Document and Entity Information
Document and Entity Information - shares | 12 Months Ended | |
Mar. 31, 2018 | Jul. 29, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Dragon Victory International Ltd | |
Entity Central Index Key | 1,682,241 | |
Amendment Flag | false | |
Trading Symbol | LYL | |
Current Fiscal Year End Date | --03-31 | |
Document Type | 20-F | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2,018 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 11,421,394 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2018 | Mar. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 3,937,490 | $ 3,222,361 |
Trade accounts receivable, net | 1,610,865 | 673,678 |
Other receivables and prepayments | 1,233,425 | 90,413 |
Related party receivables | 266,959 | 67,145 |
Short-term investments | 4,744,328 | |
Total current assets | 11,793,067 | 4,053,597 |
Non-current assets | ||
Investment | 75,547 | 72,563 |
Property, plant and equipment, net | 1,060,376 | 32,824 |
Intangible assets, net | 1,369 | 812 |
Other assets | 87,339 | 52,739 |
TOTAL ASSETS | 13,017,698 | 4,212,535 |
Current liabilities | ||
Accounts payable | 52,957 | 63,483 |
Taxes payable | 1,670,273 | 830,606 |
Accrued liabilities and other current liabilities | 236,277 | 253,913 |
Related party payable | 64,698 | 42,960 |
Total current liabilities | 2,024,205 | 1,190,962 |
TOTAL LIABILITIES | 2,024,205 | 1,190,962 |
COMMITMENTS & CONTINGENCIES | ||
Dragon Victory Stockholders' Equity | ||
Ordinary Shares, $0.0001 par value, 500,000,000 shares authorized; 11,421,393 and 10,000,000 shares issued and outstanding, respectively | 1,142 | 1,000 |
Additional paid-in capital | 8,929,968 | 1,053,607 |
Statutory reserves | 433,479 | 65,331 |
Retained earnings | 1,876,235 | 2,051,252 |
Accumulated other comprehensive income | (168,541) | (149,617) |
Total Dragon Victory stockholders' equity | 11,072,283 | 3,021,573 |
Noncontrolling interest | (78,790) | |
TOTAL EQUITY | 10,993,493 | 3,021,573 |
TOTAL LIABILITIES AND STOCHOLDERS' EQUITY | $ 13,017,698 | $ 4,212,535 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2018 | Mar. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 |
Ordinary shares, authorized | 500,000,000 | 500,000,000 |
Ordinary shares, issued | 11,421,393 | 10,000,000 |
Ordinary shares, outstanding | 11,421,393 | 10,000,000 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) - USD ($) | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | |||
Revenues | $ 4,278,729 | $ 3,590,217 | $ 1,662,406 |
Operating expenses | |||
Selling, general and administrative expenses | 3,894,688 | 1,575,069 | 983,783 |
Total operating expenses | 3,894,688 | 1,575,069 | 983,783 |
Income from operations | 384,041 | 2,015,148 | 678,623 |
Other income (expenses): | |||
Gain on sale of investments | 230,202 | ||
Impairment on investments | (30,118) | ||
Other income | 93,639 | 118,935 | 1,141 |
Other expenses | (31,617) | (24,946) | (459) |
Interest income | 312,855 | 69,161 | 163 |
Interest expense | (61,883) | ||
Total other income (expenses) | 374,877 | 163,150 | 139,046 |
Income before tax | 758,918 | 2,178,298 | 817,669 |
Income tax | (633,614) | (464,327) | (164,817) |
Net income including noncontrolling interest | 125,304 | 1,713,971 | 652,852 |
Less: loss attributable to noncontrolling interest | (67,827) | ||
Net income attributable to Dragon Victory | 193,131 | 1,713,971 | 652,852 |
Net income including noncontrolling interest | 125,304 | 1,713,971 | 652,852 |
Other comprehensive income (loss): | |||
Foreign currency translation loss | (29,887) | (146,008) | (2,643) |
Comprehensive income (loss) including noncontrolling interest | 95,417 | 1,567,963 | 650,209 |
Comprehensive income (loss) attributable to noncontrolling interest | (78,790) | ||
Comprehensive income (loss) attributable to Dragon Victory | $ 174,207 | $ 1,567,963 | $ 650,209 |
Earnings per share attributable to Dragon Victory common stockholders | |||
Basic | $ 0.02 | $ 0.17 | $ 0.07 |
Diluted | $ 0.02 | $ 0.17 | $ 0.07 |
Weighted average shares outstanding-Dragon Victory | |||
Basic | 10,771,058 | 10,000,000 | 10,000,000 |
Diluted | 10,771,058 | 10,000,000 | 10,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities | |||
Net income | $ 125,304 | $ 1,713,971 | $ 652,852 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||
Depreciation and amortization | 19,895 | 19,006 | 26,358 |
Gain on sale of investments | (230,202) | ||
Impairment on investments | 30,118 | ||
Changes in assets and liabilities | |||
Increase in accounts receivables | (925,091) | (634,405) | (59,040) |
(Increase)/decrease in other receivables and prepayments | (825,169) | 148,487 | (225,253) |
(Increase)/decrease in related party receivables | (207,505) | 516,904 | (529,875) |
(Increase)/decrease in deferred tax asset | (13,746) | 64,713 | |
Increase in other current assets | 33,042 | 481 | |
(Decrease)/increase in accounts payables | (33,206) | 14,257 | |
Increase in taxes payable | 819,336 | 703,448 | 192,006 |
(Decrease)/increase in accrued liabilities and other current liabilities | (18,486) | 225,824 | 20,337 |
Net cash (used in)/provided by operating activities | (1,011,881) | 2,679,489 | (43,248) |
Cash flows from investing activities | |||
Investment in affiliated entities | (34,331) | ||
(Acquisitions)/disposals of investments | (4,825,706) | 253,253 | |
Increase in related party receivables | 842,544 | (615,395) | |
Purchase of equipment and improvements | (1,447,870) | (1,682) | (16,976) |
Decrease in rent and utility deposits | (43,572) | ||
Purchase of intangible assets | (541) | ||
Net cash (used in)/provided by investing activities | (6,273,576) | 797,290 | (413,990) |
Cash flows from financing activities | |||
Proceeds from issuance of ordinary shares | 7,731,271 | 1,076,324 | |
Capital contribution from owners | 145,232 | ||
Repayment of capital lease | (15,975) | (20,419) | |
Increase/(decrease) in related party payable | 27,075 | (155,448) | (640,406) |
Net cash provided by/(used in) financing activities | 7,903,578 | (171,423) | 415,499 |
Net Increase/(decrease) of Cash and Cash Equivalents | 618,121 | 3,305,356 | (41,739) |
Effect of foreign currency translation on cash and cash equivalents | 97,008 | (85,475) | (2,114) |
Cash and cash equivalents - beginning of year | 3,222,361 | 2,480 | 46,333 |
Cash and cash equivalents - end of year | 3,937,490 | 3,222,361 | 2,480 |
Supplemental cash flow disclosures | |||
Interest received | 312,856 | 69,161 | |
Interest paid | 66,548 | ||
Income taxes paid | $ 285,749 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Total | Ordinary Shares $0.0001 Par Value | Additional Paid-in Capital | Statutory Reserves | Retained Earnings/(Loss) | Accumulated Other Comprehensive Income | Noncontrolling Interest |
Balance at Mar. 31, 2015 | $ (250,206) | $ 10,000 | $ (9,000) | $ (250,240) | $ (966) | ||
Balance, shares at Mar. 31, 2015 | 100,000,000 | ||||||
Reverse stock split (1-for-10) | $ (9,000) | 9,000 | |||||
Reverse stock split (1-for-10), shares | (90,000,000) | ||||||
Capital contributions by owners | 1,054,607 | 1,054,607 | |||||
Adjustment as recapitalization from VIE | (1,000) | (1,000) | |||||
Net income (loss) | 652,852 | 65,331 | 587,521 | ||||
Cumulative translation adjustment | (2,643) | (2,643) | |||||
Balance at Mar. 31, 2016 | 1,453,610 | $ 1,000 | 1,053,607 | 65,331 | 337,281 | (3,609) | |
Balance, shares at Mar. 31, 2016 | 10,000,000 | ||||||
Net income (loss) | 1,713,971 | 1,713,971 | |||||
Cumulative translation adjustment | (146,008) | (146,008) | |||||
Balance at Mar. 31, 2017 | 3,021,573 | $ 1,000 | 1,053,607 | 65,331 | 2,051,252 | (149,617) | |
Balance, shares at Mar. 31, 2017 | 10,000,000 | ||||||
Capital contributions by owners | 145,232 | 145,232 | |||||
Proceeds from sale of Common Stock | 7,731,271 | $ 142 | 7,731,129 | ||||
Proceeds from sale of Common Stock, shares | 1,421,393 | ||||||
Net income (loss) | 193,131 | 193,131 | (67,827) | ||||
Appropriations of retained earnings | 368,148 | (368,148) | |||||
Cumulative translation adjustment | (29,887) | (18,924) | (10,963) | ||||
Balance at Mar. 31, 2018 | $ 11,072,283 | $ 1,142 | $ 8,929,968 | $ 433,479 | $ 1,876,235 | $ (168,541) | $ (78,790) |
Balance, shares at Mar. 31, 2018 | 11,421,393 |
Consolidated Statements of Sto7
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | Mar. 31, 2018 | Mar. 31, 2017 |
Statement of Stockholders' Equity [Abstract] | ||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 |
Business and Organization
Business and Organization | 12 Months Ended |
Mar. 31, 2018 | |
Business and Organization [Abstract] | |
BUSINESS AND ORGANIZATION | 1 — BUSINESS AND ORGANIZATION Dragon Victory International Limited (“Dragon Victory”) was formed in the Cayman Islands on July 19, 2015. Dragon Victory’s wholly-owned subsidiary, Sweet Lollipop Co., Ltd. (“Sweet Lollipop”) was formed in the British Virgin Islands on May 8, 2014. Long Yun International Holdings Limited (“Long Yun HK”), which is a wholly-owned subsidiary of Sweet Lollipop, was formed in Hong Kong on May 2, 2015. HangZhou Yuyao Network Technology Co., Ltd (“WFOE I”), our wholly foreign-owned entity, was organized pursuant to PRC laws on May 30, 2016. HangZhou Longyun Network Technology Co., Ltd (“HangZhou Longyun”, “VIE”) was established on October 9, 2014 in HangZhou, PRC pursuant to PRC laws, which is owned by Mr. Yu Han holding 85% equity ownership interest and Koulin Han holding 15% equity ownership interest. HangZhou Longyun’s operation includes offering reward-based crowdfunding opportunities in the PRC to entrepreneurs and funding sources primarily through an internet-based platform, offering business incubation services to the ventures utilizing its platform for their projects, and offering to act as a finder to also assist these companies to obtain loans or additional equity financing, and introduce them to potential business partners, find merger candidates or other strategic relationships, or assist with feasibility studies. On August 19, 2016, WFOE I and Mr. Yu Han and Ms. Koulin Han, the owners of HangZhou Longyun; entered into a series of agreements known as variable interest agreements (the “VIE Agreements”) pursuant to which HangZhou Longyun became WFOE I’s contractually controlled affiliate. The purpose and effect of the VIE Agreements is to provide HangZhou Longyun (our indirect wholly-owned subsidiary) with all management control and net profits earned by HangZhou Longyun. On November 3, 2017, Dragon Victory entered into a Strategic Cooperation Agreement (the "Agreement") under a joint venture where Dragon Victory through its subsidiaries will own 60% of Hangzhou Taikexi Dacheng Automotive Technology Service Co., Ltd (“Taikexi”) to upgrade the current platform to set-up a business ecosystem to offer online auto-insurance and to provide a full range of off-line auto parts and advisory services to consumers. Effective March 20, 2018, WFOE I, HangZhou Longyun, and HangZhou Longyun’s owners executed a Termination Agreement to terminate each of the VIE Agreements dated August 19, 2016. As a result of entering into such Termination Agreements, WFOE I will no longer be the sole equity holder of HangZhou Longyun and will have no control rights and no rights to the assets, property and revenue of HangZhou Longyun. The Company is in the process of dissolving WFOE I. On March 20, 2018, Hangzhou Dacheng Investment Management Co., Ltd. (“WFOE II”), a newly formed wholly owned subsidiary of the Company, entered into a series of contractual arrangements (the “New VIE Agreements”) with HangZhou Longyun and its owners. The New VIE agreements are designed to provide WFOE II (which replaced WFOE I) with the power, rights and obligations equivalent in all respects to those it would possess as the sole equity holder of HangZhou Longyun, including absolute control rights and the rights to the assets, property and revenue of HangZhou Longyun. There is no change to Long Yun’s capital structure. The Company decided to replace WFOE I with WFOE II in order to take full advantage of certain preferential tax treatments and subsidies granted by the local government of Shangcheng District of Hangzhou, Zhejiang province, where WFOE II was incorporated. Dragon Victory, Sweet Lollipop, Long Yun HK, WFOE I, WFOE II, Hangzhou Taikexi Dacheng Automotive Technology Service Co., Ltd, and HangZhou Longyun shall be collectively referred to as the “Company”. The structure of the Company as follows: |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a) Principles of Presentation The consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America. This basis of accounting involves the application of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when incurred. The Company’s consolidated financial statements are expressed in U.S. dollars. b) Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its significant subsidiaries on a consolidated basis. The Company also includes subsidiaries over which a direct or indirect legal or effective control exists and for which the Company is deemed to direct the significant activities and has the obligation to absorb the losses or benefits of the entities. All intercompany accounts, balances and transactions with consolidated entities have been eliminated. Acquisition of Sweet Lollipop, Long Yun HK by Dragon Victory The acquisitions were accounted under US GAAP as a business combination under common control with Dragon Victory being the acquirer and Sweet Lollipop and Long Yun HK being the acquirees because all entities were controlled directly or indirectly by the same majority shareholder Mr. Yu Han. The consolidation has been presented at historical costs and on a retroactive basis to reflect the capital structure of Sweet Lollipop and Long Yun HK as a recapitalization. The business combination transaction of Sweet Lollipop was completed and effective on June 26, 2015 and Sweet Lollipop became a 100% owned subsidiary of Dragon Victory. The business combination transaction of Long Yun HK was completed and effective on August 10, 2015 and Long Yun HK became a 100% owned subsidiary of Sweet Lollipop. VIE Agreements between WFOE I and HangZhou Longyun and its shareholders (subsequently between WFOE II and HangZhou Longyun) The Company evaluates the need to consolidate its VIE in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. The transactions contemplated by the Original VIE agreements consummated on August 19, 2016, and subsequent terminated were replaced by New VIE Agreements consummated on March 20, 2018 to take full advantage of certain preferential tax treatments and subsidies granted by the local government of Shangcheng District of Hangzhou, Zhejiang province, where WFOE II was incorporated. WFOE I and WFOE II shall be collectively referred to as the “WFOEs” The purpose and design of the VIE Agreements between the WFOEs and HangZhou Longyun, was to consolidate Hangzhou Longyun under the Company by way of common control. ASC 810-10-25-38F states that a reporting entity’s involvement in the design of a VIE may indicate that the reporting entity had the opportunity and the incentive to establish arrangements that result in the reporting entity being the variable interest holder with the