10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2017

OR

¨ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________ 

COMMISSION FILE NUMBER: 000-54884

CHINA UNITED INSURANCE SERVICE, INC.

(Exact name of registrant as specified in its charter)

Delaware	30-0826400
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

7F, No. 311 Section 3

Nan-King East Road

Taipei City, Taiwan

(Address of principal executive offices)

+8862-87126958

(Registrant’s Telephone Number, Including Area Code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the issuer was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x  No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes x  No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ¨	Accelerated filer x
Non-accelerated filer ¨     (Do not check if a smaller reporting company)	Smaller reporting company ¨
	Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company as defined in Rule 12b-2 of the Exchange Act.

Yes ¨  No  x

As of November 9, 2017, there are 29,452,669 shares of common stock issued and outstanding, and 1,000,000 preferred shares issued and outstanding.

1

TABLE OF CONTENTS

PART I.	FINANCIAL INFORMATION	5
ITEM 1.	CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)	5
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	32
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK	43
ITEM 4.	CONTROLS AND PROCEDURES	44
PART II.	OTHER INFORMATION	45
ITEM 1.	LEGAL PROCEEDINGS	45
ITEM 1A.	RISK FACTORS	45
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	45
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	45
ITEM 4.	MINE SAFETY DISCLOSURES	45
ITEM 5.	OTHER INFORMATION	45
ITEM 6.	EXHIBITS	46
SIGNATURES		47

2

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This report contains forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievement expressed or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to, the factors described under Part 1 Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”  In some cases, you can identify forward-looking statements by terms such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “should,” “would” and similar expressions intended to identify forward-looking statements. Forward-looking statements reflect our current views with respect to future events and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, you should not place undue reliance on these forward-looking statements.

Forward-looking statements represent our estimates and assumptions only as of the date of this report. You should read this report and the documents that we reference in this report, or that we filed as exhibits to this report completely and with the understanding that our actual future results may be materially different from what we expect.

Except as required by law, we assume no obligation to update any forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in any forward-looking statements, even if new information becomes available in the future.

3

OTHER PERTINENT INFORMATION

References in this report to “we,” “us,” “our,” the “Registrant” and the “Company” and words of like import refer to China United Insurance Service, Inc., its subsidiaries and consolidated affiliated entities (“CAE”) unless otherwise indicated by the context.

References to China or the PRC refer to the People’s Republic of China (excluding Hong Kong, Macao and Taiwan). References to Taiwan refer to Taiwan, Republic of China.

Our business is conducted in Taiwan, Hong Kong and China using the currency of Taiwan (“NTD”), the currency of Hong Kong (“HKD”), and the currency of China (“RMB”), respectively, and our financial statements are presented in United States dollars (“USD” or “$”).  In this report, we refer to assets, obligations, commitments and liabilities in our financial statements in USD.  These dollar references are based on the exchange rate of NTD, HKD and RMB to USD, determined as of a specific date.   Changes in the exchange rate will affect the amount of our obligations and the value of our assets in terms of USD which may result in an increase or decrease in the amount of our obligations (expressed in USD) and the value of our assets, including accounts receivable (expressed in USD).

4

PART I.  FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

CHINA UNITED INSURANCE SERVICE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	September 30, 2017		December 31, 2016
	(UNAUDITED)
ASSETS
Current assets
Cash and cash equivalents	$	11,663,265	$	20,169,455
Time deposits		21,475,432		5,352,347
Marketable securities		32,867		2,426,870
Structured deposit		1,205,162		-
Accounts receivable, net		7,217,051		15,774,159
Other current assets		2,274,353		1,890,551
Total current assets		43,868,130		45,613,382
Property, plant and equipment, net		927,062		926,905
Intangible assets		747,610		784,219
Goodwill		2,071,491		2,071,491
Long-term investments		1,368,950		1,285,064
Other assets		2,149,619		726,482
TOTAL ASSETS	$	51,132,862	$	51,407,543
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Tax payable	$	2,356,626	$	2,249,869
Convertible bonds		200,000		-
Due to related parties		646,862		400,001
Other current liabilities		10,420,828		18,639,909
Total current liabilities		13,624,316		21,289,779
Convertible bonds - noncurrent		-		200,000
Long-term loans		265,985		254,907
Long-term liabilities		4,898,335		5,315,327
TOTAL LIABILITIES		18,788,636		27,060,013
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Preferred stock, par value $0.00001, 10,000,000 authorized, 1,000,000 issued and outstanding		10		10
Common stock, par value $0.00001, 100,000,000 authorized, 29,452,669 issued and outstanding		295		295
Additional paid-in capital		8,190,449		8,157,512
Statutory reserves		5,054,720		3,799,585
Retained earnings		6,663,807		3,286,562
Accumulated other comprehensive gain/(loss)		168,008		(667,976	)
Stockholders’ equity attribute to parent’s shareholders		20,077,289		14,575,988
Noncontrolling interests		12,266,937		9,771,542
TOTAL STOCKHOLDERS’ EQUITY		32,344,226		24,347,530
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	51,132,862	$	51,407,543

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

CHINA UNITED INSURANCE SERVICE, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME / (LOSS)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Revenue	$	16,210,334		$	14,951,345		$	50,084,684		$	43,289,113
Cost of revenue		9,071,624			9,335,735			29,746,059			27,986,021
Gross profit		7,138,710			5,615,610			20,338,625			15,303,092
Operating expenses:
Selling		783,120			630,255			1,481,423			2,094,965
General and administrative		3,708,037			3,359,674			10,714,341			9,336,015
Total operating expenses		4,491,157			3,989,929			12,195,764			11,430,980
Income from operations		2,647,553			1,625,681			8,142,861			3,872,112
Other income (expenses):
Interest income		79,299			31,113			246,559			137,222
Interest expenses		(8,293	)		(1,601	)		(24,562	)		(11,165	)
Dividend income		1,391			3,633			331,140			272,522
Other - net		89,065			21,248			136,113			(46,104	)
Total other income (expenses)		161,462			54,393			689,250			352,475
Income before income tax		2,809,015			1,680,074			8,832,111			4,224,587
Income tax expense		831,878			456,828			2,345,147			1,335,331
Net income		1,977,137			1,223,246			6,486,964			2,889,256
Net income attributable to the noncontrolling interests		669,490			465,501			1,854,584			1,301,226
Net income attributable to parent’s shareholders		1,307,647			757,745			4,632,380			1,588,030
Other comprehensive items
Foreign currency translation gain		48,149			260,981			793,090			378,217
Other		175			-			42,894			(1,593	)
Other comprehensive income attributable to parent’s shareholders		48,324			260,981			835,984			376,624
Other comprehensive items attributable to noncontrolling interests		23,405			249,160			640,811			408,827
Comprehensive income attributable to parent’s shareholders	$	1,355,971		$	1,018,726		$	5,468,364		$	1,964,654
Comprehensive income attributable to noncontrolling interests	$	692,895		$	714,661		$	2,495,395		$	1,710,053
Weighted average shares outstanding:
Basic		29,452,669			29,452,669			29,452,669			29,452,669
Diluted		30,521,407			30,478,667			30,521,407			30,462,097
Net income per share attributable to parent’s shareholder:
Basic	$	0.044		$	0.026		$	0.157		$	0.054
Diluted	$	0.043		$	0.025		$	0.152		$	0.052

The accompanying notes are an integral part of these condensed consolidated financial statements.

6

CHINA UNITED INSURANCE SERVICE, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Nine Months Ended September 30,
	2017			2016
Cash flows from operating activities:
Net income	$	6,486,964		$	2,889,256
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization		410,593			455,383
Amortization of bond premium		193			-
Gain on settlement of debt		-			(83,425	)
Gain on valuation of financial assets		1,372,468			(10,868	)
Loss on disposals of property, plant and equipment		75,121			25,568
Deferred income tax		(20,030	)		(65,235	)
Changes in operating assets and liabilities:
Accounts receivable		9,541,161			4,085,141
Other current assets		(268,864	)		450,406
Other assets		(1,331,414	)		66,823
Tax payable		(35,858	)		(112,098	)
Other current liabilities		(9,339,583	)		(3,943,730	)
Long-term liabilities		(753,022	)		623,579
Net cash provided by operating activities		6,137,729			4,380,800
Cash flows from investing activities:
Repayments to pervious shareholders		-			(150,959	)
Purchases of structured deposit		(1,292,441	)		-
Purchases of time deposits		(24,572,262	)		(7,095,147	)
Proceeds from maturities of time deposits		8,888,669			8,025,394
Purchase of marketable securities		(6,231,364	)		-
Proceeds from disposals of marketable securities		7,488,976			-
Purchase of property, plant and equipment		(257,944	)		(371,913	)
Purchase of intangible assets		(88,745	)		(437,294	)
Net cash used in investing activities		(16,065,111	)		(29,919	)
Cash flows from financing activities:
Proceeds from related party borrowings		261,589			68,431
Repayment to related parties		(281	)		(623,507	)
Payment to noncontrolling interest as reduction of cash capital		-			(77,043	)
Proceeds from third party borrowings		-			469,028
Repayment to loans		-			(224,447	)
Net cash provided by (used in) financing activities		261,308			(387,538	)
Foreign currency translation		1,159,884			596,891
Net increase (decrease) in cash and cash equivalents		(8,506,190	)		4,560,234
Cash and cash equivalents, beginning balance		20,169,455			13,083,357
Cash and cash equivalents, ending balance	$	11,663,265		$	17,643,591
SUPPLEMENTARY DISCLOSURE:
Interest paid	$	29,806		$	2,324
Income tax paid	$	2,298,197		$	1,549,580
SUPPLEMENTAL DISCLOSURES OF CASH FLOW FOR NON-CASH TRANSACTION:
Debt forgiveness - related parties	$	32,937		$	-

The accompanying notes are an integral part of these condensed consolidated financial statements.

7

CHINA UNITED INSURANCE SERVICE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE 1 – ORGANIZATION

China United Insurance Service, Inc. (“China United,” “CUIS” or the “Company”) is a Delaware corporation organized on June 4, 2010 by Yi Hsiao Mao, a Taiwanese citizen, as a listing vehicle for both ZLI Holdings Limited (“ZLI Holdings”) and Action Holdings Financial Limited (“AHFL”), which is currently quoted on the United States Over the Counter Bulletin Board.

The corporate structure as of September 30, 2017 was as follows:

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The unaudited accompanying condensed consolidated financial statements include the accounts of China United and its subsidiaries as shown in the organization structure in Note 1. All intercompany transactions and balances have been eliminated in consolidation.

Basis of Presentation

The unaudited condensed consolidated financial statements presented herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, the instructions to Form 10-Q and Regulation S-X. Accordingly, the financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments, including normal recurring adjustments, considered necessary for a fair presentation of the financial statements have been included. Operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ended December 31, 2017.  

8

These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2016, which were included in the Company’s 2016 Annual Report on Form 10-K. The accompanying condensed consolidated balance sheet as of December 31, 2016, has been derived from the Company’s audited consolidated financial statements as of that date.

Reclassifications

Certain reclassifications have been made to the prior periods’ financial statements and notes to conform to the current period’s presentation. Such reclassifications have no effect on net income as previously reported. Please see Note 23, Reclassifications.

Foreign Currency Translations

The Company’s financial statements are presented in U.S. dollars ($), which is the Company’s reporting and functional currency. The functional currencies of the Company’s subsidiaries are NTD, RMB and HKD. Gains and losses resulting from the translation of foreign currency transactions are reflected in the consolidated statements of operations and other comprehensive income (loss). Monetary assets and liabilities denominated in foreign currency are translated at the functional currency rate of exchange prevailing at the balance sheet date. Any differences are taken as a gain or loss on foreign currency translation in the statements of operations. 

In accordance with ASC 830, Foreign Currency Matters, the Company translates the assets and liabilities into U.S. dollars using the rate of exchange prevailing at the balance sheet date and the statements of operations and cash flows are translated at an average rate during the reporting period. Adjustments resulting from the translation from NTD, RMB and HKD into U.S. dollars are recorded in stockholders’ equity as part of accumulated other comprehensive income. The exchange rates used for interim financial statements are as follows:

	Average Exchange Rate for the Nine Months Ended September 30,
	2017		2016
New Taiwan dollar (NTD)	NTD	30.505166	NTD	32.736000
China yuan (RMB)	RMB	6.805734	RMB	6.579240
Hong Kong dollar (HKD)	HKD	7.787013	HKD	7.763280
United States dollar ($)	$	1.000000	$	1.000000

	Exchange Rate at
	September 30, 2017		December 31, 2016
New Taiwan dollar (NTD)	NTD	30.324000	NTD	32.283100
China yuan (RMB)	RMB	6.654500	RMB	6.943700
Hong Kong dollar (HKD)	HKD	7.811000	HKD	7.754340
United States dollar ($)	$	1.000000	$	1.000000

Fair Values of Financial Instruments

Accounting Standards Codification (ASC) 820, Fair Value Measurement, defines fair value as the price at which an asset could be exchanged or a liability transferred in an orderly transaction between knowledgeable, willing parties in the principal or most advantageous market for the asset or liability. Where available, fair value is based on observable market prices or derived from such prices. Where observable prices or inputs are not available, valuation models are applied which may involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity. See Note 24, Fair Value Measurement.

9

Concentration of Risk 

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. As of September 30, 2017, approximately $1,467,000 of the Company’s cash and cash equivalents, time deposits, registered capital deposit and restricted cash held by financial institutions was insured, and the remaining balance of approximately $32,808,000 was not insured.

Three major insurance companies accounted for more than 10% of the Company’s total revenue for the three months ended of September 30, 2017 and 2016. Revenue from these insurance companies were set out as below:

	Three months ended September 30,
	2017					2016
	Amount		% of Total Revenue			Amount			% of Total Revenue
Farglory Life Insurance Co., Ltd.	$	4,275,654		26	%	$	5,291,779			35	%
Taiwan Life Insurance Co., Ltd. (*)		1,911,978		12	%		1,493,069			10	%
TransGlobe Life Insurance Inc.		1,882,461		12	%		(**	)		(**	)

(*)	Taiwan Life Insurance Co., Ltd. was formerly known as CTBC Life Insurance Co., Ltd.
(**)	Revenue for the three months ended September 30, 2016 had not exceeded 10% or more of the Company’s consolidated revenue of the Company.

For the nine months ended of September 30, 2017 and 2016, the Company’s revenue received from the following companies were set out as below:

	Nine months ended September 30,
	2017						2016
	Amount			% of Total Revenue			Amount			% of Total Revenue
Farglory Life Insurance Co., Ltd.	$	13,019,656			26	%	$	13,969,672			32	%
Taiwan Life Insurance Co., Ltd. (*)		5,881,228			12	%		4,813,813			11	%
TransGlobe Life Insurance Inc.		5,127,561			10	%		(**	)		(**	)
Fubon Life Insurance Co., Ltd.		(***	)		(***	)		4,342,377			10	%

(*)	Taiwan Life Insurance Co., Ltd. was formerly known as CTBC Life Insurance Co., Ltd.
(**)	Revenue for the nine months ended September 30, 2016 had not exceeded 10% or more of the Company’s consolidated revenue of the Company.
(***)	Revenue for the nine months ended September 30, 2017 had not exceeded 10% or more of the Company’s consolidated revenue of the Company.

As of September 30, 2017 and December 31, 2016, the Company’s accounts receivable from the following companies were set out as below:

	September 30, 2017						December 31, 2016
	Amount			% of Total Accounts Receivable			Amount			% of Total Accounts Receivable
Farglory Life Insurance Co., Ltd.	$	2,450,793			34	%	$	6,503,843			41	%
Taiwan Life Insurance Co., Ltd (*)		(**	)		(**	)		1,973,410			13	%
TransGlobe Life Insurance Inc.		801,832			11	%		(**	)		(**	)
Fubon Life Insurance Co., Ltd		(**	)		(**	)		1,660,685			11	%

(*)	Taiwan Life Insurance Co., Ltd. was formerly known as CTBC Life Insurance Co., Ltd.
(**)	Accounts receivable as of September 30, 2017 or December 31, 2016 had not exceeded 10% or more of the consolidated accounts receivable.

10

With respect to accounts receivable, the Company generally does not have any collateral and does not have any allowance for doubtful accounts.

The Company’s operations are in the PRC, Taiwan and Hong Kong. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic, and legal environments in the PRC, Taiwan and Hong Kong, the foreign currency exchange and the state of each regions. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, Taiwan and Hong Kong, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, and rates and methods of taxation, among other things.

Recent Accounting Pronouncements

In January 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” which amends the guidance in U.S. GAAP on the classification and measurement of financial instruments. Changes to the current guidance primarily affect the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the ASU clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The new standard is effective for fiscal years and interim periods beginning after December 15, 2017, and upon adoption, an entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet at the beginning of the first reporting period in which the guidance is effective. Early adoption is not permitted except for the provision to record fair value changes for financial liabilities under the fair value option resulting from instrument-specific credit risk in other comprehensive income. The Company is currently evaluating the impact of adopting this guidance.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The guidance in ASU No. 2016-02 supersedes the lease recognition requirements in ASC Topic 840, Leases (Statement of Financial Accounting Standards No. 13). ASU 2016-02 requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases, along with additional qualitative and quantitative disclosures. ASU No. 2016-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the effect this standard will have on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-07, “Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting.” ASU 2016-07 eliminates the requirement for an investment that qualifies for the use of the equity method of accounting as a result of an increase in the level of ownership or degree of influence to adjust the investment, results of operations and retained earnings retrospectively. ASU 2016-07 will be effective prospectively for the Company for increases in the level of ownership interest or degree of influence that result in the adoption of the equity method that occur during or after the quarter ending December 31, 2017, with early adoption permitted. The impact of this guidance for the Company is dependent on any future increases in the level of ownership interest or degree of influence that result in the adoption of the equity method.

In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net).” ‘The amendments in this ASU are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations by amending certain existing illustrative examples and adding additional illustrative examples to assist in the application of the guidance. The effective date and transition of these amendments is the same as the effective date and transition of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” Public entities should apply the amendments in ASU No. 2014-09 for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein. The Company is currently in the process of evaluating the impact of the adoption of this accounting standards update on its consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments (Topic 230) to Statement of Cash Flows.” ASU No. 2016-15 clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows to reduce diversity in practice with respect to (i) debt prepayment or debt extinguishment costs, (ii) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, (iii) contingent consideration payments made after a business combination, (iv) proceeds from the settlement of insurance claims, (v) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, (vi) distributions received from equity method investees, (vii) beneficial interests in securitization transactions, and (viii) separately identifiable cash flows and application of the predominance principle. ASU No. 2016-15 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017, with early adoption permitted. The adoption of this update is not expected to have a significant impact on the Company’s consolidated financial statements.

11

In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash” (“ASU No. 2016-18”), which amends the current accounting guidance.” The amendments in this update require the amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU No. 2016-18 is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The adoption of ASU No. 2016-18 is not expected to have a material impact on the Company’s consolidated financial statements. 

In January 2017, the FASB issued ASU No. 2017-04 “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which eliminates Step 2 from the goodwill impairment test. Instead, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to the reporting unit. ASU No. 2017-04 is effective for annual or any interim goodwill tests in fiscal years beginning after December 15, 2019. The adoption is not expected to have a material impact on the Company’s consolidated financial statements of the Company.

In July 2017, the FASB issued ASU No. 2017-11, “Earnings Per Share (Topic 260) Distinguishing Liabilities from Equity (Topic 480) Derivatives and Hedging (Topic 815),” which addresses the complexity of accounting for certain financial instruments with down round features. Down round features are features of certain equity-linked instruments (or embedded features) that result in the strike price being reduced on the basis of the pricing of future equity offerings. Current accounting guidance creates cost and complexity for entities that issue financial instruments (such as warrants and convertible instruments) with down round features that require fair value measurement of the entire instrument or conversion option. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments in Part I of this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements.

In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815) Targeted Improvements to Accounting for Hedging Activities.” ASU 2017-12 refines and expands hedge accounting for both financial and commodity risks. This ASU creates more transparency around how economic results are presented, both on the face of the financial statements and in the footnotes. In addition, this ASU makes certain targeted improvements to simplify the application of hedge accounting guidance. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements.

In September 2017, the FASB issued ASU 2017-13, “Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842),” which provides additional implementation guidance on the previously issued ASU 2016-02 Leases (Topic 842). The revenue standard is effective for annual periods beginning after December 15, 2017. ASU 2016-02 requires a lessee to recognize assets and liabilities on the balance sheet for leases with lease terms greater than 12 months. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. Based on a preliminary assessment, the Company expects the adoption of this guidance to have a material impact on its assets and liabilities due to the recognition of right-of-use assets and lease liabilities on its consolidated balance sheet at the beginning of the earliest period presented. The Company is continuing its assessment, which may identify additional impacts this guidance will have on its consolidated financial statements and disclosures.

12

There were other updates recently issued. The management does not believe that other than disclosed above, the recently issued, but not yet adopted, accounting pronouncements will have a material impact on its financial position results of operations or cash flows.

Going Concern Assessment

The Company has assessed its ability to continue as a going concern for a period of one year from the date of the issuance of these financial statements. Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year from the financial statement issuance date. The Company determined that there are no conditions or events that raise substantial doubt about its ability to continue as a going concern as of the date of the issuance of these financial statements.

NOTE 3 – CASH AND CASH EQUIVALENTS AND TIME DEPOSITS

Cash and cash equivalents and time deposits consisted of the following as of September 30, 2017 and December 31, 2016:

	September 30, 2017		December 31, 2016
Cash and cash equivalents:
Cash in bank and on hand	$	11,663,265	$	17,713,744
Bank time deposits (*)		-		2,455,711
		11,663,265		20,169,455
Bank time deposits (**)		21,475,432		5,352,347
Total cash and cash equivalents and time deposits	$	33,138,697	$	25,521,802

(*) With original maturities less than three months

(**) With original maturities over three months

The Company considers cash on hand, cash in bank, and bank time deposits with maturities of three months or less to be cash and cash equivalents.

NOTE 4 – MARKETABLE SECURITIES

Marketable securities represent investment in equity securities of listed stocks and funds, which are classified as follows:

	September 30, 2017
	Cost		Gross Unrealized Losses			Total Fair Value
Trading:
Funds	$	33,117	$	(250	)	$	32,867
	$	33,117	$	(250	)	$	32,867

	December 31, 2016
	Fair Value at		Gross
	December 31,		Unrealized		Total
	2015		Gains		Fair Value
Trading:
Stocks	$	28,863	$	9,900	$	38,763
Funds		2,340,219		47,888		2,388,107
	$	2,369,082	$	57,788	$	2,426,870

NOTE 5 – STRUCTURED DEPOSIT 

On July 7, 2017, the Company entered into an agreement with Cathy United Bank to purchase a 185-days structured deposit in effective on July 7, 2017 and mature on January 8, 2018. Principal of the structured deposit is RMB 8,000,000 and the structured deposit with an embedded foreign exchange option linked to US Dollar to China Yuan offshore exchange rate (“USDCNH”). Strike price of the structured deposit is set as 7.3 USDCNH and the fixing date is on January 4, 2018. Yield rate will be at 4.1% per annum when the USDCNH is above or equal strike price on the fixing date, or at 3.9% per annum when blow.

	September 30, 2017
	Cost		Gross Unrealized Losses			Total Fair Value
Structured deposit	$	1,278,551	$	(73,389	)	$	1,205,162
	$	1,278,551	$	(73,389	)	$	1,205,162

13

NOTE 6 – OTHER CURRENT ASSETS

Other current assets consisted of the following as of September 30, 2017 and December 31, 2016:

	September 30, 2017		December 31, 2016
Loan receivable	$	1,477,060	$	1,486,846
Prepaid expenses		228,193		64,678
Prepaid rent and rent deposits		186,745		199,022
Other receivable		176,386		50,683
Refundable business tax		117,848		17,441
Deferred tax assets-current		58,041		59,233
Interest receivable		30,080		12,648
Total other current assets	$	2,274,353	$	1,890,551

On October 24, 2016, the Company entered into a loan agreement with third party, Rich Fountain Limited (“RFL”), which was incorporated under the laws of Samoa. The Company provided a short-term loan amount of NTD 48,000,000 ($1,486,846) to RFL. The short-term loan bears an interest rate of 4.5% per annum and the principal and interest are due on April 23, 2017. On April 21, 2017, the Company and RFL entered a supplemental agreement to extend the loan to October 23, 2017. As of September 30, 2017, the outstanding balance of the loan receivable is NTD44,790,360 ($1,477,060). On November 1 and November 2, 2017, the Company received the interest payment of this loan amount of NTD 300,000 (approximately $9,800) and $23,832, respectively. The management has evaluated RFL's business operation and ability to repay the loan in the future and determine that RFL will be able to repay the loan per newly negotiated terms and assessed that there is no impairment loss on the loan. Therefore, the Company is willing to extend the payment period of RFL loan.

NOTE 7 – PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment consisted of the following as of September 30, 2017 and December 31, 2016:

	September 30, 2017			December 31, 2016
Office equipment	$	1,234,505		$	1,070,061
Office furniture		101,123			168,658
Leasehold improvements		733,225			581,964
Transportation equipment		139,226			132,344
Other equipment		89,868			87,302
Total		2,297,947			2,040,329
Less: accumulated depreciation		(1,370,885	)		(1,113,424	)
Total property, plant and equipment, net	$	927,062		$	926,905

Depreciation expense was $78,972 and $81,267 for the three months ended September 30, 2017 and 2016, respectively. Depreciation expense was $235,093 and $231,414 for the nine months ended September 30, 2017 and 2016, respectively.

NOTE 8 – INTANGIBLE ASSETS

As of September 30, 2017 and December 31, 2016, the Company’s intangible assets consisted of the following:

	September 30, 2017			December 31, 2016
Software	$	1,686,544		$	1,500,339
Less: accumulated amortization		(938,934	)		(716,120	)
Total intangible assets	$	747,610		$	784,219

Estimated future intangible amortization as of September 30, 2017 is as follows:

Periods ending September 30,	Amount
2018	$	238,905
2019		214,913
2020		184,439
2021		90,116
2022		18,140
Thereafter		1,097
Total	$	747,610

14

Amortization expense was $59,533 and $71,328 for the three months ended September 30, 2017 and 2016, respectively. Amortization expense was $175,500 and $223,969 for the nine months ended September 30, 2017 and 2016, respectively.

NOTE 9 – LONG-TERM INVESTMENTS

As of September 30, 2017 and December 31, 2016, the Company’s long-term investments consisted of the following:

	September 30, 2017		December 31, 2016
Equity investment	$	1,267,475	$	1,190,558
Government bonds		101,475		94,506
Total	$	1,368,950	$	1,285,064

As of September 30, 2017 and December 31, 2016, the Company had the following equity investment:

Type	Investee	Ownership			September 30, 2017 Amount		December 31, 2016 Amount
Cost Method	Genius Insurance Broker Co., Ltd.		15.64	%	$	1,267,475	$	1,190,558

According to Taiwan Regulations Governing Deposit of Bond and Acquirement of Insurance by Insurance Agents, Insurance Brokers and Insurance Surveyors (“RGDBAI”) Article 3 requirement, Law Insurance Broker Co., Ltd. (“Law Broker”) is required to maintain a minimum of NTD3,000,000 ($98,932 and $92,928 as of September 30, 2017 and December 31, 2016, respectively) restricted balance in a separate account. RGDBAI Article 4 is required to deposited a minimum amount in the form of cash or book entry to government bond issued by the central government. Therefore, Law Broker used such amounts to purchase government bonds and has the right to trade such bonds with other debt or equity instruments.

	September 30, 2017
	Fair Value at		Gross		Fair Value at
	December 31,		Unrealized		September 30,
	2016		Gains		2017
Available-for-sale:
Government bonds		94,506		6,969		101,475
	$	94,506	$	6,969	$	101,475

	December 31, 2016
	Fair Value at		Gross		Fair Value at
	December 31,		Unrealized		December 31,
	2015		Gains		2016
Available-for-sale:
Government bonds		94,381		125		94,506
	$	94,381	$	125	$	94,506

15

NOTE 10 – OTHER ASSETS

The Company’s other assets consisted of the following as of September 30, 2017 and December 31, 2016:

	September 30, 2017		December 31, 2016
Registered capital deposit	$	1,065,176	$	-
Rental deposits		480,589		445,283
Restricted cash		488,822		248,803
Prepayments		61,206		5,576
Deferred tax assets		52,171		25,364
Others		1,655		1,456
Total other assets	$	2,149,619	$	726,482

According to China Insurance Regulatory Commission No. 82, issued on September 29, 2016, the Company should deposit all of its registered capital in a custodian account and subject to limited usage, among which, no less than 10% of the registered capital should be invested in significant deposit by agreement or term deposit. The Company should deposit this amount after six months of the issuance date.

Restricted cash is a deposit in the bank by the Company in conformity with Provisions of the Supervision and Administration of Specialized Insurance Agencies, which is not allowed to be withdrawn without the permission of the regulatory commission and the trust account for Law Broker’s general manager’s bonus plans.

NOTE 11 – TAX PAYABLE

The Company’s tax payable consisted of the following as of September 30, 2017 and December 31, 2016:

	September 30, 2017		December 31, 2016
PRC Tax	$	287,138	$	163,461
Hong Kong Tax		9,091		14,233
Taiwan Tax		2,060,397		2,072,175
Total tax payable	$	2,356,626	$	2,249,869

PRC tax represents income tax and other taxes accrued according to PRC tax law by the Company’s subsidiaries and Consolidated Affiliated Entities (“CAE”) in the PRC. Taiwan tax represents income tax accrued according to Taiwan tax law by the Company’s subsidiaries and branches in Taiwan. Hong Kong tax represents income tax accrued according to Hong Kong tax law by the Company’s subsidiaries in Hong Kong.

NOTE 12 – CONVERTIBLE BONDS

The Company intended to issue the convertible bonds during the period commencing on June 23, 2016 and ended on September 30, 2016 with an aggregate principal amount of up to $10,000,000. The convertible bonds were to be sold in units, with each unit being $100,000 in principal amount. The Company had not made any offers or sales of the convertible bonds to U.S. persons and there were no direct selling efforts in the United States. The bonds would not be convertible until two years from the issuance date and with an annual interest rate of 6% payable on a quarterly basis. The bond holder might cause the Company to redeem the convertible bonds before the end of the term, subject to certain penalties depending on the holding period of the convertible bonds when redeemed. Upon the expiration of the term of the convertible bonds, the bond holder may, in its sole discretion, choose to collect the payment of full principal amount of the convertible bonds together with any interest accrued or convert the convertible bonds into common shares of the Company at the conversion price. The conversion price shall be 80% of the average closing trading price for the ten (10) business days immediately prior to the conversion date.

