Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Jun. 16, 2020 | Jun. 30, 2019 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | JRSIS HEALTH CARE Corp | ||
Entity Central Index Key | 0001597892 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 18,016,331 | ||
Entity File Number | 0-56013 | ||
Entity Interactive Data Current | No | ||
Entity Incorporation State Country Code | FL | ||
Entity Public Float | $ 31,150,493 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 1,971,129 | $ 256,450 |
Accounts receivable, net | 4,583,835 | 8,213,015 |
Inventories | 1,072,741 | 1,163,845 |
Other receivables | 47,385 | 7,590 |
Prepayments | 1,301,351 | 1,826,214 |
Amount due from related parties | 149,811 | |
Deferred expenses | 257,203 | 291,104 |
Deposits for capital leases-current portion | 280,422 | 72,700 |
Total current assets | 9,514,066 | 11,980,729 |
Construction in progress | 803,257 | |
Property and equipment, net | 22,838,622 | 37,723,969 |
Long term deferred expenses | 2,978,936 | 1,238,455 |
Deposits for capital leases | 655,569 | 720,306 |
Right-of-use assets | 15,641,489 | |
Total assets | 51,628,682 | 52,466,716 |
Current Liabilities: | ||
Accounts payable | 3,619,442 | 3,635,761 |
Notes payable | 358,382 | 668,175 |
Deposits received | 24,487 | 14,213 |
Amount due to related parties | 1,794,540 | 109,147 |
Other payable | 10,752 | 49,707 |
Deferred tax payable | 245,943 | 107,365 |
Tax payable | 12,047 | 41,156 |
Payroll payable | 1,395,034 | 383,943 |
Capital lease obligations - current portion | 2,680,421 | 2,161,977 |
Convertible Note | 774,567 | |
Total current liabilities | 10,915,615 | 7,171,444 |
Warrant liabilities | 110,840 | |
Capital lease obligations | 13,295,933 | 19,380,209 |
Deferred tax payable | 1,702,752 | 1,231,462 |
Other capital lease payable | 2,616,691 | 2,651,084 |
Total liabilities | 28,641,831 | 30,434,199 |
Shareholders' equity | ||
Common stock; $0.001 par value, 100,000,000 shares authorized; 17,975,999 and 14,975,000 issued and outstanding at December 31, 2019 and 2018, respectively | 17,976 | 14,975 |
Additional Paid-in capital | 22,825,787 | 2,191,363 |
Retained earnings | (6,788,652) | 12,913,912 |
Other comprehensive income | (1,236,873) | (983,109) |
Total shareholders' equity of the Company | 14,818,238 | 14,137,141 |
Non-controlling interest | 8,168,613 | 7,895,376 |
Total shareholders' equity | 22,986,851 | 22,032,517 |
Total liabilities and shareholders' equity | $ 51,628,682 | $ 52,466,716 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 17,975,999 | 14,975,000 |
Common Stock, Shares, Outstanding | 17,975,999 | 14,975,000 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue: | ||
Total revenue | $ 31,463,433 | $ 28,402,759 |
Operating costs and expenses: | ||
Cost of medicine sold | 7,835,364 | 8,244,092 |
Medical consumables | 4,671,611 | 3,960,634 |
Salaries and benefits | 7,502,622 | 5,067,864 |
Office supplies | 1,614,261 | 1,140,464 |
Vehicle expenses | 312,857 | 188,483 |
Utilities expenses | 576,804 | 499,852 |
Rentals and leases | 124,763 | 109,326 |
Advertising and promotion expenses | 53,449 | 78,696 |
Interest expense | 1,112,000 | 1,133,935 |
Professional fee | 337,260 | 222,412 |
Convertible notes expense | 332,067 | |
Warrant expense | 110,840 | |
Depreciation | 2,212,022 | 1,764,765 |
Total operating costs and expenses | 26,795,920 | 22,410,523 |
Earnings from operations before other income and income taxes | 4,667,513 | 5,992,236 |
Other income (expenses) | (2,741,155) | (379,486) |
Earnings from operations before income taxes | 1,926,358 | 5,612,750 |
Income tax | 657,699 | 2,765,650 |
Net income | 1,268,659 | 2,847,100 |
Less: net income attributable to non-controlling interests | 380,598 | 854,130 |
Net income attributable to the Company | 888,061 | 1,992,970 |
Other comprehensive income: | ||
Foreign currency translation adjustment attributable to non-controlling interests | (107,361) | (297,797) |
Foreign currency translation adjustment attributable to the Company | (253,764) | (889,589) |
Comprehensive income | 907,534 | 1,659,714 |
Less: Comprehensive income attributable to non-controlling interests | 273,237 | 556,333 |
Comprehensive income attributable to the Company | $ 634,297 | $ 1,103,381 |
Basic earnings per share | $ 0.053 | $ 0.1333 |
Diluted earnings per share | $ 0.0529 | $ 0.1333 |
Weighted average number of shares outstanding (Basic) | 16,757,890 | 14,948,397 |
Weighted average number of shares outstanding (Diluted) | 16,783,362 | 14,948,397 |
Medicine | ||
Revenue: | ||
Total revenue | $ 10,778,239 | $ 11,183,130 |
Patient services | ||
Revenue: | ||
Total revenue | $ 20,685,194 | $ 17,219,629 |
Consolidated Statement of Share
Consolidated Statement of Sharesholders' Equity - USD ($) | Common stock | Retained Earnings | Other comprehensive income | Additional paid-in capital | Non-Controlling Interest | Total |
Balance in beginning at Dec. 31, 2017 | $ 14,835 | $ 10,920,942 | $ (93,520) | $ 2,051,503 | $ 7,339,043 | $ 20,232,803 |
Balance in beginning (in shares) at Dec. 31, 2017 | 14,835,000 | |||||
Net income | 1,992,970 | 854,130 | 2,847,100 | |||
Shares issued | $ 140 | 139,860 | 140,000 | |||
Shares issued (in shares) | 140,000 | |||||
Foreign currency translation adjustment | (889,589) | (297,797) | (1,187,386) | |||
Balance in end at Dec. 31, 2018 | $ 14,975 | 12,913,912 | (983,109) | 2,191,363 | 7,895,376 | 22,032,517 |
Balance in end (in shares) at Dec. 31, 2018 | 14,975,000 | |||||
Net income | 888,061 | 380,598 | 1,268,659 | |||
Shares issued | $ 6 | 46,794 | 46,800 | |||
Shares issued (in shares) | 6,000 | |||||
Foreign currency translation adjustment | (253,764) | (107,361) | (361,125) | |||
Stock dividends | $ 2,995 | (20,590,625) | 20,587,630 | |||
Stock dividends (in Shares) | 2,994,999 | |||||
Balance in end at Dec. 31, 2019 | $ 17,976 | $ (6,788,652) | $ (1,236,873) | $ 22,825,787 | $ 8,168,613 | $ 22,986,851 |
Balance in end (in shares) at Dec. 31, 2019 | 17,975,999 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows From Operating Activities | ||
Net income | $ 1,268,659 | $ 2,847,100 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 2,212,022 | 1,764,765 |
Interest | 1,112,000 | 1,133,935 |
Amortization for long-term deferred assets | 387,483 | |
Loss on disposal of fixed assets | 294,565 | |
Convertible notes expense | 332,067 | |
Warrant expense | 110,840 | |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 3,552,836 | (2,951,899) |
Inventories | 76,657 | (288,677) |
Amount due from related parties | 139,617 | 1,578,970 |
Prepayments and other current assets | (288,924) | 501,856 |
Accounts payable | 30,176 | 1,966,667 |
Notes payable | 151,142 | |
Amount due to related parties | 1,701,047 | 37,886 |
Deferred tax payable | 632,615 | 1,391,702 |
Deposits received | 10,548 | 8,573 |
Accrued expenses and other current liabilities | 957,243 | 375,066 |
Net cash provided by operating activities | 11,847,403 | 9,199,134 |
Cash Flows From Investing Activities | ||
Purchases of fixed assets | (4,713,541) | (3,278,264) |
Prepayment for construction in progress | (1,158,992) | |
Prepayment for fixed assets | 750,953 | (1,529,837) |
Net cash used in investing activities | (3,962,588) | (5,967,093) |
Cash Flows From Financing Activities | ||
Proceeds from shareholders | 140,000 | |
Interest expenses | (1,112,000) | |
Payments on capital lease obligation | (8,095,323) | (3,622,715) |
Derivative Financial Instruments | 442,500 | |
Non-cash issuance of common stock | 46,800 | |
Proceeds from finance lease | 2,609,047 | |
Repayment to bank | (440,462) | |
Net cash used in financing activities | (6,108,976) | (3,923,177) |
Effect of exchange rate fluctuation on cash and cash equivalents | (61,160) | 63,294 |
Net increase (decrease) in cash and cash equivalents | 1,714,679 | (627,842) |
Cash and cash equivalents, beginning of period | 256,450 | 884,292 |
Cash and cash equivalents, ending of period | 1,971,129 | 256,450 |
Supplemental disclosure of cash flow information | ||
Cash paid for income taxes | (54,106) | (1,303,288) |
Cash paid for interest | $ (1,112,000) | $ (1,154,872) |
Description of Business and Org
Description of Business and Organization | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND ORGANIZATION | NOTE 1. DESCRIPTION OF BUSINESS AND ORGANIZATION JRSIS Health Care Corporation (the "Company" or "JRSS") was incorporated on November 20, 2013 under the laws of the State of Florida. In December 2013 JRSS acquired 100% of the equity in JRSIS Health Care Limited ("JHCL"), which is a Limited Liability Company registered in British Virgin Island ("BVI") on February 25, 2013. JHCL owns 100% of the equity in Runteng Medical Group Co., Ltd ("Runteng"), a limited liability company registered in Hong Kong on September 17, 2012. Runteng owns 70% of the equity in Harbin Jiarun Hospital Co., Ltd ("Jiarun"), a for-profit hospital incorporated in Harbin City of Heilongjiang, China in February 2006. The remaining 30% of the equity in Jiarun is owned by Junsheng Zhang, who is the Chairman of the Board of JRSIS Health Care Corporation. Jiarun is a private hospital serving patients on a municipal and county level and providing both Western and Chinese medical practices to the residents of Harbin. Jiarun also owns 100% of the equity in: ● Harbin Jiarun Hospital Co., Ltd Nanjing Road Branch ("NRB Hospital"), a hospital branch of Jiarun, incorporated in Harbin city of Heilongjiang, China in October 2017. NRB hospital is a private hospital serving patients on a municipal and county level and providing both Western and Chinese medical practices to the residents of Harbin. ● Harbin Jiarun Hospital Co., Ltd 2 nd nd nd 30% of the equity in Jiarun is held by Junsheng Zhang, and is therefore a non-controlling interest ("NCI"), accounted for pursuant to ASC810-10-45, which states that the ownership interest in the subsidiary that is held by owners other than the parent is a non-controlling interest. According to the supplemental agreement signed between Junsheng Zhang and Runteng on June 1, 2013, the comprehensive income from Jiarun would be attributable to retained earnings and non-controlling interest for 70% and 30% respectively, from July 1, 2013. |
Summaries of Significant Accoun
Summaries of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARIES OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. SUMMARIES OF SIGNIFICANT ACCOUNTING POLICIES A. Basis of presentation The consolidated financial statements have been prepared in accordance with the United States generally accepted accounting principles ("U.S. GAAP"). B. Principles of consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All inter-company transactions and balances have been eliminated in consolidation. Non-controlling interests represent the equity interest in Jiarun that is not attributable to the Company. Non-controlling interest is reported in the consolidated financial position within equity, separate from the Company's equity. Net income or loss and comprehensive income or loss are attributed to the Company's and the non-controlling interest. C. Use of estimates The preparation of audited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ from those estimates. Significant items subject to such estimates and assumptions include valuation allowances for receivables and recoverability of carrying amount and the estimated useful lives of long-lived assets. These estimates are often based on complex judgments and assumptions that management believes to be reasonable but are inherently uncertain and unpredictable. Actual results could differ from these estimates. D. Functional currency and foreign currency translation JRSS and JHCL's functional currency is the United States dollar ("US$"). Runteng's functional currency is the Hong Kong dollar ("HK$"). The functional currency of Jiarun is the Renminbi ("RMB"). The Company's reporting currency is US$. Assets and liabilities of Runteng and Jiarun are translated at the current exchange rate at the balance sheet dates, revenues and expenses are translated at the average exchange rates during the reporting periods, and equity accounts are translated at historical rates. Translation adjustments are reported in other comprehensive income. The exchange rates used for foreign currency translation are as follows: For the Year Ended 2019 2018 (USD to RMB/USD to HKD) ( USD to RMB/USD to HKD Assets and liabilities period end exchange rate 6.9680 / 7.7876 6.8776 / 7.8317 Revenue and expenses period average 6.9088 / 7.8351 6.6163 / 7.8375 E. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk are cash, accounts receivable and other receivables arising from its normal business activities. The Company places its cash in what it believes to be credit-worthy financial institutions. The majority of sales are either cash receipt in advance or cash receipt upon delivery. For the years ended December 31, 2019 and 2018, no customer accounted for more than 10% of net revenue. As of December 31, 2019 and 2018, three and three customers accounted for more than 5% of net accounts receivable, respectively. For those credit sales, the Company routinely assesses the financial strength of its customers and, based upon factors surrounding the credit risk, establishes an allowance, if required, for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowance is limited. F. Cash and cash equivalents Cash and cash equivalents include all cash, deposits in banks and other liquid investments with initial maturities of three months or less. G. Accounts receivable Accounts receivable are recorded at net realizable value consisting of the carrying amount less an allowance for uncollectible accounts as needed. The allowance for doubtful accounts is the Company's best estimate of the amount of probable credit losses in the Company's existing accounts receivable. The Company determines the allowance based on aging data, historical collection experience, customer specific facts and economic conditions. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. H. Inventories Inventories, consisting principally of medicines, are stated at the lower of cost or market using the first-in, first-out method ("FIFO"). This policy requires the Company to make estimates regarding the market value of inventory, including an assessment of excess or obsolete inventory. The Company determines excess or obsolete inventory based on an estimate of the future demand and estimated selling prices for its products. I. Construction in progress Construction in progress represents the new hospital painting and decoration costs. And all direct costs relating to the polishing and decoration are capitalized as construction in progress. No depreciation is provided in respect of construction in progress. J. Property and equipment Property and equipment are stated at cost. Expenditures for maintenance and repairs are charged to operations when incurred, while additions and betterments are capitalized. Depreciation is recorded on a straight-line basis reflective of the useful lives of the assets. When assets are retired or disposed, the asset's original cost and related accumulated depreciation are eliminated from accounts and any gain or loss is reflected in income. The estimated useful lives for property and equipment categories are as follows: Buildings and improvement 10-40 years Medical equipment 5-15 years Transportation instrument 5-10 years Office equipment 5-10 years Electronic equipment 5-10 years Software 5-10 years K. Leases In February 2016, the FASB issued ASU 2016-02–Leases (Topic 842), which increases transparency and comparability among organizations by recognizing right-of-use ("ROU") lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The ASU maintains a distinction between finance leases and operating leases, which is substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous lease guidance. Retaining this distinction allows the recognition, measurement and presentation of expenses and cash flows arising from a lease to remain similar to the previous accounting treatment. A lessee is permitted to make an accounting policy election by class of underlying asset to exclude from balance sheet recognition any lease assets and lease liabilities with a term of 12 months or less, and instead to recognize lease expense on a straight-line basis over the lease term. For both financing and operating leases, the ROU asset and lease liability is initially measured at the present value of the lease payments in the consolidated balance sheet. In July 2018, the FASB issued ASU 2018-11 which provides entities with the option to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, if necessary. As discussed in Note 8, we adopted ASU 2016-02–Leases (Topic 842) effective January 1, 2019 utilizing the transition option provided by ASU 2018-11. L. Fair Value Measurement The Company applies the provisions of ASC Subtopic 820-10, Fair Value Measurements, for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements. ASC 820 also establishes a framework for measuring fair value and expands disclosures about fair value measurements. Fair value is defined as the price that would be received when selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining the fair value for the assets and liabilities required or permitted to be recorded, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes three levels of inputs that may be used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs that is observable, either directly or indirectly, for substantially the full term of the asset or liability; Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis: Carrying Value at Fair Value Measurement at 2019 Level 1 Level 2 Level 3 Convertible Note $ 774,567 $ - $ - $ 774,567 Warrant liability $ 110,840 $ - $ - $ 110,840 A summary of changes in Warrant liability for the period ended December 31, 2019 was as follows: Balance at January 1, 2019 $ - Issuance of warrants on May 30, 2019 77,995 Issuance of warrants on July 30, 2019 74,486 Change in fair value of warrant liability (41,641 ) Balance at December 31, 2019 110,840 The fair value of the outstanding warrants was calculated using the Binomial Option Pricing Model with the following assumptions at inception and on subsequent valuation date: December 31, 2019 Warrants Labrys Auctus Market price per share (USD/share) $ 6.5 $ 6.5 Exercise price (USD/share) 10.00 6.00 Risk free rate 1.679 % 1.654 % Dividend yield 0 % 0 % Expected term/Contractual life (years) 4.42 2.58 Expected volatility 54.62 % 51.25 % A summary of changes in Convertible Note for the period ended December 31, 2019 was as follows: Balance at January 1, 2019 $ - Issuance of Convertible Note on July 15, 2019 192,500 Issuance of Convertible Note on July 30, 2019 250,000 Fair value loss on issuance of convertible notes 392,286 Change in fair value of convertible notes (60,219 ) Balance at December 31, 2019 774,567 The fair value of the outstanding Convertible Note was calculated using Monte Carlo simulation "MC simulation" method and the Binomial Option Pricing Model with the following assumptions at inception and on subsequent valuation date: December 31, 2019 Convertible Note Harbor Auctus 2 Market price per share (USD/share) $ 6.5 $ 6.5 Exercise price (USD/share) $ 5 60% on lowest trading price Risk free rate 1.663 % 1.89 % Dividend yield 0 % 0 % Expected term/Contractual life (years) 0.04 0.33 Expected volatility 21.22 % 48.25 % In May and July, 2019, the Company issued three convertible promissory notes, one each to Labrys Fund, LP, Auctus Fund, LLC and Harbor Gates Capital, LLC. On October 31, 2019, the Company repaid the convertible promissory note issued to Labrys Fund, LP. Therefore, the Labrys' Convertible Note has no fair value as of each subsequent reporting date. 1. The fair value of the outstanding Convertible Note issued to Harbor Gates was calculated using Binomial Option Pricing Model 2. The fair value of the outstanding Convertible Note issued to Auctus was calculated using Monte Carlo simulation "MC simulation" method. Cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities are reflected in the accompanying consolidated financial statements at amounts that approximate fair value because of the short-term nature of these instruments. The fair value of the Company's capital lease obligations also approximates carrying value as they bear interest at current market rates. M. Segment and geographic information The Company is operating in one segment in accordance with the accounting guidance FASB ASC topic 280, "Segment Reporting". The company's revenues are from customers in People's Republic of China ("PRC"). All assets of the company are located in PRC. N. Revenue recognition The Company recognizes revenue when the amount of revenue can be reliably measured, it is probable that economic benefits will flow to the entity, and specific criteria have been met for each of the Company's activities as described below. Medicine sales Revenue from the sale of medicine is recognized when it is both earned and realized. The Company's policy is to recognize the sale of medicine when the title of the medicine, ownership and risk of loss have transferred to the purchasers, and collection of the sales proceeds is reasonably assured, all of which generally occur when the patient receives the medicine. Given the nature of this revenue source of the Company's business and the applicable rules guiding revenue recognition, the revenue recognition practices for the sale of medicine do not contain estimates that materially affect results of operations nor does the Company have any policy for return of products. Patient Services In accordance with the medical licenses under which Jiarun operates, the scope of its approved medical patient service includes medical consulting, surgery, obstetrics and gynecology, pediatrics, anesthesia, clinic laboratory, medical imaging, and traditional Chinese medicine. Patient service revenue is recognized when it is both earned and realized. The Company's policy is to recognize patient service revenue when the medical service has been provided to the patient and collection of the revenue is reasonably assured. The Company provides services to both patients covered by social insurance and patients who are not covered by social insurance. The Company charges the same rates for patient services regardless of the coverage by social insurance. Patients who are not covered by social insurance are liable for the total cost of medical treatment. ● For out-patient medical services, revenue is recognized when the Company provides medical service to the patient. The Company collects payment before the patient leaves the hospital. ● For in-patient medical services, when a patient checks into the hospital, the Company estimates the approximate fee the patient will spend in the hospital based on patient's symptoms. At that time, the Company collects the estimated fees from the patient and records the payment as deposits received. During the in-patient services period, the Company recognizes revenue when the patient service is provided and deducts the cost of service from the deposit received. The Company records these transactions based on daily reports generated by the respective medical department. When medical services exceed patient deposits received the Company records revenue and accounts receivable when the patient services are provided. When a patient checks out from the hospital, the Company calculates and determines the remaining deposit, if any, and refunds the unused portion of the deposit to the patients. In the case where the patient has a balance in accounts receivable, accounts receivable are required to be paid in full at checkout. Patients covered by social insurance will receive a portion or full medical services reimbursed or paid by the social insurance agencies via prepaid cards or insurance claim settlement process. Settlement process The Company is a registered medical service vendor under the state social insurance system for various social insurance agencies; the insurance agencies include "Social Medical Insurance funded by PRC and Heilongjiang Province" and "Heilongjiang Province New Rural Cooperative Medical Care System". The Company utilizes an online system maintained by the social insurance agencies for patients who are covered by social insurance agencies. ● The Company records patients' information in the social insurance system at check in. The system determines the covered portion and amounts based on the information input to the system. ● At the time of check out, the Company collects payment for services the patients are liable for and records accounts receivable from the social insurance agencies for the portion of services covered by the social insurances. In the case that the patients have made payment during the in-patient services period, the Company refunds any amount in excess of the portion they are liable for. ● The Company is responsible for submitting supporting documents of patient services provided to the social insurance agencies for their review. The Company is also required to reconcile its records with the social insurance agencies once a month. Once the social insurance agencies approve the reconciliation, the insurance agencies will settle the accounts receivable balance in the next month following the approval. O. Income taxes The Company has adopted FASB ASC Topic 740, "Income Taxes," which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income 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 period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. In July 2006, the FASB issued FIN 48(ASC 740-10), Accounting for Uncertainty in Income Taxes-An