Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Entity Registrant Name | AGM GROUP HOLDINGS, INC. |
Entity Central Index Key | 0001705402 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Type | 20-F |
Entity Incorporation State Country Code | D8 |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Interactive Data Current | Yes |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
DocumentAnnual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Shell Company | false |
Entity File Number | 001-38309 |
Class A Ordinary Shares | |
Entity Common Stock, Shares Outstanding | 21,791,055 |
Class B Ordinary Shares | |
Entity Common Stock, Shares Outstanding | 7,100,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 2,076,569 | $ 7,865,345 |
Accounts receivable, net | 66,535 | |
Prepaid expenses and other current assets | 5,162,213 | 532,289 |
Total current assets | 7,305,317 | 8,397,634 |
Investments | 341,045 | |
Property and equipment, net | 75,391 | 97,933 |
Intangible assets, net | 11,593 | 13,073 |
Goodwill | 7,121,712 | |
Total assets | 14,514,013 | 8,849,685 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Accounts payable | 3,268 | 79,650 |
Accrued expenses and other payables | 1,867,251 | 1,703,134 |
Advance from customers | 67,484 | |
Due to related parties | 724,885 | 1,347,981 |
Total current liabilities | 2,662,888 | 3,130,766 |
Total liabilities | 2,662,888 | 3,130,766 |
SHAREHOLDERS' EQUITY: | ||
Additional paid-in capital | 15,299,930 | 7,695,605 |
Retained earnings | (3,876,167) | (2,313,312) |
Accumulated other comprehensive income | 398,471 | 303,411 |
Total shareholders' equity | 11,851,125 | 5,718,920 |
Total liabilities and shareholders' equity | 14,514,013 | 8,849,686 |
Class A Ordinary Shares | ||
SHAREHOLDERS' EQUITY: | ||
Ordinary shares value | 21,791 | 21,316 |
Total shareholders' equity | 21,791 | 21,316 |
Class B Ordinary Shares | ||
SHAREHOLDERS' EQUITY: | ||
Ordinary shares value | 7,100 | 11,900 |
Total shareholders' equity | $ 7,100 | $ 11,900 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Class A Ordinary Shares | ||
Ordinary shares, par value | $ 0.001 | $ 0.001 |
Ordinary stock, shares authorized | 200,000,000 | 200,000,000 |
Ordinary stock, shares issued | 21,791,055 | 21,316,055 |
Ordinary stock, shares outstanding | 21,791,055 | 21,316,055 |
Class B Ordinary Shares | ||
Ordinary shares, par value | $ 0.001 | $ 0.001 |
Ordinary stock, shares authorized | 200,000,000 | 200,000,000 |
Ordinary stock, shares issued | 11,910,000 | 7,100,000 |
Ordinary stock, shares outstanding | 11,910,000 | 7,100,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | |||
Revenues | $ 709,630 | $ 3,871,812 | $ 10,256,905 |
Revenues - related parties | 1,240,708 | 2,170,838 | |
Total Revenues | 709,630 | 5,112,520 | 12,427,743 |
Cost of Revenues | |||
Cost of revenues | 242,944 | 1,653,028 | 3,348,681 |
Total cost of revenues | 242,944 | 1,653,028 | 3,348,681 |
Gross profit | 466,686 | 3,459,492 | 9,079,062 |
Operating expenses | |||
Selling, general & administrative expenses | 1,565,762 | 3,876,872 | 2,931,469 |
Research and development expenses | 127,117 | 1,028,249 | 398,188 |
Bad debt expenses | 923,217 | 35,000 | |
Total operating expenses | 1,692,879 | 5,828,338 | 3,364,657 |
(Loss) income from operations | (1,226,193) | (2,368,845) | 5,714,405 |
Other income (expenses) | |||
Other income | 127,263 | 534,246 | 19,358 |
Other expense | (374,608) | (511,908) | (13,336) |
Gain (loss) on equity method investment | 33,684 | (35,174) | |
Total other income | (213,661) | (12,837) | 6,022 |
(Loss) income from continuing operations before provision of income taxes | (1,439,854) | (2,381,682) | 5,720,427 |
Provision for income taxes expenses | (123,001) | 595,421 | (1,300,894) |
Net (loss) income from continuing operation | (1,562,855) | (1,786,261) | 4,419,533 |
Discontinued operation | |||
Loss from discontinued operation, net of income tax | (11,698,538) | (519,642) | |
Gain from disposal | 5,072,068 | ||
Loss from discontinued operation, net of income tax | (6,626,470) | (519,642) | |
Net (loss) income | (1,562,855) | (8,412,731) | 3,899,891 |
Comprehensive loss | |||
Net (loss) income | (1,562,855) | (8,412,731) | 3,899,891 |
Other comprehensive income | |||
Foreign currency translation adjustment | 95,060 | 284,923 | (29,664) |
Total comprehensive loss | $ (1,467,795) | $ (8,127,808) | $ 3,870,227 |
(Loss) earnings per common share | |||
Continuing operations - Basic and Diluted | $ (0.07) | $ (0.09) | $ 0.22 |
Discontinued operations - Basic and Diluted | (0.31) | (0.03) | |
Net (loss) earnings per common share - basic and diluted | $ (0.07) | $ (0.40) | $ 0.19 |
Weighted average Class A ordinary shares outstanding, basic and diluted | 21,298,540 | 20,951,074 | 20,010,000 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) | Class A Ordinary Share | Class B Ordinary Shares | Additional paid-in capital | Retained Earnings | Accumulated Other Comprehensive Income | Total |
Beginning Balance at Dec. 31, 2016 | $ 20,010 | $ 11,900 | $ 1,968,100 | $ 2,199,528 | $ 48,152 | $ 4,247,690 |
Beginning Balance, shares at Dec. 31, 2016 | 20,010,000 | 11,900,000 | ||||
Net income | 3,899,891 | 3,899,891 | ||||
Foreign currency translation adjustment | (29,664) | (29,664) | ||||
Ending Balance at Dec. 31, 2017 | $ 20,010 | $ 11,900 | 1,968,100 | 6,099,419 | 18,488 | 8,117,917 |
Ending Balance, shares at Dec. 31, 2017 | 20,010,000 | 11,900,000 | ||||
Net income | (8,412,731) | (8,412,731) | ||||
Issuance of common stock for cash | $ 1,306 | 5,727,505 | 5,728,811 | |||
Issuance of common stock for cash, shares | 1,306,055 | |||||
Foreign currency translation adjustment | 284,923 | 284,923 | ||||
Ending Balance at Dec. 31, 2018 | $ 21,316 | $ 11,900 | 7,695,605 | (2,313,312) | 303,411 | 5,718,920 |
Ending Balance, shares at Dec. 31, 2018 | 21,316,055 | 11,900,000 | ||||
Net income | (1,562,855) | (1,562,855) | ||||
Issuance of common shares for acquisition equities of Anyi | $ 475 | 7,599,525 | 7,600,000 | |||
Issuance of common shares for acquisition equities of Anyi, shares | 475,000 | |||||
Cancelled shareholders' common stocks | $ (4,800) | 4,800 | ||||
Cancelled shareholders' common stocks, shares | (4,800,000) | |||||
Foreign currency translation adjustment | 95,060 | 95,060 | ||||
Ending Balance at Dec. 31, 2019 | $ 21,791 | $ 7,100 | $ 15,299,930 | $ (3,876,167) | $ 398,471 | $ 11,851,125 |
Ending Balance, shares at Dec. 31, 2019 | 21,791,055 | 7,100,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||
Net (loss) income | $ (1,562,855) | $ (8,412,731) | $ 3,899,891 |
Net loss from discontinued operations, net of tax | (6,626,470) | (519,642) | |
Net (loss) income from continuing operations | (1,562,855) | (1,786,261) | 4,419,533 |
Adjustment to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization | 57,631 | 382,680 | 246,529 |
Allowance for doubtful accounts | (450,000) | 35,000 | |
Gain on equity method investment | (33,684) | 923,217 | |
Gain from disposal of subsidiary | 35,174 | ||
Changes in operating assets and liabilities: | |||
Accounts receivable | (67,071) | 411,070 | 816,770 |
Accounts receivable - related parties | 168,937 | 74,763 | |
Prepaid expense and other current assets | 306,671 | (1,065,753) | (123,030) |
Accounts payable | (76,382) | 66,687 | (159,490) |
Accrued expenses and other payables | 1,112,744 | (761,037) | 238,510 |
Advanced from customers | 68,028 | (201,827) | |
Unrecognized tax benefits | |||
Income tax payable | (1,475) | 5,110 | |
Other assets, non-current | 77,623 | ||
Net cash (used in) provided by operating activities from continuing operations | (196,393) | (2,075,286) | 5,429,491 |
Net cash (used in) provided by operating activities from discontinued operations | (757,948) | 1,134,056 | |
Net cash (used in) provide by operating activities | (196,393) | (2,833,234) | 6,563,547 |
Cash flows from investing activities | |||
Purchase of property and equipment | (34,656) | (57,506) | (44,308) |
Purchase of intangible assets | (1,359,382) | ||
Process from sale of equity investment | 361,933 | ||
Acquisition of investment | (377,952) | ||
Acquisition of subsidiaries | (400,000) | ||
Advance deposit for intent acquisition | (4,937,664) | ||
Net cash used in investing activities from continuing operations | (5,010,387) | (435,458) | (1,403,690) |
Net cash used in investing activities from discontinued operations | |||
Net cash used in investing activities | (5,010,387) | (435,458) | (1,403,690) |
Cash flows from financing activities | |||
Proceeds from issuance of ordinary shares | 5,728,811 | 1,170,000 | |
Proceeds from related parties | 109,679 | 9,293,654 | 4,032,044 |
Repayments to related parties | (636,008) | (8,959,411) | (6,699,036) |
Net cash (used in) provided by financing activities from continuing operations | (526,329) | 6,063,054 | (1,496,992) |
Net cash used in financing activities from discontinued operations | (127,195) | ||
Net cash (used in) provided by financing activities | (526,329) | 6,063,054 | (1,624,187) |
Effect of exchange rate changes on cash and cash equivalents | (55,667) | 442,591 | (63,208) |
Net change in cash and cash equivalents | (5,788,776) | 3,236,953 | 3,472,462 |
Cash and cash equivalents, beginning of the year | 7,865,345 | 7,696,699 | 4,224,237 |
Cash and cash equivalents, end of the year | 2,076,569 | 7,865,345 | 7,696,699 |
Less cash and cash equivalents of discontinued operations-end of period | 3,068,307 | ||
Cash and cash equivalents of continuing operations-end of period | 2,076,569 | 7,865,345 | 4,628,392 |
Supplemental cash flow information | |||
Interest paid | |||
Income taxes paid | 6,400 | ||
Non-cash investing and financing activities | |||
Common stock issued on acquisition | 7,600,000 | ||
Cancelled shareholders' common stocks | 4,800 | ||
Expense paid by related party | $ 61,864 | $ 419,645 | $ 142,085 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | Note 1 - ORGANIZATION AND PRINCIPAL ACTIVITIES AGM Group Holdings Inc. ("AGM Holdings") was incorporated on April 27, 2015 under the laws of the British Virgin Islands. AGM Holdings is a holding company and do not own any material assets or liabilities other than holding equity interest of multiple entities and certain cash and cash equivalents. On May 21, 2015, AGM Holdings incorporated a wholly owned subsidiary, AGM Technology Limited ("AGM HK") in Hong Kong. AGM HK provides advanced online trading service for financial institutions in Asian areas. On October 13, 2015, AGM HK incorporated a Chinese limited liability subsidiary, AGM Tianjin Construction Development Co., Ltd. ("AGM Tianjin") formerly known as Shenzhen AnGaoMeng Financial Technology Service Co., Ltd., for the purpose of being a holding company for the equity interests in People's Republic of China ("PRC"). On November 13, 2015 and September 28, 2016, AGM Tianjin incorporated two wholly owned Chinese limited liability subsidiaries, Beijing AnGaoMeng Technology Service Co., Ltd. ("AGM Beijing"), and Nanjing Xingaomeng Software Technology Co., Ltd. (AGM Nanjing"), respectively. On June 14, 2017, AGM Software Service LTD ("AGM Software") was incorporated under the laws of BVI. AGM Software is a wholly-owned subsidiary of AGM Holdings and its principal activity will be assisting AGM HK in providing our core technology services to customers. On July 26, 2019, AGM Holdings acquired 100% of Anyi Network Inc. ("Anyi Network") and its subsidiaries. Anyi Network was incorporated on September 29, 2017 under the laws of the Cayman Islands. Anyi Network and its subsidiaries ("Anyi") provide information accounting software technology and services for small and medium enterprises ("SME") in PRC. AGM Holdings' subsidiaries are as follows: Name Date of Incorporation Place of Incorporation Percentage of Effective Ownership Principal Activities AGM Technology Limited ("AGM HK") May 21, 2015 Hong Kong 100 % Online trading service AGM Tianjin Construction Development Co., Ltd. ("AGM Tianjin") formerly Shenzhen AnGaoMeng Financial Technology Service Co., Ltd. October 13, 2015 PRC 100 % Holding entity Beijing AnGaoMeng Technology Service Co., Ltd. November 13, 2015 PRC 100 % Software development and provider Nanjing Xingaomeng Software Technology Co., Ltd. (AGM Nanjing") September 28, 2016 PRC 100 % Software development and provider AGM Software Service LTD ("AGM Software") June 14, 2017 BVI 100 % Core technology service provider Anyi Network Inc. ("Anyi Network") September 29, 2017 Cayman 100 % Software development and provider Anyi Technology Limited ("Anyi Technology") October 23, 2017 Hong Kong 100 % Product marketing hub Jiangsu AnyiWang Network Technology Co., Ltd. November 13, PRC 100 % Software development and provider Beijing AnyiWang Technology Co., Ltd. ("Beijing AnYiWang") January 2, 2018 PRC 100 % Software development and provider Changzhou AnyiWang Network Technology Co., Ltd. ("Changzhou AnYiWang") November 27, 2017 PRC 100 % Software development and provider Lianyungang AnyiWang Software Co., Ltd. November 20, 2017 PRC 100 % Software development and provider Tongshan Naquan Technology Service Co., Ltd. ("Tongshan Naquan") May 3, PRC 100 % Software development and provider Hubei AnYiWang Network Technology Co., Ltd. ("Hubei AnYiWang") March 8, PRC 100 % Software development and provider Anyi Network and its subsidiaries are collectively referred to herein as the "Anyi", unless specific reference is made to an entity. AGM HK, AGM Tianjin, AGM Beijing, AGM Nanjing, AGM Software, and Anyi, are referred to as subsidiaries. AGM Holdings and its consolidated subsidiaries are collectively referred to herein as the "Company" unless specific reference is made to an entity. Anyi currently offers seven accounting and Enterprise Resource Planning ("ERP") software, designed according to different accounting principles for different industries and entity types. Anyi also provides a free version for each of its accounting and ERP software that targets small and medium-sized enterprises (SMEs). Users have access to all the tools and functions in the free version, expect that the work volume is limited. For example, the free version of V8 supports the management of 100 accounting documents, 300 types of inventory and 10 employees while the full version supports more entries and the premium version supports unlimited entries. The free versions give potential users a trial of its products. The users will purchase the full version and the premium version if their entity size and other factors require so. The free versions also help Anyi increase its market share. Anyi also offers technical support as an after-sales service to its customers. Anyi considers customer service as a key to build brand equity and customer loyalty. Such technical support includes installation and testing services, software repair and upgrade services, software maintenance services, data conversion and other general enquiry assistance. Since AGM Holdings completed the acquisition of 100% of Anyi Network and its subsidiaries, through variety of accounting software and ERP, the Company helps the SMEs in PRC to meet their needs in the corporate finance and enterprise management sector by providing them with internet-based, professional, personalized, service-oriented, lightweight information management solutions. The Company has become one of the best next-generation financial and business management software providers in PRC with our brand-new technology, business philosophy, strong financial strength, and efficient market operation. |
Summary of Significant Policies
Summary of Significant Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT POLICIES | Note 2 - SUMMARY OF SIGNIFICANT POLICIES Basis of Presentation The Company's year-end is December 31; as such the year ended December 31, 2019 is referred to as "fiscal 2019", the year ended December 31, 2018 is referred to as "fiscal 2018", and the year ended December 31, 2017 is referred to as "fiscal 2017". The accompanying consolidated financial statements are in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and pursuant to the U.S. Securities and Exchange Commission ("SEC") rules. The Company included all adjustments that are necessary for the fair presentation of our financial position, results of operations, and cash flows for the periods presented. This basis of accounting differs in certain material respects from that used for the preparation of the books of account of the Company, which are prepared in accordance with the accounting principles and the relevant financial regulations applicable to enterprises with limited liabilities established in the PRC ("PRC GAAP"), the accounting standards used in the places of their domicile. The accompanying consolidated financial statements reflect necessary adjustments not recorded in the books of account of the Company to present them in conformity with U.S. GAAP. Principles of Consolidation The accompanying consolidated financial statements include the accounts for AGM Holdings and all its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Foreign Currency Translation The accompanying consolidated financial statements are presented in United States dollar ("$"), which is the reporting currency of the Company. For the subsidiaries whose functional currencies are Renminbi ("RMB"), results of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the exchange rate at the end of the period, and equity is translated at historical exchange rates. The resulting translation adjustments are included in determining other comprehensive income or loss. Transaction gains and losses are reflected in the consolidated statements of income. The consolidated balance sheet balances, with the exception of equity at December 31, 2019, 2018 and 2017 were translated at RMB6.9630, RMB6.8764 and RMB6.5064 to $1.00, respectively. The equity accounts were stated at their historical rate. The average translation rates applied to consolidated statements of income and cash flows for the year ended December 31, 2019, 2018 and 2017 were RMB6.9074, RMB6.6146 and RMB6.7570 to $1.00, respectively. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities on the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. The Company bases its estimates and judgments on historical experience and on various other assumptions and information that are believed to be reasonable under the circumstances. Estimates and assumptions of future events and their effects cannot be perceived with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. Significant estimates and assumptions by management include, among others, useful lives and impairment of long-lived assets, allowance for doubtful accounts, and income taxes including the valuation allowance for deferred tax assets. While the Company believes that the estimates and assumptions used in the preparation of the financial statements are appropriate, actual results could differ from those estimates. Estimates and assumptions are periodically reviewed and the effects of revisions are reflected in the financial statements in the period they are determined to be necessary. Cash and cash equivalents Cash and cash equivalents are financial assets that are either cash or highly liquid investments with an original maturity term of 90 days or less. At December 31, 2019, the Company's cash equivalents primarily consist cash in various financial institutions. Fair Value of Financial Instruments The Company follows the provisions of Accounting Standards Codification ("ASC") 820, Fair Value Measurements and Disclosures ("ASC 820"). It clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1-Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2-Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3-Inputs are unobservable inputs which reflect the reporting entity's own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. The carrying amounts reported in the accompanying consolidated balance sheets for cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued expenses and other payables, due to related parties, deferred revenue and income tax payable approximate their fair value based on the short-term maturity of these instruments. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable consists principally of amounts due from trade customers. Credit is extended based on an evaluation of the customer's financial condition and collateral is not generally required. The Company maintains allowances for doubtful accounts for estimated losses from the receivable amount that cannot be collected. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, a customer's historical payment history, its current credit-worthiness and current economic trends. In determining these estimates, the Company examines historical write-offs of its receivables and reviews each client's account to identify any specific customer collection issues. Management believes that the accounts receivable are fully collectable. Therefore, no allowance for doubtful accounts is deemed to be required on its accounts receivable at December 31, 2019 and 2018. The Company historically has not experienced uncollectible accounts from customers granted with credit sales. Cost method investment Investments in which the Company does not have the ability to exercise significant influence and does not have any control (generally 0-20 percent ownership), are accounted for under the cost method of accounting and are included in the long-term assets on the consolidated balance sheets. The Company evaluates its cost method investment whenever events or changes in circumstance indicate that the carrying amounts of such investment may be impaired. If a decline in the value of a cost method investment is determined to be other than temporary, a loss is recorded in the current period. Equity method investment Investments in which the Company has the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting and are included in the long-term assets on the consolidated balance sheets. Under this method of accounting, the Company's share of the net earnings or losses of the investee is presented below the income tax line on the consolidated statements of operations. The Company evaluates its equity method investment whenever events or changes in circumstance indicate that the carrying amounts of such investment may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in the current period. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. Identifiable significant improvements are capitalized and expenditures for maintenance, repairs, and betterments, including replacement of minor items, are charged to expense. Depreciation is computed based on cost, less the estimated residual value, if any, using the straight-line method over the estimated useful life. The residual value rate and useful life of property and equipment are summarized as follows: Property and Equipment Residual value Useful life Electronic equipment 5 % 3 years Office equipment 5 % 5 years Business Acquisition A contingency should be recognized at its acquisition date fair value if that value can be determined. (The guidance in Topic 820 is used to determine fair value). If the acquisition-date fair value of contingency cannot be determined, then an asset or liability is recognized for the contingency if it's probable at the acquisition date that such asset or liability exists and if its amount is reasonable estimable. A contingency is not recognized for a contingency in the accounting for a business combination if: a) its fair value cannot be determined and b) the probable and reasonably estimate criteria are not met. Instead, the contingency is disclosed and accounted for subsequent to the acquisition date in accordance with Topic 450. Pursuant to the Acquisition Agreement, the contingent consideration consisted of compensatory arrangement for services to be performed by the officers of the acquiree, and such amounts are to be determined in the future by both parties; therefore the fair value cannot be determined at the acquisition date. The Company as an acquirer did not recognize a liability at the acquisition date. Goodwill and Other Intangible Assets Goodwill arises from business acquisition and is generally determined as the excess of fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquire, over the fair value of the nets assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently in events and circumstances exists that indicate that a goodwill impairment test should be performed. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our balance sheet. Acquired intangible assets other than goodwill with finite lives are stated at cost less accumulated amortization if there is any. Intangible assets mainly represent the domain name at cost, less accumulated amortization on a straight-line basis over an estimated life of ten years. Intangible Asset Residual value Useful life AGM domain 0 % 10 years Impairment of Long-lived Assets In accordance with ASC Topic 360, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset's estimated fair value and carrying amount. Lease Commitments On January 1, 2019, the Company adopted Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02), as amended, which supersedes the lease accounting guidance under Topic 840, and generally requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use (ROU) assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. The Company determined if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ("ROU") assets and short and long-term lease liabilities in our consolidated balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in our consolidated balance sheets. As of adoption of ASC 842 and as of January 1, 2019, the adoption did not have an impact on the Company s financial statements as the Company did not commitment any lease that are over twelve months at time of adoption. Revenue Recognition The Company adopted Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers ("ASC 606") for all years presented. The core principle of this new revenue standard is that a company should recognize revenue when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle by the Company in its determination of revenue recognition: ● Step 1: Identify the contract(s) with the customer; ● Step 2: Identify the performance obligations in the contract; ● Step 3: Determine the transaction price; ● Step 4: Allocate the transaction price to the performance obligations in the contract; and ● Step 5: Recognize revenue when or as the Company satisfies a performance obligation. The Company is a software developer, engaging in the development and sale of enterprise application software, including accounting software and ERP software, and the software-related after-sales services in the PRC. Its mission is to provide easy-to use and effective solutions to minimize error, comply with the increasing regulatory complexity, accommodate transactions volumes of businesses of various sizes, and thus streamlining their accounting and finance operations. The transaction price is allocated to each performance obligation on a relative standalone selling price basis. The transaction price allocated to each performance obligation is recognized when that performance obligation is satisfied, at a point in time or over time as appropriate. The Company derives revenue from the sale of the following three items: (1) packaged software products, (2) technical support plans, (3) software customization services, and bundle of products or services that may include a combination of these items. We enter into contracts with customers that include promises to transfer various products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized when the promised goods or services are transferred to customers, in an amount that reflects the consideration allocated to the respective performance obligation. We recorded and recognized revenues from both products and services in one account, which we present as revenues and revenues from related parties in the accompanying consolidated statements of operations and comprehensive income. Nature of Products and Services (1) Software Products The Company's packaged software products consist of accounting products, Anyiwang V series, E series and G series, and other audit assistance and information management products under the Anyiwang brand. Each packaged software product includes a perpetual software license and a one-year technical support plan. Revenue is recognized at a point in time upon the delivery of the perpetual license, and in a period of time throughout the effective period for the technical support plan, which generally is recognized over twelve month period. (2) Technical Support Plans The Company sells our technical support plan either as a package with our sale of software products or separately on its own. Each technical support plan has a unified effective period of one year. Revenue is recognized in a period of time throughout the effective period for the technical support plan, generally is recognized over twelve month period. (3) Software Customization Services The Company delivers its software customization services by developing customized features on the AnyiWang software products to suit customers' special needs. Upon receiving the purchase request from the customers, the Company designs, develops, tests, and implements the specified features to our software products. The Company also includes a one-year technical support plan specifically for the developed feature(s). Customers are able to request and purchase the service together with a purchase of our software product, or separately if the customer has our software products in-use. Revenue is recognized at a point in time upon customers' acceptance of the feature(s), and revenue for the technical support plan is recognized over its service term, which generally is for twelve month period. The Company reports revenues net of applicable sales taxes and related surcharges. Costs of Revenues Our cost of revenues has two components: (1) cost of product revenue, which includes direct costs of software products; labor costs and employee benefits for software development, data testing, bug fixes and hacker prevention; research and development expenses (2) cost of services and other revenue, which reflects direct costs associated with providing services, including data center and support costs related to delivering online services. Operating Leases The Company determines if an arrangement is a lease upon inception. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The right to control the use of an asset includes the right to obtain substantially all of the economic benefits of the underlying asset and the right to direct how and for what purpose the asset is used. Upon adoption of ASU 2016-02 and related standards, operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The discount rate used to calculate present value is the Company's incremental borrowing rate or, if available, the rate implicit in the lease. The Company includes options to renew the lease as part of the right of use lease asset and liability when it is reasonably certain the Company will exercise the option. The Company also takes into considerations when certain lease contains fair value purchase and termination options with an associated penalty. The Company reviews all leases for capital or operating classification at their inception. The Company uses its incremental borrowing rate in the assessment of lease classification and define the initial lease term to include the construction build-out period but to exclude lease extension periods. We conduct our operations primarily under operating leases as of adoption of ASC 842 and as of January 1, 2019, the adoption did not have an impact on the Company's s financial statements as the Company did not commitment any lease that are over twelve months at time of adoption. Research and Development Expenses Research and development costs are expensed as incurred. The costs primarily consist of the wage expenses incurred to continuously improve and upgrade the Company's services. Research and development expenses of the years ended December 31, 2019, 2018 and 2017 were $127,117, $1,028,249 and $398,188, respectively. Income Taxes The Company is governed by the Income Tax Law of the PRC, Inland Revenue Ordinance of Hong Kong and the U.S. Internal Revenue Code of 1986, as amended. The Company accounts for income taxes using the asset/liability method prescribed by ASC 740, "Accounting for Income Taxes." Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date. The Act has caused the Company's deferred income taxes to be revalued. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through income tax expense. Pursuant to the guidance within SEC Staff Accounting Bulletin No. 118 ("SAB 118"), as of December 31, 2017, the Company recognized the provisional effects of the enactment of the Act for which measurement could be reasonably estimated. Since the Company has provided a full valuation allowance against its deferred tax assets, the revaluation of the deferred tax assets did not have a material impact on any period presented. The ultimate impact of the Act may differ from these estimates due to the Company's continued analysis or further regulatory guidance that may be issued as a result of the Act. The Company applied the provisions of ASC 740-10-50, "Accounting for Uncertainty in Income Taxes," which provides clarification related to the process associated with accounting for uncertain tax positions recognized in the Company's financial statements. Audit periods remain open for review until the statute of limitations has passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Company's liability for income taxes. Any such adjustment could be material to the Company's results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. As of December 31, 2019 and 2018, the Company had uncertain tax positions accrued during 2017, and will continue to evaluate for uncertain positions in the future. Value Added Tax Jiangsu AnYiWang is subject to the PRC's Value Added Tax ("VAT") of 6% for providing sale of packaged software products, technical support plans, software customization services. The subsidiaries of Jiangsu AnYiWang, including Beijing AnYiWang, Changzhou AnYiWang, Lianyungang AnYiWang, Tongshan Naquan and Hubei AnYiWang, which are in the Republic of China ("PRC") and are subject to a Value Added Tax ("VAT") of 3% for providing sale of packaged software products, technical support plans, software customization services. The amount of VAT liability is determined by applying the applicable tax rate to the invoiced amount of software service provided. The Company reports revenue net of PRC's VAT for all the periods presented in the accompanying consolidated statements of operations. Comprehensive Income ASC 220 "Comprehensive Income" established standards for reporting and display of comprehensive income, its components and accumulated balances. Components of comprehensive income include net income and foreign currency translation adjustments. For the years ended December 31, 2019, 2018 and 2017, the only component of accumulated other comprehensive income was foreign currency translation adjustments. Related Party Transactions A related party is generally defined as (i) any person and or their immediate family hold 10% or more of the company's securities (ii) the Company's management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. The Company conducts business with its related parties in the ordinary course of business. Related parties may be individuals or corporate entities. Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts due from/to related parties due to their related party nature. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk are cash and cash equivalents, transaction monetary assets held for clients, mark to market assets for open trading positions, and accounts receivable arising from its normal business activities. The Company places its cash in what it believes to be credit-worthy financial institutions or trading platforms. The Company routinely assesses the financial strength of the customer 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. Reclassification Certain prior year amounts have been reclassified to conform to the current period presentation. These reclassifications had no impact on the net earnings and financial position. Earnings per Ordinary Share Basic earnings per ordinary share is computed by dividing net earnings attributable to ordinary shareholders by the weighted-average number of ordinary shares outstanding during the period. Diluted earnings per share is computed by dividing net income attributable to ordinary shareholders by the sum of the weighted-average number of ordinary shares outstanding and dilutive potential ordinary shares during the period. Selling and Marketing Selling and marketing costs are related to promoting, advertising, and other marketing activities, and are expensed as incurred. For the years ended December 31, 2019 and 2018, the advertising expenses were $0 and $91,468, respectively. Segment Reporting The Company uses the "management approach" in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company's chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company's reportable segments. The Company's chief operating decision maker has been identified as the chief executive officer of the Company who reviews financial information of separate operating segments based on U.S. GAAP. The chief operating decision maker now reviews results analyzed by customer. This analysis is only presented at the revenue level with no allocation of direct or indirect costs. Consequently, the Company has determined that it has only one operating segment. Recently Issued Accounting Pronouncements In October 2018, the FASB issued ASU 2018-17, Targeted Improvements to Related Party Guidance for Variable Interest Entities, that changes the guidance for determining whether a decision-making fee paid to a decision makers and service providers are variable interests. The guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, with early adoption permitted. We will adopt this standard on its effective date of January 1, 2020. We do not expect the adoption of this ASU to have a material impact on our consolidated financial position, results of operations, cash flows, or presentation thereof. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. We will adopt this standard on its effective date of January 1, 2020. We are currently evaluating the impact of this ASU on our financial position, results of operations, cash flows, or presentation thereof. In August 2018, the FASB issued ASU 2018-13 to modify the disclosure requirements on fair value measurements. The amendments are effective beginning after December 15, 2019. An entity is permitted to early adopt any removed or modified disclosures and delay adoption of the additional disclosures until the effective date. Most amendments should be applied retrospectively, but certain amendments will be applied prospectively. The Company is in the process of assessing the impact of the standard on the Company's fair value disclosures. However, the standard is not expected to have an impact on the Company's consolidated financial position, results of operations and cash flows. A variety of proposed or otherwise potential accounting standards are currently under study by standard setting organizations and various regulatory agencies. Due to the tentative and preliminary nature of those proposed standards, we have not determined whether implementation of such proposed standards would be material to our consolidated financial statements. |
Going Concern
Going Concern | 12 Months Ended |
Dec. 31, 2019 | |
Ordinary Shares Issued With Proceeds Not Received | |
GOING CONCERN | Note 3 - GOING CONCERN Substantial doubt about the Company's ability to continue as a going concern exists when conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued. Our current operating results indicate that substantial doubt exists related to the Company's ability to continue as a going concern. Management's plans include attempting to improve its business profitability, its ability to generate sufficient cash flow from its operations to meet its operating needs on a timely basis, obtain additional working capital funds through debt and equity financings, and restructure on-going operations to eliminate inefficiencies to raise cash balance in order to meet its anticipated cash requirements for the next twelve months from the date of this report. However, we cannot predict, with certainty, the outcome of our actions to generate liquidity, including the availability of additional debt financing, or whether such actions would generate the expected liquidity as currently planned. |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
