Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 21, 2022 | Jun. 30, 2021 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Entity File Number | 000-54884 | ||
Entity Registrant Name | China United Insurance Service, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 30-0826400 | ||
Entity Address, Address Line One | 7F, No. 311 Section 3 | ||
Entity Address, Address Line Two | Nan-King East Road | ||
Entity Address, City or Town | Taipei City | ||
Entity Address, Country | TW | ||
City Area Code | 8862 | ||
Local Phone Number | 87126958 | ||
Title of 12(g) Security | Common Stock, par value of $0.00001 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Public Float | $ 39,375,044 | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 30,286,199 | ||
Entity Central Index Key | 0001512927 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Trading Symbol | CUII | ||
ICFR Auditor Attestation Flag | false | ||
Auditor Name | Macias Gini & O’Connell LLP | ||
Auditor Firm ID | 1195 | ||
Auditor Location | San Francisco, California |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 18,234,350 | $ 9,063,338 |
Time deposits | 64,299,176 | 53,339,508 |
Accounts receivable and notes receivable | 26,761,678 | 25,346,250 |
Marketable securities | 0 | 1,272,573 |
Other current assets | 1,207,496 | 1,491,168 |
Total current assets | 110,502,700 | 90,512,837 |
Right-of-use assets under operating leases | 6,449,182 | 6,524,555 |
Property and equipment, net | 2,061,755 | 2,373,245 |
Intangible assets, net | 333,118 | 381,747 |
Long-term investments | 2,696,812 | 2,835,095 |
Restricted cash - noncurrent | 88,282 | 66,490 |
Deferred tax assets | 909,032 | 1,021,890 |
Other assets | 4,740,640 | 4,012,370 |
TOTAL ASSETS | 127,781,521 | 107,728,229 |
Current liabilities | ||
Commissions payable to sales professionals | 14,003,541 | 12,088,291 |
Short-term loans | 18,835,932 | 14,159,108 |
Contract liabilities - current | 0 | 1,119,361 |
Income tax payable - current | 3,893,047 | 3,146,018 |
Operating lease liabilities - current | 3,059,329 | 3,043,056 |
Due to related parties | 50,531 | 94,047 |
Other current liabilities | 13,997,603 | 13,591,034 |
Total current liabilities | 53,839,983 | 47,240,915 |
Income tax payable - noncurrent | 539,636 | 719,515 |
Operating lease liabilities - noncurrent | 3,298,089 | 3,440,343 |
Net defined benefit liabilities - noncurrent | 389,198 | 318,542 |
Other liabilities | 541,754 | 771,680 |
TOTAL LIABILITIES | 58,608,660 | 52,490,995 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS EQUITY | ||
Preferred stock, $0.00001 par value, 10,000,000 authorized, 1,000,000 issued and outstanding as of December 31, 2021 and 2020, respectively | 10 | 10 |
Common stock, $0.00001 par value, 100,000,000 authorized, 30,286,199 and 29,421,736 issued and outstanding as of December 31, 2021 and 2020, respectively | 303 | 294 |
Additional paid-in capital | 9,296,953 | 8,190,449 |
Statutory reserves | 11,101,064 | 9,463,903 |
Retained earnings (deficit) | 13,690,368 | 9,097,408 |
Accumulated other comprehensive income (loss) | 4,664,848 | 3,889,429 |
Total stockholders' equity attributable to China United's shareholders | 38,753,546 | 30,641,493 |
Noncontrolling interests | 30,419,315 | 24,595,741 |
TOTAL STOCKHOLDERS' EQUITY | 69,172,861 | 55,237,234 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 127,781,521 | $ 107,728,229 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
CONSOLIDATED BALANCE SHEETS | ||
Preferred stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred Stock, shares issued | 1,000,000 | 1,000,000 |
Preferred Stock, shares outstanding | 1,000,000 | 1,000,000 |
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 30,286,199 | 29,421,736 |
Common stock, shares outstanding | 30,286,199 | 29,421,736 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME | ||
Revenue | $ 131,363,175 | $ 124,267,072 |
Cost of revenue | 84,943,319 | 87,695,053 |
Gross profit | 46,419,856 | 36,572,019 |
Operating expenses: | ||
Selling | 2,285,956 | 3,226,109 |
General and administrative and other operating expense | 27,400,845 | 26,955,278 |
Total operating expenses | 29,686,801 | 30,181,387 |
Loss from operations | 16,733,055 | 6,390,632 |
Other income/(expenses): | ||
Interest income | 448,657 | 453,536 |
Interest expenses | (183,927) | (202,239) |
Dividend income | 258,601 | 390,030 |
Fair value remeasurement on earn-out provisions | (1,106,513) | |
Other - net | 497,746 | (590,319) |
Total other income (expense), net | (85,436) | 51,008 |
Income before income tax | 16,647,619 | 6,441,640 |
Income tax expense | (4,994,651) | (3,407,868) |
Net loss | 11,652,968 | 3,033,772 |
Less: net income attributable to noncontrolling interests | (5,422,847) | (2,103,659) |
Net income attributable to the Company's shareholders | 6,230,121 | 930,113 |
Other comprehensive items, net of tax: | ||
Foreign currency translation gain | 1,159,971 | 5,046,115 |
Other | 16,175 | (22,767) |
Other comprehensive income | 1,176,146 | 5,023,348 |
Comprehensive income | 12,829,114 | 8,057,120 |
Less: comprehensive income attributable to noncontrolling interests | (5,823,574) | (3,654,593) |
Comprehensive income attributable to China United's shareholders | $ 7,005,540 | $ 4,402,527 |
Weighted average shares outstanding: | ||
Basic | 29,604,102 | 29,421,736 |
Diluted | 29,604,102 | 29,421,736 |
Earnings per share attributable to China United's shareholders: | ||
Basic | $ 0.204 | $ 0.031 |
Diluted | $ 0.204 | $ 0.031 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Common Stock | Preferred Stock | Additional Paid-in Capital [Member] | Statutory Reserves [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] | Parent [Member] | Noncontrolling Interests [Member] | Total |
Balance at Dec. 31, 2019 | $ 294 | $ 10 | $ 8,190,449 | $ 8,228,904 | $ 417,015 | $ 9,402,294 | $ 26,238,966 | $ 19,512,526 | $ 45,751,492 |
Balance (in shares) at Dec. 31, 2019 | 29,421,736 | 1,000,000 | |||||||
Appropriation of reserves | $ 0 | $ 0 | 0 | 1,234,999 | 0 | (1,234,999) | 0 | 0 | 0 |
Issuance of preferred stock-based compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1,427,603 | 1,427,603 |
Business acquisition | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1,019 | 1,019 |
Foreign currency translation gain | 0 | 0 | 0 | 0 | 3,487,429 | 0 | 3,487,429 | 1,558,686 | 5,046,115 |
Other comprehensive gain (loss) | 0 | 0 | 0 | 0 | (15,015) | 0 | (15,015) | (7,752) | (22,767) |
Net income | 0 | 0 | 0 | 0 | 0 | 930,113 | 930,113 | 2,103,659 | 3,033,772 |
Balance at Dec. 31, 2020 | $ 294 | $ 10 | 8,190,449 | 9,463,903 | 3,889,429 | 9,097,408 | 30,641,493 | 24,595,741 | 55,237,234 |
Balance (in shares) at Dec. 31, 2020 | 29,421,736 | 1,000,000 | |||||||
Appropriation of reserves | $ 0 | $ 0 | 0 | 1,637,161 | 0 | (1,637,161) | 0 | 0 | 0 |
Foreign currency translation gain | 0 | 0 | 0 | 0 | 764,751 | 0 | 764,751 | 395,220 | 1,159,971 |
Other comprehensive gain (loss) | 0 | 0 | 0 | 0 | 10,668 | 0 | 10,668 | 5,507 | 16,175 |
Issuance of common stock | $ 9 | 0 | 1,106,504 | 0 | 0 | 0 | 1,106,513 | 0 | 1,106,513 |
Issuance of common stock (in shares) | 864,463 | ||||||||
Retirement of common stock (in shares) | 0 | ||||||||
Net income | $ 0 | 0 | 0 | 0 | 0 | 6,230,121 | 6,230,121 | 5,422,847 | 11,652,968 |
Balance at Dec. 31, 2021 | $ 303 | $ 10 | $ 9,296,953 | $ 11,101,064 | $ 4,664,848 | $ 13,690,368 | $ 38,753,546 | $ 30,419,315 | $ 69,172,861 |
Balance (in shares) at Dec. 31, 2021 | 30,286,199 | 1,000,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 11,652,968 | $ 3,033,772 |
Adjustment to reconcile net income to net cash provided by operating activities: | ||
Noncash stock-based compensation | 0 | 1,427,603 |
Loss from settlement of contingency | 1,106,513 | |
Depreciation and amortization | 1,170,743 | 987,689 |
Amortization of right-of-use assets | 3,966,854 | 3,009,101 |
Net periodic pension cost | 15,812 | 73,421 |
Amortization of bond premium | 58 | 274 |
Loss (Gain) on valuation of financial assets | 81,022 | (111,463) |
Gain on sales of financial assets | (75,947) | (50,251) |
(Gain)Loss on disposal of property and equipment | (1) | 8,967 |
Deferred income tax | 154,678 | (420,262) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,047,547) | (1,253,807) |
Other current assets | 254,167 | 563,666 |
Other assets | (653,321) | (1,322,920) |
Commissions payable to sales professionals | 1,727,790 | (1,234,427) |
Contract liabilities | (1,125,689) | (1,812,922) |
Income tax payable | 527,177 | 517,202 |
Other current liabilities | 453,525 | 3,441,350 |
Other liabilities | (173,155) | (253,218) |
Lease liabilities | (4,260,159) | (3,310,015) |
Net cash provided by operating activities | 13,775,488 | 3,293,760 |
Cash flows from investing activities: | ||
Cash received from issuance of preferred stock | 0 | 375 |
Purchases of time deposits | (79,319,618) | (70,684,051) |
Proceeds from maturities of time deposits | 69,194,779 | 59,244,053 |
Acquisition of equity investments under cost method using the measurement alternative | (46,512) | |
Purchases of trading securities | (1,727,668) | (961,416) |
Proceeds from sales of trading securities | 3,083,386 | 240,063 |
Proceeds from sales of long-term investment - REITs | 142,191 | |
Purchase of property and equipment | (674,948) | (1,611,668) |
Purchase of intangible assets | (116,539) | (94,214) |
Proceeds from disposal of equipment | 18,600 | 36,902 |
Net cash used in investing activities | (9,446,329) | (13,829,956) |
Cash flows from financing activities: | ||
Proceeds from short-term loans | 22,536,112 | 27,280,129 |
Repayment of short-term loans | (17,970,000) | (21,500,000) |
Repayment to related party borrowings | (49,334) | (381,327) |
Net cash provided by financing activities | 4,516,778 | 5,398,802 |
Foreign currency translation | 346,867 | 1,608,722 |
Net decrease in cash and cash equivalents | 9,192,804 | (3,528,672) |
Cash, cash equivalents and restricted cash, beginning balance | 9,129,828 | 12,658,500 |
Cash, cash equivalents and restricted cash, ending balance | 18,322,632 | 9,129,828 |
SUPPLEMENTARY DISCLOSURE OF CASH FLOW INFORMATION: | ||
Interest paid | 181,911 | 200,900 |
Income tax paid | 3,588,250 | 3,298,391 |
SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Lease liabilities arising from new right-of-use assets | $ 3,891,481 | $ 4,010,991 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations China United Insurance Service, Inc. (“China United” or “CUII”), its subsidiaries and variable-interest entity and its subsidiaries (collectively referred to herein as the “Company”) primarily engages in brokerage and insurance agency services. The Company markets and sells to customers two broad categories of insurance products: life insurance products and property and casualty insurance products, both focused on meeting the particular insurance needs of individuals. The insurance products are underwritten by some of the leading insurance companies in Taiwan and China. The Company manages its business through aggregating them into three geographic operating segments, Taiwan, the PRC, and Hong Kong. The Company’s common stock currently trades over the counter under the ticker symbol “CUII” on the OTCQB. There has continued to be widespread impact from the coronavirus disease (“COVID-19”) pandemic including potentially more contagious strains of COVID-19 such as the Delta and Omicron variants. It has created significant volatility and uncertainty and economic disruption. The extent to which the pandemic impacts the Company’s business and operations will depend on numerous evolving factors, many of which are not within our control and which we may not be able to accurately predict, including its duration and scope; the ultimate availability, administration and effectiveness of vaccines around the world; governmental actions that have been and continue to be taken in response to the pandemic, including vaccine coverage; the impact of the pandemic on economic activity and actions taken in response; the ability of the Company’s customers to pay their insurance premiums which could impact the Company’s commission and fee revenues for the services provided; and the long-term impact of employees working from home, including increased technology costs. Acquisitions in 2020 On May 27, 2020, the Company completed the acquisition of Rays Technology Corporation ("Rays") for its 90% equity interest. The consideration to acquire 27,000 shares of Ray was US$9,177 (NTD 270,000). The transaction is accounted for a business acquisition. However, the Company did not recognize any goodwill or gain on bargain purchase as a result of the net asset value acquired approximating to the consideration paid. In December 2020, the equity interest in Rays increased from 90% to 99% due to additional capital injections by the Company. The corporate structure as of December 31, 2021 is as follows: On January 31, 2022, Genius Investment Consultant Co., Ltd (“GIC”), a subsidiary entity of China United Insurance Service, Inc. entered into a stock transfer agreement with AIlife International Investment Co., Ltd. (“AIlife”), pursuant to which GIC shall sell and transfer 100% of its equity ownership in Joint Insurance Broker Co., Ltd., a wholly-owned subsidiary of GIC to AIlife. On February 25, 2022, Anhou, a contract controlled entity of China United Insurance Service, Inc. entered into a Share Purchase Agreement. For more information, please refer to Note 26 and Form 8-K Footnote of the Consolidated Financial Statements for the years ended December 31, 2021 and 2020 and current report on filed on March 3, 2022. Principles of Consolidation The accompanying consolidated financial statements include the accounts of China United, its subsidiaries and variable interest entities as shown in Note 1. All significant intercompany transactions and balances have been eliminated in the consolidation. The Company consolidates variable interest entities where it has been determined that the Company is the primary beneficiary of those entities’ operations. Certain reclassifications have been made to the consolidated financial statements for prior year to the current year’s presentation. Such reclassifications have no effect on net income as previously reported. Use of Estimates The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”). The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and footnotes thereto. Actual results may differ from those estimates and assumptions. Variable Interest Entities Due to the legal restrictions on foreign ownership and investment in insurance agency and brokerage businesses in China, especially those on qualifications as well as capital requirement of the investors, China United, through its subsidiary, Zhengzhou Zhonglian Hengfu Business Consulting Co., Limited (“WFOE”), entered into Exclusive Business Cooperation Agreement (the “EBCA”), Power of Attorney, Option Agreement, and Share Pledge Agreement (collectively, the First VIE Agreements) on January 17, 2011 with Anhou and Anhou original shareholders so as to operate and conduct the insurance agency and brokerage business in the PRC. Pursuant to the EBCA, (a) WFOE has the right to provide Anhou with complete technical support, business support and related consulting services during the term of the EBCA; (b) Anhou agrees to accept all the consultations and services provided by WFOE. Anhou further agrees that unless with WFOE’s prior written consent, during the term of the EBCA, Anhou shall not directly or indirectly accept the same or any similar consultations and/or services provided by any third party and shall not establish similar cooperation relationship with any third party regarding the matters contemplated by the EBCA; (c) within 90 days after the end of each fiscal year Anhou shall pay an amount to WFOE equal to the shortfall, if any, of the aggregate net income of Anhou for such fiscal; (d) WFOE retains all exclusive and proprietary rights and interests in all rights, ownership, interests and intellectual properties arising out of or created during the performance of the EBCA; and (e) the shareholders of Anhou have pledged all of their equity interests in Anhou to WFOE to guarantee Anhou’s performance of its obligations under the EBCA. The term of the EBCA is 10 years and may be extended and determined by WFOE prior to the expiration thereof, and Anhou shall accept such extended term unconditionally. On March 23, 2022, Anhou and WFOE entered into an amendment to the EBCA, pursuant to which the EBCA shall be automatic renewed for successive terms unless WFOE gives a 30-day notice to terminate such agreement, with each term being 10 years. To extend the business within the PRC, Anhou intended to increase its registered capital to RMB 50 million (approximately $8 million) to meet the requirement of the China Insurance Regulatory Commission (the “CIRC”) so that it can set up new branches in any province beyond its current operations in China. China United increased the investment in Anhou through various loan agreements with the shareholders of Anhou. The aggregate funding provided by WFOE was RMB 40 million. Due to the capital increase, a series of variable interest agreements (the “Second VIE Agreements”), which include Power of Attorneys, Exclusive Option Agreements, Share Pledge Agreements, were signed on October 24, 2013 and entered in the same form as the First VIE Agreements, other than the change of shareholder names and their respective shareholdings. The First VIE Agreements were terminated by and among WFOE, Anhou and Anhou original shareholders on the same date. The EBCA executed by and between WFOE and Anhou on January 17, 2011 remains in full effect. As a result of the Second VIE Agreements, WFOE is considered the primary beneficiary of Anhou and has effective control over Anhou. Accordingly, the results of operations, assets and liabilities of Anhou and its subsidiaries (collectively, the “Consolidated Affiliated Entities” or the “CAE”) are consolidated from the earliest period presented. The Company reviews the VIE’s status on an annual basis and determine if any events have occurred that could cause its primary beneficiary status to change, which include (a) the legal entity’s governing documents or contractual arrangements are changed in a manner that changes the characteristics or adequacy of the legal entity’s equity investment at risk; (b) the equity investment or some part thereof is returned to the equity investors, and other interests become exposed to expected losses of the legal entity; (c) the legal entity undertakes additional activities or acquires additional assets, beyond those anticipated at the later of the inception of the entity or the latest reconsideration event, that increase the entity’s expected losses; and (d) the legal entity receives an additional equity investment that is at risk, or the legal entity curtails or modifies its activities in a way that decreases its expected losses. For the years ended December 31, 2021 and 2020, no event taken place that would change the Company’s primary beneficiary status. Noncontrolling Interests Noncontrolling interests represent amounts related to majority-owned subsidiaries in which the Company has a controlling financial interest. The amount of noncontrolling interest is consisted of the amount of such interests at the date of the Company's original acquisition of an equity interest and the noncontrolling holders' percentage share of income or losses from the subsidiaries. Foreign Currency China United’s financial statements are presented in U.S. dollars ($), which is the China United’s reporting and functional currency. The functional currencies of the China United’s subsidiaries are New Taiwan dollar (“NTD”), China yuan (“RMB”) and Hong Kong dollar (“HKD”). Each subsidiary maintains its financial records in its own functional currency. Transactions denominated in foreign currencies are measured at the exchange rates prevailing on the transaction dates. Monetary assets and liabilities denominated in foreign currencies are remeasured at the exchange rates prevailing at the balance sheet date. Non-monetary items that are measured in terms of historical cost in foreign currency are remeasured using the exchange rates at the dates of the initial transactions. Exchange gains and losses are included in the consolidated statements of operations and other comprehensive income (loss). The Company translates the assets and liabilities into U.S. dollars using the rate of exchange prevailing at the balance sheet date and the statements of operations and cash flows are translated at an average rate during the reporting period. Adjustments resulting from the translation from NTD, RMB and HKD into U.S. dollars are recorded in stockholders’ equity as part of accumulated other comprehensive income. The exchange rates used for financial statements are as follows: Years Ended December 31, 2021 2020 Average rate: Taiwan dollar (NTD) NTD 27.91940 NTD 29.44185 China yuan (RMB) RMB 6.44995 RMB 6.90013 Hong Kong dollar (HKD) HKD 7.77225 HKD 7.75576 United States dollar ($) $ 1.00000 $ 1.00000 December 31, 2021 2020 Exchange rate: Taiwan dollar (NTD) NTD 27.68785 NTD 28.07725 China yuan (RMB) RMB 6.35877 RMB 6.52765 Hong Kong dollar (HKD) HKD 7.79713 HKD 7.75249 United States dollar ($) $ 1.00000 $ 1.00000 Cash and Cash Equivalents Cash and cash equivalents include cash in banks, bank deposits, and highly liquid investments with maturities of three months or less at the date of origination. Restricted Cash Restricted cash represent amounts held in banks by the Company in conformity with Provisions of the Supervision and Administration of Specialized Insurance Agencies by the CIRC and a trust account held for bonus accrued for officers. Time Deposits Time deposits are short-term bank deposits with maturities of more than three months but less than one year at the date of origination. Marketable Securities The Company invests part of its excessive cash in equity securities and money market funds. Marketable securities represent trading securities bought and held primarily for sale in the near-term to generate income on short-term price differences and are stated at fair value. Realized and unrealized gains and losses are recorded in other income (expense). Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable include commission receivables stated at net realizable values. The Company reviews its accounts receivable regularly to determine if a bad debt allowance is necessary at each quarter-end. Management reviews the composition of accounts receivable and analyzes the age of receivables outstanding, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the necessity of making such allowance. No allowance was deemed necessary as of December 31, 2021 and 2020. Property and Equipment Property and equipment are stated at cost, less accumulated depreciation. Expenditures for improvements are capitalized; repairs and maintenance are charged to expense as incurred. Upon sale of retirement, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is recorded in other income (expense). Depreciation of office equipment, office furniture, transportation equipment and other equipment is computed using straight-line method based on estimated useful lives ranging from one Goodwill and Intangible Assets Goodwill represents the excess of acquisition cost over the fair value of the net assets in the acquisition of a business. Goodwill is not amortized but instead is evaluated for impairment annually or more frequently if events or changes in circumstances indicate it might be impaired, using two-step goodwill impairment test. The first step screens for potential impairment of goodwill to determine if the fair value of the reporting unit is less than its carrying value, while the second step measures the amount of goodwill impairment, if any, by comparing the implied fair value of goodwill to its carrying value. Intangible assets, which primarily consist of software, are stated at cost, less accumulated amortization, and amortized over estimated useful lives ranging from 3 to 5 years. The intangible assets recorded in the Company’s financial statement were acquired externally. For internally developed software, costs incurred in the development phase are capitalized and amortized over the product’s estimated useful life. All costs incurred that relate to planning and post implementation phases of development are expensed. Development phase costs generally include salaries and personnel costs and third-party contractor expenses associated with software development, configuration and coding. Capitalized costs related to internally developed software under development are treated as construction in progress until the program, feature or functionality is ready for its intended use, at which time amortization commences. The Company did not capitalize any expenditure related to internally developed software for the period 2021 and 2020 Impairment of Long-Lived Assets The Company reviews the carrying values of the long-lived assets when circumstances warrant as to whether the carrying value has become impaired. The Company considers assets to be impaired if the carrying value of an asset exceeds the present value of future net undiscounted cash flows from its related operations. There was no impairment recognized for the years ended December 31, 2021 and 2020. Long-Term Investments Long-term investments include government bonds held as available-for-sale, investment in real estate investment trusts (“REITs”) measured at fair value through net income, and equity investments using cost method under the measurement alternative. Available-for-sale investments are carried at fair value and unrealized gains and losses as a result of changes in the fair value are recorded as a separate component within accumulated other comprehensive income (loss) in the accompanying consolidated balance sheets. The Company evaluates its available-for-sale debt securities to assess whether those with unrealized loss positions are other-than-temporarily impaired. Impairments are considered to be other-than-temporary if they are related to deterioration in credit risk or if it is likely that the Company will sell the securities before the recovery of its cost basis. Realized gains and losses and declines in value judged to be other-than-temporary are determined based on the specific identification method and are reported in other income (expense) in the consolidated statements of comprehensive loss. The Company measures equity investments in companies that do not have a readily determinable fair value in which it holds an interest of less than 20% using cost method under the measurement alternative, which is defined as cost, less any impairments, a plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. Significant judgments are required to determine (i) whether observable price changes are orderly transactions and identical or similar to an investment held by the Company; and (ii) the selection of appropriate valuation methodologies and underlying assumptions, including