Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 15, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Takung Art Co., Ltd. | |
Entity Central Index Key | 0001491487 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Trading Symbol | TKAT | |
Entity Common Stock, Shares Outstanding | 11,255,129 | |
Entity Emerging Growth Company | false | |
Entity Small Business | true |
INTERIM CONDENSED CONSOLIDATED
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 7,740,711 | $ 7,974,884 |
Restricted cash | 10,372,455 | 4,549,202 |
Account receivables, net | 254,784 | 568,757 |
Prepayment and other current assets | 699,093 | 955,249 |
Amount due from a related party | 6,052,420 | 5,907,789 |
Loan receivables | 0 | 2,391,350 |
Total current assets | 25,119,463 | 22,347,231 |
Non-current assets | ||
Property and equipment, net | 1,275,624 | 1,445,679 |
Intangible assets | 22,230 | 22,284 |
Operating Lease, Right-of-Use Asset | 356,418 | 0 |
Deferred tax assets, net | 607,824 | 611,738 |
Other non-current assets | 86,323 | 142,293 |
Total non-current assets | 2,348,419 | 2,221,994 |
Total assets | 27,467,882 | 24,569,225 |
Current liabilities | ||
Accrued expenses and other payables | 569,754 | 641,692 |
Customer deposits | 10,372,455 | 4,549,202 |
Advance from customers | 13,376 | 8,995 |
Short-term borrowings from third parties | 0 | 2,499,500 |
Amount due to a related party | 6,369,589 | 6,385,288 |
Operating Lease, Liability, Current | 181,126 | 0 |
Tax payables | 14,265 | 15,101 |
Total current liabilities | 17,520,565 | 14,099,778 |
NON-CURRENT LIABILITIES | ||
Operating Lease, Liability, Noncurrent | 175,292 | 0 |
Total liabilities | 17,695,857 | 14,099,778 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS' EQUITY | ||
Common stock (1,000,000,000 shares authorized; $0.001 par value; 11,226,025 shares issued and outstanding as of March 31, 2019; 11,226,025 shares issued and outstanding as of December 31, 2018) | 11,226 | 11,226 |
Additional paid-in capital | 6,298,641 | 6,281,790 |
Retained earnings | 3,770,340 | 4,479,133 |
Accumulated other comprehensive loss | (308,182) | (302,702) |
Total shareholders' equity | 9,772,025 | 10,469,447 |
Total liabilities and shareholders' equity | $ 27,467,882 | $ 24,569,225 |
INTERIM CONDENSED CONSOLIDATE_2
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Stockholders' Equity, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 11,226,025 | 11,226,025 |
Common stock, shares outstanding | 11,226,025 | 11,226,025 |
INTERIM CONDENSED CONSOLIDATE_3
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue | ||
Listing fee | $ 289,072 | $ 1,978,667 |
Commission | 178,358 | 1,635,517 |
Authorized agent subscription revenue | 0 | 191,623 |
Management fee | 68,271 | 168,315 |
Annual fee | 162 | |
Total revenue | 535,701 | 3,974,284 |
Cost of revenue | (267,279) | (933,593) |
Gross profit | 268,422 | 3,040,691 |
Operating expenses | ||
General and administrative expenses | (1,274,585) | (3,008,885) |
Selling expenses | (30,812) | (243,591) |
Total operating expenses | (1,305,397) | (3,252,476) |
(Loss) from operations | (1,036,975) | (211,785) |
Other income and expenses: | ||
Other (expenses) income | (21,990) | 239,403 |
Loan interest expense | (154,783) | |
Exchange gain | 358,734 | 992,895 |
Total other income | 336,744 | 1,077,515 |
(Loss) income before income tax expenses | (700,231) | 865,730 |
Income tax expenses | (8,562) | (442,440) |
Net (loss) income | (708,793) | 423,290 |
Foreign currency translation adjustment | (5,480) | (17,167) |
Comprehensive (loss) income | $ (714,273) | $ 406,123 |
(Loss) earnings per common share – basic | $ (0.06) | $ 0.04 |
(Loss) earnings per common share – diluted | $ (0.06) | $ 0.04 |
Weighted average number of common shares outstanding –basic | 11,226,025 | 11,204,215 |
Weighted average number of common shares outstanding –diluted | 11,226,025 | 11,223,408 |
INTERIM CONDENSED CONSOLIDATE_4
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUTIY - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Balance | $ 10,469,447 | $ 17,918,211 |
Share-based compensation | 16,851 | 73,749 |
Net income (loss) | (708,793) | 423,290 |
Foreign currency translation adjustment | (5,480) | (17,167) |
Balance | 9,772,025 | 18,398,083 |
Common stock [Member] | ||
Balance | $ 11,226 | $ 11,189 |
Balance (in Shares) | 11,226,025 | 11,188,882 |
Issuance of ordinary shares for restricted share award | $ 0 | $ 20 |
Issuance of ordinary shares for restricted share award (in shares) | 0 | 20,000 |
Net income (loss) | $ 0 | $ 0 |
Foreign currency translation adjustment | 0 | 0 |
Balance | $ 11,226 | $ 11,209 |
Balance (in Shares) | 11,226,025 | 11,208,882 |
Additional paid-in capital [Member] | ||
Balance | $ 6,281,790 | $ 6,116,216 |
Issuance of ordinary shares for restricted share award | 0 | (20) |
Share-based compensation | 16,851 | 73,749 |
Net income (loss) | 0 | 0 |
Foreign currency translation adjustment | 0 | 0 |
Balance | 6,298,641 | 6,189,945 |
Retained earnings [Member] | ||
Balance | 4,479,133 | 12,111,096 |
Share-based compensation | 0 | 0 |
Net income (loss) | (708,793) | 423,290 |
Foreign currency translation adjustment | 0 | 0 |
Balance | 3,770,340 | 12,534,386 |
Accumulated other comprehensive loss [Member] | ||
Balance | (302,702) | (320,290) |
Share-based compensation | 0 | 0 |
Net income (loss) | 0 | 0 |
Foreign currency translation adjustment | (5,480) | (17,167) |
Balance | $ (308,182) | $ (337,457) |
INTERIM CONDENSED CONSOLIDATE_5