BUSINESS ACQUISITIONS | Note 4 - BUSINESS ACQUISITIONS On July 26, 2019 ("the Acquisition Date"), the Company completed the acquisition of 100% of the issued and outstanding capital stock of Anyi Network from its shareholders pursuant to the terms and conditions of a Share Exchange Agreement (the "Acquisition Agreement") entered into among the Company and Anyi Network's shareholders. In connection with the Acquisition Agreement, AGM Holdings acquired 100% of the equity of Anyi and pay $400,000 in cash and issue an aggregate of 475,000 duly authorized, fully paid and nonassessable Class A ordinary shares of the Company, valued at $16.00 per share to the shareholders of Anyi. The total consideration underlying the Share Exchange shall be $8,000,000. This is referred to herein as the "the Acquisition". The Acquisition has been accounted for as a business combination, under the acquisition method of accounting, which results in acquired assets and assumed liabilities being measured at their fair values as of the Acquisition Date. As of the Acquisition Date, goodwill is measured as the excess of consideration transferred, which is also generally measured at fair value of the net acquisition date fair values of the assets acquired and liabilities assumed. Based upon the purchase price allocations, the following table summarizes the estimated fair value of the assets acquired and liabilities assumed at the Acquisition Date: Cash $ 553,633 Accounts receivable, net 210,036 Contract assets 511,096 Other current assets 6,618 Property and equipment 17,825 Total assets acquired at fair value 1,299,208 Accounts payable (59 ) Contract liabilities (80,168 ) Other current liabilities (16,121 ) Other payables (252,343 ) Accrued salaries and benefits (72,229 ) Total liabilities assumed (420,920 ) Net assets acquired 878,288 Goodwill 7,121,712 Total purchase price $ 8,000,000 The consolidated financial statements for the year ended December 31, 2019 including the operations of Anyi from the Acquisition Date through December 31, 2019. The following information summarizes the results of operations attributable to the acquisition of Anyi included in the Company's consolidated statement of operations since the Acquisition Date: Years Ended December 31, 2019 Net revenues $ 379,631 Net loss $ (24,827 ) Pro Forma Financial Information The following unaudited pro-forma financial information for the year ended December 31, 2019, 2018 and 2017 give effects to our acquisition of Anyi as if the acquisition had occurred on January 1, 2017: Years Ended December 31, 2019 2018 Revenues $ 1,177,193 $ 6,496,619 Net (loss) income (1,419,345 ) (7,549,204 ) Net (loss) income per common share - basic and diluted (0.06 ) (0.36 ) Weighted average shares used in computing net outstanding net loss per share of common share, basic and diluted 21,289,540 20,951,074 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | Note 5 - DISCONTINUED OPERATIONS On September 5, 2018, the Company sold 90% equity of wholly owned subsidiary AGM Holdings incorporated AGM Group Ltd ("AGM Belize")to Mr. Zhentao Jiang (the "Buyer"), a related party, at a sales price of $450,000 (the "Transfer Price"). Pursuant to an equity transfer agreement, the Buyer shall pay the Transfer Price in available cash to the seller's designated bank account. A 20% initial payment shall be paid by the Buyer within five working days upon the signing of the equity transfer agreement. A 30% shall be paid by the Buyer after the completion of legal and financial due diligence, and the remaining 50% shall be paid after the approval by The International Business Company Registry of Belize. Prior to September 5, 2018, AGM Belize engaged in the forex trading brokerage service with a license provided by the International Financial Services Commission of Belize ("IFSC") under the license number IFSC/60/448/FX/17 (the "IFSC License"). It also provided its users with trading in spot precious metals and spot oil as these commodities are conventionally categorized as spot forex. The Company also operated a social trading network platform under AGMTrade, on which users were able to participate in various trading programs through brokerage services offered by AGM Belize. In June 2018, the local government of the People's Republic of China initiated certain policy change that it would no longer support forex-trading related business in China. As a result, access to certain accounts holding of the funds deposits payable have been held in constrain by local regulators due to this policy change. The Company voluntarily ceased its forex trading brokerage business and suspended such activities on AGMTrade, a social network platform operated by other subsidiaries of the Company, as they would fall within the scope of the government initiative. Pursuant to equity transfer agreement dated September 5, 2018, AGM Belize has ceased to be a wholly-owned subsidiaries of the Company. Additionally, the Company has ceased to provide forex trading brokerage business. As a result, the Company's current shareholders will no longer benefit from any increase in the value, nor will they bear the risk of any decrease in the value, of the forex trading brokerage business. Pursuant to ASC Topic 205-20, Presentation of Financial Statements - Discontinued Operations, the results of operations for the years ended December 31, 2019 and 2018 from AGM Belize have been classified to loss from discontinued operations line on the accompanying consolidated statements of operations and comprehensive loss presented herein. The assets and liabilities also have been classified as discontinued operations in the Company's consolidated financial statements as of December 31, 2019 and 2018. As of December 31, 2019 and 2018, the Company did not have any assets and liabilities in the discontinued operations. The summarized operating result of discontinued operation included in the Company's consolidated statements of operation consist of the following: Years Ended December 31, 2019 2018 2017 Revenues $ - $ 486,244 $ 315,194 Cost of revenues - 400,513 392,671 Gross profit - 85,732 (77,477 ) Operating expenses - (11,844,769 ) (562,559 ) Other income (expenses), net - 60,499 120,394 Loss before income tax - (11,698,538 ) (519,642 ) Income tax expense - - - Loss from discontinued operation - (11,698,538 ) (519,642 ) Gain from disposal, net of tax - 5,072,068 - Total loss from discontinued operations, net of income taxes $ - $ (6,626,470 ) $ (519,642 ) The Company recognized impairment loss on intangible assets of $2,711,535 when the Company decided to discontinue AGM Belize's operation in fiscal 2018. The Company realized a gain of $450,000 from the disposal of 90% equity of AGM Belize with an investment cost basis of $0. The Company also realized a gain of $4,172,068 resulted from 90% of liabilities being assumed by the acquirer pursuant to the equity transfer agreement. Together, the Company recognized a total gain on disposal of operation of $5,072,068 for the year ended December 31, 2018 and recognized the remaining 10% equity in AGM Belize under cost method investment. On April 16, 2019, AGMTrade UK LTD ("AGM UK"), a wholly owned subsidiary incorporated on July 18, 2017, was dissolved under the law of England and Wales. As the result, AGM UK had ceased business activities, no gain or loss was realized for the year ended December 31, 2019. On November 20, 2019, AGM Trade Global PTY LTD ("AGM Australia"), a wholly owned subsidiary incorporated on July 25, 2017, was dissolved under the law of Australia. As the result, AGM Australia had ceased business activities, no gain or loss was realized for the year ended December 31, 2019. On October 8, 2019, AGM Holdings transferred its 100% ownership of AGMClub Service Limited ("AGMClub"), a Hong Kong company incorporated on August 14, 2017, for total considerations of $971. As the result, the Company realized loss of $319 for the year ended December 31, 2019, and recognized no gain or loss on the disposal. On August 15, 2019, AGM Global Asset Management Limited ("AGM Global"), a wholly owned subsidiary acquired on May 24, 2018, was dissolved under the law of Cayman Islands. As the result, the AGM Global had ceased business and realized loss of $16,537. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE, NET | Note 6 - ACCOUNTS RECEIVABLE, NET Accounts receivable, net, consist of the following: December 31, December 31, Accounts receivable $ 66,535 $ 923,217 Less: allowance for doubtful accounts and write-offs - (923,217 ) Accounts receivable, net $ 66,535 $ - The changes in allowance for doubtful accounts consist of the following: December 31, December 31, Balance, beginning of the year $ 923,217 $ 35,000 Provision for doubtful accounts - - Uncollectible receivables written-off 923,217 888,217 Balance, end of the year $ - $ 923,217 The Company did not reserve any allowance for doubtful account during fiscal 2019 as the Company maintains a strict credit policy and the Company's sales arrangement usually requires advanced payment since fiscal 2018. The Company determined write-offs all the accounts receivables as of December 31, 2018. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | Note 7 - Prepaid expenseS and Prepaid expenses and other current assets consist of prepaid expenses, other receivables, and deposits. Prepaid expenses principally include rent prepayments and prepaid expenses. Deposits principally include license deposit and rent deposits. As of December 31, 2019 and 2018 prepaid expenses and other current assets consisted of the following: December 31, December 31, Prepaid expenses $ 31,953 $ 383,053 Advance deposit for intent acquisition * 4,937,664 - Deposits and others 192,596 149,236 Total prepaid expenses and other current assets $ 5,162,213 $ 532,289 * The Company entered into a letter of intent of equity acquisition with Yushu Kingo City Real Estate Development Co., Ltd. ("Yushu Kingo") on February 26, 2019. Pursuant to the Letter of Intent, the Company intended to acquire 100% of Yushu Kingo's equity by issuing new shares and using cash. The acquisition price will be subject to an audit report of a qualified auditing firm and further determined by the Company and Yushu Kingo upon completion of due diligence by the Company and necessary regulatory approval. The proposed transaction is also subject to a definitive share purchase agreement to be negotiated between the two parties, as well as other customary closing conditions. Refer to Note 19. The Company wrote-off other receivables in the amount of $16,856 and $0 for the years December 31, 2019 and 2018, respectively. Other receivables prior to dissolutions for AGMClub and AGM Global were $319 and $16,537, respectively. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | Note 8 - INVESTMENTS Investment Valuation The Company continually reviews its investments to determine whether a decline in fair value below the carrying value is other than temporary. The primary factors the Company considers in its determination are the length of time that the fair value of the investment is below the Company's carrying value; the financial condition, operating performance and the prospects of the equity investee; and other company specific information such as industry data, general economic conditions, cash flows forecasts or any recent financing rounds. If the decline in fair value is deemed to be other than temporary, the carrying value of the equity investee is written down to fair value. Cost method of investments On September 5, 2018, the Company sold 90% equity of its subsidiary AMG Belize and recognized the remaining 10% equity in AGM Belize under cost method of investment in the amount of $0 as its initial investment was immaterial. The Company evaluates its cost method investments in accordance to ASC 325-20-35. Impairment charges in connection with its cost method investments were $0 for the year ended December 31, 2019. The carrying amount of the investment was $0 at December 31, 2019. Equity method of investments On August 8, 2018, AGM Beijing entered into an investment agreement with the shareholders of Guochuang Shenzhen Investment Co. Ltd. ("Guochuang") to invest RMB2,500,000 (approximately $365,802 at August 8, 2018) in Guochuang's equity, for which AGM Beijing received a 20% interest. AGM Beijing made the full payment on August 5, 2018. Guochuang was incorporated under the laws of People's Republic of China. Yufeng Mi, Chief Technology Officer of the Company, held 40% and 32% of Guochuang's interest before and after AGM Beijing's investment, respectively. From August 8, 2018 to December 31, 2018, the Company recognized loss from Guochuang in the amount of $35,174 (RMB 232,665). At December 31, 2018, Guochuang's assets consisted of cash, prepaid expense and other current and fixed assets of approximately $160,000, $34,000, $2,000 and $16,000, respectively, and had total liabilities of approximately $7,000. The Company evaluates its equity method investments in accordance to ASC 325-20-35. Impairment charges in connection with its cost method investments were $0 for the year ended December 31, 2018. The carrying amount of the investment was $341,045 at December 31, 2018. During the year ended December 31, 2019, the Company sold its investment back to the shareholders of Guochuang and received RMB2,500,000 (approximately $361,721) as return on investment, the Company recognized the recovered loss of $33,684 (RMB 232,665) as other income for the year ended December 31, 2019. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | Note 9 - PROPERTY AND EQUIPMENT, NET As of December 31, 2019 and 2018, property and equipment, net consisted of the following: December 31, December 31, Electronic equipment $ 197,580 $ 174,444 Office equipment 24,123 15,240 Total property and equipment 221,703 189,684 Less: accumulated depreciation (146,312 ) (91,751 ) Total property and equipment, net $ 75,391 $ 97,933 Depreciation expenses for the fiscal years ended December 31, 2019, 2018 and 2017 were $57,631, $53,697 and $30,349, respectively. There was no impairment recorded for these property and equipment for the years ended December 31, 2019, 2018 and 2017. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | Note 10 - INTANGIBLE ASSETS, NET As of December 31, 2019 and 2018, intangible assets, net consisted of the following: December 31, December 31, AGM domain names $ 14,800 14,800 Total intangible assets 14,800 14,800 Less: accumulated amortization (3,207 ) (1,727 ) Total intangible assets, net $ 11,593 $ 13,073 For the fiscal years ended December 31, 2019, 2018 and 2017, amortization expenses amounted to $1,480, $328,983 and $216,180, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | Note 11 - GOODWILL The Company recognized goodwill in the amount of $7,121,712 which represents the amount of total consideration transferred in excess of the fair value assigned to identifiable assets acquired and liabilities assumed in a business acquisition. The Company performed testing of goodwill impairment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value. Significant judgments required to estimate the fair value of reporting units include estimating future cash flows, determining appropriate discount rates and other assumptions. Based on the assessments, the Company did not recognize an impairment of its goodwill for the year ended December 31, 2019. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | Note 12 - RELATED PARTY TRANSACTIONS Related parties of the Company consist of the following: Name of Related Party Nature of Relationship Zhentao Jiang Director and principal shareholder Wenjie Tang Chief Executive Officer ("CEO"), Director, and shareholder Bin Cao Chairman of the Board Yufeng Mi Chief Technical Officer ("CTO") and shareholder Bin Liu Former Chief Risk Officer ("CRO") Guofu Zhang Chief Financial Officer ("CFO") Chengchun Zhang Chief Operational Officer ("COO") and principal shareholder Haiyan Huang Legal representative of Lianyunagan AnYiWang Zhenhua Li Legal representative of Hubei AnYiWang IIG Ltd. Company under common control of Zhentao Jiang Firebull Holdings Limited Company under common control of Wenjie Tang and Bin Cao Nanjing Yunxinhe Software Technology Co., Ltd. Company formerly controlled by Zhentao Jiang and still significantly influenced by Zhentao Jiang Beijing Maiteke Technology Co., Ltd. Company where Wenjie Tang assumed a key management position Northnew Management Limited Company under common control of Zhentao Jiang i) Revenues from related party and accounts receivable from related party The Company provides technical support service to IIG Ltd. For the years ended December 31, 2019, 2018 and 2017, the Company generated related party revenues from IIG Ltd. in the amount of $0, $1,240,708 and $2,170,838, respectively. The related party accounts receivable with IIG Ltd. amounted to $0, $0, and $172,237 as of December 31, 2019, 2018 and 2017, respectively. (ii) Acquisition and Dissolution of AGM Global Asset Management Ltd. On May 25, 2018, the Company purchased AGM Global Asset Management Ltd from a third-party entity which was owned by two related parties, Mr. Wenjie Tang and Mr. Yufeng Mi. On August 15, 2019, AGM Global Asset Management Ltd was dissolved and the Company recognized a loss in the amount of $16,537 for the year ended. (iii) Due to related parties The Company mainly finance its operations through proceeds borrowed from related parties. As of December 31, 2019 and 2018, due to related parties consisted the following: December 31, December 31, Zhentao Jiang $ 607,349 $ 1,307,264 Wenjie Tang - 11,318 Guofu Zhang 117,155 29,399 Others 381 - Total $ 724,885 $ 1,347,981 The balance of due to related parties represents expenses incurred by related parties in the ordinary course of business and expenses paid by related parties on behalf of the Company. These amounts are interest free, unsecured and repayable on demand. For the year ended December 31, 2019, Zhentao Jiang, Guofu Zhang, Wenjie Tang and their related companies paid operating expenses on behalf of the Company of $61,864. For the year ended December 31, 2018, Zhentao Jiang, Wenjie Tang, Guofu Zhang, and Bin Liu paid operating expenses on behalf of the Company of $419,645. From time to time, the Company borrowed $109,679, $8,581,150, and $4,032,044 from related parties in the years ended December 31, 2019, 2018 and 2017, respectively, and repaid $636,008, $6,837,611, and $6,826,231 in the years ended December 31, 2019, 2018 and 2017, respectively. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Information [Abstract] | |
SEGMENT INFORMATION | Note 13 - SEGMENT INFORMATION The Company disaggregated its revenues into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. The Company derives revenue from the sale of the following three items: (1) packaged software products; (2) technical support plans; and (3) software customization services. All of the Company's long-lived assets are located in the PRC. The Company and its subsidiaries do not have long-lived assets in the United States for the reporting periods. Revenues from products and services, and gross profit are as follows: For the Years Ended December 31, 2019 2018 Segment revenue: Packaged software products $ 83,163 $ - Technical support plans 488,616 5,112,520 Software customization services 137,851 - Total revenue from continued operations 709,630 5,112,520 Total revenue from discontinued operations - - Gross profit $ 466,686 $ 5,112,520 |
Income Tax