expected volatility and the probability of exit events as it relates to liquidation and redemption features used to measure the price adjustments for the difference in rights and obligations between instruments. For equity investments measured at fair value with changes in fair value recorded in earnings, the Company does not assess whether those securities are impaired. For equity investments that the Company elects to use the measurement alternative, the Company makes a qualitative assessment considering impairment indicators to evaluate whether investments are impaired at each reporting date. Impairment indicators considered include, but are not limited to, a significant deterioration in the earnings performance or business prospects of the investee, including factors that raise significant concerns about the investee’s ability to continue as a going concern, a significant adverse change in the regulatory, economic, or technologic environment of the investee and a significant adverse change in the general market condition of either the geographical area or the industry in which the investee operates. If a qualitative assessment indicates that the investment is impaired, the Company has to estimate the investment’s fair value in accordance with the principles of ASC 820, Fair Value Measurement. If the fair value is less than the investment’s carrying value, the Company recognizes an impairment loss in earnings equal to the difference between the carrying value and fair value. Advertising Costs The Company expenses all advertising costs, which include promotions and branding, as incurred. The Company incurred $203,754 and $237,418 in advertising and marketing costs under selling expenses during the years ended December 31, 2021 and 2020, respectively. Revenue Recognition The Company’s revenue is derived from insurance agency and brokerage services with respect to life insurance and property and casualty insurance products. The Company, through its subsidiaries and variable interest entities, sells insurance products provided by insurance companies to individuals, and is compensated in the form of commissions from the respective insurance companies, according to the terms of each service agreement made by and between the Company and the insurance companies. The core revenue recognition principle under ASC 606, the Company considers the contracts with insurance companies contain one performance obligation and consideration should be recorded when performance obligation is satisfied at point in time. For life insurance products, the amount of revenue recognition includes (i) the first year commission (“FYC”); (ii) contingent commissions for subsequent years; (iii) annual performance and operation bonus; (iv) bonus based on persistency ratio bonus; (v) service allowances. The sale of an insurance product by the Company is considered complete when initial insurance premium is paid by an individual and the insurance policy is approved by the respective insurance company. When a policy is effective, the insurance company is obligated to pay the agreed-upon commission to the Company under the terms of its service agreement with the Company and such commission is recognized as revenue. For the FYC, the Company recognizes the revenue when the individuals’ policies are effective. The Company makes the estimation amount to be entitled for annual performance and operating bonus which is based on the FYC. From the experiences and information received from the insurance company, the accumulated recognized revenue amount will not be significantly reversed as the historical policy cancellations are immaterial. Therefore, the Company makes an estimation on performance and operation bonus which are based on the accumulated FYC on quarterly basis, and make reconciliation between actual and estimation amount on annual basis. The estimated revenue in the fiscal year of 2021 and 2020 was approximately $7.4 million and $7.3 million, respectively. Others includes the contingent commissions for subsequent years, the bonus based on persistency ratio bonus, and service allowances, are considered highly susceptible to factors outside the company's influence and depend on the actions of third parties (i.e., the subsequent premiums paid by individual policyholders), and the uncertainty can be extended for many years. Therefore, the Company does not have high confidence to estimate the amount of such variables considerations that will not be reversed in subsequent reporting periods. Considering the effect of uncertainties, the contingent commissions for subsequent years, the bonus based on persistency ratio, and service allowances will be recognized as revenue based on the actual amount received from the insurance companies after the uncertain event is resolved. For property and casualty insurance products, the Company recognizes the revenue when the individuals’ policies are effective. The revenue from property and casualty insurance products were 7.2% and 5.4% of total revenue for the years ended December 31, 2021 and 2020, respectively. The Company is obligated to pay commissions to its sales professionals when an insurance policy becomes effective. The Company recognizes commission revenue granted from insurance companies on a gross basis, and the commissions paid to its sales professionals are recognized as cost of revenue. The Company enters into service agreements with insurance companies, which may give rise to contract assets and contract liabilities. When the timing of revenue recognition differs from the timing of payments made by insurance companies, the Company recognizes either contract assets (its performance precedes the billing date) or contract liabilities (customer payment is received in advance of performance). Contract assets represent unbilled amounts resulting from the insurance agency and brokerage services provided by the Company to the insurance companies when the Company has an unconditional right to payment once the individuals’ insurance policies are effective. Contract assets are classified as current and the full balance is reclassified to accounts receivables when the right to payment becomes unconditional. The balance of contract assets was insignificant as of January 1, 2021 and December 31, 2021. Contract liabilities represents the commissions received upfront from the insurance companies related to services that has not yet been recognized as revenue. The Company classifies contract liabilities as current based on the timing of when the Company expects to recognize revenue, which typically occurs within one year. Please refer to Note 18 for contract liabilities in AIATW. The Company generally expenses sales commissions to its sales professionals when incurred because such expenses would be settled within one year or less. These costs are recorded within sales expenses in the consolidated statements of operations and other comprehensive income, as the expenses are settled less than one year and the Company has elected the practical expedient included in ASC 606. For the years ended December 31, 2021 and 2020, the Company recorded revenue of $131,363,175 and $124,267,072, respectively. Disaggregation information of revenue is disclosed in Note 24. Stock-Based Compensation The Company have preferred stock-based compensation issued to non-related entities for Uniwill. The Company accounts for equity-based compensation cost in accordance with ASC 718, Compensation-Stock Compensation after adoption of ASC 2018-07, which requires the measurement and recognition of compensation expense related to the fair value of equity-based compensation awards that are ultimately expected to vest. Stock-based compensation expense recognized includes the compensation cost for all share-based compensation payments granted to employees and nonemployees, net of estimated forfeitures, over the employees’ requisite service period or the non-employee performance period based on the grant date fair value estimated in accordance with the provisions of ASC 718. ASC 718 is also applied to awards modified, repurchased, or cancelled during the periods reported. Please see Note 14 for additional information. Retirement Plan and Net Periodic Pension Cost Under the Company defined benefit pension plan, net periodic pension cost, which includes service cost, interest cost, expected return on plan assets, amortization of unrecognized net transition obligation and gains or losses on plan assets, is recognized based on an actuarial valuation report. The Company recognizes the funded status of pension plan as an asset or a liability in the consolidated balance sheets. Each overfunded plan is recognized as an asset and each underfunded plan is recognized as a liability. The recognition of prior service costs or credits and net actuarial gains or losses, as well as subsequent changes in the funded status, are recognized as components of accumulated other comprehensive income or loss, net of tax, in shareholders’ equity, until they are amortized as a component of net periodic benefit cost. Income Taxes The Company records income tax expense using the asset-and-liability method of accounting for deferred income taxes. Under this method, deferred taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each year-end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Deferred tax assets are reduced by a valuation allowance if, based on available evidence, it is more likely than not that the deferred tax assets will not be realized. The Company has elected to recognize a tax on global intangible low-taxed income ("GILTI"), which was imposed by the 2017 Tax Cuts and Jobs Act (the "2017 Tax Act"), as tax expense in the period the tax is incurred. When tax returns are filed, it is likely some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more-likely-than-not the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits is classified as interest expense and penalties are classified in general and administrative expenses in the consolidated statements of operations and other comprehensive income (loss). Earnings Per Share Basic earnings per common share (“EPS”) is computed by dividing net income attributable to the common shareholders of the Company by the weighted-average number of common shares outstanding. Diluted EPS is computed in the same manner as basic EPS, except the number of shares includes additional common shares that would have been outstanding if potential common shares with a dilutive effect had been issued. As the holders of preferred stock of the Company are entitled to share equally with the holders of common stock, on a per share basis, in such dividends and other distributions of cash, property or shares of stock of the Company as may be declared by the board of directors, the preferred stock is treated as a participating security. When calculating the basic earnings per common share, the two-class method is used to allocate earnings to common stock and participating security as required by FASB ASC Topic 260, “Earnings Per Share.” As of December 31, 2021 and 2020, the Company does not have any potentially dilutive instrument. The following is a reconciliation of the income and share data used in the basic and diluted EPS computations for the years ended December 31, 2021 and 2020 under the two-class method. December 31, 2021 2020 Numerator: Common stock Preferred stock Common stock Preferred stock Allocation of net income attributable to the Company. $ 6,026,550 $ 203,571 $ 899,539 $ 30,574 Denominator: Weighted average shares of the Company’s common/preferred stock outstanding - basic 29,604,102 1,000,000 29,421,736 1,000,000 Basic and diluted earnings per share $ 0.204 $ 0.204 $ 0.031 $ 0.031 The participating rights (liquidation and dividend rights) of the holders of the Company’s common stock and preferred stock are identical, except with respect to voting right (Note 15). As a result, and in accordance with ASC 260, the undistributed earnings for each year are allocated based on the contractual participation rights of the common stock and preferred stock as if the earnings for the year had been distributed. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. Concentration of Credit Risk The Company maintains cash and cash equivalents with banks or high credit, quality financial institutions in the USA, PRC, Hong Kong, and Taiwan with balances in excess of the limits insured by various governments. In Taiwan, a depositor has up to NTD3,000,000 insured by Central Deposit Insurance Corporation (“CDIC”). In China, a depositor has up to RMB500,000 insured by the People’s Bank of China Financial Stability Bureau (“FSD”). In Hong Kong, a depositor has up to HKD500,000 insured by Hong Kong Deposit Protection Board (“DPB”). In the United States, the standard insurance amount is $250,000 per depositor in a bank insured by the Federal Deposit Insurance Corporation (“FDIC”). Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents, time deposits, restricted cash, register capital deposits included under other non-current assets and accounts receivable. As of December 31, 2021, and 2020, approximately $2,712,000 and $2,229,000 of the Company’s cash and cash equivalents, time deposits, restricted cash, and register capital deposits held by financial institutions, was insured, and the remaining balance of approximately $83,446,000 and $63,222,000, was not insured. With respect to accounts receivable, the Company generally does not require collateral and does not have collectability concern. For the year |
CASH, CASH EQUIVALENTS AND REST
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2021 | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | NOTE 2 – CASH, CASH EQUIVALENTS AND RESTRICTED CASH Cash, cash equivalents and restricted cash consisted of the following as of December 31, 2021 and 2020: December 31, 2021 2020 Cash and cash equivalents: Cash on hand and in banks $ 18,234,350 $ 9,063,338 Restricted cash – noncurrent 88,282 66,490 Total cash, cash equivalents and restricted cash shown in the statements of cash flows $ 18,322,632 $ 9,129,828 Noncurrent restricted cash includes a mandatory deposit in the bank in conformity with Provisions of the Supervision and Administration of Specialized Insurance Agencies in PRC, which is not allowed to be withdrawn without the permission of the regulatory commission. |
TIME DEPOSITS
TIME DEPOSITS | 12 Months Ended |
Dec. 31, 2021 | |
TIME DEPOSITS | |
TIME DEPOSITS | NOTE 3 – TIME DEPOSITS Time deposits are short-term bank deposits with maturities of more than three months but less than one year at the date of origination and consisted of the following: December 31, 2021 2020 Total time deposits $ 71,161,391 $ 53,339,508 Less: time deposits – original maturities less than three months under cash and cash equivalents (6,862,215) — Time deposits – original maturities over three months but less than one year $ 64,299,176 $ 53,339,508 The deposits are presented at their cost, including accrued interest. The deposits bear annual interest rates ranging from 0.05% to 2.79% and from 0.05% to 2.60% during 2021 and 2020, respectively. The Company had a total of $23,811,616 (NTD 659.3 million) and $15,930,161 (NTD 447.3 million) restricted time deposits, respectively, as of December 31, 2021 and 2020. Time deposits of $36,117 (NTD 1 million) and $35,616 (NTD 1 million) were pledged as collateral for the Company’s credit card as of December 31, 2021 and 2020, respectively. In addition, the Company had time deposits of $23,775,499 and $15,894,545 pledged as collateral for short-term loans, respectively, as of December 31, 2021 and 2020. See Note 10. |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 12 Months Ended |
Dec. 31, 2021 | |
MARKETABLE SECURITIES. | |
MARKETABLE SECURITIES | NOTE 4 – MARKETABLE SECURITIES Marketable securities, consisted of stock mutual funds, were nil and $1,272,573 as of December 31, 2021 and 2020, respectively. Realized and unrealized gains (losses) for the years ended December 31, 2021 and 2020 are summarized below: Years Ended December 31, 2021 2020 Net unrealized gains on marketable securities held $ — $ 124,825 Net realized gains for marketable securities sold 75,950 50,401 Total net gains recognized in other income $ 75,950 $ 175,226 For the years ended December 31, 2021 and 2020, the Company purchased marketable securities of $1,727,668 and $961,416, respectively. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2021 | |
PROPERTY AND EQUIPMENT, NET | |
PROPERTY AND EQUIPMENT, NET | NOTE 5 – PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following, as of December 31, 2021 and 2020: December 31, 2021 2020 Office equipment $ 2,152,239 $ 2,002,634 Office furniture 97,917 102,557 Leasehold improvements 2,415,907 2,194,531 Transportation equipment 238,202 233,731 Other equipment 1,047,134 800,246 Total 5,951,399 5,333,699 Less: accumulated depreciation (3,889,644) (2,960,454) Total property and equipment, net $ 2,061,755 $ 2,373,245 Depreciation expense under general and administrative expenses was $1,000,655 and $730,263 for the years ended December 31, 2021 and 2020, respectively. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2021 | |
INTANGIBLE ASSETS, NET | |
INTANGIBLE ASSETS, NET | NOTE 6 – INTANGIBLE ASSETS, NET As of December 31, 2021 and 2020, the Company’s intangible assets consisted of the following: December 31, 2021 2020 Software $ 2,413,843 $ 2,264,482 Less: accumulated amortization (2,080,725) (1,882,735) Total intangible assets, net $ 333,118 $ 381,747 Estimated future assets amortization as of December 31, 2021 is as follows: Years ending December 31, Amount 2022 $ 136,684 2023 98,177 2024 57,017 2025 34,083 2026 7,157 Thereafter — Total $ 333,118 Amortization expense was $170,088 and $257,426 for the years ended December 31, 2021 and 2020, respectively. |
LONG-TERM INVESTMENTS
LONG-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2021 | |
LONG-TERM INVESTMENTS. | |
LONG-TERM INVESTMENTS | NOTE 7 – LONG-TERM INVESTMENTS As of December 31, 2021 and 2020, the Company’s long-term investments consisted of the following: December 31, 2021 2020 Equity investments under cost method $ 1,435,330 $ 1,368,899 Government bonds held for available-for-sale — 107,096 REITs 1,261,482 1,359,100 Total long-term investments $ 2,696,812 $ 2,835,095 Equity Investments under Cost Method using the measurement alternative December 31, 2021 December 31, 2020 Investment Investment Investee Ownership Amount Ownership Amount Genius Insurance Broker Co., Ltd (“GIB”) 11.73 % $ 1,388,151 11.73 % $ 1,368,899 Hainan Haoguan Yucheng Technology Service LLP (“HAINAN”) 9.99 % 47,179 — % — On February 13, 2015, the Company and AHFL, a wholly owned subsidiary of the Company, entered into an acquisition agreement with Mr. Chwan Hau Li, the selling shareholder of GHFL. Subsequent to the acquisition, GHFL became a wholly-owned subsidiary of the Company which in turn holds approximately 15.64% issued and outstanding shares of Genius Insurance Broker Co., Ltd. (“Genius Broker”). Accordingly, the acquisition was accounted for as an asset acquisition of Genius Broker, which is an equity investment under cost method using the measurement alternative acquired by the Company. The total paid-in capital with GIB changed from NTD45 million to NTD60 million due to capital increase taken place on August 14, 2020. GIC didn’t subscribe the new shares during the capital increase. As a result the equity interest of GIB owned by GIC reduced from 15.64% to 11.73%. A new investee in the investment ownership was due to the Company’s investment in HAINAN in 2021. HAINAN operates projects for insurance platforms, which contain insurance product centralized procurement, share service platform of sub-hierarchy distribution channel, and IoT business requirement. The Company invested HAINAN for RMB 300,000, or 9.99%, to engage in the qualification of supplier membership and distributor membership. The change in carrying value of equity investment between the two years resulted from the fluctuation of exchange rates. The Company received $252,154 and $325,197 dividend income distributed from the investee for the years ended December 31, 2021 and 2020, respectively. Government Bonds Held for Available-for-Sale According to Taiwan Regulations Governing Deposit of Bond and Acquirement of Insurance by Insurance Agents, Insurance Brokers and Insurance Surveyors (“RGDBAI”) Article 3 and 4, Law Broker is required to maintain a minimum of NTD 3,000,000 ($108,351 and $106,848 as of December 31, 2021 and 2020, respectively) restricted balance in a separate account or government bonds issued by the central government in order to maintain its insurance license. As of December 31, 2021 2020 Gross Gross Amortized unrealized unrealized Fair cost gains losses value December 31, 2020: Government bonds $ 106,906 $ 190 $ — $ 107,096 Total $ 106,906 $ 190 $ — $ 107,096 REITs REITs are valued based on quoted market prices in the active market of Taiwan. The fair value of REITs as of December 31, 2021 and 2020 were $1,261,482 and $1,359,100 , respectively. Unrealized losses included in earnings for assets held at the end of the reporting periods were $81,022 and $50,389 for the years ended December 31, 2021 and 2020, respectively. During the years ended December 31, 2021 and 2020, no other-than temporary impairment were recorded related to the long-term investments. |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
OTHER ASSETS | |
OTHER ASSETS | NOTE 8 – OTHER ASSETS December 31, 2021 2020 Trust account $ 2,477,621 $ 1,962,443 Security deposits/Rent deposit 1,095,665 806,606 Registered Capital deposit 1,100,842 1,072,361 Other 66,512 170,960 Total $ 4,740,640 $ 4,012,370 The trust account is lodged with the Company in accordance with the engagement agreement signed with Hui-Hsien Chao (“Ms. Chao”), which represented the performance bonus paid by the Company to Ms. Chao as her service provided as the general manager of Law Broker. The company reserves cash in a trust account held by a financial institution in a form of time deposits. Please refer to Note 22. According to Provisions on the Regulation of Insurance Brokers issued by the China Insurance Regulatory Commission (“CIRC”), the Company should set aside a registered capital deposit which is no less than 5% of its capital. Also, CIRC issued an executive order No.82 in 2016 which indicates the registered capital deposit should be no less than 10% of its capital. Total registered capital deposit lodged in compliance with CIRC’s regulation were RMB 7,000,000 ($1,100,842 and $1,072,361) as of December 31, 2021 and 2020, respectively. |
COMMISSIONS PAYABLE TO SALES PR
COMMISSIONS PAYABLE TO SALES PROFESSIONALS | 12 Months Ended |
Dec. 31, 2021 | |
COMMISSIONS PAYABLE TO SALES PROFESSIONALS | |
COMMISSIONS PAYABLE TO SALES PROFESSIONALS | NOTE 9 – COMMISSIONS PAYABLE TO SALES PROFESSIONALS Commissions payable to professionals consisted of the following as of December 31, 2021 and 2020: December 31, 2021 2020 Taiwan $ 13,793,343 $ 11,814,222 PRC 210,198 274,069 Total commissions payable to sales professionals $ 14,003,541 $ 12,088,291 Commissions payable to sales professionals are usually settled within twelve months. |
SHORT-TERM LOANS
SHORT-TERM LOANS | 12 Months Ended |
Dec. 31, 2021 | |
SHORT-TERM LOANS | |
SHORT-TERM LOANS | NOTE 10 – SHORT-TERM LOANS The Company’s short-term loans consisted of the following as of December 31, 2021 and 2020: December 31, 2021 December 31, 2020 Debt Collateral Debt Collateral Line of Credit Collateral balance value balance value $9.0 million (NTD 250 million) revolving line of credit with Cathay United Bank Company Limited (“CUB”); the loan bears interest at the higher of CUB's adjustable rates for loans plus a margin of 0.41% or the 1-month TAIBOR rate plus a margin of 0.8% and matures on May 4, 2022. Time deposits $ 9,011,172 $ 9,047,289 $ 6,019,108 $ 6,019,108 $4.0 million revolving line of credit with O-Bank; the loan bears interest at the TAIFX3 rate plus a margin of 0.5% and matures on December 2, 2022. Time deposits 4,000,000 4,984,135 4,000,000 4,915,011 $6.0 million revolving line of credit with Taishin International Bank (“TSIB”); the loan bears interest at the TSIB’s cost of funds plus a margin of 0.7% and matures on May 31, 2022. Time deposits 2,200,000 3,065,801 — — $2.5 million revolving line of credit with Far Eastern International Bank (“FEIB”); the loan bears interest at the higher of TAIFX3 rate plus a margin of 0.5% and matures on March 15, 2022. Time deposits 1,850,000 2,961,588 840,000 1,132,590 $3.1 million revolving line of credit with KGI; the loan bears interest at the TAIFX Fixing rate plus a margin of 0.9% and matures on May 18, 2022. Time deposits 1,540,000 2,481,926 2,100,000 2,443,003 $7.2 million (NTD 200 million) revolving line of credit with Taishin International Bank (“TSIB”); the loan bears interest at the TSIB’s cost of funds plus a margin of 0.625% and matures on May 31, 2022. Time deposits 234,760 234,760 — — $1.5 million revolving line of credit with CTBC Bank Co., Ltd. (“CTBC”); the loan bears interest at the CTBC’s cost of funds plus a negotiated margin on individual case basis and matures on August 31, 2022. Time deposits — — 1,200,000 1,384,833 $3.0 million revolving line of credit with E. Sun Bank (“E. Sun”); the loan bears interest at the higher of TAIFX3 rate plus a margin of 0.4% and matures on November 30, 2022. Time deposits — 1,000,000 — — $ 18,835,932 $ 23,775,499 $ 14,159,108 $ 15,894,545 Borrowings under the revolving credit agreements are generally due 90 days or less. Total interest expenses incurred from the credit facilities were $181,911 and $200,900 for the years ended December 31, 2021 and 2020, respectively. |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
OTHER CURRENT LIABILITIES | |
OTHER CURRENT LIABILITIES | NOTE 11 – OTHER CURRENT LIABILITIES Other current liabilities consisted of the following as of December 31, 2021 and 2020: December 31, 2021 2020 Accrued bonus $ 6,645,496 $ 7,854,488 Payroll payable and other benefits 2,188,074 1,767,417 Accrued business tax and tax withholdings 1,903,039 1,643,082 Accrued tax penalties — 170,016 Other accrued expenses 3,260,994 2,156,031 Total other current liabilities $ 13,997,603 $ 13,591,034 Accrued Bonus The Company’s foreign subsidiaries have various bonus plans, which provide cash awards to employees based upon their performance, and had accrued bonus of $4,059,901 and $5,948,157, respectively, related to cash awards to employees as of December 31, 2021 and 2020. The Company has other compensation plans solely provided by Law Broker to its officers. The compensation plans eligible to Law Broker’s officers include a surplus bonus based on a percentage of income after tax and other performance bonuses such as retention and non-competition. For the years ended December 31, 2021 and 2020, the bonus expenses to Law Broker’s officers under the compensation plans were $752,413 and $919,053, respectively. As of December 31, 2021 and 2020, the Company had accrued bonus of $2,585,595 and $1,906,331 payable within next 12 months, and the total noncurrent accrued bonus unpaid was nil and $237,440, respectively, related to the compensation plans for Law Broker’s officers. See Note 22 for additional information of agreements with Law Broker’s officers. |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
