Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 16, 2016 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Jishanye, Inc. | |
Entity Central Index Key | 1,569,737 | |
Trading Symbol | jshy | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 60,300,001 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 1,070,008 | $ 1,041,119 |
Accounts and notes receivable | 6,654 | 1,466 |
Inventories | 908 | 4,985 |
Prepaid expenses and other current assets | 5,664 | 10,232 |
Total current assets | 1,083,234 | 1,057,802 |
Rental deposits | 11,966 | 9,696 |
Total assets | 1,095,200 | 1,067,498 |
Current liabilities: | ||
Accounts payable | 34,201 | 9,141 |
Accrued expenses and other payables | 125,231 | 100,572 |
Short-term debt - related parties | 539,010 | 455,489 |
Deferred income | 4,537 | 4,247 |
Total current liabilities | $ 702,979 | $ 569,449 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $0.0001 par value; 100,000,000 shares authorized, 60,300,001 shares issued and outstanding as of March 31, 2016 and December 31, 2015 | $ 6,030 | $ 6,030 |
Additional paid-in capital | 1,092,990 | 1,092,990 |
Accumulated other comprehensive income (loss) | 1,472 | 6,391 |
Accumulated deficit | (708,271) | (607,362) |
Total stockholders' equity | 392,221 | 498,049 |
Total liabilities and stockholders' equity | $ 1,095,200 | $ 1,067,498 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares, issued | 60,300,001 | 60,300,001 |
Common stock, shares, outstanding | 60,300,001 | 60,300,001 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive (Loss) (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Financial Position [Abstract] | ||
Revenues | $ 176,173 | |
Cost of revenues | 125,413 | |
Gross profit | 50,760 | |
Operating Expenses: | ||
Selling | 19,822 | |
General and administrative | 141,506 | $ 38,737 |
Total operating expense | 161,328 | 38,737 |
Loss from operations | (110,568) | (38,737) |
Other income (expense): | ||
Interest income | 250 | |
Other income | 9,409 | |
Total other income (expense) | 9,659 | |
Loss before tax | $ (100,909) | $ (38,737) |
Income taxes | ||
Net loss | $ (100,909) | $ (38,737) |
Other comprehensive income (loss) | ||
Foreign currency translation loss | (4,919) | (91) |
Total comprehensive loss | $ (105,828) | $ (38,828) |
Weighted average number of shares outstanding: | ||
Basic and diluted (in shares) | 60,300,001 | 12,500,001 |
Loss per share | ||
Basic and diluted (in dollars per share) | $ 0 | $ 0 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities | ||
Net loss | $ (100,909) | $ (38,737) |
Changes in operating assets and liabilities | ||
Accounts and notes receivable | (5,052) | |
Inventories | 4,111 | |
Prepaid expenses and other current assets | 2,712 | |
Accounts payable | 24,355 | |
Accrued expense and other payables | 22,580 | 30,975 |
Deferred income | 187 | |
Net cash used in operating activities | (52,016) | (7,762) |
Cash flows from financing activities | ||
Proceeds from short-term debt - related parties | 74,804 | 20 |
Net cash provided by financing activities | 74,804 | 20 |
Effect of change on cash and cash equivalents | 6,101 | (91) |
Net increase (decrease) in cash | 28,889 | (7,833) |
Cash and cash equivalents, beginning of period | 1,041,119 | 12,387 |
Cash and cash equivalents, end of period | $ 1,070,008 | $ 4,554 |
Supplemental disclosure of cash flows information: | ||
Interest paid | ||
Income taxes paid |
Organization
Organization | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Note 1 - Organization Jishanye, Inc. (“Jishanye” or the “Company”) is a Delaware corporation incorporated on April 12, 2012 under the name of Yambear Bio-tech, Inc. The Company changed its corporate name to Jishanye, Inc. on October 25, 2013. The Company established a wholly-owned subsidiary, Jishanye (Taiwan), Inc. (“Jishanye Taiwan”), a Taiwan limited liability company, on August 17, 2012. On September 30, 2015, the Company formed a wholly-owned subsidiary, Hongkong Jishanye Limited (“Jishanye HK”), in Hong Kong. Jishanye HK is a limited liability company which the Company formed to hold the equity investment in its proposed business activities in the People’s Republic of China. As of March 31, 2016, Jishanye HK has not commenced operations. The Company, through its subsidiary, Jishanye Taiwan, provides funeral management services to families in Taiwan. During the second half of 2015, the Company expanded the funeral management business by increasing its personnel, renting premises for funeral parlors and expanding our range of services. The Company began to generate