Income Tax | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | Note 14 - INCOME TAX British Virgin Islands ("BVI") Under the tax laws of BVI, AGM Holdings and AGM Software are not subject to tax on income or capital gain. In addition, payments of dividends by the Company to their shareholders are not subject to withholding tax in the BVI. Hong Kong Under the tax laws of Hong Kong, Anyi Technology, AGM HK and AGMClub are subject to tax at 16.5% on the assessable profits arising in or derived from Hong Kong or 8.25% if the net profit under $2,000,000 for 2019 and beyond., and allowed to offset their future tax taxable income with taxable operating losses with carried forward indefinitely. United Kingdom Under the tax laws of United Kingdom, AGM UK is subject to tax at 19% on the assessable profits arising in or derived from United Kingdom, and allowed to offset their future tax taxable income with taxable operating losses with carried forward in a 2-year period. AGM UK has incurred net loss for the years ended December 31, 2018 and 2019. Australia Under the tax laws of Australia, AGM Australia is subject to tax at 27.5% on the assessable profits arising in or derived from Australia, and taxable operating loss incurred by companies incorporated in Australia are allowed to be carried forward indefinitely. AGM Australia has incurred net loss for the years ended December 31, 2018 and 2019. Cayman Islands Under the tax laws of Cayman Islands, AGM Global and Anyi Network are not subject to tax on income or capital gain. In addition, payments of dividends by such entities to their shareholders are not subject to withholding tax in Cayman Islands. China, PRC On March 16, 2007, the National People's Congress passed the Enterprise Income Tax Law ("the China EIT Law"), which was effective as of January 1, 2008. Companies incorporated in the PRC are allowed to offset future tax taxable income with taxable operating losses carried forward in a 5-year period. The China EIT Law also provides that an enterprise established under the laws of foreign countries or regions but whose "de facto management body" is located in the PRC be treated as a resident enterprise for PRC tax purpose and consequently be subject to the PRC income tax at the rate of 25% for its worldwide income. The Implementing Rules of the China EIT Law merely defines the location of the "de facto management body" as "the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, properties, etc., of a non-PRC company is located." On April 22, 2009, the PRC State Administration of Taxation further issued a notice entitled "Notice regarding Recognizing Offshore-Established Enterprises Controlled by PRC Shareholders as Resident Enterprises Based on Their place of Effective Management." Under this notice, a foreign company controlled by a PRC company or a group of PRC companies shall be deemed as a PRC resident enterprise, if (i) the senior management and the core management departments in charge of its daily operations mainly function in the PRC; (ii) its financial decisions and human resource decisions are subject to decisions or approvals of persons or institutions in the PRC; (iii) its major assets, accounting books, company sales, minutes and files of board meetings and shareholders' meetings are located or kept in the PRC; and (iv) more than half of the directors or senior management personnel with voting rights reside in the PRC. Based on a review of surrounding facts and circumstances, the Company believe that there is an uncertain tax position as to whether its operations outside of the PRC will be considered a resident enterprise for PRC tax purposes due to limited guidance and implementation history of the China EIT Law. Should the Company be treated as a resident enterprise for PRC tax purposes, the Company will be subject to PRC tax on worldwide income at a uniform tax rate of 25%. The Company has evaluated this uncertain tax position and recorded a tax liability on the Consolidated Balance Sheet. The China EIT Law also imposes a withholding income tax of 10% on dividends distributed by a foreign invested enterprise to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident enterprise without any establishment or place within China or if the received dividends have no connection with the establishment or place of such immediate holding company within China, unless such immediate holding company's jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. Such withholding income tax was exempted under the previous income tax regulations. British Virgin Islands, where the Company is incorporated, did not have such tax treaty with China. AGM Beijing, AGM Tianjin, AGM Nanjing, Jiangsu AnYiWang, Beijing AnYiWang, Changzhou AnYiWang, Lianyungang AnYiWang, Tongshan Nanquan and Hubei AnYiWang are subject to 25% China statutory tax rate. AGM Beijing, AGM Tianjin, AGM Nanjing, Beijing AnYiWang, and Tongshan Nanquan incurred net loss for the year ended December 31, 2019, and AGM Beijing and AGM Tianjin incurred net loss for the year ended December 31, 2018. The provision for income taxes consisted of the following: For the Years Ended December 31, 2019 2018 2017 Current $ (123,001 ) 595,421 $ (1,300,894 ) Deferred - - - Total $ (123,001 ) 595,421 $ (1,300,894 ) The reconciliations of the statutory income tax rate and the Company's effective income tax rate are as follows: For the Years Ended December 31, 2019 2018 2017 HK statutory income tax rate 16.5 % 16.5 % 16.5 % Valuation allowance recognized with respect to the loss in the HK company (16.5 )% (16.5 )% (16.5 )% UK statutory income tax rate 19.0 % 19.0 % 19.0 % Valuation allowance recognized with respect to the loss in the UK company (19.0 )% (19.0 )% (19.0 )% Australian statutory income tax rate 27.5 % 27.5 % 27.5 % Valuation allowance recognized with respect to the loss in the Australian company (27.5 )% (27.5 )% (27.5 )% PRC statutory income tax rate 25.0 % 25.0 % 25.0 % Uncertain tax position 25.0 % 25.0 % 25.0 % Changes in valuation allowance for deferred tax asset (25.0 )% (25.0 )% (25.0 )% Total tax rate 25 % 25 % 25 % As of December 31, 2019 and 2018, the Company's subsidiaries had cumulative net operating loss carry-forwards of approximately $4,580,203 and $4,343,240, respectively, and will expire beginning in the year 2020. The Management believes that the Company's cumulative losses arising from recurring business of subsidiaries constituted significant strong evidence that most of the deferred tax assets would not be realizable and this evidence outweighed the expectations that the Company would generate future taxable income. As such, deferred tax assets arise from net operating losses are subject to full valuation allowance for the year ended December 31, 2019. The valuation allowance of $236,963 and $1,556,422 was recorded as of December 31, 2019 and 2018. The summary of cumulative net operating losses carried forward for the Company's subsidiaries in different regions is as follows: For the Years Ended December 31, Expiration Beginning in the 2019 2018 2017 Year PRC Region $ 424,478 $ 5,940,924 $ 1,964,000 2020 HK Region 338,255 340,902 875,122 Indefinitely UK Region - 1,102 1,000 2019 Australia Region - 53,063 17,887 Indefinitely Total cumulative net operating loss carry-forward $ 762,733 $ 6,335,990 $ 2,858,009 Components of the Company's net deferred tax assets are set forth below: December 31, December 31, December 31, 2019 2018 2017 Deferred tax assets: Net operating loss carry-forwards $ 236,963 $ 1,556,422 $ 640,504 Total of deferred tax assets 236,963 1,556,422 640,504 Less: valuation allowance (236,963 ) (1,556,422 ) (640,504 ) Net deferred assets $ - $ - $ - Accounting for Uncertainty in Income Taxes The Company and certain subsidiaries are established in various foreign countries with significant operations located in China. The Company might not be subject to PRC income tax and did not pay any income tax to PRC however it is uncertain as to whether the PRC tax authority may take different views about the Company's tax positions which may lead to additional tax liabilities. The tax authority of the PRC Government conducts periodic and ad hoc tax filing reviews on business enterprises operating in the PRC after those enterprises complete their relevant tax filings. Therefore, the Company's PRC entities' tax filings results are subject to change. It is therefore uncertain as to whether the PRC tax authority may take different views about the Company's PRC entities' tax filings, which may lead to additional tax liabilities. ASC 740 requires recognition and measurement of uncertain income tax positions using a "more-likely-than-not" approach. The management evaluated the company's tax position and recognized liabilities for uncertain tax positions for the years ended December 31, 2019, 2018 and 2017, and the period from inception (April 27, 2015) to December 31, 2015. This liability is included in Accrued expenses and other current liabilities on the Consolidated Balance Sheets. The activity of the unrecognized tax benefits related to the Company's uncertain tax positions is summarized as follows: For the Year Ended December 31, For the Year Ended December 31, For the Year Ended December 31, 2017 Gross beginning balance $ 1,483,745 $ 2,079,166 $ 783,382 Gross increase to tax positions in the current period 123,001 (595,421 ) 1,295,784 Gross increase to tax position in the prior period - - - Gross decrease to tax position in the prior period - - - Lapse of statute limitations - - - Gross ending balance $ 1,606,746 $ 1,483,745 $ 2,079,166 There were no interests and penalties in relation to the Company uncertain tax positions for the fiscal years ended December 31, 2019, 2018 and 2017. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Investments, All Other Investments [Abstract] | |
FINANCIAL INSTRUMENTS | Note 15 - FINANCIAL INSTRUMENTS Fair values The Company's financial instruments from continuing operations approximate include cash and cash equivalents and prepaid expenses and other current assets which approximate to fair value due to their short-term nature and include cash accounts. The Company's borrowings approximate fair value as the rates of interest are similar to what they would receive from other financial institutions. The carrying amounts of these financial assets and liabilities are a reasonable estimate of their fair values because of their current nature. The Company's financial instruments from discontinued operations include cash and cash equivalents, transaction monetary assets held for clients, mark to market assets for open trading positions, net accounts receivable, prepaid expenses and other current assets, accounts payable, deposits payable, mark to market liabilities for open trading positions, accrued expenses and other current liabilities, advance from customers, and income tax payable. The carrying amounts of these financial instruments are a reasonable estimate of their fair values because of their current nature. The following table summarizes the carrying values of the Company's financial assets and liabilities: December 31, December 31, Cash and cash equivalents of continuing operations $ 2,076,569 $ 7,696,699 Prepaid expenses and other current assets 5,162,213 532,289 Other assets of discontinued operations - - Other financial liabilities (i) 2,440,168 3,130,766 liabilities of discontinued operations $ $ - (i) Accounts payable, accrued expenses and other current liabilities, advance from customers, and income tax payable. The Company classifies its fair value measurements in accordance with the three-level fair value hierarchy as follows: Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities Level 2 – Inputs other than quoted prices that are observable for the asset or liability either directly (i.e. as prices) or indirectly (i.e. derived from prices), and Level 3 – Inputs that are not based on observable market data. The financial assets and liabilities carried at fair value on a recurring basis at December 31, 2019 are as follows: Level 1 Level 2 Level 3 Total Financial Assets Cash and cash equivalents of continuing operations $ 2,076,569 $ - $ - $ 2,076,569 Cash and cash equivalents of discontinued operations - - - - Other financial assets of continuing operations - - - - Other financial assets of discontinued operations - - - - Total Financial assets $ 2,076,569 $ - $ - $ 2,076,569 Financial Liabilities Other liabilities of continuing operations $ - $ - $ - $ - Other liabilities of discontinued operations - - - - Total Financial Liabilities $ - $ - $ - $ - The financial assets and liabilities carried at fair value on a recurring basis at December 31, 2018 are as follows: Level 1 Level 2 Level 3 Total Financial Assets Cash and cash equivalents of continuing operations $ 7,865,345 $ - $ - $ 7,865,345 Cash and cash equivalents of discontinued operations - - - - Other financial assets of continuing operations - - - - Other financial assets of discontinued operations - - - - Total Financial Assets $ 7,865,345 $ - $ - $ 7,865,345 Financial Liabilities Other liabilities of continuing operations $ - $ - $ - $ - Other liabilities of discontinued operations - - - - Total Financial Liabilities $ - $ - $ - $ - Interest rate and credit risk Financial instruments that potentially subject the Company to concentrations of credit risks consist principally of cash and cash equivalents, transaction monetary assets held for clients, mark to market assets for open trading positions, and net accounts receivable. The Company minimizes the interest rate and credit risk of cash by placing deposits with financial institutions located in Hong Kong and Mainland China. Credit risk of cash and cash equivalents is managed by depositing cash at global or PRC state-owned or renowned financial institutions where certain government regulations are in place to protect clients' cash balances. Credit risk from transaction monetary assets held for clients and mark to market assets for open trading positions encompasses the default risk of forex trading transaction. Management believes that there is no significant credit risk arising from the Company's financial instruments. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Note 16 - COMMITMENTS AND CONTINGENCIES Risk, Uncertainties, and Contingencies on Discontinued Operation Prior to June 2018, the Company's subsidiary AGM Group Ltd. ("AGM Belize") engaged in Forex Trading Brokerage business. The Company received total deposits of $82,922,858 as customers' investment funds that were kept in various third-party forex trading platform accounts China and Canada. In June 2018, the local government of the People's Republic of China initiated certain policy change that it would no longer support forex-trading related business in China. The policy required various third-party forex trading platform to shut down its business and restricted customers to access the investment funds deposited. As a result, the Company was not able to retrieve the funds held in these platform accounts to return to its former customers. On September 5, 2018, the Company disposed 90% of AGM Belize for $450,000 to Mr. Zhentao Jiang, a related party who is a director and principal shareholder of the Company. According to the equity transfer agreement, Mr. Zhentao Jiang will assume 90% assets and liabilities of AGM Belize and will be responsible to retrieve the investment funds to return to the Company's former customers. As of December 31, 2018, Mr. Zhentao Jiang retrieved and returned $2,320,023 in cash to the Company's former customers directly. Although the Company may not be responsible for losses caused by the discontinued operation of AGM Belize or responsible to retrieve and return the investment funds to these customers. However, the filing of a claim or commencement of any governmental investigation or proceeding against the Company or any of its affiliates, even if not justified, could create negative publicity and have a material adverse impact on the Company's operation. Should any of the allegations or claims arise, the Company operation could be adversely affected. Lease Commitments On April 15, 2016, the Company entered into a lease agreement with Yu Wang to lease a 187 square-meter office space, located at Room 2112, East Tower, VanPalace, No.1 Jinghua South Street, Chaoyang District, Beijing City, PRC. The lease starts from April 15, 2016 with a term of one year. According to the agreement, the rent is RMB25,000 (approximately $4,000) per month. On April 15, 2017, April 14, 2018 and April 4, 2019, this lease agreement was renewed to extend the term for one-year term with no change in rent charge, respectively. On November 15, 2016, the Company entered into a lease agreement with Gang Liu to lease a 186 square meters office space, located at Room 2111, East Tower, VanPalace, No.1 Jinghua South Street, Chaoyang District, Beijing City, PRC. The lease starts from December 5, 2016 with a term of six months ended on June 4, 2017. According to the agreement, the rent is RMB27,500 (approximately $4,000) per month. On May 10, 2017 and 2018, the Company renewed this lease agreement to extend the term for one year with no change in rent, respectively. On June 1, 2019, the Company renewed this lease agreement to extend the term for one year with no change in rent. After the acquisition of the Anyi, the Company took over the control of the following leases of Anyi: On October 25, 2017, the Company entered into a lease agreement with Xiaoyi Bai to lease a 194 square meters office space, located at 5-26 Jinshui Bay, Jintan City, PRC. The lease starts from November 1, 2017 and renew option with term of every one year (twelve months) to extend ended to December 31, 2020. According to the agreement, the rent is RMB8,500 (approximately $1,200) per month. After the acquisition, the Company terminated the lease during December 2019. On December 28, 2018, the Company entered into a lease agreement with Daqing Zhang to lease a 50 square meters office space, located at Room 501, Building 1, No. 46 Chaoyang West Road, Haizhou District, Lianyungang City, PRC. The lease starts from January 1, 2019 and renew option with term of every one year (twelve months) to extend ended to December 31, 2020. According to the agreement, the rent is RMB2,500 (approximately $1,000) per month. After the acquisition, the Company terminated the lease during December 2019. On April 9, 2019, the Company entered into a lease agreement with Beijing Zhongzhi Real Estate Co., Ltd. to lease a 95 square meters office space, located at Room 11B07, 10/F, No.11 Cheshuijing Alley, Dongcheng District, Beijing City, PRC. The lease starts from April 15, 2019 with a term of one year ended on April 14, 2020. According to the agreement, the rent is RMB15,500 (approximately $2,200) per month. The lease was terminated in July 2019. On May 25, 2019, the Company entered into a lease agreement with Gang Li to lease a 73 square meters office space, located at Room 1510, Building 5, No. 88 Jianguo Road, Chaoyang District, Beijing City, PRC. The lease starts from May 30, 2019 with a term of one year ended on May 29, 2020. According to the agreement, the rent is RMB11,300 (approximately $1,600) per month. On November 28, 2017, the Company entered into a lease agreement with International Peaceful Interests Ltd. to lease an office space, located at Room 1904, 19/F Jubilee Center, 18 Fenwick St., 46 Gloucester Road, Wanchai, Hong Kong. The lease term is from December 8, 2017 to December 7, 2019. According to the agreement, the rent is HK$48,136 (approximately $6,000) per month. The lease was terminated in May 2019. In addition, the Company is committed to bearing the expenses of dormitories, which are leased for the Company's employees. Rent expenses for the years ended December 31, 2019, 2018 and 2017 were $173,259, $447,363, and $728,843, respectively. The Company has future minimum lease obligations as of December 31, 2019 as follows: Commitment Year of 2020 $ 75,506 Year of 2021 18,957 Year of 2022 18,957 Year of 2023 4,308 Year of 2024 4,308 Thereafter 12,924 Less: lease commitments on terminations (134,960 ) Total $ - |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | Note 17 - STOCKHOLDERS' EQUITY The Company is authorized to issue 400,000,000 ordinary shares. 200,000,000 of the authorized shares have been designated as class A ordinary shares which confers upon the shareholder to right to one vote per share at a meeting of the shareholders of the Company or on any resolution of shareholders, equal share in any dividend paid by the Company, and an equal share in the distribution of the surplus assets of the Company on its liquidation. The remaining 200,000,000 authorized shares have been designated as class B ordinary shares which confers upon the shareholder to right to five votes per share at a meeting of the shareholders of the Company or on any resolution of shareholders. Shareholders of class B ordinary share in the Company shall not receive the right to any dividend paid by the Company or any distribution of the surplus assets of the Company in its liquidation. As of December 31, 2017 and 2016, 20,010,000 shares of class A ordinary share and 11,900,000 shares of class B ordinary shares were issued and outstanding, respectively. On February 15, 2018, a registration statement relating to the securities being sold in the initial public offering was declared effective by the Securities and Exchange Commission ("SEC"). The Company completed the initial public offering of its Class A ordinary shares on April 13, 2018, through the issuance of 1,306,055 Class A ordinary shares at a public offering price of $5.00 per share for net proceeds of $5,732,810. On July 26, 2019, the Company entered into Acquisition Agreement with Anyi Network and the shareholders of Anyi. In connection with the Acquisition Agreement, the Company acquired 100% of the equity of Anyi and pay $400,000 in cash and issue an aggregate of 475,000 duly authorized, fully paid and nonassessable Class A ordinary shares of the Company, valued at $16.00 per share to the shareholders of Anyi. In December 2019, the Company forfeited 4,800,000 shares of class B ordinary shares, 2,400,000 shares from Zhentao Jiang and 2,400,000 shares from Chengchun Zhang. Total value of those forfeited shares is $4,800. As of December 31, 2019, 21,791,055 shares of class A ordinary share and 7,100,000 shares of class B ordinary shares were issued and outstanding. |