OTHER LIABILITIES | |
OTHER LIABILITIES | NOTE 12 – OTHER LIABILITIES The Company’s other liabilities consisted of the following as of December 31, 2021 and 2020: December 31, 2021 2020 Due to previous shareholders of AHFL $ 541,754 $ 534,240 Accrued bonus - noncurrent (Note 11) — 237,440 Total other liabilities $ 541,754 $ 771,680 Due to Previous Shareholders of AHFL Due to previous shareholders of AHFL is the entire remaining balance payable of the acquisition cost. On March 27, 2019, the Company and the selling shareholders of AHFL entered into a sixth amendment to the acquisition agreement, pursuant to which, the Company will make the cash payment in the amount of NTD15 million on or prior to March 31, 2021. In March 2021, the Company entered a seventh amendment with the selling shareholders in negotiation with the previous shareholders of AHFL to extend the repayment date to March 31, 2024. As of December 31, 2021 and 2020, the amount due to previous shareholders of AHFL were $541,754 and $534,240, respectively. |
POST-EMPLOYMENT BENEFITS
POST-EMPLOYMENT BENEFITS | 12 Months Ended |
Dec. 31, 2021 | |
POST-EMPLOYMENT BENEFITS | |
POST-EMPLOYMENT BENEFITS | NOTE 13 – POST-EMPLOYMENT BENEFITS Defined benefit plan The employee pension plan mandated by the Labor Standards Act of the R.O.C. is a defined benefit plan. The pension benefits are disbursed based on the units of service years and average monthly salary prior to retirement according to the Labor Standards Act. Two units per year are awarded for the first 15 years of services while one unit per year is awarded after the completion of the 15th year, the total units will not exceed 45 units. The Company contributes an amount equivalent to 2% of the employees’ total salaries and wages on a monthly basis to the pension fund deposited with the Bank of Taiwan under the name of a pension fund supervisory committee. The pension fund is managed by the government’s designated authorities and therefore is not included in the Company’s consolidated financial statements. For the years ended December 31, 2021 and 2020, total pension expenses of $81,440 and $73,421, respectively, were recognized by the Company. Movements in present value of defined benefit obligation during the year: Years ended December 31, 2021 2020 Defined benefit obligation at beginning of year $ (487,020) $ (360,026) Items recognized as profit or loss: Service cost (82,452) (75,080) Interest cost (1,932) (2,708) Subtotal (84,384) (77,788) Remeasurements recognized in other comprehensive income (loss): Experience adjustments 15,740 (20,381) Subtotal 15,740 (20,381) Benefits paid — — Exchange effect (7,423) (28,825) Defined benefit obligation at end of year $ (563,087) (487,020) Movements in fair value of plan assets during the year: Years ended December 31, 2021 2020 Beginning balance of fair value of plan assets $ 168,478 $ 151,796 Items recognized as profit or loss: Interest income on plan assets 2,845 2,612 Remeasurements recognized in other comprehensive income: Return on plan assets excluding amounts recognized as interest result 171 3,626 Exchange effect 2,395 10,444 Fair value of plan assets at end of year $ 173,889 $ 168,478 The actual returns on plan assets of the Company for the years ended December 31, 2021 and 2020 were $3,016 and $6,238, respectively. The defined benefit plan recognized on the consolidated balance sheets is as follows: December 31, 2021 2020 Present value of the defined benefit obligation $ (563,087) $ (487,020) Fair value of plan assets 173,889 168,478 Funded status (389,198) (318,542) Net defined benefit liabilities, noncurrent recognized on the consolidated balance sheets $ (389,198) $ (318,542) Employee pension fund is deposited under a trust administered by the Bank of Taiwan. The expected rate of return on assets is determined based on historical trend and actuaries’ expectations on the assets’ returns in the market over the obligation period. Furthermore, the utilization of the fund is determined by the labor pension fund supervisory committee, which also guarantees the minimum earnings to be no less than the earnings attainable from interest rates offered by local banks for two-year time deposits. The principal underlying actuarial assumptions are as follows: December 31, 2021 2020 Discount rates 0.70 % 0.40 % Rates of future salary increase 2.00 % 2.00 % Expected long-term rates of return on plan assets 2.00 % 1.75 % Expected future benefit payments is as follows: Amount 2022 $ 16,397 2023 19,127 2024 16,056 2025 18,439 2026 17,292 Thereafter 79,836 Present value of future minimum benefit payments $ 167,147 The Company expects to make pension fund contribution of $80,783 in 2022. The weighted-average durations of the defined benefit obligation are both 15 years as of December 31, 2021 and 2020. |
STOCK-BASED COMPENSATION TO NON
STOCK-BASED COMPENSATION TO NONEMPLOYEES | 12 Months Ended |
Dec. 31, 2021 | |
STOCK-BASED COMPENSATION TO NONEMPLOYEES | |
STOCK-BASED COMPENSATION TO NONEMPLOYEES | NOTE 14 – STOCK-BASED COMPENSATION TO NONEMPLOYEES On November 15, 2019, AIlife entered into a Joint Venture Agreement (the “JV Agreement”) with two non-related entities (collectively, the “Labor Parties”) and agreed to invest funds, labor, and technology into Uniwill. Pursuant to the JV Agreement, the paid-in capital of Uniwill should increase to an aggregate amount of $13.3 million (NTD 400 million) by AIlife, provided that the Labor Parties fulfill their commitments no later than December 31, 2021. During the year of 2019, AIlife increased and completed the capital injection in Uniwill to the amount of $3.3 million (NTD 100 million). During the year 2020, the capital injection completed by AIlife were $0.5 million (NTD 15 million). As of December 31, 2021, the capital injections completed by AIlife were $3.8 million (NTD 115 million). According to the term of the JV Agreement, the Labor Parties shall be entitled of 9,608 preferred stock if the following milestones are met: (a) the registered number of insurance business professional sales of Uniwill is more than 200, (b) the business performance shall reach FYB (first year commission is earned from the insurance company) NTD 5 million or more, and (c) one of two employees of the Labor Parties designated by AIlife shall join Uniwill within 6 months after the paid-in capital of Uniwill increased to NTD100 million (hereinafter refer to the “performance target”). The preferred stock shall provide for (a) the right to receive a distribution of 50% of the net-income of Uniwill, (b) the right to convert such preferred stock into common stock at 1 to 1000 after the date when the registered number of sales reaches 1,000 and FYC reaches NT$250 million, (c) the right to elect directors, (d) the voting rights owned by the Company and the Labor Parties should be 51:49 due to 1,000 voting right per preferred stock, and (e) the number of the preferred stock to the Labor Parties shall be issued along with the proportion when the paid-in capital of Uniwill increases to NTD 400 million once the registered number of sales reaches 1,000. On March 3, 2021, the Labor Parties and AIlife entered into an amendment to the JV agreement (the “Amendment”) and agreed that the final paid-up capital of Uniwill will be NTD 400 million and the paid-up capital of initial stage is NTD100 million. AIlife is obligated to fulfill its NTD 400 million paid-in capital within eight years after the registered number of sales exceeds 1,000 and the cumulative revenue of Uniwill reaches NTD 8.7 billion. If the cumulative revenue of NTD 8.7 cannot be met, AIlife shall contribute the same percentage of such NTD 400 million obligation in accordance with the actual cumulative revenue to NTD 8.7 billion. On February 10, 2020, the grant date, Uniwill issued a total of 9,608 preferred stock (the “initial preferred stock”) to the Labor Parties for cash and recognized compensation cost when the performance target was achieved. During the fourth quarter of 2020, the Company and the Labor Parties conducted a business projection review and discovered that the sales professional retention rate was not considered in the initial business projection plan. As a result, the fair value of the preferred stock was reevaluated and updated to include the consideration of the sales professional retention rate. The Company determined that each of the initial preferred stock has a value of approximately $102 (NTD 3,070) using the Black-Scholes-Merton option pricing model and restated its interim consolidated financial statements previously filed during the year 2020. Compensation cost of $980,466 was recognized for the initial preferred stock issued. Each incremental preferred stock (the “incremental preferred stock”) to be issued along with the proportion of the paid-in capital has a value of approximately $16 (NTD 437). Compensation cost of $447,137 was recorded in December 2020 since the Labor Parties are entitled of the incremental preferred stock of 28,823 due to the registered number of sales reached 1,000. For the year ended December 31, 2020, a total of the compensation cost related to the JV agreement was $1,427,603, which was considered as the Labor Parties’ contributions to Uniwill (see Note 17). The assumptions used and the calculated fair value of the preferred stock on the grant date were as follows: Initial preferred stock Incremental preferred stock Risk-free interest rate 1.37 % 1.50 % Expected equity volatility 30.0 % 30.0 % Expected revenue volatility 17.5 % 17.5 % Discount rate 18.0 % 18.0 % Expected term in years 1.9 7.8 (a) Sales professionals: 1,000 (a) Sales professionals: 1,000 (b) Revenue: (b) Cumulative revenue: Strike price NTD 250 million NTD 8.7 billion |
PREFERRED STOCK AND COMMON STOC
PREFERRED STOCK AND COMMON STOCK | 12 Months Ended |
Dec. 31, 2021 | |
PREFERRED STOCK AND COMMON STOCK. | |
PREFERRED STOCK AND COMMON STOCK | NOTE 15 – PREFERRED STOCK AND COMMON STOCK PREFERRED STOCK The Company had 1,000,000 shares of Series A Preferred Stock (“Series A Stock”) issued and outstanding as of December 31, 2021 and 2020. The Series A Stock has the following rights and preferences: Voting Rights. Series A Board Designee and Board Restriction. Dividends. Liquidation. Conversion Rights. Business Combinations. Fully Paid and Nonassessable. Additional preferred stock may be authorized and issued in the future in connection with acquisitions, financings, or other matters, as the Board of Directors deems appropriate. In the event that the Registrant issues any shares of preferred stock, a certificate of designation containing the rights, privileges and limitations of this series of preferred stock will be filed with the Secretary of the State of Delaware. The effect of this preferred stock designation power is that its Board of Directors alone, subject to Federal securities laws, applicable blue sky laws, and Delaware law, may be able to authorize the issuance of preferred stock which could have the effect of delaying, deferring, or preventing a change in control without further action by its stockholders, and may adversely affect the voting and other rights of the holders of its common stock. COMMON STOCK As of December 31, 2021 and 2020, the Company had outstanding common stock of 30,286,199 and 29,421,736 shares with amount of $303 and $294, respectively. On February 13, 2015, the Company and AHFL, a wholly owned subsidiary of the Company, entered into an acquisition agreement with Mr. Chwan Hau Li, the selling shareholder of GHFL. Subsequent to the acquisition, GHFL became a wholly-owned subsidiary of the Company which in turn holds approximately 15.64% issued and outstanding shares of Genius Insurance Broker Co., Ltd. (“Genius Broker”). Accordingly, the acquisition was accounted for as an asset acquisition of Genius Broker, which is an equity investment without readily determinable fair value under the measurement alternative acquired by the Company (Note 7). In addition, pursuant to the acquisition agreement, on the fourth anniversary date of the acquisition, if the guaranteed price per share of Genius Broker is higher than the average price per share of the Company, additional shares of the Company should be issued to Mr. Chwan Hau Li. Such contingent shares issued to Mr. Chwan Hau Li. are accounted for as a contingent liability at inception at the fair value and are further measured at the fair value of contingent liability at each reporting date with the change of fair value recognized in earnings until the contingent liability was settled on August 13, 2021. On August 13, 2021, the Company and AHFL entered into the Amendment 4 to the acquisition agreement (the “Amendment 4”) with Mr. Chwan Hau Li to settle the contingent shares. Pursuant to the Amendment 4, the Company issued Mr. Chwan Hau Li 864,463 shares of the Company’s common stock on October 15, 2021. The corresponding loss for issuing common stocks to Mr. Chwan Hau Li for the year ended December 31, 2021 were $1,106,513 which was recognized under other expenses. |
STATUTORY RESERVES
STATUTORY RESERVES | 12 Months Ended |
Dec. 31, 2021 | |
STATUTORY RESERVES. | |
STATUTORY RESERVES | NOTE 16 – STATUTORY RESERVES According to Taiwan accounting rules and corporation regulations, the Company’s subsidiaries in Taiwan must appropriate 10% of net income to statutory reserves until the accumulated reserve reaches registered capital. The reserve can be converted into share capital by issuing new shares to existing shareholders in proportion to their shareholding or by increasing the par value of the shares currently held by them, with a limitation that the reserve left is not less than 25% of the registered capital after converting to share capital. As of December 31, 2021 and 2020, the Company had statutory reserves in responding to the regulation requirements in Taiwan in the amount of $11,101,064 and $9,463,903, respectively. Pursuant to the PRC regulations, the Company’s CAE are required to transfer 10% of net profits, as determined under the PRC accounting regulations, to a Statutory Common Reserve Fund (“Reserve Fund”). Appropriation to the Reserve Fund may cease when the fund equals 50% of a company’s registered capital or when a company has accumulated losses. The transfer to this reserve must be made before distribution of dividends to shareholders. The Company’s CAE did not appropriate such reserve due to as the accumulated deficit as of December 31, 2021 and 2020. Under PRC laws and regulations, there are restrictions on the Company’s VIEs with respect to transferring certain of their net assets to the Company either in the form of dividends, loans, or advances. As of December 31, 2021 and 2020, the Company’s restricted net assets were $12,182,826 and $11,798,471, respectively, which included statutory reserves and consolidated net assets of VIEs. Please refer to Note 25 for additional disclosure for VIEs. |
NONCONTROLLING INTERESTS
NONCONTROLLING INTERESTS | 12 Months Ended |
Dec. 31, 2021 | |
NONCONTROLLING INTERESTS | |
NONCONTROLLING INTERESTS | NOTE 17 – NONCONTROLLING INTERESTS Noncontrolling interests consisted of the following as of December 31, 2021 and 2020: % of Non- Other Impact from controlling December 31, Net Income Comprehensive Liquidation of December 31, Name of Entity Interest 2020 (Loss) Income (Loss) PA Taiwan 2021 Law Enterprise 34.05 % $ (414,957) $ (264,642) $ 3,433 $ — $ (676,166) Law Broker 34.05 % 25,177,272 5,444,673 394,258 — 31,016,203 Uniwill 50.00 % (421,035) 466,934 2,903 — 48,802 Rays 1.00 % (5,772) (689) — — (6,461) PFAL 49.00 % 423,978 (63,441) 3,519 — 364,056 MKI 49.00 % (732) (161,090) — (165,297) (327,119) PA Taiwan 49.00 % (163,013) 1,102 (3,386) 165,297 — Total $ 24,595,741 $ 5,422,847 $ 400,727 $ — $ 30,419,315 % of Non- Other controlling December 31, Contribution Net Income Comprehensive December 31, Name of Entity Interest 2019 /Acquisition (Loss) Income 2020 Law Enterprise 34.05 % $ (204,964) $ — $ (241,231) $ 31,238 $ (414,957) Law Broker 34.05 % 19,536,104 — 4,193,314 1,447,854 25,177,272 Uniwill 50.00 % — 1,427,603 (1,918,023) 69,385 (421,035) Rays 1.00 % — 1,019 (6,791) — (5,772) PFAL 49.00 % 351,278 — 71,713 987 423,978 MKI 49.00 % 283 — (1,015) — (732) PA Taiwan 49.00 % (167,531) — 4,227 291 (163,013) PTC Nanjing 49.00 % (2,644) — 1,465 1,179 - Total $ 19,512,526 $ 1,428,622 $ 2,103,659 $ 1,550,934 $ 24,595,741 |
CONTRACTS WITH CUSTOMERS
CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Dec. 31, 2021 | |
CONTRACTS WITH CUSTOMERS | |
CONTRACTS WITH CUSTOMERS | NOTE 18 – CONTRACTS WITH CUSTOMERS Information about accounts receivable and contract liabilities from contracts with customers is as follows: December 31, 2021 2020 Accounts receivable $ 26,761,678 $ 25,346,250 Contract liabilities – current — 1,119,361 Contract Liabilities – AIATW On June 10, 2013, AHFL entered into a Strategic Alliance Agreement (the “Alliance Agreement”) with AIA International Limited Taiwan Branch (“AIATW”), the purpose of which is to promote life insurance products provided by AIATW within Taiwan by insurance agencies or brokerage companies affiliated with AHFL or China United. The original term of the Alliance Agreement was from June 1, 2013 to May 31, 2018. Pursuant to the terms of the Alliance Agreement, AIATW paid AHFL an execution fee of approximately $8,326,700 (NTD 250,000,000, including the tax of NTD 11,904,762, the “Execution Fee”), which is to be recorded as revenue upon fulfilling sales targets and the 13-month persistency ratio, as defined, over the next five years. The Execution Fee may be required to be recalculated if certain performance targets are not met by AHFL. On September 30, 2014, AHFL entered into a Strategic Alliance Supplemental Agreement (the “First Amendment to the Alliance Agreement”) with AIATW. In the First Amendment to the Alliance Agreement, the performance targets and the provision about refunding the Execution Fee on a pro rata basis when the performance targets are not met were revised. On January 6, 2016, AHFL entered into an Amendment No. 2 to the Alliance Agreement (the “Second Amendment to the Alliance Agreement”) with AIATW to further revise certain provisions in the Strategic Alliance Agreement and the previous amendment entered into by and between AHFL and AIATW. To the extent permitted by applicable laws and regulations, AHFL shall assist and encourage any insurance agency company or insurance brokerage company duly approved by the competent government authorities of Taiwan (the “Appointed Broker/Agent”), to cooperate with AIATW for the promotion of life insurance products of AIATW. Pursuant to the Second Amendment to the Alliance Agreement, the expiration date of the Strategic Alliance Agreement was extended from May 31, 2018 to December 31, 2021, and the effect of the Alliance Agreement during the period from October 1, 2014 to December 31, 2015 was suspended. In addition, both AHFL and AIATW agreed to adjust certain terms and conditions set forth in the Alliance Agreement, some of which are as follows: (i) expanding the scope of services to be provided by AHFL to AIATW to include, without limitation, assessment and advice on suitability of cooperative partners, advice on product strategies suitable for promotion channel development, advice on promotion/sales channel improvement, advice on promotion channel marketing and strategic planning, and promotion channel talent training; and (ii) removing certain provisions related to performance milestones and refund of Execution Fees. On March 15, 2016, AHFL issued a promise letter (the “2016 Letter”) to AIATW that AHFL is required to (i) fulfill sales targets and (ii) the 13-month persistency ratio. On June 14, 2017, with AIATW’s consent, the 2016 Letter was revoked in order to conform with the latest terms and conditions regarding the cooperation between AHFL and AIATW as set forth in an Amendment No. 3 to the Alliance Agreement (the “Third Amendment to the Alliance Agreement”). Pursuant to the Third Amendment to the Alliance Agreement, both AHFL and AIATW agreed to adjust certain terms and conditions set forth this amendment, some of which included (i) except the first contract year (April 15 th th On March 15, 2022, AHFL entered into Amendment 4, which, among other things, extended the expiration date of the Alliance Agreement to December 31, 2031. For more information, please refer to Note 26 and the Form 8-K filed on March 18, 2022. The following table presents the amounts recognized as revenue and refund for each contract year: Contract Revenue Revenue VAT Refund Refund VAT Year Period Execution Fees Amount Amount Amount Amount First 04/15/2013 - 09/30/2014 NTD 50,000,000 NTD 27,137,958 (1) NTD 1,356,898 NTD 20,481,090 (1) NTD 1,024,054 Second 01/01/2016 - 12/31/2016 NTD 35,000,000 NTD 12,855,000 (2) NTD 642,750 NTD 20,478,333 (2) NTD 1,023,917 Third 01/01/2017 - 12/31/2017 NTD 33,000,000 NTD 12,628,201 (3) NTD 631,410 NTD 18,800,370 (3) NTD 940,019 Fourth 01/01/2018 - 12/31/2018 NTD 33,000,000 NTD 11,228,600 (4) NTD 561,429 NTD 20,199,971 (4) NTD 1,010,000 Fifth 01/01/2019 - 12/31/2019 NTD 33,000,000 NTD 9,481,371 (5) NTD 474,069 NTD 21,947,200 (5) NTD 1,097,360 Sixth 01/01/2020 - 12/31/2020 NTD 33,000,000 NTD 12,223,829 (6) NTD 611,191 NTD 19,204,743 (6) NTD 960,237 Seventh 01/01/2021 - 12/31/2021 NTD 33,000,000 NTD — (7) NTD — NTD 31,428,571 (7) NTD 1,571,429 TOTAL NTD 250,000,000 NTD 85,554,959 NTD 4,277,747 NTD 152,540,278 NTD 7,627,016 1) The revenue recognition for the first contract year is based on the annual first year premium (“AFYP”) set in Alliance Agreement, which is different from other contract years. From the second contract year to the seventh contract year, the revenue calculation is based on VONB. The Company recognized the first contract year’s revenue amount of $892,742 (NTD 27,137,958 ), net of Value-Added Tax (“VAT”) in 2017 due to uncertainty resolved after Amendment 3 went effective. Besides, on December 3, 2015 and February 23, 2016, the Company refunded the amounts of $160,573 (NTD 4,761,905 ), net of VAT, and $530,056 (NTD 15,719,185 ), net of VAT, to AIATW, respectively, due to the portion of performance sales targets not met during the first contract year based on original agreement and earlier amendments. 2) For the year ended December 31, 2016, the Company recognized the second contract year’s revenue amount of $422,883 (NTD 12,855,000 ), net of VAT, and refunded the amount of $690,537 (NTD 20,478,333 ), net of VAT, due to uncertainty resolved after Amendment 3 went effective. 3) For the year ended December 31, 2017, the Company recognized the third contract year’s revenue amount of $415,423 (NTD 12,628,201 ), net of VAT, and refund amount of $633,955 (NTD 18,800,370 ), net of VAT, for the same contract period based on the calculation of VONB and 13-month persistency. 4) For the year ended December 31, 2018, the Company recognized the fourth contract year’s revenue amount of $372,650 (NTD 11,228,600 ), net of VAT, and refund amount of $670,389 (NTD 20,199,971 ), net of VAT, for the same contract period based on the calculation of VONB and 13-month persistency. 5) For the year ended December 31, 2019, the Company recognized the fifth contract year’s revenue amount of $306,961 (NTD 9,481,371 ), net of VAT, and refund the amount of $710,545 (NTD 21,947,200 ), net of VAT, for the same contract period based on the calculation of VONB and 13-month persistency. 6) For the year ended December 31, 2020, the Company recognized the sixth contract year’s revenue amount of $415,186 (NTD 12,223,829 ), net of VAT, and refund the amount of $652,294 (NTD 19,204,743 ), net of VAT, for the same contract period based on the calculation of VONB and 13-month persistency. 7) For the year ended December 31, 2021, the Company estimated no revenue will be recognized for the seventh contract year, and refund the amount of $1,125,689 (NTD 31,428,571 ), net of VAT, for the same contract period based on the calculation of VONB and 13-month persistency. The Company recognized revenue of nil and $415,186 (NTD 12,223,829), net of VAT, for the years ended December 31, 2021 and 2020 related to this agreement. As of December 31, 2021 and 2020, the Company had both nil of non-current portion of contract liabilities, respectively, and current contract liabilities of nil and $1,119,361, respectively, related to the Alliance Agreement. |
LEASE
LEASE | 12 Months Ended |
Dec. 31, 2021 | |
LEASE | |
LEASE | NOTE 19 – LEASE The Company has operating leases for its offices with lease terms ranging from one Operating lease right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. As of December 31, 2021 and 2020, operating lease right-of-use assets and lease liabilities were as follows: December 31, 2021 2020 Right-of-use assets under operating leases $ 6,449,182 $ 6,524,555 Operating lease liabilities – current 3,059,329 3,043,056 Operating lease liabilities – noncurrent 3,298,089 3,440,343 Lease Term and Discount Rate December 31, 2021 2020 Weighted average remaining lease term Operating lease 2.31 years 2.64 years Weighted average discount rate Operating lease 2.80 % 3.15 % Supplemental Cash Flow Information related to Leases Years Ended December 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows related to operating leases $ 4,260,159 $ 3,310,015 Amortization of right-of-use assets under operating leases $ 3,966,854 $ 3,009,101 Supplemental Non-cash Information related to Leases Years Ended December 31, 2021 2020 Lease liabilities arising from new right of use assets $ 3,891,481 $ 4,010,991 The minimum future lease payments as of December 31, 2021 are as follows: Amount 2022 $ 3,193,004 2023 2,222,633 2024 1,013,184 2025 128,195 2026 12,042 Thereafter — Total minimum lease payments 6,569,058 Less: Interest (211,640) Present value of future minimum lease payments $ 6,357,418 |
INCOME TAX
INCOME TAX | 12 Months Ended |
Dec. 31, 2021 | |
INCOME TAX | |