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net cash provided by operating activities | $ 6,175,680 | $ 3,039,614 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (27,233) | (231,478) |
Purchase of available-for-sale investments | (10,633,534) | (28,173,448) |
Maturity and redemption of available-for-sale investments | 10,633,534 | 28,173,448 |
Repayment of loans by third party | 2,443,252 | 239,356 |
Net cash provided by investing activities | 2,416,019 | 7,878 |
Cash flows from financing activities: | ||
Repayment of loan from third party | (2,499,500) | 0 |
Net cash used in financing activities | (2,499,500) | 0 |
Effect of exchange rate change on cash and cash equivalents, and restricted cash | (503,119) | 726,355 |
Net increase in cash, cash equivalents and restricted cash | 5,589,080 | 3,773,847 |
Cash and cash equivalents, and restricted cash beginning balance | 12,524,086 | 37,140,582 |
Cash and cash equivalents, and restricted cash ending balance | 18,113,166 | 40,914,429 |
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets | ||
Cash and cash equivalents as of March 31, 2019 and 2018, respectively | 7,740,711 | 12,809,609 |
Restricted cash as of March 31, 2019 and 2018, respectively | 10,372,455 | 28,104,820 |
Total cash, cash equivalents, and restricted cash as of March 31, 2019 and 2018, respectively | 18,113,166 | 40,914,429 |
Supplemental cash flows information: | ||
Cash paid for interest | 0 | 74,601 |
Cash paid for income tax | $ 0 | $ 108,393 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | 1. ORGANIZATION AND DESCRIPTION OF BUSINESS Takung Art Co., Ltd and subsidiaries (“Takung” or the “Company”), a Delaware corporation (formerly Cardigant Medical Inc.) through Hong Kong Takung Art Company Limited (formerly Hong Kong Takung Assets and Equity of Artworks Exchange Co., Ltd.), a Hong Kong Hong Kong Takung (Shanghai) Co., Ltd (“Shanghai Takung”) is a limited liability company, with a registered capital of $1 million, located in the Shanghai Pilot Free Trade Zone. Shanghai Takung Takung Cultural Development (Tianjin) Co., Ltd (“Tianjin Takung”) is a limited liability company, with a registered capital of $1 million located in the Pilot Free Trade Zone in Tianjin. Tianjin Takung Tianjin Takung provides technology development services to Hong Kong Takung and Shanghai Takung Hong Kong Takung Art Holdings Company Limited (“Takung Art Holdings”) was formed in Hong Kong on July 20, 2018 and operates as a holding company to control an online platform for offering, selling and trading whole piece of artwork. Art Era Internet Technology (Tianjin) Co., Ltd (“Art Era”) was formed in Tianjin on September 7, 2018 , is a directly wholly owned subsidiary of Takung Art Holdings, and formed as a limited liability company with a registered capital of $ million located in the Pilot Free Trade Zone in Tianjin. Art Era mainly focuses on developing our e-commerce platform for art. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated balance sheet as of December 31, 2018, which has been derived from audited financial statements, and the unaudited interim condensed consolidated financial statements as of March 31, 2019 and for the three months ended March 31, 2019 and 2018 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and disclosures, which are normally included in financial statements prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”), have been condensed or omitted pursuant to such rules and regulations. Management believes that the disclosures made are adequate to provide a fair presentation. The interim financial information should be read in conjunction with the financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018, previously filed with the SEC. This basis of accounting involves the application of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when incurred. The Company’s financial statements are expressed in U.S. Dollars. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the Company’s consolidated financial position as of March 31, 2019, its consolidated results of operations and cash flows for the three-month periods ended March 31, 2019 and 2018, as applicable, have been made. The interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods. Recent Accounting Pronouncements Recently Adopted Accounting Standards On January 1, 2019, the Company adopted ASC 842, Leases , using the modified retrospective method which allows for the application of the transition provisions at the beginning of the period of adoption, rather than at the beginning of the earliest comparative period presented in these condensed consolidated financial statements. As permitted by the guidance, the Company elected to retain the original lease classification and historical accounting for initial direct costs for leases existing prior to the adoption date and did not reassess contracts entered into prior to the adoption date for the existence of a lease. The Company also did not recognize ROU assets and lease liabilities for short-term leases, which are leases in existence as of the adoption date with an original term of twelve months or less. As a result of the adoption of the standard, the Company recognized operating lease right-of-use assets and operating lease liabilities of $0.36 million, on its condensed consolidated balance sheet as of March 31, 2019. The assets and liabilities recognized upon application of the transition provisions were primarily associated with existing office and storage leases. Except for the ASUs issued but not yet adopted disclosed in Note 2 to the financial statements on Form 10-K for the fiscal year ended December 31, 2018, previously filed with the SEC, there is no ASU issued by the FASB that is expected to have a material impact on the condensed consolidated financial statements upon adoption. |
