprehensive income (loss) consist of net income (loss) and foreign currency translation adjustments. 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 to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, 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 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. - Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. - Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. There were no assets or liabilities measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820 as of the balance sheet date. The reporting currency of Fuda Group (USA) Corporation is the US Dollar (“US$”). The functional currency of Liaoning Fuda is the Chinese Renminbi (“RMB”) and its local currency is Chinese Renminbi (“RMB”). The functional currency of Marvel is the Chinese Renminbi (“RMB”) and its local currency is Hong Kong Dollar (“HK$”). The functional currency of Fuda UK is Chinese Renminbi (“RMB”) and its local currency is British Pounds (“GBP”). Transactions in currencies other than the entity’s functional currency are recorded at the rates of exchange prevailing on the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing at the end of the reporting periods. Exchange differences arising on the settlement of monetary items and on translation of monetary items at period-end are included in income statement of the period. For the purpose of presenting these financial statements, the Company’s assets and liabilities are expressed in US$ at the exchange rate on the balance sheet date, stockholder’s equity accounts are translated at historical rates, and income and expense items are translated at the weighted average exchange rate during the period. The resulting translation adjustments are reported under accumulated other comprehensive income in the stockholder’s equity section of the balance sheets. March 31, March 31, December 31, RMB to US$ 2016 2014 2015 Period end spot rate 0.15468 0.16369 0.15411 Average periodic rate 0.15288 0.16275 N/A The Company considers highly-liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents. Accounts receivable are stated at the amount the Company expects to collect from outstanding balances. The Company provides for probable uncollectible amounts through a charge to earnings and a credit to an allowance for doubtful accounts based on its assessment of the current status of individual accounts. Balances that are still outstanding after the Company has used reasonable collection efforts are written off through a charge to the allowance for doubtful accounts and a credit to accounts receivable. Bad debt expenses were $nil and $nil for the three months ended March 31, 2016 and 2015, respectively. Inventories, which are primarily comprised of goods for sale, are stated at the lower of cost or net realizable value, using the first-in first-out (FIFO) method. The Company evaluates the need for reserves associated with obsolete, slow-moving and non-salable inventory by reviewing net realizable values on a periodic basis. Machinery 5 Office equipment 5 Motor Vehicle 10 Expenditures for repairs and maintenance, which do not improve or extend the expected useful lives of the assets, are expensed as incurred while major replacements and improvements are capitalized. Long-lived assets and certain identifiable intangibles are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. Security deposits are paid by Liaoning Fuda to its suppliers in order to ensure ample, constant supply and prompt delivery of goods Security deposits are paid by Fuda UK to its suppliers to establish a purchase commitment. The Company generally recognizes product sales revenue when the significant risks and rewards of ownership have been transferred pursuant to PRC law, including such factors as when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, sales and value-added tax laws have been complied with, and collectability is reasonably assured. Liaoning Fuda Direct Domestic Sales The Company recognizes product sales revenue when customers pick up and pay for the goods at once. The customer is responsible for losses when occurred. The Company sets out the terms and conditions of the sales contract and deals directly with customers. Liaoning Fuda Direct International Sales The Company recognizes product sales revenue when bill of lading is received from shipping company. Although the title does not formally transfer until the goods have reach its destination port, the customer has a binding agreement for the goods; and is obligated to purchase them because a deposit has been made by the customer on the purchased goods. The Company is responsible for losses in case of a shipping issue, but in all cases the Company has purchased insurance to cover for such loss. The Company sets out the terms and conditions of the sales contract and deals directly with customers. Liaoning Fuda Agency International Sales The Company recognizes product sales revenue when bill of lading in received from shipping company although the title does not transfer until the goods have reach its destination port. The Agent is responsible for losses when occurred which the Agent has a blanket insurance to cover for such loss. The Agent would prepare the terms and conditions of the sales contract and deals directly with customers. The Company sets out the terms and conditions of the sales contract and deals directly with customers. Marvel Sales The Company derives its revenues from trading graphite and fluorite. The Company recognizes sales of graphite and fluorite revenue when the goods are delivered to destination designated by the customer. Customer is allowed to return the goods or cancel the order subject to a penalty. The Company sets out the terms and conditions of the sales contract and deals directly with customers. Fuda UK Sales The Company derives its revenues from trading gold stones, gold sand, or gold bars. The Company recognizes sales of gold stones, gold sand, or gold bars revenue when the goods are delivered to destination designated by the customer. Sales price of the goods are to be negotiated between Fuda UK and the customer, and accepted by the customer after a third party inspection report for quality and weight is obtained prior to arrival at the destination of the customer. In case of finding irregularity or discrepancy in weight or purity of the goods, the customer is allowed to claim from Fuda UK to deduct the corresponding amount and any cost within 7 days upon receipt of the actual goods. The Company sets out the terms and conditions of the sales contract and deals directly with customers. Fuda UK Cooperative Operation The Company derives its revenues from trading gold sands or gold dust filtered and sorted from the gold mine tailings owned by the Chinese government under a cooperative profit sharing agreement. The cooperative agreement indicated the profit sharing is based on the gross sales price for the products sold and the ratios are to be 25 35 40 40 As of March 31, 2016, the Company has not generated any revenues from such operation. The Company recognizes nonmonetary transactions in accordance to ASC 845-10-30 which in general, that nonmonetary transactions should be based on the fair values of the assets (or services) involved, which is the same basis as that used in monetary transactions. Thus, the cost of a nonmonetary asset acquired in exchange for another nonmonetary asset is the fair value of the asset surrendered to obtain it, and a gain or loss shall be recognized