Concentrations of Credit Risk a
Concentrations of Credit Risk and Major Customers and Suppliers | 12 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS AND SUPPLIERS | Note 18 - CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS AND SUPPLIERS Customers For the years ended December 31, 2019 and 2018, customers accounting for 10% or more of the Company's revenues were as follows: For the Years Ended Customers 2019 2018 IIG Ltd. (Related Party) - 24 % A 20 % 19 % B * 19 % C 13 % - * Less than 10% As of December 31, 2019, receivable balance from two customers accounted for 48% and 30%, respectively, of the total net accounts receivable from both related party and third parties. As of December 31, 2018, receivable balance from IIG Ltd. a related party of the Company, and four other customers accounted for 24%, 19%, 19%, 9% and 9%, respectively, of the total net accounts receivable from both related party and third parties. Suppliers For the years ended December 31, 2019 and 2018, suppliers accounting for 10% or more of the Company's purchases were as follows: For the Years Ended Suppliers 2019 2018 A - 10 % B - 15 % * Less than 10% As of December 31, 2019, one supplier accounted for 98% the Company's total current outstanding accounts payable, respectively. As of December 31, 2018, two suppliers accounted for 69% and 31% of the Company's total current outstanding accounts payable, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Note 19 - SUBSEQUENT EVENTS In January 2020, novel coronavirus ("COVID-19") has spread rapidly to many parts of China and other parts of the world. The epidemic has resulted in quarantines, travel restrictions, and the temporary closure of stores and facilities in China and elsewhere. Substantially all of the Group's revenue and workforce are concentrated in China. Consequently, the COVID-19 outbreak may materially adversely affect the Group's business operations and its financial condition and operating results for 2020, including but not limited to material negative impact to the Group's total revenues and significant downward adjustments or impairment to the Group's long-term assets. Because of the significant uncertainties surrounding the COVID-19 outbreak, the extent of the business disruption and the related financial impact cannot be reasonably estimated at this time. The Company's management has performed subsequent events procedures through the date the financial statements were available to be issued. There were no subsequent events requiring adjustment to or disclosure in the consolidated financial statements except for the following. On January 16, 2020, AGM Tianjin entered into an equity transfer agreement (the "Agreement") with all the shareholders ("Yushu Kingo Shareholders" and together with AGM Tianjin, the "Parties") of Yushu Kingo City Real Estate Development Co., Ltd. ("Yushu Kingo"), who collectively owns 100% of the equity interest in Yushu Kingo. Pursuant to the Agreement, in exchange for 100% of the equity interest in Yushu Kingo, AGM Tianjin agrees to pay $20,000,000 in cash (the "Cash Payment") and cause AGM Holdings to issue 2,000,000 Class A ordinary shares, valued at $15 per share, subject to the terms and conditions of the Agreement (the "Acquisition"). As of the date of this report, AGM Tianjin has made advance payments upon execution of a letter of intent and upon completion of due diligence (the "Advance Payments") of $4,937,664. The Parties has further agreed in the Agreement that the Advance Payments shall count towards the Cash Payment and that AGM Tianjin shall pay the remaining Cash Payment amount (the "Remaining Payment") to Yushu Kingo Shareholders if and only if Yushu Kingo sells no less than 15,000 square meters of real property or generates revenue of no less than RMB 150 million (approximately $21.6 million) during the 24 months after the closing of the Acquisition (the "Cash Payment Condition"). If Yushu Kingo fails to meet the Cash Payment Condition, Yushu Kingo shall return the Advance Payments to AGM Tianjin and AGM Tianjin is not obligated to make the Remaining Payment. The Acquisition is expected to close after all closing conditions are met, which include, among other things, completion of registration with local government authority and completion of auditing and appraisal. The Company is the process of dissolving Nanjing XinGaoMeng Software Technology Co., Ltd. ("AGM Nanjing"), an indirectly wholly owned subsidiary incorporated on September 28, 2016 under the law of PRC. AGM Beijing took over the clients and business relationships maintained by AGM Nanjing. |
Summary of Significant Polici_2
Summary of Significant Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company's year-end is December 31; as such the year ended December 31, 2019 is referred to as "fiscal 2019", the year ended December 31, 2018 is referred to as "fiscal 2018", and the year ended December 31, 2017 is referred to as "fiscal 2017". The accompanying consolidated financial statements are in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and pursuant to the U.S. Securities and Exchange Commission ("SEC") rules. The Company included all adjustments that are necessary for the fair presentation of our financial position, results of operations, and cash flows for the periods presented. This basis of accounting differs in certain material respects from that used for the preparation of the books of account of the Company, which are prepared in accordance with the accounting principles and the relevant financial regulations applicable to enterprises with limited liabilities established in the PRC ("PRC GAAP"), the accounting standards used in the places of their domicile. The accompanying consolidated financial statements reflect necessary adjustments not recorded in the books of account of the Company to present them in conformity with U.S. GAAP. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts for AGM Holdings and all its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Foreign Currency Translation | Foreign Currency Translation The accompanying consolidated financial statements are presented in United States dollar ("$"), which is the reporting currency of the Company. For the subsidiaries whose functional currencies are Renminbi ("RMB"), results of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the exchange rate at the end of the period, and equity is translated at historical exchange rates. The resulting translation adjustments are included in determining other comprehensive income or loss. Transaction gains and losses are reflected in the consolidated statements of income. The consolidated balance sheet balances, with the exception of equity at December 31, 2019, 2018 and 2017 were translated at RMB6.9630, RMB6.8764 and RMB6.5064 to $1.00, respectively. The equity accounts were stated at their historical rate. The average translation rates applied to consolidated statements of income and cash flows for the year ended December 31, 2019, 2018 and 2017 were RMB6.9074, RMB6.6146 and RMB6.7570 to $1.00, respectively. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities on the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. The Company bases its estimates and judgments on historical experience and on various other assumptions and information that are believed to be reasonable under the circumstances. Estimates and assumptions of future events and their effects cannot be perceived with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. Significant estimates and assumptions by management include, among others, useful lives and impairment of long-lived assets, allowance for doubtful accounts, and income taxes including the valuation allowance for deferred tax assets. While the Company believes that the estimates and assumptions used in the preparation of the financial statements are appropriate, actual results could differ from those estimates. Estimates and assumptions are periodically reviewed and the effects of revisions are reflected in the financial statements in the period they are determined to be necessary. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents are financial assets that are either cash or highly liquid investments with an original maturity term of 90 days or less. At December 31, 2019, the Company's cash equivalents primarily consist cash in various financial institutions. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company follows the provisions of Accounting Standards Codification ("ASC") 820, Fair Value Measurements and Disclosures ("ASC 820"). It clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1-Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2-Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3-Inputs are unobservable inputs which reflect the reporting entity's own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. The carrying amounts reported in the accompanying consolidated balance sheets for cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued expenses and other payables, due to related parties, deferred revenue and income tax payable approximate their fair value based on the short-term maturity of these instruments. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable consists principally of amounts due from trade customers. Credit is extended based on an evaluation of the customer's financial condition and collateral is not generally required. The Company maintains allowances for doubtful accounts for estimated losses from the receivable amount that cannot be collected. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, a customer's historical payment history, its current credit-worthiness and current economic trends. In determining these estimates, the Company examines historical write-offs of its receivables and reviews each client's account to identify any specific customer collection issues. Management believes that the accounts receivable are fully collectable. Therefore, no allowance for doubtful accounts is deemed to be required on its accounts receivable at December 31, 2019 and 2018. The Company historically has not experienced uncollectible accounts from customers granted with credit sales. |
Cost method investment | Cost method investment Investments in which the Company does not have the ability to exercise significant influence and does not have any control (generally 0-20 percent ownership), are accounted for under the cost method of accounting and are included in the long-term assets on the consolidated balance sheets. The Company evaluates its cost method investment whenever events or changes in circumstance indicate that the carrying amounts of such investment may be impaired. If a decline in the value of a cost method investment is determined to be other than temporary, a loss is recorded in the current period. |
Equity method investment | Equity method investment Investments in which the Company has the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting and are included in the long-term assets on the consolidated balance sheets. Under this method of accounting, the Company's share of the net earnings or losses of the investee is presented below the income tax line on the consolidated statements of operations. The Company evaluates its equity method investment whenever events or changes in circumstance indicate that the carrying amounts of such investment may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in the current period. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. Identifiable significant improvements are capitalized and expenditures for maintenance, repairs, and betterments, including replacement of minor items, are charged to expense. Depreciation is computed based on cost, less the estimated residual value, if any, using the straight-line method over the estimated useful life. The residual value rate and useful life of property and equipment are summarized as follows: Property and Equipment Residual value Useful life Electronic equipment 5 % 3 years Office equipment 5 % 5 years |
Business Acquisition | Business Acquisition A contingency should be recognized at its acquisition date fair value if that value can be determined. (The guidance in Topic 820 is used to determine fair value). If the acquisition-date fair value of contingency cannot be determined, then an asset or liability is recognized for the contingency if it's probable at the acquisition date that such asset or liability exists and if its amount is reasonable estimable. A contingency is not recognized for a contingency in the accounting for a business combination if: a) its fair value cannot be determined and b) the probable and reasonably estimate criteria are not met. Instead, the contingency is disclosed and accounted for subsequent to the acquisition date in accordance with Topic 450. Pursuant to the Acquisition Agreement, the contingent consideration consisted of compensatory arrangement for services to be performed by the officers of the acquiree, and such amounts are to be determined in the future by both parties; therefore the fair value cannot be determined at the acquisition date. The Company as an acquirer did not recognize a liability at the acquisition date. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill arises from business acquisition and is generally determined as the excess of fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquire, over the fair value of the nets assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently in events and circumstances exists that indicate that a goodwill impairment test should be performed. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our balance sheet. Acquired intangible assets other than goodwill with finite lives are stated at cost less accumulated amortization if there is any. Intangible assets mainly represent the domain name at cost, less accumulated amortization on a straight-line basis over an estimated life of ten years. Intangible Asset Residual value Useful life AGM domain 0 % 10 years |
Impairment of Long-lived Assets | Impairment of Long-lived Assets In accordance with ASC Topic 360, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset's estimated fair value and carrying amount. |
Lease Commitments | Lease Commitments On January 1, 2019, the Company adopted Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02), as amended, which supersedes the lease accounting guidance under Topic 840, and generally requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use (ROU) assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. The Company determined if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ("ROU") assets and short and long-term lease liabilities in our consolidated balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in our consolidated balance sheets. As of adoption of ASC 842 and as of January 1, 2019, the adoption did not have an impact on the Company s financial statements as the Company did not commitment any lease that are over twelve months at time of adoption. |
Revenue Recognition | Revenue Recognition The Company adopted Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers ("ASC 606") for all years presented. The core principle of this new revenue standard is that a company should recognize revenue when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle by the Company in its determination of revenue recognition: ● Step 1: Identify the contract(s) with the customer; ● Step 2: Identify the performance obligations in the contract; ● Step 3: Determine the transaction price; ● Step 4: Allocate the transaction price to the performance obligations in the contract; and ● Step 5: Recognize revenue when or as the Company satisfies a performance obligation. The Company is a software developer, engaging in the development and sale of enterprise application software, including accounting software and ERP software, and the software-related after-sales services in the PRC. Its mission is to provide easy-to use and effective solutions to minimize error, comply with the increasing regulatory complexity, accommodate transactions volumes of businesses of various sizes, and thus streamlining their accounting and finance operations. The transaction price is allocated to each performance obligation on a relative standalone selling price basis. The transaction price allocated to each performance obligation is recognized when that performance obligation is satisfied, at a point in time or over time as appropriate. The Company derives revenue from the sale of the following three items: (1) packaged software products, (2) technical support plans, (3) software customization services, and bundle of products or services that may include a combination of these items. We enter into contracts with customers that include promises to transfer various products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized when the promised goods or services are transferred to customers, in an amount that reflects the consideration allocated to the respective performance obligation. We recorded and recognized revenues from both products and services in one account, which we present as revenues and revenues from related parties in the accompanying consolidated statements of operations and comprehensive income. Nature of Products and Services (1) Software Products The Company's packaged software products consist of accounting products, Anyiwang V series, E series and G series, and other audit assistance and information management products under the Anyiwang brand. Each packaged software product includes a perpetual software license and a one-year technical support plan. Revenue is recognized at a point in time upon the delivery of the perpetual license, and in a period of time throughout the effective period for the technical support plan, which generally is recognized over twelve month period. (2) Technical Support Plans The Company sells our technical support plan either as a package with our sale of software products or separately on its own. Each technical support plan has a unified effective period of one year. Revenue is recognized in a period of time throughout the effective period for the technical support plan, generally is recognized over twelve month period. (3) Software Customization Services The Company delivers its software customization services by developing customized features on the AnyiWang software products to suit customers' special needs. Upon receiving the purchase request from the customers, the Company designs, develops, tests, and implements the specified features to our software products. The Company also includes a one-year technical support plan specifically for the developed feature(s). Customers are able to request and purchase the service together with a purchase of our software product, or separately if the customer has our software products in-use. Revenue is recognized at a point in time upon customers' acceptance of the feature(s), and revenue for the technical support plan is recognized over its service term, which generally is for twelve month period. The Company reports revenues net of applicable sales taxes and related surcharges. |
Costs of Revenues | Costs of Revenues Our cost of revenues has two components: (1) cost of product revenue, which includes direct costs of software products; labor costs and employee benefits for software development, data testing, bug fixes and hacker prevention; research and development expenses (2) cost of services and other revenue, which reflects direct costs associated with providing services, including data center and support costs related to delivering online services. |