INCOME TAX | NOTE 20 – INCOME TAX Provision (benefit) for income taxes for the years ended December 31, 2021 and 2020 consisted of: Years Ended December 31, 2021 2020 Current income provision U.S. Federal $ — $ — U.S. State — — Foreign 4,868,429 3,936,977 $ 4,868,429 $ 3,936,977 Deferred income provision (benefit) U.S. Federal $ — $ — U.S. State — — Foreign 126,222 (529,109) $ 126,222 $ (529,109) Income tax provision $ 4,994,651 $ 3,407,868 Significant components of the deferred tax assets and liabilities for income taxes as of December 31, 2021 and 2020 consisted of the following: December 31, 2021 2020 Deferred tax assets Net operating loss carryforwards $ 1,639,106 $ 2,159,332 Accrued bonus to Law Broker’s officer 465,047 386,693 Unrealized foreign currency exchange loss 240,898 255,905 Social security premium 50,828 — Pension Liabilities 88,037 73,764 Preferred stock-based compensation cost — 299,887 Others 64,222 5,266 Total $ 2,548,138 $ 3,180,847 Valuation allowance (1,639,106) (2,158,957) Net deferred tax assets - noncurrent $ 909,032 $ 1,021,890 Deferred tax liabilities - noncurrent $ — $ — Management determined that it was unlikely that the Company’s deferred tax assets from the net operating loss in the PRC and U.S. Company would be realized and provided a full valuation allowance against the deferred tax assets. In the PRC, the net operating losses generated in a tax year can be carryforward for five years. And in Taiwan, the net operating losses generated in a tax year can be carryforward for ten years. The 2017 Tax Act allows the net operating losses generated after December 31, 2017 to be carryforward indefinitely, whereas the operating losses generated in tax years prior to December 31, 2017 can only be carryforward for twenty years. The following table reconciles the Company’s statutory tax rates to effective tax rates for the years ended December 31, 2021 and 2020: Years Ended December 31, 2021 2020 U.S. statutory rate 21 % 21 % Tax rate difference (2) % (1) % Loss in subsidiaries 7 % 21 % Income tax on undistributed earnings 4 % 8 % Reversal of deferred tax assets not previously recognized — % 1 % Withholding tax — % 5 % Other — % (2) % Effective tax rate 30 % 53 % The Company’s income tax expense is mainly generated by its subsidiaries in Taiwan. The Company’s subsidiaries in Taiwan are governed by the Income Tax Law of Taiwan and subject to a statutory tax rate on income reported in the statutory financial statements at 20% and a tax on undistributed earnings at 5%. The Company had no plan to distribute earnings earned for the years ended December 2021 and 2020, and the tax on undistributed earnings on entities in Taiwan of 5% was estimated. During the year 2020, the Company received an assessment letter from National Taxation Bureau of Taiwan, which requires the Company to remit a supplementary tax payment of $281,605 related to a withholding tax matters, and the amount was fully paid in September 2020. The Company recognized interest and penalties of approximately $145,000, in general and administrative expenses for the year ended December 31, 2020. As of December 31, 2021 and 2020, the Company had current tax payable of $3,703,412 and $2,978,618 for Taiwan income tax, respectively. WFOE and the Consolidated Affiliated Entities in the PRC are governed by the Income Tax Law of the PRC concerning private-run enterprises, which are generally subject to tax at 25% on income reported in the statutory financial statements after appropriate adjustments. WFOE and the CAE had no income tax expenses for the years ended December 31, 2021 and 2020 due to the loss positions. The Company’s subsidiaries in Hong Kong are governed by the Inland Revenue Ordinance Tax Law and subject to two-tiered profits tax regime. The first HK$2 million assessable profits is taxed at 8.25% and any assessable profits over HK$2 million is taxed at 16.25%. As of December 31, 2021 and 2020, the Company had current tax payable of $9,756 and $13,613 for Hong Kong income tax. The 2017 Tax Act was enacted into law on December 22, 2017 and imposed a mandatory one-time tax on accumulated earnings of foreign subsidiaries, introducing new tax regimes, and changing how foreign earnings are subject to U.S. tax. Based on the Company’s total post-1986 earnings and profits (“E&P”) that it previously deferred from U.S. income taxes, we recorded the one-time transition tax $1,199,195 in eight annual installments for the transition tax on undistributed earnings of non-U.S. subsidiaries during the year ended December 31, 2018. As of December 31, 2021, and 2020, the Company had current tax payable of $179,879 and $153,787 and noncurrent tax payable of $539,636 and 719,515 for U.S. one-time transition tax. The 2017 Tax Act also creates a new requirement that certain income (i.e., GILTI) earned by controlled foreign corporations (“CFCs”) must be included currently in the gross income of the CFCs’ U.S. shareholder. GILTI is the excess of the shareholder’s net CFC tested income over the net deemed tangible income return, which is currently defined as the excess of (a) 10 percent of the aggregate of the U.S. shareholder’s pro rata share of the qualified business asset investment of each CFC with respect to which it is a U.S. shareholder over (b) the amount of certain interest expense taken into account in the determination of net CFC-tested income. For the year ended December 31, 2021 and 2020, the Company did not have any GILTI tax obligation. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"), P.L. 116-136, was passed into law, amending portions of certain relevant U.S. tax laws. The CARES Act includes a number of federal income tax law changes, including, but not limited to: (a) permitting net operating loss carrybacks to offset 100% of taxable income for taxable years beginning before 2021, (b) accelerating alternative minimum tax credit refunds, (c) temporarily increasing the allowable business interest deduction from 30% to 50% of adjusted taxable income, and (d) providing a technical correction for depreciation related to qualified improvement property. The Company does not believe that the CARES Act will have a material impact on the Company's consolidated financial statements. The Company files income tax returns in the U.S. federal and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, Taiwan, and the PRC income tax examinations by tax authorities for years before 2017, 2016, and 2011, respectively. For the year ended December 31, 2021 and 2020, the Company did not have any unrecognized tax benefits. It is difficult to predict the final timing and resolution of any particular uncertain tax position. Based on the Company’s assessment of many factors, including past experience and complex judgments about future events, the Company did not anticipate significant changes in its uncertain tax positions over the next 12 months. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 21 – RELATED PARTY TRANSACTIONS Due to Related Parties Due to related parties consisted of the following as of December 31, 2021 and 2020: December 31, 2021 2020 Due to Ms. Lu (A shareholder of Anhou) $ 41,311 $ 78,541 Others 9,220 15,506 Total $ 50,531 $ 94,047 Due to Ms. Lu Amounts due to Ms. Lu were borrowings from Ms. Lu to support Anhou’s business operation. The amounts were non-interesting bearing and payable on demand. Due to bonus to officer, please refer to Note 11; and due to AHFL previous shareholders, please refer to Note 12. The Director and CEO of our Company, Mr. Yi Hsiao Mao, has worked as a consultant of Law Broker. The primary service of Mr. Mao under the consultant agreement is to provide consultation, training and promotion service to Law Broker. The compensation paid to Mr. Mao for his service as a consultant of Law Broker in the fiscal year ended December 31, 2021 and 2020 were $238,919 and $237,111, respectively. The Director of our Company, Mr. Fu Chang Li, has worked as a consultant of the Company since December 7, 2014. The primary service of Mr. Li under the consultant agreement is to (i) provide business plan requested by the Company; (ii) provide assessment of potential investors, including but not limited to valuation, credit assessment and eligibility assessment; (iii) assist the Company to negotiate with potential investors about transactional framework, as well as specific transactional conditions and seek to promote cooperation between the Company and potential investors to reach an agreement; (iv) assist the Company and investors to reach formal investment contract and related legal documents; (v) assist the Company to facilitate the work of any project (including, but not limited to, the execution of letter of intent, formal agreement and other relevant legal documents) until the Company and/or a third party designated by the Company complete the project with the potential investors; and (vi) assist Anhou’s development strategy and monitor its operations. The compensation paid to Mr. Fu Chang Li for his service as a consultant of the Company in the fiscal year ended December 31, 2021 and 2020 were $63,085 and $61,137, respectively. There was no other material related party transactions other than disclosed above. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
COMMITMENTS AND CONTINGENCIES. | |
COMMITMENTS AND CONTINGENCIES | NOTE 22 – COMMITMENTS AND CONTINGENCIES Contingencies The Company is not currently a party to any material legal proceedings, investigation or claims. However, the Company may, from time to time, be involved in legal matters arising in the ordinary course of its business. While the Company is not presently subject to any material legal proceedings, there can be no assurance that such matters will not arise in the future or that any such matters in which the Company is involved, or which may arise in the ordinary course of the Company’s business, will not at some point proceed to litigation or that such litigation will not have a material adverse effect on the business, financial condition or results of operations of the Company. Operating Leases See future minimum annual lease payments in Note 19. Time Deposits Pledged as Collateral See time deposits pledged as collateral for short-term loans in Note 10. Appointment Agreement On December 21, 2018, Law Broker entered into an appointment agreement with Shu-Fen, Lee (“Ms. Lee”), pursuant to which, she serves as the president of Law Broker from December 21, 2018 to December 20, 2021. Law Broker will extend Ms. Lee’s appointment agreement until the next board of directors meeting to discuss it. Ms. Lee’s primary responsibilities include 1) overall business planning, 2) implementation of resolution of the shareholders' meeting or the board of directors, 3) the appointment and dismissal of the Law Broker’s employees and sales professionals, except for internal auditors, 4) financial management and application, 5) being the representative of Law Broker, 6) other matters assigned by the board of directors. According to the agreement, Ms. Lee’s compensation plan include: 1) base salary, 2) managerial allowance, 3) surplus bonus based on 1.25% of Law Broker’s income after tax, and 4) annual year-end bonus. For the years ended December 31, 2021 and 2020, the Company has recorded the compensation expense of $258,200 and $200,558 under the appointment agreement, respectively. Engagement Agreement On December 23, 2021, Law Broker entered into a new engagement agreement with Hui-Hsien Chao (“Ms. Chao”), pursuant to which, she serves as the general manager of Law Broker from December 23, 2021 to December 22, 2024. Ms. Chao’s primary responsibilities are to assist Law Broker in operating and managing insurance agency business. According to the engagement agreement, Ms. Chao’s Bonus plans include: 1) execution, 2) long-term service fees and 3) non-competition. The payment of such bonuses will only occur upon satisfaction of certain condition and subject to the terms in the engagement agreement. Ms. Chao acts as the general manager or equivalent position of Law Broker for a term of at least three years. For the years ended December 31, 2021 and 2020, the Company has recorded the performance bonus expense of $494,213 and $718,495 under the engagement agreement, respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2021 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | NOTE 23 – FAIR VALUE MEASUREMENTS Fair value accounting establishes a framework for measuring fair value and expands disclosure about fair value measurements. Fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels as follows: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liabilities, either directly or indirectly, for substantially the full term of the financial instruments. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. In determining the appropriate levels, the Company performs a detailed analysis of the assets and liabilities that are measured and reported on a fair value basis. At each reporting period, all assets and liabilities for which the fair value measurement is based on significant unobservable inputs are classified as Level 3. The following table summarize financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2021 and 2020: December 31, 2021 Fair Value Level 1 Level 2 Level 3 Carrying Value Assets Long-term investments: REITs $ 1,261,482 — — $ 1,261,482 Total assets measured at fair value $ 1,261,482 $ — $ — $ 1,261,482 December 31, 2020 Fair Value Level 1 Level 2 Level 3 Carrying Value Assets Marketable securities: Stock mutual funds $ 1,272,573 $ — $ — $ 1,272,573 Long-term investments: Government bonds held for available-for-sale — 107,096 — 107,096 REITs 1,359,100 — — 1,359,100 Total assets measured at fair value $ 2,631,673 $ 107,096 $ — $ 2,738,769 The carrying amounts of current financial assets and liabilities in the consolidated balance sheets for cash equivalents, time deposits, and restricted cash equivalents approximate fair value due to the short-term duration of those instruments, which are considered level 2 fair value measurement. Marketable securities and long-term investments in REITs – The fair values of mutual funds and REITs were valued based on quoted market prices in active markets. Government bonds – The fair value of government bonds is valued based on theoretical bond price in the Taipei Exchange. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2021 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | NOTE 24 – SEGMENT REPORTING The Company manages its business as three operating segments by operating geographic areas. The business of WFOE and the CAE in PRC was managed and reviewed as PRC segment. The business of AHFL and its subsidiaries in Taiwan was managed and reviewed as Taiwan segment. The business of PFAL was managed and reviewed as Hong Kong segment. PRC and Taiwan segments retain majority of reported consolidated amounts. The geographical distributions of the Company’s financial information for the years ended December 31, 2021 and 2020 were as follows: Years Ended December 31, Geographic Areas 2021 2020 Revenue Taiwan $ 128,550,812 $ 119,143,726 PRC 5,691,835 6,426,670 Hong Kong 35,014 315,973 Elimination adjustment (2,914,486) (1,619,297) Total revenue $ 131,363,175 $ 124,267,072 Income (loss) from operations Taiwan $ 16,922,939 $ 5,124,493 PRC (1,109,110) (145,748) Hong Kong (124,185) 129,063 Elimination adjustment 1,043,411 1,282,824 Total income from operations $ 16,733,055 $ 6,390,632 Non operating income/(expense) Taiwan $ 587,890 $ 1,637,603 PRC (86,122) (383,291) Hong Kong 3,679 (4,178) Elimination adjustment (590,883) (1,199,126) Total non-operating income/(expense) $ (85,436) $ 51,008 Net income Taiwan $ 12,464,221 $ 3,321,374 PRC (1,133,760) (516,589) Hong Kong (129,471) 146,353 Elimination adjustment 451,978 82,634 Total net income $ 11,652,968 $ 3,033,772 The geographical distribution of the Company’s financial information as of December 31, 2021 and 2020 were as follows: December 31, 2021 2020 Geographical Areas Long-lived assets Taiwan $ 6,784,644 $ 7,259,108 PRC 1,727,911 1,639,933 Hong Kong 1,287 1,664 Elimination adjustment (2,905) (2,905) Total long-lived assets $ 8,510,937 $ 8,897,800 Reportable assets Taiwan $ 195,981,770 $ 171,037,252 PRC 12,326,308 13,149,306 Hong Kong 756,692 915,628 Elimination adjustment (81,283,249) (77,373,957) Total reportable assets $ 127,781,521 $ 107,728,229 Capital investment (CAPEX cash flows) Taiwan $ 595,591 $ 1,522,189 PRC 79,203 87,903 Hong Kong 154 1,576 Elimination adjustment - - Total capital investments $ 674,948 $ 1,611,668 |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2021 | |
VARIABLE INTEREST ENTITIES | |
VARIABLE INTEREST ENTITIES | NOTE 25 –VARIABLE INTEREST ENTITIES The carrying amounts of the assets, liabilities and the results of operations of the VIE and its subsidiaries (i.e., Zhengzhou Zhonglia Hengfu Business Consulting Co., Limited and its subsidiaries) included in the Company’s consolidated balance sheets and statements of comprehensive loss after the elimination of intercompany balances and transactions among VIEs and their subsidiaries within the Company are as follows: December 31, (Amount in USD) 2021 2020 ASSETS Current assets Cash and cash equivalents $ 1,001,974 $ 1,934,125 Accounts receivable and notes receivable 455,884 567,327 Other current assets 120,113 149,376 Total current assets 1,577,971 2,650,828 Right-of-use assets under operating leases 1,528,856 1,464,185 Property and equipment, net 199,056 175,748 Prepaid expenses - Intangible assets 9,377 22,904 Long-term investments 47,179 — Restricted cash – noncurrent 72,870 52,921 Registered capital deposits 1,100,842 1,072,361 Deferred tax assets 74,709 12,036 Other assets 83,951 63,956 TOTAL ASSETS $ 4,694,811 $ 5,514,939 LIABILITIES Current liabilities Commissions payable to sales professionals $ 210,198 $ 274,069 Other current liabilities 1,117,738 766,985 Due to related parties - Ms. Lu (the shareholder of Law Anhou) 41,311 78,541 Total current liabilities 1,369,247 1,119,595 Operating lease liabilities - noncurrent 908,971 1,004,178 TOTAL LIABILITIES $ 2,278,218 $ 2,123,773 Years ended December 31, (Amount in USD) 2021 2020 Revenue $ 5,691,835 $ 6,426,670 Net loss (1,030,082) (82,278) Net cash provided by (used in) operating activities (805,285) 288,374 Net cash used in investing activities (125,572) (87,683) Net cash used in financing activities (38,760) (306,371) The VIEs contributed $5,691,835 and $6,426,670 of the Company’s consolidated revenue for the years ended December 31, 2021 and 2020, respectively, after elimination of inter-company transactions. As of December 31, 2021, there was no pledge or collateralization of the VIEs’ assets that can only be used to settle obligations of the VIEs, other than the share pledge agreements, restricted cash and registered capital deposits as described in Notes 1, 2 and 8. Other than the amounts due to the Company and its non-VIE subsidiaries (which are eliminated upon consolidation), the creditors of the VIEs’ third-party liabilities did not have recourse to the general credit of the Company in normal course of business. The Company did not provide or intend to provide financial or other supports not previously contractually required to the VIEs during the years presented. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 26 – SUBSEQUENT EVENTS The Company has evaluated all other subsequent events through the date these consolidated financial statements were issued and determine that there were no subsequent events or transactions that require recognition or disclosures in the consolidated financial statement except for those have disclosed in other notes and the followings: On January 31, 2022, GIC entered into a stock transfer agreement with AIlife International Investment Co., Ltd. (“AIlife”), whereby GIC sold and transferred its 100% equity in JIB to AIlife. On February 25, 2022, Law Anhou Insurance Agency Co., Ltd. (“Law Anhou”), a contract controlled entity of China United Insurance Service, Inc. entered into a Share Purchase Agreement with Jiangsu Law and third-party buyers, pursuant to which Law Anhou shall sell and transfer 100% of its equity ownership in Jiangsu Law Insurance Brokerage Co., Ltd., a wholly owned subsidiary of Law Anhou to the following buyers: Xuzhou Guosheng Furui Asset Management Co., Ltd., Jiangsu Zhongbozhixin Financial Service Outsourcing Co., Ltd., and Xuzhou Xinrui Service Outsourcing Co., Ltd. The total assets and revenue of Jiangsu Law are 0.61% and 0.47% respectively which are immaterial to the Company’s consolidated financial statements. An English translation of the Share Purchase Agreement is included as Exhibit 10.5 to this annual report and a Form 8-K filed on March 3, 2022. On March 15, 2022, Action Holdings Financial Limited (“AFHL”), a wholly-owned British Virgin Islands subsidiary of China United Insurance Service, Inc. entered into an Amendment 4 to Strategic Alliance Agreement (the “Alliance Agreement”) with AIA International Limited Taiwan Branch (“AIATW”) to further revise certain provisions in the Alliance Agreement and the previous amendments to the Alliance Agreement entered into by and between AFHL and AIATW. Amendment 4 provides that AIATW shall pay the strategic alliance business promotion fee of NTD 50,000,000; however, during 10 years AHFL shall be required to return certain portions of or all of the business promotion fees within thirty (30) days of receipt of notice provided by AIATW if AFHL fails to meet certain goals set in Table 2 and Table 3 of Amendment 4. The primary factor under formula one focuses on the annual and/or accumulated achievement rate(s), while the primary factor under formula two focuses on the 13-month persistency ratio(s), among others. An English translation of Amendment 4 is included as Exhibit 10.6 to this annual report and a Form 8-K filed on March, 18, 2022. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Acquisitions in 2020 | Acquisitions in 2020 On May 27, 2020, the Company completed the acquisition of Rays Technology Corporation ("Rays") for its 90% equity interest. The consideration to acquire 27,000 shares of Ray was US$9,177 (NTD 270,000). The transaction is accounted for a business acquisition. However, the Company did not recognize any goodwill or gain on bargain purchase as a result of the net asset value acquired approximating to the consideration paid. In December 2020, the equity interest in Rays increased from 90% to 99% due to additional capital injections by the Company. The corporate structure as of December 31, 2021 is as follows: On January 31, 2022, Genius Investment Consultant Co., Ltd (“GIC”), a subsidiary entity of China United Insurance Service, Inc. entered into a stock transfer agreement with AIlife International Investment Co., Ltd. (“AIlife”), pursuant to which GIC shall sell and transfer 100% of its equity ownership in Joint Insurance Broker Co., Ltd., a wholly-owned subsidiary of GIC to AIlife. On February 25, 2022, Anhou, a contract controlled entity of China United Insurance Service, Inc. entered into a Share Purchase Agreement. For more information, please refer to Note 26 and Form 8-K Footnote of the Consolidated Financial Statements for the years ended December 31, 2021 and 2020 and current report on filed on March 3, 2022. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of China United, its subsidiaries and variable interest entities as shown in Note 1. All significant intercompany transactions and balances have been eliminated in the consolidation. The Company consolidates variable interest entities where it has been determined that the Company is the primary beneficiary of those entities’ operations. Certain reclassifications have been made to the consolidated financial statements for prior year to the current year’s presentation. Such reclassifications have no effect on net income as previously reported. |
Use of Estimates | Use of Estimates The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”). The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and footnotes thereto. Actual results may differ from those estimates and assumptions. |
Variable Interest Entities | Variable Interest Entities Due to the legal restrictions on foreign ownership and investment in insurance agency and brokerage businesses in China, especially those on qualifications as well as capital requirement of the investors, China United, through its subsidiary, Zhengzhou Zhonglian Hengfu Business Consulting Co., Limited (“WFOE”), entered into Exclusive Business Cooperation Agreement (the “EBCA”), Power of Attorney, Option Agreement, and Share Pledge Agreement (collectively, the First VIE Agreements) on January 17, 2011 with Anhou and Anhou original shareholders so as to operate and conduct the insurance agency and brokerage business in the PRC. Pursuant to the EBCA, (a) WFOE has the right to provide Anhou with complete technical support, business support and related consulting services during the term of the EBCA; (b) Anhou agrees to accept all the consultations and services provided by WFOE. Anhou further agrees that unless with WFOE’s prior written consent, during the term of the EBCA, Anhou shall not directly or indirectly accept the same or any similar consultations and/or services provided by any third party and shall not establish similar cooperation relationship with any third party regarding the matters contemplated by the EBCA; (c) within 90 days after the end of each fiscal year Anhou shall pay an amount to WFOE equal to the shortfall, if any, of the aggregate net income of Anhou for such fiscal; (d) WFOE retains all exclusive and proprietary rights and interests in all rights, ownership, interests and intellectual properties arising out of or created during the performance of the EBCA; and (e) the shareholders of Anhou have pledged all of their equity interests in Anhou to WFOE to guarantee Anhou’s performance of its obligations under the EBCA. The term of the EBCA is 10 years and may be extended and determined by WFOE prior to the expiration thereof, and Anhou shall accept such extended term unconditionally. On March 23, 2022, Anhou and WFOE entered into an amendment to the EBCA, pursuant to which the EBCA shall be automatic renewed for successive terms unless WFOE gives a 30-day notice to terminate such agreement, with each term being 10 years. To extend the business within the PRC, Anhou intended to increase its registered capital to RMB 50 million (approximately $8 million) to meet the requirement of the China Insurance Regulatory Commission (the “CIRC”) so that it can set up new branches in any province beyond its current operations in China. China United increased the investment in Anhou through various loan agreements with the shareholders of Anhou. The aggregate funding provided by WFOE was RMB 40 million. Due to the capital increase, a series of variable interest agreements (the “Second VIE Agreements”), which include Power of Attorneys, Exclusive Option Agreements, Share Pledge Agreements, were signed on October 24, 2013 and entered in the same form as the First VIE Agreements, other than the change of shareholder names and their respective shareholdings. The First VIE Agreements were terminated by and among WFOE, Anhou and Anhou original shareholders on the same date. The EBCA executed by and between WFOE and Anhou on January 17, 2011 remains in full effect. As a result of the Second VIE Agreements, WFOE is considered the primary beneficiary of Anhou and has effective control over Anhou. Accordingly, the results of operations, assets and liabilities of Anhou and its subsidiaries (collectively, the “Consolidated Affiliated Entities” or the “CAE”) are consolidated from the earliest period presented. The Company reviews the VIE’s status on an annual basis and determine if any events have occurred that could cause its primary beneficiary status to change, which include (a) the legal entity’s governing documents or contractual arrangements are changed in a manner that changes the characteristics or adequacy of the legal entity’s equity investment at risk; (b) the equity investment or some part thereof is returned to the equity investors, and other interests become exposed to expected losses of the legal entity; (c) the legal entity undertakes additional activities or acquires additional assets, beyond those anticipated at the later of the inception of the entity or the latest reconsideration event, that increase the entity’s expected losses; and (d) the legal entity receives an additional equity investment that is at risk, or the legal entity curtails or modifies its activities in a way that decreases its expected losses. For the years ended December 31, 2021 and 2020, no event taken place that would change the Company’s primary beneficiary status. |