PREPAYMENT AND OTHER CURRENT AS
PREPAYMENT AND OTHER CURRENT ASSETS | 3 Months Ended |
Mar. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets [Text Block] | 3. PREPAYMENT AND OTHER CURRENT ASSETS Prepayment and other current assets consisted of the following: March 31, December 31, 2019 2018 (Unaudited) Prepaid taxes $ 401,351 $ 399,026 Deposit 10,803 241,827 Prepaid service fee 94,224 140,934 Staff advance 88,109 93,676 Prepaid repair and maintenance 1,360 1,201 Short-term borrowings to third parties 53,505 - Other current assets 49,741 78,585 Prepayment and other current assets $ 699,093 $ 955,249 |
ACCOUNT RECEIVABLES, NET
ACCOUNT RECEIVABLES, NET | 3 Months Ended |
Mar. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 4. ACCOUNT RECEIVABLES, NET Account receivables consisted of the following: March 31, December 31, (Unaudited) Listing fee $ 254,784 $ 568,757 Authorized agent subscription revenue 556,465 557,837 Monthly commission fee 1,374,760 1,378,148 Others 53,494 53,626 Less: allowance for doubtful accounts (1,984,719 ) (1,989,611 ) Account receivables, net $ 254,784 $ 568,757 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | 5. PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following: March 31, December 31, 2019 2018 (Unaudited) Furniture, fixtures and equipment $ 157,294 $ 156,656 Leasehold improvements 345,398 447,048 Computer trading and clearing system 3405,085 3,382,168 Transport equipment 107,189 104,628 Sub-total 4,014,966 4,090,500 Less: accumulated depreciation (2,739,342 ) (2,644,821 ) Property and equipment, net $ 1,275,624 $ 1,445,679 Depreciation expense was $156,779 and $228,704 for the three months ended March 31, 2019 and 2018, respectively. |
ACCRUED EXPENSES AND OTHER PAYA
ACCRUED EXPENSES AND OTHER PAYABLES | 3 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER PAYABLES | 6. ACCRUED EXPENSES AND OTHER PAYABLES Accrued expenses and other payables as of March 31, 2019 and December 31, 2018 consisted of the following: March 31, December 31, 2019 2018 (Unaudited) Accruals for consulting fees $ 264,142 $ 264,793 Payroll payables 99,838 104,437 Trading and clearing system 52,507 86,208 Accruals for professional fees 113,593 49,518 Other payables 39,674 136,736 Total accrued expenses and other payables $ 569,754 $ 641,692 |
RELATED PARTY BALANCES AND TRAN
RELATED PARTY BALANCES AND TRANSACTIONS | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY BALANCES AND TRANSACTIONS | 7. RELATED PARTY BALANCES AND TRANSACTIONS The following is a list of director and related parties to which the Company has transactions with: (a) Wang Song (“Wang”), the General Manager of Tianjin Takung and Shanghai Takung, and Director of Hong Kong Takung, Tianjin Takung and Shanghai Takung. (b) Liu Zhenying (“Liu”), the former Vice President of Hong Kong Takung. Liu resigned from the Company on September 30, 2018. Amount due from a related party consisted of the following as of the years indicated: March 31, December 31, (Unaudited) Wang (a) $ 6,052,420 $ 5,907,789 Total 6,052,420 5,907,789 Amount due to related party Amount due to related party consisted of the following as of the years indicated: March 31, December 31, (Unaudited) Wang (a) $ 6,369,589 $ 6,385,288 Total 6,369,589 6,385,288 On May 16, 2018, Hong Kong Takung entered into an interest-free loan agreement (the "HK Dollar Loan") with Liu that was transferred to Wang on October 18, 2018 for the loan of $6,369,589(HK$50,000,000) to Hong Kong Takung. The purpose of the loan is to provide Hong Kong Takung with sufficient Hong Kong Dollar-denominated currency to meet its working capital requirements maturity date of the loan is May 15, 2019. In the meantime, Tianjin Takung entered into an interest-free loan agreement (the "RMB Loan") with Liu that was transferred to Wang on October 18, 2018 for the loan of $6,052,420 (RMB40,619,000) to Wang with the maturity date of the loan is May 15, 2019. Through an understanding between Wang and the Company, the HK Dollar Loan is "secured" by the RMB Loan. It is the understanding between the parties that the HK Dollar Loan and the RMB Loan will be repaid simultaneously. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 8. INCOME TAXES Takung was incorporated in the State of Delaware and is subject to United States income tax. Hong Kong Takung was incorporated in Hong Kong S.A.R. People’s Republic of China and is subject to Hong Kong profits tax. Shanghai Takung and Tianjin Takung are PRC corporations and are subject to enterprise taxes in the PRC. United States of America Tax Cuts and Jobs Act Enacted in 2017 On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to, (1) reducing the U.S. federal corporate income tax rate from 35 percent to 21 percent; (2) requiring companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries; (3) generally eliminating U.S. federal corporate income taxes on dividends from foreign subsidiaries; and (4) providing modification to subpart F provisions and new taxes on certain foreign earnings such as Global Intangible Low-Taxed Income (GILTI). Except for the one-time transition tax, most of these provisions