power to direct the activities that most significantly impact the VIE’s economic performance. As both the Company and HangZhou Longyun are commonly control by Mr. Yu Han and Ms. Koulin Han, both immediately before and after the acquisition, this transaction was accounted for as a merger under common control, using merger accounting as if the merger had been consummated at the beginning of the earliest period presented, and no gain or loss was recognized. All the assets and liabilities of HangZhou Longyun are carried using their original basis. Hence, HangZhou Longyun was consolidated under the Company since its inception due to the purpose and design of the establishment of the VIE Agreements. The purpose of the VIE Agreements is solely to give the WFOEs the exclusive control over HangZhou Longyun’s management and operations. While there is no restriction for HangZhou Longyun, our VIE entity, to pay the WFOEs, our wholly owned subsidiary, there are certain restrictions for the WFOEs to make payments to the holding companies due to certain regulations imposed by the Chinese government on out-going foreign currency wire transfers. Additionally, there could be potential tax implications when moving the cash flows up to the Company. Therefore, the Company intends to retain any earnings within HangZhou Longyun, and the retained cash flows would be utilized in expanding the Company’s business. The significant terms of the VIE Agreements are summarized below: Exclusive Business Cooperation Agreement Pursuant to the Exclusive Business Cooperation Agreement between HangZhou Longyun and the WFOEs, the WFOEs provides HangZhou Longyun with technical support, consulting services and other management services relating to its day-to-day business operations and management, on an exclusive basis, utilizing its advantages in technology, human resources, and information. Additionally, HangZhou Longyun grants an irrevocable and exclusive option to the WFOEs to purchase from HangZhou Longyun, any or all of its assets, to the extent permitted under the PRC laws. the WFOEs shall own all intellectual property rights that are developed during the course of the agreement. For services rendered to HangZhou Longyun by the WFOEs under the Agreement, the service fee HangZhou Longyun is obligated to pay shall be calculated based on the time of services rendered multiplied by the corresponding rate, which is approximately equal to the net income of HangZhou Longyun. The Exclusive Business Cooperation Agreement shall remain in effect for ten years until it is terminated by the WFOEs with 30-day prior notice. HangZhou Longyun does not have the right to terminate the agreement u0aterally. Share Pledge Agreement Under the Share Pledge Agreement between the shareholders of HangZhou Longyun and the WFOEs, the various shareholders of HangZhou Longyun pledged all of their equity interests in HangZhou Longyun to the WFOEs to guarantee the performance of HangZhou Longyun’s obligations under the Business Cooperation Agreement. Under the terms of the Agreement, in the event that HangZhou Longyun or its shareholders breach their respective contractual obligations under the Exclusive Business Cooperation Agreement, the WFOEs, as pledgee, will be entitled to certain rights, including, but not limited to, the right to collect dividends generated by the pledged equity interests. The shareholders of HangZhou Longyun also agreed that upon occurrence of any event of default, as set forth in the Share Pledge Agreement, the WFOEs is entitled to dispose of the pledged equity interest in accordance with applicable PRC laws. The shareholders of HangZhou Longyun further agree not to dispose of the pledged equity interests or take any actions that would prejudice the WFOEs’s interest. Exclusive Option Agreement Under the Exclusive Option Agreement, the shareholders of HangZhou Longyun irrevocably granted the WFOEs (or its designee) an exclusive option to purchase, to the extent permitted under PRC law, all of the equity interests in HangZhou Longyun. The option price is equal to the capital paid in by the HangZhou Longyun shareholders. The agreement remains effective for a term of ten years and may be renewed at the WFOEs’ election. Power of Attorney Under the Power of Attorney, the shareholders of HangZhou Longyun authorize the WFOEs to act on their behalf as their exclusive agent and attorney with respect to all rights as shareholders, including but not limited to: (a) attending shareholders’ meetings; (b) exercising all the shareholder’s rights, including voting, that shareholders are entitled to under the laws of China and the Articles of Association, including but not limited to the sale or transfer or pledge or disposition of shares in part or in whole; and (c) designating and appointing on behalf of shareholders the legal representative, the executive director, supervisor, the chief executive officer and other senior management members of HangZhou Longyun. Under these contractual arrangements with the VIEs, the Company has the power to direct activities of the VIE and can have assets transferred out of the VIE under its control. Therefore, the Company considers that there is no asset in any of the consolidated VIE that can be used only to settle obligations of the VIE, except for registered capital and PRC statutory reserves. As the consolidated VIE is incorporated as limited liability companies under the PRC Company Law, creditors of the VIE do not have recourse to the general credit of the Company for any of the liabilities of the consolidated VIE. The Company’s management has determined that via the VIE agreements, it is the primary beneficiary of Hangzhou Longyun. The Company’s total assets and liabilities presented in the consolidated financial statements represent substantially portion of the total assets and liabilities of the VIE because the other entities in the consolidation are non-operating holding entities with significantly less assets and liabilities. The following financial statement amounts and balances of the VIE, were included in the accompanying consolidated financial statements as of March 31, 2018 and 2017, and for the years ended March 31, 2018 and 2017, respectively: March 31, March 31, Financial Position at: 2018 2017 Current assets 8,151,121 4,202,662 Non-current assets 121,071 158,938 Total assets 8,272,192 4,361,600 Current liabilities 2,834,470 1,087,738 Non-current liabilities - - Total liabilities 2,834,470 1,087,738 Net assets 5,437,722 3,273,862 For the Years Ended Results of Operations: March 31, 2018 March 31, 2017 March 31, 2016 Revenues 4,271,966 3,590,217 1,662,406 Operating expenses 1,995,178 1,404,402 935,788 Other income (expenses) net (275,665 ) (163,151 ) (139,045 ) Earnings before tax 2,221,646 2,348,966 865,663 Tax expenses (benefits) 633,614 464,327 164,817 Net income 1,918,839 1,884,639 700,846 c) Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. d) Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are carried at the amount billed to a customer, net of the allowance for doubtful accounts, which is an estimate for credit losses based on a review of all outstanding amounts on a regular basis. Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering a customer’s financial condition, credit history and current economic conditions. Accounts receivable are written off when deemed uncollectible against allowances provided. Recoveries of accounts receivable previously written off are recorded when received. The Company reviews the collectability of accounts receivable based on an assessment of historical experience, current economic conditions, and other collection indicators. For the years ended March 31, 2018, 2017 and 2016, the Company has not experienced any uncollectible balances and after management assessed the credibility related to balances outstanding at March 2018, it determined that no additional allowance was necessary; accordingly, the Company has recorded allowances for doubtful accounts of $0 and $0, respectively. e) Investments Cost Method Investments Direct and or indirect investments in business entities in which the Company does not have a controlling financial interest and has no ability to exercise significant influence over operating and financial policies (generally 0 – 20 percent ownership), are accounted for by the cost method. Equity Method Investments Direct and or indirect investments in business entities in which the Company does not have a controlling financial interest but has the ability to exercise significant influence over operating and financial policies (generally 20 – 50 percent ownership), are accounted for by the equity method. Held-to-Maturity Investments The Company had certain held-to-maturity debt instrument as investments. These investments were not impaired and were recorded at their carrying values which were based on the amortized cost basis approximate their fair market value; accordingly, the Company has not recognized any unrecognized gain or losses in the other comprehensive income. There were no derivative instruments that were used to hedge these investments. These investments are accounted as short-term investments as they had maturities with one year or less. f) Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is charged to operations using the straight-line method over the estimated useful lives of the assets. Property and equipment and its estimated useful lives as follows: Computer Equipment 1 – 3 years Office Equipment 4 – 5 years Motor Vehicle 4 years Expenditures for maintenance and repairs are charged to operations as incurred. Expenditures for betterments and major renewals are capitalized. The cost of assets sold or retired and the related amounts of accumulated depreciation are eliminated from the accounts in the year of disposal, and any resulting gains or losses are included in operations. g) Intangible Assets with Definite Lives Intangible assets are stated at cost, net of accumulated amortization. Amortization is charged to operations using the straight-line method over the estimated useful lives of the assets. Intangible assets and its estimated useful lives as follows: Software 5 years h) Revenue Recognition Crowdfunding The Company generates its revenue from success fees from transactions on the crowdfunding platform. Revenue from these transactions is accounted for at the moment a project is successfully funded. At the start of a funding campaign, the entrepreneur enters into a contract with the Company pursuant to which he or she agrees to pay the Company a success fee once a successful fund-raising campaign for that entrepreneur closes. Once the funding campaign has closed, the Company’s success fee is either collected from the funds raised prior to transferring the net proceeds of the funding to the entrepreneur or to be collected from the entrepreneur after the net proceeds of the funding are transferred to the entrepreneur. Upon completion of the funding campaign, services delivered under the contract with the entrepreneur have been completed and the Company recognizes its success fee revenues, net of any discounts given at the time the campaign has been closed successfully. Also, because the success fee percentage is stated in the contract with the entrepreneur prior to the start of the funding campaign, the Company believes that this amount is fixed and, assuming the successful conclusion of the funding campaign, collectible from the entrepreneur. This revenue recognition policy complies with ASC 606 in that it is based on written agreements with the entrepreneurs, contractual services have been completed, pricing is fixed and determinable based on agreements with the customer and collectability is reasonably assured as the customers of the Company have just received their new funding. Incubation Service The Company generates its revenue by providing business and operation advisory services relating to matters related to marketing, sales, and strategic planning, and ancillary services such as coordinating human resources, legal, accounting, operations, assisting with feasibility studies and other types of services at the election of the entrepreneur. The Company provides its incubation services on an ongoing and/or as-needed basis, pursuant to consulting agreements with the entrepreneurs. For ongoing basis services, revenue is recognized on an ongoing basis for the agreed periodic service fee. For as-needed basis, revenue is recognized when the contractual services have been completed. Finder’s Service Fee The Company generates its revenue for assisting any business entity in raising funds as well as for introducing business partners, acquisition candidates or other strategic relationships to the business entity, usually from one or more sources with which the Company or personnel have relationships. The Company provides its finder services pursuant to an agreement and revenue is recognized when the contractual services have been completed and the terms and conditions in the agreements have been met. Procurement Service The Company generates its revenues from service fees by providing procurement services for sourcing, accounts receivables financing, and logistics services relating to auto parts and accessories on an as needed basis. The transaction price is determined when the customer places an order with the Company. The Company recognize revenues when the procured goods have been transferred to and accepted by the customers as its performance obligation is completed. In 2014, the FASB issued guidance on revenue recognition (“ASC 606”), with final amendments issued in 2016. The underlying principle of ASC 606 is to recognize revenue to depict the transfer of goods or services to customers at the amount expected to be collected. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contracts, which includes (1) identifying the contracts or agreements with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. The Company has applied the five-step model to recognize revenue when it is probable that the Company will collect the consideration it is entitled to in exchange for the services it transfers to its clients. The Company has concluded that the new guidance did not require any significant change to its revenue recognition processes. i) Fair Value of Financial Instruments The accounting standard for fair value establishes a framework for measuring fair value and enhances fair value measurement disclosure. Under the provisions of the pronouncement, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is described below: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. The Company’s current financial assets and liabilities approximate fair value due to their short-term nature and include cash accounts. The Company’s borrowings approximate fair value as the rates of interest are similar to what they would receive from other financial institutions. The following table summarizes the Company's assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy: Carrying Amount Estimated Level 1 Level 2 Level 3 Fair Value March 31, 2018 Assets Carried at (amortized) cost: Corporate debt securities - - 4,744,328 4,744,328 March 31, 2017 Assets Carried at (amortized) cost: Corporate debt securities - - - - j) Foreign Currency Translation The Company uses the United States dollar (“U.S. dollars” or “USD”) for financial reporting purposes and to maintain its books and records. The Company’s subsidiaries maintain their books and records in their functional currency which is in Chinese Renminbi (“RMB”). In general, for consolidation purposes, the Company translates its assets and liabilities into U.S. dollars using the applicable exchange rates prevailing at the balance sheet date, the statements of operations and cash flows are translated at average exchange rates during the reporting period, and the equity accounts are translated at historical rates. As a result, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheet. Adjustments resulting from the translation of the financial statements are recorded as accumulated other comprehensive income or loss. Exchange rate used for the translation as follows: March 31, March 31, March 31, 2018 2017 2017 Period/year end RMB:US$ exchange rate 6.61843 6.89053 6.4479 Period/annual average RMB:US$ exchange rate 6.50682 6.729145 6.3178 Period/year end HKD:US$ exchange rate 7.77047 7.77047 7.7544 Period/annual average HKD:US$ exchange rate 7.75883 7.75883 7.7566 k) Advertising Advertising costs are expensed as incurred as selling expenses. Advertising expenses were $19,769, and $8,808, and $0 for the years ended March 31, 2018, 2017, and 2016, respectively. l) Income Taxes Income taxes have been determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. Deferred taxes result from differences between the financial statement and tax bases of the Company’s assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The assessment of whether or not a valuation allowance is required often requires significant judgment. m) Earnings (Loss) Per Common Share Basic and diluted net loss per share is presented in conformity with ASC Topic 260, Earnings per Share, for all periods presented. In accordance with this guidance, basic and diluted net loss per share was determined by dividing net loss applicable to common stockholders by the weighted-average common shares outstanding during the period. In a period where there is a net loss position, diluted weighted average shares are the same as basic weighted average shares. Shares used in the diluted net loss per common share calculation exclude potentially dilutive share equivalents as the effect would be antidilutive. n) Comprehensive Income (Loss) Comprehensive loss refers to revenues, expenses, gains and losses that under U.S. GAAP are included in comprehensive loss, but are excluded from net loss as these amounts are recorded directly as an adjustment to stockholders’ equity. The Company’s other comprehensive loss is comprised of foreign currency translation adjustments. o) Recent Accounting Pronouncements In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business, which narrows the existing definition of a business and provides a framework for evaluating whether a transaction should be accounted for as an acquisition (or disposal) of assets or a business. The ASU requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities (collectively, the set) is not a business. To be considered a business, the set would need to include an input and a substantive process that together significantly contribute to the ability to create outputs. The standard also narrows the definition of outputs. The definition of a business affects areas of accounting such as acquisitions, disposals and goodwill. Under the new guidance, fewer acquired sets are expected to be considered businesses. For the Company, this ASU is effective January 1, 2018 on a prospective basis with early adoption permitted. The Company has adopted this guidance, and determined that there was no material impact to the financial statements presented herein. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. Under the new standard, goodwill impairment would be measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying value of goodwill. This ASU eliminates existing guidance that requires an entity to determine goodwill impairment by calculating the implied fair value of goodwill by hypothetically assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. For the Company, this ASU is effective prospectively to impairment tests beginning January 1, 2020, with early adoption permitted at the time of any interim impairment test that may be performed prior to that date. The Company has adopted this ASU in the fourth quarter of 2017 In February 2016, the FASB issued ASU No. 2016-02, Leases, requiring lessees to recognize assets and liabilities for leases with lease terms of more than 12 months in the balance sheet. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new guidance is effective for fiscal years and for interim periods within those fiscal years, beginning after December 15, 2018. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company will adopt this guidance in April of 2018. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing”. The amendments add further guidance on identifying performance obligations and also to improve the operability and understandability of the licensing implementation guidance. The amendments do not change the core principle of the guidance in Topic 606. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in Topic 606. The Company has adopted this new guidance and has re-evaluated its revenue recognition principles to ensure that they are in line with this guidance. In June 2016, the FASB issued Accounting Standards Update No. 2016-13 (ASU 2016-13) “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. ASU 2016-13 is effective for annual reporting periods, and interim periods within those years beginning after December 15, 2019. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments, which is intended to reduce diversity in practice in how certain cash receipts and payments are presented and classified in the statement of cash flows. The standard provides guidance in a number of situations including, among others, settlement of zero-coupon bonds, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, and distributions received from equity method investees. The ASU also provides guidance for classifying cash receipts and payments that have aspects of more than one class of cash flows. The Company has adopted the new guidance. |
Other Receivables and Prepaymen
Other Receivables and Prepayments | 12 Months Ended |
Mar. 31, 2018 | |
Other Receivables and Prepayments [Abstract] | |
OTHER RECEIVABLES AND PREPAYMENTS | 3 — OTHER RECEIVABLES AND PREPAYMENTS Other receivables and prepayments consist of the following: March 31, March 31, Advances to employees $ 117,983 $ 6,604 Advance to service providers 35,984 2,299 Deposits for leases due within one operating period 12,167 22,030 Prepayments and prepaid expenses 574,992 59,480 Interest receivables 116,562 - Other receivables 375,737 - $ 1,233,425 $ 90,413 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Mar. 31, 2018 | |
Property and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | 4 — PROPERTY AND EQUIPMENT Property and equipment consist of the following: March 31, 2018 March 31, 2017 Leasehold improvements $ 755,466 $ - Computer and equipment 202,292 50,267 Motor vehicle 161,074 25,468 Less-Accumulated depreciation (58,456 ) (42,911 ) Total, net $ 1,060,376 $ 32,824 The Company made non-refundable prepayments for improvements to an office space; architectural and construction work has begun, but the improvements are not yet completed; accordingly, the asset has yet to be placed into service, and the Company has yet to record depreciation for the improvements. For the years ended March 31, 2018, 2017, and 2016, depreciation expense was $18,852, $21,039, and $20,838, |
Intangible Asset
Intangible Asset | 12 Months Ended |
Mar. 31, 2018 | |
Intangible Asset [Abstract] | |
INTANGIBLE ASSET | 5 — INTANGIBLE ASSET Intangible asset consists of the following: Software $ 1,867 $ 1,251 Less-Accumulated Amortization (498 ) (439 ) Total, net $ 1,369 $ 812 For the years ended March 31, 2018, 2017, and 2016, amortization expense was $322, $256, and $188, respectively. The weighted average remaining useful life of the asset is approximately 51 months. |
Short-Term Investments
Short-Term Investments | 12 Months Ended |
Mar. 31, 2018 | |
Short-Term Investments [Abstract] | |
SHORT-TERM INVESTMENTS | 6 — SHORT-TERM INVESTMENTS The amortized cost and fair value of investment securities held-to-maturity as follows: Investment Securities Held-to-Maturity Amortized Unrealized Unrealized Estimated Cost Gains Losses fair value March 31, 2018 Corporate debt securities $ 4,744,328 $ - $ - $ 4,744,328 Total $ 4,744,328 $ - $ - $ 4,744,328 March 31, 2017 Corporate debt securities $ - $ - $ - $ - Total $ - $ - $ - $ - The Company’s investment securities held-to-maturity approximate fair value due to their short-term nature with maturity range from thirty days to a year. The amortized cost and fair value of investment securities, by maturity, for held-to-maturity investment securities as follows: Periods March 31, 2018 March 31, 2017 Due in one year or less $ 4,744,328 $ - Due after one year through five years - - Due after five years through ten years - - Due after ten years - - Total $ 4,744,328 $ - The maturities of the investments are based on final contractual maturity date. The Company continually performs assessments to determine whether unrealized losses in its investment securities portfolio are temporary or other-than-temporary by carefully considering all reasonably available information. The Company considers factors such as financial statements, credit ratings, news releases and other pertinent information of the underlying issuer or company to make its determination. If the decline in fair value is deemed to be other than temporary, the carrying value of the investment is written down to fair value and the amount of write-down is included as a realized loss in earnings. The Company evaluate the investments in accordance to ASC 320-10-35. Impairment charges in connection with the investments were $0, $0, and $0 for the years ended March 31, 2018, 2017, and 2016, respectively. These investments earned interest of $310,105, $0, and $0 for the years ended March 31, 2018, 2017, and 2016, respectively that was recognized to the Company’s results of operations when interest have been earned. These investments are not collateralized with underlying assets by their issuers. Subsequent to March 31, 2018, the Company received interest income on held-to-maturity investments. |
Investments in Entities and its
Investments in Entities and its Valuations | 12 Months Ended |
Mar. 31, 2018 | |
Investments in Entities and its Valuations [Abstract] | |
INVESTMENTS IN ENTITIES AND ITS VALUATIONS | 7 — INVESTMENTS IN ENTITIES AND ITS VALUATIONS JiaXing YiTou ShangMa Investments Limited Partnership Company On December 2014, the Company acquired 10% ownership interest in JiaXing YiTou ShangMa Investments Limited Partnership Company (“JiaXing YiTou”). JiaXing YiTou invests in industrial companies and investment management. It is located in Jiaxing City, Zhejiang Province, PRC. The cash consideration of $15,509 (RMB 100,000) was paid in as equity capital. Such investment is accounted for under the cost method. The Company recognized an investment income of $0, $0 and $0 as other income for the years ended March 31, 2018, 2017, and 2016, respectively. The Company recognized an impairment loss on investment in the amount of $0, $0, and $0 for the years ended March 31, 2018, 2017, and 2016. Investments Valuation The Company continually reviews its investments in equity investees to determine whether a decline in fair value below the carrying value is other than temporary. The primary factors the Company considers in its determination are the length of time that the fair value of the investment is below the Company’s carrying value; the financial condition, operating performance and the prospects of the equity investee; and other company specific information such as industry data, general economic conditions, cash flows forecasts or any recent financing rounds. If the decline in fair value is deemed to be other than temporary, the carrying value of the equity investee is written down to fair value. The Company evaluates its cost method investments in accordance to ASC 325-20-35. Impairment charges in connection with its cost method investments were $0, $0, and $0 for the years ended March 31, 2018, 2017, and 2016, respectively. The carrying amount of the investments consist of the following: March 31, 2018 March 31, 2017 JiaXing YiTou ShangMa Investments Limited Partnership Company $ 75,547 $ 72,563 Total, net $ 75,547 $ 72,563 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 8 — RELATED PARTY TRANSACTIONS Related parties’ relationships as follows: Name Relationship Mr. Sun JianJun CEO of the Company. Mr. Han Yu Majority shareholder of the Company. HangZhou TianQi Network Technology Co. Ltd. Mr. Han Yu, Majority shareholder of the Company owns 27%. Mr. Liao Xu CMO of the Company. Mr. Yuan Qiang CTO of the Company Mr. Sun Mang Yue Director, CEO and shareholder of the Company’s subsidiary Other related parties’ receivables consist of the following: March 31, 2018 March 31, 2017 Mr. Han Yu $ 40,414 $ 37,425 Mr. Sun Mang Yue 226,545 - Mr. Yuan Qiang - 23,190 Mr. Liao Xu - 6,530 Total $ 266,959 $ 67,145 The outstanding receivables from Mr. Han Yu, Mr. Yuan Qiang, Mr. Liao Xu consist of working capital advances and borrowings or cash advances for travel expenses. These amounts are due on demand and non-interest bearing. On October 9, 2016, Mr. Han Yu repaid $1,334,064 (RMB 8,917,562) to the Company. Other related parties’ payables consist of the following: March 31, 2018 March 31, 2017 Mr. Sun JianJun $ 19,971 $ - HangZhou TianQi Network Technology Co. Ltd. 44,727 42,960 Total $ 64,698 $ 42,960 Outstanding payables to Mr. Sun JianJun consist of working capital advances and borrowings. These amounts are due on demand and non-interest bearing. Outstanding payable to HangZhou TianQi Network Technology Co. Ltd., consist of rent owed which are non-interest bearing and due on demand. |
Capital & Equity
Capital & Equity | 12 Months Ended |
Mar. 31, 2018 | |
Capital & Equity [Abstract] | |
CAPITAL & EQUITY | 9 — CAPITAL & EQUITY Ordinary Shares The Company is authorized to issue of 500,000,000 ordinary shares, at $0.0001 par value. Since inception, the Company has issued 10,000,000 shares of ordinary shares for proceeds of $1,000. During the year ended March 31, 2016, the Company’s shareholders have contributed capital of $1,053,607 (RMB 6,800,000) in the Company’s subsidiary — HangZhou LongYun. On July 25, 2017, the Company’s shareholders and Board of Directors authorized a 1-for-10 reverse stock split of the Company’s outstanding Ordinary Shares (the “Reverse Stock Split”). The Reverse Stock Split was effectuated on July 25, 2017. References to shares in the consolidated financial statements and the accompanying notes, including, but not limited to, the number of shares and per share amounts, have been adjusted to reflect the Reverse Stock Split on a retroactive basis. On August 2017, the Company’s shareholder has contributed capital of $145,232 (RMB 945,000) in the Company’s subsidiary — HangZhou LongYun. On September 15, 2017, the Company issued 1,421,394 ordinary shares at $6.00 per share for net proceeds of $7,731,271 ($8,528,363 in gross proceeds less underwriter discounts, commissions and offering expenses of $797,092) during an initial public offering ("IPO") of the Company’s ordinary shares and concurrent listing on NASDAQ Capital Market stock exchange. |