Noncontrolling Interests | Noncontrolling Interests Noncontrolling interests represent amounts related to majority-owned subsidiaries in which the Company has a controlling financial interest. The amount of noncontrolling interest is consisted of the amount of such interests at the date of the Company's original acquisition of an equity interest and the noncontrolling holders' percentage share of income or losses from the subsidiaries. |
Foreign Currency | Foreign Currency China United’s financial statements are presented in U.S. dollars ($), which is the China United’s reporting and functional currency. The functional currencies of the China United’s subsidiaries are New Taiwan dollar (“NTD”), China yuan (“RMB”) and Hong Kong dollar (“HKD”). Each subsidiary maintains its financial records in its own functional currency. Transactions denominated in foreign currencies are measured at the exchange rates prevailing on the transaction dates. Monetary assets and liabilities denominated in foreign currencies are remeasured at the exchange rates prevailing at the balance sheet date. Non-monetary items that are measured in terms of historical cost in foreign currency are remeasured using the exchange rates at the dates of the initial transactions. Exchange gains and losses are included in the consolidated statements of operations and other comprehensive income (loss). The Company translates the assets and liabilities into U.S. dollars using the rate of exchange prevailing at the balance sheet date and the statements of operations and cash flows are translated at an average rate during the reporting period. Adjustments resulting from the translation from NTD, RMB and HKD into U.S. dollars are recorded in stockholders’ equity as part of accumulated other comprehensive income. The exchange rates used for financial statements are as follows: Years Ended December 31, 2021 2020 Average rate: Taiwan dollar (NTD) NTD 27.91940 NTD 29.44185 China yuan (RMB) RMB 6.44995 RMB 6.90013 Hong Kong dollar (HKD) HKD 7.77225 HKD 7.75576 United States dollar ($) $ 1.00000 $ 1.00000 December 31, 2021 2020 Exchange rate: Taiwan dollar (NTD) NTD 27.68785 NTD 28.07725 China yuan (RMB) RMB 6.35877 RMB 6.52765 Hong Kong dollar (HKD) HKD 7.79713 HKD 7.75249 United States dollar ($) $ 1.00000 $ 1.00000 |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash in banks, bank deposits, and highly liquid investments with maturities of three months or less at the date of origination. |
Restricted Cash | Restricted Cash Restricted cash represent amounts held in banks by the Company in conformity with Provisions of the Supervision and Administration of Specialized Insurance Agencies by the CIRC and a trust account held for bonus accrued for officers. |
Time Deposits | Time Deposits Time deposits are short-term bank deposits with maturities of more than three months but less than one year at the date of origination. |
Marketable Securities | Marketable Securities The Company invests part of its excessive cash in equity securities and money market funds. Marketable securities represent trading securities bought and held primarily for sale in the near-term to generate income on short-term price differences and are stated at fair value. Realized and unrealized gains and losses are recorded in other income (expense). |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable include commission receivables stated at net realizable values. The Company reviews its accounts receivable regularly to determine if a bad debt allowance is necessary at each quarter-end. Management reviews the composition of accounts receivable and analyzes the age of receivables outstanding, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the necessity of making such allowance. No allowance was deemed necessary as of December 31, 2021 and 2020. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, less accumulated depreciation. Expenditures for improvements are capitalized; repairs and maintenance are charged to expense as incurred. Upon sale of retirement, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is recorded in other income (expense). Depreciation of office equipment, office furniture, transportation equipment and other equipment is computed using straight-line method based on estimated useful lives ranging from one |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess of acquisition cost over the fair value of the net assets in the acquisition of a business. Goodwill is not amortized but instead is evaluated for impairment annually or more frequently if events or changes in circumstances indicate it might be impaired, using two-step goodwill impairment test. The first step screens for potential impairment of goodwill to determine if the fair value of the reporting unit is less than its carrying value, while the second step measures the amount of goodwill impairment, if any, by comparing the implied fair value of goodwill to its carrying value. Intangible assets, which primarily consist of software, are stated at cost, less accumulated amortization, and amortized over estimated useful lives ranging from 3 to 5 years. The intangible assets recorded in the Company’s financial statement were acquired externally. For internally developed software, costs incurred in the development phase are capitalized and amortized over the product’s estimated useful life. All costs incurred that relate to planning and post implementation phases of development are expensed. Development phase costs generally include salaries and personnel costs and third-party contractor expenses associated with software development, configuration and coding. Capitalized costs related to internally developed software under development are treated as construction in progress until the program, feature or functionality is ready for its intended use, at which time amortization commences. The Company did not capitalize any expenditure related to internally developed software for the period 2021 and 2020 |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews the carrying values of the long-lived assets when circumstances warrant as to whether the carrying value has become impaired. The Company considers assets to be impaired if the carrying value of an asset exceeds the present value of future net undiscounted cash flows from its related operations. There was no impairment recognized for the years ended December 31, 2021 and 2020. |
Long-Term Investments | Long-Term Investments Long-term investments include government bonds held as available-for-sale, investment in real estate investment trusts (“REITs”) measured at fair value through net income, and equity investments using cost method under the measurement alternative. Available-for-sale investments are carried at fair value and unrealized gains and losses as a result of changes in the fair value are recorded as a separate component within accumulated other comprehensive income (loss) in the accompanying consolidated balance sheets. The Company evaluates its available-for-sale debt securities to assess whether those with unrealized loss positions are other-than-temporarily impaired. Impairments are considered to be other-than-temporary if they are related to deterioration in credit risk or if it is likely that the Company will sell the securities before the recovery of its cost basis. Realized gains and losses and declines in value judged to be other-than-temporary are determined based on the specific identification method and are reported in other income (expense) in the consolidated statements of comprehensive loss. The Company measures equity investments in companies that do not have a readily determinable fair value in which it holds an interest of less than 20% using cost method under the measurement alternative, which is defined as cost, less any impairments, a plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. Significant judgments are required to determine (i) whether observable price changes are orderly transactions and identical or similar to an investment held by the Company; and (ii) the selection of appropriate valuation methodologies and underlying assumptions, including expected volatility and the probability of exit events as it relates to liquidation and redemption features used to measure the price adjustments for the difference in rights and obligations between instruments. For equity investments measured at fair value with changes in fair value recorded in earnings, the Company does not assess whether those securities are impaired. For equity investments that the Company elects to use the measurement alternative, the Company makes a qualitative assessment considering impairment indicators to evaluate whether investments are impaired at each reporting date. Impairment indicators considered include, but are not limited to, a significant deterioration in the earnings performance or business prospects of the investee, including factors that raise significant concerns about the investee’s ability to continue as a going concern, a significant adverse change in the regulatory, economic, or technologic environment of the investee and a significant adverse change in the general market condition of either the geographical area or the industry in which the investee operates. If a qualitative assessment indicates that the investment is impaired, the Company has to estimate the investment’s fair value in accordance with the principles of ASC 820, Fair Value Measurement. If the fair value is less than the investment’s carrying value, the Company recognizes an impairment loss in earnings equal to the difference between the carrying value and fair value. |
Advertising Costs | Advertising Costs The Company expenses all advertising costs, which include promotions and branding, as incurred. The Company incurred $203,754 and $237,418 in advertising and marketing costs under selling expenses during the years ended December 31, 2021 and 2020, respectively. |
Revenue Recognition | Revenue Recognition The Company’s revenue is derived from insurance agency and brokerage services with respect to life insurance and property and casualty insurance products. The Company, through its subsidiaries and variable interest entities, sells insurance products provided by insurance companies to individuals, and is compensated in the form of commissions from the respective insurance companies, according to the terms of each service agreement made by and between the Company and the insurance companies. The core revenue recognition principle under ASC 606, the Company considers the contracts with insurance companies contain one performance obligation and consideration should be recorded when performance obligation is satisfied at point in time. For life insurance products, the amount of revenue recognition includes (i) the first year commission (“FYC”); (ii) contingent commissions for subsequent years; (iii) annual performance and operation bonus; (iv) bonus based on persistency ratio bonus; (v) service allowances. The sale of an insurance product by the Company is considered complete when initial insurance premium is paid by an individual and the insurance policy is approved by the respective insurance company. When a policy is effective, the insurance company is obligated to pay the agreed-upon commission to the Company under the terms of its service agreement with the Company and such commission is recognized as revenue. For the FYC, the Company recognizes the revenue when the individuals’ policies are effective. The Company makes the estimation amount to be entitled for annual performance and operating bonus which is based on the FYC. From the experiences and information received from the insurance company, the accumulated recognized revenue amount will not be significantly reversed as the historical policy cancellations are immaterial. Therefore, the Company makes an estimation on performance and operation bonus which are based on the accumulated FYC on quarterly basis, and make reconciliation between actual and estimation amount on annual basis. The estimated revenue in the fiscal year of 2021 and 2020 was approximately $7.4 million and $7.3 million, respectively. Others includes the contingent commissions for subsequent years, the bonus based on persistency ratio bonus, and service allowances, are considered highly susceptible to factors outside the company's influence and depend on the actions of third parties (i.e., the subsequent premiums paid by individual policyholders), and the uncertainty can be extended for many years. Therefore, the Company does not have high confidence to estimate the amount of such variables considerations that will not be reversed in subsequent reporting periods. Considering the effect of uncertainties, the contingent commissions for subsequent years, the bonus based on persistency ratio, and service allowances will be recognized as revenue based on the actual amount received from the insurance companies after the uncertain event is resolved. For property and casualty insurance products, the Company recognizes the revenue when the individuals’ policies are effective. The revenue from property and casualty insurance products were 7.2% and 5.4% of total revenue for the years ended December 31, 2021 and 2020, respectively. The Company is obligated to pay commissions to its sales professionals when an insurance policy becomes effective. The Company recognizes commission revenue granted from insurance companies on a gross basis, and the commissions paid to its sales professionals are recognized as cost of revenue. The Company enters into service agreements with insurance companies, which may give rise to contract assets and contract liabilities. When the timing of revenue recognition differs from the timing of payments made by insurance companies, the Company recognizes either contract assets (its performance precedes the billing date) or contract liabilities (customer payment is received in advance of performance). Contract assets represent unbilled amounts resulting from the insurance agency and brokerage services provided by the Company to the insurance companies when the Company has an unconditional right to payment once the individuals’ insurance policies are effective. Contract assets are classified as current and the full balance is reclassified to accounts receivables when the right to payment becomes unconditional. The balance of contract assets was insignificant as of January 1, 2021 and December 31, 2021. Contract liabilities represents the commissions received upfront from the insurance companies related to services that has not yet been recognized as revenue. The Company classifies contract liabilities as current based on the timing of when the Company expects to recognize revenue, which typically occurs within one year. Please refer to Note 18 for contract liabilities in AIATW. The Company generally expenses sales commissions to its sales professionals when incurred because such expenses would be settled within one year or less. These costs are recorded within sales expenses in the consolidated statements of operations and other comprehensive income, as the expenses are settled less than one year and the Company has elected the practical expedient included in ASC 606. For the years ended December 31, 2021 and 2020, the Company recorded revenue of $131,363,175 and $124,267,072, respectively. Disaggregation information of revenue is disclosed in Note 24. |
Stock-Based Compensation | Stock-Based Compensation The Company have preferred stock-based compensation issued to non-related entities for Uniwill. The Company accounts for equity-based compensation cost in accordance with ASC 718, Compensation-Stock Compensation after adoption of ASC 2018-07, which requires the measurement and recognition of compensation expense related to the fair value of equity-based compensation awards that are ultimately expected to vest. Stock-based compensation expense recognized includes the compensation cost for all share-based compensation payments granted to employees and nonemployees, net of estimated forfeitures, over the employees’ requisite service period or the non-employee performance period based on the grant date fair value estimated in accordance with the provisions of ASC 718. ASC 718 is also applied to awards modified, repurchased, or cancelled during the periods reported. Please see Note 14 for additional information. |
Retirement Plan and Net Periodic Pension Cost | Retirement Plan and Net Periodic Pension Cost Under the Company defined benefit pension plan, net periodic pension cost, which includes service cost, interest cost, expected return on plan assets, amortization of unrecognized net transition obligation and gains or losses on plan assets, is recognized based on an actuarial valuation report. The Company recognizes the funded status of pension plan as an asset or a liability in the consolidated balance sheets. Each overfunded plan is recognized as an asset and each underfunded plan is recognized as a liability. The recognition of prior service costs or credits and net actuarial gains or losses, as well as subsequent changes in the funded status, are recognized as components of accumulated other comprehensive income or loss, net of tax, in shareholders’ equity, until they are amortized as a component of net periodic benefit cost. |
Income Taxes | Income Taxes The Company records income tax expense using the asset-and-liability method of accounting for deferred income taxes. Under this method, deferred taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each year-end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Deferred tax assets are reduced by a valuation allowance if, based on available evidence, it is more likely than not that the deferred tax assets will not be realized. The Company has elected to recognize a tax on global intangible low-taxed income ("GILTI"), which was imposed by the 2017 Tax Cuts and Jobs Act (the "2017 Tax Act"), as tax expense in the period the tax is incurred. When tax returns are filed, it is likely some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more-likely-than-not the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits is classified as interest expense and penalties are classified in general and administrative expenses in the consolidated statements of operations and other comprehensive income (loss). |
Earnings Per Share | Earnings Per Share Basic earnings per common share (“EPS”) is computed by dividing net income attributable to the common shareholders of the Company by the weighted-average number of common shares outstanding. Diluted EPS is computed in the same manner as basic EPS, except the number of shares includes additional common shares that would have been outstanding if potential common shares with a dilutive effect had been issued. As the holders of preferred stock of the Company are entitled to share equally with the holders of common stock, on a per share basis, in such dividends and other distributions of cash, property or shares of stock of the Company as may be declared by the board of directors, the preferred stock is treated as a participating security. When calculating the basic earnings per common share, the two-class method is used to allocate earnings to common stock and participating security as required by FASB ASC Topic 260, “Earnings Per Share.” As of December 31, 2021 and 2020, the Company does not have any potentially dilutive instrument. The following is a reconciliation of the income and share data used in the basic and diluted EPS computations for the years ended December 31, 2021 and 2020 under the two-class method. December 31, 2021 2020 Numerator: Common stock Preferred stock Common stock Preferred stock Allocation of net income attributable to the Company. $ 6,026,550 $ 203,571 $ 899,539 $ 30,574 Denominator: Weighted average shares of the Company’s common/preferred stock outstanding - basic 29,604,102 1,000,000 29,421,736 1,000,000 Basic and diluted earnings per share $ 0.204 $ 0.204 $ 0.031 $ 0.031 The participating rights (liquidation and dividend rights) of the holders of the Company’s common stock and preferred stock are identical, except with respect to voting right (Note 15). As a result, and in accordance with ASC 260, the undistributed earnings for each year are allocated based on the contractual participation rights of the common stock and preferred stock as if the earnings for the year had been distributed. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. |
Concentration of Credit Risk | Concentration of Credit Risk The Company maintains cash and cash equivalents with banks or high credit, quality financial institutions in the USA, PRC, Hong Kong, and Taiwan with balances in excess of the limits insured by various governments. In Taiwan, a depositor has up to NTD3,000,000 insured by Central Deposit Insurance Corporation (“CDIC”). In China, a depositor has up to RMB500,000 insured by the People’s Bank of China Financial Stability Bureau (“FSD”). In Hong Kong, a depositor has up to HKD500,000 insured by Hong Kong Deposit Protection Board (“DPB”). In the United States, the standard insurance amount is $250,000 per depositor in a bank insured by the Federal Deposit Insurance Corporation (“FDIC”). Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents, time deposits, restricted cash, register capital deposits included under other non-current assets and accounts receivable. As of December 31, 2021, and 2020, approximately $2,712,000 and $2,229,000 of the Company’s cash and cash equivalents, time deposits, restricted cash, and register capital deposits held by financial institutions, was insured, and the remaining balance of approximately $83,446,000 and $63,222,000, was not insured. With respect to accounts receivable, the Company generally does not require collateral and does not have collectability concern. For the years ended December 31, 2021 and 2020, the Company earns commission revenues from an insurance company individually more than 10%of the total revenue of the Company were: Years Ended December 31, 2021 2020 % of Total % of Total Amount Revenue Amount Revenue TransGlobe Life Insurance Inc. $ 33,579,165 26 % $ 29,120,466 23 % Taiwan Life Insurance Co., Ltd. 24,626,829 19 % 25,227,920 20 % Farglory Life Insurance Co., Ltd. 16,676,479 13 % 15,336,439 12 % As of December 31, 2021, and 2020, the Company’s accounts and notes receivable due from an insurance company individually accounted more than 10% of the total accounts and notes receivable were: December 31, 2021 2020 % of Total % of Total Accounts Accounts Amount Receivable Amount Receivable TransGlobe Life Insurance Inc. $ 8,569,590 32 % $ 7,761,664 31 % Taiwan Life Insurance Co., Ltd. 4,483,343 17 % 4,557,862 18 % Farglory Life Insurance Co., Ltd. 2,729,673 10 % 2,787,906 11 % The Company derives its revenue from insurance agency and brokerage services provided and operates their business in the PRC, Hong Kong and Taiwan. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic, foreign currency exchange and legal environments in the PRC, Hong Kong and Taiwan, and by the state of each economy. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, Hong Kong and Taiwan, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, and rates and methods of taxation, among other things. |
Operating Leases | Operating Leases Under ASC 842, Leases, the Company determines if an arrangement is a lease at inception of the contract and whether a contract is or contains a lease by determining whether it conveys the right to control the use of the identified asset for a period of time. If the contract provides us the right to substantially all of the economic benefits from the use of the identified asset and the right to direct the use of the identified asset, we consider it to be, or contain, a lease. The Company records a right-of-use asset and a corresponding lease liability based on the present value of the minimum lease payments. The lease term used in the calculation of right-of-use assets and lease liabilities include renewal and termination options that are reasonably certain to be exercised. Leases with an initial term of twelve months or less are not recorded on the consolidated balance sheet and the related lease expense is recognized on a straight-line basis over the lease term. Our leases do not provide an implicit borrowing rate, and we estimate the Company’s incremental borrowing rate to discount the lease payments based on information available at lease commencement. |
Contingent Consideration for Acquisition of Genius Broker | Acquisitions The Company evaluate acquisitions pursuant to ASC 805, Business Combinations, to determine whether the acquisition should be classified as either an asset acquisition or a business combination. Acquisitions for which substantially all of the fair value of the gross assets acquired are concentrated in a single identifiable asset or a group of similar identifiable assets are accounted for as an asset acquisition. The cost of a group of assets acquired in an asset acquisition is allocated to the individual assets acquired or liabilities assumed based on their relative fair values and does not give rise to goodwill. Acquisitions that meet the definition of a business combination are recorded at fair value using a fair value model under which the assets and liabilities are generally recognized at their fair values and the difference between the consideration transferred, excluding transaction costs, and the fair values of the assets and liabilities is recognized as goodwill. For acquisitions that meet the definition of a business combination, we allocate the purchase price of those properties on a fair value basis and expense the acquisitions related transaction costs as incurred. For asset acquisitions and business combinations, we allocate the purchase price to net tangible and identified intangible assets acquired based on their fair values. The Company has incorporated contingent consideration, or earn out provisions, into the structure of its acquisitions. These arrangements may result in the payment of additional purchase price consideration to the sellers based on certain financial thresholds for periods following the closing of the respective acquisition. The additional purchase price consideration is payable in the form of cash and, in some cases, equity. The Company recognizes the fair value of estimated contingent consideration at the acquisition date as part of the consideration transferred in exchange for the acquired business or assets. The contingent consideration is remeasured to fair value at each reporting date until the contingency is resolved. Any changes in fair value are recognized each reporting period in non-cash changes in fair value of estimated contingent consideration in the accompanying consolidated statements of operations. |