Operating Leases | Operating Leases The Company determines if an arrangement is a lease upon inception. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The right to control the use of an asset includes the right to obtain substantially all of the economic benefits of the underlying asset and the right to direct how and for what purpose the asset is used. Upon adoption of ASU 2016-02 and related standards, operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The discount rate used to calculate present value is the Company's incremental borrowing rate or, if available, the rate implicit in the lease. The Company includes options to renew the lease as part of the right of use lease asset and liability when it is reasonably certain the Company will exercise the option. The Company also takes into considerations when certain lease contains fair value purchase and termination options with an associated penalty. The Company reviews all leases for capital or operating classification at their inception. The Company uses its incremental borrowing rate in the assessment of lease classification and define the initial lease term to include the construction build-out period but to exclude lease extension periods. We conduct our operations primarily under operating leases as of adoption of ASC 842 and as of January 1, 2019, the adoption did not have an impact on the Company's s financial statements as the Company did not commitment any lease that are over twelve months at time of adoption. |
Research and Development Expenses | Research and Development Expenses Research and development costs are expensed as incurred. The costs primarily consist of the wage expenses incurred to continuously improve and upgrade the Company's services. Research and development expenses of the years ended December 31, 2019, 2018 and 2017 were $127,117, $1,028,249 and $398,188, respectively. |
Income Taxes | Income Taxes The Company is governed by the Income Tax Law of the PRC, Inland Revenue Ordinance of Hong Kong and the U.S. Internal Revenue Code of 1986, as amended. The Company accounts for income taxes using the asset/liability method prescribed by ASC 740, "Accounting for Income Taxes." Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date. The Act has caused the Company's deferred income taxes to be revalued. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through income tax expense. Pursuant to the guidance within SEC Staff Accounting Bulletin No. 118 ("SAB 118"), as of December 31, 2017, the Company recognized the provisional effects of the enactment of the Act for which measurement could be reasonably estimated. Since the Company has provided a full valuation allowance against its deferred tax assets, the revaluation of the deferred tax assets did not have a material impact on any period presented. The ultimate impact of the Act may differ from these estimates due to the Company's continued analysis or further regulatory guidance that may be issued as a result of the Act. The Company applied the provisions of ASC 740-10-50, "Accounting for Uncertainty in Income Taxes," which provides clarification related to the process associated with accounting for uncertain tax positions recognized in the Company's financial statements. Audit periods remain open for review until the statute of limitations has passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Company's liability for income taxes. Any such adjustment could be material to the Company's results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. As of December 31, 2019 and 2018, the Company had uncertain tax positions accrued during 2017, and will continue to evaluate for uncertain positions in the future. |
Value Added Tax | Value Added Tax Jiangsu AnYiWang is subject to the PRC's Value Added Tax ("VAT") of 6% for providing sale of packaged software products, technical support plans, software customization services. The subsidiaries of Jiangsu AnYiWang, including Beijing AnYiWang, Changzhou AnYiWang, Lianyungang AnYiWang, Tongshan Naquan and Hubei AnYiWang, which are in the Republic of China ("PRC") and are subject to a Value Added Tax ("VAT") of 3% for providing sale of packaged software products, technical support plans, software customization services. The amount of VAT liability is determined by applying the applicable tax rate to the invoiced amount of software service provided. The Company reports revenue net of PRC's VAT for all the periods presented in the accompanying consolidated statements of operations. |
Comprehensive Income | Comprehensive Income ASC 220 "Comprehensive Income" established standards for reporting and display of comprehensive income, its components and accumulated balances. Components of comprehensive income include net income and foreign currency translation adjustments. For the years ended December 31, 2019, 2018 and 2017, the only component of accumulated other comprehensive income was foreign currency translation adjustments. |
Related Party Transactions | Related Party Transactions A related party is generally defined as (i) any person and or their immediate family hold 10% or more of the company's securities (ii) the Company's management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. The Company conducts business with its related parties in the ordinary course of business. Related parties may be individuals or corporate entities. Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts due from/to related parties due to their related party nature. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk are cash and cash equivalents, transaction monetary assets held for clients, mark to market assets for open trading positions, and accounts receivable arising from its normal business activities. The Company places its cash in what it believes to be credit-worthy financial institutions or trading platforms. The Company routinely assesses the financial strength of the customer 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. |
Reclassification | Reclassification Certain prior year amounts have been reclassified to conform to the current period presentation. These reclassifications had no impact on the net earnings and financial position. |
Earnings per Ordinary Share | Earnings per Ordinary Share Basic earnings per ordinary share is computed by dividing net earnings attributable to ordinary shareholders by the weighted-average number of ordinary shares outstanding during the period. Diluted earnings per share is computed by dividing net income attributable to ordinary shareholders by the sum of the weighted-average number of ordinary shares outstanding and dilutive potential ordinary shares during the period. |
Selling and Marketing | Selling and Marketing Selling and marketing costs are related to promoting, advertising, and other marketing activities, and are expensed as incurred. For the years ended December 31, 2019 and 2018, the advertising expenses were $0 and $91,468, respectively. |
Segment Reporting | Segment Reporting The Company uses the "management approach" in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company's chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company's reportable segments. The Company's chief operating decision maker has been identified as the chief executive officer of the Company who reviews financial information of separate operating segments based on U.S. GAAP. The chief operating decision maker now reviews results analyzed by customer. This analysis is only presented at the revenue level with no allocation of direct or indirect costs. Consequently, the Company has determined that it has only one operating segment. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In October 2018, the FASB issued ASU 2018-17, Targeted Improvements to Related Party Guidance for Variable Interest Entities, that changes the guidance for determining whether a decision-making fee paid to a decision makers and service providers are variable interests. The guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, with early adoption permitted. We will adopt this standard on its effective date of January 1, 2020. We do not expect the adoption of this ASU to have a material impact on our consolidated financial position, results of operations, cash flows, or presentation thereof. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. We will adopt this standard on its effective date of January 1, 2020. We are currently evaluating the impact of this ASU on our financial position, results of operations, cash flows, or presentation thereof. In August 2018, the FASB issued ASU 2018-13 to modify the disclosure requirements on fair value measurements. The amendments are effective beginning after December 15, 2019. An entity is permitted to early adopt any removed or modified disclosures and delay adoption of the additional disclosures until the effective date. Most amendments should be applied retrospectively, but certain amendments will be applied prospectively. The Company is in the process of assessing the impact of the standard on the Company's fair value disclosures. However, the standard is not expected to have an impact on the Company's consolidated financial position, results of operations and cash flows. A variety of proposed or otherwise potential accounting standards are currently under study by standard setting organizations and various regulatory agencies. Due to the tentative and preliminary nature of those proposed standards, we have not determined whether implementation of such proposed standards would be material to our consolidated financial statements. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization And Principal Activities | |
Schedule of AGM Holdings' subsidiaries | Name Date of Incorporation Place of Incorporation Percentage of Effective Ownership Principal Activities AGM Technology Limited ("AGM HK") May 21, 2015 Hong Kong 100 % Online trading service AGM Tianjin Construction Development Co., Ltd. ("AGM Tianjin") formerly Shenzhen AnGaoMeng Financial Technology Service Co., Ltd. October 13, 2015 PRC 100 % Holding entity Beijing AnGaoMeng Technology Service Co., Ltd. November 13, 2015 PRC 100 % Software development and provider Nanjing Xingaomeng Software Technology Co., Ltd. (AGM Nanjing") September 28, 2016 PRC 100 % Software development and provider AGM Software Service LTD ("AGM Software") June 14, 2017 BVI 100 % Core technology service provider Anyi Network Inc. ("Anyi Network") September 29, 2017 Cayman 100 % Software development and provider Anyi Technology Limited ("Anyi Technology") October 23, 2017 Hong Kong 100 % Product marketing hub Jiangsu AnyiWang Network Technology Co., Ltd. November 13, PRC 100 % Software development and provider Beijing AnyiWang Technology Co., Ltd. ("Beijing AnYiWang") January 2, 2018 PRC 100 % Software development and provider Changzhou AnyiWang Network Technology Co., Ltd. ("Changzhou AnYiWang") November 27, 2017 PRC 100 % Software development and provider Lianyungang AnyiWang Software Co., Ltd. November 20, 2017 PRC 100 % Software development and provider Tongshan Naquan Technology Service Co., Ltd. ("Tongshan Naquan") May 3, PRC 100 % Software development and provider Hubei AnYiWang Network Technology Co., Ltd. ("Hubei AnYiWang") March 8, PRC 100 % Software development and provider |
Summary of Significant Polici_3
Summary of Significant Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of residual value rate and useful life of property and equipment | Property and Equipment Residual value Useful life Electronic equipment 5 % 3 years Office equipment 5 % 5 years |
Schedule of intangible Assets | Intangible Asset Residual value Useful life AGM domain 0 % 10 years |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of estimated fair value of the assets acquired and liabilities | Cash $ 553,633 Accounts receivable, net 210,036 Contract assets 511,096 Other current assets 6,618 Property and equipment 17,825 Total assets acquired at fair value 1,299,208 Accounts payable (59 ) Contract liabilities (80,168 ) Other current liabilities (16,121 ) Other payables (252,343 ) Accrued salaries and benefits (72,229 ) Total liabilities assumed (420,920 ) Net assets acquired 878,288 Goodwill 7,121,712 Total purchase price $ 8,000,000 |
Schedule of consolidated statement of operations | Years Ended December 31, 2019 Net revenues $ 379,631 Net loss $ (24,827 ) |
Schedule of unaudited pro-forma financial information | Years Ended December 31, 2019 2018 Revenues $ 1,177,193 $ 6,496,619 Net (loss) income (1,419,345 ) (7,549,204 ) Net (loss) income per common share - basic and diluted (0.06 ) (0.36 ) Weighted average shares used in computing net outstanding net loss per share of common share, basic and diluted 21,289,540 20,951,074 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of discontinued operations including assets and liabilities and statements of operation | Years Ended December 31, 2019 2018 2017 Revenues $ - $ 486,244 $ 315,194 Cost of revenues - 400,513 392,671 Gross profit - 85,732 (77,477 ) Operating expenses - (11,844,769 ) (562,559 ) Other income (expenses), net - 60,499 120,394 Loss before income tax - (11,698,538 ) (519,642 ) Income tax expense - - - Loss from discontinued operation - (11,698,538 ) (519,642 ) Gain from disposal, net of tax - 5,072,068 - Total loss from discontinued operations, net of income taxes $ - $ (6,626,470 ) $ (519,642 ) |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Summary of accounts receivable, net | December 31, December 31, Accounts receivable $ 66,535 $ 923,217 Less: allowance for doubtful accounts and write-offs - (923,217 ) Accounts receivable, net $ 66,535 $ - |
Schedule of changes in allowance for doubtful accounts | December 31, December 31, Balance, beginning of the year $ 923,217 $ 35,000 Provision for doubtful accounts - - Uncollectible receivables written-off 923,217 888,217 Balance, end of the year $ - $ 923,217 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of prepaid expenses and other current assets | December 31, December 31, Prepaid expenses $ 31,953 $ 383,053 Advance deposit for intent acquisition * 4,937,664 - Deposits and others 192,596 149,236 Total prepaid expenses and other current assets $ 5,162,213 $ 532,289 * The Company entered into a letter of intent of equity acquisition with Yushu Kingo City Real Estate Development Co., Ltd. ("Yushu Kingo") on February 26, 2019. Pursuant to the Letter of Intent, the Company intended to acquire 100% of Yushu Kingo's equity by issuing new shares and using cash. The acquisition price will be subject to an audit report of a qualified auditing firm and further determined by the Company and Yushu Kingo upon completion of due diligence by the Company and necessary regulatory approval. The proposed transaction is also subject to a definitive share purchase agreement to be negotiated between the two parties, as well as other customary closing conditions. Refer to Note 19. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of investments | Name Subscribed capital contributions Actual capital contributions Shareholding Mi Yufeng 4,000 1,000 40 % Feng Ruicong 3,000 750 30 % Wang Jingbei 3,000 750 30 % Total 10.000 2.500 100 % Name Subscribed capital contributions Actual capital contributions Shareholding Mi Yufeng 4,000 1,000 32 % Feng Ruicong 3,000 750 24 % Wang Jingbei 3,000 750 24 % AGM Beijing 2,500 2.500 20 % Total 12,500 5,000 100 % |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment, net | December 31, December 31, Electronic equipment $ 197,580 $ 174,444 Office equipment 24,123 15,240 Total property and equipment 221,703 189,684 Less: accumulated depreciation (146,312 ) (91,751 ) Total property and equipment, net $ 75,391 $ 97,933 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | December 31, December 31, AGM domain names $ 14,800 14,800 Total intangible assets 14,800 14,800 Less: accumulated amortization (3,207 ) (1,727 ) Total intangible assets, net $ 11,593 $ 13,073 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of due to related parties | December 31, December 31, Zhentao Jiang $ 607,349 $ 1,307,264 Wenjie Tang - 11,318 Guofu Zhang 117,155 29,399 Others 381 - Total $ 724,885 $ 1,347,981 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Information | |
Schedule of Revenues from products and services, and gross profit | For the Years Ended December 31, 2019 2018 Segment revenue: Packaged software products $ 83,163 $ - Technical support plans 488,616 5,112,520 Software customization services 137,851 - Total revenue from continued operations 709,630 5,112,520 Total revenue from discontinued operations - - Gross profit $ 466,686 $ 5,112,520 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of provision for income taxes | For the Years Ended December 31, 2019 2018 2017 Current $ (123,001 ) 595,421 $ (1,300,894 ) Deferred - - - Total $ (123,001 ) 595,421 $ (1,300,894 ) |
Schedule of reconciliations of the statutory income tax rate and the Company's effective income tax rate | For the Years Ended December 31, 2019 2018 2017 HK statutory income tax rate 16.5 % 16.5 % 16.5 % Valuation allowance recognized with respect to the loss in the HK company (16.5 )% (16.5 )% (16.5 )% UK statutory income tax rate 19.0 % 19.0 % 19.0 % Valuation allowance recognized with respect to the loss in the UK company (19.0 )% (19.0 )% (19.0 )% Australian statutory income tax rate 27.5 % 27.5 % 27.5 % Valuation allowance recognized with respect to the loss in the Australian company (27.5 )% (27.5 )% (27.5 )% PRC statutory income tax rate 25.0 % 25.0 % 25.0 % Uncertain tax position 25.0 % 25.0 % 25.0 % Changes in valuation allowance for deferred tax asset (25.0 )% (25.0 )% (25.0 )% Total tax rate 25 % 25 % 25 % |
Schedule of cumulative net operating losses carried forward | For the Years Ended December 31, Expiration Beginning in the 2019 2018 2017 Year PRC Region $ 424,478 $ 5,940,924 $ 1,964,000 2020 HK Region 338,255 340,902 875,122 Indefinitely UK Region - 1,102 1,000 2019 Australia Region - 53,063 17,887 Indefinitely Total cumulative net operating loss carry-forward $ 762,733 $ 6,335,990 $ 2,858,009 |
Schedule of net deferred tax assets | December 31, December 31, December 31, 2019 2018 2017 Deferred tax assets: Net operating loss carry-forwards $ 236,963 $ 1,556,422 $ 640,504 Total of deferred tax assets 236,963 1,556,422 640,504 Less: valuation allowance (236,963 ) (1,556,422 ) (640,504 ) Net deferred assets $ - $ - $ - |
Schedule of unrecognized tax benefits related to the Company's uncertain tax positions | For the Year Ended December 31, For the Year Ended December 31, For the Year Ended December 31, 2017 Gross beginning balance $ 1,483,745 $ 2,079,166 $ 783,382 Gross increase to tax positions in the current period 123,001 (595,421 ) 1,295,784 Gross increase to tax position in the prior period - - - Gross decrease to tax position in the prior period - - - Lapse of statute limitations - - - Gross ending balance $ 1,606,746 $ 1,483,745 $ 2,079,166 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, All Other Investments [Abstract] | |
Schedule of financial instruments | December 31, December 31, Cash and cash equivalents of continuing operations $ 2,076,569 $ 7,696,699 Prepaid expenses and other current assets 5,162,213 532,289 Other assets of discontinued operations - - Other financial liabilities (i) 2,440,168 3,130,766 liabilities of discontinued operations $ $ - (i) Accounts payable, accrued expenses and other current liabilities, advance from customers, and income tax payable. |
Schedule of financial assets and liabilities carried at fair value on a recurring basis | The financial assets and liabilities carried at fair value on a recurring basis at December 31, 2019 are as follows: Level 1 Level 2 Level 3 Total Financial Assets Cash and cash equivalents of continuing operations $ 2,076,569 $ - $ - $ 2,076,569 Cash and cash equivalents of discontinued operations - - - - Other financial assets of continuing operations - - - - Other financial assets of discontinued operations - - - - Total Financial assets $ 2,076,569 $ - $ - $ 2,076,569 Financial Liabilities Other liabilities of continuing operations $ - $ - $ - $ - Other liabilities of discontinued operations - - - - Total Financial Liabilities $ - $ - $ - $ - The financial assets and liabilities carried at fair value on a recurring basis at December 31, 2018 are as follows: Level 1 Level 2 Level 3 Total Financial Assets Cash and cash equivalents of continuing operations $ 7,865,345 $ - $ - $ 7,865,345 Cash and cash equivalents of discontinued operations - - - - Other financial assets of continuing operations - - - - Other financial assets of discontinued operations - - - - Total Financial Assets $ 7,865,345 $ - $ - $ 7,865,345 Financial Liabilities Other liabilities of continuing operations $ - $ - $ - $ - Other liabilities of discontinued operations - - - - Total Financial Liabilities $ - $ - $ - $ - |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease obligations | Commitment Year of 2020 $ 75,506 Year of 2021 18,957 Year of 2022 18,957 Year of 2023 4,308 Year of 2024 4,308 Thereafter 12,924 Less: lease commitments on terminations (134,960 ) Total $ - |