went into effect starting January 1, 2018. On December 22, 2017, Staff Accounting Bulletin No. 118 (“SAB118”) was issued to provide guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740. As of December 22, 2018, the Company has completed the assessment of the income tax effect of the Tax Act and there were no adjustments recorded to the provisional amounts. The Global Intangible Low-taxed Income (GILTI) is a new provision introduced by the Tax Cuts and Jobs Act. U.S. shareholders, who are domestic corporations, of controlled foreign corporations (CFCs) are eligible for up to an 80% deemed paid foreign tax credit (FTC) and a 50% deduction of the current year inclusion with the full amount of the Section 78 gross-up subject to limitation. This new provision is effective for tax years of foreign corporations beginning after December 31, 2017. The Company has evaluated whether it has additional provision amount resulted by the GILTI inclusion on current earnings and profits of its foreign controlled corporations. The Company has made an accounting policy choice of treating taxes due on future U.S. inclusions in taxable amount related to GILTI as a current period expense when incurred. For the three months ended March 31, 2019 and 2018, the Company does not have any aggregated positive tested income; and as such, does not have additional provision amount recorded for GILTI tax. As of March 31, 2019 and December 31, 2018, the Company in the United States had $248,945 and $1,332,488 in net operating loss carry forwards available to offset future taxable income, respectively. For net operating losses arising after December 31, 2017, the Tax Act limits the Company’s ability to utilize NOL carryforwards to 80% of taxable income and carryforward the NOL indefinitely. Carrybacks are now prohibited. NOLs generated prior to January 1, 2018 will not be subject to the taxable income limitation and will begin to expire in 2033 if not utilized. Hong Kong The two-tier profits tax rates system was introduced under the Inland Revenue (Amendment)(No.3) Ordinance 2018 (“the Ordinance”) of Hong Kong became effective for the assessment year 2018/2019. Under the two-tier profit tax rates regime, the profits tax rate for the first HKD 2 million (approximately $255,180) of assessable profits of a corporation will be subject to the lowered tax rate, 8.25% while the remaining assessable profits will be subject to the legacy tax rate, 16.5%. The Ordinance only allows one entity within a group of “connected entities” is eligible for the two-tier tax rate benefit. An entity is a connected entity of another entity if (1) one of them has control over the other; (2) both of them are under the control (more than 50% of the issued share capital) of the same entity; (3) in the case of the first entity being a natural person carrying on a sole proprietorship business-the other entity is the same person carrying on another sole proprietorship business. Since Hong Kong Takung and Takung Art Holdings are wholly owned and under the control of Takung U.S, both entities are connected entities. Under the Ordinance, it is an entity’s election to nominate the entity that will be subject to the two-tier profits tax rates on its Profits Tax Return. The election is irrevocable. We elected Hong Kong Takung to be subject to the two-tier profits tax rates. The provision for current income taxes of the subsidiary operating in Hong Kong has been calculated by applying the current rate of taxation of 16.5% for the three months ended March 31, 2019 and the year ended December 31, 2018, if applicable. PRC In accordance with the relevant tax laws and regulations of the PRC, a company registered in the PRC is subject to income taxes within the PRC at the applicable tax rate on taxable income. All the PRC subsidiaries were subject to income tax at a rate of 25%. The income tax provision consists of the following components: For the Three Months Ended 2019 2018 (Unaudited) (Unaudited) Current: Federal $ - $ - State - - Foreign - 356,281 Total Current $ - $ 356,281 Deferred: Federal $ - $ 37,398 State - - Foreign 8,562 48,761 Total Deferred $ 8,562 $ 86,159 Total income tax (benefit) expense $ 8,562 $ 442,440 A reconciliation between the Company’s actual provision for income taxes and the provision at the Hong Kong statutory rate is as follows: For the Three Months Ended 2019 2018 (Unaudited) (Unaudited) (Loss) income before income tax expense $ (700,231 ) $ 865,730 Computed tax expense with statutory tax rate (115,494 ) 142,845 Impact of different tax rates in other jurisdictions 39,483 20,700 Non-deductible items: Tax effect of non-deductible expenses 6,825 141,310 Changes in valuation allowance 77,748 137,585 Total income tax expense $ 8,562 $ 442,440 The effective tax rate was (1.2)% and 51.5% for the three months ended March 31, 2019 and 2018, respectively. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | 9. LEASES The Company has operating leases for its office facilities and artwork storages. The Company's leases have remaining terms of less than one year to approximately six years. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company does not separate non-lease components from the lease components to which they relate, and instead accounts for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes. The following table provides a summary of leases by balance sheet location as of March 31, 2019: Assets/liabilities Classification As of March 31, Assets Operating lease right-of-use assets Operating lease assets $ 356,418 Liabilities Current Operating lease liability - current Current operating lease liabilities $ 181,126 Long-term Operating lease liability - non-current Long-term operating lease liabilities 175,292 Total lease liabilities $ 356,418 The operating lease expenses for the three months ended March 31, 2019 were as follows: Three months ended Lease Cost Classification March 31, 2019 Operating lease cost Cost of revenue, general and administrative expenses $ 50,778 Total lease cost $ 50,778 Maturities of operating lease liabilities at March 31, 2019 were as follows: Maturity of Lease Liabilities Operating Leases 2019 (remaining) $ 152,321 2020 177,200 2021 14,900 2022 14,900 2023 14,900 Thereafter 22,352 Total lease payments $ 396,573 Less: interest (40,155 ) Present value of lease payments $ 356,418 Future minimum lease payments as of December 31, 2018 were as follows: Lease (1) Year ending December 31, 2019 $ 396,243 Year ending December 31, 2020 230,683 Year ending December 31, 2021 14,737 Year ending December 31, 2022 14,737 Year ending December 31, 2023 and thereafter 37,457 Total $ 693,857 (1) Amounts are based on ASC 840, Leases that was superseded upon our adoption of ASC 842, Lease on January 1, 2019. Lease Term and Discount Rate March 31, 2019 Weighted-average remaining lease term (years) Operating leases 2.60 Weighted-average discount rate (%) Operating leases 8 % Three months ended March 31, Other Information 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 41,063 Leased assets obtained in exchange for new operating lease liabilities 275,189 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 10. EARNINGS PER SHARE Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted-average number of common shares and dilutive potential common shares outstanding during the period. For the Three Months Ended 2019 2018 (Unaudited) (Unaudited) Numerator: Net (loss) income $ (708,793 ) $ 423,290 Denominator: Weighted-average shares outstanding - Basic 11,226,025 11,204,215 Stock options and restricted shares - 19,193 Weighted-average shares outstanding - Diluted 11,226,025 11,223,408 (Loss) earnings per share -Basic (0.06 ) 0.04 -Diluted (0.06 ) 0.04 Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. Due to the loss from continued operations for the three months ended March 31, 2019, approximately 149,323 and 15,000 options and restricted shares, respectively, were excluded from the calculation of diluted net loss per share. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 11. SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date of issuance of the consolidated financial statements, other than the debt settlement disclosed in Note 7, there were no other subsequent events occurred that would require recognition or disclosure in the interim condensed |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying consolidated balance sheet as of December 31, 2018, which has been derived from audited financial statements, and the unaudited interim condensed consolidated financial statements as of March 31, 2019 and for the three months ended March 31, 2019 and 2018 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and disclosures, which are normally included in financial statements prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”), have been condensed or omitted pursuant to such rules and regulations. Management believes that the disclosures made are adequate to provide a fair presentation. The interim financial information should be read in conjunction with the financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018, previously filed with the SEC. This basis of accounting involves the application of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when incurred. The Company’s financial statements are expressed in U.S. Dollars. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the Company’s consolidated financial position as of March 31, 2019, its consolidated results of operations and cash flows for the three-month periods ended March 31, 2019 and 2018, as applicable, have been made. The interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements Recently Adopted Accounting Standards On January 1, 2019, the Company adopted ASC 842, Leases , using the modified retrospective method which allows for the application of the transition provisions at the beginning of the period of adoption, rather than at the beginning of the earliest comparative period presented in these condensed consolidated financial statements. As permitted by the guidance, the Company elected to retain the original lease classification and historical accounting for initial direct costs for leases existing prior to the adoption date and did not reassess contracts entered into prior to the adoption date for the existence of a lease. The Company also did not recognize ROU assets and lease liabilities for short-term leases, which are leases in existence as of the adoption date with an original term of twelve months or less. As a result of the adoption of the standard, the Company recognized operating lease right-of-use assets and operating lease liabilities of $0.36 million, on its condensed consolidated balance sheet as of March 31, 2019. The assets and liabilities recognized upon application of the transition provisions were primarily associated with existing office and storage leases. Except for the ASUs issued but not yet adopted disclosed in Note 2 to the financial statements on Form 10-K for the fiscal year ended December 31, 2018, previously filed with the SEC, there is no ASU issued by the FASB that is expected to have a material impact on the condensed consolidated financial statements upon adoption. |