on the exchange. The fair value of the asset received shall be used to measure the cost if it is more clearly evident than the fair value of the asset surrendered. Similarly, a nonmonetary asset received in a nonreciprocal transfer shall be recorded at the fair value of the asset received. A transfer of a nonmonetary asset to a stockholder or to another entity in a nonreciprocal transfer shall be recorded at the fair value of the asset transferred and a gain or loss shall be recognized on the disposition of the asset.” The Company is subject to Value Added Taxes (“VAT”) at a rate of 17 The Company expenses advertising costs as incurred and are included in selling expenses. The Company recognizes government grants that are non-operating in nature and with no further conditions to be met as other income when received. The Company recognizes government grants that contain certain operating conditions as liabilities when received, and as a reduction of the related costs for which the grants are intended to compensate when the conditions are met. The government subsidies or rebates received by the Company as other income was an incentive to the Company to support export trade were $nil and $ 34,438 The Company recognizes stock based compensation in accordance to ASC718 which requires companies to measure the compensation costs of share-based compensation arrangements based on the grant-date fair value and recognize the costs in the financial statements over the period during which employees are required to provide services. Share-based compensation arrangements include stock options, restricted share plans, performance-based awards, share appreciation rights and employee share purchase plans. As such, compensation cost is measured on the date of grant at their fair value. Such compensation amounts, if any, are amortized over the respective vesting periods of the option grant. Equity instruments (“instruments”) issued to other than employees are recorded on the basis of the fair value of the instruments, as required by ASC No. 718. FASB ASC No. 505, Equity Based Payments to Non-Employees, defines the measurement date and recognition period for such instruments. In general, the measurement date is when either (a) a performance commitment, as defined, is reached or (b) the earlier of (i) the non-employee performance is complete or (ii) the instruments are vested. The measured value related to the instruments is recognized over a period based on the facts and circumstances of each particular grant as defined in the FASB ASC. Refer to Footnote 11 Stock Based Compensation for additional information. The Company accounts for income taxes using an asset and liability approach which allows for the recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility is uncertain. Under ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The evaluation of a tax position is a two-step process. The first step is to determine whether it is more-likely-than-not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigations based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the year incurred. The standard, “Disclosures about Segments of an Enterprise and Related Information,” codified with ASC-280, requires certain financial and supplementary information to be disclosed on an annual and interim basis for each reportable segment of an enterprise. The Company believes that it operates in one business segment (marketing and sales) and in one geographical segment (China), as all of the Company’s current operations are carried in China. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory, which modifies existing requirements regarding measuring inventory at the lower of cost or market. Under existing standards, the market amount requires consideration of replacement cost, net realizable value (NRV), and NRV less an approximately normal profit margin. The new ASU replaces market with NRV, defined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This eliminates the need to determine and consider replacement cost or NRV less an approximately normal profit margin when measuring inventory. The amendments are effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter. Early application is permitted. The Company is currently assessing this ASU’s impacts on the Company’s consolidated results of operations and financial condition. In February 2015, FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. The new consolidation standard changes the way reporting enterprises evaluate whether (a) they should consolidate limited partnerships and similar entities, (b) fees paid to a decision maker or service provider are variable interests in a VIE, and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. The guidance is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2015. Early adoption is allowed, including early adoption in an interim period. A reporting entity may apply a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption or may apply the amendments retrospectively. The Company is currently assessing the impact of the adoption of this guidance on the consolidated financial statements. The Company believes that there were no other accounting standards recently issued that had or are expected to have a material impact on our financial position or results of operations. |
ACCOUNTS RECEIVABLES
ACCOUNTS RECEIVABLES | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 3. ACCOUNTS RECEIVABLES Accounts receivables consist of the following: March 31, December 31, 2016 2015 Accounts receivables $ 4,925,067 $ 736,888 Less: allowance for doubtful accounts - (261,847) Net $ 4,925,067 $ 475,041 Bad debt expenses were $nil and $nil for the three months ended March 31, 2016 and 2015, respectively. |
SECURITY DEPOSITS TO SUPPLIERS
SECURITY DEPOSITS TO SUPPLIERS | 3 Months Ended |
Mar. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Security Deposits To Suppliers [Text Block] | 4. SECURITY DEPOSITS TO SUPPLIERS Security deposits paid by Liaoning Fuda were to maintain its relationship with the suppliers in order to ensure ample, constant supply and prompt delivery of goods, Security deposits paid by Fuda UK was a purchase commitment upon execution of the contract March 31, December 31, 2016 2015 Liaoning Fuda - Supplier A $ 1,624,155 $ - Liaoning Fuda - Supplier B 1,469,474 - Liaoning Fuda - Supplier C 1,426,936 - Fuda UK - Supplier D 1,998,484 996,166 Total $ 6,519,049 $ 996,166 |
LAND, PROPERTY & EQUIPMENT
LAND, PROPERTY & EQUIPMENT | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 5. LAND, PROPERTY & EQUIPMENT Land, property & equipment consist of the following: March 31, December 31, 2016 2015 Depreciable assets Office equipment $ 8,312 $ 8,281 Motor vehicle 14,439 14,386 Machinery 20,251 20,154 Total 43,002 42,821 Less: accumulated depreciation (11,899) (10,049) Net $ 31,103 $ 32,772 Non-depricable assets Land 49,628,980 49,446,030 Total $ 49,660,083 $ 49,478,802 The depreciation expense charged to general and administrative expenses were $ 1,779 1,057 The difference in land, motor vehicle, machinery, and office equipment value is due to currency exchange rate fluctuations. |
OTHER ASSETS
OTHER ASSETS | 3 Months Ended |
Mar. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets Disclosure [Text Block] | 6. OTHER ASSETS Other assets consist of the following: March 31, December 31, 2016 2015 Rent Security Deposits $ 46,404 $ 46,233 Total $ 46,404 $ 46,233 |
TRADE FINANCING LOANS