On June 23, 2016, the Company issued two units of its convertible bonds with an aggregate principal amount of $200,000 to a non-US person and the value of the embedded derivatives liabilities is trivial. As of September 30, 2017 and December 31, 2016, the Company has an outstanding principal balance of $200,000 of convertible bonds. Total interest expense was $3,000 and $9,000 for the three and nine months ended September 30, 2017.

16

NOTE 13 – OTHER CURRENT LIABILITIES

Other current liabilities are as follows, as of September 30, 2017 and December 31, 2016:

	September 30, 2017		December 31, 2016
Commissions payable to sales professionals	$	5,821,393	$	11,869,181
Unearned revenue (AIATW and Farglory)		1,340,884		2,090,718
Due to previous shareholders of AHFL		-		480,559
Accrued business tax		188,516		469,259
Deferred tax liabilities		125,059		-
Withholding employee personal tax		240,717		362,954
Accrued tax penalties		370,000		370,000
Accrued bonus		1,040,291		1,935,091
Salary payable to administrative staff		464,106		183,066
Accrued labor, health insurance and employee retirement plan		105,015		92,085
Accrued advertisement fee		-		32,525
Other accrued liabilities		724,847		754,471
Total other current liabilities	$	10,420,828	$	18,639,909

Commissions payable to sales professionals, accrued bonus, salaries payable to administrative staff, and accrued advertisement expense are usually settled within 12 months. Unearned revenue is described in Note 15. Due to previous shareholders of Action Holdings Financial Limited (“AHFL”) is the remaining balance payable of the acquisition cost. Accrued business tax, withholding employee personal tax, accrued labor, health insurance and employee retirement plan will be paid to the related government departments within one month. Accrued tax penalties are estimated potential penalty in the event of a tax audit. Other accrued liabilities mainly consist of accrued interest, accrued logo promotion product expense and operating expenses payable for training and travelling.

NOTE 14 – LONG-TERM LOANS

	September 30, 2017		December 31, 2016
Loan B, interest at 8%, maturity date May 15, 2019	$	150,274	$	144,015
Loan C, interest at 8%, maturity date July 20, 2019		115,711		110,892
Total long-term loans	$	265,985	$	254,907

On May 15, 2016, the Company’s contractually controlled affiliate in PRC, Law Anhou Insurance Agency Co., Ltd (“Anhou” or “Law Anhou”), entered into a loan agreement (“Loan B”) with a third party. The long-term Loan Agreement provided for a $150,274 loan to the Company. Loan B bears an interest rate of 8% per annum and interest is payable annually. The principal and the interest will be due on May 15, 2019.

On July 20, 2016, Anhou entered into a loan agreement (“Loan C”) with a third party. The long-term Loan Agreement provided for a $115,711 loan to the Company. Loan C bears an interest rate of 8% per annum and interest is payable annually. The principal and the interest will be due on July 20, 2019.

The total interest expense for both Loan B and Loan C was $5,293 and $15,562 for the three and nine months ended September 30, 2017.

NOTE 15 – LONG-TERM LIABILITIES

As of September 30, 2017 and December 31, 2016, long-term liabilities are as follows:

	September 30, 2017		December 31, 2016
Unearned revenue – AIATW	$	4,242,585	$	4,742,272
Unearned revenue – Farglory		-		495,615
Due to pervious shareholders of AHFL		480,559		-
Other long-term liabilities		175,191		77,440
Long-term liabilities	$	4,898,335	$	5,315,327

17

Unearned revenue – AIATW

On June 10, 2013, AHFL entered into a Strategic Alliance Agreement (the “Alliance Agreement”) with AIA International Limited Taiwan Branch (“AIATW”). The purpose of the Alliance Agreement is to promote life insurance products provided by AIATW within Taiwan by insurance agencies or brokerage companies affiliated with AHFL or CUIS. The term of the Alliance Agreement is from April 15, 2013 to August 31, 2018. Pursuant to the terms of the Alliance Agreement, AIATW paid AHFL an execution fee of $8,326,700 (NTD250,000,000, including the tax of NTD11,904,762, the “Execution Fee”), which is to be recorded as revenue upon fulfilling sales targets and the 13-month persistency ratio, as defined, over the next five years. The Execution Fee may be required to be recalculated if certain performance targets are not met by AHFL. On September 30, 2014, AHFL entered into a Strategic Alliance Supplemental Agreement (the “Supplemental Agreement”) with AIATW. In the Supplemental Agreement, the performance targets and the provision about refunding the Execution Fee on pro rata basis when the performance targets are not met were revised.

On January 6, 2016, AHFL entered into an Amendment 2 to Strategic Alliance Agreement (the “Amendment No. 2”) with AIATW to further revise certain provisions in the Strategic Alliance Agreement and the previous amendment entered into by and between AHFL and AIATW. The purpose of the Strategic Alliance Agreement is to promote life insurance products provided by AIATW within the territory of Taiwan through insurance agency companies or insurance brokerage companies. To the extent permitted by applicable laws and regulations, AHFL shall assist and encourage any insurance agency company or insurance brokerage company duly approved by the competent government authorities of Taiwan (the “Appointed Broker/Agent”), to cooperate with AIATW for the promotion of life insurance products of AIATW. Pursuant to the Amendment No. 2, the expiration date of the Strategic Alliance Agreement has been extended from May 31, 2018 to December 31, 2021, and the effect of the Strategic Alliance Agreement during the period from October 1, 2014 to December 31, 2015 has been suspended. In addition, both AHFL and AIATW agreed to adjust certain terms and conditions set forth in the Strategic Alliance Agreement, among which: (i) expand the scope of services to be provided by AHFL to AIATW to include, without limitation, assessment and advice on suitability of cooperative partners, advice on product strategies suitable for promotion channel development, advice on promotion/sales channel improvement, advice on promotion channel marketing and strategic planning, and promotion channel talent training; and (ii) remove certain provisions related to performance milestones and refund of Execution Fees. On March 15, 2016, AHFL issued a promise letter (the “2016 Letter”) to AIATW that AHFL is required to (i) fulfill sales targets and (ii) the 13-month persistency ratio.

On June 14, 2017, with AIATW’s consent, the 2016 Letter has been revoked in order to conform with the latest terms and conditions regarding the cooperation between AHFL and AIATW as set forth in a third amendment (Amendment No. 3). Pursuant to the Amendment No. 3, both AHFL and AIATW agreed to adjust certain terms and conditions set forth this amendment, among which (i) except the first contract year (April 15th, 2013 to September 30th, 2014), the sales target of the alliance between the parties shall be changed to (a) value of new business (“VONB”) and (b) the 13-month persistency ratio; and (ii) AIATW will calculate and recognize the VONB and 13-month persistency ratio each contract year and inform the Company the result; and (iii) the Company agrees to return the basic business promotion fees to AIATW within thirty (30) days of receipt of the notice sent by AIATW if the Company fails to meet the targets set forth in Amendment No. 3, AIATW reserves the right to offset such amount against the amount payable by it to the Company; and (iv) upon the termination of the Alliance Agreement and its amendments pursuant to the Section 8.2 of the Alliance Agreement, both parties agree to calculate the amount to be returned or repaid, as applicable, based on the past and current contract years. The Company shall return the basic business promotion fees at NTD 330,000,000 for each contract years within one month after the termination.

The Company recognizes AIATW’s revenue when the life insurance products provided by AIATW are met: (i) persuasive evidence of an agreement between the insurance company and insured exists, (ii) insurance brokerage services have been provided, (iii) the fee to be paid by the related insurer to the Company for such services is fixed or determinable, and (iv) the collectability of the fee is reasonably assured. The purpose of refund is primarily due to the portion of performance sales targets are not met in that contract year. The following table presents the amounts recognized as revenue and the refunded for each contract year:

18

Contract Year	Period	Execution Fees		Revenue Amount			Refund Amount
First	4/15/2013 ~ 9/30/2014	NTD	50,000,000	NTD	28,494,856	(1)	NTD	21,505,144	(1)
Second	1/1/2016 ~ 12/31/2016	NTD	35,000,000	NTD	13,497,750	(2)	NTD	21,502,250	(2)
Third	1/1/2017 ~ 12/31/2017	NTD	33,000,000	NTD	9,254,296	(3)	NTD	-
Fourth	1/1/2018 ~ 12/31/2018	NTD	33,000,000	NTD	-		NTD	-
Fifth	1/1/2019 ~ 12/31/2019	NTD	33,000,000	NTD	-		NTD	-
Sixth	1/1/2020 ~ 12/31/2020	NTD	33,000,000	NTD	-		NTD	-
Seventh	1/1/2021 ~ 12/31/2021	NTD	33,000,000	NTD	-		NTD	-
TOTAL		NTD	250,000,000	NTD	51,246,902		NTD	43,007,394

(1)	The revenue recognition for the first contract year is based on the annual first year premium (“AFYP”) set in Alliance Agreement, which is difference from other contract years. From the second contract year to the seventh contract year, the revenue calculation is based on VONB. The Company recognized the first contract year’s revenue amount of $934,099 (NTD28,494,856) and refunded the amount of nil for the first contract year for the nine months ended September 30, 2017. On December 3, 2015 and February 23, 2016, the Company refunded the amounts of $152,235 (NTD 5,000,000) and $502,532 (NTD 16,505,144) to AIATW, respectively, due to the portion of performance sales targets not met during the first contract year.
(2)	For the nine months ended September 30, 2017, the Company recognized the second contract year’s revenue amount of $442,474 (NTD13,497,750) and refunded the amount of $709,084 (NTD21,502,250) for the same contract period.
(3)	For the nine months ended September 30, 2017, the Company recognized the third contract year’s revenue amount of $303,369 (NTD9,254,296) and refunded the amount nil for the same contract period.

The Company recognized revenue of $1,679,942 (NTD51,246,902) and nil for the nine months ended September 30, 2017 and 2016 related to this agreement. As of September 30, 2017 and December 31, 2016, the Company had non-current portion of unearned revenue of $4,242,585 and $4,742,272, respectively, and current portion of $681,340 and $1,966,814, respectively, related to the Alliance Agreement. 

Unearned revenue – Farglory

On April 20, 2016, the Company entered into a service agreement (“Service Agreement”) with Farglory Life Insurance Co., Ltd. (“Farglory”). The Company is to provide consulting services to Farglory for NTD4,000,000 per year and the aggregate consulting services fee is NTD20,000,000 from May 1, 2016 to April 30, 2021. However, both parties are renegotiating the Service Agreement and plan to amend the cooperation method. As of September 30, 2017 and December 31, 2016, the Company had long-term liabilities amount of nil and $495,615, respectively, and current liabilities amounts of $659,544 and $123,904, respectively, related to this Service Agreement.

Due to previous shareholders of AHFL

Due to previous shareholders of AHFL is the remaining balance payable of the acquisition cost. On March 12, 2017, the Company and the selling shareholders of AHFL entered into a fifth amendment to the acquisition agreement (the “Fifth Amendment”), pursuant to which, the Company agreed to distribute the cash payment in the amount of $480,559 (NTD15 million) on or prior to March 31, 2019.

Other long-term liabilities

On May 10, 2016, Law Broker entered into an engagement agreement (the “Engagement Agreement”) with Hui-Hsien Chao (“Ms. Chao”), pursuant to which she acts as the general manager of Law Broker for a term from December 29, 2015 to December 28, 2018. Ms. Chao’s primary responsibilities are to assist Law Broker in operating and managing insurance agency business. According to the Engagement Agreement, Ms. Chao’s bonus plans include: 1) execution, 2) long-term service fees, 3) pension and 4) non-competition, and the payment of such bonuses will only occur upon satisfaction of certain condition and subject to the terms therein, among which, Ms. Chao acts as the general manager or equivalent position of Law Broker for at least 3 years.

On May 14, 2016, Law Broker and Ms. Chao entered into a supplementary agreement (“Supplementary Agreement”) to postpone her pension vesting date to December 29, 2016. Law Broker expects that none of the above-mentioned bonuses are to be paid prior to May 2019, and therefore it has recorded as long-term liabilities representing the corresponding portion of such bonuses accrued. On March 13, 2017, Law Broker and Ms. Chao entered into an engagement agreement, which is the amendment to Engagement Agreement dated May 10, 2016 to specify 1) Ms. Chao’s pension calculation assumption and start date, and 2) the non-competition provision start date. As of September 30, 2017 and December 31, 2016, the balance of such accrued long-term liabilities was $175,191 and $77,440, respectively.

NOTE 16 – PREFERRED STOCK

The Company is authorized to issue 10,000,000 shares of preferred stock, $.00001 par value and currently has 1,000,000 shares of Series A Preferred Stock (“Series A Stock”) outstanding as of September 30, 2017. The Series A Stock has the following rights and preferences:

Voting Rights. Except as otherwise provided by law, the Series A Stock and the common stock vote together on all matters submitted to a vote of the Company’s shareholders. Each holder of Series A Stock is entitled to ten votes for each share of Series A Stock held of record by such holder as of the applicable record date on any matter that is submitted to a vote of the stockholders of the Company.

19

Series A Board Designee and Board Restriction. In addition to the voting rights disclosed above, the holders of the Series A Stock shall be entitled to appoint one director (the “Series A Director”). No Board resolution regarding certain material Company actions can be made without the affirmative vote of the Series A Director.

Dividends. The holders of Series A Stock are entitled to share equally with the holders of common stock, on a per share basis, in such dividends and other distributions of cash, property or shares of stock of the Company as may be declared by the Board.

Liquidation. In the event of a voluntary or involuntary liquidation, dissolution, distribution of assets or winding up of the Company, the holders of common stock and the holders of Series A Stock shall be entitled to share equally on a per share basis, in all assets of the Company of whatever kind available for distribution.

Conversion Rights. The holders of the Series A Stock have the right to convert their shares thereof at any time into shares of the Company’s common stock. Each share of Series A Stock is convertible into one share of common stock.

If the Company in any manner subdivides or combines the outstanding shares of common stock, the outstanding shares of the Series A Stock will be subdivided or combined in the same manner.

Business Combinations. In any merger, consolidation, reorganization or other business combination, the consideration received per share by the holders the common stock and the holders of the Series A Stock in such merger, consolidation, reorganization or other business combination shall be identical; provided however, that if such consideration consists, in whole or in part, of certain equity interests, the rights and limitations of such equity interests may differ to the extent that the rights and limitations of the common stock and the Series A Stock differ.

Fully Paid and Nonassessable. All of the Company’s outstanding shares of preferred stock are fully paid and nonassessable.

The fair value of the 1,000,000 preferred shares was $225,000 at the time of the preferred share issuance. The fair value of the common shares was $200,000 at the time of the preferred share issuance based on its market price at the date of the transaction. Therefore, the incremental value of the preferred shares was $25,000. This amount may be deemed compensation.

From the qualitative aspect, the Company notes the following regarding this deemed compensation: 

Does not violate any debt or other contract covenants; 

Does not change any earnings or EPS trends; 

Does not affect any previous earnings or EPS guidance; 

Does not affect any segment or class of revenue; 

Does not affect any regulatory compliance matters;  

Does not affect cash compensation of management; 

Does not involve concealment of an unlawful act.

Additional preferred stock may be authorized and issued in the future in connection with acquisitions, financings, or other matters, as the Board of Directors (the “BOD”) deems appropriate.  In the event that the Company issues any shares of preferred stock, a certificate of designation containing the rights, privileges and limitations of this series of preferred stock will be filed with the Secretary of State of the State of Delaware.  The effect of this preferred stock designation power is that its BOD alone, subject to Federal securities laws, applicable blue-sky laws, and Delaware law, may be able to authorize the issuance of preferred stock which could have the effect of delaying, deferring, or preventing a change in control without further action by its stockholders, and may adversely affect the voting and other rights of the holders of its common stock.

20

NOTE 17 – STATUTORY RESERVES

According to Taiwan accounting rules and corporation regulations, the Company’s subsidiaries in Taiwan must appropriate 10% of net income to statutory reserves until the accumulated reserve hits registered capital. The reserve can be converted into share capital by issuing new shares to existing shareholders in proportion to their shareholding or by increasing the par value of the shares currently held by them, with a limitation that the reserve left is not less than 25% of the registered capital after converting to share capital.

Pursuant to the PRC regulations, CAE are required to transfer 10% of their net profit, as determined under the PRC accounting regulations, to a Statutory Common Reserve Fund (“Reserve Fund”). Appropriation to the Reserve Fund may cease when the fund equals 50% of a company’s registered capital or when a company has accumulated losses. The transfer to this reserve must be made before distribution of dividends to shareholders. The Company’s CAE did not appropriate such reserve as they have accumulated losses.

NOTE 18 – NON-CONTROLLING INTERESTS

Non-controlling interests consisted of the following:

Name of Affiliate	% of Non-controlling Interests			As of December 31, 2016			Net Income and Other Comprehensive Gain/(Loss) of Non-controlling Interests			As of September 30, 2017
Law Enterprise Co., Ltd. (“Law Enterprise”)		34.05	%	$	17,386		$	446,585		$	463,971
Law Broker		34.05	%		9,621,159			2,148,249			11,769,408
Prime Financial Asia Ltd. (“PFAL”)		49.00	%		232,414			(34,973	)		197,441
Max Key Investments Ltd. (“MKI”)		49.00	%		(1,569	)		(548	)		(2,117	)
Prime Asia Corporation Limited. (“PA Taiwan”)		49.00	%		(95,448	)		(64,179	)		(159,627	)
Prime Management Consulting (Nanjing) Co., Ltd. (“PTC Nanjing”)		49.00	%		(2,400	)		261			(2,139	)
Total				$	9,771,542		$	2,495,395		$	12,266,937

Name of Affiliate	% of Non-controlling Interests			As of December 31, 2015			Net Income and Other Comprehensive Gain/(Loss) of Non-controlling Interests			As of December 31, 2016
Law Enterprise		34.05	%	$	199,699		$	(182,313	)	$	17,386
Law Broker		34.05	%		7,197,128			2,424,031			9,621,159
PFAL		49.00	%		206,098			26,316			232,414
MKI		49.00	%		(1,065	)		(504	)		(1,569	)
PA Taiwan		49.00	%		(26,292	)		(69,156	)		(95,448	)
PTC Nanjing		49.00	%		(837	)		(1,563	)		(2,400	)
Total				$	7,574,731		$	2,196,811		$	9,771,542

NOTE 19 – INCOME TAX

Provision (benefit) for income tax for the three months ended September 30, 2017 consisted of:

Three months ended September 30, 2017	Federal		State		Foreign		Total
Current	$	-	$	-	$	828,532	$	828,532
Deferred		-		-		3,346		3,346
Total	$	-	$	-	$	831,878	$	831,878

Provision (benefit) for income tax for the three months ended September 30, 2016 consisted of:

Three months ended September 30, 2016	Federal		State		Foreign			Total
Current	$	-	$	-	$	500,787		$	500,787
Deferred		-		-		(43,959	)		(43,959	)
Total	$	-	$	-	$	456,828		$	456,828

21

Provision (benefit) for income tax for the nine months ended September 30, 2017 consisted of:

Nine months ended September 30, 2017	Federal		State		Foreign			Total
Current	$	-	$	-	$	2,365,177		$	2,365,177
Deferred		-		-		(20,030	)		(20,030	)
Total	$	-	$	-	$	2,345,147		$	2,345,147

Provision (benefit) for income tax for the nine months ended September 30, 2016 consisted of:

Nine months ended September 30, 2016	Federal		State		Foreign			Total
Current	$	-	$	-	$	1,400,566		$	1,400,566
Deferred		-		-		(65,235	)		(65,235	)
Total	$	-	$	-	$	1,335,331		$	1,335,331

Significant components of the deferred tax assets and liabilities for income tax as of September 30, 2017 and December 31, 2016 consisted of the following:

	As of
	September 30, 2017			December 31, 2016
Deferred tax assets
Net operating loss carry-forward	$	1,101,734		$	993,050
Others		110,212			84,597
Total	$	1,211,946		$	1,077,647
Valuation allowance		(1,101,734	)		(993,050	)
Net deferred tax assets	$	110,212		$	84,597
Deferred tax assets - current	$	58,041		$	59,233
Deferred tax assets - noncurrent	$	52,171		$	25,364
Deferred tax liabilities - current	$	125,059		$	-

A 100% valuation allowance was provided for the deferred tax assets related to the PRC segment and the Company as of September 30, 2017 and December 31, 2016. Net deferred tax assets of $110,212 and $84,597, respectively, related to the Taiwan segment were included in other current assets and other assets on the consolidated balance sheets as of September 30, 2017 and December 31, 2016. Deferred tax liabilities were the timing differences of revenue and cost of sales recognized in the period ended September 30, 2017. Deferred tax liabilities of $125,059 and nil, respectively, related to the PRC segment were in other current liabilities on the consolidated balance sheets as of September 30, 2017 and December 31, 2016.

Zhengzhou Zhonglian Hengfu Business Consulting Co., Ltd. (“CU WFOE”) and the CAE in the PRC are governed by the Income Tax Law of the PRC concerning the private enterprises, which are generally subject to tax at 25% on income reported in the statutory financial statements after appropriated adjustments, except for Jiangsu. For Jiangsu, according to the requirement of local tax authorities, the tax basis is deemed as 10% of total revenue, instead of net income.

The Company’s subsidiaries in Taiwan are governed by the Income Tax Law of Taiwan, and are generally subject to tax at 17% on income reported in the statutory financial statements after appropriate adjustments. In the meanwhile, Income Tax Law of Taiwan provides that a company is taxed at additional 10% on any undistributed earnings to its shareholders.

22

The Company’s subsidiaries in Hong Kong are governed by the Inland Revenue Ordinance Tax Law of Hong Kong, and are generally subject to a profits tax at the rate of 16.5% on the estimated assessable profits.

The following table reconciles the US statutory rates to the Company’s effective tax rate for the three months ended September 30, 2017 and 2016:

	Three Months Ended September 30,
	2017			2016
US statutory rate		34	%		34	%
Tax rate difference		(18	)%		(18	)%
Tax base difference		-	%		-	%
Loss in subsidiaries		7	%		2	%
Un-deductible and non-taxable items		7	%		9	%
Tax per financial statements		30	%		27	%

The following table reconciles the US statutory rates to the Company’s effective tax rate for the nine months ended September 30, 2017 and 2016:

	Nine Months Ended September 30,
	2017			2016
US statutory rate		34	%		34	%
Tax rate difference		(18	)%		(20	)%
Tax base difference		-	%		1	%
Loss in subsidiaries		5	%		7	%
Un-deductible and non-taxable items		6	%		10	%
Tax per financial statements		27	%		32	%

Un-deductible and non-taxable items mainly represent un-deductible expenses according to local tax laws and the non-taxable tax income or expenses.

NOTE 20 – RELATED PARTY TRANSACTIONS

Due to related parties

The related parties listed below loaned money to the Company for working capital. Due to related parties consisted of the following as of September 30, 2017 and December 31, 2016:

	September 30, 2017		December 31, 2016
Due to Mr. Mao (CEO of the Company)	$	401,775	$	361,379
Due to Ms. Lu (Shareholder of Law Anhou)		225,411		-
Due to Xude Investment (Owned by Mr. ChwanHau Li)		-		32,374
Due to Mr. Zhu (Legal Representative of Jiangsu)		2,081		1,994
Due to Yuli Broker (Owned by Ms. Lee)		141		265
Due to Yuli Investment (Owned by Ms. Lee)		141		265
Due to I Health Management Corp*		17,313		3,724
Total	$	646,862	$	400,001

*25% of I Health Management Corp’s shares are owned by Multiple Capital Enterprise. 24% of Multiple Capital Enterprise’s shares are owned by the Company’s management level 

The loan due to related parties were non-interest bearing and were payable on demand.

23

Debt Forgiveness – Related Parties

In 2015, Xude Investment assisted the Company to set up Genius Holdings Financial Limited (BVI Company) and Genius Investment Consultant Co., Ltd. (Taiwan Company) and paid set up fee on behalf of the Company with the amount of $23,544 and NTD285,083 ($9,393). Xude Investment was owned by Mr. ChwanHau Li, who is one of the Directors of the Company. In March 2017, Xude Investment agreed to forgive the Company’s debt above in whole. As of September 30, 2017, the Company has debt forgiveness from related parties amount of $32,937.

Lease Agreements

On July 1, 2016, the Company entered into a lease agreement with Yuli Broker to lease its Nan-King East Road office space in Taipei City. The lease term was for one year commencing on July 1, 2016 and ending on June 30, 2017, with an annual base rent approximately of $590 (NTD18,000). On June 30, 2017, this lease agreement was extended automatically to June 30, 2018. For the three and nine months ended September 30, 2017, rent income were $141 and $421, respectively.

On July 1, 2016, the Company entered into a lease agreement with Yuli Investment to lease its Nan-King East Road office space in Taipei City. The lease term was for one year commencing on July 1, 2016 and ending on June 30, 2017, with an annual base rent approximately of $590 (NTD18,000). On June 30, 2017, this lease agreement was extended automatically to June 30, 2018. For the three and nine months ended September 30, 2017, rent income were $141 and $421, respectively.

Advisory Agreements

On May 2, 2016, the Company entered into an advisory agreement with I Health. Pursuant to the Advisory Agreement, I Health provided 10,000 Taiwan citizen’s health information to the Company for its new insurance product during May 2, 2016 to May 1, 2017. The total advisory fee was approximately $42,000 (NTD1,275,000). For the nine months ended September 30, 2017, The Company had cost of revenue related to I Health amount of $13,269.

On December 7, 2016, the Company entered into an advisory agreement with Fuchang Li (“Mr. Li,” the Director of the Company). Pursuant to this Advisory Agreement, Mr. Li provided investment consulting to the Company from December 7, 2016 to December 6, 2017. The total advisory fee was approximately $58,000 (NTD1,800,000). The Company had general and administrative expense related to this advisory agreement amount of $13,619and $42,998, respectively, for the three and nine months ended September 30, 2017.

Consulting Agreement

On November 1, 2016, the Company entered into a consulting agreement with Apex Biz Solution Limited. (“Apex,” was formerly known as Prime Technology Corp.), which has one of the same directors as Prime Financial Asia Ltd. Pursuant to this consulting agreement, the Company provided administrative operation consulting service to Apex from November 1, 2016 to December 31, 2021. As of and for the nine months ended September 30, 2017, the Company had account receivable and revenue amount of $17,274 and $33,874, respectively.

NOTE 21 – COMMITMENTS

Operating Leases

The Company has operating leases for its offices. Rental expenses for the three months ended September 30, 2017 and 2016 were $595,277 and $526,390, respectively. Rental expenses for the nine months ended September 30, 2017 and 2016 were $1,832,335 and $1,557,725, respectively. As of September 30, 2017, total future minimum annual lease payments under operating leases were as follows, by years:

Twelve months ending September 30, 2018	$	2,049,071
Twelve months ending September 30, 2019		1,166,015
Twelve months ending September 30, 2020		245,873
Twelve months ending September 30, 2021		55,088
Twelve months ending September 30, 2022		17,687
Thereafter		-
Total	$	3,533,734

24

Engagement Agreement with Ms. Chao

On May 10, 2016, Law Broker entered into the Engagement Agreement with Ms. Chao. Please refer to Note 15 Other Long-term Liabilities.

NOTE 22 – FINANCIAL RISK MANAGEMENT AND FAIR VALUE

The Company has exposure to credit, liquidity and market risks which arise in the normal course of its business. This note presents information about the Company’s exposure to each of these risks, the Company’s objectives, policies and processes for measuring and managing risk, and the Company’s management of capital. Further quantitative disclosures are included throughout these consolidated financial statements.

The BOD has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Company’s risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Company’s BOD oversees how management monitors compliance with the Company’s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. 

(a) Credit risk

The Company’s credit risk arises principally from accounts receivables, loan and other receivables, pledged deposits and cash and equivalents. Management has a credit policy in place and monitors exposures to these credit risk on an ongoing basis. The carrying amounts of account receivables, loan and other receivables, pledged deposits and cash and cash equivalents represent the Company’s maximum exposure to credit risk. Accounts receivable are due within thirty (30) days from the date of billing.

(b) Liquidity risk

The BOD of the Company is responsible for the overall cash management and raising borrowings to cover expected cash demands. The Company regularly monitors its liquidity requirements, to ensure it maintains sufficient reserves of cash and readily realizable marketable securities and adequate committed lines of funding from major financial institutions to meet its liquidity requirements in the short and longer term.

(c) Currency risk

The functional currency for the Company’s subsidiaries in Taiwan is NTD and the functional currency for the Company’s subsidiaries and CAE in PRC is RMB. The financial statements of the Company are in USD. The fluctuation of NTD and RMB exchange rates will affect the Company’s operating results expressed in USD. The Company reviews its foreign currency exposures, and the management does not consider its present foreign exchange risk to be significant. 

25

NOTE 23 – RECLASSIFICATIONS

The effects of the reclassifications for the prior year is reflected below.

Consolidated Balance Sheet	December 31, 2016
Original:
Cash and cash equivalents	$	25,521,802
Revised:
Cash and cash equivalents	$	20,169,455
Time deposits		5,352,347

Unaudited Condensed Consolidated Statements of Cash Flow	Nine Months Ended September 30, 2016
Original:
Net cash used in investing activities	$	(960,166	)
Foreign currency translation		942,171
Net increase (decrease) in cash and cash equivalents		3,975,267
Cash and cash equivalents, beginning balance		20,831,824
Cash and cash equivalents, ending balance		24,807,091
Revised:
Cash flows from investing activities:
Purchases of time deposits	$	(7,095,147	)
Proceeds from maturities of time deposits		8,025,394
Net cash used in investing activities		(29,919	)
Foreign currency translation		596,891
Net increase (decrease) in cash and cash equivalents		4,560,234
Cash and cash equivalents, beginning balance		13,083,357
Cash and cash equivalents, ending balance		17,643,591

NOTE 24 – FAIR VALUE MEASUREMENT

FASB ASC 820, “Fair Value Measurements and Disclosures,” defines Fair Value (“FV”), establishes a three-level valuation hierarchy for disclosures of FV measurement and enhances disclosure requirements for FV measures. The carrying amounts reported in the balance sheets for receivables and current liabilities each qualify as financial instruments and are reasonable estimates of FV because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels are defined as follows:

• Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

• Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liabilities, either directly or indirectly, for substantially the full term of the financial instruments.