revenue from funeral management services in the third quarter of 2015. Funeral management services business in Taiwan include a range of services to grieving families, which include providing a place for mourners to visit, maintaining the body during the mourning period in a manner consistent with both religious and cultural practices. In Taiwan, funeral parlors generally use one of two different formats. One type of funeral parlor, known as a binyiguan, is a funeral parlor in the traditional sense and these funeral parlors hold the body of the deceased and prepare the body for burial or cremation. The other type is a litang, which similar to a small scale auditorium. Although the body may be brought to the litang for a short period of time, usually for no more than one to two hours on any particular day, the litang provides a place for friends and relatives to visit the family of the deceased, without the presence of the body. The Company’s funeral parlors are of the litang variety, and the Company does not maintain the body during the mourning period or prepare the body for burial or cremation at its funeral parlors. The Company’s funeral management services include providing the necessary setting and personnel to meet the grieving family’s religious and cultural preferences. Prior to June 2014, the Company’s principal business was the sale of enzyme products to the public in Taiwan. In October 2015, the Company discontinued the enzyme product business, and the results of such business are reflected as a discontinued operation in our condensed consolidated financial statements. There was no operating result related to the discontinued operation during the three months ended March 31, 2015. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 - Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements and related footnotes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and in accordance with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) with respect to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited condensed consolidated financial statements furnished reflect all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary to present fairly the financial position as of March 31, 2016 and the results of operations and cash flows for the periods ended March 31, 2016 and 2015. The interim financial data and other information related to these periods are unaudited. The results for the three months ended March 31, 2016 are not necessarily indicative of the results to be expected for any subsequent periods or for the entire year ending December 31, 2016. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company for the year ended December 31, 2015, which are included in the annual report on the Form 10-K, filed with the SEC on April 14, 2016. Principles of Consolidation The accompanying consolidated financial statements include the financial statements of Jishanye and its wholly-owned subsidiaries, Jishanye Taiwan and Jishanye HK. All significant intercompany transactions and balances were eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Specific estimates include the collectability of accounts receivable and the valuation of inventory and deferred income tax. Actual results could differ from those estimates. Foreign Currency Translation The reporting currency of the Company is the United States Dollars (“$” or “United States dollar”). The functional currency of the Company is the U.S. dollars and the functional currency of the Company’s operating subsidiary, Jishanye Taiwan, is the New Taiwanese Dollar (“NTD”). The accompanying condensed consolidated financial statements are presented in United States dollars. For the operating subsidiary, results of operations and cash flows are translated from its functional currency to U.S. dollars at the average exchange rates during the period, assets and liabilities are translated at the exchange rate at the end of the period, and equity is translated at historical exchange rates. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in determining comprehensive loss. All of the Company’s revenue transactions are transacted in NTD, the functional currency of the operating subsidiary. Cash and Cash Equivalents Cash and cash equivalents include cash in hand and on deposit with banks. Accounts and Notes Receivable Accounts receivable are recorded at the invoiced amount, net of allowances for doubtful accounts and sales returns. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentration, customer credit worthiness, current economic trends and changes in customer payment patterns to determine if the allowance for doubtful accounts is adequate. Notes receivable are pre-dated checks received from trade debtors for settlement. An estimate for doubtful accounts is made when collection of the full amount is no longer probable. Delinquent account balances are written-off after management has determined that the likelihood of collection is not probable and known bad debts are written off against the allowance for doubtful accounts when identified. As of March 31, 2016 and December 31, 2015, there was no allowance for uncollectible accounts and notes receivable. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash and equivalents and accounts receivable. Credit risk concentration with respect to accounts receivables is reduced because a diverse number of customers make up the Company’s customer base. The Company maintains cash with banks in Taiwan. Should any bank holding cash become insolvent, or if the Company is otherwise unable to withdraw funds, the Company would lose the cash with that bank; however, the Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. In Taiwan, a depositor has up to NTD 3,000,000 insured in a bank. As of March 31, 2016 and December 31 2015, approximately $132,000 and $91,000 of the Company’s cash and equivalents held by financial institutions, was insured, and the remaining balance of approximately $899,000 and $942,000, was not insured. Inventories Inventories are stated at the lower of cost or market, with cost determined by using the average cost method. Management compares the cost of inventory with its market value and an allowance is made to write down inventory to market value, if lower. As of March 31, 2016 and December 31, 2015, the Company had finished goods for the continuing operation of $908 and 4,985, respectively. Revenue Recognition Service revenue is recognized when persuasive evidence of an arrangement exists, service has been provided, the fee is fixed or determinable, and collectability is probable. Payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as advances from customers. Rental income relates to the rental of mounting halls and memorial tablets at the Company’s funeral parlors which is recognized on a straight-line basis over the terms of the respective leases. In accordance with the Company’s standard lease terms, rental payments of memorial tablets are generally payable yearly. Deferred income represents the cumulative difference between rental revenue as recorded on a straight line basis and rents received from the tenants. As of March 31, 2016 and December 31, 2015, the Company had deferred income of $4,537 and $4,247, respectively. Income Taxes The Company accounts for income taxes in accordance with the accounting standard issued by the Financial Accounting Standard Board (“FASB”) for income taxes. Under the asset and liability method as required by this accounting standard, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The charge for taxation is based on the results for the reporting period as adjusted for items which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. The effect on deferred income taxes of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion, or all of, a deferred tax asset will not be realized. Under the accounting standard regarding accounting for uncertainty in income taxes, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. U.S. GAAP also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures and transition. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 3 Months Ended |
Mar. 31, 2016 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid Expenses and Other Current Assets | Note 3 – Prepaid Expenses and Other Current Assets The Company’s prepaid expenses and other current assets consisted of the following: March 31, December 31, 2016 2015 (unaudited) Rental deposits $ 14,446 $ 12,120 Other prepayments 3,184 7,808 17,630 19,928 Less: Rental deposits - non-current assets (11,966 ) (9,696 ) Prepaid expenses and other current assets $ 5,664 $ 10,232 |
Short-term Debt - Related Parti
Short-term Debt - Related Parties | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Short-term Debt - Related Parties | Note 4 – Short-term Debt – Related Parties The Company’s short-term debt from related parties consisted of the following: March 31, December 31, 2016 2015 (unaudited) Loans from former chief executive officer $ 149,500 $ 149,500 Loans from chief executive officer 226,300 145,440 Loans from Taiwan Life, Inc. 153,910 151,459 Loans from Taiwan Life Funeral Enterprises Ltd. 9,300 9,090 $ 539,010 $ 455,489 The Company’s chief executive officer is chairman of and owns a 20% equity interest in Taiwan Life, Inc. The Company’s chief executive officer is chairman of and owns a 45% equity interest in Taiwan Life Funeral Enterprises Ltd. All of these loans are interest free, unsecured and are payable on demand. |