TRADE FINANCING LOANS | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | TRADE FINANCING LOANS The Company has executed short term accounts receivables factoring agreements with the banks with maturity from one to three months. The bank would advance the Company a contracted discount percentage of 70 85 2 4 The outstanding amount of trade financing loans were $nil and $nil as of March 31, 2016 and December 31, 2015, respectively. The shareholders of the Company have repaid the outstanding trade financing loans on behalf of the Company which is included in Due to related parties. The discounts and interest expenses were $nil and $ 1,363 |
ADVANCES FROM CUSTOMERS
ADVANCES FROM CUSTOMERS | 3 Months Ended |
Mar. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Advances From Customers Disclosure [Text Block] | 8. ADVANCES FROM CUSTOMERS Advances from customers consist of amounts received from a customer as a security deposit for a machinery equipment sales commitment contract. The outstanding amount of advances from customers were $ 6,187 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 9. RELATED PARTY TRANSACTIONS March 31, December 31, 2016 2015 Receivables/(Payables) Mr. Tan Lin $ - $ (1,227,280) Mr. Wu Xiao Bin (714,904) (778,449) Mr. Yang Yuan Xi (541,385) (539,389) Mr. Wu Zhong Chen (541,385) (539,389) Ms. Lynn Lee 486,387 (547,114) Total Receivables/(Payables) $ (1,311,287) $ (3,631,621) The relationships of the related parties above as follows: Name Relationship Mr. Tan Lin Shareholder and General Manager of Fuda UK Mr. Wu Xiao Bing CEO, Director, Majority Shareholder of the Company Mr. Yang Yuan Xi Legal Representative of Liaoning Fuda Mr. Wu Zhong Chen Father of Mr Wu Xiao Bin, Shareholder of the Company Ms. Lynn Lee Officer of the Company The amounts above are advances received from related parties from time to time as working capital to fund for its operations. These advances are due on demand, unsecured and non-interest bearing. The Company mistakenly paid Ms. Lynn Lee in the amount of $ 486,387 Mr. Xiaobin Wu, the Company’s officer and director, is the Managing Director of Dandong Fuda Investment Co., Ltd (“Fuda Investment”) and Winner International Industries Ltd., (“Winner International”), each of these entities also holds a small (under 5 In 2014, the Company acquired land from Fuda Investment for RMB 127,424,700 65,965,000 The Company recognized the land purchased (assets transferred) at historical cost because the transactions were not arm-length transactions as they were purchases from affiliated entities so therefore no gain or loss were recognized on the transfer. The Company would review the historical cost of the land to evaluate if there is an impairment loss to be recognized. The barter trade transactions were recognized as a land asset and as accounts payable to the sellers. The revenues were recognized against the outstanding amount owed to the sellers. Barter trade revenues generated for the three months ended March 31, 2016 and 2015 were $nil and $ 737,261 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 10. STOCKHOLDERS' EQUITY The Company is authorized to issue 480,000,000 20,000,000 On September 25, 2014 the Company issued 8,200,000 0.0001 820 7,995,000 0.0001 800 0.0001 On February 21, 2015, the Company issued 123,615,000 0.0001 123,615,000 0.0001 Between July 1, 2015 and September 7, 2015, the Company issued 59,794,309 0.0001 5,979 On September 28, 2015, pursuant to the Acquisition Agreements, the Company acquires each of Fuda UK and Marvel through the exchange of (i) all of the outstanding shares of Fuda UK for 20,500,000 25,420,000 45,920,002 4,592 In October 2015, the Company adopted an amendment to its certificate of incorporation effecting a reverse share split on a forty-one (41) for one hundred (100) basis, such that each one hundred (100) shares of common stock outstanding held by a stockholder were converted into only forty-one (41) shares of common stock outstanding. All outstanding shares of common stock were so converted in October when such amendment was filed in the State of Delaware. The action was duly approved by the board of directors and shareholders of the Company. As a result of the reverse share split, the total number of outstanding shares of common stock of the Company decreased from 258,339,773 105,954,309 On October 1, 2015, the Company issued 35,000 0.0001 4 From time to time, the Company’s majority shareholder has paid expenses on behalf of the Company that are recorded as contribution to paid-in capital. The amounts contributed to paid-in capital were $nil and $ 619 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 11. STOCK-BASED COMPENSATION On October 1, 2015, the Company issued 35,000 0.0001 4 On December 31, 2015, the Company converted 59,999,037 14,634 0.0001 |
GOVERNMENT CONTRIBUTION PLAN
GOVERNMENT CONTRIBUTION PLAN | 3 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 12. GOVERNMENT CONTRIBUTION PLAN Pursuant to the laws applicable to PRC law, the Company is required to participate in a government-mandated multi-employer defined contribution plan pursuant to which certain retirement, medical and other welfare benefits are provided to employees. Chinese labor regulations require the Company to pay to the local labor bureau a monthly contribution at a stated contribution rate based on the monthly basic compensation of qualified employees. The relevant local labor bureau is responsible for meeting all retirement benefit obligations; the Company has no further commitments beyond its monthly contribution. |
STATUTORY RESERVE
STATUTORY RESERVE | 3 Months Ended |
Mar. 31, 2016 | |
Statutory Reserve [Abstract] | |
Statutory Reserve Disclosure [Text Block] | 13. STATUTORY RESERVE Pursuant to the laws applicable to the PRC, the Company must make appropriations from after-tax profit to the non-distributable “statutory surplus reserve fund”. Subject to certain cumulative limits, the “statutory surplus reserve fund” requires annual appropriations of 10% of after-tax profit until the aggregated appropriations reach 50% of the registered capital (as determined under accounting principles generally accepted in the PRC ("PRC GAAP") at each year-end). For foreign invested enterprises and joint ventures in the PRC, annual appropriations should be made to the “reserve fund”. For foreign invested enterprises, the annual appropriation for the “reserve fund” cannot be less than 10% of after-tax profits until the aggregated appropriations reach 50% of the registered capital (as determined under PRC GAAP at each year-end). If the Company has accumulated loss from prior periods, the Company is able to use the current period net income after tax to offset against the accumulate loss. The PRC regulations also restrict the ability of the Company to make dividend and other payments to offshore entities or individuals. The PRC legal restrictions permit payments of dividend by the Company only out of its accumulated after-tax profits, if any, determined in accordance with PRC GAAP and regulations. Any limitations on the ability of the Company to transfer funds could materially and adversely limit our ability to grow, make investments or acquisitions that could be beneficial to the Company’s business, pay dividends and otherwise fund and conduct the Company’s business. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 14. INCOME TAXES United States Fuda USA is established in the State of Delaware in United States and is subject to Delaware State and US Federal tax laws. Fuda USA has approximately $ 738,893 United Kingdom Fuda UK is established in United Kingdom and its income is subject to a 20 Hong Kong Marvel is established in Hong Kong and its income is subject to a 16 China, PRC Liaoning Fuda established in China and its income is subject to income tax rate of 25 For the Three Months Ended March 31, March 31, 2016 2015 PRC Statutory income tax rate 25 % 25 % Less: Income tax holiday -25 % -25 % Total - - The provision for income tax on earnings as follows: For the Three Months Ended March 31, March 31, 2016 2015 PRC income tax at statutory rate $ 939,235 $ 963,949 Less: Income tax subject to tax holiday (939,235) (963,949) Total $ - $ - |