• Level 3 inputs to the valuation methodology are unobservable and significant to the FV.

26

The following table presents the fair value and carrying value of the Company’s financial assets and liabilities as of September 30, 2017:

	Fair Value						Carrying
	Level 1		Level 2		Level 3		Value
Assets
Bank time deposits	$	-	$	21,475,432	$	-	$	21,475,432
Marketable securities:
Funds		32,867		-		-		32,867
Structured deposit		-		1,205,162		-		1,205,162
Loan receivable (Other current assets in Notes 6)		-		-		1,477,060		1,477,060
Long-term investment:
Equity investment		-		-		1,288,279		1,267,475
Government bonds		-		101,475		-		101,475
Liabilities
Due to related parties	$	-	$	-	$	646,862	$	646,862
Convertible bonds		-		-		200,000		200,000
Long-term loans		-		-		265,985		265,985

The following table presents the fair value and carrying value of the Company’s financial assets and liabilities as of December 31, 2016:

	Fair Value						Carrying
	Level 1		Level 2		Level 3		Value
Assets
Bank time deposits	$	-	$	7,808,058	$	-	$	7,808,058
Marketable securities:
Stocks		38,763		-		-		38,763
Funds		2,388,107		-		-		2,388,107
Loan receivable (Other current assets in Notes 6)		-		-		1,486,846		1,486,846
Long-term investment:
Equity investment		-		-		1,288,279		1,190,558
Government bonds		-		94,506		-		94,506
Liabilities
Due to related parties	$	-	$	-	$	400,001	$	400,001
Convertible bonds		-		-		200,000		200,000
Long-term loans		-		-		254,907		254,907

Bank time deposits – The carrying amount approximates its fair value due to short-term in nature of the bank time deposits.

Marketable securities – The fair value of stocks and funds is generally valued based on quoted market prices in active markets.

Structured deposit – The fair value of the structured deposit is determined based on present value of the structured deposit, using annum yield of 3.9% or 4.1%, depending on the strike price. The strike price is at 7.3 USDCNH.

Loan receivable – The Company’s loan receivable is determined based on 4.5% per annum interest rate on the recent lending to Rich Fountain Limited.

Equity investment – The fair value of the Company’s equity investment was arrived at using the “Income Approach.” The calculation assumptions were: (i) 2% for long-term stable growth rate, (ii) 14.79%~15% for cash discount rate (rate for weighted average cost of capital), and (iii) 25% for liquidity discount rate. The Company evaluated overall economic condition and unnoted any significant change. The related equity investment does not have any negative news. Therefore, the fair value of the Company’s equity investment as of September 30, 2017 is same as December 31, 2016.

Government bonds – The fair value of government bonds is valued based on theoretical bond price in Taipei Exchange (formerly the Gre Tai Securities Market).

Due to related parties – The Company’s due to related parties bears no interest and payable on demand.

27

Convertible bonds – The Company determined the fair value of the convertible bonds is 80% of the average closing trading price for the ten (10) business days immediately prior to the conversion date.

Long-term loans - The fair value of the Company’s long-term loans were determined by discounted cash flows.

NOTE 25 – GEOGRAPHICAL DATA

The geographical distribution of the Company’s financial information for the three months ended September 30, 2017 and 2016 were as follows:

	For three months ended September 30,
Geographical Areas	2017			2016
Revenue
Taiwan	$	13,290,282		$	12,714,857
PRC		2,885,940			2,182,967
Hong Kong		33,633			71,079
Elimination adjustment		479			(17,558	)
Total revenue	$	16,210,334		$	14,951,345
Income (loss) from operations
Taiwan	$	2,348,757		$	1,661,872
PRC		284,662			(75,861	)
Hong Kong		(21,353	)		1,822
Elimination adjustment		35,487			37,848
Total income (loss) from operations	$	2,647,553		$	1,625,681
Depreciation and amortization expenses
Taiwan	$	117,019		$	130,343
PRC		21,415			22,180
Hong Kong		71			72
Elimination adjustment		-			-
Total depreciation and amortization expenses	$	138,505		$	152,595
Interest income
Taiwan	$	101,919		$	38,959
PRC		45			(2,254	)
Hong Kong		-			(1	)
Elimination adjustment		(22,665	)		(5,591	)
Total interest income	$	79,299		$	31,113
Interest expenses
Taiwan	$	25,665		$	8,965
PRC		5,293			(1,773	)
Hong Kong		-			-
Elimination adjustment		(22,665	)		(5,591	)
Total interest expenses	$	8,293		$	1,601
Income tax expense
Taiwan	$	707,676		$	456,849
PRC		129,257			(21	)
Hong Kong		(5,055	)		-
Elimination adjustment		-			-
Total income tax expense	$	831,878		$	456,828
Net income (loss)
Taiwan	$	1,877,187		$	1,298,707
PRC		115,800			(88,813	)
Hong Kong		(17,621	)		10,781
Elimination adjustment		1,771			2,571
Total net income (loss)	$	1,977,137		$	1,223,246

28

The geographical distribution of the Company’s financial information for the nine months ended September 30, 2017 and 2016 were as follows:

	For nine months ended September 30,
Geographical Areas	2017			2016
Revenue
Taiwan	$	41,667,540		$	37,093,407
PRC		8,321,471			6,086,426
Hong Kong		106,147			148,664
Elimination adjustment		(10,474	)		(39,384	)
Total revenue	$	50,084,684		$	43,289,113
Income (loss) from operations
Taiwan	$	7,652,886		$	4,549,826
PRC		447,690			(765,421	)
Hong Kong		(59,649	)		(12,491	)
Elimination adjustment		101,934			100,198
Total income (loss) from operations	$	8,142,861		$	3,872,112
Depreciation and amortization expenses
Taiwan	$	343,413		$	392,943
PRC		66,965			62,224
Hong Kong		215			216
Elimination adjustment		-			-
Total depreciation and amortization expenses	$	410,593		$	455,383
Interest income
Taiwan	$	302,630		$	150,772
PRC		2,314			1,408
Hong Kong		-			-
Elimination adjustment		(58,385	)		(14,958	)
Total interest income	$	246,559		$	137,222
Interest expenses
Taiwan	$	67,385		$	19,920
PRC		15,562			6,203
Hong Kong		-			-
Elimination adjustment		(58,385	)		(14,958	)
Total interest expenses	$	24,562		$	11,165
Income tax expense
Taiwan	$	2,133,024		$	1,332,238
PRC		217,178			3,093
Hong Kong		(5,055	)		-
Elimination adjustment		-			-
Total income tax expense	$	2,345,147		$	1,335,331
Net income (loss)
Taiwan	$	6,382,356		$	3,678,408
PRC		170,408			(781,726	)
Hong Kong		(70,562	)		(13,882	)
Elimination adjustment		4,762			6,456
Total net income (loss)	$	6,486,964		$	2,889,256

29

The geographical distribution of the Company’s financial information as of September 30, 2017 and December 31, 2016 were as follows:

	As of
Geographical Areas	September 30, 2017			December 31, 2016
Capital expenditures
Taiwan	$	(317,455	)	$	(835,564	)
PRC		(29,234	)		(148,936	)
Hong Kong		-			-
Total capital expenditures	$	(346,689	)	$	(984,500	)
Long-lived assets
Taiwan	$	1,508,431		$	1,453,772
PRC		165,811			256,704
Hong Kong		430			648
Elimination adjustment		3,746,163			2,071,491
Total long-lived assets	$	3,746,163		$	3,782,615
Reportable assets
Taiwan	$	89,208,044		$	90,388,991
PRC		11,748,446			13,325,433
Hong Kong		434,808			561,708
Elimination adjustment		(50,258,436	)		(52,868,589	)
Total reportable assets	$	51,132,862		$	51,407,543

NOTE 26 – LOAN TO SHAREHOLDERS

Anhou Registered Capital Increase

On April 27, 2013, China Insurance Regulatory Commission mandated any insurance agency have a minimum registered capital requirement of RMB50 million (approximately $ 8 million). At the time, Anhou, a professional insurance agency with a PRC nationwide license, had a registered capital of RMB10 million (approximately $ 1.6 million). To better implement its expansion strategies, Anhou intends to increase its registered capital to RMB50 million so that it can set up new branches in any province beyond its current operations in the PRC.

Due to certain restriction on direct foreign investment in insurance agency business under current PRC legal requirements, Anhou sought investments from certain Investor Borrowers, as defined below in Item 2 of this part, who in turn needed funds through individual loans.

On June 9, 2013, AHFL entered into a loan agreement with ZLI Holdings, whereby AHFL agreed to provide a loan to ZLI Holdings of RMB40 million ($6,389,925). The term for such loan is 10 years which may be extended upon the agreement of the parties. The loan was remitted to ZLI Holdings on August 30, 2013. In August 2013, ZLI Holdings entered into three loan agreements (“Investor Loan Agreements”) with the following independent third parties, collectively, the Investor Borrowers:

1. Able Capital Holding Co., Ltd., a limited liability company established and registered in Hong Kong (RMB29,500,000 ($4,712,570))

2. Ms. Chunyan Lu, PRC citizen (RMB3,000,000 ($479,244))

30

3. Ms. Jing Yue, PRC citizen (RMB7,500,000 ($1,198,111))

The term for the above loans is 10 years which may be extended upon the agreement of the parties. Pursuant to the Investor Loan Agreements, each of the Investor Borrowers entered into a binding variable interest entity (“VIE”) agreement with Anhou, CU WFOE and certain existing shareholders of Anhou. The proceeds received from the said loans by the Investor Borrowers were solely used to increase the registered capital of Anhou. On October 20, 2013, the Investor Borrowers increased Anhou’s registered capital by RMB 40 million ($6,389,925).

NOTE 27 – SUBSEQUENT EVENTS

The Company does not receive the full remaining principle repayment of loan receivable from RFL. On November 1 and November 2, 2017, the Company received the interest payment of this loan amount of NTD 300,000 (approximately $9,800) and $23,832, respectively. The management has evaluated RFL's business operation and ability to repay the loan in the future and determine that RFL will be able to repay the loan per newly negotiated terms and assessed that there is no impairment loss on the loan. Therefore, the Company is willing to extend the payment period of RFL loan.

The Company has evaluated all other subsequent events through the date these consolidated financial statements were issued, and determined that there were no subsequent events or transactions that require recognition or disclosures in the consolidated financial statements.

31

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS.

The following discussion of the results of operations and financial condition should be read in conjunction with our condensed consolidated financial statements and notes thereto included in Item 1 of this part. This report, including the information incorporated by reference, contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The use of any of the words “believe,” “expect,” “anticipate,” “plan,” “estimate,” and similar expressions are intended to identify such statements. Forward-looking statements include statements concerning our possible or assumed future results. The actual results that we achieve may differ materially from those discussed in such forward-looking statements due to the risks and uncertainties described in the Risk Factors section of this report, in Management’s Discussion and Analysis of Financial Condition and Results of Operations, and in other sections of this report, as well as in our annual report on Form 10-K. We undertake no obligation to update any forward-looking statements.

Overview

The Company primarily provides two broad categories of insurance products, life insurance products and property and casualty insurance products in Taiwan and PRC. The Company also provides reinsurance brokerage services and insurance consulting services in Hong Kong and Taiwan. The revenue from our reinsurance brokerage services and insurance consulting services accounts for less than 1% of our total revenue. The insurance products that the Company’s subsidiaries sell is underwritten by some of leading insurance companies in Taiwan and PRC, respectively.

(1) Life Insurance Products

Total revenue from Taiwan life insurance products accounted for 74.01% and 80.25% of total revenue for the nine months ended September 30, 2017 and 2016, respectively. Total revenue from PRC life insurance products were 15.67% and 12.43% of total revenue for the nine months ended September 30, 2017 and 2016, respectively.

In addition to the periodic premium payment schedules, most of the individual life insurance products we distribute also allow the insured to choose to make a single, lump-sum premium payment at the beginning of the policy term. If a periodic payment schedule is adopted by the insured, a life insurance policy can generate periodic payment of fixed premiums to the insurance company for a specified period of time. This means that once the Company sells a life insurance policy with a periodic premium payment schedule, they will be able to derive commission and fee income from that policy for an extended period of time, sometimes up to twenty-five (25) years. Because of this feature and the expected sustained growth of life insurance sales in China and Taiwan, we have focused significant resources ever since the incorporation of Anhou and Law Broker on developing our capability to distribute individual life insurance products with periodic payment schedules. We expect that sales of life insurance products will continuously be our primary source of revenue in the next several years.

(2) Property and Casualty Insurance Products

Taiwan subsidiaries commenced sale of automobile insurance, casualty insurance and liability insurance business in August 2003. Total revenue from Taiwan property and casualty insurance products were 5.66% and 5.34% of total revenue for the nine months ended September 30, 2017 and 2016, respectively. Our CAE in PRC commenced its sales of commercial property insurance in 2009 and developed its automobile insurance business in 2010. Total revenue from PRC property and casualty insurance products were 0.93% and 1.63% of total revenue for the nine months ended September 30, 2017 and 2016, respectively.

Critical Accounting Policies and Estimates

A critical accounting policy is one that is both important to the portrayal of our financial condition and results of operation and requires our management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Our significant accounting policies are described in Note 2 of “Summary of Significant Accounting Policies” included within our 2016 Annual Report on Form 10-K filed with the Securities and Exchange Commission. Following is a discussion of the accounting policies that we believe involve the most difficult, subjective or complex judgments and estimates.

32

Accrued Expenses

As part of the process of preparing our financial statements, we are required to estimate accrued expenses. The estimation basis of the majority of the accrued expenses is dependent on our sales force’s achievement of the sales targets identified by our clients. Examples of estimated accrued expenses include brokerage commission bonus, such as bonus payable to our sales professionals, and incentive program rewards, such as the estimated expenditures to fund the reward programs. We develop estimates of liabilities using our judgment based upon the facts and circumstances known at the time.

Long-term investments

The Company classifies its investments as available-for-sale in accordance with ASC 320 “Debt and Equity Securities,” and Investments – Debt and Equity Securities are reported at fair value. Unrealized gains and losses as a result of changes in the fair value of the available-for-sale investments are recorded as a separate component within accumulated other comprehensive income in the accompanying consolidated balance sheets.

The Company uses the cost method of accounting for investments in companies that do not have a readily determinable fair value in which it holds an interest of less than 20% and over which it does not have the ability to exercise significant influence. Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis in the investment is established.

Recent Accounting Pronouncements

Refer to Note 2, Summary of Significant Accounting Policies, of our condensed consolidated financial statements for a discussion of recent accounting pronouncements and their effect, if any. 

Overview of the three months ended September 30, 2017 and 2016

The following table shows the results of operations for the three months ended September 30, 2017 and 2016:

	Three Months Ended  September 30,
	2017			2016
	(Unaudited)			(Unaudited)			Change			Percent
Revenue	$	16,210,334		$	14,951,345		$	1,258,989			8	%
Cost of revenue		9,071,624			9,335,735			(264,111	)		-3	%
Gross profit		7,138,710			5,615,610			1,523,100			30	%
Gross profit margin		44	%		38	%		6	%		16	%
Operating expenses:
Selling		783,120			630,225			152,865			24	%
General and administrative		3,708,037			3,359,674			348,363			10	%
Total operating expenses		4,491,157			3,989,929			501,228			13	%
Income from operations		2,647,553			1,625,681			1,021,872			63	%
Other income (expenses):
Interest income		79,299			31,113			48,186			155	%
Interest expenses		(8,293	)		(1,601	)		(6,692	)		418	%
Dividend income		1,391			3,633			(2,242	)		-62	%
Other - net		89,065			21,248			67,817			319	%
Total other income (expenses)		161,462			54,393			107,069			197	%
Income before income tax		2,809,015			1,680,074			1,128,941			67	%
Income tax expense		831,878			456,828			375,050			82	%
Net income		1,977,137			1,223,246			753,891			62	%
Net income attributable to the noncontrolling interests		669,490			465,501			203,989			44	%
Net income attributable to parent’s shareholders		1,307,647			757,745			549,902			73	%

33

Revenue

As a distributor of insurance products, we derive our revenue primarily from commissions and fees paid by insurance and reinsurance companies, typically calculated as a percentage of premiums paid by our customers to the insurance and reinsurance companies in Taiwan, PRC and Hong Kong. We generate revenue primarily through our sales force, which consists of individual sales professionals in our distribution and service network. For the three months ended September 30, 2017 and 2016, the revenue generated respectively from Taiwan, PRC and Hong Kong is as follows:

	Three months ended September 30,
Geographical Areas	2017		2016
Revenue
Taiwan	$	13,290,282	$	12,714,857
PRC		2,885,940		2,182,967
Hong Kong		33,633		71,079
Elimination adjustment		479		(17,558	)
Total Revenue	$	16,210,334	$	14,951,345

During the three months ended September 30, 2017, 82.0%, 17.8% and 0.2% of our revenue in our unaudited consolidated financial statements were derived from Taiwan, PRC and Hong Kong, respectively. During the three months ended September 30, 2016, 85.0%, 14.6% and 0.4% of our revenue in our unaudited consolidated financial statements were derived from Taiwan, PRC and Hong Kong, respectively. The percentage of geographical revenue for the three months ended September 30, 2017 and 2016 were relatively consistent.

Total revenue increased by $1,258,989, or 8%, from $14,951,345 for the three months ended September 30, 2016 to $16,210,334 for the three months ended September 30, 2017, was mainly due to the increase of the revenue from Strategic Alliance Agreement with AIATW in Taiwan and annuity insurance in PRC. Increase of revenue in PRC is mainly due to public awareness of financial planning and investment for retirement as average life span and individual economy has significantly increased over the recent years. Moreover, in anticipation of the possible adjustment on the max premium payment and the proposed change to the annuity insurance regulation in the PRC, the consumers are willing to invest their money in insurance products during the three months ended September 30 of this year compared to the same period of last year.

Cost of revenue and gross profit

The cost of revenue decreased by $264,111, or 3%, from $9,335,735 for the three months ended September 30, 2016 to $9,071,624 for the three months ended September 30, 2017. The increase in gross profit was primarily due a decrease in direct cost, such as the bonuses and awards to sales professionals.

The gross profit for the three months ended September 30, 2017 increased by $1,523,100 or 30%, to $7,138,710 compared to $5,615,610 for the three months ended September 30, 2016. The gross profit ratio increased to 44% for the three months ended September 30, 2017 from 38% for the three months ended September 30, 2016. The increase in gross profit was primary due to the increase in business promotion revenue from AIATW and decrease in indirect cost.

34

Selling expenses

Selling expenses were mainly occurred in Law Broker, representing the expense for marketing promotion and selling related expenses. The selling expense for the three months ended September 30, 2017 increased by $152,865 or 24%, to $783,120 compared to $630,255 for the three months ended September 30, 2016. The increase was mainly due to increased sales conference fee.

General and administrative expenses

The general and administrative (“G&A”) expenses principally comprise salaries and benefits for our administrative staff, office rental expenses, travel expenses, depreciation and amortization, entertainment expenses, and professional service fees to the auditor and attorney.

For the three months ended September 30, 2017, G&A expenses were $3,708,037, increased by $348,363, or 10%, compared with $3,359,674 for the three months ended September 30, 2016, which was mainly due to the increased number of branches, personnel costs in China and the increased personnel costs in Taiwan.

Other income (expenses)

Net other income for the three months ended September 30, 2017 and 2016 were $161,462 and $54,393, respectively. Other income (expense) mainly consists of interest income, interest expenses, other income, dividend income and loss on disposal of property, plant and equipment. Compared with the three months ended September 30, 2016, net other income increased due to the fluctuation of exchange rate and interest income.

Income tax expense

For the three months ended September 30, 2017, the income tax expense was $831,878, increased by $375,050, or 82%, compared with $456,828 for the three months ended September 30, 2016. The increase was mainly due to the increased income before income tax for the three months ended September 30, 2017 compared to that for the three months ended September 30, 2016.

The Company’s subsidiaries in Taiwan are governed by the Income Tax Law of Taiwan, and are generally subject to tax at 17% on income reported in the statutory financial statements after appropriate adjustments. In addition, the Income Tax Law of Taiwan provides that a company is taxed an additional 10% on any undistributed earnings to its shareholders.

CU WFOE and the CAE in the PRC are governed by the Income Tax Law of the PRC concerning the private enterprises, which are generally subject to tax at 25% on income reported in the statutory financial statements after appropriated adjustments, except for Jiangsu. For Jiangsu, according to the requirement of local tax authorities, the tax basis is deemed as 10% of total revenue, instead of net income.

The Company’s subsidiaries in Hong Kong are governed by the Inland Revenue Ordinance Tax Law of Hong Kong, and are generally subject to a profits tax at the rate of 16.5% on the estimated assessable profits.

35

Overview of the nine months ended September 30, 2017 and 2016

The following table shows the results of operations for the nine months ended September 30, 2017 and 2016:

	Nine Months Ended  September 30,
	2017			2016
	(Unaudited)			(Unaudited)			Change			Percent
Revenue	$	50,084,684		$	43,289,113		$	6,795,571			16	%
Cost of revenue		29,746,059			27,986,021			1,760,038			6	%
Gross profit		20,338,625			15,303,092			5,035,533			33	%
Gross profit margin		41	%		35	%		6	%		17	%
Operating expenses:
Selling		1,481,423			2,094,965			(613,542	)		-29	%
General and administrative		10,714,341			9,336,015			1,378,326			15	%
Total operating expenses		12,195,764			11,430,980			764,784			7	%
Income from operations		8,142,861			3,872,112			4,270,749			110	%
Other income (expenses):
Interest income		246,559			137,222			109,337			80	%
Interest expenses		(24,562	)		(11,165	)		(13,397	)		120	%
Dividend income		331,140			272,522			58,618			22	%
Other - net		136,113			(46,104	)		182,217			-395	%
Total other income (expenses)		689,250			352,475			336,775			96	%
Income before income tax		8,832,111			4,224,587			4,607,524			109	%
Income tax expense		2,345,147			1,335,331			1,009,816			76	%
Net income		6,486,964			2,889,256			3,597,708			125	%
Net income attributable to the noncontrolling interests		1,854,584			1,301,226			553,358			43	%
Net income attributable to parent’s shareholders		4,632,380			1,588,030			3,044,350			192	%

Revenue 

As a distributor of insurance products, we derive our revenue primarily from commissions and fees paid by insurance and reinsurance companies, typically calculated as a percentage of premiums paid by our customers to the insurance and reinsurance companies in Taiwan, PRC and Hong Kong. We generate revenue primarily through our sales force, which consists of individual sales professionals in our distribution and service network. For the nine months ended September 30, 2017 and 2016, the revenue generated respectively from Taiwan, PRC and Hong Kong is as follows:

	Nine months ended September 30,
Geographical Areas	2017			2016
Revenue
Taiwan	$	41,667,540		$	37,093,407
PRC		8,321,471			6,086,426
Hong Kong		106,147			148,664
Elimination adjustment		(10,474	)		(39,384	)
Total Revenue	$	50,084,684		$	43,289,113

During the nine months ended September 30, 2017, 83.2%, 16.6% and 0.2% of our revenue in our unaudited consolidated financial statements were derived from Taiwan, PRC and Hong Kong, respectively. During the nine months ended September 30, 2016, 85.7%, 14.1% and 0.3% of our revenue in our unaudited consolidated financial statements were derived from Taiwan, PRC and Hong Kong, respectively. The percentage of geographical revenue for the nine months ended September 30, 2017 and 2016 were relatively consistent.

36

Total revenue increased by $6,795,571, or 16%, from $43,289,113 for the nine months ended September 30, 2016 to $50,084,684 for the nine months ended September 30, 2017, which was mainly due to the increase of the revenue in Taiwan and PRC for the following reasons:

a) The revenue of TransGlobe Life Insurance Co., Ltd (“TransGlobe”) increased in 2017. The main reason was the launch of TransGlobe’s top seller product that offers better medical insurance coverages with an affordable insurance premium. This selling package drew more attention from the Company’s customers and boosted the sales performance for the nine months ended September 30, 2017.

b) The revenue of Taiwan Life Insurance Co., Ltd (“Taiwan Life”) increased in 2017, which was primarily due to the increase in sales of the injury and residual life insurance. This insurance guaranteed to pay 200 months no matter the insured survives or not. This selling package drew more attention from the company’s customers and raised the sales performance for the nine months ended September 30, 2017.

c) The revenue of AIATW increased in 2017, which was primarily due to the expected appreciation of the US dollar in the future. One of AIATW’s top selling products is a life insurance offers repayment in USD, which becomes more attractive to the Company’s customers. As a result, the sales performance increased in current period compared with prior corresponding period.

d) The revenue increase in the PRC was primarily due to the increases in sales of the retirement and critical illness insurance in Sichuan for the nine months ended September 30, 2017. In light of the need to make personal provisions or old age and illness, as strongly encouraged by the Chinese government, demand for such policies increased accordingly. In addition, the China Insurance Regulatory Commission (“CIRC”) required insurance companies to make adjustments to policy designs, driving insurance companies to innovate on their products to better meet market needs. These innovations also led to increase in revenue.

Cost of revenue and gross profit

The cost of revenue mainly consists of commissions paid to our sales professionals. The cost of revenue for the nine months ended September 30, 2017 increased by $1,760,038 or 6%, to $29,746,059 compared to $27,986,021 for the nine months ended September 30, 2016. The cost of revenue increased was mainly due to the increase of direct commission cost.

The gross profit for the nine months ended September 30, 2017 increased by $5,035,533 or 33%, to $20,338,625 compared to $15,303,092 for the nine months ended September 30, 2016. The gross profit ratio increased to 41% for the nine months ended September 30, 2017 from 35% for the nine months ended September 30, 2016. The increase in gross profit was primarily due to an increase in business promotion revenue from AIATW, and the cost of revenue increased accordingly.

Selling expenses

Selling expenses were mainly occurred in Law Broker, representing the expense for marketing promotion and selling related expense. The selling expense for the nine months ended September 30, 2017 decreased by $613,542 or 29%, to $1,481,423 compared to $2,094,965 for the nine months ended September 30, 2016. The decrease was mainly due to decreased advertising expense. The Company is already well known by the public in both Taiwan and China. In that case, we decided to reduce our advertising expenses for market promotion.

General and administrative expenses

The G&A expenses principally comprise salaries and benefits for our administrative staff, office rental expenses, travel expenses, depreciation and amortization, entertainment expenses, and professional service fees to the auditor and attorney.

For the nine months ended September 30, 2017, G&A expenses were $10,714,341, increased by $1,378,326, or 15%, compared with $9,336,015 for the nine months ended September 30, 2016, which was mainly due to the increased number of branches, personnel costs China and the increased personnel costs, rent and pension in Taiwan.

Other income (expenses)

Net other income for the nine months ended September 30, 2017 was $689,250 and the net other income for the nine months ended September 30, 2016 was $352,475. Other income (expense) mainly consists of interest income, interest expenses, other income, dividend income and loss on disposal of property, plant and equipment. Compared with the nine months ended September 30, 2016, net other income increased due to the fluctuation of the exchange rate and interest income.

37

Income tax expense

For the nine months ended September 30, 2017, the income tax expense was $2,345,147, increased by $1,009,816, or 76%, compared with $1,335,331 for the nine months ended September 30, 2016. The increase was mainly due to the increased income before income tax for the nine months ended September 30, 2017 compared to that for the nine months ended September 30, 2016.

The Company’s subsidiaries in Taiwan are governed by the Income Tax Law of Taiwan, and are generally subject to tax at 17% on income reported in the statutory financial statements after appropriate adjustments. In addition, the Income Tax Law of Taiwan provides that a company is taxed an additional 10% on any undistributed earnings to its shareholders.

CU WFOE and the CAE in the PRC are governed by the Income Tax Law of the PRC concerning the private enterprises, which are generally subject to tax at 25% on income reported in the statutory financial statements after appropriated adjustments, except for Jiangsu. For Jiangsu, according to the requirement of local tax authorities, the tax basis is deemed as 10% of total revenue, instead of net income.

The Company’s subsidiaries in Hong Kong are governed by the Inland Revenue Ordinance Tax Law of Hong Kong, and are generally subject to a profits tax at the rate of 16.5% on the estimated assessable profits.

Liquidity and Capital Resources

The following table represents a comparison of the net cash provided by operating activities, net cash used in investing activities and net cash provided by (used in) financing activities for the nine months ended September 30, 2017 and 2016:

	Nine Months Ended September 30,
	2017			2016			Change			Percent
Net cash provided by operating activities	$	6,137,729		$	4,380,800			1,756,929			40	%
Net cash used in investing activities		(16,065,111	)		(29,919	)		(16,035,192	)		53595	%
Net cash provided by (used in) financing activities		261,308			(387,538	)		648,846			-167	%

Operating activities

Net cash provided by operating activities during the nine months ended September 30, 2017 was $6,137,729, significantly increased in comparison with $4,380,800 net cash provided by operating activities during nine months ended September 30, 2016. The increase was mainly due to the increase in net income.

Investing activities

Net cash used in investing activities was $16,065,111 during the nine months ended September 30, 2017, which is mainly due to net cash outflows from purchase of structured deposit, time deposits and marketable securities during the period. The net cash used in investing activities was $29,919 for the nine months ended September 30, 2016, which is mainly due to the net cash outflows from purchase of time deposits, property, plant and equipment and intangible assets during the period, which outweighed the maturities of time deposits.

Financing activities

Net cash provided by financing activities was $261,308 during the nine months ended September 30, 2017, which is the result of proceeds from the Company’s related party borrowings. The net cash used in financing activities was $387,538 for the nine months ended September 30, 2016, which is the result of repayment for the borrowings from the Company’s related parties and third parties.