Accrued Expenses and Other Paya
Accrued Expenses and Other Payables | 3 Months Ended |
Mar. 31, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Payables | Note 5 – Accrued Expenses and Other Payables The Company’s accrued expenses and other payables consisted of the following: March 31, December 31, 2016 2015 (unaudited) Accrued professional fees $ 89,050 $ 66,050 Accrued staff costs and staff benefits 30,865 26,225 Accrued subcontracting costs - 4,303 Value added tax and miscellaneous taxes payables 2,013 695 Others 3,303 3,299 $ 125,231 $ 100,572 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 6 – Income Taxes Jishanye is a holding company with no business other than holding an equity interest of Jishanye Taiwan. Jishanye is subject to income tax in United States with a statutory income tax rate of 34%. Jishanye Taiwan is subject to income tax in Taiwan with a statute income tax rate of 17%. Jishanye HK, which has not commenced operations, is subject to a profits tax in Hong Kong with a statutory income tax rate of 16.5%. No provision for income taxes has been recognized for the three months ended March 31, 2016 and 2015 as the Company, Jishanye Taiwan and Jishanye HK did not incur any assessable income for the period. The Company has tax losses that may be applied against future taxable income. The potential tax benefits arising from these loss carry forwards, which expire beginning the year 2025 through 2036, are offset by a valuation allowance due to the uncertainty of profitable operations in the future. As of March 31, 2016 and December 31, 2015, the Company had net operating losses carry-forward of $459,470 and $357,311, respectively. Tax effects of temporary differences that give rise to significant portions of the deferred tax assets at March 31, 2016 and December 31, 2015 are presented below: March 31, 2016 December31, 2015 (unaudited) Deferred tax asset Net operating loss carry forwards $ 118,325 $ 94,564 Less: valuation allowance (118,325 ) (94,564 ) Net deferred tax asset $ - $ - |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 7 – Related Party Transactions Pursuant to an employment agreement between the Company and its former chief executive and financial officer, dated September 1, 2012, the former chief executive and financial officer earned a salary of NTD 32,000 (approximately $1,100) per month, which was subsequently increased to NTD 35,000 (approximately $1,133). The agreement provides that either party may terminate the agreement with at least 30 days prior notice. This agreement was terminated in July 2015. The Company incurred salary of nil and $1,121 for the three months ended March 31, 2016 and 2015, respectively. See Note 4 in connection with short-term debt - related parties and Note 8 in connection with lease transactions with related parties. |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Note 8 – Commitments and Contingencies Operating leases On May 27, 2015, the Company leased the premises for a funeral parlor under a five-year lease agreement, for the period from June 1, 2015 to May 1, 2020 with an initial monthly rental of NTD 155,000 (approximately $4,805), which increases to NTD 157,550 (approximately $4,885) on June 1, 2017 and to NTD 160,177 (approximately $4,965) on June 1, 2019. Pursuant to the lease agreement, a company of which the Company’s chief executive officer is chairman and in which he holds a 20% equity interest issued a promissory note to guarantee the payment of NTD 500,000 (approximately $15,000) as security in the event the Company terminates the lease prior to expiration. On August 1, 2015, the Company leased premises for another funeral parlor under a lease agreement with a one year term, for the period from August 1, 2015 to July 1, 2016 with a monthly rental of NTD 40,000 (approximately $1,240). During the third quarter of 2015, the Company leased three office premises from related parties for five-year terms. The Company leased offices from its chief executive officer at a monthly rental of NTD 15,000 (approximately $465), from a company in which the chief executive officer is chairman and holds a 20% equity interest, at a monthly rental of NTD 10,000 (approximately $310), and from a director of its subsidiary for a