PREPAYMENT AND OTHER CURRENT _2
PREPAYMENT AND OTHER CURRENT ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | Prepayment and other current assets consisted of the following: March 31, December 31, 2019 2018 (Unaudited) Prepaid taxes $ 401,351 $ 399,026 Deposit 10,803 241,827 Prepaid service fee 94,224 140,934 Staff advance 88,109 93,676 Prepaid repair and maintenance 1,360 1,201 Short-term borrowings to third parties 53,505 - Other current assets 49,741 78,585 Prepayment and other current assets $ 699,093 $ 955,249 |
ACCOUNT RECEIVABLES, NET (Table
ACCOUNT RECEIVABLES, NET (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounts Receivable [Member] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Account receivables consisted of the following: March 31, December 31, (Unaudited) Listing fee $ 254,784 $ 568,757 Authorized agent subscription revenue 556,465 557,837 Monthly commission fee 1,374,760 1,378,148 Others 53,494 53,626 Less: allowance for doubtful accounts (1,984,719 ) (1,989,611 ) Account receivables, net $ 254,784 $ 568,757 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment consisted of the following: March 31, December 31, 2019 2018 (Unaudited) Furniture, fixtures and equipment $ 157,294 $ 156,656 Leasehold improvements 345,398 447,048 Computer trading and clearing system 3405,085 3,382,168 Transport equipment 107,189 104,628 Sub-total 4,014,966 4,090,500 Less: accumulated depreciation (2,739,342 ) (2,644,821 ) Property and equipment, net $ 1,275,624 $ 1,445,679 |
ACCRUED EXPENSES AND OTHER PA_2
ACCRUED EXPENSES AND OTHER PAYABLES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | Accrued expenses and other payables as of March 31, 2019 and December 31, 2018 consisted of the following: March 31, December 31, 2019 2018 (Unaudited) Accruals for consulting fees $ 264,142 $ 264,793 Payroll payables 99,838 104,437 Trading and clearing system 52,507 86,208 Accruals for professional fees 113,593 49,518 Other payables 39,674 136,736 Total accrued expenses and other payables $ 569,754 $ 641,692 |
RELATED PARTY BALANCES AND TR_2
RELATED PARTY BALANCES AND TRANSACTIONS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | The following is a list of director and related parties to which the Company has transactions with: (a) Wang Song (“Wang”), the General Manager of Tianjin Takung and Shanghai Takung, and Director of Hong Kong Takung, Tianjin Takung and Shanghai Takung. (b) Liu Zhenying (“Liu”), the former Vice President of Hong Kong Takung. Liu resigned from the Company on September 30, 2018. Amount due from a related party consisted of the following as of the years indicated: March 31, December 31, (Unaudited) Wang (a) $ 6,052,420 $ 5,907,789 Total 6,052,420 5,907,789 Amount due to related party Amount due to related party consisted of the following as of the years indicated: March 31, December 31, (Unaudited) Wang (a) $ 6,369,589 $ 6,385,288 Total 6,369,589 6,385,288 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The income tax provision consists of the following components: For the Three Months Ended 2019 2018 (Unaudited) (Unaudited) Current: Federal $ - $ - State - - Foreign - 356,281 Total Current $ - $ 356,281 Deferred: Federal $ - $ 37,398 State - - Foreign 8,562 48,761 Total Deferred $ 8,562 $ 86,159 Total income tax (benefit) expense $ 8,562 $ 442,440 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation between the Company’s actual provision for income taxes and the provision at the Hong Kong statutory rate is as follows: For the Three Months Ended 2019 2018 (Unaudited) (Unaudited) (Loss) income before income tax expense $ (700,231 ) $ 865,730 Computed tax expense with statutory tax rate (115,494 ) 142,845 Impact of different tax rates in other jurisdictions 39,483 20,700 Non-deductible items: Tax effect of non-deductible expenses 6,825 141,310 Changes in valuation allowance 77,748 137,585 Total income tax expense $ 8,562 $ 442,440 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lessee, Operating Lease, Disclosure [Table Text Block] | The following table provides a summary of leases by balance sheet location as of March 31, 2019: Assets/liabilities Classification As of March 31, Assets Operating lease right-of-use assets Operating lease assets $ 356,418 Liabilities Current Operating lease liability - current Current operating lease liabilities $ 181,126 Long-term Operating lease liability - non-current Long-term operating lease liabilities 175,292 Total lease liabilities $ 356,418 |
Lease, Cost [Table Text Block] | The operating lease expenses for the three months ended March 31, 2019 were as follows: Three months ended Lease Cost Classification March 31, 2019 Operating lease cost Cost of revenue, general and administrative expenses $ 50,778 Total lease cost $ 50,778 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Maturities of operating lease liabilities at March 31, 2019 were as follows: Maturity of Lease Liabilities Operating Leases 2019 (remaining) $ 152,321 2020 177,200 2021 14,900 2022 14,900 2023 14,900 Thereafter 22,352 Total lease payments $ 396,573 Less: interest (40,155 ) Present value of lease payments $ 356,418 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum lease payments as of December 31, 2018 were as follows: Lease (1) Year ending December 31, 2019 $ 396,243 Year ending December 31, 2020 230,683 Year ending December 31, 2021 14,737 Year ending December 31, 2022 14,737 Year ending December 31, 2023 and thereafter 37,457 Total $ 693,857 (1) Amounts are based on ASC 840, Leases that was superseded upon our adoption of ASC 842, Lease on January 1, 2019. |