38

Related Party Loan and Loans to Unrelated Third Parties

Anhou Registered Capital Increase

On April 27, 2013, the China Insurance Regulatory Commission (“CIRC”) issued the Decision on Revising the Provisions of the Supervision and Administration of Specialized Insurance Agencies (the “Decision on Revising the Agency Provisions”), pursuant to which, CIRC mandated any insurance agency established subsequent to the Decision on Revising the Agency Provisions to meet a minimum registered capital requirement of RMB50 million (approximately $8 million). On May 16, 2013, CIRC issued Notice for Further Clarification on Related Issues of Access to Professional Insurance Intermediary Market (the “Notice”), pursuant to which, professional insurance agencies established prior to the issuance of the Decision on Revising the Agency Provisions, with registered capital less than RMB50 million (approximately $8 million) can continue to operate its existing business within the provinces where they have a registered office or branch office, but shall not set up any new branches in any provinces where it has no registered office or a branch office.

Prior to the capital increase, Anhou, a professional insurance agency with a PRC nationwide license, used to have a registered capital of RMB10 million (approximately $1.6 million). The branch offices of Anhou currently were all in Henan province. To better implement its expansion strategies, Anhou intended to increase its registered capital to RMB50 million (approximately $8 million) to meet the requirement of CIRC so that it can set up new branches in any province beyond its current operations in the PRC.

On June 9, 2013, AHFL entered into a Loan Agreement (the “Company Loan Agreement”) with ZLI Holdings, its wholly-owned Hong Kong subsidiary.

Under the Company Loan Agreement, AHFL agreed to provide a loan to ZLI Holdings with the principal amount equal to the US Dollar equivalent of RMB40,000,000 ($6,389,925). The term for such was ten years which could be extended upon the agreement of the parties. The amount of such loan was remitted to the account of ZLI Holdings on August 30, 2013.

In August 2013, ZLI Holdings entered into the Investor Loan Agreements with the following unrelated parties: Able Capital Holding Co., Ltd., a limited liability company established and registered in Hong Kong, Mr. Chen Li and Ms. Yue Jing, both PRC citizens (collectively, the “Investor Borrowers”).

Due to certain restrictions on direct foreign investment in insurance agency business under current PRC legal regime, Anhou had sought certain investments made by the Investor Borrowers and they may need funds through individual loans. Upon the completion of the contemplated increase of registered capital of Anhou, each Investor Borrower shall, or cause their designated persons to, enter into the Variable Interest Entities Agreement with CU WFOE, Anhou and other parties so as to consolidate any additional VIE interest generated from the said registered capital increase into the Company. 

On November 17, 2016, Li Chen transferred his interests in Anhou to Chunyan Lu for an aggregate consideration of RMB3 million.

Under the Investor Loan Agreements, the Investor Borrowers loaned cash from ZLI Holdings for their investment in Anhou and ZLI Holdings agreed to provide certain loans to each of the Investor Borrowers with an aggregate principal amount equal to the US Dollar equivalent of RMB40,000,000 ($6,389,925). The term for such loans was ten years which could be extended upon the agreement of the parties. Pursuant to the Investor Loan Agreements, each of the Investor Borrowers covenants to enter into certain Variable Interest Entities Agreements with Anhou, CU WFOE and certain existing shareholders of Anhou. The proceeds received from the said loans by the Investor Borrowers shall be solely used to increase the registered capital of Anhou, and ZLI Holdings may determine the repayment methods including transferring of the Investor Borrowers’ corresponding registered capital in Anhou or through other manner as full payment of the loans subject to terms and conditions therein in the event that the Investor Borrowers fail to repay the loan in currency to ZLI Holdings.

39

The specific amounts loaned to the Investor Borrowers were as follows:

Able Capital Holding Co., Ltd.: RMB29,500,000 ($4,712,570)

Ms. Lu: RMB3,000,000 ($479,244)

Ms. Yue: RMB7,500,000 ($1,198,111)

On October 20, 2013, the Investor Borrowers, through certain nominees, increased Anhou’s registered capital by RMB 40 million ($6,389,925).

Loan Receivable

On October 24, 2016, our Company entered into a loan agreement with a third party, RFL, which was incorporated under the laws of Samoa. We provided a short-term loan amount of NTD 48,000,000 ($1,486,846) to RFL. The short-term loan bears an interest rate of 4.5% per annum and the principal and interest are due on April 23, 2017. On April 21, 2017, the Company and RFL entered a supplemental agreement to extend the loan to October 23, 2017. As of September 30, 2017, the outstanding balance of the loan receivable is NTD44,790,360($1,477,060). On November 1 and November 2, 2017, the Company received the interest payment of this loan amount of NTD 300,000 (approximately $9,800) and $23,832, respectively. The management has evaluated RFL's business operation and ability to repay the loan in the future and determine that RFL will be able to repay the loan per newly negotiated terms and assessed that there is no impairment loss on the loan. Therefore, the Company is willing to extend the payment period of RFL loan.

Due to related parties 

The related parties listed below loaned money to the Company for working capital. Due to related parties consisted of the following as of September 30, 2017 and December 31, 2016:

	September 30, 2017		December 31, 2016
Due to Mr. Mao (CEO of the Company)	$	401,775	$	361,379
Due to Ms. Lu (Shareholder of Law Anhou)		225,411		-
Due to Xude Investment (Owned by Mr. ChwanHau Li)		-		32,374
Due to Mr. Zhu (Legal Representative of Jiangsu)		2,081		1,994
Due to Yuli Broker (Owned by Ms. Lee)		141		265
Due to Yuli Investment (Owned by Ms. Lee)		141		265
Due to I Health Management Corp*		17,313		3,724
Total	$	646,862	$	400,001

*25% of I Health Management Corp’s shares are owned by Multiple Capital Enterprise. 24% of Multiple Capital Enterprise’s shares are owned by the Company’s management level 

The loan due to related parties bore no interest and were payable on demand.

Convertible bonds

On June 23, 2016, the Company has issued two units of its convertible bonds with an aggregate principal amount of $200,000 to a non-US person and the value of the embedded derivatives liabilities is trivial. As of September 30, 2017 and December 31, 2016, the Company has an outstanding principal balance of $200,000 of convertible bonds. Total interest expense was $3,000 and $9,000 for the three and nine months ended September 30, 2017.

Long-term loan

	September 30, 2017		December 31, 2016
Loan B, interest at 8%, maturity date May 15, 2019	$	150,274	$	144,015
Loan C, interest at 8%, maturity date July 20, 2019		115,711		110,892
Total long-term loans	$	265,985	$	254,907

40

On May 15, 2016, the Company’s contractually controlled affiliate in PRC, Law Anhou Insurance Agency Co., Ltd (“Anhou” or “Law Anhou”), entered into a loan agreement (“Loan B”) with a third party. The long-term Loan Agreement provided for a $150,274 loan to the Company. Loan B bears an interest rate of 8% per annum and interest is payable annually. The principal and the interest will be due on May 15, 2019.

On July 20, 2016, Anhou entered into a loan agreement (“Loan C”) with a third party. The long-term Loan Agreement provided for a $115,711 loan to the Company. Loan C bears an interest rate of 8% per annum and interest is payable annually. The principal and the interest will be due on July 20, 2019.

The total interest expense for both Loan B and Loan C was $5,293 and $15,562 for the three and nine months ended September 30, 2017.

Contractual Obligations

Operating Leases

The Company has operating leases for its offices. Rental expenses for the three months ended September 30, 2017 and 2016 were $595,277 and $526,390, respectively. Rental expenses for the nine months ended September 30, 2017 and 2016 were $1,832,335 and $1,557,725, respectively. As of September 30, 2017, total future minimum annual lease payments under operating leases were as follows, by years:

Twelve months ending September 30, 2018	$	2,049,071
Twelve months ending September 30, 2019		1,166,015
Twelve months ending September 30, 2020		245,873
Twelve months ending September 30, 2021		55,088
Twelve months ending September 30, 2022		17,687
Thereafter		-
Total	$	3,553,734

AHFL Acquisition Agreement

The Company conducts all of its Taiwanese operations indirectly through its subsidiary AHFL and the revenue from such Taiwanese operations represented approximately 90% of our total revenue in our consolidated financial statements for the year ended December 31, 2015 and the quarter ended June 30, 2016, and such operations were also the source of all of our profits in 2015. On February 17, 2016, the Company and the selling shareholders of AHFL entered into a third Amendment to the AHFL Acquisition Agreement (the “Third Amendment”), pursuant to which, on or prior to June 30, 2016, (i) the Company is committed to complete the listing of the Company’s shares in a major capital market, where the net proceeds raised through such public offering financing shall be at least US$10,000,000; (ii) the Company is committed to distribute the cash payment in the amount of NTD22.5 million (US$312,617), on a pro rata basis, to the selling shareholders of AHFL and issue 5 million common shares to its selected employees pursuant to its employee stock/option plan, or any alternative plan mutually accepted by the Company and such selling shareholders; and (iii) failure to timely complete either of the above-mentioned criteria shall be deemed as a material breach of the Company under Article 8 of the Acquisition Agreement, whereby the non-breaching party shall be entitled to terminate the Acquisition Agreement and unwind the Acquisition of AHFL by CUIS and restore the status quo of the Company and the selling shareholders (the “Selling Shareholders”) as if the said acquisition had never happened.

On August 8, 2016, the Company and the selling shareholders of AHFL entered into a fourth Amendment to the Acquisition Agreement (the “Fourth Amendment”), pursuant to which: (A) the Third Amendment is terminated with immediate effect on August 8, 2016, and (B) Sections 2.2(iii) and (iv) of the Acquisition Agreement are amended and restated so that the Company is now obligated to: (iii) pay NTD15 million (USD475,406) to the Selling Shareholders in the amounts set forth opposite each Selling Shareholder’s name on Schedule I on or prior to March 31, 2017 or at any other time or in any other manner otherwise agreed upon by and among the parties; and (iv) pay NTD4,830,514 (USD153,097) to the Selling Shareholders in the amounts set forth opposite each Selling Shareholder’s name on Schedule I on July 21, 2016. Unless amended by the Fourth Amendment, any other provision of the Acquisition Agreement shall remain unchanged. On July 21, 2016, the Company arranged for the payment of NTD4,830,514 (USD153,097) to the Selling Shareholders. As a result, the former shareholders of AHFL no longer have the right to unwind the acquisition of AHFL by the Company. On March 12, 2017, the Company and the selling shareholders of AHFL entered into a fifth Amendment to the Acquisition Agreement (the “Fifth Amendment”), pursuant to which, on or prior to March 31, 2019, the Company agreed to distribute the cash payment in the amount of NTD15 million.

41

Engagement Agreement with Ms. Chao

On May 10, 2016, Law Broker entered into the Engagement Agreement with Ms. Chao, pursuant to which she acts as the general manager of Law Broker for a term from December 29, 2015 to December 28, 2018. Ms. Chao’s primary responsibilities are to assist Law Broker in operating and managing insurance agency business. According to the Engagement Agreement, Ms. Chao’s bonus plans include: 1) execution, 2) long-term service fees, 3) pension and 4) non-competition, and the payment of such bonuses will only occur upon satisfaction of certain condition and subject to the terms therein, among which, Ms. Chao acts as the general manager or equivalent position of Law Broker for at least 3 years. 

On May 14, 2016, Law Broker and Ms. Chao entered into a supplementary agreement (“Supplementary Agreement”) to postpone her pension vesting date to December 29, 2016. Though Law Broker expects that none of the above-mentioned bonuses need to be paid prior to May 2019, it has recorded long-term liabilities representing the corresponding portion of such bonuses accrued. On March 13, 2017, Law Broker and Ms. Chao entered into an engagement agreement, which is the amendment to Engagement Agreement dated May 10, 2016 to specify 1) Ms. Chao’s pension calculation assumption and start date, and 2) the non-competition provision start date. As of September 30, 2017 and December 31, 2016, the balance of such accrued long-term liabilities was $175,191 and $77,440, respectively.

Lease Agreements

On July 1, 2016, the Company entered into a lease agreement with Yuli Broker to lease its Nan-King East Road office space in Taipei City. The lease term was for one year commencing on July 1, 2016 and ending on June 30, 2017, with an annual base rent approximately of $590 (NTD18,000). On June 30, 2017, this lease agreement was extended automatically to June 30, 2018. For the three and nine months ended September 30, 2017, rent income were $141 and $421, respectively.

On July 1, 2016, the Company entered into a lease agreement with Yuli Investment to lease its Nan-King East Road office space in Taipei City. The lease term was for one year commencing on July 1, 2016 and ending on June 30, 2017, with an annual base rent approximately of $590 (NTD18,000). On June 30, 2017, this lease agreement was extended automatically to June 30, 2018. For the three and nine months ended September 30, 2017, rent income were $141 and $421, respectively.

Advisory Agreements

On May 2, 2016, the Company entered into an advisory agreement with I Health. Pursuant to the Advisory Agreement, I Health provided 10,000 Taiwan citizen’s health information to the Company for its new insurance product during May 2, 2016 to May 1, 2017. The total advisory fee was approximately $42,000 (NTD1,275,000). For the nine months ended September 30, 2017, The Company had cost of revenue related to I Health amount of $13,269.

On December 7, 2016, the Company entered into an advisory agreement with Fuchang Li (“Mr. Li,” the Director of the Company). Pursuant to this Advisory Agreement, Mr. Li provided investment consulting to the Company from December 7, 2016 to December 6, 2017. The total advisory fee was approximately $58,000 (NTD1,800,000). The Company had general and administrative expense related to this advisory agreement amount of $13,619 and $42,998, respectively, for the three and nine months ended September 30, 2017.

Consulting Agreement

On November 1, 2016, the Company entered into a consulting agreement with Apex Biz Solution Limited. (“Apex,” was formerly known as Prime Technology Corp.), which has one of the same directors as Prime Financial Asia Ltd. Pursuant to this consulting agreement, the Company provided administrative operation consulting service to Apex from November 1, 2016 to December 31, 2021. As of and for the nine months ended September 30, 2017, the Company had account receivable and revenue amount of $17,274 and $33,874, respectively.

Off Balance Sheet Arrangements

We have not participated in any transactions with unconsolidated entities, such as special purpose entities, which would have been established for the purpose of facilitating off-balance sheet arrangements.

42

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

We are exposed to market risk in the ordinary course of our business. Market risk represents the risk of loss that may impact our financial position due to adverse changes in financial market prices and rates. Our market risk exposure is primarily a result of fluctuations in interest rates and foreign currency exchange rates.

Interest Rate Sensitivity

As of September 30, 2017, we had cash of USD approximately $10,000, cash of RMB8,227,876 (equivalent to approximately $1,236,000), cash of HKD417,620(equivalent to approximately $53,000), and cash of NTD314,260,180 (equivalent to approximately $10,363,000). We hold our cash for working capital purposes. Declines in interest rates would reduce future interest income. For the nine months ended September 30, 2017, the effect of a hypothetical 10% increase or decrease in overall interest rates would not have had a material impact on our interest income.

Foreign Currency Risk

The functional currency for the subsidiaries in Taiwan is NTD, the functional currency for the subsidiaries in Hong Kong is HKD and the functional currency for the subsidiaries and CAE in PRC is RMB. The financial statements of the Company are in USD. The fluctuation of NTD and RMB will affect our operating results expressed in USD. The Company reviews its foreign currency exposures. To date, we have not entered into any hedging arrangements with respect to foreign currency risk or other derivative financial instruments. The management does not consider its present foreign exchange risk to be significant.

43

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

As required by SEC Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of September 30, 2017. Based on that evaluation, our management, including the Chief Executive Officer and Chief Financial Officer, concluded that as of September 30, 2017, our disclosure controls and procedures were effective to ensure the information required to be disclosed by an issuer in the reports it files or submits under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms relating to us, and was accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure. There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives.   

Changes in internal control over financial reporting

During the nine months ended September 30, 2017, there were no changes in our internal control over financial reporting identified in connection with the evaluation performed during the fiscal quarter covered by this report that has materially affected, or is reasonably likely to materially affect our internal control over financial reporting.

44

PART II.  OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

From time to time, we may become involved in various lawsuits and legal proceedings, which arise, in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. We are currently not aware of any such legal proceedings or claims that we believe will have a material adverse effect on our business, financial condition or operating results.

ITEM 1A. RISK FACTORS.

There have been no material changes from the risk factors disclosed in our annual report on Form 10-K for the fiscal year period ended December 31, 2016.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION.

Resignation of Officers

On August 30, October 2 and November 3, 2017, Mr. Te Yun Chiang, Mr. Wen Yuan Hsu and Mr. Tung-Chi Hsieh resigned as Chief Technology Officer, Chief Marketing Officer and Chief Operating Officer of the Company, respectively.

Though Mr. Chiang, Mr. Hsu and Mr. Hsieh held the titles of Chief Operating Officer, Chief Marketing Officer and Chief Technology Officer of the Company, respectively, before their resignations, they had not performed executive functions in the Company’s overall operations that may have been indicated by their respective titles. Their resignations will avoid ambiguity with respect to their duties and roles in the Company’s overall operations. There is no disagreement between the Company on the one hand, and Mr. Chiang, Mr. Hsieh and Mr. Hsu on the other hand, relating to the Company’s operations, policies and practices.

Subsequent to the resignations, Mr. Chiang will continue serving as the Manager of Jiangsu Law Insurance Brokers Co., Ltd. (“Jiangsu Law”), Mr. Hsieh will continue serving as the Division Chief of Management of Jiangsu Law, and Mr. Hsu will continue serving as the General Manager of Sichuan Kangzhuang Insurance Agency Co., Ltd., all of which are the Company’s CAEs in the PRC. In view of the continuous expansion of these CAEs, Mr. Chiang, Mr. Hsieh and Mr. Hsu and the Company have agreed they should dedicate substantially all of their time and efforts to serve their managerial functions in such CAEs.

45

ITEM 6. EXHIBITS

Exhibit
Number	Description of Exhibit
31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934
31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934
32.1*	Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2*	Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

*The certifications attached as Exhibits 32.1 and 32.2 accompany this quarterly report on Form 10-Q pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and shall not be deemed “filed” by the Registrant for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

46

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	China United Insurance Service, Inc.
Date: November 9, 2017	By:	/s/ Yi Hsiao Mao
	Name:	Yi Hsiao Mao
	Its:	Chief Executive Officer
		(Principal Executive Officer)
Date: November 9, 2017	By:	/s/ Yung Chi Chuang
	Name:	Yung Chi Chuang
	Its:	Chief Financial Officer
		(Principal Financial and Accounting Officer)

47

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

I, Yi Hsiao Mao, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of China United Insurance Service, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's Board of Directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 9, 2017	/s/ Yi Hsiao Mao
	Yi Hsiao Mao
	Chief Executive Officer
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

Certification of Chief Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

I, Yung Chi Chuang, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of China United Insurance Service, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's Board of Directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 9, 2017	/s/ Yung Chi Chuang
	Yung Chi Chuang
	Chief Financial Officer
	(Principal Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(SUBSECTIONS (a) AND (b) OF SECTION 1350, CHAPTER 63 OF TITLE 18,

UNITED STATES CODE)

Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of Title 18, United States Code), the undersigned officer of China United Insurance Service, Inc. (the “Company”), does hereby certify with respect to the Quarterly Report of the Company on Form 10-Q for the period ended September 30, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 9, 2017	/s/ Yi Hsiao Mao
	Yi Hsiao Mao
	Chief Executive Officer
	(Principal Executive Officer)

EX-32.2

Exhibit 32.2

CERTIFICATION

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(SUBSECTIONS (a) AND (b) OF SECTION 1350, CHAPTER 63 OF TITLE 18,

UNITED STATES CODE)

Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of Title 18, United States Code), the undersigned officer of China United Insurance Service, Inc. (the “Company”), does hereby certify with respect to the Quarterly Report of the Company on Form 10-Q for the period ended September 30, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:  November 9, 2017	/s/ Yung Chi Chuang
	Yung Chi Chuang
	Chief Financial Officer
	(Principal Accounting Officer)

XML

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 09, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Entity Registrant Name	China United Insurance Service, Inc.
Entity Central Index Key	0001512927
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Trading Symbol	CUII
Entity Common Stock, Shares Outstanding		29,452,669

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 11,663,265	$ 20,169,455
Time deposits	21,475,432	5,352,347
Marketable securities	32,867	2,426,870
Structured deposit	1,205,162	0
Accounts receivable, net	7,217,051	15,774,159
Other current assets	2,274,353	1,890,551
Total current assets	43,868,130	45,613,382
Property, plant and equipment, net	927,062	926,905
Intangible assets	747,610	784,219
Goodwill	2,071,491	2,071,491
Long-term investments	1,368,950	1,285,064
Other assets	2,149,619	726,482
TOTAL ASSETS	51,132,862	51,407,543
Current liabilities
Tax payable	2,356,626	2,249,869
Convertible bonds	200,000	0
Due to related parties	646,862	400,001
Other current liabilities	10,420,828	18,639,909
Total current liabilities	13,624,316	21,289,779
Convertible bonds - noncurrent	0	200,000
Long-term loans	265,985	254,907
Long-term liabilities	4,898,335	5,315,327
TOTAL LIABILITIES	18,788,636	27,060,013
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock, par value $0.00001, 10,000,000 authorized, 1,000,000 issued and outstanding	10	10
Common stock, par value $0.00001, 100,000,000 authorized, 29,452,669 issued and outstanding	295	295
Additional paid-in capital	8,190,449	8,157,512
Statutory reserves	5,054,720	3,799,585
Retained earnings	6,663,807	3,286,562
Accumulated other comprehensive gain/(loss)	168,008	(667,976)
Stockholders’ equity attribute to parent’s shareholders	20,077,289	14,575,988
Noncontrolling interests	12,266,937	9,771,542
TOTAL STOCKHOLDERS’ EQUITY	32,344,226	24,347,530
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 51,132,862	$ 51,407,543

XML

CONDENSED CONSOLIDATED BALANCE SHEETS [PARENTHETICAL] - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Preferred stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred Stock, shares issued	1,000,000	1,000,000
Preferred Stock, shares outstanding	1,000,000	1,000,000
Common stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	29,452,669	29,452,669
Common stock, shares outstanding	29,452,669	29,452,669

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME / (LOSS) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue	$ 16,210,334	$ 14,951,345	$ 50,084,684	$ 43,289,113
Cost of revenue	9,071,624	9,335,735	29,746,059	27,986,021
Gross profit	$ 7,138,710	$ 5,615,610	$ 20,338,625	$ 15,303,092
Gross profit percentage	0.00%	0.00%	0.00%	0.00%
Operating expenses:
Selling	$ 783,120	$ 630,255	$ 1,481,423	$ 2,094,965
General and administrative	3,708,037	3,359,674	10,714,341	9,336,015
Total operating expenses	4,491,157	3,989,929	12,195,764	11,430,980
Income from operations	2,647,553	1,625,681	8,142,861	3,872,112
Other income (expenses):
Interest income	79,299	31,113	246,559	137,222
Interest expenses	(8,293)	(1,601)	(24,562)	(11,165)
Dividend income	1,391	3,633	331,140	272,522
Other - net	89,065	21,248	136,113	(46,104)
Total other income (expenses)	161,462	54,393	689,250	352,475
Income before income tax	2,809,015	1,680,074	8,832,111	4,224,587
Income tax expense	831,878	456,828	2,345,147	1,335,331
Net income	1,977,137	1,223,246	6,486,964	2,889,256
Net income attributable to the noncontrolling interests	669,490	465,501	1,854,584	1,301,226
Net income attributable to parent’s shareholders	1,307,647	757,745	4,632,380	1,588,030
Other comprehensive items
Foreign currency translation gain	48,149	260,981	793,090	378,217
Other	175	0	42,894	(1,593)
Other comprehensive income attributable to parent’s shareholders	48,324	260,981	835,984	376,624
Other comprehensive items attributable to noncontrolling interests	23,405	249,160	640,811	408,827
Comprehensive income attributable to parent’s shareholders	1,355,971	1,018,726	5,468,364	1,964,654
Comprehensive income attributable to noncontrolling interests	$ 692,895	$ 714,661	$ 2,495,395	$ 1,710,053
Weighted average shares outstanding:
Basic	29,452,669	29,452,669	29,452,669	29,452,669
Diluted	30,521,407	30,478,667	30,521,407	30,462,097
Net income per share attributable to parent’s shareholder:
Basic	$ 0.044	$ 0.026	$ 0.157	$ 0.054
Diluted	$ 0.043	$ 0.025	$ 0.152	$ 0.052

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net income	$ 6,486,964	$ 2,889,256
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	410,593	455,383
Amortization of bond premium	193	0
Gain on settlement of debt	0	(83,425)
Gain on valuation of financial assets	1,372,468	(10,868)
Loss on disposals of property, plant and equipment	75,121	25,568
Deferred income tax	(20,030)	(65,235)
Changes in operating assets and liabilities:
Accounts receivable	9,541,161	4,085,141
Other current assets	(268,864)	450,406
Other assets	(1,331,414)	66,823
Tax payable	(35,858)	(112,098)
Other current liabilities	(9,339,583)	(3,943,730)
Long-term liabilities	(753,022)	623,579
Net cash provided by operating activities	6,137,729	4,380,800
Cash flows from investing activities:
Repayments to pervious shareholders	0	(150,959)
Purchases of structured deposit	(1,292,441)	0
Purchases of time deposits	(24,572,262)	(7,095,147)
Proceeds from maturities of time deposits	8,888,669	8,025,394
Purchase of marketable securities	(6,231,364)	0
Proceeds from disposals of marketable securities	7,488,976	0
Purchase of property, plant and equipment	(257,944)	(371,913)
Purchase of intangible assets	(88,745)	(437,294)
Net cash used in investing activities	(16,065,111)	(29,919)
Cash flows from financing activities:
Proceeds from related party borrowings	261,589	68,431
Repayment to related parties	(281)	(623,507)
Payment to noncontrolling interest as reduction of cash capital	0	(77,043)
Proceeds from third party borrowings	0	469,028
Repayment to loans	0	(224,447)
Net cash provided by (used in) financing activities	261,308	(387,538)
Foreign currency translation	1,159,884	596,891
Net increase (decrease) in cash and cash equivalents	(8,506,190)	4,560,234
Cash and cash equivalents, beginning balance	20,169,455	13,083,357
Cash and cash equivalents, ending balance	11,663,265	17,643,591
SUPPLEMENTARY DISCLOSURE:
Interest paid	29,806	2,324
Income tax paid	2,298,197	1,549,580
SUPPLEMENTAL DISCLOSURES OF CASH FLOW FOR NON-CASH TRANSACTION:
Debt forgiveness - related parties	$ 32,937	$ 0

XML

ORGANIZATION

9 Months Ended

Sep. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

NOTE 1 – ORGANIZATION

China United Insurance Service, Inc. (“China United,” “CUIS” or the “Company”) is a Delaware corporation organized on June 4, 2010 by Yi Hsiao Mao, a Taiwanese citizen, as a listing vehicle for both ZLI Holdings Limited (“ZLI Holdings”) and Action Holdings Financial Limited (“AHFL”), which is currently quoted on the United States Over the Counter Bulletin Board.

The corporate structure as of September 30, 2017 was as follows:

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The unaudited accompanying condensed consolidated financial statements include the accounts of China United and its subsidiaries as shown in the organization structure in Note 1. All intercompany transactions and balances have been eliminated in consolidation.

Basis of Presentation

The unaudited condensed consolidated financial statements presented herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, the instructions to Form 10-Q and Regulation S-X. Accordingly, the financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments, including normal recurring adjustments, considered necessary for a fair presentation of the financial statements have been included. Operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ended December 31, 2017.  

These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2016, which were included in the Company’s 2016 Annual Report on Form 10-K. The accompanying condensed consolidated balance sheet as of December 31, 2016, has been derived from the Company’s audited consolidated financial statements as of that date.

Reclassifications

Certain reclassifications have been made to the prior periods’ financial statements and notes to conform to the current period’s presentation. Such reclassifications have no effect on net income as previously reported. Please see Note 23, Reclassifications.

Foreign Currency Translations

The Company’s financial statements are presented in U.S. dollars ($), which is the Company’s reporting and functional currency. The functional currencies of the Company’s subsidiaries are NTD, RMB and HKD. Gains and losses resulting from the translation of foreign currency transactions are reflected in the consolidated statements of operations and other comprehensive income (loss). Monetary assets and liabilities denominated in foreign currency are translated at the functional currency rate of exchange prevailing at the balance sheet date. Any differences are taken as a gain or loss on foreign currency translation in the statements of operations. 

In accordance with ASC 830, Foreign Currency Matters, the Company translates the assets and liabilities into U.S. dollars using the rate of exchange prevailing at the balance sheet date and the statements of operations and cash flows are translated at an average rate during the reporting period. Adjustments resulting from the translation from NTD, RMB and HKD into U.S. dollars are recorded in stockholders’ equity as part of accumulated other comprehensive income. The exchange rates used for interim financial statements are as follows:

	Average Exchange Rate for the Nine Months Ended September 30,
	2017		2016
New Taiwan dollar (NTD)	NTD	30.505166	NTD	32.736000
China yuan (RMB)	RMB	6.805734	RMB	6.579240
Hong Kong dollar (HKD)	HKD	7.787013	HKD	7.763280
United States dollar ($)	$	1.000000	$	1.000000

	Exchange Rate at
	September 30, 2017		December 31, 2016
New Taiwan dollar (NTD)	NTD	30.324000	NTD	32.283100
China yuan (RMB)	RMB	6.654500	RMB	6.943700
Hong Kong dollar (HKD)	HKD	7.811000	HKD	7.754340
United States dollar ($)	$	1.000000	$	1.000000

Fair Values of Financial Instruments

Accounting Standards Codification (ASC) 820, Fair Value Measurement, defines fair value as the price at which an asset could be exchanged or a liability transferred in an orderly transaction between knowledgeable, willing parties in the principal or most advantageous market for the asset or liability. Where available, fair value is based on observable market prices or derived from such prices. Where observable prices or inputs are not available, valuation models are applied which may involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity. See Note 24, Fair Value Measurement.

Concentration of Risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. As of September 30, 2017, approximately $1,467,000 of the Company’s cash and cash equivalents, time deposits, registered capital deposit and restricted cash held by financial institutions was insured, and the remaining balance of approximately $32,808,000 was not insured.