Contingencies | Contingencies Certain conditions may exist as of the date the financial statements are issued, which could result in a loss to the Company which will be resolved when one or more future events occur or fail to occur. The Company’s management assesses such contingent liabilities, and such assessment inherently involves judgment. In assessing loss contingencies arising from legal proceedings pending against the Company or unasserted claims that may rise from such proceedings, the Company’s management evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought. If the assessment of a contingency indicates it is probable a material loss will be incurred and the amount of the loss can be reasonably estimated, then the estimated loss is accrued in the Company’s financial statements. If the assessment indicates a material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material would be disclosed. |
Subsequent event | Subsequent event The Company has evaluated all transactions through the date the consolidated financial statements were issued for subsequent event disclosure consideration. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Credit Losses In June 2016, the FASB issued ASU No. 2016-13, (FASB ASC Topic 326), Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments which amends the current accounting guidance and requires the use of the new forward-looking “expected loss” model, rather than the “incurred loss” model, which requires all expected losses to be determined based on historical experience, current conditions and reasonable and supportable forecasts. This guidance amends the accounting for credit losses for most financial assets and certain other instruments including trade and other receivables, held-to-maturity debt securities, loans and other instruments. In November 2019, the FASB issued ASU No. 2019-10 to postpone the effective date of ASU No. 2016-13 for public business entities eligible to be smaller reporting companies defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company believes the adoption of ASU No. 2016-13 will not have a material impact on the Company’s consolidated financial statements. Income Tax In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes which is intended to simplify various aspects related to accounting for income taxes. The Company adopted the guidance on January 1, 2021. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. Reference Rate Reform In March 2020, the FASB issued ASU No. 2020–04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The pronouncement provides temporary optional expedients and exceptions to the current guidance on contract modifications and hedge accounting to ease the financial reporting burden related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. The guidance was effective for all entities upon issuance and generally can be applied to applicable contract modifications through December 31, 2022. The Company is currently evaluating the effects of the guidance on the Company’s consolidated financial statements and related disclosures Equity Securities, Equity-method Investments and Certain Derivatives In January 2020, the FASB issued ASU 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)-Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. The guidance provides clarification of the interaction of rules for equity securities, the equity method of accounting and forward contracts and purchase options on certain types of securities. ASU 2020-01 was effective for the Company in the first quarter of 2021. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. The management does not believe that other than disclosed above, accounting pronouncements the recently issued but not yet adopted will have a material impact on its financial position, results of operations or cash flows. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of Intercompany Foreign Currency Balances | Years Ended December 31, 2021 2020 Average rate: Taiwan dollar (NTD) NTD 27.91940 NTD 29.44185 China yuan (RMB) RMB 6.44995 RMB 6.90013 Hong Kong dollar (HKD) HKD 7.77225 HKD 7.75576 United States dollar ($) $ 1.00000 $ 1.00000 December 31, 2021 2020 Exchange rate: Taiwan dollar (NTD) NTD 27.68785 NTD 28.07725 China yuan (RMB) RMB 6.35877 RMB 6.52765 Hong Kong dollar (HKD) HKD 7.79713 HKD 7.75249 United States dollar ($) $ 1.00000 $ 1.00000 |
Schedule of reconciliation of the income and share data used in the basic and diluted EPS computations | The following is a reconciliation of the income and share data used in the basic and diluted EPS computations for the years ended December 31, 2021 and 2020 under the two-class method. December 31, 2021 2020 Numerator: Common stock Preferred stock Common stock Preferred stock Allocation of net income attributable to the Company. $ 6,026,550 $ 203,571 $ 899,539 $ 30,574 Denominator: Weighted average shares of the Company’s common/preferred stock outstanding - basic 29,604,102 1,000,000 29,421,736 1,000,000 Basic and diluted earnings per share $ 0.204 $ 0.204 $ 0.031 $ 0.031 |
Customer concentration | Revenues | |
Schedule of concentration risk | Years Ended December 31, 2021 2020 % of Total % of Total Amount Revenue Amount Revenue TransGlobe Life Insurance Inc. $ 33,579,165 26 % $ 29,120,466 23 % Taiwan Life Insurance Co., Ltd. 24,626,829 19 % 25,227,920 20 % Farglory Life Insurance Co., Ltd. 16,676,479 13 % 15,336,439 12 % |
Credit concentration | Accounts receivable | |
Schedule of concentration risk | December 31, 2021 2020 % of Total % of Total Accounts Accounts Amount Receivable Amount Receivable TransGlobe Life Insurance Inc. $ 8,569,590 32 % $ 7,761,664 31 % Taiwan Life Insurance Co., Ltd. 4,483,343 17 % 4,557,862 18 % Farglory Life Insurance Co., Ltd. 2,729,673 10 % 2,787,906 11 % |
CASH, CASH EQUIVALENTS AND RE_2
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |
Schedule of cash, cash equivalents and restricted cash | Cash, cash equivalents and restricted cash consisted of the following as of December 31, 2021 and 2020: December 31, 2021 2020 Cash and cash equivalents: Cash on hand and in banks $ 18,234,350 $ 9,063,338 Restricted cash – noncurrent 88,282 66,490 Total cash, cash equivalents and restricted cash shown in the statements of cash flows $ 18,322,632 $ 9,129,828 |
TIME DEPOSITS (Tables)
TIME DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
TIME DEPOSITS | |
Schedule of time deposits | December 31, 2021 2020 Total time deposits $ 71,161,391 $ 53,339,508 Less: time deposits – original maturities less than three months under cash and cash equivalents (6,862,215) — Time deposits – original maturities over three months but less than one year $ 64,299,176 $ 53,339,508 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
MARKETABLE SECURITIES. | |
Schedule of realized and unrealized gains (losses) | Years Ended December 31, 2021 2020 Net unrealized gains on marketable securities held $ — $ 124,825 Net realized gains for marketable securities sold 75,950 50,401 Total net gains recognized in other income $ 75,950 $ 175,226 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
PROPERTY AND EQUIPMENT, NET | |
Schedule of property and equipment | Property and equipment consisted of the following, as of December 31, 2021 and 2020: December 31, 2021 2020 Office equipment $ 2,152,239 $ 2,002,634 Office furniture 97,917 102,557 Leasehold improvements 2,415,907 2,194,531 Transportation equipment 238,202 233,731 Other equipment 1,047,134 800,246 Total 5,951,399 5,333,699 Less: accumulated depreciation (3,889,644) (2,960,454) Total property and equipment, net $ 2,061,755 $ 2,373,245 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
INTANGIBLE ASSETS, NET | |
Schedule of company's intangible assets | As of December 31, 2021 and 2020, the Company’s intangible assets consisted of the following: December 31, 2021 2020 Software $ 2,413,843 $ 2,264,482 Less: accumulated amortization (2,080,725) (1,882,735) Total intangible assets, net $ 333,118 $ 381,747 |
Schedule of estimated future assets amortization | Estimated future assets amortization as of December 31, 2021 is as follows: Years ending December 31, Amount 2022 $ 136,684 2023 98,177 2024 57,017 2025 34,083 2026 7,157 Thereafter — Total $ 333,118 |
LONG-TERM INVESTMENTS (Tables)
LONG-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
LONG-TERM INVESTMENTS. | |
Schedule of company's long-term investments | As of December 31, 2021 and 2020, the Company’s long-term investments consisted of the following: December 31, 2021 2020 Equity investments under cost method $ 1,435,330 $ 1,368,899 Government bonds held for available-for-sale — 107,096 REITs 1,261,482 1,359,100 Total long-term investments $ 2,696,812 $ 2,835,095 |
Schedule of government bonds fair value held for available-for-sale for unrealized gains and losses | Equity Investments under Cost Method using the measurement alternative December 31, 2021 December 31, 2020 Investment Investment Investee Ownership Amount Ownership Amount Genius Insurance Broker Co., Ltd (“GIB”) 11.73 % $ 1,388,151 11.73 % $ 1,368,899 Hainan Haoguan Yucheng Technology Service LLP (“HAINAN”) 9.99 % 47,179 — % — |
Schedule of change in carrying value of Equity investments accounted for the cost method due to foreign currency translation | Gross Gross Amortized unrealized unrealized Fair cost gains losses value December 31, 2020: Government bonds $ 106,906 $ 190 $ — $ 107,096 Total $ 106,906 $ 190 $ — $ 107,096 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
OTHER ASSETS | |
Schedule of Company's other assets | December 31, 2021 2020 Trust account $ 2,477,621 $ 1,962,443 Security deposits/Rent deposit 1,095,665 806,606 Registered Capital deposit 1,100,842 1,072,361 Other 66,512 170,960 Total $ 4,740,640 $ 4,012,370 |
COMMISSIONS PAYABLE TO SALES _2
COMMISSIONS PAYABLE TO SALES PROFESSIONALS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
COMMISSIONS PAYABLE TO SALES PROFESSIONALS | |
Schedule of commissions payable to professionals | Commissions payable to professionals consisted of the following as of December 31, 2021 and 2020: December 31, 2021 2020 Taiwan $ 13,793,343 $ 11,814,222 PRC 210,198 274,069 Total commissions payable to sales professionals $ 14,003,541 $ 12,088,291 |
SHORT-TERM LOANS (Tables)
SHORT-TERM LOANS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SHORT-TERM LOANS | |
Schedule of short-term loans | The Company’s short-term loans consisted of the following as of December 31, 2021 and 2020: December 31, 2021 December 31, 2020 Debt Collateral Debt Collateral Line of Credit Collateral balance value balance value $9.0 million (NTD 250 million) revolving line of credit with Cathay United Bank Company Limited (“CUB”); the loan bears interest at the higher of CUB's adjustable rates for loans plus a margin of 0.41% or the 1-month TAIBOR rate plus a margin of 0.8% and matures on May 4, 2022. Time deposits $ 9,011,172 $ 9,047,289 $ 6,019,108 $ 6,019,108 $4.0 million revolving line of credit with O-Bank; the loan bears interest at the TAIFX3 rate plus a margin of 0.5% and matures on December 2, 2022. Time deposits 4,000,000 4,984,135 4,000,000 4,915,011 $6.0 million revolving line of credit with Taishin International Bank (“TSIB”); the loan bears interest at the TSIB’s cost of funds plus a margin of 0.7% and matures on May 31, 2022. Time deposits 2,200,000 3,065,801 — — $2.5 million revolving line of credit with Far Eastern International Bank (“FEIB”); the loan bears interest at the higher of TAIFX3 rate plus a margin of 0.5% and matures on March 15, 2022. Time deposits 1,850,000 2,961,588 840,000 1,132,590 $3.1 million revolving line of credit with KGI; the loan bears interest at the TAIFX Fixing rate plus a margin of 0.9% and matures on May 18, 2022. Time deposits 1,540,000 2,481,926 2,100,000 2,443,003 $7.2 million (NTD 200 million) revolving line of credit with Taishin International Bank (“TSIB”); the loan bears interest at the TSIB’s cost of funds plus a margin of 0.625% and matures on May 31, 2022. Time deposits 234,760 234,760 — — $1.5 million revolving line of credit with CTBC Bank Co., Ltd. (“CTBC”); the loan bears interest at the CTBC’s cost of funds plus a negotiated margin on individual case basis and matures on August 31, 2022. Time deposits — — 1,200,000 1,384,833 $3.0 million revolving line of credit with E. Sun Bank (“E. Sun”); the loan bears interest at the higher of TAIFX3 rate plus a margin of 0.4% and matures on November 30, 2022. Time deposits — 1,000,000 — — $ 18,835,932 $ 23,775,499 $ 14,159,108 $ 15,894,545 |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
OTHER CURRENT LIABILITIES | |
Schedule of other current liabilities | Other current liabilities consisted of the following as of December 31, 2021 and 2020: December 31, 2021 2020 Accrued bonus $ 6,645,496 $ 7,854,488 Payroll payable and other benefits 2,188,074 1,767,417 Accrued business tax and tax withholdings 1,903,039 1,643,082 Accrued tax penalties — 170,016 Other accrued expenses 3,260,994 2,156,031 Total other current liabilities $ 13,997,603 $ 13,591,034 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
OTHER LIABILITIES | |
Schedule of other noncurrent liabilities | The Company’s other liabilities consisted of the following as of December 31, 2021 and 2020: December 31, 2021 2020 Due to previous shareholders of AHFL $ 541,754 $ 534,240 Accrued bonus - noncurrent (Note 11) — 237,440 Total other liabilities $ 541,754 $ 771,680 |
POST-EMPLOYMENT BENEFITS (Table
POST-EMPLOYMENT BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
POST-EMPLOYMENT BENEFITS | |
Summary of Movements in present value of defined benefit obligation | Years ended December 31, 2021 2020 Defined benefit obligation at beginning of year $ (487,020) $ (360,026) Items recognized as profit or loss: Service cost (82,452) (75,080) Interest cost (1,932) (2,708) Subtotal (84,384) (77,788) Remeasurements recognized in other comprehensive income (loss): Experience adjustments 15,740 (20,381) Subtotal 15,740 (20,381) Benefits paid — — Exchange effect (7,423) (28,825) Defined benefit obligation at end of year $ (563,087) (487,020) |
Summary of Movements in fair value of plan assets | Years ended December 31, 2021 2020 Beginning balance of fair value of plan assets $ 168,478 $ 151,796 Items recognized as profit or loss: Interest income on plan assets 2,845 2,612 Remeasurements recognized in other comprehensive income: Return on plan assets excluding amounts recognized as interest result 171 3,626 Exchange effect 2,395 10,444 Fair value of plan assets at end of year $ 173,889 $ 168,478 |
Schedule of defined benefit plan recognized on the consolidated balance sheets | December 31, 2021 2020 Present value of the defined benefit obligation $ (563,087) $ (487,020) Fair value of plan assets 173,889 168,478 Funded status (389,198) (318,542) Net defined benefit liabilities, noncurrent recognized on the consolidated balance sheets $ (389,198) $ (318,542) |
Summary of principal underlying actuarial assumptions | December 31, 2021 2020 Discount rates 0.70 % 0.40 % Rates of future salary increase 2.00 % 2.00 % Expected long-term rates of return on plan assets 2.00 % 1.75 % |
Schedule of Expected future benefit payments | Amount 2022 $ 16,397 2023 19,127 2024 16,056 2025 18,439 2026 17,292 Thereafter 79,836 Present value of future minimum benefit payments $ 167,147 |
STOCK-BASED COMPENSATION TO N_2
STOCK-BASED COMPENSATION TO NONEMPLOYEES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
STOCK-BASED COMPENSATION TO NONEMPLOYEES | |
Schedule of assumptions used and the calculated fair value of the preferred stock on the grant date | Initial preferred stock Incremental preferred stock Risk-free interest rate 1.37 % 1.50 % Expected equity volatility 30.0 % 30.0 % Expected revenue volatility 17.5 % 17.5 % Discount rate 18.0 % 18.0 % Expected term in years 1.9 7.8 (a) Sales professionals: 1,000 (a) Sales professionals: 1,000 (b) Revenue: (b) Cumulative revenue: Strike price NTD 250 million NTD 8.7 billion |
NONCONTROLLING INTERESTS (Table
NONCONTROLLING INTERESTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
NONCONTROLLING INTERESTS | |
Schedule of noncontrolling interests | Noncontrolling interests consisted of the following as of December 31, 2021 and 2020: % of Non- Other Impact from controlling December 31, Net Income Comprehensive Liquidation of December 31, Name of Entity Interest 2020 (Loss) Income (Loss) PA Taiwan 2021 Law Enterprise 34.05 % $ (414,957) $ (264,642) $ 3,433 $ — $ (676,166) Law Broker 34.05 % 25,177,272 5,444,673 394,258 — 31,016,203 Uniwill 50.00 % (421,035) 466,934 2,903 — 48,802 Rays 1.00 % (5,772) (689) — — (6,461) PFAL 49.00 % 423,978 (63,441) 3,519 — 364,056 MKI 49.00 % (732) (161,090) — (165,297) (327,119) PA Taiwan 49.00 % (163,013) 1,102 (3,386) 165,297 — Total $ 24,595,741 $ 5,422,847 $ 400,727 $ — $ 30,419,315 % of Non- Other controlling December 31, Contribution Net Income Comprehensive December 31, Name of Entity Interest 2019 /Acquisition (Loss) Income 2020 Law Enterprise 34.05 % $ (204,964) $ — $ (241,231) $ 31,238 $ (414,957) Law Broker 34.05 % 19,536,104 — 4,193,314 1,447,854 25,177,272 Uniwill 50.00 % — 1,427,603 (1,918,023) 69,385 (421,035) Rays 1.00 % — 1,019 (6,791) — (5,772) PFAL 49.00 % 351,278 — 71,713 987 423,978 MKI 49.00 % 283 — (1,015) — (732) PA Taiwan 49.00 % (167,531) — 4,227 291 (163,013) PTC Nanjing 49.00 % (2,644) — 1,465 1,179 - Total $ 19,512,526 $ 1,428,622 $ 2,103,659 $ 1,550,934 $ 24,595,741 |
CONTRACTS WITH CUSTOMERS (Table
CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
CONTRACTS WITH CUSTOMERS | |
Schedule of revenue recognition guidance | December 31, 2021 2020 Accounts receivable $ 26,761,678 $ 25,346,250 Contract liabilities – current — 1,119,361 |
Schedule of recognized of revenue and refund | The following table presents the amounts recognized as revenue and refund for each contract year: Contract Revenue Revenue VAT Refund Refund VAT Year Period Execution Fees Amount Amount Amount Amount First 04/15/2013 - 09/30/2014 NTD 50,000,000 NTD 27,137,958 (1) NTD 1,356,898 NTD 20,481,090 (1) NTD 1,024,054 Second 01/01/2016 - 12/31/2016 NTD 35,000,000 NTD 12,855,000 (2) NTD 642,750 NTD 20,478,333 (2) NTD 1,023,917 Third 01/01/2017 - 12/31/2017 NTD 33,000,000 NTD 12,628,201 (3) NTD 631,410 NTD 18,800,370 (3) NTD 940,019 Fourth 01/01/2018 - 12/31/2018 NTD 33,000,000 NTD 11,228,600 (4) NTD 561,429 NTD 20,199,971 (4) NTD 1,010,000 Fifth 01/01/2019 - 12/31/2019 NTD 33,000,000 NTD 9,481,371 (5) NTD 474,069 NTD 21,947,200 (5) NTD 1,097,360 Sixth 01/01/2020 - 12/31/2020 NTD 33,000,000 NTD 12,223,829 (6) NTD 611,191 NTD 19,204,743 (6) NTD 960,237 Seventh 01/01/2021 - 12/31/2021 NTD 33,000,000 NTD — (7) NTD — NTD 31,428,571 (7) NTD 1,571,429 TOTAL NTD 250,000,000 NTD 85,554,959 NTD 4,277,747 NTD 152,540,278 NTD 7,627,016 1) The revenue recognition for the first contract year is based on the annual first year premium (“AFYP”) set in Alliance Agreement, which is different from other contract years. From the second contract year to the seventh contract year, the revenue calculation is based on VONB. The Company recognized the first contract year’s revenue amount of $892,742 (NTD 27,137,958 ), net of Value-Added Tax (“VAT”) in 2017 due to uncertainty resolved after Amendment 3 went effective. Besides, on December 3, 2015 and February 23, 2016, the Company refunded the amounts of $160,573 (NTD 4,761,905 ), net of VAT, and $530,056 (NTD 15,719,185 ), net of VAT, to AIATW, respectively, due to the portion of performance sales targets not met during the first contract year based on original agreement and earlier amendments. 2) For the year ended December 31, 2016, the Company recognized the second contract year’s revenue amount of $422,883 (NTD 12,855,000 ), net of VAT, and refunded the amount of $690,537 (NTD 20,478,333 ), net of VAT, due to uncertainty resolved after Amendment 3 went effective. 3) For the year ended December 31, 2017, the Company recognized the third contract year’s revenue amount of $415,423 (NTD 12,628,201 ), net of VAT, and refund amount of $633,955 (NTD 18,800,370 ), net of VAT, for the same contract period based on the calculation of VONB and 13-month persistency. 4) For the year ended December 31, 2018, the Company recognized the fourth contract year’s revenue amount of $372,650 (NTD 11,228,600 ), net of VAT, and refund amount of $670,389 (NTD 20,199,971 ), net of VAT, for the same contract period based on the calculation of VONB and 13-month persistency. 5) For the year ended December 31, 2019, the Company recognized the fifth contract year’s revenue amount of $306,961 (NTD 9,481,371 ), net of VAT, and refund the amount of $710,545 (NTD 21,947,200 ), net of VAT, for the same contract period based on the calculation of VONB and 13-month persistency. 6) For the year ended December 31, 2020, the Company recognized the sixth contract year’s revenue amount of $415,186 (NTD 12,223,829 ), net of VAT, and refund the amount of $652,294 (NTD 19,204,743 ), net of VAT, for the same contract period based on the calculation of VONB and 13-month persistency. 7) For the year ended December 31, 2021, the Company estimated no revenue will be recognized for the seventh contract year, and refund the amount of $1,125,689 (NTD 31,428,571 ), net of VAT, for the same contract period based on the calculation of VONB and 13-month persistency. |
LEASE (Tables)
LEASE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
LEASE | |
Schedule of operating lease right-of-use assets and lease liabilities | Operating lease right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. As of December 31, 2021 and 2020, operating lease right-of-use assets and lease liabilities were as follows: December 31, 2021 2020 Right-of-use assets under operating leases $ 6,449,182 $ 6,524,555 Operating lease liabilities – current 3,059,329 3,043,056 Operating lease liabilities – noncurrent 3,298,089 3,440,343 |
Schedule of lease term and discount rate | December 31, 2021 2020 Weighted average remaining lease term Operating lease 2.31 years 2.64 years Weighted average discount rate Operating lease 2.80 % 3.15 % |
Schedule of supplemental cash flow information related to leases | Supplemental Cash Flow Information related to Leases Years Ended December 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows related to operating leases $ 4,260,159 $ 3,310,015 Amortization of right-of-use assets under operating leases $ 3,966,854 $ 3,009,101 |
Schedule of supplemental non-cash information related to leases | Years Ended December 31, 2021 2020 Lease liabilities arising from new right of use assets $ 3,891,481 $ 4,010,991 |
Schedule of operating lease right-of-use assets and lease liabilities | The minimum future lease payments as of December 31, 2021 are as follows: Amount 2022 $ 3,193,004 2023 2,222,633 2024 1,013,184 2025 128,195 2026 12,042 Thereafter — Total minimum lease payments 6,569,058 Less: Interest (211,640) Present value of future minimum lease payments $ 6,357,418 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
INCOME TAX | |
Schedule of components of provision (benefit) for income taxes | Provision (benefit) for income taxes for the years ended December 31, 2021 and 2020 consisted of: Years Ended December 31, 2021 2020 Current income provision U.S. Federal $ — $ — U.S. State — — Foreign 4,868,429 3,936,977 $ 4,868,429 $ 3,936,977 Deferred income provision (benefit) U.S. Federal $ — $ — U.S. State — — Foreign 126,222 (529,109) $ 126,222 $ (529,109) Income tax provision $ 4,994,651 $ 3,407,868 |
Schedule of components of the deferred tax assets and liabilities for income taxes | Significant components of the deferred tax assets and liabilities for income taxes as of December 31, 2021 and 2020 consisted of the following: December 31, 2021 2020 Deferred tax assets Net operating loss carryforwards $ 1,639,106 $ 2,159,332 Accrued bonus to Law Broker’s officer 465,047 386,693 Unrealized foreign currency exchange loss 240,898 255,905 Social security premium 50,828 — Pension Liabilities 88,037 73,764 Preferred stock-based compensation cost — 299,887 Others 64,222 5,266 Total $ 2,548,138 $ 3,180,847 Valuation allowance (1,639,106) (2,158,957) Net deferred tax assets - noncurrent $ 909,032 $ 1,021,890 Deferred tax liabilities - noncurrent $ — $ — |
Schedule of reconciles the Company's statutory tax rates to effective tax rates | The following table reconciles the Company’s statutory tax rates to effective tax rates for the years ended December 31, 2021 and 2020: Years Ended December 31, 2021 2020 U.S. statutory rate 21 % 21 % Tax rate difference (2) % (1) % Loss in subsidiaries 7 % 21 % Income tax on undistributed earnings 4 % 8 % Reversal of deferred tax assets not previously recognized — % 1 % Withholding tax — % 5 % Other — % (2) % Effective tax rate 30 % 53 % |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
RELATED PARTY TRANSACTIONS | |
Schedule of due to related parties | Due to related parties consisted of the following as of December 31, 2021 and 2020: December 31, 2021 2020 Due to Ms. Lu (A shareholder of Anhou) $ 41,311 $ 78,541 Others 9,220 15,506 Total $ 50,531 $ 94,047 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
FAIR VALUE MEASUREMENTS | |
Schedule of financial assets and liabilities measured at fair value on a recurring basis | The following table summarize financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2021 and 2020: December 31, 2021 Fair Value Level 1 Level 2 Level 3 Carrying Value Assets Long-term investments: REITs $ 1,261,482 — — $ 1,261,482 Total assets measured at fair value $ 1,261,482 $ — $ — $ 1,261,482 December 31, 2020 Fair Value Level 1 Level 2 Level 3 Carrying Value Assets Marketable securities: Stock mutual funds $ 1,272,573 $ — $ — $ 1,272,573 Long-term investments: Government bonds held for available-for-sale — 107,096 — 107,096 REITs 1,359,100 — — 1,359,100 Total assets measured at fair value $ 2,631,673 $ 107,096 $ — $ 2,738,769 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SEGMENT REPORTING | |