Interpretation of FASB Statement No. 109 (ASC 740), which requires income tax positions to meet a more-likely-than-not recognition threshold to be recognized in the financial statements. Under FIN 48 (ASC 740-10), tax positions that previously failed to meet the more-likely-than-not threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The application of tax laws and regulations is subject to legal and factual interpretation, judgment and uncertainty. Tax laws and regulations themselves are subject to change as a result of changes in fiscal policy, changes in legislation, the evolution of regulations and court rulings. Therefore, the actual liability may be materially different from our estimates, which could result in the need to record additional tax liabilities or potentially reverse previously recorded tax liabilities or deferred tax asset valuation allowance. As a result of the implementation of FIN 48 (ASC 740-10), the Company made a comprehensive review of its portfolio of tax positions in accordance with recognition standards established by FIN 48 (ASC 740-10). The Company recognized no material adjustments to liabilities or shareholder's equity as a result of the implementation. The adoption of FIN 48 did not have a material impact on the Company's unaudited consolidated financial statements. Enterprise income tax is determined under the Provisional Regulations of PRC Concerning Income Tax on Enterprises promulgated by the PRC, income tax is payable by enterprises at a rate of 25% of their taxable income. P. Earnings per share Basic earnings per common share is computed by using net income divided by the weighted average number of shares of common stock outstanding for the periods presented. Diluted earnings per share is computed by dividing net income by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding for the periods presented. Q. Reclassification The comparative figures have been reclassified to conform to current year presentation. R. Recently adopted accounting pronouncements The FASB has issued Accounting Standards Update (ASU) No. 2019-01, Leases (Topic 842): Codification Improvements. The new ASU aligns the guidance for fair value of the underlying asset by lessors that are not manufacturers or dealers in Topic 842 with that of existing guidance. As a result, the fair value of the underlying asset at lease commencement is its cost, reflecting any volume or trade discounts that may apply. However, if there has been a significant lapse of time between when the underlying asset is acquired and when the lease commences, the definition of fair value (in Topic 820, Fair Value Measurement) should be applied. The ASU also requires lessors within the scope of Topic 942, Financial Services—Depository and Lending, to present all "principal payments received under leases" within investing activities. Finally, the ASU exempts both lessees and lessors from having to provide certain interim disclosures in the fiscal year in which a company adopts the new leases standard. We do not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2019 | |
Receivables, Net, Current [Abstract] | |
ACCOUNTS RECEIVABLE, NET | NOTE 3. ACCOUNTS RECEIVABLE, NET December 31 2019 2018 Accounts receivable $ 7,308,224 $ 8,237,369 Less: allowance for doubtful debts 2,724,389 24,354 $ 4,583,835 $ 8,213,015 The Company experienced $2,700,035 and $nil bad debts record in other income(expense) during the years ended December 31, 2019 and 2018. The allowance for doubtful debts was derived from two years old unreimbursed exceed insurance claim submitted by the Company to the Harbin Medical Insurance Management Center. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 4. INVENTORIES At December 31, 2019 and 2018, inventories consist of the following: December 31 2019 2018 Western medicine $ 554,414 $ 809,499 Chinese herbal medicine 37,621 29,796 Medical material 475,916 321,477 Other material 4,790 3,073 $ 1,072,741 $ 1,163,845 |
Prepayment
Prepayment | 12 Months Ended |
Dec. 31, 2019 | |
Prepaid Expense, Current [Abstract] | |
PREPAYMENT | NOTE 5. PREPAYMENT At December 31, 2019 and 2018, prepayment consists of the following: December 31 2019 2018 Deposits on medical equipment $ 744,569 $ 1,297,411 Heating fees 175,736 135,035 Others 381,046 393,768 $ 1,301,351 $ 1,826,214 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 6. PROPERTY AND EQUIPMENT At December 31, 2019 and 2018, property and equipment, at cost, consist of: December 31, 2019 2018 Transportation equipment $ 1,184,896 $ 1,000,303 Medical equipment 17,291,984 15,001,892 Electrical equipment 1,842,552 1,649,229 Office equipment and other 964,669 813,635 Buildings 23,700,288 24,011,797 Software 185,043 138,366 Total fixed assets at cost 45,169,432 42,615,222 Accumulated depreciation (7,021,013 ) (4,891,253 ) Total fixed assets, net $ 38,148,419 $ 37,723,969 Reclass to Right-of-use assets (15,309,797 ) - Depreciation expense was $2,212,022 and $1,764,765 for the years ended December 31, 2019 and 2018, respectively. |
Long Term Deferred Expenses
Long Term Deferred Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Expenses [Abstract] | |
LONG TERM DEFERRED EXPENSES | NOTE 7. LONG TERM DEFERRED EXPENSES On May 7, 2015, July 3, 2015 and October 16, 2015, Jiarun entered into three lease agreements to lease medical equipment from Hair Finance Leasing (China) Co., Ltd. ("Hair"), a third party, for a five-year period, in which Jiarun is required to pay a consulting fee to Hair for the services provided over the five years. During the year ended December 31, 2018, the Company paid approximately $1.6 million for the decoration of its outpatient building and the two Branch Hospitals. The consulting and decoration fees paid but attributable to the current and subsequent accounting periods were accounted for as deferred expenses and long term deferred expenses. The current portions of the prepaid consulting and decoration fees were recorded as deferred expenses of $257,203 and 291,104 as of December 31, 2019 and 2018. The long-term deferred expenses were $2,978,936 and $1,238,455 as of December 31, 2019 and 2018. The Company recorded consulting fees of $65,306 and $68,193, and decoration fees of $224,485 and $149,105 for the year ended December 31, 2019 and 2018, respectively. |
Right-of-Use Assets and Lease L
Right-of-Use Assets and Lease Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
RIGHT-OF-USE ASSETS AND LEASE LIABILITIES | NOTE 8. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES On January 1, 2019, the Company adopted Accounting Standards Codification ("ASC") Topic 842, "Leases" ("new lease standard"). The new lease standard was adopted using the optional transition method approach that allows for the cumulative effect adjustment to be recorded without restating prior periods. The Company has elected the practical expedient package related to the identification, classification and accounting for initial direct costs whereby prior conclusions do not have to be reassessed for leases that commenced before the effective date. As the Company will not reassess such conclusions, the Company has not adopted the practical expedient to use hindsight to determine the likelihood of whether a lease will be extended or terminated or whether a purchase option will be exercised. Finance lease On June 5, 2013, Jiarun entered into a lease agreement to lease its hospital building from Harbin Baiyi Real Estate Development Co., Ltd ("the Lessor"), which is owned by Junsheng Zhang, a related party. The Lease has a term of 30 years, requiring annual prepayments of a rent of RMB7,000,000. The first payment was made on September 1, 2014. At the end of the leasing period, a final payment will be made to settle the total leasing amount. Both parties agreed for Jiarun to pay RMB3,000,000 as deposit at the execution of the Leasing agreement, which will be deducted from the final rental settlement. In accordance to accounting principles and treatment, this payment was booked as deposit in our accounts. The Lessor shall return the premium for lease to Jiarun at expiration of the Contract or pledge the deposit as part of rents for the last period or periods in 2043. The implicit interest rate, which determined the rental fee after fair value was amortized, was calculated at 6.55%, which is the benchmark interest rate announced from The People's Bank of China. After the completion of all payments, the ownership of the lease item will be transferred to Jiarun. The leasing agreement for our hospital building contains the following provisions: ● Rental payments of RMB7,000,000 (equivalent to $1,004,593) per year, payable at the beginning of September. ● An option allowing the lessor to extend the lease for thirty years beyond the last renewal option exercised by the Company. ● A guarantee by the Company that the lessor will realize $nil from selling the asset at the expiration of the lease This lease is a capital lease because its term (30 years) exceeds 75% of the building's estimated economic life. In addition, the present value ($15,185,032) of the minimum lease payments exceeds 90% of the fair value of the building ($15,721,295). ● Accumulated annual amounts resulting from applying an interest rate of 6.55% to the balance of the lease obligation at the beginning of each year. The lease obligation is increased by the amount of the prior year's interest, the amount of the net rental payment at the beginning of each year; and this amount represents the guaranteed residual value at the end of the lease term. On May 7, 2015, July 3, 2015, October 16, 2015, April 6, 2016, November 25, 2016, April 5 2017 and May 25, 2019 Jiarun entered into several lease agreements to lease medical equipment and an elevator from three lease finance companies, which are all unrelated third parties, for three to five-year periods, in which Jiarun is required to make monthly or quarterly payments toward the leases. The Company was also required to pay deposits up front, which deposits will later be offset against the last quarterly payment. The medical equipment and elevator will be transferred to Jiarun upon the completion of the agreement. On March 25, 2019 Jiarun entered into a sale and leaseback agreement for the sale-leaseback of properties from Haitong Hengxin International Leasing Company Limited, with a collective net value of $2,609,047. Operating lease In August 2017 JHCC leased office space under non-cancellable operating lease agreements. Under terms of the lease agreement, from August 2017, JHCC is committed to make lease payments of approximately $36,881 per year for 5 years. This office is used for outpatient services by 2nd Branch Hospital. In December 2017 JHCC leased office space under non-cancellable operating lease agreements. Under terms of the lease agreement, from December 2017, JHCC is committed to make lease payments of approximately $68,128 per year for 5 years. This office is used by 1 st The Company's adoption of the new lease standard included new processes and controls regarding asset financing transactions, financial reporting and a system-related implementation required for the new lease standard. The Company's accounting for finance leases (formerly referred to as capital leases prior to the adoption of the new lease standard) remained substantially unchanged. The impact of the adoption of the new lease standard included the recognition of right-of-use ("ROU") assets and lease liabilities. The adoption of the new lease standard resulted in additional net lease assets and net lease liabilities of approximately $15.64 million and $15.98 million, respectively, as of December 31, 2019. As of December 31, 2019, the Company has the following amounts recorded on the Company's unaudited condensed consolidated balance sheet: December 31, Assets Operating lease assets $ 331,693 Finance lease assets 15,309,796 Total $ 15,641,489 Liabilities Current Operating lease liabilities 111,414 Finance lease liabilities 2,569,007 Long-term Operating lease liabilities 220,279 Finance lease liabilities 13,075,654 Total $ 15,976,354 The future minimum lease payments for annual capital lease obligation as of December 31, 2019 are as follows: Year Amounts 2020 $ 2,243,062 2021 1,462,976 2022 445,398 Thereafter 11,493,225 Total $ 15,644,661 The Company recorded finance interest lease fees of $1,166,100 and $1,178,074 for the year ended December 31, 2019 and 2018. Future annual minimum lease payments for non-cancellable operating leases are as follows: Year ending December 31 Amount $ 2020 111,414 2021 122,038 2022 98,241 331,693 The Company recorded operating lease expense of $124,763 and $109,326 for the year ended December 31, 2019. At December 31, 2019 right-of-use assets consist of: December 31, 2019 Operating Finance Total Lease assets $ 432,892 $ 16,390,259 $ 16,823,151 Accumulated amortization (101,199 ) (1,080,463 ) (1,181,662 ) Total right-of-use assets, net $ 331,693 $ 15,309,796 $ 15,641,489 The Company recorded finance lease amortization expense of $1,080,463 and $nil in depreciation and amortization for the year ended December 31, 2019 and 2018, respectively. For the year ended December 31, 2019, the amount of depreciation and amortization was $2,212,022, also included general property and equipment depreciation of $1,131,559. The Company recorded operating lease expense of $124,763 and $109,26 for the year ended December 31, 2019 and 2018, including operating lease amortization expense of $101,199 and $nil for the year ended December 31, 2019 and 2018, respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Investments, All Other Investments [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 9. DERIVATIVE FINANCIAL INSTRUMENTS Derivative Financial Instruments The Company has adopted the provisions of ASC subtopic 825-10, Financial Instruments Debt derivatives – During 2019 the Company satisfied the Note issued to Lbrys Fund, LP. At December 31, 2019, the Company marked to market the fair value of the other two debt derivatives and determined a fair value of $774,567. The Company recorded a loss from issuance expense and change in fair value of debt derivatives of $392,286 and $-60,219 for the year ended December 31, 2019. The fair value of the embedded derivatives was determined using Monte Carlo simulation "MC simulation" method and Binomial Option Pricing Model based on the following assumptions: (1) dividend yield of 0%, (2) expected volatility of 21.22% and 48.25%, (3) weighted average risk-free interest rate of 1.66% and 1.89% (4) expected life of 0.04 and 0.33 year, and (5) the quoted market price of the Company's common stock at each valuation date. At December 31, 2018, the Company had no debt derivatives. Warrant liabilities At December 31, 2019, the Company marked to market the fair value of the warrant liability and determined a fair value of $110,840. The Company recorded a loss from issuance expense and change in fair value of warrant liability of $152,481 and $-41,642 for the year ended December 31, 2019. The fair value of the warrant liability was determined using Binomial Option Pricing Model based on the following assumptions: (1) dividend yield of 0%, (2) expected volatility of 54,62% and 51.25%, (3) weighted average risk-free interest rate of 1.679% and 1.654 (4) expected life of 4.42 and 2.58 years, and (5) the quoted market price of the Company's common stock at each valuation date. |
Non-controlling Interests
Non-controlling Interests | 12 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
NON-CONTROLLING INTERESTS | NOTE 10. NON-CONTROLLING INTERESTS Jiarun is the Company's majority-owned subsidiary, which is consolidated in the Company's financial statements with a non-controlling interest (NCI) recognized. The Company holds 70% interest of Jiarun as of December 31, 2019 and 2018. As of December 31, 2019 and 2018, NCI in the consolidated balance sheet was $8,168,613 and $7,895,376, respectively. For the year ended December 31, 2019, the comprehensive income attributable to shareholders' equity and NCI is $634,297 and $273,237, respectively. For the year ended December 31, 2018, the comprehensive income attributable to shareholders' equity and NCIs is $1,103,381 and $556,333, respectively. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2019 | |
Revenue: | |
REVENUE | NOTE 11. REVENUE The Company's revenue consists of medicine sales and patient care revenue. For the Year Ended 2019 2018 Medicine: Western medicine $ 8,331,289 $ 8,613,196 Chinese medicine 1,398,311 1,753,625 Herbal medicine 1,048,639 816,309 Total medicine $ 10,778,239 $ 11,183,130 Patient services: Medical consulting $ 9,636,511 $ 8,720,373 Medical treatment 9,941,595 8,106,483 Others 1,107,088 392,773 Total patient services $ 20,685,194 $ 17,219,629 $ 31,463,433 $ 28,402,759 |
Income Tax Expense
Income Tax Expense | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX EXPENSE | NOTE 12. INCOME TAX EXPENSE The Company uses the asset-liability method of accounting for income taxes prescribed by ASC 740 Income Taxes. The Company and its subsidiaries each file their taxes individually. United States JRSS is subject to the United States of America tax law at tax rate of 21%. No provision for the US federal income taxes has been made as the Company had no US taxable income for the periods presented, and its earnings are planned to be reinvested indefinitely into the operations of the Company in the PRC. The following table shows the components of the allowance for US income tax recorded for 2019: Amounts Loss before income tax $ (384,060 ) Tax rate at 21% (80,653 ) Disallowed tax losses 80,653 Income tax expense $ - BVI JHCL was incorporated in the BVI and, under the current laws of the BVI, it is not subject to income tax. Hong Kong Runteng was incorporated in Hong Kong and is subject to Hong Kong profits tax. Runteng is subject to Hong Kong taxation on its activities conducted in Hong Kong and income arising in or derived from Hong Kong. The applicable statutory tax rate is 16.5%. The following table shows the components of the allowance for Hong Kong income tax recorded for 2019: Amounts Loss before income tax $ (17,377 ) Tax rate at 16.5% (2,861 ) Disallowed tax losses 2,861 Income tax expense $ - PRC Corporate Income Tax (CIT) is determined under the Provisional Regulations of PRC Concerning Income Tax on Enterprises promulgated by the PRC, income tax is payable by enterprises at a rate of 25% of their taxable income. The following table shows the components of the allowance for PRC income tax recorded for 2019: Amounts Income tax expense $ 25,084 Income tax: 2019 deferred 632,615 Tax expense from continuing operation $ 657,699 Reconciliation: Amounts Income tax at statutory rate $ 657,699 Tax expense from continuing operation $ 657,699 According to the PRC "Notice on Preferential Corporate Income Tax (CIT) Treatment for Eligible Equipment or Machinery (Cai Shui [2018] No. 54)", a 100% immediate tax deduction for CIT purposes is allowed on the purchase of eligible equipment on the condition that the unit price of each item of equipment or machinery is individually less than RMB 5 million. Depreciation for tax purposes is not required. Basis differences between tax and GAAP for depreciation of property and equipment exist because in 2018 the Company purchased Eligible Equipment for RMB 21.32 million, with $632,615 deferred income tax, creating differences between the tax treatment mandated by the Chinese government and GAAP tax treatment. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 13. RELATED PARTY TRANSACTIONS The following is the list of the related parties with which the Company had transactions in the past two years: (a) Junsheng Zhang, the Chairman of the Company (b) Harbin Baiyi Real Estate Development Co., Ltd, owned by Junsheng Zhang (c) Harbin Jiarun Pharmacy Co., Ltd, owned by Junsheng Zhang (d) Heilongjiang Province Runjia Medical Equipment Company Limited, owned by Junsheng Zhang (e) Jiarun Super Market Co., Ltd,. owned by Junsheng Zhang (f) Harbin Qi-run Pharmacy Limited, owned by Junsheng Zhang (g) Yanhua Xing and Weiguang Song, the former shareholders of JHCL Amount due from related parties Amount due from related parties consisted of the following as of the periods indicated: December 31, Name of related parties 2019 2018 Harbin Baiyi Real Estate Development Co., Ltd, $ - $ 99,811 Junsheng Zhang - 46,500 Yanhua Xing - 2,450 Weiguang Song - 1,050 $ - $ 149,811 Amount due from Baiyi mainly represented the deposit for the outpatient building decoration. The Company had paid a deposit of $99,811 in 2018. Amount due from Junsheng Zhang, Yanhua Xing and Weiguang Song, who are the prior shareholders of JHCL, was mainly for the paid-in capital to which they had committed. The amount due from related parties became $ Nil in 2019. Amount due to related parties Amount due to related parties consisted of the following as of the periods indicated: December 31, Name of related parties 2019 2018 Harbin Jiarun Pharmacy Co., Ltd $ - $ 1,211 Heilongjiang Province Runjia Medical Equipment Co., Ltd 4,306 1,614 Jiarun Super Market Co., Ltd. - 39,042 Harbin Baiyi Real Estate Development Co., Ltd, 1,043,131 - Harbin Qi-run Pharmacy Co., Ltd - 17,280 Junsheng Zhang 747,103 50,000 $ 1,794,540 $ 109,147 Amount due to Harbin Jiarun Pharmacy Co., Ltd., Harbin Qi-run Pharmacy Co., Ltd. And Heilongjiang Province Runjia Medical Equipment Company Limited were mainly the balance due for purchase of medicine and medical material from these three companies. Amount due to Baiyi mainly represented the debt for the inpatient and outpatient building extension decoration and beauty center decoration. Amounts due to Junsheng Zhang represented amounts paid by Mr. Zhang for the daily operation of the company. Related parties' transactions Purchase of medicine and medical material from related parties consisted of the following for the periods indicated: For the Year ended Name of related parties 2019 2018 Harbin Jiarun Pharmacy Co., Ltd $ 86,304 $ 229,498 Heilongjiang Province Runjia Medical Equipment Co., Ltd 7,377 5,965 Harbin Qi-run Pharmacy Co., Ltd - 28,770 $ 93,681 $ 264,233 Deposits for capital leases and capital lease obligations On June 5, 2013, Jiarun entered into a Lease Agreement to lease its hospital complex from Harbin Baiyi Real Estate Development Co., Ltd, which is owned by Junsheng Zhang, a related party. As of December 31, 2019, the Company had deposits for capital leases and capital lease obligations of $430,540 and $12,253,578, respectively. As of December 31, 2018, the Company had deposits for capital leases and capital lease obligations of $436,199 and $12,817,373, respectively. |
Basic and Diluted Earnings Per
Basic and Diluted Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
BASIC AND DILUTED EARNINGS PER SHARE | NOTE 14. BASIC AND DILUTED EARNINGS PER SHARE Basic net income per share is computed using the weighted average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares comprise shares issuable upon the exercise of share-based awards, using the treasury stock method. The reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for income from continuing operations is shown as follows: December 31 2019 2018 Numerator: Net income available to common stockholders $ 888,061 $ 1,992,970 Denominator: Basic weighted-average number of shares outstanding 16,757,890 14,948,397 Diluted weighted-average number of shares outstanding 16,783,362 14,948,397 Net income per share: Basic $ 0.0530 $ 0.1333 Diluted 0.0529 0.1333 |
Contingencies and Commitment
Contingencies and Commitment | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES AND COMMITMENT | NOTE 15. CONTINGENCIES AND COMMITMENT Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company's management and legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company's legal counsel 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. There was no contingency of this type as of December 31, 2019 and 2018. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company's financial statements. If the assessment indicates that a potential 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. There was no contingency of this type as of December 31, 2019 and 2018. Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed. |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2019 | |
Common Stock [Abstract] | |
COMMON STOCK | NOTE 16. COMMON STOCK During 2019 the Company issued 2,994,999 shares of restricted common stock for 20% Stock dividends, and issued 6000 shares of restricted common stock for Employee Compensation. These issued was made pursuant to SEC Regulation S to eight non-US persons during 2019, and accordingly was exempt from registration. |
Going Concern