monthly rental NTD 15,000 (approximately $465). On February 1, 2016, the Company leased another office under a lease agreement with approximately five year term, for the period from February 1, 2016 to September 30, 2020 with a monthly rental of NTD 33,000 (approximately $1,023). Total rental expenses for the three months ended March 31, 2016 and 2015 was $23,438 and nil, respectively, of which $3,648 and nil was paid to related parties. The minimum future lease payments for the next five years and thereafter are as follows: Period ending March 31: Related parties Unrelated parties Total 2017 $ 14,880 $ 62,620 $ 77,500 2018 14,880 58,451 73,331 2019 14,880 58,609 73,489 2020 14,880 59,423 74,303 2021 4,650 4,965 9,615 $ 64,170 $ 244,068 $ 308,238 Contingencies The Company has obtained the relevant government approval to operate funeral management business in Taiwan, although it does not have permits for its funeral parlors. Funeral parlors in Taiwan, including the ones operated by the Company, are generally unable to comply with the strict statutory requirements, for example, about the locations of funeral parlors relative to other public facilities like schools and hospitals. The non-compliance may result in fines and suspension of business. Although the potential penalties for violation of these regulations may be significant, the Company believes that non-compliance would not have significant impact on the Company’s operations or its operating results. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 9 - Segment Reporting The Company measures segment loss as loss from operations less depreciation and amortization. The reportable segments are components of the Company which offer different products or services and are separately managed, with separate financial information available that is separately evaluated regularly by the Company’s CEO in determining the performance of the business. As of March 31, 2016 and 2015, funeral management services is the Company’s only operating segment. The Company does not have material long-lived assets located in countries other than Taiwan, and the Company’s revenue is generated solely from services rendered in Taiwan during the three months ended March 31, 2016 and 2015. |
Subsequent events
Subsequent events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent events | Note 10 – Subsequent events On April 11, 2016, the Company entered into employment agreements with Mr. Chun-Hao Chang, its chief executive officer, and Ms. Mei-Chun Lin, its chief financial officer, pursuant to which the Company will pay Mr. Chang an annual salary of NTD 1,200,000, or approximately $37,200, and pay Ms. Lin an annual salary of NTD 600,000, or approximately $18,600. The agreements have a term commencing April 11, 2016 through April 30, 2019 and continuing on a year-to-year basis thereafter unless terminated by either party on written notice given not later than 90 days prior to the expiration of the initial term or any one-year extension. |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements and related footnotes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and in accordance with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) with respect to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited condensed consolidated financial statements furnished reflect all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary to present fairly the financial position as of March 31, 2016 and the results of operations and cash flows for the periods ended March 31, 2016 and 2015. The interim financial data and other information related to these periods are unaudited. The results for the three months ended March 31, 2016 are not necessarily indicative of the results to be expected for any subsequent periods or for the entire year ending December 31, 2016. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company for the year ended December 31, 2015, which are included in the annual report on the Form 10-K, filed with the SEC on April 14, 2016. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the financial statements of Jishanye and its wholly-owned subsidiaries, Jishanye Taiwan and Jishanye HK. All significant intercompany transactions and balances were eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Specific estimates include the collectability of accounts receivable and the valuation of inventory and deferred income tax. Actual results could differ from those estimates. |