Concentrations of Credit Risk_2
Concentrations of Credit Risk and Major Customers and Suppliers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Customers [Member] | |
Concentration Risk [Line Items] | |
Schedule of concentrations of credit risk and major customers and suppliers | For the Years Ended Customers 2019 2018 IIG Ltd. (Related Party) - 24 % A 20 % 19 % B * 19 % C 13 % - * Less than 10% |
Suppliers [Member] | |
Concentration Risk [Line Items] | |
Schedule of concentrations of credit risk and major customers and suppliers | For the Years Ended Suppliers 2019 2018 A - 10 % B - 15 % * Less than 10% |
Organization and Principal Ac_3
Organization and Principal Activities (Details) | 12 Months Ended |
Dec. 31, 2019 | |
May 21, 2015 [Member] | |
Organization and Principal Activities (Textual) | |
Name | AGM Technology Limited ("AGM HK") |
Date of Incorporation | May 21, 2015 |
Place of Incorporation | Hong Kong |
Percentage of Effective Ownership | 100.00% |
Principal Activities | Online trading service |
October 13, 2015 [Member] | |
Organization and Principal Activities (Textual) | |
Name | AGM Tianjin Construction Development Co., Ltd. ("AGM Tianjin") formerly Shenzhen AnGaoMeng Financial Technology Service Co., Ltd. |
Date of Incorporation | Oct. 13, 2015 |
Place of Incorporation | PRC |
Percentage of Effective Ownership | 100.00% |
Principal Activities | Holding entity |
November 13, 2015 [Member] | |
Organization and Principal Activities (Textual) | |
Name | Beijing AnGaoMeng Technology Service Co., Ltd. ("AGM Beijing") |
Date of Incorporation | Nov. 13, 2015 |
Place of Incorporation | PRC |
Percentage of Effective Ownership | 100.00% |
Principal Activities | Software development and provider |
September 28, 2016 [Member] | |
Organization and Principal Activities (Textual) | |
Name | Nanjing Xingaomeng Software Technology Co., Ltd. (AGM Nanjing") |
Date of Incorporation | Sep. 28, 2016 |
Place of Incorporation | PRC |
Percentage of Effective Ownership | 100.00% |
Principal Activities | Software development and provider |
June 14, 2017 [Member] | |
Organization and Principal Activities (Textual) | |
Name | AGM Software Service LTD ("AGM Software") |
Date of Incorporation | Jun. 14, 2017 |
Place of Incorporation | BVI |
Percentage of Effective Ownership | 100.00% |
Principal Activities | Core technology service provider |
September 29, 2017 [Member] | |
Organization and Principal Activities (Textual) | |
Name | Anyi Network Inc. ("Anyi Network") |
Date of Incorporation | Sep. 29, 2017 |
Place of Incorporation | Cayman |
Percentage of Effective Ownership | 100.00% |
Principal Activities | Software development and provider |
October 23, 2017 [Member] | |
Organization and Principal Activities (Textual) | |
Name | Anyi Technology Limited ("Anyi Technology") |
Date of Incorporation | Oct. 23, 2017 |
Place of Incorporation | Hong Kong |
Percentage of Effective Ownership | 100.00% |
Principal Activities | Product marketing hub |
November 13, 2017 [Member] | |
Organization and Principal Activities (Textual) | |
Name | Jiangsu AnyiWang Network Technology Co., Ltd. ("Jiangsu AnYiWang") |
Date of Incorporation | Nov. 13, 2017 |
Place of Incorporation | PRC |
Percentage of Effective Ownership | 100.00% |
Principal Activities | Software development and provider |
January 2, 2018 [Member] | |
Organization and Principal Activities (Textual) | |
Name | Beijing AnyiWang Technology Co., Ltd. ("Beijing AnyiWang") |
Date of Incorporation | Jan. 2, 2018 |
Place of Incorporation | PRC |
Percentage of Effective Ownership | 100.00% |
Principal Activities | Software development and provider |
November 27, 2017 [Member] | |
Organization and Principal Activities (Textual) | |
Name | Changzhou AnyiWang Network Technology Co., Ltd. ("Changzhou AnyiWang") |
Date of Incorporation | Nov. 27, 2017 |
Place of Incorporation | PRC |
Percentage of Effective Ownership | 100.00% |
Principal Activities | Software development and provider |
November 20, 2017 [Member] | |
Organization and Principal Activities (Textual) | |
Name | Lianyungang AnyiWang Software Co., Ltd. ("Lianyungang AnyiWang") |
Date of Incorporation | Nov. 20, 2017 |
Place of Incorporation | PRC |
Percentage of Effective Ownership | 100.00% |
Principal Activities | Software development and provider |
May 3, 2018 [Member] | |
Organization and Principal Activities (Textual) | |
Name | Tongshan Naquan Technology Service Co., Ltd. ("Tongshan Naquan") |
Date of Incorporation | May 3, 2018 |
Place of Incorporation | PRC |
Percentage of Effective Ownership | 100.00% |
Principal Activities | Software development and provider |
March 8, 2018 [Member] | |
Organization and Principal Activities (Textual) | |
Name | Hubei AnyiWang Network Technology Co., Ltd. ("Hubei AnyiWang") |
Date of Incorporation | Mar. 8, 2018 |
Place of Incorporation | PRC |
Percentage of Effective Ownership | 100.00% |
Principal Activities | Software development and provider |
Organization and Principal Ac_4
Organization and Principal Activities (Details Textual) - AGM Holdings [Member] - Customers | Dec. 31, 2019 | Jul. 26, 2019 |
Percentage of acquisition | 100.00% | 100.00% |
Number of employees | 10 |
Summary of Significant Polici_4
Summary of Significant Policies (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Electronic Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Residual value rate | 5.00% |
Useful life | 3 years |
Office Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Residual value rate | 5.00% |
Useful life | 5 years |
Summary of Significant Polici_5
Summary of Significant Policies (Details 1) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Residual value rate | 0.00% |
Useful life | 10 years |
Summary of Significant Polici_6
Summary of Significant Policies (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of Significant Policies (Textual) | |||
Translation rates, description | The consolidated balance sheet balances, with the exception of equity at December 31, 2019, 2018 and 2017 were translated at RMB6.9630, RMB6.8764 and RMB6.5064 to $1.00, respectively. The equity accounts were stated at their historical rate. The average translation rates applied to consolidated statements of income and cash flows for the year ended December 31, 2019, 2018 and 2017 were RMB6.9074, RMB6.6146 and RMB6.7570 to $1.00, respectively. | ||
Research and development expenses | $ 127,117 | $ 1,028,249 | $ 398,188 |
Securities, percentage | 10.00% | ||
Selling and marketing expenses | $ 0 | $ 91,468 | |
Description of cost method investment | Generally 0-20 percent ownership | ||
Value added tax rate, description | Jiangsu AnYiWang is subject to the PRC's Value Added Tax ("VAT") of 6% for providing sale of packaged software products, technical support plans, software customization services. The subsidiaries of Jiangsu AnYiWang, including Beijing AnYiWang, Changzhou AnYiWang, Lianyungang AnYiWang, Tongshan Naquan and Hubei AnYiWang, which are in the Republic of China ("PRC") and are subject to a Value Added Tax ("VAT") of 3% for providing sale of packaged software products, technical support plans, software customization services. |
Business Acquisitions (Details)
Business Acquisitions (Details) - USD ($) | Dec. 31, 2019 | Jul. 26, 2019 | Dec. 31, 2018 |
Business Combinations [Abstract] | |||
Cash | $ 553,633 | ||
Accounts receivable, net | 210,036 | ||
Contract assets | 511,096 | ||
Other current assets | 6,618 | ||
Property and equipment | 17,825 | ||
Total assets acquired at fair value | 1,299,208 | ||
Accounts payable | (59) | ||
Contract liabilities | (80,168) | ||
Other current liabilities | (16,121) | ||
Other payables | (252,343) | ||
Accrued salaries and benefits | (72,229) | ||
Total liabilities assumed | (420,920) | ||
Net assets acquired | 878,288 | ||
Goodwill | $ 7,121,712 | 7,121,712 | |
Total purchase price | $ 8,000,000 |
Business Acquisitions (Details
Business Acquisitions (Details 1) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Business Combinations [Abstract] | |
Net revenues | $ 379,631 |
Net loss | $ (24,827) |
Business Acquisitions (Detail_2
Business Acquisitions (Details 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Business Combinations [Abstract] | ||
Revenues | $ 1,177,193 | $ 6,496,619 |
Net (loss) income | $ (1,419,345) | $ (7,549,204) |
Net (loss) income per common share - basic and diluted | $ (0.06) | $ (0.36) |
Weighted average shares used in computing net outstanding net loss per share of common share, basic and diluted | 21,289,540 | 20,951,074 |
Business Acquisitions (Detail_3
Business Acquisitions (Details Textual) | 1 Months Ended |
Jul. 26, 2019 | |
Business Acquisitions (Textual) | |
Description of business acquisitions | The Company completed the acquisition of 100% of the issued and outstanding capital stock of Anyi Network from its shareholders pursuant to the terms and conditions of a Share Exchange Agreement (the "Acquisition Agreement") entered into among the Company and Anyi Network's shareholders. In connection with the Acquisition Agreement, AGM Holdings acquired 100% of the equity of Anyi and pay $400,000 in cash and issue an aggregate of 475,000 duly authorized, fully paid and nonassessable Class A ordinary shares of the Company, valued at $16.00 per share to the shareholders of Anyi. The total consideration underlying the Share Exchange shall be $8,000,000. This is referred to herein as the "the Acquisition". |
Discontinued Operations (Detail
Discontinued Operations (Details 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |||
Revenues | $ 486,244 | $ 315,194 | |
Cost of revenues | 400,513 | 392,671 | |
Gross profit | 85,732 | (77,477) | |
Operating expenses | (11,844,769) | (562,559) | |
Other income (expenses), net | 60,499 | 120,394 | |
Loss before income tax | (11,698,538) | (519,642) | |
Income tax expense | |||
Loss from discontinued operation | (11,698,538) | (519,642) | |
Gain from disposal, net of tax | 5,072,068 | ||
Total loss from discontinued operations, net of income taxes | $ (6,626,470) | $ (519,642) |
Discontinued Operations (Deta_2
Discontinued Operations (Details Textual) - USD ($) | Sep. 05, 2018 | May 24, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 08, 2019 | Aug. 14, 2017 |
Description of discontinued operation | The Company sold 90% equity of wholly owned subsidiary AGM Holdings incorporated AGM Group Ltd ("AGM Belize")to Mr. Zhentao Jiang (the "Buyer"), a related party, at a sales price of $450,000 (the "Transfer Price"). Pursuant to an equity transfer agreement, the Buyer shall pay the Transfer Price in available cash to the seller's designated bank account. A 20% initial payment shall be paid by the Buyer within five working days upon the signing of the equity transfer agreement. A 30% shall be paid by the Buyer after the completion of legal and financial due diligence, and the remaining 50% shall be paid after the approval by The International Business Company Registry of Belize. | The Company realized a gain of $450,000 from the disposal of 90% equity of AGM Belize with an investment cost basis of $0. The Company also realized a gain of $4,172,068 resulted from 90% of liabilities being assumed by the acquirer pursuant to the equity transfer agreement. Together, the Company recognized a total gain on disposal of operation of $5,072,068 for the year ended December 31, 2018 and recognized the remaining 10% equity in AGM Belize under cost method investment. | ||||
Impairment loss on intangible assets | $ 2,711,535 | |||||
Total considerations | $ 971 | |||||
Realized loss | $ 16,537 | $ 319 | ||||
AGM Holdings [Member] | ||||||
Ownership | 100.00% |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Accounts receivable | $ 66,535 | $ 923,217 |
Less: allowance for doubtful accounts and write-offs | (923,217) | |
Accounts receivable, net | $ 66,535 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | |||
Balance, beginning of the year | $ 923,217 | $ 35,000 | |
Provision for doubtful accounts | 923,217 | $ 35,000 | |
Uncollectible receivables written-off | 923,217 | 888,217 | |
Balance, end of the year | $ 923,217 | $ 35,000 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of prepaid expenses and other current assets | |||
Prepaid expenses | $ 31,953 | $ 383,053 | |
Advance deposit for intent acquisition | [1] | 4,937,664 | |
Deposits and others | 192,596 | 149,236 | |
Total prepaid expenses and other current assets | $ 5,162,213 | $ 532,289 | |
[1] | The Company entered into a letter of intent of equity acquisition with Yushu Kingo City Real Estate Development Co., Ltd. ("Yushu Kingo") on February 26, 2019. Pursuant to the Letter of Intent, the Company intended to acquire 100% of Yushu Kingo's equity by issuing new shares and using cash. The acquisition price will be subject to an audit report of a qualified auditing firm and further determined by the Company and Yushu Kingo upon completion of due diligence by the Company and necessary regulatory approval. The proposed transaction is also subject to a definitive share purchase agreement to be negotiated between the two parties, as well as other customary closing conditions. Refer to Note 19. |
Prepaid Expenses and Other Cu_4
Prepaid Expenses and Other Current Assets (Details Textual) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Prepaid Expenses and Other Current Assets (Textual) | ||
Other receivables | $ 16,856 | $ 0 |
AGMClub and AGM Global [Member] | ||
Prepaid Expenses and Other Current Assets (Textual) | ||
Other receivables | $ 319 | $ 16,537 |
Investments (Details)
Investments (Details) | Sep. 05, 2018USD ($) | Aug. 08, 2018CNY (¥) | Aug. 08, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019CNY (¥) | Aug. 10, 2018USD ($) |
Investments (Textual) | |||||||||
Sold equity of its subsidiary | 90.00% | ||||||||
Investment Owned, at Cost | $ 0 | $ 0 | |||||||
Carrying amount of the investment | 341,045 | 0 | |||||||
Investment | 361,721 | ||||||||
Recognized loss | 33,684 | ||||||||
Cash | 160,000 | ||||||||
Prepaid expense | 34,000 | ||||||||
Other current assets | 2,000 | ||||||||
Fixed assets | 16,000 | ||||||||
Total liabilities | 3,130,766 | $ 2,662,888 | |||||||
RMB [Member] | |||||||||
Investments (Textual) | |||||||||
Investment | ¥ | ¥ 2,500,000 | ||||||||
Recognized loss | ¥ | ¥ 232,665 | ||||||||
Guochuang [Member] | |||||||||
Investments (Textual) | |||||||||
Investment | $ 365,802 | ||||||||
Interest received | 20.00% | ||||||||
Recognized loss | $ 35,174 | ||||||||
Guochuang [Member] | RMB [Member] | |||||||||
Investments (Textual) | |||||||||
Investment | ¥ | ¥ 2,500,000 | ¥ 2,500,000 | |||||||
Recognized loss | ¥ | ¥ 232,665 | ||||||||
Yufeng Mi, Chief Technology [Member] | Maximum [Member] | |||||||||
Investments (Textual) | |||||||||
Interest received | 40.00% | ||||||||
Yufeng Mi, Chief Technology [Member] | Minimum [Member] | |||||||||
Investments (Textual) | |||||||||
Interest received | 32.00% | ||||||||
AGM Belize [Member] | |||||||||
Investments (Textual) | |||||||||
Remaining equity | 10.00% | ||||||||
Investment Owned, at Cost | $ 0 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 221,703 | $ 189,684 |
Less: accumulated depreciation | (146,312) | (91,751) |
Total property and equipment, net | 75,391 | 97,933 |
Electronic equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 197,580 | 174,444 |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 24,123 | $ 15,240 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property and Equipment, Net (Textual) | |||
Depreciation expenses | $ 57,631 | $ 53,697 | $ 30,349 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
AGM domain names | $ 14,800 | $ 14,800 |
Total intangible assets | 14,800 | 14,800 |
Less: accumulated amortization | (3,207) | (1,727) |
Total intangible assets, net | $ 11,593 | $ 13,073 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Intangible Assets (Textual) | |||
Amortization expenses | $ 1,480 | $ 328,983 | $ 216,180 |
Goodwill (Details)
Goodwill (Details) - USD ($) | Dec. 31, 2019 | Jul. 26, 2019 | Dec. 31, 2018 |
Goodwill (Textual) | |||
Goodwill | $ 7,121,712 | $ 7,121,712 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | ||
Total due to related parties | $ 724,885 | $ 1,347,981 |
Zhentao Jiang [Member] | ||
Related Party Transaction [Line Items] | ||
Total due to related parties | 607,349 | 1,307,264 |
Wenjie Tang [Member] | ||
Related Party Transaction [Line Items] | ||
Total due to related parties | 11,318 | |
Guofu Zhang [Member] | ||
Related Party Transaction [Line Items] | ||
Total due to related parties | 117,155 | 29,399 |
Other [Member] | ||
Related Party Transaction [Line Items] | ||
Total due to related parties | $ 381 |
Related Party Transactions (D_2
Related Party Transactions (Details Textual) - USD ($) | Aug. 15, 2019 | Sep. 05, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Related Party Transactions (Textual) | |||||
Revenues from related party | $ 1,240,708 | $ 2,170,838 | |||
Repayments to related parties | 636,008 | 8,959,411 | 6,699,036 | ||
Borrowing amount of related party | 109,679 | 9,293,654 | 4,032,044 | ||
Description of related party transactions | The Company disposed 90% of AGM Belize for $450,000 to Mr. Zhentao Jiang, a related party who is a director and principal shareholder of the Company. According to the equity transfer agreement, Mr. Zhentao Jiang will assume 90% assets and liabilities of AGM Belize and will be responsible to retrieve the investment funds to return to the Company's former customers. As of December 31, 2018, Mr. Zhentao Jiang retrieved and returned $2,320,023 in cash to the Company's former customers directly. | ||||
IIG Ltd [Member] | |||||
Related Party Transactions (Textual) | |||||
Revenues from related party | 0 | 1,240,708 | 2,170,838 | ||
Accounts receivable from related party | $ 0 | 0 | $ 172,237 | ||
Nature of Relationship | Company under common control of Zhentao Jiang | ||||
Zhentao Jiang [Member] | |||||
Related Party Transactions (Textual) | |||||
Operating expenses | $ 61,864 | 419,645 | |||
Nature of Relationship | Director and principal shareholder | ||||
Wenjie Tang [Member] | |||||
Related Party Transactions (Textual) | |||||
Operating expenses | $ 61,864 | 419,645 | |||
Nature of Relationship | Chief Executive Officer ("CEO"), Director, and shareholder | ||||
Yufeng Mi [Member] | |||||
Related Party Transactions (Textual) | |||||
Nature of Relationship | Chief Technical Officer ("CTO") and shareholder | ||||
Bin Liu [Member] | |||||
Related Party Transactions (Textual) | |||||
Nature of Relationship | Former Chief Risk Officer ("CRO") | ||||
Guofu Zhang [Member] | |||||
Related Party Transactions (Textual) | |||||
Operating expenses | $ 61,864 | $ 419,645 | |||
Nature of Relationship | Chief Financial Officer ("CFO") | ||||
Chengchun Zhang [Member] | |||||
Related Party Transactions (Textual) | |||||
Nature of Relationship | Chief Operational Officer ("COO") and principal shareholder | ||||
Haiyan Huang [Member] | |||||
Related Party Transactions (Textual) | |||||
Nature of Relationship | Legal representative of Lianyunagan AnYiWang | ||||
Zhenhua Li [Member] | |||||
Related Party Transactions (Textual) | |||||
Nature of Relationship | Legal representative of Hubei AnYiWang | ||||
Firebull Holdings Limited [Member] | |||||
Related Party Transactions (Textual) | |||||
Nature of Relationship | Company under common control of Wenjie Tang and Bin Cao | ||||
Nanjing Yunxinhe Software Technology Co., Ltd. [Member] | |||||
Related Party Transactions (Textual) | |||||
Nature of Relationship | Company formerly controlled by Zhentao Jiang and still significantly influenced by Zhentao Jiang | ||||
Beijing Maiteke Technology Co., Ltd.[Member] | |||||
Related Party Transactions (Textual) | |||||
Nature of Relationship | Company where Wenjie Tang assumed a key management position | ||||
Northnew Management Limited [Member] | |||||
Related Party Transactions (Textual) | |||||
Nature of Relationship | Company under common control of Zhentao Jiang | ||||