Going Concern | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN | NOTE 17. GOING CONCERN As reflected in the accompanying consolidated financial statements, the Company had a $6,788,652 negative retained earnings or accumulated deficit as of December 31, 2019; in addition, the Company's total current liabilities exceeded its current assets by $1,401,549. These factors raised substantial doubt about its ability to continue as a going concern. In view of the matters described above, recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheet is dependent upon continued operations of the Company, which in turn is dependent upon the Company's ability to raise additional capital, obtain financing and succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. To continue as a going concern, the Company is actively pursuing additional funding and strategic partners to enable it to implement its business plan. In addition, the Company is also working to devote more efforts to improve its operation and generate more profits. Management believes that these actions will allow the Company to continue its operations through the next fiscal year. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 18. SUBSEQUENT EVENTS On January 23, 2020, the Company issued 38,332 shares to Labrys Fund, LP in full satisfaction of a common stock purchase warrant that the Company had sold to Labrys Fund, LP during 2019. On February 11, 2020, the Company fully satisfied the Promissory Note that it had issued to Harbor Gates Capital LLC in August 2019. On February 27, 2020, Auctus Fund, LLC converted into 2,000 shares of the Company's common stock with $2,400 in accrued interest and fees arising under the Promissory Note it had purchase from the Company in July 2019. On April 30, 2020, the Company fully satisfied the Promissory Note that it issued to Auctus Fund, LLC in July 2019 The outbreak of COVID-19 is spreading over multiple countries and becoming the current pandemic, the national and local government agents have imposed serious restrictions on travel, business operations and even locked-down the city in order to encounter with the virus, as a result, the Company's revenue and income for the first six months of 2020 will be anticipated substantially lower than that were reported for the first six months of 2019. The Management of the Company determined that there were no other material reportable subsequent events to be required to disclose except the above mentioned items. |
Summaries of Significant Acco_2
Summaries of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of presentation | A. Basis of presentation The consolidated financial statements have been prepared in accordance with the United States generally accepted accounting principles ("U.S. GAAP"). |
Principles of consolidation | B. Principles of consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All inter-company transactions and balances have been eliminated in consolidation. Non-controlling interests represent the equity interest in Jiarun that is not attributable to the Company. Non-controlling interest is reported in the consolidated financial position within equity, separate from the Company's equity. Net income or loss and comprehensive income or loss are attributed to the Company's and the non-controlling interest. |
Use of estimates | C. Use of estimates The preparation of audited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ from those estimates. Significant items subject to such estimates and assumptions include valuation allowances for receivables and recoverability of carrying amount and the estimated useful lives of long-lived assets. These estimates are often based on complex judgments and assumptions that management believes to be reasonable but are inherently uncertain and unpredictable. Actual results could differ from these estimates. |
Functional currency and foreign currency translation | D. Functional currency and foreign currency translation JRSS and JHCL's functional currency is the United States dollar ("US$"). Runteng's functional currency is the Hong Kong dollar ("HK$"). The functional currency of Jiarun is the Renminbi ("RMB"). The Company's reporting currency is US$. Assets and liabilities of Runteng and Jiarun are translated at the current exchange rate at the balance sheet dates, revenues and expenses are translated at the average exchange rates during the reporting periods, and equity accounts are translated at historical rates. Translation adjustments are reported in other comprehensive income. The exchange rates used for foreign currency translation are as follows: For the Year Ended 2019 2018 (USD to RMB/USD to HKD) ( USD to RMB/USD to HKD Assets and liabilities period end exchange rate 6.9680 / 7.7876 6.8776 / 7.8317 Revenue and expenses period average 6.9088 / 7.8351 6.6163 / 7.8375 |
Concentration of Credit Risk | E. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk are cash, accounts receivable and other receivables arising from its normal business activities. The Company places its cash in what it believes to be credit-worthy financial institutions. The majority of sales are either cash receipt in advance or cash receipt upon delivery. For the years ended December 31, 2019 and 2018, no customer accounted for more than 10% of net revenue. As of December 31, 2019 and 2018, three and three customers accounted for more than 5% of net accounts receivable, respectively. For those credit sales, the Company routinely assesses the financial strength of its customers and, based upon factors surrounding the credit risk, establishes an allowance, if required, for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowance is limited. |
Cash and cash equivalents | F. Cash and cash equivalents Cash and cash equivalents include all cash, deposits in banks and other liquid investments with initial maturities of three months or less. |
Accounts receivable | G. Accounts receivable Accounts receivable are recorded at net realizable value consisting of the carrying amount less an allowance for uncollectible accounts as needed. The allowance for doubtful accounts is the Company's best estimate of the amount of probable credit losses in the Company's existing accounts receivable. The Company determines the allowance based on aging data, historical collection experience, customer specific facts and economic conditions. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. |
Inventories | H. Inventories Inventories, consisting principally of medicines, are stated at the lower of cost or market using the first-in, first-out method ("FIFO"). This policy requires the Company to make estimates regarding the market value of inventory, including an assessment of excess or obsolete inventory. The Company determines excess or obsolete inventory based on an estimate of the future demand and estimated selling prices for its products. |
Construction in progress | I. Construction in progress Construction in progress represents the new hospital painting and decoration costs. And all direct costs relating to the polishing and decoration are capitalized as construction in progress. No depreciation is provided in respect of construction in progress. |
Property and equipment | J. Property and equipment Property and equipment are stated at cost. Expenditures for maintenance and repairs are charged to operations when incurred, while additions and betterments are capitalized. Depreciation is recorded on a straight-line basis reflective of the useful lives of the assets. When assets are retired or disposed, the asset's original cost and related accumulated depreciation are eliminated from accounts and any gain or loss is reflected in income. The estimated useful lives for property and equipment categories are as follows: Buildings and improvement 10-40 years Medical equipment 5-15 years Transportation instrument 5-10 years Office equipment 5-10 years Electronic equipment 5-10 years Software 5-10 years |
Leases | K. Leases In February 2016, the FASB issued ASU 2016-02–Leases (Topic 842), which increases transparency and comparability among organizations by recognizing right-of-use ("ROU") lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The ASU maintains a distinction between finance leases and operating leases, which is substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous lease guidance. Retaining this distinction allows the recognition, measurement and presentation of expenses and cash flows arising from a lease to remain similar to the previous accounting treatment. A lessee is permitted to make an accounting policy election by class of underlying asset to exclude from balance sheet recognition any lease assets and lease liabilities with a term of 12 months or less, and instead to recognize lease expense on a straight-line basis over the lease term. For both financing and operating leases, the ROU asset and lease liability is initially measured at the present value of the lease payments in the consolidated balance sheet. In July 2018, the FASB issued ASU 2018-11 which provides entities with the option to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, if necessary. As discussed in Note 8, we adopted ASU 2016-02–Leases (Topic 842) effective January 1, 2019 utilizing the transition option provided by ASU 2018-11. |
Fair Value Measurement | L. Fair Value Measurement The Company applies the provisions of ASC Subtopic 820-10, Fair Value Measurements, for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements. ASC 820 also establishes a framework for measuring fair value and expands disclosures about fair value measurements. Fair value is defined as the price that would be received when selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining the fair value for the assets and liabilities required or permitted to be recorded, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes three levels of inputs that may be used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs that is observable, either directly or indirectly, for substantially the full term of the asset or liability; Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis: Carrying Value at Fair Value Measurement at 2019 Level 1 Level 2 Level 3 Convertible Note $ 774,567 $ - $ - $ 774,567 Warrant liability $ 110,840 $ - $ - $ 110,840 A summary of changes in Warrant liability for the period ended December 31, 2019 was as follows: Balance at January 1, 2019 $ - Issuance of warrants on May 30, 2019 77,995 Issuance of warrants on July 30, 2019 74,486 Change in fair value of warrant liability (41,641 ) Balance at December 31, 2019 110,840 The fair value of the outstanding warrants was calculated using the Binomial Option Pricing Model with the following assumptions at inception and on subsequent valuation date: December 31, 2019 Warrants Labrys Auctus Market price per share (USD/share) $ 6.5 $ 6.5 Exercise price (USD/share) 10.00 6.00 Risk free rate 1.679 % 1.654 % Dividend yield 0 % 0 % Expected term/Contractual life (years) 4.42 2.58 Expected volatility 54.62 % 51.25 % A summary of changes in Convertible Note for the period ended December 31, 2019 was as follows: Balance at January 1, 2019 $ - Issuance of Convertible Note on July 15, 2019 192,500 Issuance of Convertible Note on July 30, 2019 250,000 Fair value loss on issuance of convertible notes 392,286 Change in fair value of convertible notes (60,219 ) Balance at December 31, 2019 774,567 The fair value of the outstanding Convertible Note was calculated using Monte Carlo simulation "MC simulation" method and the Binomial Option Pricing Model with the following assumptions at inception and on subsequent valuation date: December 31, 2019 Convertible Note Harbor Auctus 2 Market price per share (USD/share) $ 6.5 $ 6.5 Exercise price (USD/share) $ 5 60% on lowest trading price Risk free rate 1.663 % 1.89 % Dividend yield 0 % 0 % Expected term/Contractual life (years) 0.04 0.33 Expected volatility 21.22 % 48.25 % In May and July, 2019, the Company issued three convertible promissory notes, one each to Labrys Fund, LP, Auctus Fund, LLC and Harbor Gates Capital, LLC. On October 31, 2019, the Company repaid the convertible promissory note issued to Labrys Fund, LP. Therefore, the Labrys' Convertible Note has no fair value as of each subsequent reporting date. 1. The fair value of the outstanding Convertible Note issued to Harbor Gates was calculated using Binomial Option Pricing Model 2. The fair value of the outstanding Convertible Note issued to Auctus was calculated using Monte Carlo simulation "MC simulation" method. Cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities are reflected in the accompanying consolidated financial statements at amounts that approximate fair value because of the short-term nature of these instruments. The fair value of the Company's capital lease obligations also approximates carrying value as they bear interest at current market rates. |
Segment and geographic information | M. Segment and geographic information The Company is operating in one segment in accordance with the accounting guidance FASB ASC topic 280, "Segment Reporting". The company's revenues are from customers in People's Republic of China ("PRC"). All assets of the company are located in PRC. |