Foreign Currency Translation | Foreign Currency Translation The reporting currency of the Company is the United States Dollars (“$” or “United States dollar”). The functional currency of the Company is the U.S. dollars and the functional currency of the Company’s operating subsidiary, Jishanye Taiwan, is the New Taiwanese Dollar (“NTD”). The accompanying condensed consolidated financial statements are presented in United States dollars. For the operating subsidiary, results of operations and cash flows are translated from its functional currency to U.S. dollars at the average exchange rates during the period, assets and liabilities are translated at the exchange rate at the end of the period, and equity is translated at historical exchange rates. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in determining comprehensive loss. All of the Company’s revenue transactions are transacted in NTD, the functional currency of the operating subsidiary. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash in hand and on deposit with banks. |
Accounts and Notes Receivable | Accounts and Notes Receivable Accounts receivable are recorded at the invoiced amount, net of allowances for doubtful accounts and sales returns. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentration, customer credit worthiness, current economic trends and changes in customer payment patterns to determine if the allowance for doubtful accounts is adequate. Notes receivable are pre-dated checks received from trade debtors for settlement. An estimate for doubtful accounts is made when collection of the full amount is no longer probable. Delinquent account balances are written-off after management has determined that the likelihood of collection is not probable and known bad debts are written off against the allowance for doubtful accounts when identified. As of March 31, 2016 and December 31, 2015, there was no allowance for uncollectible accounts and notes receivable. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash and equivalents and accounts receivable. Credit risk concentration with respect to accounts receivables is reduced because a diverse number of customers make up the Company’s customer base. The Company maintains cash with banks in Taiwan. Should any bank holding cash become insolvent, or if the Company is otherwise unable to withdraw funds, the Company would lose the cash with that bank; however, the Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. In Taiwan, a depositor has up to NTD 3,000,000 insured in a bank. As of March 31, 2016 and December 31 2015, approximately $132,000 and $91,000 of the Company’s cash and equivalents held by financial institutions, was insured, and the remaining balance of approximately $899,000 and $942,000, was not insured. |
Inventories | Inventories Inventories are stated at the lower of cost or market, with cost determined by using the average cost method. Management compares the cost of inventory with its market value and an allowance is made to write down inventory to market value, if lower. As of March 31, 2016 and December 31, 2015, the Company had finished goods for the continuing operation of $908 and 4,985, respectively. |
Revenue Recognition | Revenue Recognition Service revenue is recognized when persuasive evidence of an arrangement exists, service has been provided, the fee is fixed or determinable, and collectability is probable. Payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as advances from customers. Rental income relates to the rental of mounting halls and memorial tablets at the Company’s funeral parlors which is recognized on a straight-line basis over the terms of the respective leases. In accordance with the Company’s standard lease terms, rental payments of memorial tablets are generally payable yearly. Deferred income represents the cumulative difference between rental revenue as recorded on a straight line basis and rents received from the tenants. As of March 31, 2016 and December 31, 2015, the Company had deferred income of $4,537 and $4,247, respectively. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with the accounting standard issued by the Financial Accounting Standard Board (“FASB”) for income taxes. Under the asset and liability method as required by this accounting standard, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The charge for taxation is based on the results for the reporting period as adjusted for items which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. The effect on deferred income taxes of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion, or all of, a deferred tax asset will not be realized. Under the accounting standard regarding accounting for uncertainty in income taxes, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. U.S. GAAP also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures and transition. |