Schedule Of Remaining Lease Tenure Amd Discount Rate Disclosed On the Basis Of Weighted Average [Table Text Block] | Lease Term and Discount Rate March 31, 2019 Weighted-average remaining lease term (years) Operating leases 2.60 Weighted-average discount rate (%) Operating leases 8 % |
Supplementary Dislosure of Cash Flows and Other aspects Pertaining To Operating Lease [Table Text Block] | Three months ended March 31, Other Information 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 41,063 Leased assets obtained in exchange for new operating lease liabilities 275,189 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted-average number of common shares and dilutive potential common shares outstanding during the period. For the Three Months Ended 2019 2018 (Unaudited) (Unaudited) Numerator: Net (loss) income $ (708,793 ) $ 423,290 Denominator: Weighted-average shares outstanding - Basic 11,226,025 11,204,215 Stock options and restricted shares - 19,193 Weighted-average shares outstanding - Diluted 11,226,025 11,223,408 (Loss) earnings per share -Basic (0.06 ) 0.04 -Diluted (0.06 ) 0.04 |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Textual) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Art Era Internet Technology Tianjin Co Ltd [Member] | |
Organization And Description Of Business [Line Items] | |
Equity Method Investment Summarized Financial Information, Equity | $ 2 |
Subsidiary of Limited Liability Company or Limited Partnership, Date | Sep. 7, 2018 |
HongKong Takung Assets And Equity of Artworks Exchange Co Ltd [Member] | |
Organization And Description Of Business [Line Items] | |
Entity Incorporation, State Country Name | Hong Kong |
Entity Incorporation, Date of Incorporation | Sep. 17, 2012 |
Takung Shanghai Co Ltd [Member] | |
Organization And Description Of Business [Line Items] | |
Entity Incorporation, State Country Name | Shanghai Takung |
Entity Incorporation, Date of Incorporation | Jul. 28, 2015 |
Capital Units, Value | $ 1 |
Takung Cultural Development Tianjin Co Ltd [Member] | |
Organization And Description Of Business [Line Items] | |
Entity Incorporation, State Country Name | Tianjin Takung |
Entity Incorporation, Date of Incorporation | Jan. 27, 2016 |
Capital Units, Value | $ 1 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Summary of Significant Accounting Policies [Line Items] | ||
Operating Lease, Right-of-Use Asset | $ 356,418 | $ 0 |
Operating Lease, Liability | 356,418 | |
Accounting Standards Update 2016-02 [Member] | Office Building [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Operating Lease, Right-of-Use Asset | 360,000 | |
Operating Lease, Liability | $ 360,000 |
PREPAYMENT AND OTHER CURRENT _3
PREPAYMENT AND OTHER CURRENT ASSETS (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid taxes | $ 401,351 | $ 399,026 |
Deposit | 10,803 | 241,827 |
Prepaid service fee | 94,224 | 140,934 |
Staff advance | 88,109 | 93,676 |
Prepaid repair and maintenance | 1,360 | 1,201 |
Short-term borrowings to third parties | 53,505 | 0 |
Other current assets | 49,741 | 78,585 |
Prepayment and other current assets | $ 699,093 | $ 955,249 |
ACCOUNT RECEIVABLES, NET (Detai
ACCOUNT RECEIVABLES, NET (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Less: allowance for doubtful accounts | $ (1,984,719) | $ (1,989,611) |
Account receivables, net | 254,784 | 568,757 |
Listing Fee [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross, Current | 254,784 | 568,757 |
Authorized Agent Subscription Revenue [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross, Current | 556,465 | 557,837 |
Monthly Commission Fee [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross, Current | 1,374,760 | 1,378,148 |
Others [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross, Current | $ 53,494 | $ 53,626 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Cost | ||
Furniture, fixtures and equipment | $ 157,294 | $ 156,656 |
Leasehold improvements | 345,398 | 447,048 |
Computer trading and clearing system | 3,405,085 | 3,382,168 |
Transport equipment | 107,189 | 104,628 |
Sub-total | 4,014,966 | 4,090,500 |
Less: accumulated depreciation | (2,739,342) | (2,644,821) |
Property and equipment, net | $ 1,275,624 | $ 1,445,679 |
PROPERTY AND EQUIPMENT, NET (_2
PROPERTY AND EQUIPMENT, NET (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 156,779 | $ 228,704 |
ACCRUED EXPENSES AND OTHER PA_3
ACCRUED EXPENSES AND OTHER PAYABLES (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Accruals for consulting fees | $ 264,142 | $ 264,793 |
Payroll payables | 99,838 | 104,437 |
Trading and clearing system | 52,507 | 86,208 |
Accruals for professional fees | 113,593 | 49,518 |
Other payables | 39,674 | 136,736 |
Total accrued expenses and other payables | $ 569,754 | $ 641,692 |
RELATED PARTY BALANCES AND TR_3
RELATED PARTY BALANCES AND TRANSACTIONS (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | |
Due from Related Parties, Current | $ 6,052,420 | $ 5,907,789 | |
Due to Related Parties, Current | 6,369,589 | 6,385,288 | |
Wang Song [Member] | |||
Due from Related Parties, Current | [1] | 6,052,420 | 5,907,789 |