Revenue recognition | N. Revenue recognition The Company recognizes revenue when the amount of revenue can be reliably measured, it is probable that economic benefits will flow to the entity, and specific criteria have been met for each of the Company's activities as described below. Medicine sales Revenue from the sale of medicine is recognized when it is both earned and realized. The Company's policy is to recognize the sale of medicine when the title of the medicine, ownership and risk of loss have transferred to the purchasers, and collection of the sales proceeds is reasonably assured, all of which generally occur when the patient receives the medicine. Given the nature of this revenue source of the Company's business and the applicable rules guiding revenue recognition, the revenue recognition practices for the sale of medicine do not contain estimates that materially affect results of operations nor does the Company have any policy for return of products. Patient Services In accordance with the medical licenses under which Jiarun operates, the scope of its approved medical patient service includes medical consulting, surgery, obstetrics and gynecology, pediatrics, anesthesia, clinic laboratory, medical imaging, and traditional Chinese medicine. Patient service revenue is recognized when it is both earned and realized. The Company's policy is to recognize patient service revenue when the medical service has been provided to the patient and collection of the revenue is reasonably assured. The Company provides services to both patients covered by social insurance and patients who are not covered by social insurance. The Company charges the same rates for patient services regardless of the coverage by social insurance. Patients who are not covered by social insurance are liable for the total cost of medical treatment. ● For out-patient medical services, revenue is recognized when the Company provides medical service to the patient. The Company collects payment before the patient leaves the hospital. ● For in-patient medical services, when a patient checks into the hospital, the Company estimates the approximate fee the patient will spend in the hospital based on patient's symptoms. At that time, the Company collects the estimated fees from the patient and records the payment as deposits received. During the in-patient services period, the Company recognizes revenue when the patient service is provided and deducts the cost of service from the deposit received. The Company records these transactions based on daily reports generated by the respective medical department. When medical services exceed patient deposits received the Company records revenue and accounts receivable when the patient services are provided. When a patient checks out from the hospital, the Company calculates and determines the remaining deposit, if any, and refunds the unused portion of the deposit to the patients. In the case where the patient has a balance in accounts receivable, accounts receivable are required to be paid in full at checkout. Patients covered by social insurance will receive a portion or full medical services reimbursed or paid by the social insurance agencies via prepaid cards or insurance claim settlement process. Settlement process The Company is a registered medical service vendor under the state social insurance system for various social insurance agencies; the insurance agencies include "Social Medical Insurance funded by PRC and Heilongjiang Province" and "Heilongjiang Province New Rural Cooperative Medical Care System". The Company utilizes an online system maintained by the social insurance agencies for patients who are covered by social insurance agencies. ● The Company records patients' information in the social insurance system at check in. The system determines the covered portion and amounts based on the information input to the system. ● At the time of check out, the Company collects payment for services the patients are liable for and records accounts receivable from the social insurance agencies for the portion of services covered by the social insurances. In the case that the patients have made payment during the in-patient services period, the Company refunds any amount in excess of the portion they are liable for. ● The Company is responsible for submitting supporting documents of patient services provided to the social insurance agencies for their review. The Company is also required to reconcile its records with the social insurance agencies once a month. Once the social insurance agencies approve the reconciliation, the insurance agencies will settle the accounts receivable balance in the next month following the approval. |
Income taxes | O. Income taxes The Company has adopted FASB ASC Topic 740, "Income Taxes," which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income 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 period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. In July 2006, the FASB issued FIN 48(ASC 740-10), Accounting for Uncertainty in Income Taxes-An Interpretation of FASB Statement No. 109 (ASC 740), which requires income tax positions to meet a more-likely-than-not recognition threshold to be recognized in the financial statements. Under FIN 48 (ASC 740-10), tax positions that previously failed to meet the more-likely-than-not threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The application of tax laws and regulations is subject to legal and factual interpretation, judgment and uncertainty. Tax laws and regulations themselves are subject to change as a result of changes in fiscal policy, changes in legislation, the evolution of regulations and court rulings. Therefore, the actual liability may be materially different from our estimates, which could result in the need to record additional tax liabilities or potentially reverse previously recorded tax liabilities or deferred tax asset valuation allowance. As a result of the implementation of FIN 48 (ASC 740-10), the Company made a comprehensive review of its portfolio of tax positions in accordance with recognition standards established by FIN 48 (ASC 740-10). The Company recognized no material adjustments to liabilities or shareholder's equity as a result of the implementation. The adoption of FIN 48 did not have a material impact on the Company's unaudited consolidated financial statements. Enterprise income tax is determined under the Provisional Regulations of PRC Concerning Income Tax on Enterprises promulgated by the PRC, income tax is payable by enterprises at a rate of 25% of their taxable income. |
Earnings per share | P. Earnings per share Basic earnings per common share is computed by using net income divided by the weighted average number of shares of common stock outstanding for the periods presented. Diluted earnings per share is computed by dividing net income by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding for the periods presented. |
Reclassification | Q. Reclassification The comparative figures have been reclassified to conform to current year presentation. |
Recently adopted accounting pronouncements | R. Recently adopted accounting pronouncements The FASB has issued Accounting Standards Update (ASU) No. 2019-01, Leases (Topic 842): Codification Improvements. The new ASU aligns the guidance for fair value of the underlying asset by lessors that are not manufacturers or dealers in Topic 842 with that of existing guidance. As a result, the fair value of the underlying asset at lease commencement is its cost, reflecting any volume or trade discounts that may apply. However, if there has been a significant lapse of time between when the underlying asset is acquired and when the lease commences, the definition of fair value (in Topic 820, Fair Value Measurement) should be applied. The ASU also requires lessors within the scope of Topic 942, Financial Services—Depository and Lending, to present all "principal payments received under leases" within investing activities. Finally, the ASU exempts both lessees and lessors from having to provide certain interim disclosures in the fiscal year in which a company adopts the new leases standard. We do not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows. |
Summaries of Significant Acco_3
Summaries of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of foreign currency translation | For the Year Ended 2019 2018 (USD to RMB/USD to HKD) ( USD to RMB/USD to HKD Assets and liabilities period end exchange rate 6.9680 / 7.7876 6.8776 / 7.8317 Revenue and expenses period average 6.9088 / 7.8351 6.6163 / 7.8375 |
Schedule of estimated useful lives for property and equipment categories | Buildings and improvement 10-40 years Medical equipment 5-15 years Transportation instrument 5-10 years Office equipment 5-10 years Electronic equipment 5-10 years Software 5-10 years |
Schedule of fair value hierarchy our financial assets and liabilities | Carrying Value at Fair Value Measurement at 2019 Level 1 Level 2 Level 3 Convertible Note $ 774,567 $ - $ - $ 774,567 Warrant liability $ 110,840 $ - $ - $ 110,840 |
Schedule of changes in warrant liability | Balance at January 1, 2019 $ - Issuance of warrants on May 30, 2019 77,995 Issuance of warrants on July 30, 2019 74,486 Change in fair value of warrant liability (41,641 ) Balance at December 31, 2019 110,840 |
Summary of changes in convertible note | Balance at January 1, 2019 $ - Issuance of Convertible Note on July 15, 2019 192,500 Issuance of Convertible Note on July 30, 2019 250,000 Fair value loss on issuance of convertible notes 392,286 Change in fair value of convertible notes (60,219 ) Balance at December 31, 2019 774,567 |
Convertible Note [Member] | |
Schedule of fair value of the outstanding warrants assumptions | December 31, 2019 Convertible Note Harbor Auctus 2 Market price per share (USD/share) $ 6.5 $ 6.5 Exercise price (USD/share) $ 5 60% on lowest trading price Risk free rate 1.663 % 1.89 % Dividend yield 0 % 0 % Expected term/Contractual life (years) 0.04 0.33 Expected volatility 21.22 % 48.25 % |
Warrant liability [Member] | |
Schedule of fair value of the outstanding warrants assumptions | December 31, 2019 Warrants Labrys Auctus Market price per share (USD/share) $ 6.5 $ 6.5 Exercise price (USD/share) 10.00 6.00 Risk free rate 1.679 % 1.654 % Dividend yield 0 % 0 % Expected term/Contractual life (years) 4.42 2.58 Expected volatility 54.62 % 51.25 % |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables, Net, Current [Abstract] | |
Schedule of accounts receivable net | December 31 2019 2018 Accounts receivable $ 7,308,224 $ 8,237,369 Less: allowance for doubtful debts 2,724,389 24,354 $ 4,583,835 $ 8,213,015 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | December 31 2019 2018 Western medicine $ 554,414 $ 809,499 Chinese herbal medicine 37,621 29,796 Medical material 475,916 321,477 Other material 4,790 3,073 $ 1,072,741 $ 1,163,845 |
Prepayment (Tables)
Prepayment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Prepaid Expense, Current [Abstract] | |
Schedule of prepayment | December 31 2019 2018 Deposits on medical equipment $ 744,569 $ 1,297,411 Heating fees 175,736 135,035 Others 381,046 393,768 $ 1,301,351 $ 1,826,214 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | December 31, 2019 2018 Transportation equipment $ 1,184,896 $ 1,000,303 Medical equipment 17,291,984 15,001,892 Electrical equipment 1,842,552 1,649,229 Office equipment and other 964,669 813,635 Buildings 23,700,288 24,011,797 Software 185,043 138,366 Total fixed assets at cost 45,169,432 42,615,222 Accumulated depreciation (7,021,013 ) (4,891,253 ) Total fixed assets, net $ 38,148,419 $ 37,723,969 Reclass to Right-of-use assets (15,309,797 ) - |
Right-of-Use Assets and Lease_2
Right-of-Use Assets and Lease Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of unaudited condensed consolidated balance sheet | December 31, Assets Operating lease assets $ 331,693 Finance lease assets 15,309,796 Total $ 15,641,489 Liabilities Current Operating lease liabilities 111,414 Finance lease liabilities 2,569,007 Long-term Operating lease liabilities 220,279 Finance lease liabilities 13,075,654 Total $ 15,976,354 |
Schedule of future minimum lease payments for annual capital lease obligation | Year Amounts 2020 $ 2,243,062 2021 1,462,976 2022 445,398 Thereafter 11,493,225 Total $ 15,644,661 |
Schedule of Future annual minimum lease payments, for non-cancellable operating leases | Year ending December 31 Amount $ 2020 111,414 2021 122,038 2022 98,241 331,693 |
Schedule of right-of-use assets | December 31, 2019 Operating Finance Total Lease assets $ 432,892 $ 16,390,259 $ 16,823,151 Accumulated amortization (101,199 ) (1,080,463 ) (1,181,662 ) Total right-of-use assets, net $ 331,693 $ 15,309,796 $ 15,641,489 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue | |
Schedule of revenue | For the Year Ended 2019 2018 Medicine: Western medicine $ 8,331,289 $ 8,613,196 Chinese medicine 1,398,311 1,753,625 Herbal medicine 1,048,639 816,309 Total medicine $ 10,778,239 $ 11,183,130 Patient services: Medical consulting $ 9,636,511 $ 8,720,373 Medical treatment 9,941,595 8,106,483 Others 1,107,088 392,773 Total patient services $ 20,685,194 $ 17,219,629 $ 31,463,433 $ 28,402,759 |
Income Tax Expense (Tables)
Income Tax Expense (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Expense | |