Schedule of revenue by major customers by reporting segments | The geographical distributions of the Company’s financial information for the years ended December 31, 2021 and 2020 were as follows: Years Ended December 31, Geographic Areas 2021 2020 Revenue Taiwan $ 128,550,812 $ 119,143,726 PRC 5,691,835 6,426,670 Hong Kong 35,014 315,973 Elimination adjustment (2,914,486) (1,619,297) Total revenue $ 131,363,175 $ 124,267,072 Income (loss) from operations Taiwan $ 16,922,939 $ 5,124,493 PRC (1,109,110) (145,748) Hong Kong (124,185) 129,063 Elimination adjustment 1,043,411 1,282,824 Total income from operations $ 16,733,055 $ 6,390,632 Non operating income/(expense) Taiwan $ 587,890 $ 1,637,603 PRC (86,122) (383,291) Hong Kong 3,679 (4,178) Elimination adjustment (590,883) (1,199,126) Total non-operating income/(expense) $ (85,436) $ 51,008 Net income Taiwan $ 12,464,221 $ 3,321,374 PRC (1,133,760) (516,589) Hong Kong (129,471) 146,353 Elimination adjustment 451,978 82,634 Total net income $ 11,652,968 $ 3,033,772 |
Schedule of long-lived assets | The geographical distribution of the Company’s financial information as of December 31, 2021 and 2020 were as follows: December 31, 2021 2020 Geographical Areas Long-lived assets Taiwan $ 6,784,644 $ 7,259,108 PRC 1,727,911 1,639,933 Hong Kong 1,287 1,664 Elimination adjustment (2,905) (2,905) Total long-lived assets $ 8,510,937 $ 8,897,800 Reportable assets Taiwan $ 195,981,770 $ 171,037,252 PRC 12,326,308 13,149,306 Hong Kong 756,692 915,628 Elimination adjustment (81,283,249) (77,373,957) Total reportable assets $ 127,781,521 $ 107,728,229 Capital investment (CAPEX cash flows) Taiwan $ 595,591 $ 1,522,189 PRC 79,203 87,903 Hong Kong 154 1,576 Elimination adjustment - - Total capital investments $ 674,948 $ 1,611,668 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
VARIABLE INTEREST ENTITIES | |
Schedule of variable interest entities | December 31, (Amount in USD) 2021 2020 ASSETS Current assets Cash and cash equivalents $ 1,001,974 $ 1,934,125 Accounts receivable and notes receivable 455,884 567,327 Other current assets 120,113 149,376 Total current assets 1,577,971 2,650,828 Right-of-use assets under operating leases 1,528,856 1,464,185 Property and equipment, net 199,056 175,748 Prepaid expenses - Intangible assets 9,377 22,904 Long-term investments 47,179 — Restricted cash – noncurrent 72,870 52,921 Registered capital deposits 1,100,842 1,072,361 Deferred tax assets 74,709 12,036 Other assets 83,951 63,956 TOTAL ASSETS $ 4,694,811 $ 5,514,939 LIABILITIES Current liabilities Commissions payable to sales professionals $ 210,198 $ 274,069 Other current liabilities 1,117,738 766,985 Due to related parties - Ms. Lu (the shareholder of Law Anhou) 41,311 78,541 Total current liabilities 1,369,247 1,119,595 Operating lease liabilities - noncurrent 908,971 1,004,178 TOTAL LIABILITIES $ 2,278,218 $ 2,123,773 Years ended December 31, (Amount in USD) 2021 2020 Revenue $ 5,691,835 $ 6,426,670 Net loss (1,030,082) (82,278) Net cash provided by (used in) operating activities (805,285) 288,374 Net cash used in investing activities (125,572) (87,683) Net cash used in financing activities (38,760) (306,371) |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Details) | 12 Months Ended | |
Dec. 31, 2021shares | Dec. 31, 2020shares | |
Common Stock, Shares, Issued | 30,286,199 | 29,421,736 |
Taiwan Dollar (TWD) | ||
Foreign currency average rate translation | 27.91940 | 29.44185 |
Foreign currency exchange rate, translation | 27.68785 | 28.07725 |
China yuan (RMB) | ||
Foreign currency average rate translation | 6.44995 | 6.90013 |
Foreign currency exchange rate, translation | 6.35877 | 6.52765 |
Hong Kong dollar (HKD) | ||
Foreign currency average rate translation | 7.77225 | 7.75576 |
Foreign currency exchange rate, translation | 7.79713 | 7.75249 |
United States dollar ($) | ||
Foreign currency average rate translation | 1 | 1 |
Foreign currency exchange rate, translation | 1 | 1 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of Risk (Revenue) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Concentration Risk [Line Items] | ||
Amount of Revenue | $ 131,363,175 | $ 124,267,072 |
Revenues | Customer concentration | TransGlobe Life Insurance Inc | ||
Concentration Risk [Line Items] | ||
Amount of Revenue | $ 33,579,165 | $ 29,120,466 |
Concentration risk percentage | 26.00% | 23.00% |
Revenues | Customer concentration | Taiwan Life Insurance Co., Ltd | ||
Concentration Risk [Line Items] | ||
Amount of Revenue | $ 24,626,829 | $ 25,227,920 |
Concentration risk percentage | 19.00% | 20.00% |
Revenues | Customer concentration | Farglory Life Insurance Co., Ltd. | ||
Concentration Risk [Line Items] | ||
Amount of Revenue | $ 16,676,479 | $ 15,336,439 |
Concentration risk percentage | 13.00% | 12.00% |
Revenues | Customer concentration | Total revenue | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 10.00% | 10.00% |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of Risk ( Accounts Receivable) (Details) - Credit concentration - Accounts receivable - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
TransGlobe Life Insurance Inc | ||
Concentration Risk [Line Items] | ||
Accounts receivable, net | $ 8,569,590 | $ 7,761,664 |
Percentage of accounts receivable | 32.00% | 31.00% |
Taiwan Life Insurance Co., Ltd | ||
Concentration Risk [Line Items] | ||
Accounts receivable, net | $ 4,483,343 | $ 4,557,862 |
Percentage of accounts receivable | 17.00% | 18.00% |
Farglory Life Insurance Co., Ltd. | ||
Concentration Risk [Line Items] | ||
Accounts receivable, net | $ 2,729,673 | $ 2,787,906 |
Percentage of accounts receivable | 10.00% | 11.00% |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) | Mar. 23, 2022 | May 27, 2020USD ($)shares | May 27, 2020TWD ($)shares | Dec. 31, 2021USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2021TWD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021HKD ($) | Nov. 30, 2020 |
Disclosure of Summary Of Significant Accounting Policies | ||||||||||
Issuance of common stock | $ 1,106,513 | |||||||||
Regulatory requirements minimum amount | 108,351 | $ 106,848 | $ 3,000,000 | |||||||
Cost or Amortized Cost | 106,906 | |||||||||
Cash, uninsured amount | 250,000 | |||||||||
Increase in registered capital | $ 8,000,000 | ¥ 50,000,000 | ||||||||
Tax benefit percentage expected to be realized upon settlement | 50.00% | 50.00% | 50.00% | 50.00% | ||||||
Marketing and Advertising Expense | $ 203,754 | 237,418 | ||||||||
Revenue | 131,363,175 | 124,267,072 | ||||||||
Impairment of Long-Lived Assets Held-for-use | 0 | 0 | ||||||||
Compensation costs for awards granted to nonemployees | 258,200 | $ 200,558 | ||||||||
Loss from settlement of contingency | $ 1,106,513 | |||||||||
Notice Period Terminate Agreement | 30 days | |||||||||
Revenue recognize expenses settled period | 1 year | 1 year | 1 year | 1 year | ||||||
Aggregate funding provided by WFOE | ¥ | ¥ 40,000,000 | |||||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | ||||||||||
Disclosure of Summary Of Significant Accounting Policies | ||||||||||
Revenue recognize expect time period | 1 year | 1 year | 1 year | 1 year | ||||||
Property And Casualty Insurance Products | ||||||||||
Disclosure of Summary Of Significant Accounting Policies | ||||||||||
Revenue from products as a percentage of total revenue | 7.20% | 7.20% | 5.40% | |||||||
Taiwan | ||||||||||
Disclosure of Summary Of Significant Accounting Policies | ||||||||||
Cash, FDIC insured amount | $ 3,000,000 | |||||||||
Revenue | $ 7,400,000 | $ 7,300,000 | ||||||||
CHINA | ||||||||||
Disclosure of Summary Of Significant Accounting Policies | ||||||||||
Cash, FDIC insured amount | ¥ | ¥ 500,000 | |||||||||
HONG KONG | ||||||||||
Disclosure of Summary Of Significant Accounting Policies | ||||||||||
Cash, FDIC insured amount | $ 500,000 | |||||||||
Credit concentration | ||||||||||
Disclosure of Summary Of Significant Accounting Policies | ||||||||||
Cash, FDIC insured amount | 2,712,000 | 2,229,000 | ||||||||
Cash, uninsured amount | $ 83,446,000 | $ 63,222,000 | ||||||||
Maximum | ||||||||||
Disclosure of Summary Of Significant Accounting Policies | ||||||||||
Property, Plant and Equipment, Useful Life | 10 years | 10 years | ||||||||
Minimum | ||||||||||
Disclosure of Summary Of Significant Accounting Policies | ||||||||||
Property, Plant and Equipment, Useful Life | 1 year | 1 year | ||||||||
Rays Technology Corporation ("Rays") | AHFL | ||||||||||
Disclosure of Summary Of Significant Accounting Policies | ||||||||||
Ownership percentage | 90.00% | 90.00% | 99.00% | 90.00% | ||||||
Consideration for insurance brokerage licenses | $ 9,177 | $ 270,000 | ||||||||
Number of shares acquired | shares | 27,000 | 27,000 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of the income and share data used in the basic and diluted EPS computations (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Allocation of net income attributable to the Company. | $ 6,230,121 | $ 930,113 |
Weighted Average Number of Shares Outstanding, Basic | 29,604,102 | 29,421,736 |
Earnings Per Share, Basic | $ 0.204 | $ 0.031 |
Earnings Per Share, Diluted | $ 0.204 | $ 0.031 |
Common Stock | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Allocation of net income attributable to the Company. | $ 6,026,550 | $ 899,539 |
Weighted Average Number of Shares Outstanding, Basic | 29,604,102 | 29,421,736 |
Earnings Per Share, Basic | $ 0.204 | $ 0.031 |
Earnings Per Share, Diluted | $ 0.204 | $ 0.031 |
Preferred Stock | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Allocation of net income attributable to the Company. | $ 203,571 | $ 30,574 |
Weighted Average Number of Shares Outstanding, Basic | 1,000,000 | 1,000,000 |
Earnings Per Share, Basic | $ 0.204 | $ 0.031 |
Earnings Per Share, Diluted | $ 0.204 | $ 0.031 |
CASH, CASH EQUIVALENTS AND RE_3
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||
Cash on hand and in banks | $ 18,234,350 | $ 9,063,338 | |
Total cash and cash equivalents | 18,234,350 | 9,063,338 | |
Restricted cash - noncurrent | 88,282 | 66,490 | |
Total cash, cash equivalents and restricted cash shown in the statements of cash flows | $ 18,322,632 | $ 9,129,828 | $ 12,658,500 |
TIME DEPOSITS (Details)
TIME DEPOSITS (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
TIME DEPOSITS | ||
Total time deposits | $ 71,161,391 | $ 53,339,508 |
Less: time deposits - original maturities less than three months under cash and cash equivalents | (6,862,215) | |
Time deposits - original maturities over three months but less than one year | $ 64,299,176 | $ 53,339,508 |
TIME DEPOSITS - Additional Info
TIME DEPOSITS - Additional Information (Details) $ in Millions | Dec. 31, 2021USD ($) | Dec. 31, 2021TWD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020TWD ($) |
Restricted Cash | $ 23,775,499 | $ 15,894,545 | ||
Restricted time deposits | 23,811,616 | $ 659.3 | 15,930,161 | $ 447.3 |
Time deposits pledged as collateral | $ 36,117 | $ 35,616,000 | $ 1 | |
Minimum | ||||
Investment Interest Rate | 0.05% | 0.05% | 0.05% | 0.05% |
Maximum | ||||
Investment Interest Rate | 2.79% | 2.79% | 2.60% | 2.60% |
MARKETABLE SECURITIES (Details)
MARKETABLE SECURITIES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Marketable Securities, Gain (Loss) [Abstract] | ||
Net unrealized gains on marketable securities held | $ 124,825 | |
Net realized gains for marketable securities sold | $ 75,950 | 50,401 |
Total net gains recognized in other income | 75,950 | 175,226 |
Marketable securities, consisted of stock mutual funds, | 0 | 1,272,573 |
Payments to Acquire Marketable Securities | $ 1,727,668 | $ 961,416 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 5,951,399 | $ 5,333,699 |
Less: accumulated depreciation | (3,889,644) | (2,960,454) |
Total property, plant and equipment, net | 2,061,755 | 2,373,245 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 2,152,239 | 2,002,634 |
Office Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 97,917 | 102,557 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 2,415,907 | 2,194,531 |
Transportation equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 238,202 | 233,731 |
Other equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 1,047,134 | $ 800,246 |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Member] | ||
Depreciation | $ 1,000,655 | $ 730,263 |
INTANGIBLE ASSETS, NET - Summar
INTANGIBLE ASSETS, NET - Summary of Company's intangible assets (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
INTANGIBLE ASSETS, NET | ||
Software | $ 2,413,843 | $ 2,264,482 |
Less: accumulated amortization | (2,080,725) | (1,882,735) |
Total | $ 333,118 | $ 381,747 |
INTANGIBLE ASSETS, NET - Summ_2
INTANGIBLE ASSETS, NET - Summary of Estimated future assets amortization (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
INTANGIBLE ASSETS, NET | ||
2022 | $ 136,684 | |
2023 | 98,177 | |
2024 | 57,017 | |
2025 | 34,083 | |
2026 | 7,157 | |
Thereafter | 0 | |
Total | $ 333,118 | $ 381,747 |
INTANGIBLE ASSETS, NET - Additi
INTANGIBLE ASSETS, NET - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Computer Software, Intangible Asset [Member] | ||
Amortization expense | $ 170,088 | $ 257,426 |
LONG-TERM INVESTMENTS - Summary
LONG-TERM INVESTMENTS - Summary of Company's long-term investments (Details) $ in Millions | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Aug. 14, 2020TWD ($) | Aug. 13, 2020TWD ($) |
LONG-TERM INVESTMENTS. | ||||
Equity investments under cost method | $ 1,435,330 | $ 1,368,899 | $ 60 | $ 45 |
Government bonds held for available-for-sale | 0 | 107,096 | ||
REITs | 1,261,482 | 1,359,100 | ||
Total long-term investments | $ 2,696,812 | $ 2,835,095 |
LONG-TERM INVESTMENTS - Summa_2
LONG-TERM INVESTMENTS - Summary of change in carrying value of Equity investments accounted for the cost method due to foreign currency translation (Details) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2021USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2020USD ($) | Aug. 14, 2020TWD ($) | Aug. 13, 2020TWD ($) | Feb. 13, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Long-Term Investment In Equity Amount | $ 1,435,330 | $ 1,368,899 | $ 60 | $ 45 | ||
Genius Insurance Broker Co Ltd | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investment Ownership Percentage | 11.73% | 11.73% | 11.73% | 11.73% | 15.64% | 15.64% |
Long-Term Investment In Equity Amount | $ 1,388,151 | $ 1,368,899 | ||||
Investee Name | Genius Insurance Broker Co., Ltd (“GIB”) | |||||
Hainan Haoguan Yucheng Technology Service LLP ("HAINAN") | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investment Ownership Percentage | 9.99% | 9.99% | ||||
Long-Term Investment In Equity Amount | $ 47,179 | ¥ 300,000 | ||||
Investee Name | Hainan Haoguan Yucheng Technology Service LLP (“HAINAN”) |
LONG-TERM INVESTMENTS - Summa_3
LONG-TERM INVESTMENTS - Summary of Government bonds fair value held for available-for-sale for unrealized gains and losses (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Long Term Investment [Line Items] | |
Amortized Cost | $ 106,906 |
Gross unrealized gains | 190 |
Total Fair Value | 107,096 |
US Treasury and Government [Member] | |
Long Term Investment [Line Items] | |
Amortized Cost | 106,906 |
Gross unrealized gains | 190 |
Gross unrealized losses | 0 |
Total Fair Value | $ 107,096 |
LONG-TERM INVESTMENTS - Additio
LONG-TERM INVESTMENTS - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021TWD ($) | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | |||
Dividend income | $ 252,154 | $ 325,197 | |
Regulatory requirements minimum amount | 108,351 | 106,848 | $ 3,000,000 |
Real Estate Investment Property, Net | 1,261,482 | 1,359,100 | |
Unrealized Gain (Loss) on Investments | 81,022 | 50,389 | |
Government bonds | |||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | |||
Available-for-sale Securities | 108,351 | 107,096 | |
Other Assets. | |||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | |||
Available-for-sale Securities | $ 108,351 | $ 107,096 |
OTHER ASSETS - Summary of Compa
OTHER ASSETS - Summary of Company's other assets (Details) | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | |
Trust account | $ 2,477,621 | $ 1,962,443 | ||
Security deposits/Rent deposit | 1,095,665 | 806,606 | ||
Register capital deposit | 1,100,842 | 1,072,361 | ||
Other | 66,512 | 170,960 | ||
Total | 4,740,640 | 4,012,370 | ||
Capital deposit | $ 1,100,842 | ¥ 7,000,000 | $ 1,072,361 | ¥ 7,000,000 |
China Insurance Regulatory Commission | ||||
Percentage Of Maximum Capital Deposit Executive Order | 10.00% | |||
Percentage Of Maximum Capital Deposit | 5.00% |
COMMISSIONS PAYABLE TO SALES _3
COMMISSIONS PAYABLE TO SALES PROFESSIONALS (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Total commissions payable to sales professionals | $ 14,003,541 | $ 12,088,291 |
Taiwan | ||
Total commissions payable to sales professionals | 13,793,343 | 11,814,222 |
PRC | ||
Total commissions payable to sales professionals | $ 210,198 | $ 274,069 |
SHORT-TERM LOANS (Details)
SHORT-TERM LOANS (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021TWD ($) | |
Short-term Debt [Line Items] | |||
Line of Credit, Current | $ 18,835,932 | $ 14,159,108 | |
Collateral value | 23,775,499 | 15,894,545 | |
Total short term loans | 18,835,932 | 14,159,108 | |
Credit facility, CUB | |||
Short-term Debt [Line Items] | |||
Line of Credit, Current | 9,011,172 | 6,019,108 | |
Collateral value | 9,047,289 | 6,019,108 | |
Line of Credit Facility, Maximum Borrowing Capacity | 9,000,000 | $ 250 | |
Credit facility, O-Bank | |||
Short-term Debt [Line Items] | |||
Line of Credit, Current | 4,000,000 | 4,000,000 | |
Collateral value | 4,984,135 | 4,915,011 | |
Credit facility, FEIB [Member] | |||
Short-term Debt [Line Items] | |||
Line of Credit, Current | 1,850,000 | 840,000 | |
Collateral value | 2,961,588 | 1,132,590 | |
Credit Facility, TSIB | |||
Short-term Debt [Line Items] | |||
Line of Credit, Current | 2,200,000 | ||
Collateral value | 3,065,801 | ||
Line of Credit Facility, Maximum Borrowing Capacity | 6,000,000 | ||
Credit Facility, TSIB 2 | |||
Short-term Debt [Line Items] | |||
Line of Credit, Current | 234,760 | ||
Collateral value | 234,760 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 7,200,000 | $ 200 | |
LIBOR | Credit Facility E Sun Bank | |||
Short-term Debt [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | 0.40% | ||
Adjustable rates for loans | Credit facility, CUB | |||
Short-term Debt [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | 0.41% | ||
1 month TAIBOR rate | Credit facility, CUB | |||
Short-term Debt [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | 0.80% | ||
Cost of funds plus a margin | Credit Facility, TSIB | |||
Short-term Debt [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | 0.70% | ||
Cost of funds plus a margin | Credit Facility, TSIB 2 | |||
Short-term Debt [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | 0.625% | ||
O Bank [Member] | |||
Short-term Debt [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 4,000,000 | ||
Debt Instrument, Description of Variable Rate Basis | 0.50% | ||
CTBC Bank [Member] | |||
Short-term Debt [Line Items] | |||
Line of Credit, Current | 1,200,000 | ||
Collateral value | 1,384,833 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,500,000 | ||
Eastern International Bank [Member] | |||
Short-term Debt [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,500,000 | ||
Eastern International Bank [Member] | LIBOR | |||
Short-term Debt [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | 0.50% | ||
KGI Commercial Bank Co Ltd [Member] | |||
Short-term Debt [Line Items] | |||
Line of Credit, Current | $ 1,540,000 | 2,100,000 | |
Collateral value | 2,481,926 | 2,443,003 | |
Line of Credit Facility, Maximum Borrowing Capacity | 3,100,000 | ||
Interest Expense, Short-term Borrowings | $ 181,911 | $ 200,900 | |
KGI Commercial Bank Co Ltd [Member] | LIBOR | |||
Short-term Debt [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | 0.90% | ||
E Sun Bank [Member] | |||
Short-term Debt [Line Items] | |||
Collateral value | $ 1,000,000 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,000,000 |
OTHER CURRENT LIABILITIES (Deta
OTHER CURRENT LIABILITIES (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
OTHER CURRENT LIABILITIES | ||
Accrued bonus | $ 6,645,496 | $ 7,854,488 |
Payroll payable and other benefits | 2,188,074 | 1,767,417 |
Accrued business tax and tax withholdings | 1,903,039 | 1,643,082 |
Accrued tax penalties | 170,016 | |
Other accrued expenses | 3,260,994 | 2,156,031 |
Total other current liabilities | $ 13,997,603 | $ 13,591,034 |
OTHER CURRENT LIABILITIES - Add
OTHER CURRENT LIABILITIES - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Accrued bonus amount | $ 4,059,901 | $ 5,948,157 |
Accrued bonus current | 6,645,496 | 7,854,488 |
Accrued bonus non current | 0 | 237,440 |
Compensation Plan [Member] | ||
Debt Instrument [Line Items] | ||
Bonus expense | 752,413 | 919,053 |
Accrued bonus current | $ 2,585,595 | $ 1,906,331 |
OTHER LIABILITIES - Other noncu
OTHER LIABILITIES - Other noncurrent liabilities (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
OTHER LIABILITIES | ||
Due to related parties - Ms. Lu (the shareholder of Law Anhou) | $ 541,754 | $ 534,240 |
Accrued bonus - noncurrent (Note 10) | 0 | 237,440 |
Total other liabilities | $ 541,754 | $ 771,680 |
OTHER LIABILITIES - Additional
OTHER LIABILITIES - Additional Information (Details) $ in Millions | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Mar. 27, 2019TWD ($) |
OTHER LIABILITIES | |||
Amount due to previous shareholders to AHFL | $ 541,754 | $ 534,240 | $ 15 |
POST-EMPLOYMENT BENEFITS - Summ
POST-EMPLOYMENT BENEFITS - Summary of Movements in present value of defined benefit obligation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan, Roll Forwards [Abstract] | ||
Defined benefit obligation at beginning of year | $ (487,020) | $ (360,026) |
Items recognized as profit or loss: | ||
Service cost | (82,452) | (75,080) |
Interest cost | (1,932) | (2,708) |
Subtotal | (84,384) | (77,788) |
Remeasurements recognized in other comprehensive income (loss): | ||
Experience adjustments | 15,740 | (20,381) |
Subtotal | 15,740 | (20,381) |
Exchange effect | (7,423) | (28,825) |
Defined benefit obligation at end of year | $ (563,087) | $ (487,020) |
POST-EMPLOYMENT BENEFITS - Su_2
POST-EMPLOYMENT BENEFITS - Summary of Movements in fair value of plan assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance of fair value of plan assets | $ 168,478 | $ 151,796 |
Items recognized as profit or loss: | ||
Interest income on plan assets | 2,845 | 2,612 |
Remeasurements recognized in other comprehensive income: | ||
Return on plan assets excluding amounts recognized as interest result | 171 | 3,626 |
Exchange effect | 2,395 | 10,444 |
Fair value of plan assets at end of year | $ 173,889 | $ 168,478 |
POST-EMPLOYMENT BENEFITS - Sche
POST-EMPLOYMENT BENEFITS - Schedule of defined benefit plan recognized on the consolidated balance sheets (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
POST-EMPLOYMENT BENEFITS | |||
Present value of the defined benefit obligation | $ (563,087) | $ (487,020) | $ (360,026) |
Fair value of plan assets | 173,889 | 168,478 | $ 151,796 |
Funded status | (389,198) | (318,542) | |
Net defined benefit liabilities, noncurrent recognized on the consolidated balance sheets | $ (389,198) | $ (318,542) |
POST-EMPLOYMENT BENEFITS - Su_3
POST-EMPLOYMENT BENEFITS - Summary of principal underlying actuarial assumptions (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
POST-EMPLOYMENT BENEFITS | ||
Discount rate | 0.70% | 0.40% |
Rate of future salary increase | 2.00% | 2.00% |
Expected long-term rates of return on plan assets | 2.00% | 1.75% |
POST-EMPLOYMENT BENEFITS - Sc_2
POST-EMPLOYMENT BENEFITS - Schedule of Expected future benefit payments (Details) | Dec. 31, 2021USD ($) |
POST-EMPLOYMENT BENEFITS | |
2022 | $ 16,397 |
2023 | 19,127 |
2024 | 16,056 |
2025 | 18,439 |
2026 | 17,292 |
Thereafter | 79,836 |
Present value of future minimum benefit payments | $ 167,147 |
POST-EMPLOYMENT BENEFITS (Detai
POST-EMPLOYMENT BENEFITS (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($)item | Dec. 31, 2020USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||
Maximum number of units awarded | item | 45 | |
Employer contribution, as a percentage of employees Total salaries and wages | 2.00% | |
Total Pension expense | $ | $ 81,440 | $ 73,421 |
Actual return on Plan assets | $ | 3,016 | $ 6,238 |
Pension fund contribution by the company | $ | $ 80,783 | |
Weighted-average durations of the defined benefit obligation | 15 years | 15 years |
First 15 years of service | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Number of units awarded per year | item | 2 | |
After completion of 15th year | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Number of units awarded per year | item | 1 |
STOCK-BASED COMPENSATION TO N_3
STOCK-BASED COMPENSATION TO NONEMPLOYEES (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2021TWD ($) | Dec. 31, 2020USD ($) | |
Weighted average assumptions | |||
Revenue | $ 131,363,175 | $ 124,267,072 | |
Initial preferred stock | |||
Weighted average assumptions | |||
Risk-free interest rate | 1.37% | 1.37% | |
Expected equity volatility | 30.00% | 30.00% | |
Expected revenue volatility | 17.5 | 17.5 | |
Discount rate | 18.00% | 18.00% | |
Expected term in years | 1 year 10 months 24 days | 1 year 10 months 24 days | |
Strike price | $ / shares | $ 1,000 | ||
Revenue | $ 250 | ||
Incremental preferred stock | |||
Weighted average assumptions | |||
Risk-free interest rate | 1.50% | 1.50% | |
Expected equity volatility | 30.00% | 30.00% | |
Expected revenue volatility | 17.5 | 17.5 | |
Discount rate | 18.00% | 18.00% | |
Expected term in years | 7 years 9 months 18 days | 7 years 9 months 18 days | |
Strike price | $ / shares | $ 1,000 | ||
Revenue | $ 8,700 |
STOCK-BASED COMPENSATION TO N_4
STOCK-BASED COMPENSATION TO NONEMPLOYEES Additional (Details) | Mar. 03, 2021USD ($)shares | Mar. 03, 2021TWD ($) | Mar. 02, 2021TWD ($) | Feb. 10, 2020USD ($)shares | Nov. 15, 2019USD ($) | Nov. 15, 2019TWD ($)USD ($)shares | Dec. 31, 2021USD ($)shares | Dec. 31, 2021TWD ($) | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($) | Dec. 31, 2019TWD ($) | Dec. 31, 2021TWD ($)shares | Mar. 02, 2021USD ($) | Mar. 02, 2021TWD ($) | Dec. 31, 2020TWD ($)shares | Feb. 10, 2020TWD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Preferred stock | shares | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | ||||||||||||
Preferred Stock, Voting Rights | the voting rights owned by the Company and the Labor Parties should be 51:49 due to 1,000 voting right per preferred stock | the voting rights owned by the Company and the Labor Parties should be 51:49 due to 1,000 voting right per preferred stock | ||||||||||||||
Preferred stock value | $ 10 | $ 10 | ||||||||||||||
compensation cost | 0 | 1,427,603 | ||||||||||||||
Revenue | 131,363,175 | 124,267,072 | ||||||||||||||
Incremental preferred stock | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Aggregate amount of increase in paid-in capital | $ 16 | $ 437 | ||||||||||||||
Preferred stock | shares | 28,823 | |||||||||||||||
compensation cost | $ 447,137 | |||||||||||||||
Revenue | $ 8,700,000,000 | |||||||||||||||
Uniwill | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Aggregate amount of increase in paid-in capital | $ 400,000,000 | $ 400,000,000 | ||||||||||||||
Preferred stock | shares | 9,608 | 9,608 | ||||||||||||||