COMMITMENTS, CONTINGENCIES, RIS
COMMITMENTS, CONTINGENCIES, RISKS AND UNCERTAINTIES | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 15. COMMITMENTS, CONTINGENCIES, RISKS AND UNCERTAINTIES The Company has executed lease agreements for office space and dormitory for Liaoning Fuda in Dandong, China which expires in October 2018. The Company has executed various car lease for Liaoning Fuda that expires in June 2016 and December 2016. The total future minimum lease payments under the operating leases as follows: Periods Amounts For year ended December 31, 2016 $ 104,726 For year ended December 31, 2017 61,153 For year ended December 31, 2018 61,153 For year ended December 31, 2019 - Thereafter - Total $ 227,032 Rent expenses for office space and dormitory were $ 15,288 19,092 Concentration and Credit risk Cash deposits with banks are held in financial institutions in China, which are not federally insured deposit protection. Accordingly, the Company has a concentration of credit risk related to these uninsured bank deposits. The Company has not experienced any losses in such accounts and believes it is not exposed to significant credit risk in this area. The Company depends on a limited number of suppliers for its products. Accordingly, the Company has a concentration risk related to these suppliers. Failure to maintain existing relationships with our suppliers or to establish new relationships in the future could also negatively affect our ability to obtain products sold to customers in a timely manner. If the Company is unable to obtain ample supply of products from existing suppliers or alternative sources of supply, the Company may be unable to satisfy our customers’ orders, which could materially and adversely affect revenues. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | BUSINESS SEGMENTS Revenues Cost of Sales For the Three Months Ended For the Three Months Ended March 31, March 31, March 31, March 31, 2016 2015 2016 2015 Granite Stones $ 5,007,441 $ 7,322,565 $ 948,418 $ 3,340,423 Graphite - - - - Fluorite - - - - Gold 77,934 - 71,837 - Total $ 5,085,375 $ 7,322,565 $ 1,020,255 $ 3,340,423 Sales Revenues Cost of Sales For the Three Months Ended For the Three Months Ended March 31, March 31, March 31, March 31, 2016 2015 2016 2015 Related parties $ - $ 737,261 $ - $ 55,853 Third parties 5,085,375 6,585,304 1,020,255 3,284,570 Total $ 5,085,375 $ 7,322,565 $ 1,020,255 $ 3,340,423 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS Management has evaluated all events subsequent to year end through the date of this filing, noting that none materially impacted the financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN23
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited financial statements and related notes have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). This basis of accounting involves the application of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when incurred. The Company’s financial statements are expressed in U.S. dollars. |
Quarterly Financial Information [Policy Text Block] | Interim Financial Information The accompanying consolidated balance sheet as of December 31, 2015, which has been derived from the Company's audited financial statements as of that date, and the unaudited condensed financial information of the Company as of March 31, 2016 and for the three months ended March 31, 2016, has been prepared in accordance with the instructions to Form 10-Q and Article8-03 of Regulation S-X for interim financial information. In the opinion of management, such financial information includes all adjustments considered necessary for a fair presentation of the Company's financial position at such date and the operating results and cash flows for such periods. Operating results for the interim period ended March 31, 2016 are not necessarily indicative of the results that may be expected for the entire year. Certain information and footnote disclosure normally included in financial statements in accordance with generally accepted accounting principles have been omitted pursuant to the rules of the United States Securities and Exchange Commission ("SEC"). These unaudited financial statements should be read in conjunction with our audited financial statements and accompanying notes included in the Company's Annual Report on Form 10-K/A for the year ended December 31, 2015 filed on April 22, 2016. |
Reclassification, Policy [Policy Text Block] | Reclassification Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported net income or losses. |
Consolidation, Policy [Policy Text Block] | Principal of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. Acquisition of Fuda UK and Marvel by Fuda USA The acquisition was accounted under US GAAP as a business combination under reverse acquisition with Fuda UK and Marvel being the acquirers and Fuda USA being the acquiree as shares were issued by the public entity to acquire an interest in a larger privately owned entity; thereafter the shareholders of the privately owned entity became the controlling interest of the public entity. The consolidated financial statements have been presented at historical costs and on a retroactive basis to reflect the capital structure of Fuda UK and Marvel. The share exchange transaction was completed and effective on September 28, 2015 and Fuda UK and Marvel became subsidiaries of Fuda USA. Acquisition of Liaoning Fuda by Marvel The acquisition was accounted under US GAAP as a business combination under common control with Marvel being the acquirer as both entities were owned by the same shareholder. The consolidated financial statements have been presented at historical costs and on a retroactive basis. No purchase price or reverse merger accounting methods were used. The business combination transaction was completed and effective on June 30, 2015 and Liaoning became a subsidiary of Marvel. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the amount of revenues and expenses during the reporting periods. Actual results could differ materially from those results. |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income (Loss) The Company follows the provisions of the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) 220 “Reporting Comprehensive Income”, and establishes standards for the reporting and display of comprehensive income, its components and accumulated balances in a full set of general purpose financial statements. The Company’s comprehensive income (loss) consist of net income (loss) and foreign currency translation adjustments. |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value Measurements 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 to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, 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 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. - Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. - Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. There were no assets or liabilities measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820 as of the balance sheet date. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation The reporting currency of Fuda Group (USA) Corporation is the US Dollar (“US$”). The functional currency of Liaoning Fuda is the Chinese Renminbi (“RMB”) and its local currency is Chinese Renminbi (“RMB”). The functional currency of Marvel is the Chinese Renminbi (“RMB”) and its local currency is Hong Kong Dollar (“HK$”). The functional currency of Fuda UK is Chinese Renminbi (“RMB”) and its local currency is British Pounds (“GBP”). Transactions in currencies other than the entity’s functional currency are recorded at the rates of exchange prevailing on the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing at the end of the reporting periods. Exchange differences arising on the settlement of monetary items and on translation of monetary items at period-end are included in income statement of the period. For the purpose of presenting these financial statements, the Company’s assets and liabilities are expressed in US$ at the exchange rate on the balance sheet date, stockholder’s equity accounts are translated at historical rates, and income and expense items are translated at the weighted average exchange rate during the period. The resulting translation adjustments are reported under accumulated other comprehensive income in the stockholder’s equity section of the balance sheets. March 31, March 31, December 31, RMB to US$ 2016 2014 2015 Period end spot rate 0.15468 0.16369 0.15411 Average periodic rate 0.15288 0.16275 N/A |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents The Company considers highly-liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents. |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Accounts Receivable Accounts receivable are stated at the amount the Company expects to collect from outstanding balances. The Company provides for probable uncollectible amounts through a charge to earnings and a credit to an allowance for doubtful accounts based on its assessment of the current status of individual accounts. Balances that are still outstanding after the Company has used reasonable collection efforts are written off through a charge to the allowance for doubtful accounts and a credit to accounts receivable. Bad debt expenses were $nil and $nil for the three months ended March 31, 2016 and 2015, respectively. |
Inventory, Policy [Policy Text Block] | Inventories Inventories, which are primarily comprised of goods for sale, are stated at the lower of cost or net realizable value, using the first-in first-out (FIFO) method. The Company evaluates the need for reserves associated with obsolete, slow-moving and non-salable inventory by reviewing net realizable values on a periodic basis. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Machinery 5 Office equipment 5 Motor Vehicle 10 Expenditures for repairs and maintenance, which do not improve or extend the expected useful lives of the assets, are expensed as incurred while major replacements and improvements are capitalized. |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | Valuation of Long-Lived assets Long-lived assets and certain identifiable intangibles are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. |
Security Deposits [Policy Text Block] | Security deposits Security deposits are paid by Liaoning Fuda to its suppliers in order to ensure ample, constant supply and prompt delivery of goods Security deposits are paid by Fuda UK to its suppliers to establish a purchase commitment. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition The Company generally recognizes product sales revenue when the significant risks and rewards of ownership have been transferred pursuant to PRC law, including such factors as when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, sales and value-added tax laws have been complied with, and collectability is reasonably assured. Liaoning Fuda Direct Domestic Sales The Company recognizes product sales revenue when customers pick up and pay for the goods at once. The customer is responsible for losses when occurred. The Company sets out the terms and conditions of the sales contract and deals directly with customers. Liaoning Fuda Direct International Sales The Company recognizes product sales revenue when bill of lading is received from shipping company. Although the title does not formally transfer until the goods have reach its destination port, the customer has a binding agreement for the goods; and is obligated to purchase them because a deposit has been made by the customer on the purchased goods. The Company is responsible for losses in case of a shipping issue, but in all cases the Company has purchased insurance to cover for such loss. The Company sets out the terms and conditions of the sales contract and deals directly with customers. Liaoning Fuda Agency International Sales The Company recognizes product sales revenue when bill of lading in received from shipping company although the title does not transfer until the goods have reach its destination port. The Agent is responsible for losses when occurred which the Agent has a blanket insurance to cover for such loss. The Agent would prepare the terms and conditions of the sales contract and deals directly with customers. The Company sets out the terms and conditions of the sales contract and deals directly with customers. Marvel Sales The Company derives its revenues from trading graphite and fluorite. The Company recognizes sales of graphite and fluorite revenue when the goods are delivered to destination designated by the customer. Customer is allowed to return the goods or cancel the order subject to a penalty. The Company sets out the terms and conditions of the sales contract and deals directly with customers. Fuda UK Sales The Company derives its revenues from trading gold stones, gold sand, or gold bars. The Company recognizes sales of gold stones, gold sand, or gold bars revenue when the goods are delivered to destination designated by the customer. Sales price of the goods are to be negotiated between Fuda UK and the customer, and accepted by the customer after a third party inspection report for quality and weight is obtained prior to arrival at the destination of the customer. In case of finding irregularity or discrepancy in weight or purity of the goods, the customer is allowed to claim from Fuda UK to deduct the corresponding amount and any cost within 7 days upon receipt of the actual goods. The Company sets out the terms and conditions of the sales contract and deals directly with customers. Fuda UK Cooperative Operation The Company derives its revenues from trading gold sands or gold dust filtered and sorted from the gold mine tailings owned by the Chinese government under a cooperative profit sharing agreement. The cooperative agreement indicated the profit sharing is based on the gross sales price for the products sold and the ratios are to be 25 35 40 40 As of March 31, 2016, the Company has not generated any revenues from such operation. |