Schedule of the components of the allowance for Hong Kong and PRC income tax recorded for 2019 | The following table shows the components of the allowance for US income tax recorded for 2019: Amounts Loss before income tax $ (384,060 ) Tax rate at 21% (80,653 ) Disallowed tax losses 80,653 Income tax expense $ - The following table shows the components of the allowance for Hong Kong income tax recorded for 2019: Amounts Loss before income tax $ (17,377 ) Tax rate at 16.5% (2,861 ) Disallowed tax losses 2,861 Income tax expense $ - The following table shows the components of the allowance for PRC income tax recorded for 2019: Amounts Income tax expense $ 25,084 Income tax: 2019 deferred 632,615 Tax expense from continuing operation $ 657,699 Reconciliation: Amounts Income tax at statutory rate $ 657,699 Tax expense from continuing operation $ 657,699 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of due from related parties | December 31, Name of related parties 2019 2018 Harbin Baiyi Real Estate Development Co., Ltd, $ - $ 99,811 Junsheng Zhang - 46,500 Yanhua Xing - 2,450 Weiguang Song - 1,050 $ - $ 149,811 |
Schedule of due to related parties | December 31, Name of related parties 2019 2018 Harbin Jiarun Pharmacy Co., Ltd $ - $ 1,211 Heilongjiang Province Runjia Medical Equipment Co., Ltd 4,306 1,614 Jiarun Super Market Co., Ltd. - 39,042 Harbin Baiyi Real Estate Development Co., Ltd, 1,043,131 - Harbin Qi-run Pharmacy Co., Ltd - 17,280 Junsheng Zhang 747,103 50,000 $ 1,794,540 $ 109,147 |
Schedule of purchases from related party transactions | For the Year ended Name of related parties 2019 2018 Harbin Jiarun Pharmacy Co., Ltd $ 86,304 $ 229,498 Heilongjiang Province Runjia Medical Equipment Co., Ltd 7,377 5,965 Harbin Qi-run Pharmacy Co., Ltd - 28,770 $ 93,681 $ 264,233 |
Basic and Diluted Earnings Pe_2
Basic and Diluted Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings per share | December 31 2019 2018 Numerator: Net income available to common stockholders $ 888,061 $ 1,992,970 Denominator: Basic weighted-average number of shares outstanding 16,757,890 14,948,397 Diluted weighted-average number of shares outstanding 16,783,362 14,948,397 Net income per share: Basic $ 0.0530 $ 0.1333 Diluted 0.0529 0.1333 |
Description of Business and O_2
Description of Business and Organization (Details) | Jun. 01, 2013 | Jun. 30, 2013 | Dec. 31, 2019 | Dec. 31, 2013 |
Subsidiary, Runteng Medical Group Co., Ltd [Member] | ||||
Description of Business and Organization (Textual) | ||||
Interest, Ownership Percentage | 100.00% | |||
JRSIS Health Care Limited [Member] | ||||
Description of Business and Organization (Textual) | ||||
Interest, Ownership Percentage | 100.00% | |||
Harbin Jiarun Hospital Co., Ltd [Member] | ||||
Description of Business and Organization (Textual) | ||||
Joint venture investment in Jiarun | 70.00% | |||
Noncontrolling Interest, Ownership Percentage | 30.00% | |||
Equity, ownership percenage | 100.00% | |||
Supplemental agreement, description | The supplemental agreement signed between Junsheng Zhang and Runteng on June 1, 2013, the comprehensive income from Jiarun would be attributable to retained earnings and non-controlling interest for 70% and 30% respectively, from July 1, 2013. |
Summaries of Significant Acco_4
Summaries of Significant Accounting Policies (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
HKD [Member] | Revenue And Expenses [Member] | ||
Foreign currency translation | 7.8351 | 7.8375 |
Description of foreign currency translation | period average | period average |
HKD [Member] | Assets And Liabilities [Member] | ||
Foreign currency translation | 7.7876 | 7.8317 |
Description of foreign currency translation | period end exchange rate | period end exchange rate |
RMB [Member] | Revenue And Expenses [Member] | ||
Foreign currency translation | 6.9088 | 6.6163 |
Description of foreign currency translation | period average | period average |
RMB [Member] | Assets And Liabilities [Member] | ||
Foreign currency translation | 6.9680 | 6.8776 |
Description of foreign currency translation | period end exchange rate | period end exchange rate |
Summaries of Significant Acco_5
Summaries of Significant Accounting Policies (Details 1) | 12 Months Ended |
Dec. 31, 2019 | |
Minimum [Member] | Buildings and improvement [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives for property and equipment | 10 years |
Minimum [Member] | Medical equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives for property and equipment | 5 years |
Minimum [Member] | Transportation instrument [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives for property and equipment | 5 years |
Minimum [Member] | Office equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives for property and equipment | 5 years |
Minimum [Member] | Electronic equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives for property and equipment | 5 years |
Minimum [Member] | Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives for property and equipment | 5 years |
Maximum [Member] | Buildings and improvement [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives for property and equipment | 40 years |
Maximum [Member] | Medical equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives for property and equipment | 15 years |
Maximum [Member] | Transportation instrument [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives for property and equipment | 10 years |
Maximum [Member] | Office equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives for property and equipment | 10 years |
Maximum [Member] | Electronic equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives for property and equipment | 10 years |
Maximum [Member] | Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives for property and equipment | 10 years |
Summaries of Significant Acco_6
Summaries of Significant Accounting Policies (Details 2) - Recurring [Member] | Dec. 31, 2019USD ($) |
Warrant liability [Member] | |
Carrying Value | $ 110,840 |
Level 1 [Member] | Warrant liability [Member] | |
Carrying Value | |
Level 2 [Member] | Warrant liability [Member] | |
Carrying Value | |
Level 3 [Member] | Warrant liability [Member] | |
Carrying Value | 110,840 |
Convertible Note [Member] | |
Carrying Value | 774,567 |
Convertible Note [Member] | Level 1 [Member] | |
Carrying Value | |
Convertible Note [Member] | Level 2 [Member] | |
Carrying Value | |
Convertible Note [Member] | Level 3 [Member] | |
Carrying Value | $ 774,567 |
Summaries of Significant Acco_7
Summaries of Significant Accounting Policies (Details 3) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Accounting Policies [Abstract] | |
Balance at January 1, 2019 | |
Issuance of warrants on May 30, 2019 | 77,995 |
Issuance of warrants on July 30, 2019 | 74,486 |
Change in fair value of warrant liability | (41,641) |
Balance at December 31, 2019 | $ 110,840 |
Summaries of Significant Acco_8
Summaries of Significant Accounting Policies (Details 4) | 12 Months Ended |
Dec. 31, 2019$ / shares | |
Harbor Gates1 [Member] | Convertible Note [Member] | |
Market price per share (USD/share) | $ 6.5 |
Exercise price (USD/share) | $ 5 |
Risk free rate | 1.663% |
Dividend yield | 0.00% |
Expected term/Contractual life (years) | 15 days |
Expected volatility | 21.22% |
Auctus 2 [Member] | Convertible Note [Member] | |
Market price per share (USD/share) | $ 6.5 |
Exercise price (USD/share) | 60% on lowest trading price |
Risk free rate | 1.89% |
Dividend yield | 0.00% |
Expected term/Contractual life (years) | 3 months 29 days |
Expected volatility | 48.25% |
Warrants [Member] | Auctus [Member] | |
Market price per share (USD/share) | $ 6.5 |
Exercise price (USD/share) | $ 6 |
Risk free rate | 1.654% |
Dividend yield | 0.00% |
Expected term/Contractual life (years) | 2 years 9 months 29 days |
Expected volatility | 51.25% |
Warrants [Member] | Labrys [Member] | |
Market price per share (USD/share) | $ 6.5 |
Exercise price (USD/share) | $ 10 |
Risk free rate | 1.679% |
Dividend yield | 0.00% |
Expected term/Contractual life (years) | 4 years 5 months 1 day |
Expected volatility | 54.62% |
Summaries of Significant Acco_9
Summaries of Significant Accounting Policies (Details 5) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Accounting Policies [Abstract] | |
Balance at January 1, 2019 | |
Issuance of Convertible Note on July 15, 2019 | 192,500 |
Issuance of Convertible Note on July 30, 2019 | 250,000 |
Fair value loss on issuance of convertible notes | 392,286 |
Change in fair value of convertible notes | (60,219) |
Balance at December 31, 2019 | $ 774,567 |
Summaries of Significant Acc_10
Summaries of Significant Accounting Policies (Details Textual) | 12 Months Ended | |
Dec. 31, 2019CustomersSegment | Dec. 31, 2018Customers | |
Summary of Significant Accounting Policies (Textual) | ||
Number of segment | Segment | 1 | |
Accounts Receivable [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Concentration Risk, Percentage | 5.00% | 5.00% |
Number of customers | Customers | 3 | 3 |
Sales Revenue, Net [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Concentration Risk, Percentage | 10.00% | 10.00% |
People's Republic of China [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Effective income tax rate reconciliation, foreign income tax rate differential, percent | 25.00% |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables, Net, Current [Abstract] | ||
Accounts receivable | $ 7,308,224 | $ 8,237,369 |
Less: allowance for doubtful debts | 2,724,389 | 24,354 |
Accounts receivable, net | $ 4,583,835 | $ 8,213,015 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts Receivable, Net (Textual) | ||
Other income(expense) | $ 2,700,035 | |
Exceeded unreimbursed insurance claim | 2 years |
Inventories (Details)
Inventories (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory [Line Items] | ||
Total inventories | $ 1,072,741 | $ 1,163,845 |
Western medicine [Member] | ||
Inventory [Line Items] | ||
Total inventories | 554,414 | 809,499 |
Chinese herbal medicine [Member] | ||
Inventory [Line Items] | ||
Total inventories | 37,621 | 29,796 |
Medical material [Member] | ||
Inventory [Line Items] | ||
Total inventories | 475,916 | 321,477 |
Other material [Member] | ||
Inventory [Line Items] | ||
Total inventories | $ 4,790 | $ 3,073 |
Prepayment (Details)
Prepayment (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Prepaid Expenses Current [Line Items] | ||
Total prepayment | $ 1,301,351 | $ 1,826,214 |
Deposits on medical equipment [Member] | ||
Schedule Of Prepaid Expenses Current [Line Items] | ||
Total prepayment | 744,569 | 1,297,411 |
Heating fees [Member] | ||
Schedule Of Prepaid Expenses Current [Line Items] | ||
Total prepayment | 175,736 | 135,035 |
Others [Member] | ||
Schedule Of Prepaid Expenses Current [Line Items] | ||
Total prepayment | $ 381,046 | $ 393,768 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total fixed assets at cost | $ 45,169,432 | $ 42,615,222 |
Accumulated depreciation | (7,021,013) | (4,891,253) |
Total fixed assets, net | 22,838,622 | 37,723,969 |
Reclass to Right-of-use assets | (15,309,797) | |
Transportation equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets at cost | 1,184,896 | 1,000,303 |
Medical equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets at cost | 17,291,984 | 15,001,892 |
Electrical equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets at cost | 1,842,552 | 1,649,229 |
Office equipment and other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets at cost | 964,669 | 813,635 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets at cost | 23,700,288 | 24,011,797 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets at cost | $ 185,043 | $ 138,366 |
Property and Equipment (Detai_2
Property and Equipment (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property and Equipment (Textual) | ||
Depreciation expense | $ 2,212,022 | $ 1,764,765 |
Long Term Deferred Expenses (De
Long Term Deferred Expenses (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred expenses | $ 257,203 | $ 291,104 |
Long-term deferred expenses | 2,978,936 | 1,238,455 |
Consulting fees | 65,306 | 68,193 |
Decoration fees | $ 224,485 | 149,105 |
Hair Finance Leasing (China) Co., Ltd. [Member] | ||
Decoration fees | $ 1,600,000 | |
Lease agreements, description | On May 7, 2015, July 3, 2015 and October 16, 2015, Jiarun entered into three lease agreements to lease medical equipment from Hair Finance Leasing (China) Co., Ltd. (“Hair”), a third party, for a five-year period, in which Jiarun is required to pay a consulting fee to Hair for the services provided over the five years. |
Right-of-Use Assets and Lease_3
Right-of-Use Assets and Lease Liabilities (Details) - Right-of-Use Assets and Lease Liabilities [Member] | Dec. 31, 2019USD ($) |
Assets | |
Operating lease assets | $ 331,693 |
Finance lease assets | 15,309,796 |
Total | 15,641,489 |
Current | |