Statement of Operations
Statement of Operations | 12 Months Ended |
Mar. 31, 2018 | |
Statement of Operations - Details [Abstract] | |
STATEMENT OF OPERATIONS - DETAILS | 10 — STATEMENT OF OPERATIONS — DETAILS For the Years Ended March 31, 2018 March 31, 2017 March 31, 2016 Revenues Crowdfunding $ 1,074,101 $ 883,209 $ 767,779 Incubation Service 3,197,865 2,707,008 595,980 Procurement Services 6,763 - 298,647 Total 4,278,729 3,590,217 1,662,406 Operating Expenses Professional Fees 1,329,279 529,759 369,923 Wages & Benefits 1,691,204 310,680 236,778 Travel Expenses 203,701 72,953 51,846 Depreciation & Amortization 20,174 21,295 20,838 Data Services 127,355 316,986 118,596 Rent Expense 308,238 114,096 64,494 Advertising 19,769 8,808 - Business Taxes and Surcharges 10,168 14,873 11,298 Meals & Entertainment 117,874 - - Other 66,926 37,012 110,010 Impairment Loss - 148,607 - Total $ 3,894,688 $ 1,575,069 $ 983,783 |
Concentration, Geographic
Concentration, Geographic | 12 Months Ended |
Mar. 31, 2018 | |
Concentration, Geographic [Abstract] | |
CONCENTRATION, GEOGRAPHIC | 11 — CONCENTRATION, GEOGRAPHIC As of March 31, 2018, the Company has customers representing 12.7%, 12.2%, 11.2%, and 10.3% of total accounts receivable; with each customer generating revenues representing 5.8%, 5.4%, 4.6%, and 4.4% of total revenues for the year ended March 31, 2018. As of March 31, 2017, the Company has customers representing 56.0%, 13.6%, 13.0%, and 13.0% of total accounts receivable; with each customer generating revenues representing 8.6%, 2.6%, 2.4%, and 2.4% of total revenues for the year ended March 31, 2017. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | 12 — SEGMENT REPORTING The following provides the results of operations and the financial position of the Company’s operating segments as of and during the year ended March 31, 2018. The Company did not have operating segments as of and for the year ended March 31, 2017; accordingly, comparative figures are not provided. The Longyun operating segment reflects the Company’s crowdfunding and incubation business. The Taikexi operating segment reflects the Company’s business of auto parts sourcing and logistics services. Results of Operations For the year ended March 31, 2018 Longyun Taikexi Other Total Revenue 4,271,966 6,763 - 4,278,729 Operating expenses 2,105,441 176,543 1,612,704 3,894,688 Other income (expenses) 248,655 211 126,011 374,877 Earnings (loss) before tax 2,415,180 (169,569 ) (1,486,693 ) 758,918 Taxes 633,614 - - 633,614 Net income 1,781,566 (169,569 ) (1,486,693 ) 125,304 Income (loss) attributable to LYL 1,781,566 (101,742 ) (1,486,693 ) 193,131 Financial Position as of March 31, 2018 Longyun Taikexi Other Total Current assets 11,096,311 828,844 (132,088 ) 11,793,067 Non-current assets 2,218,191 139,639 (1,133,199 ) 1,224,631 Total assets 13,314,502 968,483 (1,265,287 ) 13,017,698 Current liabilities 4,993,098 1,992 (2,970,885 ) 2,024,205 Non-current liabilities - - - - Total liabilities 4,993,098 1,992 (2,970,885 ) 2,024,205 Net assets 8,321,404 966,491 1,705,598 10,993,493 |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2018 | |
Income Taxes [Abstract] | |
INCOME TAXES | 13 — INCOME TAXES The Company formed in Cayman Islands is not subject to tax on its income or capital gains. In addition, upon payments of dividends by the Company to its shareholders, no Cayman Islands withholding tax is imposed. The Company subsidiary formed in British Virgin Island is not subject to tax on its income or capital gains. In addition, upon payments of dividends by the Company to its shareholders, no Cayman Islands withholding tax is imposed. The Company’s subsidiary formed in Hong Kong is subject to the profits tax rate at 16.5% for income generated and operation in the special administrative region. The Company’s subsidiaries incorporated in the PRC are subject to profits tax rate at 25% for income generated and operation in the country. The full realization of the tax benefit associated with the carry forward depends predominantly upon the Company’s ability to generate taxable income during the carry forward period. The Company’s subsidiaries incorporated in the PRC has unused net operating losses (“NOLs”) available for carry forward to future years for PRC income tax reporting purposes up to five years. The Company recorded a deferred tax asset in the amount of $0 and $0 at March 31, 2018 and 2017, respectively. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility is uncertain. Based on the assessment, the Company has established a deferred tax asset relating to NOLs at March 31, 2018 due to the Company’s performance in the upcoming years. However, the Company established a full valuation allowance against all of the deferred tax asset relating to NOLs because the benefit from utilization of NOL carry forwards could be subject to limitations as material structural changes resulted from the Company going public through VIE arrangement on August 19, 2016. The following table reconciles the statutory rates to the Company’s effective tax rate: For the Years Ended March 31, 2018 March 31, 2017 March 31, 2016 Statutory rates in Cayman Islands and BVI 0.0 % 0.0 % 0.0 % Statutory rates in Hong Kong 15.0 % 0.0 % 0.0 % Statutory rates in PRC 25.0 % 25.0 % 25.0 % Foreign earned income not subject to taxes in the Cayman Island -40.0 % -25.0 % -25.0 % Additional accruals in the PRC 83.5 % 12.0 % 21.0 % Effect of valuation allowance 0.0 % 8.2 % 0.0 % Effective income tax rate 83.5 % 20.2 % 21.0 % For the Years Ended March 31, 2018 March 31, 2017 March 31, 2016 Income (loss) before taxes: Cayman Islands $ (1,550,037 ) $ (119,790 ) (39,223 ) BVI - (46,630 ) (5,213 ) Hong Kong 63,343 (4,229 ) (3,558 ) PRC 2,245,611 2,348,948 865,663 Total income (loss) before taxes 758,917 2,178,299 817,669 Provision for taxes (benefits): Cayman Islands - - - BVI - - - Hong Kong - - - PRC 633,614 464,327 164,817 Provision for income taxes (benefits) 633,614 464,327 164,817 Deferred tax assets: Cayman Islands - - - BVI - - - Hong Kong - - - PRC 179,665 - 66,934 Less: Valuation allowance (179,665 ) - (66,527 ) Currency Effect - - (407 ) Deferred tax assets, net - - - Total provision for taxes $ 633,614 $ 464,327 164,817 Effective tax rate 83.5 % 21.3 % 20.2 % |
Restricted Net Assets and Statu
Restricted Net Assets and Statutory Reserves | 12 Months Ended |
Mar. 31, 2018 | |
Restricted Net Assets and Statutory Reserves [Abstract] | |
RESTRICTED NET ASSETS AND STATUTORY RESERVES | 14 — RESTRICTED NET ASSETS AND STATUTORY RESERVES PRC laws and regulations permit payments of dividends by the Company’s subsidiaries and VIEs incorporated in the PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, the Company’s subsidiaries and VIEs incorporated in the PRC are required to annually appropriate 10% of their net income to the statutory reserve prior to payment of any dividends, unless such reserve have reached 50% of their respective registered capital. In addition, registered share capital and capital reserve accounts are also restricted from withdrawal in the PRC, up to the amount of net assets held in each subsidiary and VIE. As a result of the restrictions described above and elsewhere under PRC laws and regulations, the Company’s subsidiaries and VIEs incorporated in the PRC are restricted in their ability to transfer a portion of their net assets to the Company in the form of dividends. Even though the Company currently does not require any such dividends, loans or advances from the PRC entities for working capital and other funding purposes, the Company may in the future require additional cash resources from them due to changes in business conditions, funding of future acquisitions and development, or merely to declare and pay dividends or distributions to its shareholders. Except for the above or disclosed elsewhere, there is no other restriction on the use of proceeds generated by the Company’s subsidiaries and VIEs to satisfy any obligations of the Company. |
Commitments & Contingencies
Commitments & Contingencies | 12 Months Ended |
Mar. 31, 2018 | |
Commitments & Contingencies [Abstract] | |
COMMITMENTS & CONTINGENCIES | 15 — COMMITMENTS & CONTINGENCIES Operating lease commitments for office facility The Company has leased office premises under various operating lease agreements. These leases have varying terms and renewal rights. The future aggregate minimum lease payments under operating leases are as follows: Periods For year ended March 31, 2019 $ 591,833 For year ended March 31, 2020 424,974 For year ended March 31, 2021 392,318 For year ended March 31, 2022 9,946 Thereafter 8,184 Total $ 1,427,255 For the years ended March 31, 2018, 2017, and 2016, the Company incurred rental expenses under operating leases of $308,238, $114,096, and $64,494 respectively. On February 2017, the Company has cancelled certain lease agreements prior to the end of the lease terms. The Company’s rent was waived by the unaffiliated third-party landlord of the property as the Company satisfied certain annual obligations according to the terms and conditions of the lease agreement. As of March 31, 2018, as a result of the cancellation of these lease agreements, the Company accrued rent expenses and penalties totaling $111,885 (RMB 770,950). On January 2017, the Company entered into lease agreement for office space in Hong Kong for a duration of two years. On February 2017, the Company entered into lease agreements for office space in Hangzhou, China for a duration of two years. Leases commitments The Company has leased motor vehicle under non-cancellable capital lease agreements which expired on January 2017. For the years ended March 31, 2018, 2017, and 2016, the Company incurred interest expenses under capital leases of $0, $0, and $2,763, respectively. Capital commitments The Company entered into a contract with a general contractor for $1,174,338 (RMB 8,000,000) to perform leasehold improvements to an office space at a new building in the Yuehuangshan South Fund Village Area of Hangzhou. As of March 31, 2018, the Company had prepaid $755,466 (RMB 5,000,000) and under the terms of the contract, is required to pay an additional $418,872 (RMB 3,000,000). The prepayment has been classified as leasehold improvements under property, plant and equipment. Risk, Uncertainties, and Contingencies The Company has cash balances held at financial institutions located in China, PRC which are not federally insured deposit protection. Accordingly, the Company has a concentration of credit risk related to these uninsured bank deposits. The Company has not experienced any losses in such accounts and believes it is not exposed to significant credit risk in this area. Customer accounts typically are collected within a short period of time, and based on its assessment of current conditions and its experience collecting such receivables, management believes it has no significant risk related to its concentration within its accounts receivable. The Company has limited operating history while the Company is dependent upon certain related parties to provide continued funding and capital resources. If continued funding and capital resources are unavailable at reasonable terms, the Company may not be able to implement its plan of operations. The Company has significant outstanding receivables from related parties. If the related party balances were not repaid in a timely manner it may have negative effect on the Company’s operation. On October 9, 2016, Mr. Yu Han repaid $1,334,064 (RMB 8,917,562) to the Company. The Company is incorporated in the Cayman Islands and considered as a foreign entity under PRC laws. Due to the restrictions on foreign investment and ownership on the business related to Internet content provision, telecom value-added services, financial services and others, the Company conducts its business through various contractual arrangements with its VIE that are generally owned and controlled by certain management members or founders of the Company. The VIE holds the licenses and approvals that are essential for their business operations in the PRC and the Company has entered into various agreements with the VIE and their equity holders such that the Company has the right to benefit from their licenses and approvals and generally has control of the VIE. In the Company’s opinion, the current ownership structure and the contractual arrangements with the VIE and their equity holders as well as the operations of the VIE are in substantial compliance with all existing PRC laws, rules and regulations. However, there may be changes and other developments in PRC laws, rules and regulations. Accordingly, the Company gives no assurance that PRC government authorities will not take a view in the future that is contrary to the opinion of the Company. If the current ownership structure of the Company and its contractual arrangements with the VIE and their equity holders were found to be in violation of any existing or future PRC laws or regulations, the Company’s ability to conduct its business could be impacted and the Company may be required to restructure its ownership structure and operations in the PRC to comply with the changes in the PRC laws which may result in deconsolidation of the VIE. The PRC market in which the Company operates poses certain macro-economic and regulatory risks and uncertainties. These uncertainties extend to the ability of the Company to operate or invest in online and mobile commerce or other Internet related businesses, representing the principal services provided by the Company, in the PRC. The information and technology industries are highly regulated. Restrictions are currently in place or are unclear regarding what specific segments of these industries foreign owned enterprises, like the Company, may operate. If new or more extensive restrictions were imposed on the segments in which the Company is permitted to operate, the Company could be required to sell or cease to operate or invest in some or all of its current businesses in the PRC. The Company’s sales, purchase and expense transactions are generally denominated in RMB and a significant portion of the Company’s assets and liabilities are denominated in RMB. The RMB is not freely convertible into foreign currencies. In the PRC, foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the PBOC. Remittances in currencies other than RMB by the Company in the PRC must be processed through the PBOC or other PRC foreign exchange regulatory bodies and require certain supporting documentation in order to affect the remittance. If such foreign exchange control system prevents the Company from obtaining sufficient foreign currencies to satisfy