Prepaid Expenses and Other Cu17
Prepaid Expenses and Other Current Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of prepaid expenses and other current assets | March 31, December 31, 2016 2015 (unaudited) Rental deposits $ 14,446 $ 12,120 Other prepayments 3,184 7,808 17,630 19,928 Less: Rental deposits - non-current assets (11,966 ) (9,696 ) Prepaid expenses and other current assets $ 5,664 $ 10,232 |
Short-term Debt - Related Par18
Short-term Debt - Related Parties (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of short-term debt from related parties | March 31, December 31, 2016 2015 (unaudited) Loans from former chief executive officer $ 149,500 $ 149,500 Loans from chief executive officer 226,300 145,440 Loans from Taiwan Life, Inc. 153,910 151,459 Loans from Taiwan Life Funeral Enterprises Ltd. 9,300 9,090 $ 539,010 $ 455,489 |
Accrued Expenses and Other Pa19
Accrued Expenses and Other Payables (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses and other payables | March 31, December 31, 2016 2015 (unaudited) Accrued professional fees $ 89,050 $ 66,050 Accrued staff costs and staff benefits 30,865 26,225 Accrued subcontracting costs - 4,303 Value added tax and miscellaneous taxes payables 2,013 695 Others 3,303 3,299 $ 125,231 $ 100,572 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of deferred tax assets and liabilities | March 31, 2016 December31, 2015 (unaudited) Deferred tax asset Net operating loss carry forwards $ 118,325 $ 94,564 Less: valuation allowance (118,325 ) (94,564 ) Net deferred tax asset $ - $ - |
Commitments and contingencies (
Commitments and contingencies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of minimum future lease payments | Period ending March 31: Related parties Unrelated parties Total 2017 $ 14,880 $ 62,620 $ 77,500 2018 14,880 58,451 73,331 2019 14,880 58,609 73,489 2020 14,880 59,423 74,303 2021 4,650 4,965 9,615 $ 64,170 $ 244,068 $ 308,238 |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Detail Textuals) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Accounting Policies [Abstract] | ||
Cash balances for the banks and financial institutions | $ 132,000 | $ 91,000 |
Cash, uninsured amount | 899,000 | 942,000 |
Inventory, finished goods | 908 | 4,985 |
Deferred income | $ 4,537 | $ 4,247 |
Prepaid Expenses and Other Cu23
Prepaid Expenses and Other Current Assets (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Rental deposits | $ 14,446 | $ 12,120 |
Other prepayments | 3,184 | 7,808 |
Rental deposits and other prepayments | 17,630 | 19,928 |
Less: Rental deposits - non-current assets | (11,966) | (9,696) |
Prepaid expenses and other current assets | $ 5,664 | $ 10,232 |
Short-term Debt - Related Par24
Short-term Debt - Related Parties (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Related Party Transaction [Line Items] | ||
Short-term debt - related parties | $ 539,010 | $ 455,489 |
Former chief executive officer | ||
Related Party Transaction [Line Items] | ||
Short-term debt - related parties | 149,500 | 149,500 |
Chief executive officer | ||
Related Party Transaction [Line Items] | ||
Short-term debt - related parties | 226,300 | 145,440 |
Taiwan Life, Inc. | ||
Related Party Transaction [Line Items] | ||
Short-term debt - related parties | 153,910 | 151,459 |
Taiwan Life Funeral Enterprises Ltd. | ||
Related Party Transaction [Line Items] | ||
Short-term debt - related parties | $ 9,300 | $ 9,090 |
Short-term Debt - Related Par25
Short-term Debt - Related Parties (Detail Textuals) - Chief executive officer | Mar. 31, 2016 | Sep. 30, 2015 |
Related Party Transaction [Line Items] | ||
Percentage of beneficial ownership | 20.00% | |
Taiwan Life, Inc. | ||
Related Party Transaction [Line Items] | ||
Percentage of beneficial ownership | 20.00% | |
Taiwan Life Funeral Enterprises Ltd. | ||
Related Party Transaction [Line Items] | ||
Percentage of beneficial ownership | 45.00% |
Accrued Expenses and Other Pa26
Accrued Expenses and Other Payables (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||
Accrued professional fees | $ 89,050 | $ 66,050 |
Accrued staff costs and staff benefits | $ 30,865 | 26,225 |
Accrued subcontracting costs | 4,303 | |
Value added tax and miscellaneous taxes payables | $ 2,013 | 695 |
Others | 3,303 | 3,299 |
Accrued expenses and other payables | $ 125,231 | $ 100,572 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Deferred tax asset | ||