Nonmonetary Transactions Policies [Policy Text Block] | Nonmonetary Transactions The Company recognizes nonmonetary transactions in accordance to ASC 845-10-30 which in general, that nonmonetary transactions should be based on the fair values of the assets (or services) involved, which is the same basis as that used in monetary transactions. Thus, the cost of a nonmonetary asset acquired in exchange for another nonmonetary asset is the fair value of the asset surrendered to obtain it, and a gain or loss shall be recognized on the exchange. The fair value of the asset received shall be used to measure the cost if it is more clearly evident than the fair value of the asset surrendered. Similarly, a nonmonetary asset received in a nonreciprocal transfer shall be recorded at the fair value of the asset received. A transfer of a nonmonetary asset to a stockholder or to another entity in a nonreciprocal transfer shall be recorded at the fair value of the asset transferred and a gain or loss shall be recognized on the disposition of the asset.” |
Value Added Taxes, Policy [Policy Text Block] | Value added taxes The Company is subject to Value Added Taxes (“VAT”) at a rate of 17 |
Advertising Costs, Policy [Policy Text Block] | Advertising The Company expenses advertising costs as incurred and are included in selling expenses. |
Government Contractors, Revenue Recognition, Policy [Policy Text Block] | Government Subsidies The Company recognizes government grants that are non-operating in nature and with no further conditions to be met as other income when received. The Company recognizes government grants that contain certain operating conditions as liabilities when received, and as a reduction of the related costs for which the grants are intended to compensate when the conditions are met. The government subsidies or rebates received by the Company as other income was an incentive to the Company to support export trade were $nil and $ 34,438 |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock Based Compensation The Company recognizes stock based compensation in accordance to ASC718 which requires companies to measure the compensation costs of share-based compensation arrangements based on the grant-date fair value and recognize the costs in the financial statements over the period during which employees are required to provide services. Share-based compensation arrangements include stock options, restricted share plans, performance-based awards, share appreciation rights and employee share purchase plans. As such, compensation cost is measured on the date of grant at their fair value. Such compensation amounts, if any, are amortized over the respective vesting periods of the option grant. Equity instruments (“instruments”) issued to other than employees are recorded on the basis of the fair value of the instruments, as required by ASC No. 718. FASB ASC No. 505, Equity Based Payments to Non-Employees, defines the measurement date and recognition period for such instruments. In general, the measurement date is when either (a) a performance commitment, as defined, is reached or (b) the earlier of (i) the non-employee performance is complete or (ii) the instruments are vested. The measured value related to the instruments is recognized over a period based on the facts and circumstances of each particular grant as defined in the FASB ASC. Refer to Footnote 11 Stock Based Compensation for additional information. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company accounts for income taxes using an asset and liability approach which allows for the recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility is uncertain. Under ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The evaluation of a tax position is a two-step process. The first step is to determine whether it is more-likely-than-not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigations based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the year incurred. |
Segment Reporting, Policy [Policy Text Block] | Segment Information The standard, “Disclosures about Segments of an Enterprise and Related Information,” codified with ASC-280, requires certain financial and supplementary information to be disclosed on an annual and interim basis for each reportable segment of an enterprise. The Company believes that it operates in one business segment (marketing and sales) and in one geographical segment (China), as all of the Company’s current operations are carried in China. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory, which modifies existing requirements regarding measuring inventory at the lower of cost or market. Under existing standards, the market amount requires consideration of replacement cost, net realizable value (NRV), and NRV less an approximately normal profit margin. The new ASU replaces market with NRV, defined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This eliminates the need to determine and consider replacement cost or NRV less an approximately normal profit margin when measuring inventory. The amendments are effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter. Early application is permitted. The Company is currently assessing this ASU’s impacts on the Company’s consolidated results of operations and financial condition. In February 2015, FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. The new consolidation standard changes the way reporting enterprises evaluate whether (a) they should consolidate limited partnerships and similar entities, (b) fees paid to a decision maker or service provider are variable interests in a VIE, and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. The guidance is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2015. Early adoption is allowed, including early adoption in an interim period. A reporting entity may apply a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption or may apply the amendments retrospectively. The Company is currently assessing the impact of the adoption of this guidance on the consolidated financial statements. The Company believes that there were no other accounting standards recently issued that had or are expected to have a material impact on our financial position or results of operations. |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Foreign Exchange Rates [Table Text Block] | Exchange rate used for the translation as follows: March 31, March 31, December 31, RMB to US$ 2016 2014 2015 Period end spot rate 0.15468 0.16369 0.15411 Average periodic rate 0.15288 0.16275 N/A |
Property, Plant and Equipment, Estimated Useful Lives [Table Text Block] | Property and equipment are recorded at cost and depreciated using the straight-line method, at original cost, over the estimated useful lives of the assets as follows: Machinery 5 Office equipment 5 Motor Vehicle 10 |
ACCOUNTS RECEIVABLES (Tables)
ACCOUNTS RECEIVABLES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Accounts receivables consist of the following: March 31, December 31, 2016 2015 Accounts receivables $ 4,925,067 $ 736,888 Less: allowance for doubtful accounts - (261,847) Net $ 4,925,067 $ 475,041 |
SECURITY DEPOSITS TO SUPPLIERS
SECURITY DEPOSITS TO SUPPLIERS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule Of Security Deposits To Suppliers [Table Text Block] | Security deposits to suppliers consist of the following: March 31, December 31, 2016 2015 Liaoning Fuda - Supplier A $ 1,624,155 $ - Liaoning Fuda - Supplier B 1,469,474 - Liaoning Fuda - Supplier C 1,426,936 - Fuda UK - Supplier D 1,998,484 996,166 Total $ 6,519,049 $ 996,166 |
LAND, PROPERTY & EQUIPMENT (Tab