Three major insurance companies accounted for more than 10% of the Company’s total revenue for the three months ended of September 30, 2017 and 2016. Revenue from these insurance companies were set out as below:

	Three months ended September 30,
	2017					2016
			% of Total					% of Total
	Amount		Revenue			Amount		Revenue
Farglory Life Insurance Co., Ltd.	$	4,275,654		26	%	$	5,291,779		35	%
Taiwan Life Insurance Co., Ltd. (*)		1,911,978		12	%		1,493,069		10	%
TransGlobe Life Insurance Inc.		1,882,461		12	%		(**)		(**)

(*)	Taiwan Life Insurance Co., Ltd. was formerly known as CTBC Life Insurance Co., Ltd.
(**)	Revenue for the three months ended September 30, 2016 had not exceeded 10% or more of the Company’s consolidated revenue of the Company.

For the nine months ended of September 30, 2017 and 2016, the Company’s revenue received from the following companies were set out as below:

	Nine months ended September 30,
	2017					2016
			% of Total					% of Total
	Amount		Revenue			Amount		Revenue
Farglory Life Insurance Co., Ltd.	$	13,019,656		26	%	$	13,969,672		32	%
Taiwan Life Insurance Co., Ltd. (*)		5,881,228		12	%		4,813,813		11	%
TransGlobe Life Insurance Inc.		5,127,561		10	%		(**)		(**)
Fubon Life Insurance Co., Ltd.		(***)		(***)			4,342,377		10	%

(*)	Taiwan Life Insurance Co., Ltd. was formerly known as CTBC Life Insurance Co., Ltd.
(**)	Revenue for the nine months ended September 30, 2016 had not exceeded 10% or more of the Company’s consolidated revenue of the Company.
(***)	Revenue for the nine months ended September 30, 2017 had not exceeded 10% or more of the Company’s consolidated revenue of the Company.

As of September 30, 2017 and December 31, 2016, the Company’s accounts receivable from the following companies were set out as below:

	September 30, 2017					December 31, 2016
			% of Total					% of Total
			Accounts					Accounts
	Amount		Receivable			Amount		Receivable
Farglory Life Insurance Co., Ltd.	$	2,450,793		34	%	$	6,503,843		41	%
Taiwan Life Insurance Co., Ltd (*)		(**)		(**)			1,973,410		13	%
TransGlobe Life Insurance Inc.		801,832		11	%		(**)		(**)
Fubon Life Insurance Co., Ltd		(**)		(**)			1,660,685		11	%

(*) Taiwan Life Insurance Co., Ltd. was formerly known as CTBC Life Insurance Co., Ltd.

(**) Accounts receivable as of September 30, 2017 or December 31, 2016 had not exceeded 10% or more of the consolidated accounts receivable.

With respect to accounts receivable, the Company generally does not have any collateral and does not have any allowance for doubtful accounts.

The Company’s operations are in the PRC, Taiwan and Hong Kong. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic, and legal environments in the PRC, Taiwan and Hong Kong, the foreign currency exchange and the state of each regions. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, Taiwan and Hong Kong, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, and rates and methods of taxation, among other things.

Recent Accounting Pronouncements

In January 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” which amends the guidance in U.S. GAAP on the classification and measurement of financial instruments. Changes to the current guidance primarily affect the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the ASU clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The new standard is effective for fiscal years and interim periods beginning after December 15, 2017, and upon adoption, an entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet at the beginning of the first reporting period in which the guidance is effective. Early adoption is not permitted except for the provision to record fair value changes for financial liabilities under the fair value option resulting from instrument-specific credit risk in other comprehensive income. The Company is currently evaluating the impact of adopting this guidance.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The guidance in ASU No. 2016-02 supersedes the lease recognition requirements in ASC Topic 840, Leases (Statement of Financial Accounting Standards No. 13). ASU 2016-02 requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases, along with additional qualitative and quantitative disclosures. ASU No. 2016-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the effect this standard will have on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-07, “Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting.” ASU 2016-07 eliminates the requirement for an investment that qualifies for the use of the equity method of accounting as a result of an increase in the level of ownership or degree of influence to adjust the investment, results of operations and retained earnings retrospectively. ASU 2016-07 will be effective prospectively for the Company for increases in the level of ownership interest or degree of influence that result in the adoption of the equity method that occur during or after the quarter ending December 31, 2017, with early adoption permitted. The impact of this guidance for the Company is dependent on any future increases in the level of ownership interest or degree of influence that result in the adoption of the equity method.

In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net).” ‘The amendments in this ASU are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations by amending certain existing illustrative examples and adding additional illustrative examples to assist in the application of the guidance. The effective date and transition of these amendments is the same as the effective date and transition of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” Public entities should apply the amendments in ASU No. 2014-09 for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein. The Company is currently in the process of evaluating the impact of the adoption of this accounting standards update on its consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments (Topic 230) to Statement of Cash Flows.” ASU No. 2016-15 clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows to reduce diversity in practice with respect to (i) debt prepayment or debt extinguishment costs, (ii) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, (iii) contingent consideration payments made after a business combination, (iv) proceeds from the settlement of insurance claims, (v) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, (vi) distributions received from equity method investees, (vii) beneficial interests in securitization transactions, and (viii) separately identifiable cash flows and application of the predominance principle. ASU No. 2016-15 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017, with early adoption permitted. The adoption of this update is not expected to have a significant impact on the Company’s consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash” (“ASU No. 2016-18”), which amends the current accounting guidance.” The amendments in this update require the amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU No. 2016-18 is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The adoption of ASU No. 2016-18 is not expected to have a material impact on the Company’s consolidated financial statements. 

In January 2017, the FASB issued ASU No. 2017-04 “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which eliminates Step 2 from the goodwill impairment test. Instead, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to the reporting unit. ASU No. 2017-04 is effective for annual or any interim goodwill tests in fiscal years beginning after December 15, 2019. The adoption is not expected to have a material impact on the Company’s consolidated financial statements of the Company.

In July 2017, the FASB issued ASU No. 2017-11, “Earnings Per Share (Topic 260) Distinguishing Liabilities from Equity (Topic 480) Derivatives and Hedging (Topic 815),” which addresses the complexity of accounting for certain financial instruments with down round features. Down round features are features of certain equity-linked instruments (or embedded features) that result in the strike price being reduced on the basis of the pricing of future equity offerings. Current accounting guidance creates cost and complexity for entities that issue financial instruments (such as warrants and convertible instruments) with down round features that require fair value measurement of the entire instrument or conversion option. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments in Part I of this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements.

In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815) Targeted Improvements to Accounting for Hedging Activities.” ASU 2017-12 refines and expands hedge accounting for both financial and commodity risks. This ASU creates more transparency around how economic results are presented, both on the face of the financial statements and in the footnotes. In addition, this ASU makes certain targeted improvements to simplify the application of hedge accounting guidance. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements.

In September 2017, the FASB issued ASU 2017-13, “Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842),” which provides additional implementation guidance on the previously issued ASU 2016-02 Leases (Topic 842). The revenue standard is effective for annual periods beginning after December 15, 2017. ASU 2016-02 requires a lessee to recognize assets and liabilities on the balance sheet for leases with lease terms greater than 12 months. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. Based on a preliminary assessment, the Company expects the adoption of this guidance to have a material impact on its assets and liabilities due to the recognition of right-of-use assets and lease liabilities on its consolidated balance sheet at the beginning of the earliest period presented. The Company is continuing its assessment, which may identify additional impacts this guidance will have on its consolidated financial statements and disclosures.

There were other updates recently issued. The management does not believe that other than disclosed above, the recently issued, but not yet adopted, accounting pronouncements will have a material impact on its financial position results of operations or cash flows.

Going Concern Assessment

The Company has assessed its ability to continue as a going concern for a period of one year from the date of the issuance of these financial statements. Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year from the financial statement issuance date. The Company determined that there are no conditions or events that raise substantial doubt about its ability to continue as a going concern as of the date of the issuance of these financial statements.

XML

CASH AND CASH EQUIVALENTS AND TIME DEPOSITS

9 Months Ended

Sep. 30, 2017

Cash And Cash Equivalents And Time Deposits [Abstract]

Cash And Cash Equivalents And Time Deposits Disclosure [Text Block]

NOTE 3 – CASH AND CASH EQUIVALENTS AND TIME DEPOSITS

 

Cash and cash equivalents and time deposits consisted of the following as of September 30, 2017 and December 31, 2016:

	September 30, 2017		December 31, 2016
Cash and cash equivalents:
Cash in bank and on hand	$	11,663,265	$	17,713,744
Bank time deposits (*)		-		2,455,711
		11,663,265		20,169,455
Bank time deposits (**)		21,475,432		5,352,347
Total cash and cash equivalents and time deposits	$	33,138,697	$	25,521,802

(*) With original maturities less than three months

(**) With original maturities over three months

The Company considers cash on hand, cash in bank, and bank time deposits with maturities of three months or less to be cash and cash equivalents.

XML

MARKETABLE SECURITIES

9 Months Ended

Sep. 30, 2017

Investments, Debt and Equity Securities [Abstract]

Cash, Cash Equivalents, and Marketable Securities [Text Block]

NOTE 4 – MARKETABLE SECURITIES

Marketable securities represent investment in equity securities of listed stocks and funds, which are classified as follows:

	September 30, 2017
			Gross
			Unrealized		Total
	Cost		Losses		Fair Value
Trading:
Funds	$	33,117	$	(250)	$	32,867
	$	33,117	$	(250)	$	32,867

	December 31, 2016
	Fair Value at		Gross
	December 31,		Unrealized		Total
	2015		Gains		Fair Value
Trading:
Stocks	$	28,863	$	9,900	$	38,763
Funds		2,340,219		47,888		2,388,107
	$	2,369,082	$	57,788	$	2,426,870

XML

STRUCTURED DEPOSIT

9 Months Ended

Sep. 30, 2017

Structured Deposit Disclosure [Abstract]

Structured Deposit Disclosure [Text Block]

NOTE 5 – STRUCTURED DEPOSIT 

On July 7, 2017, the Company entered into an agreement with Cathy United Bank to purchase a 185-days structured deposit in effective on July 7, 2017 and mature on January 8, 2018. Principal of the structured deposit is RMB 8,000,000 and the structured deposit with an embedded foreign exchange option linked to US Dollar to China Yuan offshore exchange rate (“USDCNH”). Strike price of the structured deposit is set as 7.3 USDCNH and the fixing date is on January 4, 2018. Yield rate will be at 4.1% per annum when the USDCNH is above or equal strike price on the fixing date, or at 3.9% per annum when blow.

	September 30, 2017
	Cost		Gross Unrealized Losses		Total Fair Value
Structured deposit	$	1,278,551	$	(73,389)	$	1,205,162
	$	1,278,551	$	(73,389)	$	1,205,162

XML

OTHER CURRENT ASSETS

9 Months Ended

Sep. 30, 2017

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Current Assets [Text Block]

NOTE 6 – OTHER CURRENT ASSETS

Other current assets consisted of the following as of September 30, 2017 and December 31, 2016:

	September 30, 2017		December 31, 2016
Loan receivable	$	1,477,060	$	1,486,846
Prepaid expenses		228,193		64,678
Prepaid rent and rent deposits		186,745		199,022
Other receivable		176,386		50,683
Refundable business tax		117,848		17,441
Deferred tax assets-current		58,041		59,233
Interest receivable		30,080		12,648
Total other current assets	$	2,274,353	$	1,890,551

On October 24, 2016, the Company entered into a loan agreement with third party, Rich Fountain Limited (“RFL”), which was incorporated under the laws of Samoa. The Company provided a short-term loan amount of NTD 48,000,000 ($1,486,846) to RFL. The short-term loan bears an interest rate of 4.5% per annum and the principal and interest are due on April 23, 2017. On April 21, 2017, the Company and RFL entered a supplemental agreement to extend the loan to October 23, 2017. As of September 30, 2017, the outstanding balance of the loan receivable is NTD44,790,360 ($1,477,060). On November 1 and November 2, 2017, the Company received the interest payment of this loan amount of NTD 300,000 (approximately $9,800) and $23,832, respectively. The management has evaluated RFL's business operation and ability to repay the loan in the future and determine that RFL will be able to repay the loan per newly negotiated terms and assessed that there is no impairment loss on the loan. Therefore, the Company is willing to extend the payment period of RFL loan.

XML

PROPERTY, PLANT AND EQUIPMENT, NET

9 Months Ended

Sep. 30, 2017

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

NOTE 7 – PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment consisted of the following as of September 30, 2017 and December 31, 2016:

	September 30, 2017		December 31, 2016
Office equipment	$	1,234,505	$	1,070,061
Office furniture		101,123		168,658
Leasehold improvements		733,225		581,964
Transportation equipment		139,226		132,344
Other equipment		89,868		87,302
Total		2,297,947		2,040,329
Less: accumulated depreciation		(1,370,885)		(1,113,424)
Total property, plant and equipment, net	$	927,062	$	926,905

Depreciation expense was $78,972 and $81,267 for the three months ended September 30, 2017 and 2016, respectively. Depreciation expense was $235,093 and $231,414 for the nine months ended September 30, 2017 and 2016, respectively.

XML

INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 8 – INTANGIBLE ASSETS

As of September 30, 2017 and December 31, 2016, the Company’s intangible assets consisted of the following:

	September 30, 2017		December 31, 2016
Software	$	1,686,544	$	1,500,339
Less: accumulated amortization		(938,934)		(716,120)
Total intangible assets	$	747,610	$	784,219

Estimated future intangible amortization as of September 30, 2017 is as follows:

Periods ending September 30,	Amount
2018	$	238,905
2019		214,913
2020		184,439
2021		90,116
2022		18,140
Thereafter		1,097
Total	$	747,610

Amortization expense was $59,533 and $71,328 for the three months ended September 30, 2017 and 2016, respectively. Amortization expense was $175,500 and $223,969 for the nine months ended September 30, 2017 and 2016, respectively.

XML

LONG-TERM INVESTMENTS

9 Months Ended

Sep. 30, 2017

Long Term Investment [Abstract]

Long Term Investment [Text Block]

NOTE 9 – LONG-TERM INVESTMENTS

As of September 30, 2017 and December 31, 2016, the Company’s long-term investments consisted of the following:

	September 30, 2017		December 31, 2016
Equity investment	$	1,267,475	$	1,190,558
Government bonds		101,475		94,506
Total	$	1,368,950	$	1,285,064

As of September 30, 2017 and December 31, 2016, the Company had the following equity investment:

					September 30,		December 31,
					2017		2016
Type	Investee	Ownership			Amount		Amount
Cost Method	Genius Insurance Broker Co., Ltd.		15.64	%	$	1,267,475	$	1,190,558

According to Taiwan Regulations Governing Deposit of Bond and Acquirement of Insurance by Insurance Agents, Insurance Brokers and Insurance Surveyors (“RGDBAI”) Article 3 requirement, Law Insurance Broker Co., Ltd. (“Law Broker”) is required to maintain a minimum of NTD3,000,000 ($98,932 and $92,928 as of September 30, 2017 and December 31, 2016, respectively) restricted balance in a separate account. RGDBAI Article 4 is required to deposited a minimum amount in the form of cash or book entry to government bond issued by the central government. Therefore, Law Broker used such amounts to purchase government bonds and has the right to trade such bonds with other debt or equity instruments.

	September 30, 2017
	Fair Value at		Gross		Fair Value at
	December 31,		Unrealized		September 30,
	2016		Gains		2017
Available-for-sale:
Government bonds		94,506		6,969		101,475
	$	94,506	$	6,969	$	101,475

	December 31, 2016
	Fair Value at		Gross		Fair Value at
	December 31,		Unrealized		December 31,
	2015		Gains		2016
Available-for-sale:
Government bonds		94,381		125		94,506
	$	94,381	$	125	$	94,506

XML

OTHER ASSETS

9 Months Ended

Sep. 30, 2017

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Assets Disclosure [Text Block]

NOTE 10 – OTHER ASSETS

The Company’s other assets consisted of the following as of September 30, 2017 and December 31, 2016:

	September 30, 2017		December 31, 2016
Registered capital deposit	$	1,065,176	$	-
Rental deposits		480,589		445,283
Restricted cash		488,822		248,803
Prepayments		61,206		5,576
Deferred tax assets		52,171		25,364
Others		1,655		1,456
Total other assets	$	2,149,619	$	726,482

According to China Insurance Regulatory Commission No. 82, issued on September 29, 2016, the Company should deposit all of its registered capital in a custodian account and subject to limited usage, among which, no less than 10% of the registered capital should be invested in significant deposit by agreement or term deposit. The Company should deposit this amount after six months of the issuance date.

Restricted cash is a deposit in the bank by the Company in conformity with Provisions of the Supervision and Administration of Specialized Insurance Agencies, which is not allowed to be withdrawn without the permission of the regulatory commission and the trust account for Law Broker’s general manager’s bonus plans.

XML

TAX PAYABLE

9 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Abstract]

Taxes Payable Disclosure [Text Block]

NOTE 11 – TAX PAYABLE

The Company’s tax payable consisted of the following as of September 30, 2017 and December 31, 2016:

	September 30, 2017		December 31, 2016
PRC Tax	$	287,138	$	163,461
Hong Kong Tax		9,091		14,233
Taiwan Tax		2,060,397		2,072,175
Total tax payable	$	2,356,626	$	2,249,869

PRC tax represents income tax and other taxes accrued according to PRC tax law by the Company’s subsidiaries and Consolidated Affiliated Entities (“CAE”) in the PRC. Taiwan tax represents income tax accrued according to Taiwan tax law by the Company’s subsidiaries and branches in Taiwan. Hong Kong tax represents income tax accrued according to Hong Kong tax law by the Company’s subsidiaries in Hong Kong.

XML

CONVERTIBLE BONDS

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

NOTE 12 – CONVERTIBLE BONDS

The Company intended to issue the convertible bonds during the period commencing on June 23, 2016 and ended on September 30, 2016 with an aggregate principal amount of up to $10,000,000. The convertible bonds were to be sold in units, with each unit being $100,000 in principal amount. The Company had not made any offers or sales of the convertible bonds to U.S. persons and there were no direct selling efforts in the United States. The bonds would not be convertible until two years from the issuance date and with an annual interest rate of 6% payable on a quarterly basis. The bond holder might cause the Company to redeem the convertible bonds before the end of the term, subject to certain penalties depending on the holding period of the convertible bonds when redeemed. Upon the expiration of the term of the convertible bonds, the bond holder may, in its sole discretion, choose to collect the payment of full principal amount of the convertible bonds together with any interest accrued or convert the convertible bonds into common shares of the Company at the conversion price. The conversion price shall be 80% of the average closing trading price for the ten (10) business days immediately prior to the conversion date.

On June 23, 2016, the Company issued two units of its convertible bonds with an aggregate principal amount of $200,000 to a non-US person and the value of the embedded derivatives liabilities is trivial. As of September 30, 2017 and December 31, 2016, the Company has an outstanding principal balance of $200,000 of convertible bonds. Total interest expense was $3,000 and $9,000 for the three and nine months ended September 30, 2017.

XML

OTHER CURRENT LIABILITIES

9 Months Ended

Sep. 30, 2017

Other Liabilities Disclosure [Abstract]

Other Liabilities Disclosure [Text Block]

NOTE 13 – OTHER CURRENT LIABILITIES

Other current liabilities are as follows, as of September 30, 2017 and December 31, 2016:

	September 30, 2017		December 31, 2016
Commissions payable to sales professionals	$	5,821,393	$	11,869,181
Unearned revenue (AIATW and Farglory)		1,340,884		2,090,718
Due to previous shareholders of AHFL		-		480,559
Accrued business tax		188,516		469,259
Deferred tax liabilities		125,059		-
Withholding employee personal tax		240,717		362,954
Accrued tax penalties		370,000		370,000
Accrued bonus		1,040,291		1,935,091
Salary payable to administrative staff		464,106		183,066
Accrued labor, health insurance and employee retirement plan		105,015		92,085
Accrued advertisement fee		-		32,525
Other accrued liabilities		724,847		754,471
Total other current liabilities	$	10,420,828	$	18,639,909

Commissions payable to sales professionals, accrued bonus, salaries payable to administrative staff, and accrued advertisement expense are usually settled within 12 months. Unearned revenue is described in Note 15. Due to previous shareholders of Action Holdings Financial Limited (“AHFL”) is the remaining balance payable of the acquisition cost. Accrued business tax, withholding employee personal tax, accrued labor, health insurance and employee retirement plan will be paid to the related government departments within one month. Accrued tax penalties are estimated potential penalty in the event of a tax audit. Other accrued liabilities mainly consist of accrued interest, accrued logo promotion product expense and operating expenses payable for training and travelling.

XML

LONG-TERM LOANS

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Long-term Debt [Text Block]

NOTE 14 – LONG-TERM LOANS

	September 30, 2017		December 31, 2016
Loan B, interest at 8%, maturity date May 15, 2019	$	150,274	$	144,015
Loan C, interest at 8%, maturity date July 20, 2019		115,711		110,892
Total long-term loans	$	265,985	$	254,907

On May 15, 2016, the Company’s contractually controlled affiliate in PRC, Law Anhou Insurance Agency Co., Ltd (“Anhou” or “Law Anhou”), entered into a loan agreement (“Loan B”) with a third party. The long-term Loan Agreement provided for a $150,274 loan to the Company. Loan B bears an interest rate of 8% per annum and interest is payable annually. The principal and the interest will be due on May 15, 2019.

On July 20, 2016, Anhou entered into a loan agreement (“Loan C”) with a third party. The long-term Loan Agreement provided for a $115,711 loan to the Company. Loan C bears an interest rate of 8% per annum and interest is payable annually. The principal and the interest will be due on July 20, 2019.

The total interest expense for both Loan B and Loan C was $5,293 and $15,562 for the three and nine months ended September 30, 2017.

XML

LONG-TERM LIABILITIES

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Long-Term Liabilities Disclosure [Text Block]

NOTE 15 – LONG-TERM LIABILITIES

As of September 30, 2017 and December 31, 2016, long-term liabilities are as follows:

	September 30, 2017		December 31, 2016
Unearned revenue – AIATW	$	4,242,585	$	4,742,272
Unearned revenue – Farglory		-		495,615
Due to pervious shareholders of AHFL		480,559		-
Other long-term liabilities		175,191		77,440
Long-term liabilities	$	4,898,335	$	5,315,327

Unearned revenue – AIATW

On June 10, 2013, AHFL entered into a Strategic Alliance Agreement (the “Alliance Agreement”) with AIA International Limited Taiwan Branch (“AIATW”). The purpose of the Alliance Agreement is to promote life insurance products provided by AIATW within Taiwan by insurance agencies or brokerage companies affiliated with AHFL or CUIS. The term of the Alliance Agreement is from April 15, 2013 to August 31, 2018. Pursuant to the terms of the Alliance Agreement, AIATW paid AHFL an execution fee of $8,326,700 (NTD250,000,000, including the tax of NTD11,904,762, the “Execution Fee”), which is to be recorded as revenue upon fulfilling sales targets and the 13-month persistency ratio, as defined, over the next five years. The Execution Fee may be required to be recalculated if certain performance targets are not met by AHFL. On September 30, 2014, AHFL entered into a Strategic Alliance Supplemental Agreement (the “Supplemental Agreement”) with AIATW. In the Supplemental Agreement, the performance targets and the provision about refunding the Execution Fee on pro rata basis when the performance targets are not met were revised.

On January 6, 2016, AHFL entered into an Amendment 2 to Strategic Alliance Agreement (the “Amendment No. 2”) with AIATW to further revise certain provisions in the Strategic Alliance Agreement and the previous amendment entered into by and between AHFL and AIATW. The purpose of the Strategic Alliance Agreement is to promote life insurance products provided by AIATW within the territory of Taiwan through insurance agency companies or insurance brokerage companies. To the extent permitted by applicable laws and regulations, AHFL shall assist and encourage any insurance agency company or insurance brokerage company duly approved by the competent government authorities of Taiwan (the “Appointed Broker/Agent”), to cooperate with AIATW for the promotion of life insurance products of AIATW. Pursuant to the Amendment No. 2, the expiration date of the Strategic Alliance Agreement has been extended from May 31, 2018 to December 31, 2021, and the effect of the Strategic Alliance Agreement during the period from October 1, 2014 to December 31, 2015 has been suspended. In addition, both AHFL and AIATW agreed to adjust certain terms and conditions set forth in the Strategic Alliance Agreement, among which: (i) expand the scope of services to be provided by AHFL to AIATW to include, without limitation, assessment and advice on suitability of cooperative partners, advice on product strategies suitable for promotion channel development, advice on promotion/sales channel improvement, advice on promotion channel marketing and strategic planning, and promotion channel talent training; and (ii) remove certain provisions related to performance milestones and refund of Execution Fees. On March 15, 2016, AHFL issued a promise letter (the “2016 Letter”) to AIATW that AHFL is required to (i) fulfill sales targets and (ii) the 13-month persistency ratio.

On June 14, 2017, with AIATW’s consent, the 2016 Letter has been revoked in order to conform with the latest terms and conditions regarding the cooperation between AHFL and AIATW as set forth in a third amendment (Amendment No. 3). Pursuant to the Amendment No. 3, both AHFL and AIATW agreed to adjust certain terms and conditions set forth this amendment, among which (i) except the first contract year (April 15th, 2013 to September 30th, 2014), the sales target of the alliance between the parties shall be changed to (a) value of new business (“VONB”) and (b) the 13-month persistency ratio; and (ii) AIATW will calculate and recognize the VONB and 13-month persistency ratio each contract year and inform the Company the result; and (iii) the Company agrees to return the basic business promotion fees to AIATW within thirty (30) days of receipt of the notice sent by AIATW if the Company fails to meet the targets set forth in Amendment No. 3, AIATW reserves the right to offset such amount against the amount payable by it to the Company; and (iv) upon the termination of the Alliance Agreement and its amendments pursuant to the Section 8.2 of the Alliance Agreement, both parties agree to calculate the amount to be returned or repaid, as applicable, based on the past and current contract years. The Company shall return the basic business promotion fees at NTD 330,000,000 for each contract years within one month after the termination.

The Company recognizes AIATW’s revenue when the life insurance products provided by AIATW are met: (i) persuasive evidence of an agreement between the insurance company and insured exists, (ii) insurance brokerage services have been provided, (iii) the fee to be paid by the related insurer to the Company for such services is fixed or determinable, and (iv) the collectability of the fee is reasonably assured. The purpose of refund is primarily due to the portion of performance sales targets are not met in that contract year. The following table presents the amounts recognized as revenue and the refunded for each contract year:

Contract Year	Period	Execution Fees		Revenue Amount			Refund Amount
First	4/15/2013 ~ 9/30/2014	NTD	50,000,000	NTD	28,494,856	(1)	NTD	21,505,144	(1)
Second	1/1/2016 ~ 12/31/2016	NTD	35,000,000	NTD	13,497,750	(2)	NTD	21,502,250	(2)
Third	1/1/2017 ~ 12/31/2017	NTD	33,000,000	NTD	9,254,296	(3)	NTD	-
Fourth	1/1/2018 ~ 12/31/2018	NTD	33,000,000	NTD	-		NTD	-
Fifth	1/1/2019 ~ 12/31/2019	NTD	33,000,000	NTD	-		NTD	-
Sixth	1/1/2020 ~ 12/31/2020	NTD	33,000,000	NTD	-		NTD	-
Seventh	1/1/2021 ~ 12/31/2021	NTD	33,000,000	NTD	-		NTD	-
TOTAL		NTD	250,000,000	NTD	51,246,902		NTD	43,007,394

(1)	The revenue recognition for the first contract year is based on the annual first year premium (“AFYP”) set in Alliance Agreement, which is difference from other contract years. From the second contract year to the seventh contract year, the revenue calculation is based on VONB. The Company recognized the first contract year’s revenue amount of $934,099 (NTD28,494,856) and refunded the amount of nil for the first contract year for the nine months ended September 30, 2017. On December 3, 2015 and February 23, 2016, the Company refunded the amounts of $152,235 (NTD 5,000,000) and $502,532 (NTD 16,505,144) to AIATW, respectively, due to the portion of performance sales targets not met during the first contract year.
(2)	For the nine months ended September 30, 2017, the Company recognized the second contract year’s revenue amount of $442,474 (NTD13,497,750) and refunded the amount of $709,084 (NTD21,502,250) for the same contract period.
(3)	For the nine months ended September 30, 2017, the Company recognized the third contract year’s revenue amount of $303,369 (NTD9,254,296) and refunded the amount nil for the same contract period.

The Company recognized revenue of $1,679,942 (NTD51,246,902) and nil for the nine months ended September 30, 2017 and 2016 related to this agreement. As of September 30, 2017 and December 31, 2016, the Company had non-current portion of unearned revenue of $4,242,585 and $4,742,272, respectively, and current portion of $681,340 and $1,966,814, respectively, related to the Alliance Agreement. 

Unearned revenue – Farglory

On April 20, 2016, the Company entered into a service agreement (“Service Agreement”) with Farglory Life Insurance Co., Ltd. (“Farglory”). The Company is to provide consulting services to Farglory for NTD4,000,000 per year and the aggregate consulting services fee is NTD20,000,000 from May 1, 2016 to April 30, 2021. However, both parties are renegotiating the Service Agreement and plan to amend the cooperation method. As of September 30, 2017 and December 31, 2016, the Company had long-term liabilities amount of nil and $495,615, respectively, and current liabilities amounts of $659,544 and $123,904, respectively, related to this Service Agreement.

Due to previous shareholders of AHFL

Due to previous shareholders of AHFL is the remaining balance payable of the acquisition cost. On March 12, 2017, the Company and the selling shareholders of AHFL entered into a fifth amendment to the acquisition agreement (the “Fifth Amendment”), pursuant to which, the Company agreed to distribute the cash payment in the amount of $480,559 (NTD15 million) on or prior to March 31, 2019.

Other long-term liabilities

On May 10, 2016, Law Broker entered into an engagement agreement (the “Engagement Agreement”) with Hui-Hsien Chao (“Ms. Chao”), pursuant to which she acts as the general manager of Law Broker for a term from December 29, 2015 to December 28, 2018. Ms. Chao’s primary responsibilities are to assist Law Broker in operating and managing insurance agency business. According to the Engagement Agreement, Ms. Chao’s bonus plans include: 1) execution, 2) long-term service fees, 3) pension and 4) non-competition, and the payment of such bonuses will only occur upon satisfaction of certain condition and subject to the terms therein, among which, Ms. Chao acts as the general manager or equivalent position of Law Broker for at least 3 years.