its currency demands, the Company may not be able to pay dividends in foreign currencies and the Company’s ability to fund its business activities that are conducted in foreign currencies could be adversely affected. The securities financing industry is heavily regulated by the PRC government. Various regulatory authorities of the PRC central government, such as the China Securities Regulatory Commission (the “CSRC”), State Administration for Industry and Commerce (the “SAIC”), the China Banking Regulatory Commission (the “CBRC”), the State Administration of Foreign Exchange (the “SAFE”), the State Administration of Taxation (the “SAT”), and the Supreme People’s Court (the “SPC”) have the authority to issue and implement regulations governing various aspects of the securities offerings. Currently, there are no regulations or rules specifically governing crowdfunding offerings in the PRC. Although on December 2014, a set of proposed private equity-based crowdfunding rules were promulgated by the Securities Association of China, an industry self-regulatory association, they are not yet finalized or adopted. Our crowdfunding platform currently only provides reward-based crowdfunding in the PRC market, and do not provide equity-based or debt-based crowdfunding in the PRC market. As such, the Company believes that it is not subject to the PRC proposed rules regarding equity-based crowdfunding. The Company has acted on behalf of one of its client as part of an agent agreement to enter into various third-party suppliers’ and customers’ agreements. If any dispute is to be arose and unresolved between the client, third party suppliers, third-party customers, and the Company, the Company may be subject to potential obligation or held responsible for certain actions. The Company has engaged third-party agents to collect and disburse certain cash which are held by the third-party agent as an escrow without insurance. Accordingly, the Company has a credit risk related to these uninsured deposits. The Company has not experienced any losses in such accounts and believes it is not exposed to significant credit risk in this area. If any dispute is to be arose and unresolved between the escrow agent, third-party suppliers, third-party customers, and the Company, the Company may be subject to potential obligation or held responsible for certain losses. Fines and penalties by Housing Authority According to the relevant PRC regulations on housing provident funds, PRC enterprises are required to contribute housing provident funds for their employees. The monthly contributions for HangZhou City is at 12% of each employee’s average monthly income in the previous year. The Company has not contributed such funds for its employees since its establishment and the accumulated unpaid amount is approximately $32,487 (RMB 216,280) as of March 31, 2018. Under local regulations on collection of housing provident funds in Hangzhou City where the Company’s subsidiary, HangZhou LongYun, is located, the local housing authority may require the Company to rectify its non-compliance by setting up bank accounts and making payment and relevant filings for the unpaid housing funds for its employees within a specified time period. If the Company fails to do so within the specified time period, the local housing authority may impose a monetary fine of RMB 10,000 up to RMB 50,000 and may also submit to the local people’s court for enforcement. The Company’s employees may also be entitled to claim payment of such funds individually. The Company has received signed waivers from its employees to relinquish the withholding of the housing provident funds from their salary and agreed not to hold the Company responsible. If the Company receives any notice from the local housing authority or any claim from our current and former employees regarding the Company’s non-compliance with the regulations, the Company will be required respond to the notice and pay all amounts due to the government, including any administrative penalties imposed, which would require the Company to divert its financial resources and/or impact its cash reserves, if any, to make such payments. Additionally, any administrative costs in excess of the payments, if material, may impact the Company’s operating results. To date, the Company has not received any notice from the local housing authority or any claim from our current and former employees. Starting from April 2017, the Company started remitting the requisite housing provident fund payments for its employees based upon their monthly salaries. As such, the Company believes it will be in full compliance with all applicable PRC housing provident fund regulations. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 15 — SUBSEQUENT EVENTS The Company evaluates subsequent events that have occurred after the balance sheet date but before the financial statements are issued. There are two types of subsequent events: (1) recognized, or those that provide additional evidence with respect to conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements, and (2) non-recognized, or those that provide evidence with respect to conditions that did not exist at the date of the balance sheet but arose subsequent to that date. As of December 25, 2017, except for any subsequent events detailed above, the Company has determined that there are no other material subsequent events that occurred after the balance sheet date, and up to the issuance date of these financial statements that required disclosure. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Principles of Presentation | a) Principles of Presentation The consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America. This basis of accounting involves the application of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when incurred. The Company’s consolidated financial statements are expressed in U.S. dollars. |
Principles of Consolidation | b) Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its significant subsidiaries on a consolidated basis. The Company also includes subsidiaries over which a direct or indirect legal or effective control exists and for which the Company is deemed to direct the significant activities and has the obligation to absorb the losses or benefits of the entities. All intercompany accounts, balances and transactions with consolidated entities have been eliminated. Acquisition of Sweet Lollipop, Long Yun HK by Dragon Victory The acquisitions were accounted under US GAAP as a business combination under common control with Dragon Victory being the acquirer and Sweet Lollipop and Long Yun HK being the acquirees because all entities were controlled directly or indirectly by the same majority shareholder Mr. Yu Han. The consolidation has been presented at historical costs and on a retroactive basis to reflect the capital structure of Sweet Lollipop and Long Yun HK as a recapitalization. The business combination transaction of Sweet Lollipop was completed and effective on June 26, 2015 and Sweet Lollipop became a 100% owned subsidiary of Dragon Victory. The business combination transaction of Long Yun HK was completed and effective on August 10, 2015 and Long Yun HK became a 100% owned subsidiary of Sweet Lollipop. VIE Agreements between WFOE I and HangZhou Longyun and its shareholders (subsequently between WFOE II and HangZhou Longyun) The Company evaluates the need to consolidate its VIE in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. The transactions contemplated by the Original VIE agreements consummated on August 19, 2016, and subsequent terminated were replaced by New VIE Agreements consummated on March 20, 2018 to take full advantage of certain preferential tax treatments and subsidies granted by the local government of Shangcheng District of Hangzhou, Zhejiang province, where WFOE II was incorporated. WFOE I and WFOE II shall be collectively referred to as the “WFOEs” The purpose and design of the VIE Agreements between the WFOEs and HangZhou Longyun, was to consolidate Hangzhou Longyun under the Company by way of common control. ASC 810-10-25-38F states that a reporting entity’s involvement in the design of a VIE may indicate that the reporting entity had the opportunity and the incentive to establish arrangements that result in the reporting entity being the variable interest holder with the power to direct the activities that most significantly impact the VIE’s economic performance. As both the Company and HangZhou Longyun are commonly control by Mr. Yu Han and Ms. Koulin Han, both immediately before and after the acquisition, this transaction was accounted for as a merger under common control, using merger accounting as if the merger had been consummated at the beginning of the earliest period presented, and no gain or loss was recognized. All the assets and liabilities of HangZhou Longyun are carried using their original basis. Hence, HangZhou Longyun was consolidated under the Company since its inception due to the purpose and design of the establishment of the VIE Agreements. The purpose of the VIE Agreements is solely to give the WFOEs the exclusive control over HangZhou Longyun’s management and operations. While there is no restriction for HangZhou Longyun, our VIE entity, to pay the WFOEs, our wholly owned subsidiary, there are certain restrictions for the WFOEs to make payments to the holding companies due to certain regulations imposed by the Chinese government on out-going foreign currency wire transfers. Additionally, there could be potential tax implications when moving the cash flows up to the Company. Therefore, the Company intends to retain any earnings within HangZhou Longyun, and the retained cash flows would be utilized in expanding the Company’s business. The significant terms of the VIE Agreements are summarized below: Exclusive Business Cooperation Agreement Pursuant to the Exclusive Business Cooperation Agreement between HangZhou Longyun and the WFOEs, the WFOEs provides HangZhou Longyun with technical support, consulting services and other management services relating to its day-to-day business operations and management, on an exclusive basis, utilizing its advantages in technology, human resources, and information. Additionally, HangZhou Longyun grants an irrevocable and exclusive option to the WFOEs to purchase from HangZhou Longyun, any or all of its assets, to the extent permitted under the PRC laws. the WFOEs shall own all intellectual property rights that are developed during the course of the agreement. For services rendered to HangZhou Longyun by the WFOEs under the Agreement, the service fee HangZhou Longyun is obligated to pay shall be calculated based on the time of services rendered multiplied by the corresponding rate, which is approximately equal to the net income of HangZhou Longyun. The Exclusive Business Cooperation Agreement shall remain in effect for ten years until it is terminated by the WFOEs with 30-day prior notice. HangZhou Longyun does not have the right to terminate the agreement u0aterally. Share Pledge Agreement Under the Share Pledge Agreement between the shareholders of HangZhou Longyun and the WFOEs, the various shareholders of HangZhou Longyun pledged all of their equity interests in HangZhou Longyun to the WFOEs to guarantee the performance of HangZhou Longyun’s obligations under the Business Cooperation Agreement. Under the terms of the Agreement, in the event that HangZhou Longyun or its shareholders breach their respective contractual obligations under the Exclusive Business Cooperation Agreement, the WFOEs, as pledgee, will be entitled to certain rights, including, but not limited to, the right to collect dividends generated by the pledged equity interests. The shareholders of HangZhou Longyun also agreed that upon occurrence of any event of default, as set forth in the Share Pledge Agreement, the WFOEs is entitled to dispose of the pledged equity interest in accordance with applicable PRC laws. The shareholders of HangZhou Longyun further agree not to dispose of the pledged equity interests or take any actions that would prejudice the WFOEs’s interest. Exclusive Option Agreement Under the Exclusive Option Agreement, the shareholders of HangZhou Longyun irrevocably granted the WFOEs (or its designee) an exclusive option to purchase, to the extent permitted under PRC law, all of the equity interests in HangZhou Longyun. The option price is equal to the capital paid in by the HangZhou Longyun shareholders. The agreement remains effective for a term of ten years and may be renewed at the WFOEs’ election. Power of Attorney Under the Power of Attorney, the shareholders of HangZhou Longyun authorize the WFOEs to act on their behalf as their exclusive agent and attorney with respect to all rights as shareholders, including but not limited to: (a) attending shareholders’ meetings; (b) exercising all the shareholder’s rights, including voting, that shareholders are entitled to under the laws of China and the Articles of Association, including but not limited to the sale or transfer or pledge or disposition of shares in part or in whole; and (c) designating and appointing on behalf of shareholders the legal representative, the executive director, supervisor, the chief executive officer and other senior management members of HangZhou Longyun. Under these contractual arrangements with the VIEs, the Company has the power to direct activities of the VIE and can have assets transferred out of the VIE under its control. Therefore, the Company considers that there is no asset in any of the consolidated VIE that can be used only to settle obligations of the VIE, except for registered capital and PRC statutory reserves. As the consolidated VIE is incorporated as limited liability companies under the PRC Company Law, creditors of the VIE do not have recourse to the general credit of the Company for any of the liabilities of the consolidated VIE. The Company’s management has determined that via the VIE agreements, it is the primary beneficiary of Hangzhou Longyun. The Company’s total assets and liabilities presented in the consolidated financial statements represent substantially portion of the total assets and liabilities of the VIE because the other entities in the consolidation are non-operating holding entities with significantly less assets and liabilities. The following financial statement amounts and balances of the VIE, were included in the accompanying consolidated financial statements as of March 31, 2018 and 2017, and for the years ended March 31, 2018 and 2017, respectively: March 31, March 31, Financial Position at: 2018 2017 Current assets 8,151,121 4,202,662 Non-current assets 121,071 158,938 Total assets 8,272,192 4,361,600 Current liabilities 2,834,470 1,087,738 Non-current liabilities - - Total liabilities 2,834,470 1,087,738 Net assets 5,437,722 3,273,862 For the Years Ended Results of Operations: March 31, 2018 March 31, 2017 March 31, 2016 Revenues 4,271,966 3,590,217 1,662,406 Operating expenses 1,995,178 1,404,402 935,788 Other income (expenses) net (275,665 ) (163,151 ) (139,045 ) Earnings before tax 2,221,646 2,348,966 865,663 Tax expenses (benefits) 633,614 464,327 164,817 Net income 1,918,839 1,884,639 700,846 |