LAND, PROPERTY & EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Land, property & equipment consist of the following: March 31, December 31, 2016 2015 Depreciable assets Office equipment $ 8,312 $ 8,281 Motor vehicle 14,439 14,386 Machinery 20,251 20,154 Total 43,002 42,821 Less: accumulated depreciation (11,899) (10,049) Net $ 31,103 $ 32,772 Non-depricable assets Land 49,628,980 49,446,030 Total $ 49,660,083 $ 49,478,802 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets [Table Text Block] | Other assets consist of the following: March 31, December 31, 2016 2015 Rent Security Deposits $ 46,404 $ 46,233 Total $ 46,404 $ 46,233 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | Related parties’ receivables/(payables) consist of the following: March 31, December 31, 2016 2015 Receivables/(Payables) Mr. Tan Lin $ - $ (1,227,280) Mr. Wu Xiao Bin (714,904) (778,449) Mr. Yang Yuan Xi (541,385) (539,389) Mr. Wu Zhong Chen (541,385) (539,389) Ms. Lynn Lee 486,387 (547,114) Total Receivables/(Payables) $ (1,311,287) $ (3,631,621) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The reconciliation of effective income tax rate as follows: For the Three Months Ended March 31, March 31, 2016 2015 PRC Statutory income tax rate 25 % 25 % Less: Income tax holiday -25 % -25 % Total - - The provision for income tax on earnings as follows: For the Three Months Ended March 31, March 31, 2016 2015 PRC income tax at statutory rate $ 939,235 $ 963,949 Less: Income tax subject to tax holiday (939,235) (963,949) Total $ - $ - |
COMMITMENTS, CONTINGENCIES, R31
COMMITMENTS, CONTINGENCIES, RISKS AND UNCERTAINTIES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The total future minimum lease payments under the operating leases as follows: Periods Amounts For year ended December 31, 2016 $ 104,726 For year ended December 31, 2017 61,153 For year ended December 31, 2018 61,153 For year ended December 31, 2019 - Thereafter - Total $ 227,032 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The revenues and cost of goods sold from operation consist of the following: Revenues Cost of Sales For the Three Months Ended For the Three Months Ended March 31, March 31, March 31, March 31, 2016 2015 2016 2015 Granite Stones $ 5,007,441 $ 7,322,565 $ 948,418 $ 3,340,423 Graphite - - - - Fluorite - - - - Gold 77,934 - 71,837 - Total $ 5,085,375 $ 7,322,565 $ 1,020,255 $ 3,340,423 |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | The revenues and costs of goods sold for Affiliated Entities (See note 9) and third parties consist of the following: Sales Revenues Cost of Sales For the Three Months Ended For the Three Months Ended March 31, March 31, March 31, March 31, 2016 2015 2016 2015 Related parties $ - $ 737,261 $ - $ 55,853 Third parties 5,085,375 6,585,304 1,020,255 3,284,570 Total $ 5,085,375 $ 7,322,565 $ 1,020,255 $ 3,340,423 |
ORGANIZATION AND DESCRIPTION 33
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Textual) - CNY (¥) ¥ in Millions | Jun. 30, 2015 | Aug. 31, 2012 |
Capital Units, Value | ¥ 60 | |
Liaoning Fuda [Member] | ||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% |
SUMMARY OF SIGNIFICANT ACCOUN34
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - China, Yuan Renminbi | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2014 |
Period end spot rate [Member] | |||
Foreign Currency Exchange Rate, Translation | 0.15468 | 0.15411 | 0.16369 |
Average periodic rate [Member] | |||
Foreign Currency Exchange Rate, Translation | 0.15288 | 0 | 0.16275 |
SUMMARY OF SIGNIFICANT ACCOUN35
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 3 Months Ended |
Mar. 31, 2016 | |
Machinery [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 5 |
Office equipment [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 5 |
Motor Vehicle [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 10 |
SUMMARY OF SIGNIFICANT ACCOUN36
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Provision for Doubtful Accounts | $ 0 | $ 0 |
Profit Sharing, Percentage | 40.00% | |
Value Added Tax Rate, Percentage | 17.00% | |
Government Rebate | $ 0 | $ 34,438 |
Fuda UK [Member] | ||
Profit Sharing, Percentage | 40.00% | |
Fuda UK [Member] | Mine Owner [Member] | ||
Profit Sharing, Percentage | 25.00% | |
Fuda UK [Member] | Mine Worker [Member] | ||
Profit Sharing, Percentage | 35.00% |
ACCOUNTS RECEIVABLES (Details)
ACCOUNTS RECEIVABLES (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts receivables | $ 4,925,067 | $ 736,888 |
Less: allowance for doubtful accounts | 0 | (261,847) |
Net | $ 4,925,067 | $ 475,041 |
ACCOUNTS RECEIVABLES (Details T
ACCOUNTS RECEIVABLES (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Provision for Doubtful Accounts | $ 0 | $ 0 |
SECURITY DEPOSITS TO SUPPLIER39
SECURITY DEPOSITS TO SUPPLIERS (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Security deposits | $ 6,519,049 | $ 996,166 |
Liaoning Fuda [Member] | Supplier A [Member] | ||
Security deposits | 1,624,155 | 0 |
Liaoning Fuda [Member] | Supplier B [Member] | ||
Security deposits | 1,469,474 | 0 |
Liaoning Fuda [Member] | Supplier C [Member] | ||
Security deposits | 1,426,936 | 0 |
Fuda UK [Member] | Supplier D [Member] | ||
Security deposits | $ 1,998,484 | $ 996,166 |
LAND, PROPERTY & EQUIPMENT (Det
LAND, PROPERTY & EQUIPMENT (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Depreciable assets | ||
Property, Plant and Equipment, Gross | $ 43,002 | $ 42,821 |
Less: accumulated depreciation | (11,899) | (10,049) |
Property, Plant and Equipment Excluding Land, Net | 31,103 | 32,772 |
Non-depreciable assets | ||
Land | 49,628,980 | 49,446,030 |
Property, Plant and Equipment, Net, Total | 49,660,083 | 49,478,802 |
Office equipment [Member] | ||
Depreciable assets | ||
Property, Plant and Equipment, Gross | 8,312 | 8,281 |
Motor Vehicle [Member] | ||
Depreciable assets | ||
Property, Plant and Equipment, Gross | 14,439 | 14,386 |
Machinery [Member] | ||
Depreciable assets | ||
Property, Plant and Equipment, Gross | $ 20,251 | $ 20,154 |
LAND, PROPERTY & EQUIPMENT (D41
LAND, PROPERTY & EQUIPMENT (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
General and Administrative Expense [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation | $ 1,779 | $ 1,057 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Other Assets, Noncurrent | $ 46,404 | $ 46,233 |
Rent Security Deposits [Member] | ||
Other Assets, Noncurrent | $ 46,404 | $ 46,233 |
TRADE FINANCING LOANS (Details
TRADE FINANCING LOANS (Details Textual) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Loans Payable, Current, Total | $ 0 | $ 0 | |
Interest Expense | $ 0 | $ 1,363 | |
Maximum [Member] | |||
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate | 85.00% | ||
Short-term Debt, Weighted Average Interest Rate | 4.00% | ||
Minimum [Member] | |||
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate | 70.00% | ||
Short-term Debt, Weighted Average Interest Rate | 2.00% |
ADVANCES FROM CUSTOMERS (Detail
ADVANCES FROM CUSTOMERS (Details Textual) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Customer Advances, Current | $ 6,187 | $ 6,164 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Related Party Transaction, Due from (to) Related Party, Current [Abstract] | ||
Related Party Transaction, Due from (to) Related Party, Current, Total | $ (1,311,287) | $ (3,631,621) |
Officer and Shareholder [Member] | ||
Related Party Transaction, Due from (to) Related Party, Current [Abstract] | ||
Related Party Transaction, Due from (to) Related Party, Current, Total | 0 | (1,227,280) |
Officer, Director and Majority Shareholder [Member] | ||
Related Party Transaction, Due from (to) Related Party, Current [Abstract] | ||