On May 14, 2016, Law Broker and Ms. Chao entered into a supplementary agreement (“Supplementary Agreement”) to postpone her pension vesting date to December 29, 2016. Law Broker expects that none of the above-mentioned bonuses are to be paid prior to May 2019, and therefore it has recorded as long-term liabilities representing the corresponding portion of such bonuses accrued. On March 13, 2017, Law Broker and Ms. Chao entered into an engagement agreement, which is the amendment to Engagement Agreement dated May 10, 2016 to specify 1) Ms. Chao’s pension calculation assumption and start date, and 2) the non-competition provision start date. As of September 30, 2017 and December 31, 2016, the balance of such accrued long-term liabilities was $175,191 and $77,440, respectively.

XML

PREFERRED STOCK

9 Months Ended

Sep. 30, 2017

Stockholders Equity Note [Abstract]

Preferred Stock [Text Block]

NOTE 16 – PREFERRED STOCK

The Company is authorized to issue 10,000,000 shares of preferred stock, $.00001 par value and currently has 1,000,000 shares of Series A Preferred Stock (“Series A Stock”) outstanding as of September 30, 2017. The Series A Stock has the following rights and preferences:

Voting Rights. Except as otherwise provided by law, the Series A Stock and the common stock vote together on all matters submitted to a vote of the Company’s shareholders. Each holder of Series A Stock is entitled to ten votes for each share of Series A Stock held of record by such holder as of the applicable record date on any matter that is submitted to a vote of the stockholders of the Company.

Series A Board Designee and Board Restriction. In addition to the voting rights disclosed above, the holders of the Series A Stock shall be entitled to appoint one director (the “Series A Director”). No Board resolution regarding certain material Company actions can be made without the affirmative vote of the Series A Director.

Dividends. The holders of Series A Stock are entitled to share equally with the holders of common stock, on a per share basis, in such dividends and other distributions of cash, property or shares of stock of the Company as may be declared by the Board.

Liquidation. In the event of a voluntary or involuntary liquidation, dissolution, distribution of assets or winding up of the Company, the holders of common stock and the holders of Series A Stock shall be entitled to share equally on a per share basis, in all assets of the Company of whatever kind available for distribution.

Conversion Rights. The holders of the Series A Stock have the right to convert their shares thereof at any time into shares of the Company’s common stock. Each share of Series A Stock is convertible into one share of common stock.

If the Company in any manner subdivides or combines the outstanding shares of common stock, the outstanding shares of the Series A Stock will be subdivided or combined in the same manner.

Business Combinations. In any merger, consolidation, reorganization or other business combination, the consideration received per share by the holders the common stock and the holders of the Series A Stock in such merger, consolidation, reorganization or other business combination shall be identical; provided however, that if such consideration consists, in whole or in part, of certain equity interests, the rights and limitations of such equity interests may differ to the extent that the rights and limitations of the common stock and the Series A Stock differ.

Fully Paid and Nonassessable. All of the Company’s outstanding shares of preferred stock are fully paid and nonassessable.

The fair value of the 1,000,000 preferred shares was $225,000 at the time of the preferred share issuance. The fair value of the common shares was $200,000 at the time of the preferred share issuance based on its market price at the date of the transaction. Therefore, the incremental value of the preferred shares was $25,000. This amount may be deemed compensation.

From the qualitative aspect, the Company notes the following regarding this deemed compensation: 

Does not violate any debt or other contract covenants; 

Does not change any earnings or EPS trends; 

Does not affect any previous earnings or EPS guidance; 

Does not affect any segment or class of revenue; 

Does not affect any regulatory compliance matters;  

Does not affect cash compensation of management; 

Does not involve concealment of an unlawful act.

Additional preferred stock may be authorized and issued in the future in connection with acquisitions, financings, or other matters, as the Board of Directors (the “BOD”) deems appropriate.  In the event that the Company issues any shares of preferred stock, a certificate of designation containing the rights, privileges and limitations of this series of preferred stock will be filed with the Secretary of State of the State of Delaware.  The effect of this preferred stock designation power is that its BOD alone, subject to Federal securities laws, applicable blue-sky laws, and Delaware law, may be able to authorize the issuance of preferred stock which could have the effect of delaying, deferring, or preventing a change in control without further action by its stockholders, and may adversely affect the voting and other rights of the holders of its common stock.

XML

STATUTORY RESERVES

9 Months Ended

Sep. 30, 2017

Statutory Reserves [Abstract]

Statutory Reserves Disclosure [Text Block]

NOTE 17 – STATUTORY RESERVES

According to Taiwan accounting rules and corporation regulations, the Company’s subsidiaries in Taiwan must appropriate 10% of net income to statutory reserves until the accumulated reserve hits registered capital. The reserve can be converted into share capital by issuing new shares to existing shareholders in proportion to their shareholding or by increasing the par value of the shares currently held by them, with a limitation that the reserve left is not less than 25% of the registered capital after converting to share capital.

Pursuant to the PRC regulations, CAE are required to transfer 10% of their net profit, as determined under the PRC accounting regulations, to a Statutory Common Reserve Fund (“Reserve Fund”). Appropriation to the Reserve Fund may cease when the fund equals 50% of a company’s registered capital or when a company has accumulated losses. The transfer to this reserve must be made before distribution of dividends to shareholders. The Company’s CAE did not appropriate such reserve as they have accumulated losses.

XML

NON-CONTROLLING INTERESTS

9 Months Ended

Sep. 30, 2017

Noncontrolling Interest [Abstract]

Noncontrolling Interest Disclosure [Text Block]

NOTE 18 – NON-CONTROLLING INTERESTS

Non-controlling interests consisted of the following:

						Net Income and Other Comprehensive
Name of Affiliate	% of Non-controlling Interests			As of December 31, 2016		Gain/(Loss) of Non-controlling Interests		As of September 30, 2017
Law Enterprise Co., Ltd. (“Law Enterprise”)		34.05	%	$	17,386	$	446,585	$	463,971
Law Broker		34.05	%		9,621,159		2,148,249		11,769,408
Prime Financial Asia Ltd. (“PFAL”)		49.00	%		232,414		(34,973)		197,441
Max Key Investments Ltd. (“MKI”)		49.00	%		(1,569)		(548)		(2,117)
Prime Asia Corporation Limited. (“PA Taiwan”)		49.00	%		(95,448)		(64,179)		(159,627)
Prime Management Consulting (Nanjing) Co., Ltd. (“PTC Nanjing”)		49.00	%		(2,400)		261		(2,139)
Total				$	9,771,542	$	2,495,395	$	12,266,937

						Net Income and Other Comprehensive
Name of Affiliate	% of Non-controlling Interests			As of December 31, 2015		Gain/(Loss) of Non-controlling Interests		As of December 31, 2016
Law Enterprise		34.05	%	$	199,699	$	(182,313)	$	17,386
Law Broker		34.05	%		7,197,128		2,424,031		9,621,159
PFAL		49.00	%		206,098		26,316		232,414
MKI		49.00	%		(1,065)		(504)		(1,569)
PA Taiwan		49.00	%		(26,292)		(69,156)		(95,448)
PTC Nanjing		49.00	%		(837)		(1,563)		(2,400)
Total				$	7,574,731	$	2,196,811	$	9,771,542

XML

INCOME TAX

9 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Abstract]

Income Taxes Excluding Taxes Payable Disclosure [Text Block]

NOTE 19 – INCOME TAX

Provision (benefit) for income tax for the three months ended September 30, 2017 consisted of:

Three months ended
September 30, 2017	Federal		State		Foreign		Total
Current	$	-	$	-	$	828,532	$	828,532
Deferred		-		-		3,346		3,346
Total	$	-	$	-	$	831,878	$	831,878

Provision (benefit) for income tax for the three months ended September 30, 2016 consisted of:

Three months ended
September 30, 2016	Federal		State		Foreign		Total
Current	$	-	$	-	$	500,787	$	500,787
Deferred		-		-		(43,959)		(43,959)
Total	$	-	$	-	$	456,828	$	456,828

Provision (benefit) for income tax for the nine months ended September 30, 2017 consisted of:

Nine months ended
September 30, 2017	Federal		State		Foreign		Total
Current	$	-	$	-	$	2,365,177	$	2,365,177
Deferred		-		-		(20,030)		(20,030)
Total	$	-	$	-	$	2,345,147	$	2,345,147

Provision (benefit) for income tax for the nine months ended September 30, 2016 consisted of:

Nine months ended
September 30, 2016	Federal		State		Foreign		Total
Current	$	-	$	-	$	1,400,566	$	1,400,566
Deferred		-		-		(65,235)		(65,235)
Total	$	-	$	-	$	1,335,331	$	1,335,331

Significant components of the deferred tax assets and liabilities for income tax as of September 30, 2017 and December 31, 2016 consisted of the following:

	As of
	September 30, 2017		December 31, 2016
Deferred tax assets
Net operating loss carry-forward	$	1,101,734	$	993,050
Others		110,212		84,597
Total	$	1,211,946	$	1,077,647
Valuation allowance		(1,101,734)		(993,050)
Net deferred tax assets	$	110,212	$	84,597
Deferred tax assets - current	$	58,041	$	59,233
Deferred tax assets - noncurrent	$	52,171	$	25,364
Deferred tax liabilities - current	$	125,059	$	-

A 100% valuation allowance was provided for the deferred tax assets related to the PRC segment and the Company as of September 30, 2017 and December 31, 2016. Net deferred tax assets of $110,212 and $84,597, respectively, related to the Taiwan segment were included in other current assets and other assets on the consolidated balance sheets as of September 30, 2017 and December 31, 2016. Deferred tax liabilities were the timing differences of revenue and cost of sales recognized in the period ended September 30, 2017. Deferred tax liabilities of $125,059 and nil, respectively, related to the PRC segment were in other current liabilities on the consolidated balance sheets as of September 30, 2017 and December 31, 2016.

Zhengzhou Zhonglian Hengfu Business Consulting Co., Ltd. (“CU WFOE”) and the CAE in the PRC are governed by the Income Tax Law of the PRC concerning the private enterprises, which are generally subject to tax at 25% on income reported in the statutory financial statements after appropriated adjustments, except for Jiangsu. For Jiangsu, according to the requirement of local tax authorities, the tax basis is deemed as 10% of total revenue, instead of net income. 

The Company’s subsidiaries in Taiwan are governed by the Income Tax Law of Taiwan, and are generally subject to tax at 17% on income reported in the statutory financial statements after appropriate adjustments. In the meanwhile, Income Tax Law of Taiwan provides that a company is taxed at additional 10% on any undistributed earnings to its shareholders.

The Company’s subsidiaries in Hong Kong are governed by the Inland Revenue Ordinance Tax Law of Hong Kong, and are generally subject to a profits tax at the rate of 16.5% on the estimated assessable profits.

The following table reconciles the US statutory rates to the Company’s effective tax rate for the three months ended September 30, 2017 and 2016:

	Three Months Ended September 30,
	2017			2016
US statutory rate		34	%		34	%
Tax rate difference		(18)	%		(18)	%
Tax base difference		-	%		-	%
Loss in subsidiaries		7	%		2	%
Un-deductible and non-taxable items		7	%		9	%
Tax per financial statements		30	%		27	%

The following table reconciles the US statutory rates to the Company’s effective tax rate for the nine months ended September 30, 2017 and 2016:

	Nine Months Ended September 30,
	2017			2016
US statutory rate		34	%		34	%
Tax rate difference		(18)	%		(20)	%
Tax base difference		-	%		1	%
Loss in subsidiaries		5	%		7	%
Un-deductible and non-taxable items		6	%		10	%
Tax per financial statements		27	%		32	%

Un-deductible and non-taxable items mainly represent un-deductible expenses according to local tax laws and the non-taxable tax income or expenses.

XML

RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2017

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

NOTE 20 – RELATED PARTY TRANSACTIONS

Due to related parties

The related parties listed below loaned money to the Company for working capital. Due to related parties consisted of the following as of September 30, 2017 and December 31, 2016:

	September 30, 2017		December 31, 2016
Due to Mr. Mao (CEO of the Company)	$	401,775	$	361,379
Due to Ms. Lu (Shareholder of Law Anhou)		225,411		-
Due to Xude Investment (Owned by Mr. ChwanHau Li)		-		32,374
Due to Mr. Zhu (Legal Representative of Jiangsu)		2,081		1,994
Due to Yuli Broker (Owned by Ms. Lee)		141		265
Due to Yuli Investment (Owned by Ms. Lee)		141		265
Due to I Health Management Corp*		17,313		3,724
Total	$	646,862	$	400,001

*25% of I Health Management Corp’s shares are owned by Multiple Capital Enterprise. 24% of Multiple Capital Enterprise’s shares are owned by the Company’s management level 

The loan due to related parties were non-interest bearing and were payable on demand.

Debt Forgiveness – Related Parties

In 2015, Xude Investment assisted the Company to set up Genius Holdings Financial Limited (BVI Company) and Genius Investment Consultant Co., Ltd. (Taiwan Company) and paid set up fee on behalf of the Company with the amount of $23,544 and NTD285,083 ($9,393). Xude Investment was owned by Mr. ChwanHau Li, who is one of the Directors of the Company. In March 2017, Xude Investment agreed to forgive the Company’s debt above in whole. As of September 30, 2017, the Company has debt forgiveness from related parties amount of $32,937.

Lease Agreements

On July 1, 2016, the Company entered into a lease agreement with Yuli Broker to lease its Nan-King East Road office space in Taipei City. The lease term was for one year commencing on July 1, 2016 and ending on June 30, 2017, with an annual base rent approximately of $590 (NTD18,000). On June 30, 2017, this lease agreement was extended automatically to June 30, 2018. For the three and nine months ended September 30, 2017, rent income were $141 and $421, respectively.

On July 1, 2016, the Company entered into a lease agreement with Yuli Investment to lease its Nan-King East Road office space in Taipei City. The lease term was for one year commencing on July 1, 2016 and ending on June 30, 2017, with an annual base rent approximately of $590 (NTD18,000). On June 30, 2017, this lease agreement was extended automatically to June 30, 2018. For the three and nine months ended September 30, 2017, rent income were $141 and $421, respectively.

Advisory Agreements

On May 2, 2016, the Company entered into an advisory agreement with I Health. Pursuant to the Advisory Agreement, I Health provided 10,000 Taiwan citizen’s health information to the Company for its new insurance product during May 2, 2016 to May 1, 2017. The total advisory fee was approximately $42,000 (NTD1,275,000). For the nine months ended September 30, 2017, The Company had cost of revenue related to I Health amount of $13,269.

On December 7, 2016, the Company entered into an advisory agreement with Fuchang Li (“Mr. Li,” the Director of the Company). Pursuant to this Advisory Agreement, Mr. Li provided investment consulting to the Company from December 7, 2016 to December 6, 2017. The total advisory fee was approximately $58,000 (NTD1,800,000). The Company had general and administrative expense related to this advisory agreement amount of $13,619and $42,998, respectively, for the three and nine months ended September 30, 2017.

Consulting Agreement

On November 1, 2016, the Company entered into a consulting agreement with Apex Biz Solution Limited. (“Apex,” was formerly known as Prime Technology Corp.), which has one of the same directors as Prime Financial Asia Ltd. Pursuant to this consulting agreement, the Company provided administrative operation consulting service to Apex from November 1, 2016 to December 31, 2021. As of and for the nine months ended September 30, 2017, the Company had account receivable and revenue amount of $17,274 and $33,874, respectively.

XML

COMMITMENTS

9 Months Ended

Sep. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments Disclosure [Text Block]

NOTE 21 – COMMITMENTS

Operating Leases

The Company has operating leases for its offices. Rental expenses for the three months ended September 30, 2017 and 2016 were $595,277 and $526,390, respectively. Rental expenses for the nine months ended September 30, 2017 and 2016 were $1,832,335 and $1,557,725, respectively. As of September 30, 2017, total future minimum annual lease payments under operating leases were as follows, by years:

Twelve months ending September 30, 2018	$	2,049,071
Twelve months ending September 30, 2019		1,166,015
Twelve months ending September 30, 2020		245,873
Twelve months ending September 30, 2021		55,088
Twelve months ending September 30, 2022		17,687
Thereafter		-
Total	$	3,533,734

Engagement Agreement with Ms. Chao

On May 10, 2016, Law Broker entered into the Engagement Agreement with Ms. Chao. Please refer to Note 15 Other Long-term Liabilities.

XML

FINANCIAL RISK MANAGEMENT AND FAIR VALUE

9 Months Ended

Sep. 30, 2017

Financial Risk Management and Fair Values [Abstract]

Financial Risk Management and Fair Values Disclosure [Text Block]

NOTE 22 – FINANCIAL RISK MANAGEMENT AND FAIR VALUE

The Company has exposure to credit, liquidity and market risks which arise in the normal course of its business. This note presents information about the Company’s exposure to each of these risks, the Company’s objectives, policies and processes for measuring and managing risk, and the Company’s management of capital. Further quantitative disclosures are included throughout these consolidated financial statements.

The BOD has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Company’s risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Company’s BOD oversees how management monitors compliance with the Company’s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. 

(a) Credit risk

The Company’s credit risk arises principally from accounts receivables, loan and other receivables, pledged deposits and cash and equivalents. Management has a credit policy in place and monitors exposures to these credit risk on an ongoing basis. The carrying amounts of account receivables, loan and other receivables, pledged deposits and cash and cash equivalents represent the Company’s maximum exposure to credit risk. Accounts receivable are due within thirty (30) days from the date of billing.

(b) Liquidity risk

The BOD of the Company is responsible for the overall cash management and raising borrowings to cover expected cash demands. The Company regularly monitors its liquidity requirements, to ensure it maintains sufficient reserves of cash and readily realizable marketable securities and adequate committed lines of funding from major financial institutions to meet its liquidity requirements in the short and longer term.

(c) Currency risk

The functional currency for the Company’s subsidiaries in Taiwan is NTD and the functional currency for the Company’s subsidiaries and CAE in PRC is RMB. The financial statements of the Company are in USD. The fluctuation of NTD and RMB exchange rates will affect the Company’s operating results expressed in USD. The Company reviews its foreign currency exposures, and the management does not consider its present foreign exchange risk to be significant. 

XML

RECLASSIFICATIONS

9 Months Ended

Sep. 30, 2017

Accounting Changes and Error Corrections [Abstract]

Accounting Changes and Error Corrections [Text Block]

NOTE 23 – RECLASSIFICATIONS

The effects of the reclassifications for the prior year is reflected below.

Consolidated Balance Sheet	December 31, 2016
Original:
Cash and cash equivalents	$	25,521,802
Revised:
Cash and cash equivalents	$	20,169,455
Time deposits		5,352,347

	Nine Months Ended
Unaudited Condensed Consolidated Statements of Cash Flow	September 30, 2016
Original:
Net cash used in investing activities	$	(960,166)
Foreign currency translation		942,171
Net increase (decrease) in cash and cash equivalents		3,975,267
Cash and cash equivalents, beginning balance		20,831,824
Cash and cash equivalents, ending balance		24,807,091
Revised:
Cash flows from investing activities:
Purchases of time deposits	$	(7,095,147)
Proceeds from maturities of time deposits		8,025,394
Net cash used in investing activities		(29,919)
Foreign currency translation		596,891
Net increase (decrease) in cash and cash equivalents		4,560,234
Cash and cash equivalents, beginning balance		13,083,357
Cash and cash equivalents, ending balance		17,643,591

XML

FAIR VALUE MEASUREMENT

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value, Measurement Inputs, Disclosure [Text Block]

NOTE 24 – FAIR VALUE MEASUREMENT

FASB ASC 820, “Fair Value Measurements and Disclosures,” defines Fair Value (“FV”), establishes a three-level valuation hierarchy for disclosures of FV measurement and enhances disclosure requirements for FV measures. The carrying amounts reported in the balance sheets for receivables and current liabilities each qualify as financial instruments and are reasonable estimates of FV because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels are defined as follows:

• Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

• Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liabilities, either directly or indirectly, for substantially the full term of the financial instruments.

• Level 3 inputs to the valuation methodology are unobservable and significant to the FV.    

The following table presents the fair value and carrying value of the Company’s financial assets and liabilities as of September 30, 2017:

	Fair Value						Carrying
	Level 1		Level 2		Level 3		Value
Assets
Bank time deposits	$	-	$	21,475,432	$	-	$	21,475,432
Marketable securities:
Funds		32,867		-		-		32,867
Structured deposit		-		1,205,162		-		1,205,162
Loan receivable (Other current assets in Notes 6)		-		-		1,477,060		1,477,060
Long-term investment:
Equity investment		-		-		1,288,279		1,267,475
Government bonds		-		101,475		-		101,475
Liabilities
Due to related parties	$	-	$	-	$	646,862	$	646,862
Convertible bonds		-		-		200,000		200,000
Long-term loans		-		-		265,985		265,985

The following table presents the fair value and carrying value of the Company’s financial assets and liabilities as of December 31, 2016:

	Fair Value						Carrying
	Level 1		Level 2		Level 3		Value
Assets
Bank time deposits	$	-	$	7,808,058	$	-	$	7,808,058
Marketable securities:
Stocks		38,763		-		-		38,763
Funds		2,388,107		-		-		2,388,107
Loan receivable (Other current assets in Notes 6)		-		-		1,486,846		1,486,846
Long-term investment:
Equity investment		-		-		1,288,279		1,190,558
Government bonds		-		94,506		-		94,506
Liabilities
Due to related parties	$	-	$	-	$	400,001	$	400,001
Convertible bonds		-		-		200,000		200,000
Long-term loans		-		-		254,907		254,907

Bank time deposits – The carrying amount approximates its fair value due to short-term in nature of the bank time deposits.

Marketable securities – The fair value of stocks and funds is generally valued based on quoted market prices in active markets.

Structured deposit – The fair value of the structured deposit is determined based on present value of the structured deposit, using annum yield of 3.9% or 4.1%, depending on the strike price. The strike price is at 7.3 USDCNH.

Loan receivable – The Company’s loan receivable is determined based on 4.5% per annum interest rate on the recent lending to Rich Fountain Limited.

Equity investment – The fair value of the Company’s equity investment was arrived at using the “Income Approach.” The calculation assumptions were: (i) 2% for long-term stable growth rate, (ii) 14.79%~15% for cash discount rate (rate for weighted average cost of capital), and (iii) 25% for liquidity discount rate. The Company evaluated overall economic condition and unnoted any significant change. The related equity investment does not have any negative news. Therefore, the fair value of the Company’s equity investment as of September 30, 2017 is same as December 31, 2016.

Government bonds – The fair value of government bonds is valued based on theoretical bond price in Taipei Exchange (formerly the Gre Tai Securities Market).

 

Due to related parties – The Company’s due to related parties bears no interest and payable on demand.

Convertible bonds – The Company determined the fair value of the convertible bonds is 80% of the average closing trading price for the ten (10) business days immediately prior to the conversion date.

Long-term loans - The fair value of the Company’s long-term loans were determined by discounted cash flows.

XML

GEOGRAPHICAL DATA

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE 25 – GEOGRAPHICAL DATA

The geographical distribution of the Company’s financial information for the three months ended September 30, 2017 and 2016 were as follows:

	For three months ended September 30,
Geographical Areas	2017		2016
Revenue
Taiwan	$	13,290,282	$	12,714,857
PRC		2,885,940		2,182,967
Hong Kong		33,633		71,079
Elimination adjustment		479		(17,558)
Total revenue	$	16,210,334	$	14,951,345
Income (loss) from operations
Taiwan	$	2,348,757	$	1,661,872
PRC		284,662		(75,861)
Hong Kong		(21,353)		1,822
Elimination adjustment		35,487		37,848
Total income (loss) from operations	$	2,647,553	$	1,625,681
Depreciation and amortization expenses
Taiwan	$	117,019	$	130,343
PRC		21,415		22,180
Hong Kong		71		72
Elimination adjustment		-		-
Total depreciation and amortization expenses	$	138,505	$	152,595
Interest income
Taiwan	$	101,919	$	38,959
PRC		45		(2,254)
Hong Kong		-		(1)
Elimination adjustment		(22,665)		(5,591)
Total interest income	$	79,299	$	31,113
Interest expenses
Taiwan	$	25,665	$	8,965
PRC		5,293		(1,773)
Hong Kong		-		-
Elimination adjustment		(22,665)		(5,591)
Total interest expenses	$	8,293	$	1,601
Income tax expense
Taiwan	$	707,676	$	456,849
PRC		129,257		(21)
Hong Kong		(5,055)		-
Elimination adjustment		-		-
Total income tax expense	$	831,878	$	456,828
Net income (loss)
Taiwan	$	1,877,187	$	1,298,707
PRC		115,800		(88,813)
Hong Kong		(17,621)		10,781
Elimination adjustment		1,771		2,571
Total net income (loss)	$	1,977,137	$	1,223,246

The geographical distribution of the Company’s financial information for the nine months ended September 30, 2017 and 2016 were as follows:

	For nine months ended September 30,
Geographical Areas	2017		2016
Revenue
Taiwan	$	41,667,540	$	37,093,407
PRC		8,321,471		6,086,426
Hong Kong		106,147		148,664
Elimination adjustment		(10,474)		(39,384)
Total revenue	$	50,084,684	$	43,289,113
Income (loss) from operations
Taiwan	$	7,652,886	$	4,549,826
PRC		447,690		(765,421)
Hong Kong		(59,649)		(12,491)
Elimination adjustment		101,934		100,198
Total income (loss) from operations	$	8,142,861	$	3,872,112
Depreciation and amortization expenses
Taiwan	$	343,413	$	392,943
PRC		66,965		62,224
Hong Kong		215		216
Elimination adjustment		-		-
Total depreciation and amortization expenses	$	410,593	$	455,383
Interest income
Taiwan	$	302,630	$	150,772
PRC		2,314		1,408
Hong Kong		-		-
Elimination adjustment		(58,385)		(14,958)
Total interest income	$	246,559	$	137,222
Interest expenses
Taiwan	$	67,385	$	19,920
PRC		15,562		6,203
Hong Kong		-		-
Elimination adjustment		(58,385)		(14,958)
Total interest expenses	$	24,562	$	11,165
Income tax expense
Taiwan	$	2,133,024	$	1,332,238
PRC		217,178		3,093
Hong Kong		(5,055)		-
Elimination adjustment		-		-
Total income tax expense	$	2,345,147	$	1,335,331
Net income (loss)
Taiwan	$	6,382,356	$	3,678,408
PRC		170,408		(781,726)
Hong Kong		(70,562)		(13,882)
Elimination adjustment		4,762		6,456
Total net income (loss)	$	6,486,964	$	2,889,256

The geographical distribution of the Company’s financial information as of September 30, 2017 and December 31, 2016 were as follows:

	As of
Geographical Areas	September 30, 2017		December 31, 2016
Capital expenditures
Taiwan	$	(317,455)	$	(835,564)
PRC		(29,234)		(148,936)
Hong Kong		-		-
Total capital expenditures	$	(346,689)	$	(984,500)
Long-lived assets
Taiwan	$	1,508,431	$	1,453,772
PRC		165,811		256,704
Hong Kong		430		648
Elimination adjustment		3,746,163		2,071,491
Total long-lived assets	$	3,746,163	$	3,782,615
Reportable assets
Taiwan	$	89,208,044	$	90,388,991
PRC		11,748,446		13,325,433
Hong Kong		434,808		561,708
Elimination adjustment		(50,258,436)		(52,868,589)
Total reportable assets	$	51,132,862	$	51,407,543

XML

LOAN TO SHAREHOLDERS

9 Months Ended

Sep. 30, 2017

Loan To Shareholders [Abstract]

Loan To Shareholders [Text Block]

NOTE 26 – LOAN TO SHAREHOLDERS

Anhou Registered Capital Increase

On April 27, 2013, China Insurance Regulatory Commission mandated any insurance agency have a minimum registered capital requirement of RMB50 million (approximately $ 8 million). At the time, Anhou, a professional insurance agency with a PRC nationwide license, had a registered capital of RMB10 million (approximately $ 1.6 million). To better implement its expansion strategies, Anhou intends to increase its registered capital to RMB50 million so that it can set up new branches in any province beyond its current operations in the PRC.

Due to certain restriction on direct foreign investment in insurance agency business under current PRC legal requirements, Anhou sought investments from certain Investor Borrowers, as defined below in Item 2 of this part, who in turn needed funds through individual loans.

On June 9, 2013, AHFL entered into a loan agreement with ZLI Holdings, whereby AHFL agreed to provide a loan to ZLI Holdings of RMB40 million ($6,389,925). The term for such loan is 10 years which may be extended upon the agreement of the parties. The loan was remitted to ZLI Holdings on August 30, 2013. In August 2013, ZLI Holdings entered into three loan agreements (“Investor Loan Agreements”) with the following independent third parties, collectively, the Investor Borrowers:

1. Able Capital Holding Co., Ltd., a limited liability company established and registered in Hong Kong (RMB29,500,000 ($4,712,570))

2. Ms. Chunyan Lu, PRC citizen (RMB3,000,000 ($479,244))

3. Ms. Jing Yue, PRC citizen (RMB7,500,000 ($1,198,111))

The term for the above loans is 10 years which may be extended upon the agreement of the parties. Pursuant to the Investor Loan Agreements, each of the Investor Borrowers entered into a binding variable interest entity (“VIE”) agreement with Anhou, CU WFOE and certain existing shareholders of Anhou. The proceeds received from the said loans by the Investor Borrowers were solely used to increase the registered capital of Anhou. On October 20, 2013, the Investor Borrowers increased Anhou’s registered capital by RMB 40 million ($6,389,925).

XML

SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2017

Subsequent Events [Abstract]

Subsequent Events [Text Block]

NOTE 27 – SUBSEQUENT EVENTS

The Company does not receive the full remaining principle repayment of loan receivable from RFL. On November 1 and November 2, 2017, the Company received the interest payment of this loan amount of NTD 300,000 (approximately $9,800) and $23,832, respectively. The management has evaluated RFL's business operation and ability to repay the loan in the future and determine that RFL will be able to repay the loan per newly negotiated terms and assessed that there is no impairment loss on the loan. Therefore, the Company is willing to extend the payment period of RFL loan. 