Operating lease liabilities | 111,414 |
Finance lease liabilities | 2,569,007 |
Long-term | |
Operating lease liabilities | 220,279 |
Finance lease liabilities | 13,075,654 |
Total | $ 15,976,354 |
Right-of-Use Assets and Lease_4
Right-of-Use Assets and Lease Liabilities (Details 1) | Dec. 31, 2019USD ($) |
Capital leases | |
2020 | $ 2,243,062 |
2021 | 1,462,976 |
2022 | 445,398 |
Thereafter | 11,493,225 |
Total | $ 15,644,661 |
Right-of-Use Assets and Lease_5
Right-of-Use Assets and Lease Liabilities (Details 2) | Dec. 31, 2019USD ($) |
Year ending December 31 | |
2020 | $ 111,414 |
2021 | 122,038 |
2022 | 98,241 |
Total | $ 331,693 |
Right-of-Use Assets and Lease_6
Right-of-Use Assets and Lease Liabilities (Details 3) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Capital Lease Obligations and Deposit for Capital Leases [Line Items] | ||
Lease assets | $ 16,823,151 | |
Accumulated amortization | (1,181,662) | |
Total right-of-use assets, net | 15,641,489 | |
Operating lease [Member] | ||
Schedule Of Capital Lease Obligations and Deposit for Capital Leases [Line Items] | ||
Lease assets | 432,892 | |
Accumulated amortization | (101,199) | |
Total right-of-use assets, net | 331,693 | |
Finance lease [Member] | ||
Schedule Of Capital Lease Obligations and Deposit for Capital Leases [Line Items] | ||
Lease assets | 16,390,259 | |
Accumulated amortization | (1,080,463) | |
Total right-of-use assets, net | $ 15,309,796 |
Right-of-Use Assets and Lease_7
Right-of-Use Assets and Lease Liabilities (Details Textual) | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2017USD ($) | Aug. 31, 2017USD ($) | Jun. 05, 2013CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Mar. 25, 2019USD ($) | |
Right-of-Use Assets and Lease Liabilities (Textual) | ||||||
Capital lease financing fees | $ 1,166,100 | $ 1,178,074 | ||||
Additional net lease assets | 15,640,000 | |||||
Additional net lease liabilities | 15,980,000 | |||||
Operating lease expense | 124,763 | 109,326 | ||||
Finance lease amortization expense | 1,080,463 | |||||
Depreciation and amortization | 2,212,022 | |||||
General property and equipment depreciation | 1,131,559 | |||||
Operating lease expense included amortization expense | 124,763 | 10,926 | ||||
Operating lease amortization expense | $ 101,199 | |||||
Non-Cancellable Operating Lease Agreements [Member] | ||||||
Right-of-Use Assets and Lease Liabilities (Textual) | ||||||
Lease payments | $ 68,128 | $ 36,881 | ||||
Lease payment term | 5 years | 5 years | ||||
Harbin Baiyi Real Estate Development Co., Ltd [Member] | ||||||
Right-of-Use Assets and Lease Liabilities (Textual) | ||||||
Lease agreement annual payments | ¥ | ¥ 7,000,000 | |||||
Leasing agreement deposit | ¥ | ¥ 3,000,000 | |||||
Term of capital lease | 30 years | |||||
Capital lease obligation interest rate percentage | 6.55% | |||||
Description of leasing agreement | The leasing agreement for our hospital building contains the following provisions: ● Rental payments of RMB7,000,000 (equivalent to $1,004,593) per year, payable at the beginning of September. ● An option allowing the lessor to extend the lease for thirty years beyond the last renewal option exercised by the Company. ● A guarantee by the Company that the lessor will realize $nil from selling the asset at the expiration of the lease This lease is a capital lease because its term (30 years) exceeds 75% of the building’s estimated economic life. In addition, the present value ($15,185,032) of the minimum lease payments exceeds 90% of the fair value of the building ($15,721,295). ● Accumulated annual amounts resulting from applying an interest rate of 6.55% to the balance of the lease obligation at the beginning of each year. The lease obligation is increased by the amount of the prior year’s interest, the amount of the net rental payment at the beginning of each year; and this amount represents the guaranteed residual value at the end of the lease term. | |||||
Haitong Hengxin International Leasing Company Limited [Member] | Sale and Leaseback Agreement [Member] | ||||||
Right-of-Use Assets and Lease Liabilities (Textual) | ||||||
Net value of properties | $ 2,609,047 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Details) | 12 Months Ended |
Dec. 31, 2019USD ($)shares | |
Derivative Financial Instruments (Textual) | |
Common stock purchase warrant | shares | |
Market fair value | $ 774,567 |
Loss from issuance expense and change in fair value debt derivatives | $ 332,067 |
Warrant liabilities [Member] | |
Derivative Financial Instruments (Textual) | |
Common stock purchase warrant | shares | 49,200 |
Market fair value | $ 110,840 |
Loss from issuance expense and change in fair value debt derivatives | $ 110,840 |
Description of embedded derivative | The fair value of the warrant liability was determined using Binomial Option Pricing Model based on the following assumptions: (1) dividend yield of 0%, (2) expected volatility of 54,62% and 51.25%, (3) weighted average risk-free interest rate of 1.679% and 1.654 (4) expected life of 4.42 and 2.58 years, and (5) the quoted market price of the Company’s common stock at each valuation date. |
Debt derivatives [Member] | |
Derivative Financial Instruments (Textual) | |
Description of embedded derivative | The fair value of the embedded derivatives was determined using Monte Carlo simulation “MC simulation” method and Binomial Option Pricing Model based on the following assumptions: (1) dividend yield of 0%, (2) expected volatility of 21.22% and 48.25%, (3) weighted average risk-free interest rate of 1.66% and 1.89% (4) expected life of 0.04 and 0.33 year, and (5) the quoted market price of the Company’s common stock at each valuation date. |
Non-controlling Interests (Deta
Non-controlling Interests (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Non-controlling Interests (Textual) | ||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | $ 273,237 | $ 556,333 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 634,297 | 1,103,381 |
Stockholders' Equity Attributable to Noncontrolling Interest | $ 8,168,613 | $ 7,895,376 |
Jiarun [Member] | ||
Non-controlling Interests (Textual) | ||
Noncontrolling Interest, Ownership Percentage by Parent | 70.00% | 70.00% |
Revenue (Details)
Revenue (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Product Information [Line Items] | ||
Revenue | $ 31,463,433 | $ 28,402,759 |
Medicine [Member] | ||
Product Information [Line Items] | ||
Revenue | 10,778,239 | 11,183,130 |
Medicine [Member] | Western medicine [Member] | ||
Product Information [Line Items] | ||
Revenue | 8,331,289 | 8,613,196 |
Medicine [Member] | Chinese medicine [Member] | ||
Product Information [Line Items] | ||
Revenue | 1,398,311 | 1,753,625 |
Medicine [Member] | Herbal medicine [Member] | ||
Product Information [Line Items] | ||
Revenue | 1,048,639 | 816,309 |
Patient services [Member] | ||
Product Information [Line Items] | ||
Revenue | 20,685,194 | 17,219,629 |
Patient services [Member] | Medical consulting [Member] | ||
Product Information [Line Items] | ||
Revenue | 9,636,511 | 8,720,373 |
Patient services [Member] | Medical treatment [Member] | ||
Product Information [Line Items] | ||
Revenue | 9,941,595 | 8,106,483 |
Patient services [Member] | Others [Member] | ||
Product Information [Line Items] | ||
Revenue | $ 1,107,088 | $ 392,773 |
Income Tax Expense (Details)
Income Tax Expense (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income tax expense | $ 657,699 | $ 2,765,650 |
United States [Member] | ||
Loss before income tax | (384,060) | |
Tax rate at 21% | (80,653) | |
Disallowed tax losses | 80,653 | |
Income tax expense | ||
Hong Kong [Member] | ||
Loss before income tax | (17,377) | |
Tax rate at 21% | (2,861) | |
Disallowed tax losses | 2,861 | |
Income tax expense |
Income Tax Expense (Details 1)
Income Tax Expense (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation: | ||
Tax expense from continuing operation | $ 657,699 | $ 2,765,650 |
People's Republic of China [Member] | ||
Income Tax Expense [Line Items] | ||
Income tax expense | 25,084 | |
Income tax: 2019 deferred | 632,615 | |
Tax expense from continuing operation | 657,699 | |
Reconciliation: | ||
Income tax at statutory rate | 657,699 | |
Tax expense from continuing operation | $ 657,699 |
Income Tax Expense (Details Tex
Income Tax Expense (Details Textual) | 12 Months Ended |
Dec. 31, 2019 | |
Depreciation of Tax Description | Depreciation for tax purposes is not required. Basis differences between tax and GAAP for depreciation of property and equipment exist because in 2018 the Company purchased Eligible Equipment for RMB 21.32million, with $632,615 deferred income tax, |
Hong Kong [Member] | |
Effective income tax statutory tax rate , percent | 16.50% |
PRC [Member] | |
Effective income tax statutory tax rate , percent | 25.00% |
United States [Member] | |
Effective income tax statutory tax rate , percent | 21.00% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | ||
Amount due from related parties | $ 149,811 | |
Harbin Baiyi Real Estate Development Co., Ltd, [Member] | ||
Related Party Transaction [Line Items] | ||
Amount due from related parties | 99,811 | |
Junsheng Zhang [Member] | ||
Related Party Transaction [Line Items] | ||
Amount due from related parties | 46,500 | |
Yanhua Xing [Member] | ||
Related Party Transaction [Line Items] | ||
Amount due from related parties | 2,450 | |
Weiguang Song [Member] | ||
Related Party Transaction [Line Items] | ||
Amount due from related parties | $ 1,050 |
Related Party Transactions (D_2
Related Party Transactions (Details 1) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | ||
Amount due to related parties | $ 1,794,540 | $ 109,147 |
Junsheng Zhang [Member] | ||
Related Party Transaction [Line Items] | ||
Amount due to related parties | 747,103 | 50,000 |
Harbin Jiarun Pharmacy Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Amount due to related parties | 1,211 | |
Heilongjiang Province Runjia Medical Equipment Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Amount due to related parties | 4,306 | 1,614 |
Jiarun Super Market Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Amount due to related parties | 39,042 | |
Harbin Baiyi Real Estate Development Co., Ltd, [Member] | ||
Related Party Transaction [Line Items] | ||
Amount due to related parties | 1,043,131 | |
Harbin Qi-run Pharmacy Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Amount due to related parties | $ 17,280 |
Related Party Transactions (D_3
Related Party Transactions (Details 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | ||
Related party transaction, purchases from related party | $ 93,681 | $ 264,233 |
Harbin Jiarun Pharmacy Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Related party transaction, purchases from related party | 86,304 | 229,498 |
Heilongjiang Province Runjia Medical Equipment Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Related party transaction, purchases from related party | 7,377 | 5,965 |
Harbin Qi-run Pharmacy Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Related party transaction, purchases from related party | $ 28,770 |
Related Party Transactions (D_4
Related Party Transactions (Details Textual) - Harbin Baiyi Real Estate Development Co., Ltd [Member] - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Related Party Transactions (Textual) | ||
Deposits for capital leases | $ 430,540 | $ 436,199 |
Capital lease obligations | 12,253,578 | 12,817,373 |
Paif for deposit amount | $ 99,811 | |
Due from related parties |
Basic and Diluted Earnings Pe_3
Basic and Diluted Earnings Per Share (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | ||
Net income available to common stockholders | $ 888,061 | $ 1,992,970 |
Denominator: | ||
Basic weighted-average number of shares outstanding | 16,757,890 | 14,948,397 |
Diluted weighted-average number of shares outstanding | 16,783,362 | 14,948,397 |
Net income per share: | ||
Basic | $ 0.053 | $ 0.1333 |
Diluted | $ 0.0529 | $ 0.1333 |
Common Stock (Details)
Common Stock (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) | |
Common Stock (Textual) | ||
Proceeds from issuance of common stock | $ 140,000 | |
Restricted stock [Member] | ||
Common Stock (Textual) | ||
Issuance of shares | shares | 2,994,999 | |
Proceeds from issuance of common stock | $ 6,000 | |
Stock dividends | 0.20 |
Going Concern (Details)
Going Concern (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Going Concern (Textual) | ||
Retained earnings | $ (6,788,652) | $ 12,913,912 |
Working capital | $ (1,401,549) |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - USD ($) | 1 Months Ended | |
Feb. 27, 2020 | Jan. 23, 2020 | |
Subsequent Events (Textual) | ||
Shares issued | 38,332 | |
Auctus Fund LLC [Member] | ||
Subsequent Events (Textual) | ||
Converted common shares | 2,000 | |
Accrued interest | $ 2,400 |