Due to Related Parties, Current | [1] | $ 6,369,589 | $ 6,385,288 |
[1] | Wang Song (“Wang”), the General Manager of Tianjin Takung and Shanghai Takung, and Director of Hong Kong Takung, Tianjin Takung and Shanghai Takung. |
RELATED PARTY BALANCES AND TR_4
RELATED PARTY BALANCES AND TRANSACTIONS (Details Textual) - 1 months ended Oct. 18, 2018 | USD ($) | HKD ($) | CNY (¥) |
Related Party Transaction [Line Items] | |||
Receivable with Imputed Interest, Face Amount | $ 6,052,420 | ¥ 40,619,000 | |
Receivable with Imputed Interest, Due Date | May 15, 2019 | ||
Loans Payable [Member] | |||
Related Party Transaction [Line Items] | |||
Debt Instrument, Face Amount | $ 6,369,589 | $ 50,000,000 | |
Debt Instrument, Maturity Date | May 15, 2019 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Current: | ||
Federal | $ 0 | $ 0 |
State | 0 | 0 |
Foreign | 0 | 356,281 |
Total Current | 0 | 356,281 |
Deferred: | ||
Federal | 0 | 37,398 |
State | 0 | 0 |
Foreign | 8,562 | 48,761 |
Total Deferred | 8,562 | 86,159 |
Total income tax (benefit) expense | $ 8,562 | $ 442,440 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
(Loss) income before income tax expense | $ (700,231) | $ 865,730 |
Computed tax expense with statutory tax rate | (115,494) | 142,845 |
Impact of different tax rates in other jurisdictions | 39,483 | 20,700 |
Non-deductible items: | ||
Tax effect of non-deductible expenses | 6,825 | 141,310 |
Changes in valuation allowance | 77,748 | 137,585 |
Total provision for income taxes | $ 8,562 | $ 442,440 |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019USD ($) | Mar. 31, 2018 | Dec. 31, 2018USD ($) | Dec. 31, 2017 | Mar. 31, 2019HKD ($) | |
Income Taxes [Line Items] | |||||
Operating Loss Carryforwards | $ 248,945 | $ 1,332,488 | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | |||
Assessable Profit, Less Than $255,180 | $ 255,180 | $ 2 | |||
Percentage Of Net Operating Loss Carryforwards | 80.00% | ||||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2033 | ||||
Income Tax Slab One Rate [Member] | |||||
Income Taxes [Line Items] | |||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 8.25% | ||||
Income Tax Slab Two Rate [Member] | |||||
Income Taxes [Line Items] | |||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 16.50% | ||||
Hong Kong Subsidiaries [Member] | |||||
Income Taxes [Line Items] | |||||
Effective Income Tax Rate Reconciliation, Percent | (1.20%) | 51.50% | |||
Hong Kong [Member] | |||||
Income Taxes [Line Items] | |||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 16.50% | 16.50% | |||
PRC [Member] | |||||
Income Taxes [Line Items] | |||||
Effective Income Tax Rate Reconciliation, Percent | 25.00% |
LEASES (Details)
LEASES (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 356,418 | $ 0 |
Operating lease liability - current | 181,126 | 0 |
Operating lease liability - non-current | 175,292 | $ 0 |
Total lease liabilities | $ 356,418 |
LEASES (Details 1)
LEASES (Details 1) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 50,778 |
Total lease cost | $ 50,778 |
LEASES (Details 2)
LEASES (Details 2) | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
2019 (remaining) | $ 152,321 |
2020 | 177,200 |
2021 | 14,900 |
2022 | 14,900 |
2023 | 14,900 |
Thereafter | 22,352 |
Total lease payments | 396,573 |
Less: interest | (40,155) |
Present value of lease payments | $ 356,418 |
LEASES (Details 3)
LEASES (Details 3) | Dec. 31, 2018USD ($) | [1] |
Leases [Abstract] | ||
Year ending December 31, 2019 | $ 396,243 | |
Year ending December 31, 2020 | 230,683 | |
Year ending December 31, 2021 | 14,737 | |
Year ending December 31, 2022 | 14,737 | |
Year ending December 31, 2023 and thereafter | 37,457 | |
Total | $ 693,857 | |
[1] | Amounts are based on ASC 840, Leases that was superseded upon our adoption of ASC 842, Lease on January 1, 2019. |
LEASES (Details 4)
LEASES (Details 4) | Mar. 31, 2019 |
Leases [Abstract] | |
Operating leases | 2 years 7 months 6 days |
Operating leases | 8.00% |
LEASES (Details 5)
LEASES (Details 5) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 41,063 |
Leased assets obtained in exchange for new operating lease liabilities | $ 275,189 |
LEASES (Details Textual)
LEASES (Details Textual) | 3 Months Ended |
Mar. 31, 2019 | |
Operating Lease, Weighted Average Remaining Lease Term | 2 years 7 months 6 days |
Lessee, Operating Lease, Description | The Company has operating leases for its office facilities and artwork storages. The Company's leases have remaining terms of less than one year to approximately six years. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. |
Minimum [Member] | |
Operating Lease, Weighted Average Remaining Lease Term | 1 year |
Maximum [Member] | |
Operating Lease, Weighted Average Remaining Lease Term | 6 years |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator: | ||
Net (loss) income | $ (708,793) | $ 423,290 |
Denominator: | ||
Weighted-average shares outstanding-Basic | 11,226,025 | 11,204,215 |
Stock options and restricted shares | 0 | 19,193 |
Weighted-average shares outstanding-Diluted | 11,226,025 | 11,223,408 |
(Loss) earnings per share | ||
-Basic | $ (0.06) | $ 0.04 |
-Diluted | $ (0.06) | $ 0.04 |
EARNINGS PER SHARE (Details Tex
EARNINGS PER SHARE (Details Textual) | 3 Months Ended |
Mar. 31, 2019shares | |
Employee Stock Option [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 149,323 |
Restricted Stock [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 15,000 |