The Company has evaluated all other subsequent events through the date these consolidated financial statements were issued, and determined that there were no subsequent events or transactions that require recognition or disclosures in the consolidated financial statements.

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Principles of Consolidation

The unaudited accompanying condensed consolidated financial statements include the accounts of China United and its subsidiaries as shown in the organization structure in Note 1. All intercompany transactions and balances have been eliminated in consolidation.

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

The unaudited condensed consolidated financial statements presented herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, the instructions to Form 10-Q and Regulation S-X. Accordingly, the financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments, including normal recurring adjustments, considered necessary for a fair presentation of the financial statements have been included. Operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ended December 31, 2017.  

These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2016, which were included in the Company’s 2016 Annual Report on Form 10-K. The accompanying condensed consolidated balance sheet as of December 31, 2016, has been derived from the Company’s audited consolidated financial statements as of that date.

Reclassification, Policy [Policy Text Block]

Reclassifications

Certain reclassifications have been made to the prior periods’ financial statements and notes to conform to the current period’s presentation. Such reclassifications have no effect on net income as previously reported. Please see Note 23, Reclassifications.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Currency Translations

The Company’s financial statements are presented in U.S. dollars ($), which is the Company’s reporting and functional currency. The functional currencies of the Company’s subsidiaries are NTD, RMB and HKD. Gains and losses resulting from the translation of foreign currency transactions are reflected in the consolidated statements of operations and other comprehensive income (loss). Monetary assets and liabilities denominated in foreign currency are translated at the functional currency rate of exchange prevailing at the balance sheet date. Any differences are taken as a gain or loss on foreign currency translation in the statements of operations. 

In accordance with ASC 830, Foreign Currency Matters, the Company translates the assets and liabilities into U.S. dollars using the rate of exchange prevailing at the balance sheet date and the statements of operations and cash flows are translated at an average rate during the reporting period. Adjustments resulting from the translation from NTD, RMB and HKD into U.S. dollars are recorded in stockholders’ equity as part of accumulated other comprehensive income. The exchange rates used for interim financial statements are as follows:

	Average Exchange Rate for the Nine Months Ended September 30,
	2017		2016
New Taiwan dollar (NTD)	NTD	30.505166	NTD	32.736000
China yuan (RMB)	RMB	6.805734	RMB	6.579240
Hong Kong dollar (HKD)	HKD	7.787013	HKD	7.763280
United States dollar ($)	$	1.000000	$	1.000000

	Exchange Rate at
	September 30, 2017		December 31, 2016
New Taiwan dollar (NTD)	NTD	30.324000	NTD	32.283100
China yuan (RMB)	RMB	6.654500	RMB	6.943700
Hong Kong dollar (HKD)	HKD	7.811000	HKD	7.754340
United States dollar ($)	$	1.000000	$	1.000000

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Values of Financial Instruments

Accounting Standards Codification (ASC) 820, Fair Value Measurement, defines fair value as the price at which an asset could be exchanged or a liability transferred in an orderly transaction between knowledgeable, willing parties in the principal or most advantageous market for the asset or liability. Where available, fair value is based on observable market prices or derived from such prices. Where observable prices or inputs are not available, valuation models are applied which may involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity. See Note 24, Fair Value Measurement.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentration of Risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. As of September 30, 2017, approximately $1,467,000 of the Company’s cash and cash equivalents, time deposits, registered capital deposit and restricted cash held by financial institutions was insured, and the remaining balance of approximately $32,808,000 was not insured.

Three major insurance companies accounted for more than 10% of the Company’s total revenue for the three months ended of September 30, 2017 and 2016. Revenue from these insurance companies were set out as below:

	Three months ended September 30,
	2017					2016
			% of Total					% of Total
	Amount		Revenue			Amount		Revenue
Farglory Life Insurance Co., Ltd.	$	4,275,654		26	%	$	5,291,779		35	%
Taiwan Life Insurance Co., Ltd. (*)		1,911,978		12	%		1,493,069		10	%
TransGlobe Life Insurance Inc.		1,882,461		12	%		(**)		(**)

(*)	Taiwan Life Insurance Co., Ltd. was formerly known as CTBC Life Insurance Co., Ltd.
(**)	Revenue for the three months ended September 30, 2016 had not exceeded 10% or more of the Company’s consolidated revenue of the Company.

For the nine months ended of September 30, 2017 and 2016, the Company’s revenue received from the following companies were set out as below:

	Nine months ended September 30,
	2017					2016
			% of Total					% of Total
	Amount		Revenue			Amount		Revenue
Farglory Life Insurance Co., Ltd.	$	13,019,656		26	%	$	13,969,672		32	%
Taiwan Life Insurance Co., Ltd. (*)		5,881,228		12	%		4,813,813		11	%
TransGlobe Life Insurance Inc.		5,127,561		10	%		(**)		(**)
Fubon Life Insurance Co., Ltd.		(***)		(***)			4,342,377		10	%

(*)	Taiwan Life Insurance Co., Ltd. was formerly known as CTBC Life Insurance Co., Ltd.
(**)	Revenue for the nine months ended September 30, 2016 had not exceeded 10% or more of the Company’s consolidated revenue of the Company.
(***)	Revenue for the nine months ended September 30, 2017 had not exceeded 10% or more of the Company’s consolidated revenue of the Company.

As of September 30, 2017 and December 31, 2016, the Company’s accounts receivable from the following companies were set out as below:

	September 30, 2017					December 31, 2016
			% of Total					% of Total
			Accounts					Accounts
	Amount		Receivable			Amount		Receivable
Farglory Life Insurance Co., Ltd.	$	2,450,793		34	%	$	6,503,843		41	%
Taiwan Life Insurance Co., Ltd (*)		(**)		(**)			1,973,410		13	%
TransGlobe Life Insurance Inc.		801,832		11	%		(**)		(**)
Fubon Life Insurance Co., Ltd		(**)		(**)			1,660,685		11	%

(*) Taiwan Life Insurance Co., Ltd. was formerly known as CTBC Life Insurance Co., Ltd.

(**) Accounts receivable as of September 30, 2017 or December 31, 2016 had not exceeded 10% or more of the consolidated accounts receivable.

With respect to accounts receivable, the Company generally does not have any collateral and does not have any allowance for doubtful accounts.

The Company’s operations are in the PRC, Taiwan and Hong Kong. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic, and legal environments in the PRC, Taiwan and Hong Kong, the foreign currency exchange and the state of each regions. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, Taiwan and Hong Kong, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, and rates and methods of taxation, among other things.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

In January 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” which amends the guidance in U.S. GAAP on the classification and measurement of financial instruments. Changes to the current guidance primarily affect the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the ASU clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The new standard is effective for fiscal years and interim periods beginning after December 15, 2017, and upon adoption, an entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet at the beginning of the first reporting period in which the guidance is effective. Early adoption is not permitted except for the provision to record fair value changes for financial liabilities under the fair value option resulting from instrument-specific credit risk in other comprehensive income. The Company is currently evaluating the impact of adopting this guidance.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The guidance in ASU No. 2016-02 supersedes the lease recognition requirements in ASC Topic 840, Leases (Statement of Financial Accounting Standards No. 13). ASU 2016-02 requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases, along with additional qualitative and quantitative disclosures. ASU No. 2016-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the effect this standard will have on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-07, “Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting.” ASU 2016-07 eliminates the requirement for an investment that qualifies for the use of the equity method of accounting as a result of an increase in the level of ownership or degree of influence to adjust the investment, results of operations and retained earnings retrospectively. ASU 2016-07 will be effective prospectively for the Company for increases in the level of ownership interest or degree of influence that result in the adoption of the equity method that occur during or after the quarter ending December 31, 2017, with early adoption permitted. The impact of this guidance for the Company is dependent on any future increases in the level of ownership interest or degree of influence that result in the adoption of the equity method.

In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net).” ‘The amendments in this ASU are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations by amending certain existing illustrative examples and adding additional illustrative examples to assist in the application of the guidance. The effective date and transition of these amendments is the same as the effective date and transition of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” Public entities should apply the amendments in ASU No. 2014-09 for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein. The Company is currently in the process of evaluating the impact of the adoption of this accounting standards update on its consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments (Topic 230) to Statement of Cash Flows.” ASU No. 2016-15 clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows to reduce diversity in practice with respect to (i) debt prepayment or debt extinguishment costs, (ii) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, (iii) contingent consideration payments made after a business combination, (iv) proceeds from the settlement of insurance claims, (v) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, (vi) distributions received from equity method investees, (vii) beneficial interests in securitization transactions, and (viii) separately identifiable cash flows and application of the predominance principle. ASU No. 2016-15 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017, with early adoption permitted. The adoption of this update is not expected to have a significant impact on the Company’s consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash” (“ASU No. 2016-18”), which amends the current accounting guidance.” The amendments in this update require the amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU No. 2016-18 is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The adoption of ASU No. 2016-18 is not expected to have a material impact on the Company’s consolidated financial statements. 

In January 2017, the FASB issued ASU No. 2017-04 “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which eliminates Step 2 from the goodwill impairment test. Instead, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to the reporting unit. ASU No. 2017-04 is effective for annual or any interim goodwill tests in fiscal years beginning after December 15, 2019. The adoption is not expected to have a material impact on the Company’s consolidated financial statements of the Company.

In July 2017, the FASB issued ASU No. 2017-11, “Earnings Per Share (Topic 260) Distinguishing Liabilities from Equity (Topic 480) Derivatives and Hedging (Topic 815),” which addresses the complexity of accounting for certain financial instruments with down round features. Down round features are features of certain equity-linked instruments (or embedded features) that result in the strike price being reduced on the basis of the pricing of future equity offerings. Current accounting guidance creates cost and complexity for entities that issue financial instruments (such as warrants and convertible instruments) with down round features that require fair value measurement of the entire instrument or conversion option. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments in Part I of this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements.

In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815) Targeted Improvements to Accounting for Hedging Activities.” ASU 2017-12 refines and expands hedge accounting for both financial and commodity risks. This ASU creates more transparency around how economic results are presented, both on the face of the financial statements and in the footnotes. In addition, this ASU makes certain targeted improvements to simplify the application of hedge accounting guidance. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements.

In September 2017, the FASB issued ASU 2017-13, “Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842),” which provides additional implementation guidance on the previously issued ASU 2016-02 Leases (Topic 842). The revenue standard is effective for annual periods beginning after December 15, 2017. ASU 2016-02 requires a lessee to recognize assets and liabilities on the balance sheet for leases with lease terms greater than 12 months. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. Based on a preliminary assessment, the Company expects the adoption of this guidance to have a material impact on its assets and liabilities due to the recognition of right-of-use assets and lease liabilities on its consolidated balance sheet at the beginning of the earliest period presented. The Company is continuing its assessment, which may identify additional impacts this guidance will have on its consolidated financial statements and disclosures.

There were other updates recently issued. The management does not believe that other than disclosed above, the recently issued, but not yet adopted, accounting pronouncements will have a material impact on its financial position results of operations or cash flows.

Going Concern [Policy Text Block]

Going Concern Assessment

The Company has assessed its ability to continue as a going concern for a period of one year from the date of the issuance of these financial statements. Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year from the financial statement issuance date. The Company determined that there are no conditions or events that raise substantial doubt about its ability to continue as a going concern as of the date of the issuance of these financial statements.

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

Schedule of Intercompany Foreign Currency Balances [Table Text Block]

The exchange rates used for interim financial statements are as follows:

	Average Exchange Rate for the Nine Months Ended September 30,
	2017		2016
New Taiwan dollar (NTD)	NTD	30.505166	NTD	32.736000
China yuan (RMB)	RMB	6.805734	RMB	6.579240
Hong Kong dollar (HKD)	HKD	7.787013	HKD	7.763280
United States dollar ($)	$	1.000000	$	1.000000

	Exchange Rate at
	September 30, 2017		December 31, 2016
New Taiwan dollar (NTD)	NTD	30.324000	NTD	32.283100
China yuan (RMB)	RMB	6.654500	RMB	6.943700
Hong Kong dollar (HKD)	HKD	7.811000	HKD	7.754340
United States dollar ($)	$	1.000000	$	1.000000

Schedule Of Revenue From Insurance Services [Table Text Block]

Revenue from these insurance companies were set out as below:

	Three months ended September 30,
	2017					2016
			% of Total					% of Total
	Amount		Revenue			Amount		Revenue
Farglory Life Insurance Co., Ltd.	$	4,275,654		26	%	$	5,291,779		35	%
Taiwan Life Insurance Co., Ltd. (*)		1,911,978		12	%		1,493,069		10	%
TransGlobe Life Insurance Inc.		1,882,461		12	%		(**)		(**)

(*)	Taiwan Life Insurance Co., Ltd. was formerly known as CTBC Life Insurance Co., Ltd.
(**)	Revenue for the three months ended September 30, 2016 had not exceeded 10% or more of the Company’s consolidated revenue of the Company.

For the nine months ended of September 30, 2017 and 2016, the Company’s revenue received from the following companies were set out as below:

	Nine months ended September 30,
	2017					2016
			% of Total					% of Total
	Amount		Revenue			Amount		Revenue
Farglory Life Insurance Co., Ltd.	$	13,019,656		26	%	$	13,969,672		32	%
Taiwan Life Insurance Co., Ltd. (*)		5,881,228		12	%		4,813,813		11	%
TransGlobe Life Insurance Inc.		5,127,561		10	%		(**)		(**)
Fubon Life Insurance Co., Ltd.		(***)		(***)			4,342,377		10	%

(*)	Taiwan Life Insurance Co., Ltd. was formerly known as CTBC Life Insurance Co., Ltd.
(**)	Revenue for the nine months ended September 30, 2016 had not exceeded 10% or more of the Company’s consolidated revenue of the Company.
(***)	Revenue for the nine months ended September 30, 2017 had not exceeded 10% or more of the Company’s consolidated revenue of the Company.

Schedule Of Accounts Receivable From Related Parties [Table Text Block]

As of September 30, 2017 and December 31, 2016, the Company’s accounts receivable from the following companies were set out as below:

	September 30, 2017					December 31, 2016
			% of Total					% of Total
			Accounts					Accounts
	Amount		Receivable			Amount		Receivable
Farglory Life Insurance Co., Ltd.	$	2,450,793		34	%	$	6,503,843		41	%
Taiwan Life Insurance Co., Ltd (*)		(**)		(**)			1,973,410		13	%
TransGlobe Life Insurance Inc.		801,832		11	%		(**)		(**)
Fubon Life Insurance Co., Ltd		(**)		(**)			1,660,685		11	%

(*) Taiwan Life Insurance Co., Ltd. was formerly known as CTBC Life Insurance Co., Ltd.

(**) Accounts receivable as of September 30, 2017 or December 31, 2016 had not exceeded 10% or more of the consolidated accounts receivable.

XML

CASH AND CASH EQUIVALENTS AND TIME DEPOSITS (Tables)

9 Months Ended

Sep. 30, 2017

Cash And Cash Equivalents And Time Deposits [Abstract]

Schedule Of Cash And Cash Equivalents And Time Deposits [Table Text Block]

Cash and cash equivalents and time deposits consisted of the following as of September 30, 2017 and December 31, 2016:

	September 30, 2017		December 31, 2016
Cash and cash equivalents:
Cash in bank and on hand	$	11,663,265	$	17,713,744
Bank time deposits (*)		-		2,455,711
		11,663,265		20,169,455
Bank time deposits (**)		21,475,432		5,352,347
Total cash and cash equivalents and time deposits	$	33,138,697	$	25,521,802

(*) With original maturities less than three months

(**) With original maturities over three months

XML

MARKETABLE SECURITIES (Tables)

9 Months Ended

Sep. 30, 2017

Investments, Debt and Equity Securities [Abstract]

Marketable Securities [Table Text Block]

Marketable securities represent investment in equity securities of listed stocks and funds, which are classified as follows:

	September 30, 2017
			Gross
			Unrealized		Total
	Cost		Losses		Fair Value
Trading:
Funds	$	33,117	$	(250)	$	32,867
	$	33,117	$	(250)	$	32,867

	December 31, 2016
	Fair Value at		Gross
	December 31,		Unrealized		Total
	2015		Gains		Fair Value
Trading:
Stocks	$	28,863	$	9,900	$	38,763
Funds		2,340,219		47,888		2,388,107
	$	2,369,082	$	57,788	$	2,426,870

XML

STRUCTURED DEPOSIT (Tables)

9 Months Ended

Sep. 30, 2017

Structured Deposit Disclosure [Abstract]

Schedule Of Structured Deposits [Table Text Block]

Yield rate will be at 4.1% per annum when the USDCNH is above or equal strike price on the fixing date, or at 3.9% per annum when blow.

	September 30, 2017
	Cost		Gross Unrealized Losses		Total Fair Value
Structured deposit	$	1,278,551	$	(73,389)	$	1,205,162
	$	1,278,551	$	(73,389)	$	1,205,162

XML

OTHER CURRENT ASSETS (Tables)

9 Months Ended

Sep. 30, 2017

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Other Current Assets [Table Text Block]

Other current assets consisted of the following as of September 30, 2017 and December 31, 2016:

	September 30, 2017		December 31, 2016
Loan receivable	$	1,477,060	$	1,486,846
Prepaid expenses		228,193		64,678
Prepaid rent and rent deposits		186,745		199,022
Other receivable		176,386		50,683
Refundable business tax		117,848		17,441
Deferred tax assets-current		58,041		59,233
Interest receivable		30,080		12,648
Total other current assets	$	2,274,353	$	1,890,551

XML

PROPERTY, PLANT AND EQUIPMENT, NET (Tables)

9 Months Ended

Sep. 30, 2017

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

Property, plant and equipment consisted of the following as of September 30, 2017 and December 31, 2016:

	September 30, 2017		December 31, 2016
Office equipment	$	1,234,505	$	1,070,061
Office furniture		101,123		168,658
Leasehold improvements		733,225		581,964
Transportation equipment		139,226		132,344
Other equipment		89,868		87,302
Total		2,297,947		2,040,329
Less: accumulated depreciation		(1,370,885)		(1,113,424)
Total property, plant and equipment, net	$	927,062	$	926,905

XML

INTANGIBLE ASSETS (Tables)

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets [Table Text Block]

As of September 30, 2017 and December 31, 2016, the Company’s intangible assets consisted of the following:

	September 30, 2017		December 31, 2016
Software	$	1,686,544	$	1,500,339
Less: accumulated amortization		(938,934)		(716,120)
Total intangible assets	$	747,610	$	784,219

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

Estimated future intangible amortization as of September 30, 2017 is as follows:

Periods ending September 30,	Amount
2018	$	238,905
2019		214,913
2020		184,439
2021		90,116
2022		18,140
Thereafter		1,097
Total	$	747,610

XML

LONG-TERM INVESTMENTS (Tables)

9 Months Ended

Sep. 30, 2017

Long Term Investment [Abstract]

Available-for-sale Securities [Table Text Block]

As of September 30, 2017 and December 31, 2016, the Company’s long-term investments consisted of the following:

	September 30, 2017		December 31, 2016
Equity investment	$	1,267,475	$	1,190,558
Government bonds		101,475		94,506
Total	$	1,368,950	$	1,285,064

Schedule of Cost Method Investments [Table Text Block]

As of September 30, 2017 and December 31, 2016, the Company had the following equity investment:

					September 30,		December 31,
					2017		2016
Type	Investee	Ownership			Amount		Amount
Cost Method	Genius Insurance Broker Co., Ltd.		15.64	%	$	1,267,475	$	1,190,558

Schedule Of Long Term Investment [Table Text Block]

Law Broker used such amounts to purchase government bonds and has the right to trade such bonds with other debt or equity instruments.

	September 30, 2017
	Fair Value at		Gross		Fair Value at
	December 31,		Unrealized		September 30,
	2016		Gains		2017
Available-for-sale:
Government bonds		94,506		6,969		101,475
	$	94,506	$	6,969	$	101,475

	December 31, 2016
	Fair Value at		Gross		Fair Value at
	December 31,		Unrealized		December 31,
	2015		Gains		2016
Available-for-sale:
Government bonds		94,381		125		94,506
	$	94,381	$	125	$	94,506

XML

OTHER ASSETS (Tables)

9 Months Ended

Sep. 30, 2017

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Other Assets [Table Text Block]

The Company’s other assets consisted of the following as of September 30, 2017 and December 31, 2016:

	September 30, 2017		December 31, 2016
Registered capital deposit	$	1,065,176	$	-
Rental deposits		480,589		445,283
Restricted cash		488,822		248,803
Prepayments		61,206		5,576
Deferred tax assets		52,171		25,364
Others		1,655		1,456
Total other assets	$	2,149,619	$	726,482

XML

TAX PAYABLE (Tables)

9 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Abstract]

Schedule Of Taxes Payable [Table Text Block]

The Company’s tax payable consisted of the following as of September 30, 2017 and December 31, 2016:

	September 30, 2017		December 31, 2016
PRC Tax	$	287,138	$	163,461
Hong Kong Tax		9,091		14,233
Taiwan Tax		2,060,397		2,072,175
Total tax payable	$	2,356,626	$	2,249,869

XML

OTHER CURRENT LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2017

Other Liabilities Disclosure [Abstract]

Schedule Of Other Current Liabilities [Table Text Block]

Other current liabilities are as follows, as of September 30, 2017 and December 31, 2016:

	September 30, 2017		December 31, 2016
Commissions payable to sales professionals	$	5,821,393	$	11,869,181
Unearned revenue (AIATW and Farglory)		1,340,884		2,090,718
Due to previous shareholders of AHFL		-		480,559
Accrued business tax		188,516		469,259
Deferred tax liabilities		125,059		-
Withholding employee personal tax		240,717		362,954
Accrued tax penalties		370,000		370,000
Accrued bonus		1,040,291		1,935,091
Salary payable to administrative staff		464,106		183,066
Accrued labor, health insurance and employee retirement plan		105,015		92,085
Accrued advertisement fee		-		32,525
Other accrued liabilities		724,847		754,471
Total other current liabilities	$	10,420,828	$	18,639,909

XML

LONG-TERM LOANS (Tables)

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments [Table Text Block]

	September 30, 2017		December 31, 2016
Loan B, interest at 8%, maturity date May 15, 2019	$	150,274	$	144,015
Loan C, interest at 8%, maturity date July 20, 2019		115,711		110,892
Total long-term loans	$	265,985	$	254,907

XML

LONG-TERM LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Other Noncurrent Liabilities [Table Text Block]

As of September 30, 2017 and December 31, 2016, long-term liabilities are as follows:

	September 30, 2017		December 31, 2016
Unearned revenue – AIATW	$	4,242,585	$	4,742,272
Unearned revenue – Farglory		-		495,615
Due to pervious shareholders of AHFL		480,559		-
Other long-term liabilities		175,191		77,440
Long-term liabilities	$	4,898,335	$	5,315,327

Schedule Of Contract with Customer [Table Text Block]

The following table presents the amounts recognized as revenue and the refunded for each contract year:

Contract Year	Period	Execution Fees		Revenue Amount			Refund Amount
First	4/15/2013 ~ 9/30/2014	NTD	50,000,000	NTD	28,494,856	(1)	NTD	21,505,144	(1)
Second	1/1/2016 ~ 12/31/2016	NTD	35,000,000	NTD	13,497,750	(2)	NTD	21,502,250	(2)
Third	1/1/2017 ~ 12/31/2017	NTD	33,000,000	NTD	9,254,296	(3)	NTD	-
Fourth	1/1/2018 ~ 12/31/2018	NTD	33,000,000	NTD	-		NTD	-
Fifth	1/1/2019 ~ 12/31/2019	NTD	33,000,000	NTD	-		NTD	-
Sixth	1/1/2020 ~ 12/31/2020	NTD	33,000,000	NTD	-		NTD	-
Seventh	1/1/2021 ~ 12/31/2021	NTD	33,000,000	NTD	-		NTD	-
TOTAL		NTD	250,000,000	NTD	51,246,902		NTD	43,007,394

(1)	The revenue recognition for the first contract year is based on the annual first year premium (“AFYP”) set in Alliance Agreement, which is difference from other contract years. From the second contract year to the seventh contract year, the revenue calculation is based on VONB. The Company recognized the first contract year’s revenue amount of $934,099 (NTD28,494,856) and refunded the amount of nil for the first contract year for the nine months ended September 30, 2017. On December 3, 2015 and February 23, 2016, the Company refunded the amounts of $152,235 (NTD 5,000,000) and $502,532 (NTD 16,505,144) to AIATW, respectively, due to the portion of performance sales targets not met during the first contract year.
(2)	For the nine months ended September 30, 2017, the Company recognized the second contract year’s revenue amount of $442,474 (NTD13,497,750) and refunded the amount of $709,084 (NTD21,502,250) for the same contract period.
(3)	For the nine months ended September 30, 2017, the Company recognized the third contract year’s revenue amount of $303,369 (NTD9,254,296) and refunded the amount nil for the same contract period.

XML

NON-CONTROLLING INTERESTS (Tables)

9 Months Ended

Sep. 30, 2017

Noncontrolling Interest [Abstract]

Schedule of Non-Controlling Interests [Table Text Block]

Non-controlling interests consisted of the following:

						Net Income and Other Comprehensive
Name of Affiliate	% of Non-controlling Interests			As of December 31, 2016		Gain/(Loss) of Non-controlling Interests		As of September 30, 2017
Law Enterprise Co., Ltd. (“Law Enterprise”)		34.05	%	$	17,386	$	446,585	$	463,971
Law Broker		34.05	%		9,621,159		2,148,249		11,769,408
Prime Financial Asia Ltd. (“PFAL”)		49.00	%		232,414		(34,973)		197,441
Max Key Investments Ltd. (“MKI”)		49.00	%		(1,569)		(548)		(2,117)
Prime Asia Corporation Limited. (“PA Taiwan”)		49.00	%		(95,448)		(64,179)		(159,627)
Prime Management Consulting (Nanjing) Co., Ltd. (“PTC Nanjing”)		49.00	%		(2,400)		261		(2,139)
Total				$	9,771,542	$	2,495,395	$	12,266,937

						Net Income and Other Comprehensive
Name of Affiliate	% of Non-controlling Interests			As of December 31, 2015		Gain/(Loss) of Non-controlling Interests		As of December 31, 2016
Law Enterprise		34.05	%	$	199,699	$	(182,313)	$	17,386
Law Broker		34.05	%		7,197,128		2,424,031		9,621,159
PFAL		49.00	%		206,098		26,316		232,414
MKI		49.00	%		(1,065)		(504)		(1,569)
PA Taiwan		49.00	%		(26,292)		(69,156)		(95,448)
PTC Nanjing		49.00	%		(837)		(1,563)		(2,400)
Total				$	7,574,731	$	2,196,811	$	9,771,542

XML

INCOME TAX (Tables)

9 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

Provision (benefit) for income tax for the three months ended September 30, 2017 consisted of:

Three months ended
September 30, 2017	Federal		State		Foreign		Total
Current	$	-	$	-	$	828,532	$	828,532
Deferred		-		-		3,346		3,346
Total	$	-	$	-	$	831,878	$	831,878

Provision (benefit) for income tax for the three months ended September 30, 2016 consisted of:

Three months ended
September 30, 2016	Federal		State		Foreign		Total
Current	$	-	$	-	$	500,787	$	500,787
Deferred		-		-		(43,959)		(43,959)
Total	$	-	$	-	$	456,828	$	456,828

Provision (benefit) for income tax for the nine months ended September 30, 2017 consisted of:

Nine months ended
September 30, 2017	Federal		State		Foreign		Total
Current	$	-	$	-	$	2,365,177	$	2,365,177
Deferred		-		-		(20,030)		(20,030)
Total	$	-	$	-	$	2,345,147	$	2,345,147

Provision (benefit) for income tax for the nine months ended September 30, 2016 consisted of:

Nine months ended
September 30, 2016	Federal		State		Foreign		Total
Current	$	-	$	-	$	1,400,566	$	1,400,566
Deferred		-		-		(65,235)		(65,235)
Total	$	-	$	-	$	1,335,331	$	1,335,331

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

Significant components of the deferred tax assets and liabilities for income tax as of September 30, 2017 and December 31, 2016 consisted of the following:

	As of
	September 30, 2017		December 31, 2016
Deferred tax assets
Net operating loss carry-forward	$	1,101,734	$	993,050
Others		110,212		84,597
Total	$	1,211,946	$	1,077,647
Valuation allowance		(1,101,734)		(993,050)
Net deferred tax assets	$	110,212	$	84,597
Deferred tax assets - current	$	58,041	$	59,233
Deferred tax assets - noncurrent	$	52,171	$	25,364
Deferred tax liabilities - current	$	125,059	$	-

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The following table reconciles the US statutory rates to the Company’s effective tax rate for the three months ended September 30, 2017 and 2016:

	Three Months Ended September 30,
	2017			2016
US statutory rate		34	%		34	%
Tax rate difference		(18)	%		(18)	%
Tax base difference		-	%		-	%
Loss in subsidiaries		7	%		2	%
Un-deductible and non-taxable items		7	%		9	%
Tax per financial statements		30	%		27	%

The following table reconciles the US statutory rates to the Company’s effective tax rate for the nine months ended September 30, 2017 and 2016:

	Nine Months Ended September 30,
	2017			2016
US statutory rate		34	%		34	%
Tax rate difference		(18)	%		(20)	%
Tax base difference		-	%		1	%
Loss in subsidiaries		5	%		7	%
Un-deductible and non-taxable items		6	%		10	%
Tax per financial statements		27	%		32	%

XML

RELATED PARTY TRANSACTIONS (Tables)

9 Months Ended

Sep. 30, 2017

Related Party Transactions [Abstract]

Schedule of Related Party Transactions [Table Text Block]

The related parties listed below loaned money to the Company for working capital. Due to related parties consisted of the following as of September 30, 2017 and December 31, 2016:

	September 30, 2017		December 31, 2016
Due to Mr. Mao (CEO of the Company)	$	401,775	$	361,379
Due to Ms. Lu (Shareholder of Law Anhou)		225,411		-
Due to Xude Investment (Owned by Mr. ChwanHau Li)		-		32,374
Due to Mr. Zhu (Legal Representative of Jiangsu)		2,081		1,994
Due to Yuli Broker (Owned by Ms. Lee)		141		265
Due to Yuli Investment (Owned by Ms. Lee)		141		265
Due to I Health Management Corp*		17,313		3,724
Total	$	646,862	$	400,001

*25% of I Health Management Corp’s shares are owned by Multiple Capital Enterprise. 24% of Multiple Capital Enterprise’s shares are owned by the Company’s management level 

XML

COMMITMENTS (Tables)

9 Months Ended

Sep. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

As of September 30, 2017, total future minimum annual lease payments under operating leases were as follows, by years:

Twelve months ending September 30, 2018	$	2,049,071
Twelve months ending September 30, 2019		1,166,015
Twelve months ending September 30, 2020		245,873
Twelve months ending September 30, 2021		55,088
Twelve months ending September 30, 2022		17,687
Thereafter		-
Total	$	3,533,734

XML

RECLASSIFICATIONS (Tables)

9 Months Ended

Sep. 30, 2017

Accounting Changes and Error Corrections [Abstract]

Schedule of Error Corrections and Prior Period Adjustments [Table Text Block]

The effects of the reclassifications for the prior year is reflected below.