Use of Estimates | c) Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Accounts Receivable and Allowance for Doubtful Accounts | d) Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are carried at the amount billed to a customer, net of the allowance for doubtful accounts, which is an estimate for credit losses based on a review of all outstanding amounts on a regular basis. Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering a customer’s financial condition, credit history and current economic conditions. Accounts receivable are written off when deemed uncollectible against allowances provided. Recoveries of accounts receivable previously written off are recorded when received. The Company reviews the collectability of accounts receivable based on an assessment of historical experience, current economic conditions, and other collection indicators. For the years ended March 31, 2018, 2017 and 2016, the Company has not experienced any uncollectible balances and after management assessed the credibility related to balances outstanding at March 2018, it determined that no additional allowance was necessary; accordingly, the Company has recorded allowances for doubtful accounts of $0 and $0, respectively. |
Investments | e) Investments Cost Method Investments Direct and or indirect investments in business entities in which the Company does not have a controlling financial interest and has no ability to exercise significant influence over operating and financial policies (generally 0 – 20 percent ownership), are accounted for by the cost method. Equity Method Investments Direct and or indirect investments in business entities in which the Company does not have a controlling financial interest but has the ability to exercise significant influence over operating and financial policies (generally 20 – 50 percent ownership), are accounted for by the equity method. Held-to-Maturity Investments The Company had certain held-to-maturity debt instrument as investments. These investments were not impaired and were recorded at their carrying values which were based on the amortized cost basis approximate their fair market value; accordingly, the Company has not recognized any unrecognized gain or losses in the other comprehensive income. There were no derivative instruments that were used to hedge these investments. These investments are accounted as short-term investments as they had maturities with one year or less. |
Property and Equipment | f) Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is charged to operations using the straight-line method over the estimated useful lives of the assets. Property and equipment and its estimated useful lives as follows: Computer Equipment 1 – 3 years Office Equipment 4 – 5 years Motor Vehicle 4 years Expenditures for maintenance and repairs are charged to operations as incurred. Expenditures for betterments and major renewals are capitalized. The cost of assets sold or retired and the related amounts of accumulated depreciation are eliminated from the accounts in the year of disposal, and any resulting gains or losses are included in operations. |
Intangible Assets with Definite Lives | g) Intangible Assets with Definite Lives Intangible assets are stated at cost, net of accumulated amortization. Amortization is charged to operations using the straight-line method over the estimated useful lives of the assets. Intangible assets and its estimated useful lives as follows: Software 5 years |
Revenue Recognition | h) Revenue Recognition Crowdfunding The Company generates its revenue from success fees from transactions on the crowdfunding platform. Revenue from these transactions is accounted for at the moment a project is successfully funded. At the start of a funding campaign, the entrepreneur enters into a contract with the Company pursuant to which he or she agrees to pay the Company a success fee once a successful fund-raising campaign for that entrepreneur closes. Once the funding campaign has closed, the Company’s success fee is either collected from the funds raised prior to transferring the net proceeds of the funding to the entrepreneur or to be collected from the entrepreneur after the net proceeds of the funding are transferred to the entrepreneur. Upon completion of the funding campaign, services delivered under the contract with the entrepreneur have been completed and the Company recognizes its success fee revenues, net of any discounts given at the time the campaign has been closed successfully. Also, because the success fee percentage is stated in the contract with the entrepreneur prior to the start of the funding campaign, the Company believes that this amount is fixed and, assuming the successful conclusion of the funding campaign, collectible from the entrepreneur. This revenue recognition policy complies with ASC 606 in that it is based on written agreements with the entrepreneurs, contractual services have been completed, pricing is fixed and determinable based on agreements with the customer and collectability is reasonably assured as the customers of the Company have just received their new funding. Incubation Service The Company generates its revenue by providing business and operation advisory services relating to matters related to marketing, sales, and strategic planning, and ancillary services such as coordinating human resources, legal, accounting, operations, assisting with feasibility studies and other types of services at the election of the entrepreneur. The Company provides its incubation services on an ongoing and/or as-needed basis, pursuant to consulting agreements with the entrepreneurs. For ongoing basis services, revenue is recognized on an ongoing basis for the agreed periodic service fee. For as-needed basis, revenue is recognized when the contractual services have been completed. Finder’s Service Fee The Company generates its revenue for assisting any business entity in raising funds as well as for introducing business partners, acquisition candidates or other strategic relationships to the business entity, usually from one or more sources with which the Company or personnel have relationships. The Company provides its finder services pursuant to an agreement and revenue is recognized when the contractual services have been completed and the terms and conditions in the agreements have been met. Procurement Service The Company generates its revenues from service fees by providing procurement services for sourcing, accounts receivables financing, and logistics services relating to auto parts and accessories on an as needed basis. The transaction price is determined when the customer places an order with the Company. The Company recognize revenues when the procured goods have been transferred to and accepted by the customers as its performance obligation is completed. In 2014, the FASB issued guidance on revenue recognition (“ASC 606”), with final amendments issued in 2016. The underlying principle of ASC 606 is to recognize revenue to depict the transfer of goods or services to customers at the amount expected to be collected. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contracts, which includes (1) identifying the contracts or agreements with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. The Company has applied the five-step model to recognize revenue when it is probable that the Company will collect the consideration it is entitled to in exchange for the services it transfers to its clients. The Company has concluded that the new guidance did not require any significant change to its revenue recognition processes. |
Fair Value of Financial Instruments | i) Fair Value of Financial Instruments The accounting standard for fair value establishes a framework for measuring fair value and enhances fair value measurement disclosure. Under the provisions of the pronouncement, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is described below: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. The Company’s current financial assets and liabilities approximate fair value due to their short-term nature and include cash accounts. The Company’s borrowings approximate fair value as the rates of interest are similar to what they would receive from other financial institutions. The following table summarizes the Company's assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy: Carrying Amount Estimated Level 1 Level 2 Level 3 Fair Value March 31, 2018 Assets Carried at (amortized) cost: Corporate debt securities - - 4,744,328 4,744,328 March 31, 2017 Assets Carried at (amortized) cost: Corporate debt securities - - - - |
Foreign Currency Translation | j) Foreign Currency Translation The Company uses the United States dollar (“U.S. dollars” or “USD”) for financial reporting purposes and to maintain its books and records. The Company’s subsidiaries maintain their books and records in their functional currency which is in Chinese Renminbi (“RMB”). In general, for consolidation purposes, the Company translates its assets and liabilities into U.S. dollars using the applicable exchange rates prevailing at the balance sheet date, the statements of operations and cash flows are translated at average exchange rates during the reporting period, and the equity accounts are translated at historical rates. As a result, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheet. Adjustments resulting from the translation of the financial statements are recorded as accumulated other comprehensive income or loss. Exchange rate used for the translation as follows: March 31, March 31, March 31, 2018 2017 2017 Period/year end RMB:US$ exchange rate 6.61843 6.89053 6.4479 Period/annual average RMB:US$ exchange rate 6.50682 6.729145 6.3178 Period/year end HKD:US$ exchange rate 7.77047 7.77047 7.7544 Period/annual average HKD:US$ exchange rate 7.75883 7.75883 7.7566 |
Advertising | k) Advertising Advertising costs are expensed as incurred as selling expenses. Advertising expenses were $19,769 and $8,808 for the years ended March 31, 2018 and 2017, respectively. |
Income Taxes | l) Income Taxes Income taxes have been determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. Deferred taxes result from differences between the financial statement and tax bases of the Company’s assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The assessment of whether or not a valuation allowance is required often requires significant judgment. |
Earnings (Loss) Per Common Share | m) Earnings (Loss) Per Common Share Basic and diluted net loss per share is presented in conformity with ASC Topic 260, Earnings per Share, for all periods presented. In accordance with this guidance, basic and diluted net loss per share was determined by dividing net loss applicable to common stockholders by the weighted-average common shares outstanding during the period. In a period where there is a net loss position, diluted weighted average shares are the same as basic weighted average shares. Shares used in the diluted net loss per common share calculation exclude potentially dilutive share equivalents as the effect would be antidilutive. |
Comprehensive Income (Loss) | n) Comprehensive Income (Loss) Comprehensive loss refers to revenues, expenses, gains and losses that under U.S. GAAP are included in comprehensive loss, but are excluded from net loss as these amounts are recorded directly as an adjustment to stockholders’ equity. The Company’s other comprehensive loss is comprised of foreign currency translation adjustments. |
Recent Accounting Pronouncements | o) Recent Accounting Pronouncements In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business, which narrows the existing definition of a business and provides a framework for evaluating whether a transaction should be accounted for as an acquisition (or disposal) of assets or a business. The ASU requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities (collectively, the set) is not a business. To be considered a business, the set would need to include an input and a substantive process that together significantly contribute to the ability to create outputs. The standard also narrows the definition of outputs. The definition of a business affects areas of accounting such as acquisitions, disposals and goodwill. Under the new guidance, fewer acquired sets are expected to be considered businesses. For the Company, this ASU is effective January 1, 2018 on a prospective basis with early adoption permitted. The Company has adopted this guidance, and determined that there was no material impact to the financial statements presented herein. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. Under the new standard, goodwill impairment would be measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying value of goodwill. This ASU eliminates existing guidance that requires an entity to determine goodwill impairment by calculating the implied fair value of goodwill by hypothetically assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. For the Company, this ASU is effective prospectively to impairment tests beginning January 1, 2020, with early adoption permitted at the time of any interim impairment test that may be performed prior to that date. The Company has adopted this ASU in the fourth quarter of 2017 In February 2016, the FASB issued ASU No. 2016-02, Leases, requiring lessees to recognize assets and liabilities for leases with lease terms of more than 12 months in the balance sheet. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new guidance is effective for fiscal years and for interim periods within those fiscal years, beginning after December 15, 2018. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company will adopt this guidance in April of 2018. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing”. The amendments add further guidance on identifying performance obligations and also to improve the operability and understandability of the licensing implementation guidance. The amendments do not change the core principle of the guidance in Topic 606. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in Topic 606. The Company has adopted this new guidance and has re-evaluated its revenue recognition principles to ensure that they are in line with this guidance. In June 2016, the FASB issued Accounting Standards Update No. 2016-13 (ASU 2016-13) “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. ASU 2016-13 is effective for annual reporting periods, and interim periods within those years beginning after December 15, 2019. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments, which is intended to reduce diversity in practice in how certain cash receipts and payments are presented and classified in the statement of cash flows. The standard provides guidance in a number of situations including, among others, settlement of zero-coupon bonds, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, and distributions received from equity method investees. The ASU also provides guidance for classifying cash receipts and payments that have aspects of more than one class of cash flows. The Company has adopted the new guidance. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of consolidated financial statements | March 31, March 31, Financial Position at: 2018 2017 Current assets 8,151,121 4,202,662 Non-current assets 121,071 158,938 Total assets 8,272,192 4,361,600 Current liabilities 2,834,470 1,087,738 Non-current liabilities - - Total liabilities 2,834,470 1,087,738 Net assets 5,437,722 3,273,862 For the Years Ended Results of Operations: March 31, 2018 March 31, 2017 March 31, 2016 Revenues 4,271,966 3,590,217 1,662,406 Operating expenses 1,995,178 1,404,402 935,788 Other income (expenses) net (275,665 ) (163,151 ) (139,045 ) Earnings before tax 2,221,646 2,348,966 865,663 Tax expenses (benefits) 633,614 464,327 164,817 Net income 1,918,839 1,884,639 700,846 |