Percentage of right to receive a distribution of the net-income of Uniwill | 50.00% | 50.00% | ||||||||||||||
Limit to right to convert such preferred stock into common stock | $ 250,000,000 | $ 8,700,000,000 | $ 8,700,000,000 | |||||||||||||
Preferred stock value | $ 102 | $ 3,070 | ||||||||||||||
compensation cost | $ 980,466 | |||||||||||||||
AIlife | Uniwill | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Aggregate amount of increase in paid-in capital | $ 400,000,000 | $ 100,000,000 | $ 13,300,000 | 400,000,000 | $ 3,300,000 | $ 100,000,000 | ||||||||||
Amount of additional paid-in capital | $ 3,800,000 | $ 500,000 | $ 115,000,000 | $ 15,000,000 | ||||||||||||
Labor Parties | Uniwill | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Aggregate amount of increase in paid-in capital | $ 100,000,000 | |||||||||||||||
Preferred stock | shares | 9,608 | |||||||||||||||
Maximum registered number of insurance business professional sales | 200 | |||||||||||||||
Business performance | $ 5,000,000 | |||||||||||||||
Labor Parties and AIlife | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Final paid-up capital | $ 400,000,000 | |||||||||||||||
Period for fulfilment | 8 years | 8 years |
PREFERRED STOCK AND COMMON ST_2
PREFERRED STOCK AND COMMON STOCK - Additional Information (Details) | Aug. 13, 2021shares | Dec. 31, 2021USD ($)Voteshares | Dec. 31, 2020USD ($)shares |
Class of Stock [Line Items] | |||
Preferred Stock, shares outstanding | 1,000,000 | 1,000,000 | |
Preferred Stock, shares issued | 1,000,000 | 1,000,000 | |
Number of votes per Share | Vote | 10 | ||
Common stock, shares outstanding | 30,286,199 | 29,421,736 | |
Common Stock, Value, Issued | $ | $ 303 | $ 294 | |
Mr. Chwan Hau Li | |||
Class of Stock [Line Items] | |||
Percentage of voting interests acquired | 15.64% | ||
Issuable number of shares issued | 864,463 | ||
Mr. Chwan Hau Li | Other expenses | |||
Class of Stock [Line Items] | |||
Loss for issuing common stocks | $ | $ 1,106,513 | ||
Series A Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred Stock, shares outstanding | 1,000,000 | 1,000,000 | |
Preferred Stock, shares issued | 1,000,000 | 1,000,000 |
STATUTORY RESERVES - Additional
STATUTORY RESERVES - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statutory Common reserve, contribution percentage of net income | 10.00% | |
Statutory Common reserve, contribution percentage on net profit | 10.00% | |
Statutory common reserve limitation minimum percentage on registered capital | 25.00% | |
Statutory common reserve limitation, maximum percentage on registered capital | 50.00% | |
Statutory reserves | $ 11,101,064 | $ 9,463,903 |
Variable Interest Entity, Primary Beneficiary [Member] | PRC | ||
Restricted Investments, at Fair Value | $ 12,182,826 | $ 11,798,471 |
NONCONTROLLING INTERESTS (Detai
NONCONTROLLING INTERESTS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule Of Noncontrolling Interests [Line Items] | |||
Contribution /Acquisition | $ 1,428,622 | ||
Net Income (Loss) | $ 5,422,847 | 2,103,659 | |
Other Comprehensive Income (Loss) | 400,727 | 1,550,934 | |
Noncontrolling Interests | $ 30,419,315 | $ 24,595,741 | $ 19,512,526 |
Law Enterprise | |||
Schedule Of Noncontrolling Interests [Line Items] | |||
% of Non-controlling Interests | 34.05% | 34.05% | |
Net Income (Loss) | $ (264,642) | $ (241,231) | |
Other Comprehensive Income (Loss) | 3,433 | 31,238 | |
Noncontrolling Interests | $ (676,166) | $ (414,957) | (204,964) |
Law Broker | |||
Schedule Of Noncontrolling Interests [Line Items] | |||
% of Non-controlling Interests | 34.05% | 34.05% | |
Net Income (Loss) | $ 5,444,673 | $ 4,193,314 | |
Other Comprehensive Income (Loss) | 394,258 | 1,447,854 | |
Noncontrolling Interests | $ 31,016,203 | $ 25,177,272 | 19,536,104 |
Uniwill | |||
Schedule Of Noncontrolling Interests [Line Items] | |||
% of Non-controlling Interests | 50.00% | 50.00% | |
Contribution /Acquisition | $ 1,427,603 | ||
Net Income (Loss) | $ 466,934 | (1,918,023) | |
Other Comprehensive Income (Loss) | 2,903 | 69,385 | |
Noncontrolling Interests | $ 48,802 | $ (421,035) | |
Rays | |||
Schedule Of Noncontrolling Interests [Line Items] | |||
% of Non-controlling Interests | 1.00% | 1.00% | |
Contribution /Acquisition | $ 1,019 | ||
Net Income (Loss) | $ (689) | (6,791) | |
Other Comprehensive Income (Loss) | 0 | ||
Noncontrolling Interests | $ (6,461) | $ (5,772) | |
PFAL | |||
Schedule Of Noncontrolling Interests [Line Items] | |||
% of Non-controlling Interests | 49.00% | 49.00% | |
Net Income (Loss) | $ (63,441) | $ 71,713 | |
Other Comprehensive Income (Loss) | 3,519 | 987 | |
Noncontrolling Interests | $ 364,056 | $ 423,978 | 351,278 |
MKI | |||
Schedule Of Noncontrolling Interests [Line Items] | |||
% of Non-controlling Interests | 49.00% | 49.00% | |
Net Income (Loss) | $ (161,090) | $ (1,015) | |
Other Comprehensive Income (Loss) | 0 | ||
Impact from Liquidation of PA Taiwan | (165,297) | ||
Noncontrolling Interests | $ (327,119) | $ (732) | 283 |
PA Taiwan | |||
Schedule Of Noncontrolling Interests [Line Items] | |||
% of Non-controlling Interests | 49.00% | 49.00% | |
Net Income (Loss) | $ 1,102 | $ 4,227 | |
Other Comprehensive Income (Loss) | (3,386) | 291 | |
Impact from Liquidation of PA Taiwan | $ 165,297 | ||
Noncontrolling Interests | $ (163,013) | (167,531) | |
PTC Nanjing | |||
Schedule Of Noncontrolling Interests [Line Items] | |||
% of Non-controlling Interests | 49.00% | ||
Net Income (Loss) | $ 1,465 | ||
Other Comprehensive Income (Loss) | $ 1,179 | ||
Noncontrolling Interests | $ (2,644) |
CONTRACTS WITH CUSTOMERS - Cont
CONTRACTS WITH CUSTOMERS - Contract balance (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
CONTRACTS WITH CUSTOMERS | ||
Accounts receivable and notes receivable | $ 26,761,678 | $ 25,346,250 |
Contract liabilities - current | $ 0 | $ 1,119,361 |
CONTRACTS WITH CUSTOMERS - Reve
CONTRACTS WITH CUSTOMERS - Revenue and refund for each contract (Details) | Jun. 14, 2017TWD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2021TWD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020TWD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019TWD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018TWD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017TWD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016TWD ($) | Dec. 31, 2021TWD ($) | Dec. 31, 2020TWD ($) | Dec. 31, 2019TWD ($) | Dec. 31, 2018TWD ($) | Dec. 31, 2017TWD ($) | Dec. 31, 2016TWD ($) | Feb. 23, 2016USD ($) | Feb. 23, 2016TWD ($) | Dec. 03, 2015USD ($) | Dec. 03, 2015TWD ($) | Jun. 10, 2013USD ($) | Jun. 10, 2013TWD ($) |
Basic Business Promotion Fees | $ 33,000,000 | ||||||||||||||||||||||||
Revenue Amount | $ 0 | $ 415,186 | $ 12,223,829 | ||||||||||||||||||||||
Contract liabilities - noncurrent | $ 0 | 0 | |||||||||||||||||||||||
Strategic Alliance Agreement [Member] | |||||||||||||||||||||||||
Execution Fees | $ 250,000,000 | ||||||||||||||||||||||||
Revenue Amount | $ 85,554,959 | ||||||||||||||||||||||||
Revenue VAT Amount | $ 4,277,747 | ||||||||||||||||||||||||
Refund Amount | 152,540,278 | ||||||||||||||||||||||||
Refund VAT Amount | 7,627,016 | ||||||||||||||||||||||||
Strategic Alliance Agreement [Member] | |||||||||||||||||||||||||
Execution Fees | $ 8,326,700 | $ 250,000,000 | |||||||||||||||||||||||
Refund Amount | $ 11,904,762 | ||||||||||||||||||||||||
First Year [Member] | |||||||||||||||||||||||||
Basic Business Promotion Fees | 50,000,000 | ||||||||||||||||||||||||
First Year [Member] | Strategic Alliance Agreement [Member] | |||||||||||||||||||||||||
Contract Initiation Date | Apr. 15, 2013 | Apr. 15, 2013 | |||||||||||||||||||||||
Contract Maturity Date | Sep. 30, 2014 | Sep. 30, 2014 | |||||||||||||||||||||||
Execution Fees | 50,000,000 | ||||||||||||||||||||||||
Revenue Amount | $ 27,137,958 | ||||||||||||||||||||||||
Revenue VAT Amount | 1,356,898 | ||||||||||||||||||||||||
Refund Amount | 20,481,090 | ||||||||||||||||||||||||
Refund VAT Amount | 1,024,054 | ||||||||||||||||||||||||
First Year [Member] | Strategic Alliance Agreement [Member] | |||||||||||||||||||||||||
Revenue Amount | $ 892,742 | $ 27,137,958 | |||||||||||||||||||||||
Second Year [Member] | |||||||||||||||||||||||||
Basic Business Promotion Fees | $ 35,000,000 | ||||||||||||||||||||||||
Second Year [Member] | Strategic Alliance Agreement [Member] | |||||||||||||||||||||||||
Contract Initiation Date | Jan. 1, 2016 | Jan. 1, 2016 | |||||||||||||||||||||||
Contract Maturity Date | Dec. 31, 2016 | Dec. 31, 2016 | |||||||||||||||||||||||
Execution Fees | 35,000,000 | ||||||||||||||||||||||||
Revenue Amount | $ 12,855,000 | ||||||||||||||||||||||||
Revenue VAT Amount | $ 642,750 | ||||||||||||||||||||||||
Refund Amount | 20,478,333 | ||||||||||||||||||||||||
Refund VAT Amount | 1,023,917 | ||||||||||||||||||||||||
Second Year [Member] | Strategic Alliance Agreement [Member] | |||||||||||||||||||||||||
Revenue Amount | $ 422,883 | $ 12,855,000 | |||||||||||||||||||||||
Refund Amount | $ 690,537 | $ 20,478,333 | |||||||||||||||||||||||
Third Year [Member] | Strategic Alliance Agreement [Member] | |||||||||||||||||||||||||
Contract Initiation Date | Jan. 1, 2017 | Jan. 1, 2017 | |||||||||||||||||||||||
Contract Maturity Date | Dec. 31, 2017 | Dec. 31, 2017 | |||||||||||||||||||||||
Execution Fees | 33,000,000 | ||||||||||||||||||||||||
Revenue Amount | $ 12,628,201 | ||||||||||||||||||||||||
Revenue VAT Amount | $ 631,410 | ||||||||||||||||||||||||
Refund Amount | 18,800,370 | ||||||||||||||||||||||||
Refund VAT Amount | 940,019 | ||||||||||||||||||||||||
Third Year [Member] | Strategic Alliance Agreement [Member] | |||||||||||||||||||||||||
Revenue Amount | $ 415,423 | $ 12,628,201 | |||||||||||||||||||||||
Refund Amount | $ 633,955 | $ 18,800,370 | |||||||||||||||||||||||
Fourth Year [Member] | Strategic Alliance Agreement [Member] | |||||||||||||||||||||||||
Contract Initiation Date | Jan. 1, 2018 | Jan. 1, 2018 | |||||||||||||||||||||||
Contract Maturity Date | Dec. 31, 2018 | Dec. 31, 2018 | |||||||||||||||||||||||
Execution Fees | 33,000,000 | ||||||||||||||||||||||||
Revenue Amount | $ 11,228,600 | ||||||||||||||||||||||||
Revenue VAT Amount | $ 561,429 | ||||||||||||||||||||||||
Refund Amount | 20,199,971 | ||||||||||||||||||||||||
Refund VAT Amount | 1,010,000 | ||||||||||||||||||||||||
Fourth Year [Member] | Strategic Alliance Agreement [Member] | |||||||||||||||||||||||||
Revenue Amount | $ 372,650 | $ 11,228,600 | |||||||||||||||||||||||
Refund Amount | $ 670,389 | $ 20,199,971 | |||||||||||||||||||||||
Fifth Year [Member] | Strategic Alliance Agreement [Member] | |||||||||||||||||||||||||
Contract Initiation Date | Jan. 1, 2019 | Jan. 1, 2019 | |||||||||||||||||||||||
Contract Maturity Date | Dec. 31, 2019 | Dec. 31, 2019 | |||||||||||||||||||||||
Execution Fees | 33,000,000 | ||||||||||||||||||||||||
Revenue Amount | $ 9,481,371 | ||||||||||||||||||||||||
Revenue VAT Amount | $ 474,069 | ||||||||||||||||||||||||
Refund Amount | 21,947,200 | ||||||||||||||||||||||||
Refund VAT Amount | 1,097,360 | ||||||||||||||||||||||||
Fifth Year [Member] | Strategic Alliance Agreement [Member] | |||||||||||||||||||||||||
Revenue Amount | $ 306,961 | $ 9,481,371 | |||||||||||||||||||||||
Refund Amount | $ 710,545 | $ 21,947,200 | |||||||||||||||||||||||
Sixth Year [Member] | Strategic Alliance Agreement [Member] | |||||||||||||||||||||||||
Contract Initiation Date | Jan. 1, 2020 | Jan. 1, 2020 | |||||||||||||||||||||||
Contract Maturity Date | Dec. 31, 2020 | Dec. 31, 2020 | |||||||||||||||||||||||
Execution Fees | 33,000,000 | ||||||||||||||||||||||||
Revenue Amount | $ 12,223,829 | ||||||||||||||||||||||||
Revenue VAT Amount | $ 611,191 | ||||||||||||||||||||||||
Refund Amount | 19,204,743 | ||||||||||||||||||||||||
Refund VAT Amount | 960,237 | ||||||||||||||||||||||||
Sixth Year [Member] | Strategic Alliance Agreement [Member] | |||||||||||||||||||||||||
Revenue Amount | 415,186 | $ 12,223,829 | |||||||||||||||||||||||
Refund Amount | $ 652,294 | $ 19,204,743 | |||||||||||||||||||||||
Seventh Year [Member] | Strategic Alliance Agreement [Member] | |||||||||||||||||||||||||
Contract Initiation Date | Jan. 1, 2021 | Jan. 1, 2021 | |||||||||||||||||||||||
Contract Maturity Date | Dec. 31, 2021 | Dec. 31, 2021 | |||||||||||||||||||||||
Execution Fees | 33,000,000 | ||||||||||||||||||||||||
Revenue Amount | $ 0 | ||||||||||||||||||||||||
Revenue VAT Amount | $ 0 | ||||||||||||||||||||||||
Refund Amount | 31,428,571 | ||||||||||||||||||||||||
Refund VAT Amount | 1,571,429 | ||||||||||||||||||||||||
Seventh Year [Member] | Strategic Alliance Agreement [Member] | |||||||||||||||||||||||||
Revenue Amount | $ 0 | ||||||||||||||||||||||||
Refund Amount | $ 1,125,689 | $ 31,428,571 | |||||||||||||||||||||||
AIATW [Member] | |||||||||||||||||||||||||
Refund Amount | $ 530,056 | $ 15,719,185 | $ 160,573 | $ 4,761,905 |
LEASE - Operating lease right-o
LEASE - Operating lease right-of-use assets and lease liabilities (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
LEASE | ||
Right-of-use assets under operating leases | $ 6,449,182 | $ 6,524,555 |
Operating lease liabilities - current | 3,059,329 | 3,043,056 |
Operating lease liabilities - noncurrent | $ 3,298,089 | $ 3,440,343 |
LEASE - Lease term and discount
LEASE - Lease term and discount rate (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
LEASE | ||
Weighted average remaining lease term, Operating lease | 2 years 3 months 21 days | 2 years 7 months 20 days |
Weighted average discount rate, Operating lease | 2.80% | 3.15% |
LEASE - Supplemental cash flow
LEASE - Supplemental cash flow information related to leases (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows related to operating leases | $ 4,260,159 | $ 3,310,015 |
Amortization of right-of-use assets under operating leases | $ 3,966,854 | $ 3,009,101 |
LEASE - Supplemental Non-cash I
LEASE - Supplemental Non-cash Information related to Leases (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
LEASE | ||
Lease liabilities arising from new right of use assets | $ 3,891,481 | $ 4,010,991 |
LEASE - Minimum future lease pa
LEASE - Minimum future lease payments (Details) | Dec. 31, 2021USD ($) |
LEASE | |
2022 | $ 3,193,004 |
2023 | 2,222,633 |
2024 | 1,013,184 |
2025 | 128,195 |
2026 | 12,042 |
Thereafter | 0 |
Total minimum lease payments | 6,569,058 |
Less: Interest | (211,640) |
Present value of future minimum lease payments | $ 6,357,418 |
LEASE - Additional Information
LEASE - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Lease, Cost | $ 4,228,584 | $ 3,455,588 |
Minimum | ||
Lessor, Operating Lease, Term of Contract | 1 year | |
Maximum | ||
Lessor, Operating Lease, Term of Contract | 5 years |
INCOME TAX (Details)
INCOME TAX (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current income provision | $ 4,868,429 | $ 3,936,977 |
Deferred income provision (benefit) | 126,222 | (529,109) |
Income tax provision | 4,994,651 | 3,407,868 |
U.S. Federal | ||
Current income provision | 0 | 0 |
Deferred income provision (benefit) | 0 | 0 |
U.S. State | ||
Current income provision | 0 | 0 |
Deferred income provision (benefit) | 0 | 0 |
Foreign | ||
Current income provision | 4,868,429 | 3,936,977 |
Deferred income provision (benefit) | $ 126,222 | $ (529,109) |
INCOME TAX - Deferred tax asset
INCOME TAX - Deferred tax assets and liabilities (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets | ||
Net operating loss carryforwards | $ 1,639,106 | $ 2,159,332 |
Accrued bonus to Law Broker's officer | 465,047 | 386,693 |
Unrealized foreign currency exchange loss | 240,898 | 255,905 |
Social security premium | 50,828 | |
Pension Liabilities | 88,037 | 73,764 |
Preferred stock-based compensation cost | 0 | 299,887 |
Others | 64,222 | 5,266 |
Total | 2,548,138 | 3,180,847 |
Valuation allowance | (1,639,106) | (2,158,957) |
Net deferred tax assets - noncurrent | 909,032 | $ 1,021,890 |
Deferred tax liabilities - noncurrent | $ 0 |
INCOME TAX - Effective Income t
INCOME TAX - Effective Income tax rate reconciliation (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
INCOME TAX | ||
U.S. statutory rate | 21.00% | 21.00% |
Tax rate difference | (2.00%) | (1.00%) |
Loss in subsidiaries | 7.00% | 21.00% |
Income tax on undistributed earnings | 4.00% | 8.00% |
Reversal of deferred tax assets not previously recognized | 0.00% | 1.00% |
Withholding tax | 0.00% | 5.00% |
Other | 0.00% | (2.00%) |
Effective tax rate | 30.00% | 53.00% |
INCOME TAX - Additional Informa
INCOME TAX - Additional Information (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021USD ($) | Dec. 31, 2021HKD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020HKD ($) | Dec. 31, 2018USD ($) | |
Schedule of Income Tax [Line Items] | |||||
Tax per financial statements | 30.00% | 30.00% | 53.00% | 53.00% | |
Total net income | $ 11,652,968 | $ 3,033,772 | |||
Effective Income Tax Rate Reconciliation, At Federal Statutory Income Tax Rate | 21.00% | 21.00% | 21.00% | 21.00% | |
Percentage Of Undistributed Earnings | 5.00% | 5.00% | 5.00% | 5.00% | |
Undistributed Earnings, Diluted | $ 1,199,195 | ||||
Accrued Income Taxes, Noncurrent | $ 539,636 | $ 719,515 | |||
Taxes Payable, Current | 179,879 | 153,787 | |||
Uncertain tax positions | $ 0 | 0 | |||
Taiwan Dollar (TWD) | |||||
Schedule of Income Tax [Line Items] | |||||
Additional Income Tax Rate On Undistributed Earnings | 5.00% | 5.00% | |||
Effective Income Tax Rate Reconciliation, At Federal Statutory Income Tax Rate | 20.00% | 20.00% | |||
Taxes Payable, Current | $ 3,703,412 | 2,978,618 | |||
Unrecognized Tax Benefits, Income Tax Penalties Expense | 145,000 | ||||
Supplementary tax payment | $ 281,605 | ||||
Minimum | |||||
Schedule of Income Tax [Line Items] | |||||
Effective Income Tax Rate Reconciliation, At Federal Statutory Income Tax Rate | 30.00% | 30.00% | |||
Maximum | |||||
Schedule of Income Tax [Line Items] | |||||
Effective Income Tax Rate Reconciliation, At Federal Statutory Income Tax Rate | 50.00% | 50.00% | |||
Hong Kong | |||||
Schedule of Income Tax [Line Items] | |||||
Tax per financial statements | 8.25% | 8.25% | 16.25% | 16.25% | |
Total net income | $ 2 | $ 2 | |||
Taxes Payable, Current | $ 9,756 | $ 13,613 | |||
Subsidiary [Member] | |||||
Schedule of Income Tax [Line Items] | |||||
Tax per financial statements | 25.00% | 25.00% |
RELATED PARTY TRANSACTIONS - Du
RELATED PARTY TRANSACTIONS - Due to related parties (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||
Due to related parties, Total | $ 50,531 | $ 94,047 |
Mr.Mao | ||
Related Party Transaction [Line Items] | ||
Compensation paid to related party | 238,919 | 237,111 |
Ms. Lu [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties, Total | 41,311 | 78,541 |
Others | ||
Related Party Transaction [Line Items] | ||
Due to related parties, Total | 9,220 | 15,506 |
Mr. Fu Chang Li | ||
Related Party Transaction [Line Items] | ||
Compensation paid to related party | $ 63,085 | $ 61,137 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES. | ||
Surplus Bonus Percentage | 1.25% | |
Compensation expenses | $ 258,200 | $ 200,558 |
Number of years | 3 years | |
Performance Bonus | $ 494,213 | $ 718,495 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Long-term investments: | ||
Government bonds held for available-for-sale | $ 0 | $ 107,096 |
Carrying amount | ||
Marketable securities: | ||
Stock mutual funds | 1,272,573 | |
Long-term investments: | ||
Government bonds held for available-for-sale | 107,096 | |
REITs | 1,261,482 | 1,359,100 |
Total assets measured at fair value | 1,261,482 | 2,738,769 |
Fair Value, Inputs, Level 1 | Fair Value | Recurring | ||
Marketable securities: | ||
Stock mutual funds | 1,272,573 | |
Long-term investments: | ||
Government bonds held for available-for-sale | 0 | |
REITs | 1,261,482 | 1,359,100 |
Total assets measured at fair value | 1,261,482 | 2,631,673 |
Fair Value, Inputs, Level 2 | Fair Value | Recurring | ||
Marketable securities: | ||
Stock mutual funds | 0 | |
Long-term investments: | ||
Government bonds held for available-for-sale | 107,096 | |
REITs | 0 | 0 |
Total assets measured at fair value | 0 | 107,096 |
Fair Value, Inputs, Level 3 | Fair Value | Recurring | ||
Marketable securities: | ||
Stock mutual funds | 0 | |
Long-term investments: | ||
Government bonds held for available-for-sale | 0 | |
REITs | 0 | $ 0 |
Total assets measured at fair value | $ 0 |
SEGMENT REPORTING - Revenue by
SEGMENT REPORTING - Revenue by major customers by reporting segments (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($) | |
Schedule of Geographical Sales [Line Items] | ||
Number of operating segments | segment | 3 | |
Revenue | ||
Total revenue | $ 131,363,175 | $ 124,267,072 |
Income (loss) from operations | ||
Total income from operations | 16,733,055 | 6,390,632 |
Non operating income/(expense) | ||
Total non-operating income/(expense) | (85,436) | 51,008 |
Net income | ||
Total net income | 11,652,968 | 3,033,772 |
Elimination adjustment | ||
Revenue | ||
Total revenue | (2,914,486) | (1,619,297) |
Income (loss) from operations | ||
Total income from operations | 1,043,411 | 1,282,824 |
Non operating income/(expense) | ||
Total non-operating income/(expense) | (590,883) | (1,199,126) |
Net income | ||
Total net income | 451,978 | 82,634 |
Taiwan Dollar (TWD) | ||
Revenue | ||
Total revenue | 128,550,812 | 119,143,726 |
Income (loss) from operations | ||
Total income from operations | 16,922,939 | 5,124,493 |
Non operating income/(expense) | ||
Total non-operating income/(expense) | 587,890 | 1,637,603 |
Net income | ||
Total net income | 12,464,221 | 3,321,374 |
PRC | ||
Revenue | ||
Total revenue | 5,691,835 | 6,426,670 |
Income (loss) from operations | ||
Total income from operations | (1,109,110) | (145,748) |
Non operating income/(expense) | ||
Total non-operating income/(expense) | (86,122) | (383,291) |
Net income | ||
Total net income | (1,133,760) | (516,589) |
Hong Kong | ||
Revenue | ||
Total revenue | 35,014 | 315,973 |
Income (loss) from operations | ||
Total income from operations | (124,185) | 129,063 |
Non operating income/(expense) | ||
Total non-operating income/(expense) | 3,679 | (4,178) |
Net income | ||
Total net income | $ (129,471) | $ 146,353 |
SEGMENT REPORTING - Long term l
SEGMENT REPORTING - Long term liabilities (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Long-lived assets | ||
Total long-lived assets | $ 8,510,937 | $ 8,897,800 |
Reportable assets | ||
Total reportable assets | 127,781,521 | 107,728,229 |
Capital investment (CAPEX cash flows) | ||
Total capital investments | 674,948 | 1,611,668 |
Elimination adjustment | ||
Long-lived assets | ||
Total long-lived assets | (2,905) | (2,905) |
Reportable assets | ||
Total reportable assets | (81,283,249) | (77,373,957) |
Taiwan Dollar (TWD) | ||
Long-lived assets | ||
Total long-lived assets | 6,784,644 | 7,259,108 |
Reportable assets | ||
Total reportable assets | 195,981,770 | 171,037,252 |
Capital investment (CAPEX cash flows) | ||
Total capital investments | 595,591 | 1,522,189 |
PRC | ||
Long-lived assets | ||
Total long-lived assets | 1,727,911 | 1,639,933 |
Reportable assets | ||
Total reportable assets | 12,326,308 | 13,149,306 |
Capital investment (CAPEX cash flows) | ||
Total capital investments | 79,203 | 87,903 |
Hong Kong | ||
Long-lived assets | ||
Total long-lived assets | 1,287 | 1,664 |
Reportable assets | ||
Total reportable assets | 756,692 | 915,628 |
Capital investment (CAPEX cash flows) | ||
Total capital investments | $ 154 | $ 1,576 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current assets | ||
Cash and cash equivalents | $ 18,234,350 | $ 9,063,338 |
Amount of Accounts Receivable | 26,761,678 | 25,346,250 |
Other current assets | 1,207,496 | 1,491,168 |
Total current assets | 110,502,700 | 90,512,837 |
Right-of-use assets under operating leases | 6,449,182 | 6,524,555 |
Property and equipment, net | 2,061,755 | 2,373,245 |
Prepaid expenses - Intangible assets | 333,118 | 381,747 |
Long-term investments | 2,696,812 | 2,835,095 |
Restricted cash - noncurrent | 88,282 | 66,490 |
Deferred tax assets included in other assets | 909,032 | 1,021,890 |
Other assets | 4,740,640 | 4,012,370 |
TOTAL ASSETS | 127,781,521 | 107,728,229 |
LIABILITIES | ||
Commissions payable to sales professionals | 14,003,541 | 12,088,291 |
Other current liabilities | 13,997,603 | 13,591,034 |
Due to related parties - Ms. Lu (the shareholder of Law Anhou) | 541,754 | 534,240 |
Total current liabilities | 53,839,983 | 47,240,915 |
Operating lease liabilities | 3,298,089 | 3,440,343 |
TOTAL LIABILITIES | 58,608,660 | 52,490,995 |
Revenue | 131,363,175 | 124,267,072 |
Net income | 11,652,968 | 3,033,772 |
Net cash provided by (used in) operating activities | 13,775,488 | 3,293,760 |
Net cash used in investing activities | (9,446,329) | (13,829,956) |
Net cash used in financing activities | 4,516,778 | 5,398,802 |
Zhengzhou Zhonglia Hengfu Business Consulting Co., Limited | ||
Current assets | ||
Cash and cash equivalents | 1,001,974 | 1,934,125 |
Amount of Accounts Receivable | 455,884 | 567,327 |
Other current assets | 120,113 | 149,376 |
Total current assets | 1,577,971 | 2,650,828 |
Right-of-use assets under operating leases | 1,528,856 | 1,464,185 |
Property and equipment, net | 199,056 | 175,748 |
Prepaid expenses - Intangible assets | 9,377 | 22,904 |
Long-term investments | 47,179 | |
Restricted cash - noncurrent | 72,870 | 52,921 |
Registered capital deposits | 1,100,842 | 1,072,361 |
Deferred tax assets included in other assets | 74,709 | 12,036 |
Other assets | 83,951 | 63,956 |
TOTAL ASSETS | 4,694,811 | 5,514,939 |
LIABILITIES | ||
Commissions payable to sales professionals | 210,198 | 274,069 |
Other current liabilities | 1,117,738 | 766,985 |
Due to related parties - Ms. Lu (the shareholder of Law Anhou) | 41,311 | 78,541 |
Total current liabilities | 1,369,247 | 1,119,595 |
Operating lease liabilities | 908,971 | 1,004,178 |
TOTAL LIABILITIES | 2,278,218 | 2,123,773 |
Revenue | 5,691,835 | 6,426,670 |
Net income | (1,030,082) | (82,278) |
Net cash provided by (used in) operating activities | (805,285) | 288,374 |
Net cash used in investing activities | (125,572) | (87,683) |
Net cash used in financing activities | $ (38,760) | $ (306,371) |
VARIABLE INTEREST ENTITIES - Ad
VARIABLE INTEREST ENTITIES - Additional information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Variable Interest Entity [Line Items] | ||
Revenue | $ 131,363,175 | $ 124,267,072 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Revenue | $ 5,691,835 | $ 6,426,670 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event - TWD ($) | Mar. 15, 2022 | Feb. 25, 2022 | Jan. 31, 2022 |
GIC | |||
Subsequent Event [Line Items] | |||
Ownership percentage | 100.00% | ||
AFHL | |||
Subsequent Event [Line Items] | |||
Business promotion fee | $ 50,000,000 | ||
Business promotion period duration | 10 years | ||
Business promotion period of return | 30 days | ||
Jiangsu Law [Member] | |||
Subsequent Event [Line Items] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | ||
Percentage of total assets | 0.61% | ||
Percentage of total revenue | 0.47% |