AGM Global Asset Management [Member] | |||||
Related Party Transactions (Textual) | |||||
Description of related party transactions | The Company recognized a loss in the amount of $16,537 for the year ended. | ||||
Bin Cao [Member] | |||||
Related Party Transactions (Textual) | |||||
Nature of Relationship | Chairman of the Board |
Segment Information (Details)
Segment Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment revenue: | |||
Total revenue from continued operations | $ 709,630 | $ 5,112,520 | |
Total revenue from discontinued operations | |||
Gross profit | 466,686 | 3,459,492 | $ 9,079,062 |
Packaged software products [Member] | |||
Segment revenue: | |||
Segment revenue | 83,163 | ||
Technical support plans [Member] | |||
Segment revenue: | |||
Segment revenue | 488,616 | 5,112,520 | |
Software customization services [Member] | |||
Segment revenue: | |||
Segment revenue | $ 137,851 |
Income Tax (Details)
Income Tax (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of provision for income taxes | |||
Current | $ (123,001) | $ 595,421 | $ (1,300,894) |
Deferred | |||
Total | $ (123,001) | $ 595,421 | $ (1,300,894) |
Income Tax (Details 1)
Income Tax (Details 1) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of reconciliations of the statutory income tax rate and the Company's effective income tax rate | |||
Uncertain tax positions | 0.25% | 25.00% | 0.25% |
Changes in valuation allowance for deferred tax asset | 0.25% | (25.00%) | (25.00%) |
Total tax rate | 0.25% | 25.00% | 25.00% |
HK statutory income tax rate [Member] | |||
Schedule of reconciliations of the statutory income tax rate and the Company's effective income tax rate | |||
Uncertain tax positions | 16.50% | 0.165% | 16.50% |
Changes in valuation allowance for deferred tax asset | (16.50%) | (0.165%) | (16.50%) |
UK statutory income tax rate [Member] | |||
Schedule of reconciliations of the statutory income tax rate and the Company's effective income tax rate | |||
Uncertain tax positions | 19.00% | 19.00% | 19.00% |
Changes in valuation allowance for deferred tax asset | (19.00%) | (19.00%) | (19.00%) |
Australian statutory income tax rate [Member] | |||
Schedule of reconciliations of the statutory income tax rate and the Company's effective income tax rate | |||
Uncertain tax positions | 27.50% | 27.50% | 2750.00% |
Changes in valuation allowance for deferred tax asset | (27.50%) | (27.50%) | (2750.00%) |
PRC statutory income tax rate [Member] | |||
Schedule of reconciliations of the statutory income tax rate and the Company's effective income tax rate | |||
Uncertain tax positions | 0.25% | 25.00% | 25.00% |
Income Tax (Details 2)
Income Tax (Details 2) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |||
Total cumulative net operating loss carry-forward | $ 4,580,203 | $ 4,343,240 | $ 2,858,009 |
PRC Region | |||
Operating Loss Carryforwards [Line Items] | |||
Total cumulative net operating loss carry-forward | $ 424,478 | 5,940,924 | 1,964,000 |
Expiration Beginning in the Year | 2020 | ||
HK Region | |||
Operating Loss Carryforwards [Line Items] | |||
Total cumulative net operating loss carry-forward | $ 338,255 | 340,902 | 875,122 |
Expiration Beginning in the Year | Indefinitely | ||
UK Region | |||
Operating Loss Carryforwards [Line Items] | |||
Total cumulative net operating loss carry-forward | 1,102 | 1,000 | |
Expiration Beginning in the Year | 2020 | ||
Australia Region | |||
Operating Loss Carryforwards [Line Items] | |||
Total cumulative net operating loss carry-forward | $ 53,063 | $ 17,887 | |
Expiration Beginning in the Year | Indefinitely |
Income Tax (Details 3)
Income Tax (Details 3) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | |||
Net operating loss carry-forwards | $ 236,963 | $ 1,556,422 | $ 640,504 |
Total of deferred tax assets | 236,963 | 1,556,422 | 640,504 |
Less: valuation allowance | (236,963) | (1,556,422) | (640,504) |
Net deferred assets |
Income Tax (Details 4)
Income Tax (Details 4) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Gross beginning balance | $ 1,483,745 | $ 2,079,166 | $ 783,382 |
Gross increase to tax positions in the current period | 123,001 | (595,421) | 1,295,784 |
Gross increase to tax position in the prior period | |||
Gross decrease to tax position in the prior period | |||
Lapse of statute limitations | |||
Gross ending balance | $ 1,606,746 | $ 1,483,745 | $ 2,079,166 |
Income Tax (Details Textual)
Income Tax (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax (Textual) | |||
Percentage of tax rate | 10.00% | ||
Cumulative net operating loss carry-forward | $ 4,580,203 | $ 4,343,240 | $ 2,858,009 |
Valuation allowance | $ 236,963 | $ 1,556,422 | $ 640,504 |
HONG KONG | |||
Income Tax (Textual) | |||
Percentage of tax rate | 25.00% | ||
Description of income tax law | AGM HK and AGMClub are subject to tax at 16.5% on the assessable profits arising in or derived from Hong Kong or 8.25% if the net profit under $2,000,000 for 2019 and beyond., and allowed to offset their future tax taxable income with taxable operating losses with carried forward indefinitely. | ||
State Administration of Taxation, China [Member] | |||
Income Tax (Textual) | |||
Percentage of tax rate | 25.00% | ||
Description of income tax law | On March 16, 2007, the National People's Congress passed the Enterprise Income Tax Law ("the China EIT Law"), which was effective as of January 1, 2008. | ||
Description of operating loss carryforward | AGM Beijing, AGM Tianjin, AGM Nanjing, Jiangsu AnYiWang, Beijing AnYiWang, Changzhou AnYiWang, Lianyungang AnYiWang, Tongshan Nanquan and Hubei AnYiWang are subject to 25% China statutory tax rate. | ||
Uniform tax rate | 25.00% | ||
United Kingdom [Member] | |||
Income Tax (Textual) | |||
Percentage of tax rate | 19.00% | ||
Australian Taxation Office [Member] | |||
Income Tax (Textual) | |||
Percentage of tax rate | 27.50% |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments, All Other Investments [Abstract] | |||
Cash and cash equivalents of continuing operations | $ 2,076,569 | $ 7,696,699 | |
Prepaid expenses and other current assets | 5,162,213 | 532,289 | |
Other assets of discontinued operations | |||
Other financial liabilities | [1] | 2,440,168 | 3,130,766 |
liabilities of discontinued operations | |||
[1] | Accounts payable, accrued expenses and other current liabilities, advance from customers, and income tax payable. |
Financial Instruments (Details
Financial Instruments (Details 1) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Assets | ||
Cash and cash equivalents of continuing operations | $ 2,076,569 | $ 7,696,699 |
Cash and cash equivalents of discontinued operations | ||
Other financial assets of continuing operations | ||
Other financial assets of discontinued operations | ||
Total Financial Assets | 2,076,569 | 7,865,345 |
Financial Liabilities | ||
Other liabilities of continuing operations | ||
Other liabilities of discontinued operations | ||
Total Financial Liabilities | ||
Level 1 [Member] | ||
Financial Assets | ||
Cash and cash equivalents of continuing operations | 2,076,569 | 7,865,345 |
Cash and cash equivalents of discontinued operations | ||
Other financial assets of continuing operations | ||
Other financial assets of discontinued operations | ||
Total Financial Assets | 2,076,569 | 7,865,345 |
Financial Liabilities | ||
Other liabilities of continuing operations | ||
Other liabilities of discontinued operations | ||
Total Financial Liabilities | ||
Level 2 [Member] | ||
Financial Assets | ||
Cash and cash equivalents of continuing operations | ||
Cash and cash equivalents of discontinued operations | ||
Other financial assets of continuing operations | ||
Other financial assets of discontinued operations | ||
Total Financial Assets | ||
Financial Liabilities | ||
Other liabilities of continuing operations | ||
Other liabilities of discontinued operations | ||
Total Financial Liabilities | ||
Level 3 [Member] | ||
Financial Assets | ||
Cash and cash equivalents of continuing operations | ||
Cash and cash equivalents of discontinued operations | ||
Other financial assets of continuing operations | ||
Other financial assets of discontinued operations | ||
Total Financial Assets | ||
Financial Liabilities | ||
Other liabilities of continuing operations | ||
Other liabilities of discontinued operations | ||
Total Financial Liabilities |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | Dec. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Year of 2020 | $ 75,506 |
Year of 2021 | 18,957 |
Year of 2022 | 18,957 |
Year of 2023 | 4,308 |
Year of 2024 | 4,308 |
Thereafter | 12,924 |
Less: lease commitments on terminations | (134,960) |
Total |
Commitments and Contingencies_3
Commitments and Contingencies (Details Textual) | Apr. 09, 2019USD ($)m² | Apr. 09, 2019CNY (¥)m² | Sep. 05, 2018 | May 25, 2019USD ($)m² | May 25, 2019CNY (¥)m² | Dec. 28, 2018USD ($)m² | Dec. 28, 2018CNY (¥)m² | Nov. 28, 2017USD ($) | Oct. 25, 2017USD ($)m² | Oct. 25, 2017CNY (¥)m² | Nov. 15, 2016USD ($)m² | Nov. 15, 2016CNY (¥)m² | Apr. 15, 2016USD ($)m² | Apr. 15, 2016CNY (¥)m² | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2018USD ($) |
Commitments and Contingencies (Textual) | ||||||||||||||||||
Rent expense | $ 173,259 | $ 447,363 | $ 728,843 | |||||||||||||||
Customers investment funds | $ 82,922,858 | |||||||||||||||||
Related party, description | The Company disposed 90% of AGM Belize for $450,000 to Mr. Zhentao Jiang, a related party who is a director and principal shareholder of the Company. According to the equity transfer agreement, Mr. Zhentao Jiang will assume 90% assets and liabilities of AGM Belize and will be responsible to retrieve the investment funds to return to the Company's former customers. As of December 31, 2018, Mr. Zhentao Jiang retrieved and returned $2,320,023 in cash to the Company's former customers directly. | |||||||||||||||||
Gang Liu [Member] | ||||||||||||||||||
Commitments and Contingencies (Textual) | ||||||||||||||||||
Square meters office space | m² | 186 | 186 | ||||||||||||||||
Lease term, description | The lease starts from December 5, 2016 with a term of six months ended on June 4, 2017. | The lease starts from December 5, 2016 with a term of six months ended on June 4, 2017. | ||||||||||||||||
Rent expense | $ 4,000 | |||||||||||||||||
Gang Liu [Member] | RMB [Member] | ||||||||||||||||||
Commitments and Contingencies (Textual) | ||||||||||||||||||
Rent expense | ¥ | ¥ 27,500 | |||||||||||||||||
International Peaceful Interests Ltd. [Member] | ||||||||||||||||||
Commitments and Contingencies (Textual) | ||||||||||||||||||
Lease term, description | The lease term is from December 8, 2017 to December 7, 2019. | |||||||||||||||||
Rent expense | $ 6,000 | |||||||||||||||||
Lease date of termination | May 31, 2019 | |||||||||||||||||
International Peaceful Interests Ltd. [Member] | HK [Member] | ||||||||||||||||||
Commitments and Contingencies (Textual) | ||||||||||||||||||
Rent expense | $ 48,136 | |||||||||||||||||
Xiaoyi Bai [Member] | ||||||||||||||||||
Commitments and Contingencies (Textual) | ||||||||||||||||||
Square meters office space | m² | 194 | 194 | ||||||||||||||||
Lease term, description | The lease starts from November 1, 2017 and renew option with term of every one year (twelve months) to extend ended to December 31, 2020. | The lease starts from November 1, 2017 and renew option with term of every one year (twelve months) to extend ended to December 31, 2020. | ||||||||||||||||
Rent expense | $ 1,200 | |||||||||||||||||
Xiaoyi Bai [Member] | RMB [Member] | ||||||||||||||||||
Commitments and Contingencies (Textual) | ||||||||||||||||||
Rent expense | ¥ | ¥ 8,500 | |||||||||||||||||
Daqing Zhang [Member] | ||||||||||||||||||
Commitments and Contingencies (Textual) | ||||||||||||||||||
Square meters office space | m² | 50 | 50 | ||||||||||||||||
Lease term, description | The lease starts from January 1, 2019 and renew option with term of every one year (twelve months) to extend ended to December 31, 2020. | The lease starts from January 1, 2019 and renew option with term of every one year (twelve months) to extend ended to December 31, 2020. | ||||||||||||||||
Rent expense | $ 1,000 | |||||||||||||||||
Daqing Zhang [Member] | RMB [Member] | ||||||||||||||||||
Commitments and Contingencies (Textual) | ||||||||||||||||||
Rent expense | ¥ | ¥ 2,500 | |||||||||||||||||
Beijing Zhongzhi [Member] | ||||||||||||||||||
Commitments and Contingencies (Textual) | ||||||||||||||||||
Square meters office space | m² | 95 | 95 | ||||||||||||||||
Lease term, description | The lease starts from April 15, 2019 with a term of one year ended on April 14, 2020. | The lease starts from April 15, 2019 with a term of one year ended on April 14, 2020. | ||||||||||||||||
Rent expense | $ 2,200 | |||||||||||||||||
Lease date of termination | Jul. 31, 2019 | Jul. 31, 2019 | ||||||||||||||||
Beijing Zhongzhi [Member] | RMB [Member] | ||||||||||||||||||
Commitments and Contingencies (Textual) | ||||||||||||||||||
Rent expense | ¥ | ¥ 15,500 | |||||||||||||||||
Gang Li [Member] | ||||||||||||||||||
Commitments and Contingencies (Textual) | ||||||||||||||||||
Square meters office space | m² | 73 | 73 | ||||||||||||||||
Lease term, description | The lease starts from May 30, 2019 with a term of one year ended on May 29, 2020. | The lease starts from May 30, 2019 with a term of one year ended on May 29, 2020. | ||||||||||||||||
Rent expense | $ 1,600 | |||||||||||||||||
Gang Li [Member] | RMB [Member] | ||||||||||||||||||
Commitments and Contingencies (Textual) | ||||||||||||||||||
Rent expense | ¥ | ¥ 11,300 | |||||||||||||||||
Yu Wang [Member] | ||||||||||||||||||
Commitments and Contingencies (Textual) | ||||||||||||||||||
Square meters office space | m² | 187 | 187 | ||||||||||||||||
Lease term, description | On April 15, 2017, April 14, 2018 and April 4, 2019, this lease agreement was renewed to extend the term for one-year term with no change in rent. | On April 15, 2017, April 14, 2018 and April 4, 2019, this lease agreement was renewed to extend the term for one-year term with no change in rent. | ||||||||||||||||
Rent expense | $ 4,000 | |||||||||||||||||
Yu Wang [Member] | RMB [Member] | ||||||||||||||||||
Commitments and Contingencies (Textual) | ||||||||||||||||||
Rent expense | ¥ | ¥ 25,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jul. 26, 2019 | Feb. 15, 2018 | Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stockholders' Equity (Textual) | |||||
Initial public offering, description | A registration statement relating to the securities being sold in this offering was declared effective by the Securities and Exchange Commission ("SEC"). The Company completed the initial public offering of its Class A ordinary shares on April 13, 2018, through the issuance of 1,306,055 Class A ordinary shares at a public offering price of $5.00 per share for net proceeds of $5,732,810. | ||||
Forfeited of ordinary shares | 4,800 | ||||
Shares authorized, description | The Company is authorized to issue 400,000,000 ordinary shares. | ||||
Class A Ordinary Share [Member] | |||||
Stockholders' Equity (Textual) | |||||
Ordinary stock, par value | $ 0.001 | ||||
Ordinary stock, shares authorized | 200,000,000 | ||||
Ordinary stock, shares issued | 21,791,055 | 20,010,000 | 20,010,000 | ||
Ordinary stock, shares outstanding | 21,791,055 | 20,010,000 | 20,010,000 | ||
Class B Ordinary Shares [Member] | |||||
Stockholders' Equity (Textual) | |||||
Ordinary stock, par value | $ 0.001 | ||||
Ordinary stock, shares authorized | 200,000,000 | ||||
Ordinary stock, shares issued | 7,100,000 | 11,900,000 | 11,900,000 | ||
Ordinary stock, shares outstanding | 7,100,000 | 11,900,000 | 11,900,000 | ||
Forfeited of ordinary shares | 4,800,000 | ||||
Anyi [Member] | |||||
Stockholders' Equity (Textual) | |||||
Proceeds of cash received | $ 400,000 | ||||
Duly authorized, fully paid | $ 475,000 | ||||
Equity shares acquisition percent | 100.00% | ||||
Anyi [Member] | Class A Ordinary Share [Member] | |||||
Stockholders' Equity (Textual) | |||||
Share Price | $ 16 | ||||
Zhentao Jiang [Member] | Class A Ordinary Share [Member] | |||||
Stockholders' Equity (Textual) | |||||
Forfeited of ordinary shares | 2,400,000 | ||||
Chengchun Zhang [Member] | Class A Ordinary Share [Member] | |||||
Stockholders' Equity (Textual) | |||||
Forfeited of ordinary shares | 2,400,000 |
Concentrations of Credit Risk_3
Concentrations of Credit Risk and Major Customers and Suppliers (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Suppliers A [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | ||
Suppliers B [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 15.00% | ||
Customers A [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 20.00% | 19.00% | |
Customers B [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | [1] | 19.00% | |
Customers C [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 13.00% | ||
IIG Ltd. (Related Party) [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 24.00% | ||
[1] | Less than 10% |
Concentrations of Credit Risk_4
Concentrations of Credit Risk and Major Customers and Suppliers (Details Textual) | 12 Months Ended | ||
Dec. 31, 2019CustomersSuppliers | Dec. 31, 2018Suppliers | ||
Concentrations of Credit Risk and Major Customers and Suppliers (Textual) | |||
Concentration risk, customers | Receivable balance from IIG Ltd. a related party of the Company, and four other customers accounted for 24%, 19%, 19%, 9% and 9%, respectively, of the total net accounts receivable from both related party and third parties. | ||
Concentration risk, suppliers | One supplier accounted for 98% the Company's total current outstanding accounts payable. | ||
Number of customers | 2 | 4 | |
Number of suppliers | 1 | 2 | |
Supplier One [Member] | |||
Concentrations of Credit Risk and Major Customers and Suppliers (Textual) | |||
Current outstanding accounts payable | 98.00% | 69.00% | |
Concentration risk, percentage | 10.00% | ||
Supplier Two [Member] | |||
Concentrations of Credit Risk and Major Customers and Suppliers (Textual) | |||
Current outstanding accounts payable | 31.00% | ||
Concentration risk, percentage | 15.00% | ||
Suppliers [Member] | |||
Concentrations of Credit Risk and Major Customers and Suppliers (Textual) | |||
Concentration risk, percentage | 10.00% | ||
Customer One [Member] | |||
Concentrations of Credit Risk and Major Customers and Suppliers (Textual) | |||
Accounts receivable from both related party and third parties | 48.00% | ||
Concentration risk, percentage | 20.00% | 19.00% | |
Customer Two [Member] | |||
Concentrations of Credit Risk and Major Customers and Suppliers (Textual) | |||
Accounts receivable from both related party and third parties | 30.00% | ||
Concentration risk, percentage | [1] | 19.00% | |
Customers [Member] | |||
Concentrations of Credit Risk and Major Customers and Suppliers (Textual) | |||
Concentration risk, percentage | 10.00% | ||
Purchases [Member] | |||
Concentrations of Credit Risk and Major Customers and Suppliers (Textual) | |||
Concentration risk, suppliers | 10% or more | 10% or more | |
Sales Revenue, Net [Member] | |||
Concentrations of Credit Risk and Major Customers and Suppliers (Textual) | |||
Concentration risk, customers | 10% or more | 10% or more | |
[1] | Less than 10% |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] | 1 Months Ended |
Jan. 16, 2020 | |
Subsequent Events (Textual) | |
Equity interest | 100.00% |
Yushu Kingo [Member] | |
Subsequent Events (Textual) | |
Agreement in exchange, description | Pursuant to the Agreement, in exchange for 100% of the equity interest in Yushu Kingo, AGM Tianjin agrees to pay $20,000,000 in cash (the "Cash Payment") and cause AGM Holdings to issue 2,000,000 Class A ordinary shares, valued at $15 per share, subject to the terms and conditions of the Agreement (the "Acquisition"). As of the date of this report, AGM Tianjin has made advance payments upon execution of a letter of intent and upon completion of due diligence (the "Advance Payments") of $4,937,664. The Parties has further agreed in the Agreement that the Advance Payments shall count towards the Cash Payment and that AGM Tianjin shall pay the remaining Cash Payment amount (the "Remaining Payment") to Yushu Kingo Shareholders if and only if Yushu Kingo sells no less than 15,000 square meters of real property or generates revenue of no less than RMB 150 million (approximately $21.6 million) during the 24 months after the closing of the Acquisition (the "Cash Payment Condition"). |