Related Party Transaction, Due from (to) Related Party, Current, Total | (714,904) | (778,449) |
Legal Representative [Member] | ||
Related Party Transaction, Due from (to) Related Party, Current [Abstract] | ||
Related Party Transaction, Due from (to) Related Party, Current, Total | (541,385) | (539,389) |
Shareholder [Member] | ||
Related Party Transaction, Due from (to) Related Party, Current [Abstract] | ||
Related Party Transaction, Due from (to) Related Party, Current, Total | (541,385) | (539,389) |
Executive Officer [Member] | ||
Related Party Transaction, Due from (to) Related Party, Current [Abstract] | ||
Related Party Transaction, Due from (to) Related Party, Current, Total | $ 486,387 | $ (547,114) |
RELATED PARTY TRANSACTIONS (D46
RELATED PARTY TRANSACTIONS (Details Textual) | 3 Months Ended | ||
Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) | |
Advertising Barter Transactions, Advertising Barter Revenue | $ | $ 0 | $ 737,261 | |
Officer [Member] | |||
Return Of Reimbursement Expense Paid | $ | $ 486,387 | ||
Fuda Investment [Member] | |||
Equity Method Investment, Ownership Percentage | 5.00% | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Land | ¥ | ¥ 127,424,700 | ||
Winner International [Member] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Land | ¥ | ¥ 65,965,000 |
STOCKHOLDERS' EQUITY (Details T
STOCKHOLDERS' EQUITY (Details Textual) - USD ($) | 1 Months Ended | 2 Months Ended | 3 Months Ended | ||||||
Oct. 31, 2015 | Sep. 28, 2015 | Feb. 21, 2015 | Feb. 20, 2015 | Sep. 25, 2014 | Sep. 07, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Common Stock, Shares Authorized | 480,000,000 | 480,000,000 | |||||||
Preferred Stock, Shares Authorized | 20,000,000 | ||||||||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | |||||||
Stock Repurchased During Period, Shares | 123,615,000 | ||||||||
Stock Issued During Period, Shares, New Issues | 123,615,000 | 59,794,309 | |||||||
Stock Issued During Period, Value, New Issues | $ 5,979 | ||||||||
Stock Issued During Period, Shares, Acquisitions | 45,920,002 | ||||||||
Stock Issued During Period, Value, Acquisitions | $ 4,592 | ||||||||
Common Stock, Shares, Outstanding | 105,954,309 | 105,954,309 | |||||||
Adjustments to Additional Paid in Capital, Contributed Capital | $ 0 | $ 619 | |||||||
Common Stock [Member] | |||||||||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Stock Repurchased During Period, Shares | 7,995,000 | ||||||||
Stock Repurchased During Period, Value | $ 800 | ||||||||
Stock Issued During Period, Shares, New Issues | 8,200,000 | ||||||||
Stock Issued During Period, Value, New Issues | $ 820 | ||||||||
Stock Issued During Period, Shares, Period Increase (Decrease) | 258,339,773 | ||||||||
Common Stock, Shares, Outstanding | 105,954,309 | ||||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures, Total | $ 4 | ||||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures, Total | 35,000 | ||||||||
Shares Issued, Price Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Stockholders' Equity, Reverse Stock Split | reverse share split on a forty-one (41) for one hundred (100) basis, such that each one hundred (100) shares of common stock outstanding held by a stockholder were converted into only forty-one (41) shares of common stock outstanding | ||||||||
Fuda UK [Member] | |||||||||
Stock Issued During Period, Shares, Acquisitions | 20,500,000 | ||||||||
Marvel Investment Corporation Limited [Member] | |||||||||
Stock Issued During Period, Shares, Acquisitions | 25,420,000 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||
Oct. 31, 2015 | Dec. 31, 2015 | Mar. 31, 2016 | Sep. 28, 2015 | Sep. 07, 2015 | Feb. 21, 2015 | Feb. 20, 2015 | Sep. 25, 2014 | |
Conversion of Stock, Shares Converted | 59,999,037 | |||||||
Stockholders' Equity Note, Subscriptions Receivable | $ 14,634 | |||||||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | ||||||
Common Stock [Member] | ||||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures, Total | 35,000 | |||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures, Total | $ 4 | |||||||
Shares Issued, Price Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 |
STATUTORY RESERVE (Details Text
STATUTORY RESERVE (Details Textual) | 3 Months Ended |
Mar. 31, 2016 | |
Statutory Surplus Reserve Fund Appropriation Description | the “statutory surplus reserve fund” requires annual appropriations of 10% of after-tax profit until the aggregated appropriations reach 50% of the registered capital |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Line Items] | ||
PRC Statutory income tax rate | 25.00% | 25.00% |
Less: Income tax holiday | (25.00%) | (25.00%) |
Total | 0.00% | 0.00% |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Line Items] | ||
PRC income tax at statutory rate | $ 939,235 | $ 963,949 |
Less: Income tax subject to tax holiday | (939,235) | (963,949) |
Total | $ 0 | $ 0 |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Line Items] | ||
Effective Income Tax Rate Reconciliation, Percent, Total | 0.00% | 0.00% |
UNITED STATES | ||
Income Tax Disclosure [Line Items] | ||
Operating Loss Carryforwards | $ 738,893 | |
UNITED KINGDOM | ||
Income Tax Disclosure [Line Items] | ||
Effective Income Tax Rate Reconciliation, Percent, Total | 20.00% | |
HONG KONG | ||
Income Tax Disclosure [Line Items] | ||
Effective Income Tax Rate Reconciliation, Percent, Total | 16.00% | |
CHINA | ||
Income Tax Disclosure [Line Items] | ||
Effective Income Tax Rate Reconciliation, Percent, Total | 25.00% |
COMMITMENTS, CONTINGENCIES, R53
COMMITMENTS, CONTINGENCIES, RISKS AND UNCERTAINTIES (Details) | Mar. 31, 2016USD ($) |
Commitments Contingencies [Line Items] | |
For year ended December 31, 2016 | $ 104,726 |
For year ended December 31, 2017 | 61,153 |
For year ended December 31, 2018 | 61,153 |
For year ended December 31, 2019 | 0 |
Thereafter | 0 |
Total | $ 227,032 |
COMMITMENTS, CONTINGENCIES, R54
COMMITMENTS, CONTINGENCIES, RISKS AND UNCERTAINTIES (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Commitments Contingencies [Line Items] | ||
Operating Leases, Rent Expense | $ 15,288 | $ 19,092 |
Office Space [Member] | Liaoning Fuda [Member] | ||
Commitments Contingencies [Line Items] | ||
Lease Expiration Date | Oct. 31, 2018 | |
Car [Member] | Liaoning Fuda [Member] | ||
Commitments Contingencies [Line Items] | ||
Lease Expiration Date | Jun. 30, 2016 |
BUSINESS SEGMENTS (Details)
BUSINESS SEGMENTS (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Revenues, Total | $ 5,085,375 | $ 7,322,565 |
Cost of Sales, Total | 1,020,255 | 3,340,423 |
Granites Stones [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues, Total | 5,007,441 | 7,322,565 |
Cost of Sales, Total | 948,418 | 3,340,423 |
Graphite [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues, Total | 0 | 0 |
Cost of Sales, Total | 0 | 0 |
Fluorite [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues, Total | 0 | 0 |
Cost of Sales, Total | 0 | 0 |
Gold [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues, Total | 77,934 | 0 |
Cost of Sales, Total | $ 71,837 | $ 0 |
BUSINESS SEGMENTS (Details 1)
BUSINESS SEGMENTS (Details 1) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Sales Revenues, Related Parties | $ 0 | $ 737,261 |
Sales Revenues, Third parties | 5,085,375 | 6,585,304 |
Total sales | 5,085,375 | 7,322,565 |
Cost of Sales, Related parties | 0 | 55,853 |
Cost of Sales, Third parties | 1,020,255 | 3,284,570 |
Total cost of sales | $ 1,020,255 | $ 3,340,423 |