Schedule of property and equipment estimated useful lives | Computer Equipment 1 – 3 years Office Equipment 4 – 5 years Motor Vehicle 4 years |
Schedule of intangible assets and its estimated useful lives | Software 5 years |
Schedule of fair value of financial instruments | Carrying Amount Estimated Level 1 Level 2 Level 3 Fair Value March 31, 2018 Assets Carried at (amortized) cost: Corporate debt securities - - 4,744,328 4,744,328 March 31, 2017 Assets Carried at (amortized) cost: Corporate debt securities - - - - |
Schedule of exchange rate used for translation | March 31, March 31, March 31, 2018 2017 2017 Period/year end RMB:US$ exchange rate 6.61843 6.89053 6.4479 Period/annual average RMB:US$ exchange rate 6.50682 6.729145 6.3178 Period/year end HKD:US$ exchange rate 7.77047 7.77047 7.7544 Period/annual average HKD:US$ exchange rate 7.75883 7.75883 7.7566 |
Other Receivables and Prepaym26
Other Receivables and Prepayments (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Other Receivables and Prepayments [Abstract] | |
Summary of other receivables and prepayments | March 31, March 31, Advances to employees $ 117,983 $ 6,604 Advance to service providers 35,984 2,299 Deposits for leases due within one operating period 12,167 22,030 Prepayments and prepaid expenses 574,992 59,480 Interest receivables 116,562 - Other receivables 375,737 - $ 1,233,425 $ 90,413 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Property and Equipment [Abstract] | |
Schedule of property and equipment | March 31, 2018 March 31, 2017 Leasehold improvements $ 755,466 $ - Computer and equipment 202,292 50,267 Motor vehicle 161,074 25,468 Less-Accumulated depreciation (58,456 ) (42,911 ) Total, net $ 1,060,376 $ 32,824 |
Intangible Asset (Tables)
Intangible Asset (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Intangible Asset [Abstract] | |
Schedule of intangible asset | Software $ 1,867 $ 1,251 Less-Accumulated Amortization (498 ) (439 ) Total, net $ 1,369 $ 812 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Summary of Investment Holdings [Line Items] | |
Schedule of amortized cost and fair value of investment securities held-to-maturity | Investment Securities Held-to-Maturity Amortized Unrealized Unrealized Estimated Cost Gains Losses fair value March 31, 2018 Corporate debt securities $ 4,744,328 $ - $ - $ 4,744,328 Total $ 4,744,328 $ - $ - $ 4,744,328 March 31, 2017 Corporate debt securities $ - $ - $ - $ - Total $ - $ - $ - $ - |
Investment securities [Member] | |
Summary of Investment Holdings [Line Items] | |
Schedule of amortized cost and fair value of investment securities held-to-maturity | Periods March 31, 2018 March 31, 2017 Due in one year or less $ 4,744,328 $ - Due after one year through five years - - Due after five years through ten years - - Due after ten years - - Total $ 4,744,328 $ - |
Investments in Entities and i30
Investments in Entities and its Valuations (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Investments in Entities and its Valuations [Abstract] | |
Schedule of investments | March 31, 2018 March 31, 2017 JiaXing YiTou ShangMa Investments Limited Partnership Company $ 75,547 $ 72,563 Total, net |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of related parties' transactions | Name Relationship Mr. Sun JianJun CEO of the Company. Mr. Han Yu Majority shareholder of the Company. HangZhou TianQi Network Technology Co. Ltd. Mr. Han Yu, Majority shareholder of the Company owns 27%. Mr. Liao Xu CMO of the Company. Mr. Yuan Qiang CTO of the Company Mr. Sun Mang Yue Director, CEO and shareholder of the Company’s subsidiary |
Schedule of other related parties receivables | March 31, 2018 March 31, 2017 Mr. Han Yu $ 40,414 $ 37,425 Mr. Sun Mang Yue 226,545 - Mr. Yuan Qiang - 23,190 Mr. Liao Xu - 6,530 Total $ 266,959 $ 67,145 |
Schedule of other related parties payables | March 31, 2018 March 31, 2017 Mr. Sun JianJun $ 19,971 $ - HangZhou TianQi Network Technology Co. Ltd. 44,727 42,960 Total $ 64,698 $ 42,960 |
Statement of Operations - Detai
Statement of Operations - Details (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Statement of Operations - Details [Abstract] | |
Schedule of operations details | For the Years Ended March 31, 2018 March 31, 2017 March 31, 2016 Revenues Crowdfunding $ 1,074,101 $ 883,209 $ 767,779 Incubation Service 3,197,865 2,707,008 595,980 Procurement Services 6,763 - 298,647 Total 4,278,729 3,590,217 1,662,406 Operating Expenses Professional Fees 1,329,279 529,759 369,923 Wages & Benefits 1,691,204 310,680 236,778 Travel Expenses 203,701 72,953 51,846 Depreciation & Amortization 20,174 21,295 20,838 Data Services 127,355 316,986 118,596 Rent Expense 308,238 114,096 64,494 Advertising 19,769 8,808 - Business Taxes and Surcharges 10,168 14,873 11,298 Meals & Entertainment 117,874 - - Other 66,926 37,012 110,010 Impairment Loss - 148,607 - Total $ 3,894,688 $ 1,575,069 $ 983,783 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Summary of the the results of operations and the financial position of the Company's operating segments | Longyun Taikexi Other Total Revenue 4,271,966 6,763 - 4,278,729 Operating expenses 2,105,441 176,543 1,612,704 3,894,688 Other income (expenses) 248,655 211 126,011 374,877 Earnings (loss) before tax 2,415,180 (169,569 ) (1,486,693 ) 758,918 Taxes 633,614 - - 633,614 Net income 1,781,566 (169,569 ) (1,486,693 ) 125,304 Income (loss) attributable to LYL 1,781,566 (101,742 ) (1,486,693 ) 193,131 Financial Position as of March 31, 2018 Longyun Taikexi Other Total Current assets 11,096,311 828,844 (132,088 ) 11,793,067 Non-current assets 2,218,191 139,639 (1,133,199 ) 1,224,631 Total assets 13,314,502 968,483 (1,265,287 ) 13,017,698 Current liabilities 4,993,098 1,992 (2,970,885 ) 2,024,205 Non-current liabilities - - - - Total liabilities 4,993,098 1,992 (2,970,885 ) 2,024,205 Net assets 8,321,404 966,491 1,705,598 10,993,493 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Income Taxes [Abstract] | |
Summary of reconciles the statutory rates to the Company's effective tax rate | For the Years Ended March 31, 2018 March 31, 2017 March 31, 2016 Statutory rates in Cayman Islands and BVI 0.0 % 0.0 % 0.0 % Statutory rates in Hong Kong 15.0 % 0.0 % 0.0 % Statutory rates in PRC 25.0 % 25.0 % 25.0 % Foreign earned income not subject to taxes in the Cayman Island -40.0 % -25.0 % -25.0 % Additional accruals in the PRC 83.5 % 12.0 % 21.0 % Effect of valuation allowance 0.0 % 8.2 % 0.0 % Effective income tax rate 83.5 % 20.2 % 21.0 % |
Schedule of income tax expenses benefits | For the Years Ended March 31, 2018 March 31, 2017 March 31, 2016 Income (loss) before taxes: Cayman Islands $ (1,550,037 ) $ (119,790 ) (39,223 ) BVI - (46,630 ) (5,213 ) Hong Kong 63,343 (4,229 ) (3,558 ) PRC 2,245,611 2,348,948 865,663 Total income (loss) before taxes 758,917 2,178,299 817,669 Provision for taxes (benefits): Cayman Islands - - - BVI - - - Hong Kong - - - PRC 633,614 464,327 164,817 Provision for income taxes (benefits) 633,614 464,327 164,817 Deferred tax assets: Cayman Islands - - - BVI - - - Hong Kong - - - PRC 179,665 - 66,934 Less: Valuation allowance (179,665 ) - (66,527 ) Currency Effect - - (407 ) Deferred tax assets, net - - - Total provision for taxes $ 633,614 $ 464,327 164,817 Effective tax rate 83.5 % 21.3 % 20.2 % |
Commitments & Contingencies (Ta
Commitments & Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Commitments & Contingencies [Abstract] | |
Schedule of future aggregate minimum lease payments under operating leases | Periods For year ended March 31, 2019 $ 591,833 For year ended March 31, 2020 424,974 For year ended March 31, 2021 392,318 For year ended March 31, 2022 9,946 Thereafter 8,184 Total $ 1,427,255 |
Business and Organization (Deta
Business and Organization (Details) | Mar. 31, 2018 | Nov. 03, 2017 |
Mr. Yu Han holding [Member] | ||
Business and Organization (Textual) | ||
Equity ownership interest | 85.00% | |
Koulin Han holding [Member] | ||
Business and Organization (Textual) | ||
Equity ownership interest | 15.00% | |
Hangzhou Dacheng Automotive Technology Service Co., Ltd [Member] | ||
Business and Organization (Textual) | ||
Equity ownership interest | 60.00% |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Financial Position at: | |||
Current assets | $ 8,151,121 | $ 4,202,662 | |
Non-current assets | 121,071 | 158,938 | |
Total assets | 8,272,192 | 4,361,600 | |
Current liabilities | 2,834,470 | 1,087,738 | |
Non-current liabilities | |||
Total liabilities | 2,834,470 | 1,087,738 | |
Net assets | 5,437,722 | 3,273,862 | |
Results of Operations: | |||
Revenues | 4,271,966 | 3,590,217 | $ 1,662,406,000 |
Operating expenses | 1,995,178 | 1,404,402 | 935,788,000 |
Other income (expenses) net | (275,665) | (163,151) | (139,045,000) |
Earnings before tax | 2,221,646 | 2,348,966 | 865,663,000 |
Tax expenses (benefits) | 633,614 | 464,327 | 164,817,000 |
Net income | $ 1,918,839 | $ 1,884,639 | $ 700,846,000 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies (Details 1) | 12 Months Ended |
Mar. 31, 2018 | |
Computer Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 3 years |
Computer Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 1 year |
Office Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 5 years |
Office Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 4 years |
Motor Vehicle [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 4 years |
Summary of Significant Accoun39
Summary of Significant Accounting Policies (Details 2) | 12 Months Ended |
Mar. 31, 2018 | |
Software [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 5 years |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Details 3) - USD ($) | Mar. 31, 2018 | Mar. 31, 2017 |
Carried at (amortized) cost: | ||
Corporate debt securities | $ 4,744,328 | |
Level 1 [Member] | ||
Carried at (amortized) cost: | ||
Corporate debt securities | ||
Level 2 [Member] | ||
Carried at (amortized) cost: | ||
Corporate debt securities | ||
Level 3 [Member] | ||
Carried at (amortized) cost: | ||
Corporate debt securities | $ 4,744,328 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies (Details 4) | Mar. 31, 2018 | Mar. 31, 2017 |
RMB:US$ [Member] | ||
Period/year end exchange rate | 6.61843 | 6.89053 |
Period/annual average exchange rate | 6.50682 | 6.729145 |
HKD:US$ [Member] | ||
Period/year end exchange rate | 7.77047 | 7.77047 |
Period/annual average exchange rate | 7.75883 | 7.75883 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | ||||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Aug. 10, 2015 | Jun. 26, 2015 | |
Summary of Significant Accounting Policies (Textual) | |||||
Allowance for doubtful accounts | $ 0 | $ 0 | |||
Advertising expenses | $ 19,769 | $ 8,808 | |||
Sweet Lollipop [Member] | |||||
Summary of Significant Accounting Policies (Textual) | |||||
Ownership percentage | 100.00% | ||||
Long Yun HK [Member] | |||||
Summary of Significant Accounting Policies (Textual) | |||||
Ownership percentage | 100.00% | ||||
Minimum [Member] | |||||
Summary of Significant Accounting Policies (Textual) | |||||
Cost method investments, ownership percentage | 0.00% | ||||
Equity method investment, ownership percentage | 20.00% | ||||
Maximum [Member] | |||||
Summary of Significant Accounting Policies (Textual) | |||||
Cost method investments, ownership percentage | 20.00% | ||||
Equity method investment, ownership percentage | 50.00% |
Other Receivables and Prepaym43
Other Receivables and Prepayments (Details) - USD ($) | Mar. 31, 2018 | Mar. 31, 2017 |
Other Receivables and Prepayments [Abstract] | ||
Advances to employees | $ 117,983 | $ 6,604 |
Advance to service providers | 35,984 | 2,299 |
Deposits for leases due within one operating period | 12,167 | 22,030 |
Prepayments and prepaid expenses | 574,992 | 59,480 |
Interest receivables | 116,562 | |
Other receivables | 375,737 | |
Total | $ 1,233,425 | $ 90,413 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | Mar. 31, 2018 | Mar. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Less-Accumulated depreciation | $ (58,456) | $ (42,911) |
Total, net | 1,060,376 | 32,824 |
Computer and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 202,292 | 50,267 |
Motor vehicle [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 161,074 | 25,468 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | $ 755,466 |
Property and Equipment (Detai45
Property and Equipment (Details Textual) - USD ($) | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Property and Equipment (Textual) | |||
Depreciation expense | $ 18,852 | $ 21,039 | $ 20,838 |
Intangible Asset (Details)
Intangible Asset (Details) - USD ($) | Mar. 31, 2018 | Mar. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Less-Accumulated Amortization | $ (498) | $ (439) |
Intangible assets, net | 1,369 | 812 |
Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, gross | $ 1,867 | $ 1,251 |
Intangible Asset (Details Textu
Intangible Asset (Details Textual) - USD ($) | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Intangible Asset (Textual) | |||
Amortization expense | $ 322 | $ 256 | $ 188 |
Intangible Assets [Member] | |||
Intangible Asset (Textual) | |||
Intangible assets estimated useful lives | 51 months |
Short-Term Investments (Details
Short-Term Investments (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Schedule of Held-to-maturity Securities [Line Items] | ||
Investment Securities Held-to-Maturity, Amortized Cost | $ 4,744,328 | |
Investment Securities Held-to-Maturity, Unrealized Gains | ||
Investment Securities Held-to-Maturity, Unrealized Losses | ||
Estimated fair value | 4,744,328 | |
Corporate debt securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Investment Securities Held-to-Maturity, Amortized Cost | 4,744,328 | |
Investment Securities Held-to-Maturity, Unrealized Gains | ||
Investment Securities Held-to-Maturity, Unrealized Losses | ||
Estimated fair value | $ 4,744,328 |
Short-Term Investments (Detai49
Short-Term Investments (Details 1) - USD ($) | Mar. 31, 2018 | Mar. 31, 2017 |
Short-Term Investments [Abstract] | ||
Due in one year or less | $ 4,744,328 | |
Due after one year through five years | ||
Due after five years through ten years | ||
Due after ten years | ||
Total | $ 4,744,328 |
Short-Term Investments (Detai50
Short-Term Investments (Details Textual) - USD ($) | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Short-Term Investments (Textual) | |||
Impairment charges | $ 0 | $ 0 | |
Investments earned interest | $ 310,105 | $ 0 | $ 0 |
Investments in Entities and i51