Net operating loss carry forwards | $ 118,325 | $ 94,564 |
Less: valuation allowance | $ (118,325) | $ (94,564) |
Net deferred tax asset |
Income Taxes (Detail Textuals)
Income Taxes (Detail Textuals) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Income Tax [Line Items] | ||
Statutory income tax rate | 34.00% | |
Net operating losses carry-forward | $ 459,470 | $ 357,311 |
Operating loss carryforward, expiration period | expire beginning the year 2025 through 2036 | |
Taiwan | ||
Income Tax [Line Items] | ||
Local statutory income tax rate | 17.00% | |
HONG KONG | ||
Income Tax [Line Items] | ||
Local statutory income tax rate | 16.50% |
Related Party Transactions (Det
Related Party Transactions (Detail Textuals) | Sep. 01, 2012USD ($) | Sep. 01, 2012TWD | Mar. 31, 2016USD ($) | Mar. 31, 2016TWD | Mar. 31, 2015USD ($) |
Related Party [Line Items] | |||||
Salary | $ 1,121 | ||||
Employment agreement | Former chief executive and financial officer | |||||
Related Party [Line Items] | |||||
Salary | $ 1,100 | TWD 32,000 | $ 1,133 | TWD 35,000 | |
Employment agreement, termination notice period | 30 days | 30 days |
Commitments and contingencies30
Commitments and contingencies (Details) | Mar. 31, 2016USD ($) |
Commitments And Contingencies Disclosure [Line Items] | |
2,017 | $ 77,500 |
2,018 | 73,331 |
2,019 | 73,489 |
2,020 | 74,303 |
2,021 | 9,615 |
Total minimum future lease payments | 308,238 |
Related parties | |
Commitments And Contingencies Disclosure [Line Items] | |
2,017 | 14,880 |
2,018 | 14,880 |
2,019 | 14,880 |
2,020 | 14,880 |
2,021 | 4,650 |
Total minimum future lease payments | 64,170 |
Unrelated parties | |
Commitments And Contingencies Disclosure [Line Items] | |
2,017 | 62,620 |
2,018 | 58,451 |
2,019 | 58,609 |
2,020 | 59,423 |
2,021 | 4,965 |
Total minimum future lease payments | $ 244,068 |
Commitments and contingencies31
Commitments and contingencies (Detail Textuals) | Jun. 01, 2019USD ($) | Jun. 01, 2019TWD | Jun. 01, 2017USD ($) | Jun. 01, 2017TWD | Feb. 01, 2016USD ($) | Feb. 01, 2016TWD | Aug. 01, 2015USD ($) | Aug. 01, 2015TWD | May. 27, 2015USD ($) | May. 27, 2015TWD | Mar. 31, 2016USD ($) | Sep. 30, 2015USD ($)Office | Sep. 30, 2015TWDOffice | Mar. 31, 2015USD ($) | May. 27, 2015TWD |
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||
Term of lease agreement | 5 years | 5 years | |||||||||||||
Number of office premises leased | Office | 3 | 3 | |||||||||||||
Total rental expenses | $ 23,438 | ||||||||||||||
Total rental expenses paid to related party | $ 3,648 | ||||||||||||||
Lease agreement | |||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||
Term of lease agreement | 5 years | 5 years | |||||||||||||
Rental expenses | $ 1,023 | TWD 33,000 | |||||||||||||
Chief executive officer | |||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||
Rental expenses | $ 465 | TWD 15,000 | |||||||||||||
Percentage of beneficial ownership | 20.00% | 20.00% | |||||||||||||
Chief executive officer | Lease agreement | Promissory Note | |||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||
Amount paid as security to the lessor | $ 15,000 | TWD 500,000 | |||||||||||||
Percentage of beneficial ownership | 20.00% | 20.00% | |||||||||||||
Taiwan Life | |||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||
Rental expenses | $ 310 | TWD 10,000 | |||||||||||||
Director | |||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||
Rental expenses | $ 465 | TWD 15,000 | |||||||||||||
Funeral Services | Lease agreement | |||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||
Term of lease agreement | 1 year | 1 year | 5 years | 5 years | |||||||||||
Rental expenses | $ 1,240 | TWD 40,000 | $ 4,805 | TWD 155,000 | |||||||||||
Funeral Services | Subsequent Event | |||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||
Rental expenses | $ 4,965 | TWD 160,177 | $ 4,885 | TWD 157,550 |
Segment Reporting (Detail Textu
Segment Reporting (Detail Textuals) | 3 Months Ended |
Mar. 31, 2016Segment | |
Segment Reporting [Abstract] | |
Number of reportable segment | 1 |
Subsequent events (Detail Textu
Subsequent events (Detail Textuals) | Apr. 11, 2016USD ($) | Apr. 11, 2016TWD | Mar. 31, 2015USD ($) |
Subsequent Event [Line Items] | |||
Annual salary | $ 1,121 | ||
Subsequent Event | Employment agreement | Mr. Chun-Hao Chang | |||
Subsequent Event [Line Items] | |||
Annual salary | $ 37,200 | TWD 1,200,000 | |
Subsequent Event | Employment agreement | Ms. Mei-Chun Lin | |||
Subsequent Event [Line Items] | |||
Annual salary | $ 18,600 | TWD 600,000 |