Investments in Entities and its Valuations (Details) - USD ($) | Mar. 31, 2018 | Mar. 31, 2017 |
Summary of Investment Holdings [Line Items] | ||
Total, net | $ 75,547 | $ 72,563 |
JiaXing YiTou ShangMa Investments Limited Partnership Company [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Total, net | $ 75,547 | $ 72,563 |
Investments in Entities and i52
Investments in Entities and its Valuations (Details Textual) | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2014USD ($) | Dec. 31, 2014CNY (¥) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | |
Investments in Entities and its Valuations (Textual) | |||||
Cost method investments | $ 0 | $ 0 | $ 0 | ||
JiaXing YiTou [Member] | |||||
Investments in Entities and its Valuations (Textual) | |||||
Percentage of ownership interest acquired | 10.00% | 10.00% | |||
Payment of cash consideration | $ 15,509 | ¥ 100,000 | |||
Impairment loss on investment | 0 | 0 | 0 | ||
Investment income | $ 0 | $ 0 | $ 0 |
Related Party Transactions (Det
Related Party Transactions (Details) | 12 Months Ended |
Mar. 31, 2018 | |
Mr. Sun JianJun [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Company | CEO of the Company. |
Mr. Han Yu [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Company | Majority shareholder of the Company. |
HangZhou TianQi Network Technology Co. Ltd. [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Company | Mr. Han Yu, Majority shareholder of the Company owns 27%. |
Mr. Liao Xu [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Company | CMO of the Company. |
Mr. Yuan Qiang [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Company | CTO of the Company |
Mr. Sun Mang Yue [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Company | Director, CEO and shareholder of the Company's subsidiary |
Related Party Transactions (D54
Related Party Transactions (Details 1) - USD ($) | Mar. 31, 2018 | Mar. 31, 2017 |
Related Party Transaction [Line Items] | ||
Other related parties' receivables | $ 266,959 | $ 67,145 |
Other related parties' payables | 64,698 | 42,960 |
Mr. Han Yu [Member] | ||
Related Party Transaction [Line Items] | ||
Other related parties' receivables | 40,414 | 37,425 |
Other related parties' payables | ||
Mr. Sun Mang Yue [Member] | ||
Related Party Transaction [Line Items] | ||
Other related parties' receivables | 226,545 | |
Mr. Yuan Qiang [Member] | ||
Related Party Transaction [Line Items] | ||
Other related parties' receivables | 23,190 | |
Mr. Liao Xu [Member] | ||
Related Party Transaction [Line Items] | ||
Other related parties' receivables | 6,530 | |
Mr. Sun JianJun [Member] | ||
Related Party Transaction [Line Items] | ||
Other related parties' payables | 19,971 | |
HangZhou TianQi Network Technology Co. Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Other related parties' payables | $ 44,727 | $ 42,960 |
Related Party Transactions (D55
Related Party Transactions (Details Textual) - Mr. Han Yu [Member] | Oct. 09, 2016USD ($) | Oct. 09, 2016CNY (¥) | Mar. 31, 2018 |
Related Party Transactions (Textual) | |||
Repayment of outstanding receivables | $ 1,334,064 | ¥ 8,917,562 | |
Equity ownership interest | 27.00% |
Capital & Equity (Details)
Capital & Equity (Details) | 1 Months Ended | 12 Months Ended | ||||||
Sep. 15, 2017USD ($)$ / sharesshares | Aug. 31, 2017USD ($) | Aug. 31, 2017CNY (¥) | Jul. 25, 2017 | Mar. 31, 2018USD ($)$ / sharesshares | Mar. 31, 2017USD ($)$ / sharesshares | Mar. 31, 2016USD ($) | Mar. 31, 2016CNY (¥) | |
Capital & Equity (Textual) | ||||||||
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||||||
Ordinary shares, authorized | shares | 500,000,000 | 500,000,000 | ||||||
Ordinary shares, issued | shares | 11,421,393 | 10,000,000 | ||||||
Proceeds for ordinary shares | $ | $ 7,731,271 | $ 7,731,271 | $ 1,076,324 | |||||
Capital contributions | $ | $ 145,232 | |||||||
Outstanding ordinary shares, description | 1-for-10 reverse stock split. | |||||||
IPO [Member] | ||||||||
Capital & Equity (Textual) | ||||||||
Proceeds for ordinary shares | $ | $ 797,092 | |||||||
Ordinary Shares [Member] | ||||||||
Capital & Equity (Textual) | ||||||||
Ordinary shares, par value | $ / shares | $ 6 | $ 0.0001 | ||||||
Ordinary shares, authorized | shares | 500,000,000 | |||||||
Ordinary shares, issued | shares | 1,421,394 | 10,000,000 | ||||||
Proceeds for ordinary shares | $ | $ 8,528,363 | $ 1,000 | ||||||
Ordinary Shares [Member] | Hangzhou Longyun [Member] | ||||||||
Capital & Equity (Textual) | ||||||||
Capital contributions | $ 145,232 | ¥ 945,000 | $ 1,053,607 | ¥ 6,800,000 |
Statement of Operations - Det57
Statement of Operations - Details (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues | |||
Crowdfunding | $ 1,074,101 | $ 883,209 | $ 767,779 |
Incubation Service | 3,197,865 | 2,707,008 | 595,980 |
Procurement Services | 6,763 | 298,647 | |
Total | 4,278,729 | 3,590,217 | 1,662,406 |
Operating Expenses | |||
Professional Fees | 1,329,279 | 529,759 | 369,923 |
Wages & Benefits | 1,691,204 | 310,680 | 236,778 |
Travel Expenses | 203,701 | 72,953 | 51,846 |
Depreciation & Amortization | 20,174 | 21,295 | 20,838 |
Data Services | 127,355 | 316,986 | 118,596 |
Rent Expense | 308,238 | 114,096 | 64,494 |
Advertising | 19,769 | 8,808 | |
Business Taxes and Surcharges | 10,168 | 14,873 | 11,298 |
Meals & Entertainment | 117,874 | ||
Other | 67,276 | 37,012 | 110,010 |
Impairment Loss | 148,607 | ||
Total | $ 3,894,688 | $ 1,575,069 | $ 983,783 |
Concentration, Geographic (Deta
Concentration, Geographic (Details) | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues [Member] | Customer one [Member] | ||
Concentration Geographic (Textual) | ||
Concentration Risk, Percentage | 5.80% | 8.60% |
Revenues [Member] | Customer two [Member] | ||
Concentration Geographic (Textual) | ||
Concentration Risk, Percentage | 5.40% | 2.60% |
Revenues [Member] | Customer three [Member] | ||
Concentration Geographic (Textual) | ||
Concentration Risk, Percentage | 4.60% | 2.40% |
Revenues [Member] | Customer four [Member] | ||
Concentration Geographic (Textual) | ||
Concentration Risk, Percentage | 4.40% | 2.40% |
Accounts Receivable [Member] | Customer one [Member] | ||
Concentration Geographic (Textual) | ||
Concentration Risk, Percentage | 12.70% | 56.00% |
Accounts Receivable [Member] | Customer two [Member] | ||
Concentration Geographic (Textual) | ||
Concentration Risk, Percentage | 12.20% | 13.60% |
Accounts Receivable [Member] | Customer three [Member] | ||
Concentration Geographic (Textual) | ||
Concentration Risk, Percentage | 11.20% | 13.00% |
Accounts Receivable [Member] | Customer four [Member] | ||
Concentration Geographic (Textual) | ||
Concentration Risk, Percentage | 10.30% | 13.00% |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Results of Operations | |||
Revenue | $ 4,278,729 | $ 3,590,217 | $ 1,662,406 |
Operating expenses | 3,894,688 | 1,575,069 | 983,783 |
Other income (expenses) | 374,877 | 163,150 | 139,046 |
Earnings (loss) before tax | 758,918 | 2,178,298 | 817,669 |
Taxes | 633,614 | 464,327 | 164,817 |
Net income | 125,304 | 1,713,971 | 652,852 |
Income (loss) attributable to Dragon Victory | 193,131 | 1,713,971 | $ 652,852 |
Financial Position | |||
Current assets | 11,793,067 | 4,053,597 | |
Non-current assets | 1,224,631 | ||
Total assets | 13,017,698 | 4,212,535 | |
Current liabilities | 2,024,205 | 1,190,962 | |
Non-current liabilities | |||
Total liabilities | 2,024,205 | $ 1,190,962 | |
Net assets | 10,993,493 | ||
Longyun [Member] | |||
Results of Operations | |||
Revenue | 4,271,966 | ||
Operating expenses | 2,105,441 | ||
Other income (expenses) | 248,655 | ||
Earnings (loss) before tax | 2,415,180 | ||
Taxes | 633,614 | ||
Net income | 1,781,566 | ||
Income (loss) attributable to Dragon Victory | 1,781,566 | ||
Financial Position | |||
Current assets | 11,096,311 | ||
Non-current assets | 2,218,191 | ||
Total assets | 13,314,502 | ||
Current liabilities | 4,993,098 | ||
Non-current liabilities | |||
Total liabilities | 4,993,098 | ||
Net assets | 8,321,404 | ||
Taikexi [Member] | |||
Results of Operations | |||
Revenue | 6,763 | ||
Operating expenses | 176,543 | ||
Other income (expenses) | 211 | ||
Earnings (loss) before tax | (169,569) | ||
Taxes | |||
Net income | 169,569 | ||
Income (loss) attributable to Dragon Victory | (101,742) | ||
Financial Position | |||
Current assets | 828,844 | ||
Non-current assets | 139,639 | ||
Total assets | 968,483 | ||
Current liabilities | 1,992 | ||
Non-current liabilities | |||
Total liabilities | 1,992 | ||
Net assets | 966,491 | ||
Other [Member] | |||
Results of Operations | |||
Revenue | |||
Operating expenses | 1,612,704 | ||
Other income (expenses) | 126,011 | ||
Earnings (loss) before tax | (1,486,693) | ||
Taxes | |||
Net income | (1,486,693) | ||
Income (loss) attributable to Dragon Victory | (1,486,693) | ||
Financial Position | |||
Current assets | (132,088) | ||
Non-current assets | (1,133,199) | ||
Total assets | (1,265,287) | ||
Current liabilities | (2,970,885) | ||
Non-current liabilities | |||
Total liabilities | (2,970,885) | ||
Net assets | $ 1,705,598 |
Income Taxes (Details)
Income Taxes (Details) | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income Taxes [Abstract] | |||
Statutory rates in Cayman Islands and BVI | 0.00% | 0.00% | 0.00% |
Statutory rates in Hong Kong | 15.00% | 0.00% | 0.00% |
Statutory rates in PRC | 25.00% | 25.00% | 25.00% |
Foreign earned income not subject to taxes in the Cayman Island | (40.00%) | (25.00%) | (25.00%) |
Additional accruals in the PRC | 83.50% | 12.00% | 21.00% |
Effect of valuation allowance | 0.00% | 8.20% | 0.00% |
Effective income tax rate | 83.50% | 20.20% | 21.00% |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income (loss) before taxes | |||
Total income (loss) before taxes | $ 758,917 | $ 2,178,299 | $ 817,669 |
Provision for taxes (benefits): | |||
Provision for income taxes (benefits) | 633,614 | 464,327 | 164,817 |
Deferred tax assets: | |||
Less: Valuation allowance | (179,665) | (66,527) | |
Currency Effect | 407 | ||
Deferred tax assets, net | |||
Effective tax rate | 83.50% | 21.30% | 20.20% |
Cayman Islands [Member] | |||
Income (loss) before taxes | |||
Total income (loss) before taxes | $ (1,550,037) | $ (119,790) | $ (39,223) |
Provision for taxes (benefits): | |||
Provision for income taxes (benefits) | |||
Deferred tax assets: | |||
Deferred tax asset | |||
BVI [Member] | |||
Income (loss) before taxes | |||
Total income (loss) before taxes | (46,630) | (5,213) | |
Provision for taxes (benefits): | |||
Provision for income taxes (benefits) | |||
Deferred tax assets: | |||
Deferred tax asset | |||
Hong Kong [Member] | |||
Income (loss) before taxes | |||
Total income (loss) before taxes | 63,343 | (4,229) | (3,558) |
Provision for taxes (benefits): | |||
Provision for income taxes (benefits) | |||
Deferred tax assets: | |||
Deferred tax asset | |||
PRC [Member] | |||
Income (loss) before taxes | |||
Total income (loss) before taxes | 2,245,611 | 2,348,948 | 865,663 |
Provision for taxes (benefits): | |||
Provision for income taxes (benefits) | 633,614 | 464,327 | 164,817 |
Deferred tax assets: | |||
Deferred tax asset | $ 179,665 | $ 66,934 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income Taxes (Textual) | |||
Effective income tax rate | 83.50% | 20.20% | 21.00% |
Deferred tax asset | |||
Operating loss carryforwards, description | The Company's subsidiaries incorporated in the PRC has unused net operating losses ("NOLs") available for carry forward to future years for PRC income tax reporting purposes up to five years. | ||
Hong Kong [Member] | |||
Income Taxes (Textual) | |||
Effective income tax rate | 16.50% | ||
PRC [Member] | |||
Income Taxes (Textual) | |||
Effective income tax rate | 25.00% |
Restricted Net Assets and Sta63
Restricted Net Assets and Statutory Reserves (Details) | 12 Months Ended |
Mar. 31, 2018 | |
Restricted Net Assets and Statutory Reserves (Textual) | |
Statutory reserve percentage | 50.00% |
PRC [Member] | |
Restricted Net Assets and Statutory Reserves (Textual) | |
Statutory reserve percentage | 10.00% |
Commitments & Contingencies (De
Commitments & Contingencies (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Schedule of future aggregate minimum lease payments under operating leases | |
For year ended March 31, 2019 | $ 591,833 |
For year ended March 31, 2020 | 424,974 |
For year ended March 31, 2021 | 392,318 |
For year ended March 31, 2022 | 9,946 |
Thereafter | 8,184 |
Total | $ 1,427,255 |
Commitments & Contingencies (65
Commitments & Contingencies (Details Textual) | 1 Months Ended | 12 Months Ended | |||||||
Feb. 28, 2017 | Jan. 31, 2017 | Mar. 31, 2018USD ($) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2018CNY (¥) | Oct. 09, 2016USD ($) | Oct. 09, 2016CNY (¥) | |
Commitments and Contingencies (Textual) | |||||||||
Rent expense | $ 308,238 | $ 114,096 | $ 64,494 | ||||||
Accrued rent expenses and penalties | 111,885 | ¥ 770,950 | |||||||
Incurred interest expenses | 0 | 0 | $ 2,763 | ||||||
Repaid by Mr. Yu Han | $ 1,334,064 | ¥ 8,917,562 | |||||||
Accumulated unpaid amount | $ 32,487 | ¥ 216,280 | |||||||
Fines and penalties description | If the Company fails to do so within the specified time period, the local housing authority may impose a monetary fine of RMB 10,000 up to RMB 50,000 and may also submit to the local people's court for enforcement. | If the Company fails to do so within the specified time period, the local housing authority may impose a monetary fine of RMB 10,000 up to RMB 50,000 and may also submit to the local people's court for enforcement. | |||||||
Non-cancellable capital lease agreements expired date | Expired on January 2017. | Expired on January 2017. | |||||||
Lease agreements description | Lease agreements for office space in Hangzhou, China for a duration of two years. | Lease agreement for office space in Hong Kong for a duration of two years. | |||||||
leasehold improvements, gross | $ 1,174,338 | 8,000,000,000 | |||||||
Capital commitments, description | A contract with a general contractor for $1,174,338 (RMB 8,000,000) to perform leasehold improvements to an office space at a new building in the Yuehuangshan South Fund Village Area of Hangzhou. As of March 31, 2018, the Company had prepaid $755,466 (RMB 5,000,000) and under the terms of the contract, is required to pay an additional $418,872 (RMB 3,000,000). The prepayment has been classified as leasehold improvements under property, plant and equipment. | A contract with a general contractor for $1,174,338 (RMB 8,000,000) to perform leasehold improvements to an office space at a new building in the Yuehuangshan South Fund Village Area of Hangzhou. As of March 31, 2018, the Company had prepaid $755,466 (RMB 5,000,000) and under the terms of the contract, is required to pay an additional $418,872 (RMB 3,000,000). The prepayment has been classified as leasehold improvements under property, plant and equipment. | |||||||
Leasehold Improvements [Member] | |||||||||
Commitments and Contingencies (Textual) | |||||||||
leasehold improvements, gross | $ 755,466 | 5,000,000,000 | |||||||
Leasehold Improvements Additional [Member] | |||||||||
Commitments and Contingencies (Textual) | |||||||||
leasehold improvements, gross | $ 418,872 | ¥ 3,000,000,000 |