Consolidated Balance Sheet	December 31, 2016
Original:
Cash and cash equivalents	$	25,521,802
Revised:
Cash and cash equivalents	$	20,169,455
Time deposits		5,352,347

	Nine Months Ended
Unaudited Condensed Consolidated Statements of Cash Flow	September 30, 2016
Original:
Net cash used in investing activities	$	(960,166)
Foreign currency translation		942,171
Net increase (decrease) in cash and cash equivalents		3,975,267
Cash and cash equivalents, beginning balance		20,831,824
Cash and cash equivalents, ending balance		24,807,091
Revised:
Cash flows from investing activities:
Purchases of time deposits	$	(7,095,147)
Proceeds from maturities of time deposits		8,025,394
Net cash used in investing activities		(29,919)
Foreign currency translation		596,891
Net increase (decrease) in cash and cash equivalents		4,560,234
Cash and cash equivalents, beginning balance		13,083,357
Cash and cash equivalents, ending balance		17,643,591

XML

FAIR VALUE MEASUREMENT (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]

The following table presents the fair value and carrying value of the Company’s financial assets and liabilities as of September 30, 2017:

	Fair Value						Carrying
	Level 1		Level 2		Level 3		Value
Assets
Bank time deposits	$	-	$	21,475,432	$	-	$	21,475,432
Marketable securities:
Funds		32,867		-		-		32,867
Structured deposit		-		1,205,162		-		1,205,162
Loan receivable (Other current assets in Notes 6)		-		-		1,477,060		1,477,060
Long-term investment:
Equity investment		-		-		1,288,279		1,267,475
Government bonds		-		101,475		-		101,475
Liabilities
Due to related parties	$	-	$	-	$	646,862	$	646,862
Convertible bonds		-		-		200,000		200,000
Long-term loans		-		-		265,985		265,985

The following table presents the fair value and carrying value of the Company’s financial assets and liabilities as of December 31, 2016:

	Fair Value						Carrying
	Level 1		Level 2		Level 3		Value
Assets
Bank time deposits	$	-	$	7,808,058	$	-	$	7,808,058
Marketable securities:
Stocks		38,763		-		-		38,763
Funds		2,388,107		-		-		2,388,107
Loan receivable (Other current assets in Notes 6)		-		-		1,486,846		1,486,846
Long-term investment:
Equity investment		-		-		1,288,279		1,190,558
Government bonds		-		94,506		-		94,506
Liabilities
Due to related parties	$	-	$	-	$	400,001	$	400,001
Convertible bonds		-		-		200,000		200,000
Long-term loans		-		-		254,907		254,907

XML

GEOGRAPHICAL DATA (Tables)

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block]

The geographical distribution of the Company’s financial information for the three months ended September 30, 2017 and 2016 were as follows:

	For three months ended September 30,
Geographical Areas	2017		2016
Revenue
Taiwan	$	13,290,282	$	12,714,857
PRC		2,885,940		2,182,967
Hong Kong		33,633		71,079
Elimination adjustment		479		(17,558)
Total revenue	$	16,210,334	$	14,951,345
Income (loss) from operations
Taiwan	$	2,348,757	$	1,661,872
PRC		284,662		(75,861)
Hong Kong		(21,353)		1,822
Elimination adjustment		35,487		37,848
Total income (loss) from operations	$	2,647,553	$	1,625,681
Depreciation and amortization expenses
Taiwan	$	117,019	$	130,343
PRC		21,415		22,180
Hong Kong		71		72
Elimination adjustment		-		-
Total depreciation and amortization expenses	$	138,505	$	152,595
Interest income
Taiwan	$	101,919	$	38,959
PRC		45		(2,254)
Hong Kong		-		(1)
Elimination adjustment		(22,665)		(5,591)
Total interest income	$	79,299	$	31,113
Interest expenses
Taiwan	$	25,665	$	8,965
PRC		5,293		(1,773)
Hong Kong		-		-
Elimination adjustment		(22,665)		(5,591)
Total interest expenses	$	8,293	$	1,601
Income tax expense
Taiwan	$	707,676	$	456,849
PRC		129,257		(21)
Hong Kong		(5,055)		-
Elimination adjustment		-		-
Total income tax expense	$	831,878	$	456,828
Net income (loss)
Taiwan	$	1,877,187	$	1,298,707
PRC		115,800		(88,813)
Hong Kong		(17,621)		10,781
Elimination adjustment		1,771		2,571
Total net income (loss)	$	1,977,137	$	1,223,246

The geographical distribution of the Company’s financial information for the nine months ended September 30, 2017 and 2016 were as follows:

	For nine months ended September 30,
Geographical Areas	2017		2016
Revenue
Taiwan	$	41,667,540	$	37,093,407
PRC		8,321,471		6,086,426
Hong Kong		106,147		148,664
Elimination adjustment		(10,474)		(39,384)
Total revenue	$	50,084,684	$	43,289,113
Income (loss) from operations
Taiwan	$	7,652,886	$	4,549,826
PRC		447,690		(765,421)
Hong Kong		(59,649)		(12,491)
Elimination adjustment		101,934		100,198
Total income (loss) from operations	$	8,142,861	$	3,872,112
Depreciation and amortization expenses
Taiwan	$	343,413	$	392,943
PRC		66,965		62,224
Hong Kong		215		216
Elimination adjustment		-		-
Total depreciation and amortization expenses	$	410,593	$	455,383
Interest income
Taiwan	$	302,630	$	150,772
PRC		2,314		1,408
Hong Kong		-		-
Elimination adjustment		(58,385)		(14,958)
Total interest income	$	246,559	$	137,222
Interest expenses
Taiwan	$	67,385	$	19,920
PRC		15,562		6,203
Hong Kong		-		-
Elimination adjustment		(58,385)		(14,958)
Total interest expenses	$	24,562	$	11,165
Income tax expense
Taiwan	$	2,133,024	$	1,332,238
PRC		217,178		3,093
Hong Kong		(5,055)		-
Elimination adjustment		-		-
Total income tax expense	$	2,345,147	$	1,335,331
Net income (loss)
Taiwan	$	6,382,356	$	3,678,408
PRC		170,408		(781,726)
Hong Kong		(70,562)		(13,882)
Elimination adjustment		4,762		6,456
Total net income (loss)	$	6,486,964	$	2,889,256

Schedule Of Long Term Liabilities [Table Text Block]

The geographical distribution of the Company’s financial information as of September 30, 2017 and December 31, 2016 were as follows:

	As of
Geographical Areas	September 30, 2017		December 31, 2016
Capital expenditures
Taiwan	$	(317,455)	$	(835,564)
PRC		(29,234)		(148,936)
Hong Kong		-		-
Total capital expenditures	$	(346,689)	$	(984,500)
Long-lived assets
Taiwan	$	1,508,431	$	1,453,772
PRC		165,811		256,704
Hong Kong		430		648
Elimination adjustment		3,746,163		2,071,491
Total long-lived assets	$	3,746,163	$	3,782,615
Reportable assets
Taiwan	$	89,208,044	$	90,388,991
PRC		11,748,446		13,325,433
Hong Kong		434,808		561,708
Elimination adjustment		(50,258,436)		(52,868,589)
Total reportable assets	$	51,132,862	$	51,407,543

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016
New Taiwan Dollar [Member]
Foreign Currency Average Rate Translation	30.505166		32.736
Foreign Currency Exchange Rate, Translation	30.324	32.2831
China Yuan [Member]
Foreign Currency Average Rate Translation	6.805734		6.57924
Foreign Currency Exchange Rate, Translation	6.6545	6.9437
Hong Kong Dollar [Member]
Foreign Currency Average Rate Translation	7.787013		7.763280
Foreign Currency Exchange Rate, Translation	7.811	7.75434
United States Dollar [Member]
Foreign Currency Average Rate Translation	1		1
Foreign Currency Exchange Rate, Translation	1	1

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($)		3 Months Ended			9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016		Sep. 30, 2017		Sep. 30, 2016
Farglory Life Insurance Co., Ltd. [Member]
Financial Services Revenue		$ 4,275,654	$ 5,291,779		$ 13,019,656		$ 13,969,672
Financial Services Percentage		26.00%	35.00%		26.00%		32.00%
Taiwan Life Insurance Co., Ltd [Member]
Financial Services Revenue	[1]	$ 1,911,978	$ 1,493,069		$ 5,881,228		$ 4,813,813
Financial Services Percentage	[1]	12.00%	10.00%		12.00%		11.00%
Fubon Life Insurance Co., Ltd [Member]
Financial Services Revenue						[2]	$ 4,342,377
Financial Services Percentage						[2]	10.00%
TransGlobe Life Insurance Inc [Member]
Financial Services Revenue		$ 1,882,461		[3]	$ 5,127,561			[4]
Financial Services Percentage		12.00%		[3]	10.00%			[4]

[1] Taiwan Life Insurance Co., Ltd. was formerly known as CTBC Life Insurance Co., Ltd.

[2] Revenue for the nine months ended September 30, 2017 had not exceeded 10% or more of the Company’s consolidated revenue of the Company.

[3] Revenue for the three months ended September 30, 2016 had not exceeded 10% or more of the Company’s consolidated revenue of the Company.

[4] Revenue for the nine months ended September 30, 2016 had not exceeded 10% or more of the Company’s consolidated revenue of the Company.

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($)		Sep. 30, 2017		Dec. 31, 2016
Farglory Life Insurance Co., Ltd. [Member]
Accounts Receivable, Net		$ 2,450,793		$ 6,503,843
Percentage Of Accounts Receivable		34.00%		41.00%
Taiwan Life Insurance Co., Ltd [Member]
Accounts Receivable, Net	[2]	$ 0	[1]	$ 1,973,410
Percentage Of Accounts Receivable	[2]		[1]	13.00%
Fubon Life Insurance Co., Ltd [Member]
Accounts Receivable, Net			[1]	$ 1,660,685
Percentage Of Accounts Receivable			[1]	11.00%
TransGlobe Life Insurance Inc [Member]
Accounts Receivable, Net		$ 801,832			[1]
Percentage Of Accounts Receivable		11.00%			[1]

[1] Accounts receivable as of September 30, 2017 or December 31, 2016 had not exceeded 10% or more of the consolidated accounts receivable.

[2] Taiwan Life Insurance Co., Ltd. was formerly known as CTBC Life Insurance Co., Ltd.

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - Credit Concentration Risk [Member]	Sep. 30, 2017 USD ($)
Disclosure of Summary Of Significant Accounting Policies [Line Items]
Cash, FDIC Insured Amount	$ 1,467,000
Cash, Uninsured Amount	$ 32,808,000

XML

CASH AND CASH EQUIVALENTS AND TIME DEPOSITS (Details) - USD ($)		Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Cash in bank and on hand		$ 11,663,265	$ 17,713,744
Bank time deposits	[1]	0	2,455,711
Cash and Cash Equivalents, at Carrying Value		11,663,265	20,169,455	$ 17,643,591	$ 13,083,357
Bank time deposits		21,475,432	5,352,347
Total cash and cash equivalents and time deposits		33,138,697	25,521,802
Bank Time Deposits [Member]
Bank time deposits	[2]	$ 21,475,432	$ 5,352,347

[1] With original maturities less than three months

[2] With original maturities over three months

XML

MARKETABLE SECURITIES (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of Marketable Securities [Line Items]
Cost or Amortized Cost	$ 33,117		$ 2,369,082
Gross Unrealized Gains (Losses)	(250)	$ 57,788
Total Fair Value	32,867	2,426,870
Stocks [Member] | Fair Value, Inputs, Level 1 [Member]
Disclosure of Marketable Securities [Line Items]
Cost or Amortized Cost			28,863
Gross Unrealized Gains (Losses)		9,900
Total Fair Value		38,763
Funds [Member] | Fair Value, Inputs, Level 1 [Member]
Disclosure of Marketable Securities [Line Items]
Cost or Amortized Cost	33,117		$ 2,340,219
Gross Unrealized Gains (Losses)	(250)	47,888
Total Fair Value	$ 32,867	$ 2,388,107

XML

STRUCTURED DEPOSIT (Details) - USD ($)	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Structured Deposit, Amortized Cost Basis	$ 1,278,551
Structured Deposit, Gross Unrealized Gain Loss	(73,389)
Structured Deposits	1,205,162	$ 0
Structured Deposit [Member]
Structured Deposit, Amortized Cost Basis	1,278,551
Structured Deposit, Gross Unrealized Gain Loss	(73,389)
Structured Deposits	$ 1,205,162

XML

STRUCTURED DEPOSIT (Details Textual) - Structured Deposit [Member]	Jul. 07, 2017 USD ($)
Receivable with Imputed Interest, Due Date	Jan. 08, 2018
Receivable with Imputed Interest, Face Amount	$ 8,000,000
Receivable with Imputed Interest, Description	Strike price of the structured deposit is set as 7.3 USDCNH and the fixing date is on January 4, 2018. Yield rate will be at 4.1% per annum when the USDCNH is above or equal strike price on the fixing date, or at 3.9% per annum when blow.

XML

OTHER CURRENT ASSETS (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Disclosure of Other Current Assets [Line Items]
Loan receivable	$ 1,477,060	$ 1,486,846
Prepaid expenses	228,193	64,678
Prepaid rent and rent deposit	186,745	199,022
Other receivable	176,386	50,683
Refundable business tax	117,848	17,441
Deferred tax assets-current	58,041	59,233
Interest receivable	30,080	12,648
Total other current assets	$ 2,274,353	$ 1,890,551

XML

OTHER CURRENT ASSETS (Details Textual)	1 Months Ended
	Oct. 24, 2016 USD ($)	Nov. 02, 2017 USD ($)	Nov. 01, 2017 USD ($)	Nov. 01, 2017 TWD	Sep. 30, 2017 USD ($)	Sep. 30, 2017 TWD	Oct. 24, 2016 TWD
Short-term Debt		$ 23,832	$ 9,800	TWD 300,000
Notes Receivable, Related Parties, Current					$ 1,477,060	TWD 44,790,360
Rich Fountain Limited [Member] | Short Term Loan E [Member]
Short-term Debt	$ 1,486,846						TWD 48,000,000
Debt Instrument, Interest Rate, Effective Percentage	4.50%						4.50%
Debt Instrument, Maturity Date	Apr. 23, 2017

XML

PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Total	$ 2,297,947	$ 2,040,329
Less: accumulated depreciation	(1,370,885)	(1,113,424)
Total property, plant and equipment, net	927,062	926,905
Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Total	1,234,505	1,070,061
Office Furniture [Member]
Property, Plant and Equipment [Line Items]
Total	101,123	168,658
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Total	733,225	581,964
Transportation equipment [Member]
Property, Plant and Equipment [Line Items]
Total	139,226	132,344
Other equipment [Member]
Property, Plant and Equipment [Line Items]
Total	$ 89,868	$ 87,302

XML

PROPERTY, PLANT AND EQUIPMENT, NET (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Property, Plant and Equipment [Member]
Depreciation	$ 78,972	$ 81,267	$ 235,093	$ 231,414

XML

INTANGIBLE ASSETS (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Software	$ 1,686,544	$ 1,500,339
Less accumulated amortization	(938,934)	(716,120)
Total intangible assets	$ 747,610	$ 784,219

XML

INTANGIBLE ASSETS (Details 1) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Finite Lived Intangible Assets Future Amortization Expense [Line Items]
2018	$ 238,905
2019	214,913
2020	184,439
2021	90,116
2022	18,140
Thereafter	1,097
Total	$ 747,610	$ 784,219

XML

INTANGIBLE ASSETS (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Computer Software, Intangible Asset [Member]
Amortization of Intangible Assets	$ 59,533	$ 71,328	$ 175,500	$ 223,969

XML

LONG-TERM INVESTMENTS (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Long Term Investment [Line Items]
Equity Investment	$ 1,267,475	$ 1,190,558
Government Bonds	101,475	94,506
Total	$ 1,368,950	$ 1,285,064

XML

LONG-TERM INVESTMENTS (Details 1) - USD ($)	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Long Term Investment [Line Items]
Investment Type	Cost Method
Investee Name	Genius Insurance Broker Co., Ltd.
Investment Ownership Percentage	15.64%
Long-Term Investment In Equity Amount	$ 1,267,475	$ 1,190,558

XML

LONG-TERM INVESTMENTS (Details 2) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016	Dec. 31, 2015
Long Term Investment [Line Items]
Cost or Amortized Cost		$ 94,506	$ 94,381
Gross Unrealized Gains	$ 6,969	125
Total Fair Value	101,475	94,506
US Treasury and Government [Member]
Long Term Investment [Line Items]
Cost or Amortized Cost		94,506	$ 94,381
Gross Unrealized Gains	6,969	125
Total Fair Value	$ 101,475	$ 94,506

XML

LONG-TERM INVESTMENTS (Details Textual)	Sep. 30, 2017 USD ($)	Sep. 30, 2017 TWD	Dec. 31, 2016 USD ($)
Long Term Investment [Line Items]
Regulatory Requirements Minimum Amount	$ 98,932	TWD 3,000,000	$ 92,928

XML

OTHER ASSETS (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Other Assets [Line Items]
Registered capital deposit	$ 1,065,176	$ 0
Rental deposit	480,589	445,283
Restricted cash	488,822	248,803
Prepayments	61,206	5,576
Deferred tax assets	52,171	25,364
Others	1,655	1,456
Total other assets	$ 2,149,619	$ 726,482

XML

OTHER ASSETS (Details Textual)	Sep. 30, 2017
Register Capital Deposit Percentage	10.00%

XML

TAX PAYABLE (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Taxes Payable [Line Items]
Total tax payable	$ 2,356,626	$ 2,249,869
PRC Tax [Member]
Taxes Payable [Line Items]
Total tax payable	287,138	163,461
Hong Kong Tax [Member]
Taxes Payable [Line Items]
Total tax payable	9,091	14,233
Taiwan Tax [Member]
Taxes Payable [Line Items]
Total tax payable	$ 2,060,397	$ 2,072,175

XML

CONVERTIBLE BONDS (Details Textual) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Dec. 31, 2016	Jun. 23, 2016
Convertible Debt, Noncurrent	$ 0	$ 0	$ 200,000
Convertible Debt [Member]
Debt Conversion, Description		The conversion price shall be 80% of the average closing trading price for the ten (10) business days immediately prior to the conversion date.
Unit Price Per Debt Instrument				$ 100,000
Debt Instrument, Face Amount				$ 10,000,000
Debt Instrument, Interest Rate, Stated Percentage				6.00%
Interest Expense, Debt	$ 3,000	$ 9,000
Non-US [Member] | Convertible Debt [Member]
Debt Instrument, Face Amount				$ 200,000

XML

OTHER CURRENT LIABILITIES (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016
Disclosure of Other Current Liabilities [Line Items]
Commissions payable to sales professionals	$ 5,821,393	$ 11,869,181
Unearned revenue (AIATW and Farglory)	1,340,884	2,090,718
Due to previous shareholders of AHFL	0	480,559
Accrued business tax	188,516	469,259
Deferred tax liabilities	125,059	0	$ 0
Withholding employee personal tax	240,717	362,954
Accrued tax penalties	370,000	370,000
Accrued bonus	1,040,291	1,935,091
Salary payable to administrative staff	464,106	183,066
Accrued labor, health insurance and employee retirement plan	105,015	92,085
Accrued advertisement fee	0	32,525
Other accrued liabilities	724,847	754,471
Total other current liabilities	$ 10,420,828	$ 18,639,909

XML

LONG-TERM LOANS (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Total long-term loans	$ 265,985	$ 254,907
Loan B [Member]
Total long-term loans	150,274	144,015
Loan C [Member]
Total long-term loans	$ 115,711	$ 110,892

XML

LONG-TERM LOANS (Details Textual) - USD ($)		1 Months Ended	3 Months Ended	9 Months Ended
	May 15, 2016	Jul. 20, 2016	Sep. 30, 2017	Sep. 30, 2017	Dec. 31, 2016
Long-term Debt			$ 4,898,335	$ 4,898,335	$ 5,315,327
Loan B [Member]
Debt Instrument, Maturity Date	May 15, 2019
Long-term Debt	$ 150,274
Debt Instrument, Interest Rate, Stated Percentage	8.00%
Interest Expense, Debt			$ 5,293
Loan C [Member]
Debt Instrument, Maturity Date		Jul. 20, 2019
Long-term Debt		$ 115,711
Debt Instrument, Interest Rate, Stated Percentage		8.00%
Interest Expense, Debt				$ 15,562

XML

LONG-TERM LIABILITIES (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Due to pervious shareholders of AHFL	$ 480,559	$ 0
Other long-term liabilities	175,191	77,440
Long-term liabilities	4,898,335	5,315,327
Unearned revenue - AIATW
Debt Instrument [Line Items]
Unearned revenue	4,242,585	4,742,272
Unearned revenue - Farglory
Debt Instrument [Line Items]
Unearned revenue	$ 0	$ 495,615

XML

LONG-TERM LIABILITIES (Details 1)		9 Months Ended
		Sep. 30, 2017 USD ($)	Sep. 30, 2017 TWD	Sep. 30, 2016 USD ($)	Sep. 30, 2016 TWD
Revenue Amount		$ 1,679,942	TWD 51,246,902	$ 0	TWD 0
Strategic Alliance Agreement [Member]
Execution Fees			250,000,000
Revenue Amount			51,246,902
Refund Amount			TWD 43,007,394
First Year [Member] | Strategic Alliance Agreement [Member]
Contract Initiation Date		Apr. 15, 2013	Apr. 15, 2013
Contract Maturity Date		Sep. 30, 2014	Sep. 30, 2014
Execution Fees			TWD 50,000,000
Revenue Amount	[1]		28,494,856
Refund Amount	[1]		TWD 21,505,144
Second Year [Member] | Strategic Alliance Agreement [Member]
Contract Initiation Date		Jan. 01, 2016	Jan. 01, 2016
Contract Maturity Date		Dec. 31, 2016	Dec. 31, 2016
Execution Fees			TWD 35,000,000
Revenue Amount	[2]		13,497,750
Refund Amount	[2]		TWD 21,502,250
Third Year [Member] | Strategic Alliance Agreement [Member]
Contract Initiation Date		Jan. 01, 2017	Jan. 01, 2017
Contract Maturity Date		Dec. 31, 2017	Dec. 31, 2017
Execution Fees			TWD 33,000,000
Revenue Amount	[3]		9,254,296
Refund Amount			TWD 0
Fourth Year [Member] | Strategic Alliance Agreement [Member]
Contract Initiation Date		Jan. 01, 2018	Jan. 01, 2018
Contract Maturity Date		Dec. 31, 2018	Dec. 31, 2018
Execution Fees			TWD 33,000,000
Revenue Amount			0
Refund Amount			TWD 0
Fifth Year [Member] | Strategic Alliance Agreement [Member]
Contract Initiation Date		Jan. 01, 2019	Jan. 01, 2019
Contract Maturity Date		Dec. 31, 2019	Dec. 31, 2019
Execution Fees			TWD 33,000,000
Revenue Amount			0
Refund Amount			TWD 0
Sixth Year [Member] | Strategic Alliance Agreement [Member]
Contract Initiation Date		Jan. 01, 2020	Jan. 01, 2020
Contract Maturity Date		Dec. 31, 2020	Dec. 31, 2020
Execution Fees			TWD 33,000,000
Revenue Amount			0
Refund Amount			TWD 0
Seventh Year [Member] | Strategic Alliance Agreement [Member]
Contract Initiation Date		Jan. 01, 2021	Jan. 01, 2021
Contract Maturity Date		Dec. 31, 2021	Dec. 31, 2021
Execution Fees			TWD 33,000,000
Revenue Amount			0
Refund Amount			TWD 0

[1] The revenue recognition for the first contract year is based on the annual first year premium (“AFYP”) set in Alliance Agreement, which is difference from other contract years. From the second contract year to the seventh contract year, the revenue calculation is based on VONB. The Company recognized the first contract year’s revenue amount of $934,099 (NTD28,494,856) and refunded the amount of nil for the first contract year for the nine months ended September 30, 2017. On December 3, 2015 and February 23, 2016, the Company refunded the amounts of $152,235 (NTD 5,000,000) and $502,532 (NTD 16,505,144) to AIATW, respectively, due to the portion of performance sales targets not met during the first contract year.

[2] For the nine months ended September 30, 2017, the Company recognized the second contract year’s revenue amount of $442,474 (NTD13,497,750) and refunded the amount of $709,084 (NTD21,502,250) for the same contract period.

[3] For the nine months ended September 30, 2017, the Company recognized the third contract year’s revenue amount of $303,369 (NTD9,254,296) and refunded the amount nil for the same contract period.

XML

LONG-TERM LIABILITIES (Details Textual)			1 Months Ended	9 Months Ended
	Jun. 14, 2017 TWD	Jun. 10, 2013 TWD	Apr. 20, 2016 TWD	Sep. 30, 2017 USD ($)	Sep. 30, 2017 TWD	Sep. 30, 2016 USD ($)	Sep. 30, 2016 TWD	Sep. 30, 2017 TWD	Mar. 12, 2017 USD ($)	Mar. 12, 2017 TWD	Dec. 31, 2016 USD ($)	Feb. 23, 2016 USD ($)	Feb. 23, 2016 TWD	Dec. 03, 2015 USD ($)	Dec. 03, 2015 TWD	Jun. 10, 2013 USD ($)	Jun. 10, 2013 TWD
Debt Instrument [Line Items]
Deferred Revenue, Current				$ 1,340,884							$ 2,090,718
Accrued Long-term Liabilities				175,191							77,440
Deferred Revenue, Revenue Recognized				1,679,942	TWD 51,246,902	$ 0	TWD 0
Basic Business Promotion Fees | TWD	TWD 330,000,000
Service Agreements [Member]
Debt Instrument [Line Items]
Deferred Revenue, Noncurrent											495,615
Expected Consulting Service Fee Per Year | TWD			TWD 4,000,000
Deferred Revenue, Current				659,544							123,904
Expected Aggregate Consulting Service Fee Five Year | TWD			TWD 20,000,000
Supplementary Agreement [Member]
Debt Instrument [Line Items]
Accrued Long-term Liabilities				175,191							77,440
Strategic Alliance Agreement [Member]
Debt Instrument [Line Items]
Execution Fee Amount Paid																$ 8,326,700	TWD 250,000,000
Tax On Execution Fee | TWD		TWD 11,904,762
Strategic Alliance Agreement [Member] | First Year [Member]
Debt Instrument [Line Items]
Deferred Revenue, Revenue Recognized				934,099	28,494,856
Strategic Alliance Agreement [Member] | Second Year [Member]
Debt Instrument [Line Items]
Customer Refund Liability, Noncurrent				709,084				TWD 21,502,250
Deferred Revenue, Revenue Recognized				442,474	13,497,750
Strategic Alliance Agreement [Member] | Third Year [Member]
Debt Instrument [Line Items]
Deferred Revenue, Revenue Recognized				303,369	TWD 9,254,296
AHFL [Member]
Debt Instrument [Line Items]
Due to Officers or Stockholders									$ 480,559	TWD 15,000,000
AIATW [Member]
Debt Instrument [Line Items]
Deferred Revenue, Noncurrent				4,242,585							4,742,272
Customer Refund Liability, Noncurrent												$ 502,532	TWD 16,505,144	$ 152,235	TWD 5,000,000
Deferred Revenue, Current				$ 681,340							$ 1,966,814

XML

PREFERRED STOCK (Details Textual) - USD ($)	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Class of Stock [Line Items]
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Preferred Stock, Shares Outstanding	1,000,000	1,000,000
Preferred Stock, Shares Issued	1,000,000	1,000,000
Common Stock [Member]
Class of Stock [Line Items]
Equity, Fair Value Disclosure, Total	$ 200,000
Preferred Stock [Member]
Class of Stock [Line Items]
Equity, Fair Value Adjustment	25,000
Equity, Fair Value Disclosure, Total	$ 225,000
Series A Preferred Stock [Member]
Class of Stock [Line Items]
Preferred Stock, Shares Outstanding	1,000,000
Preferred Stock, Shares Issued	1,000,000

XML

STATUTORY RESERVES (Details Textual)	9 Months Ended
	Sep. 30, 2017
Equity [Line Items]
Statutory Common Reserve, Contribution Percentage Of Net Income	10.00%
Statutory Common Reserve, Contribution Percentage On Net Profit	10.00%
Statutory Common Reserve Limitation Minimum Percentage On Registered Capital	25.00%
Statutory Common Reserve Limitation, Maximum Percentage On Registered Capital	50.00%

XML

NON-CONTROLLING INTERESTS (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016	Dec. 31, 2015
Non-Controlling Interests [Line Items]
Noncontrolling Interests	$ 12,266,937		$ 12,266,937		$ 9,771,542	$ 7,574,731
Adjustments/Net Income of Non-controlling Interests	$ 692,895	$ 714,661	$ 2,495,395	$ 1,710,053	$ 2,196,811
Law Enterprise Co., Ltd. (“Law Enterprise”) [Member]
Non-Controlling Interests [Line Items]
% of Non-controlling Interests	34.05%		34.05%		34.05%
Noncontrolling Interests	$ 463,971		$ 463,971		$ 17,386	199,699
Adjustments/Net Income of Non-controlling Interests			$ 446,585		$ (182,313)
Law Broker [Member]
Non-Controlling Interests [Line Items]
% of Non-controlling Interests	34.05%		34.05%		34.05%
Noncontrolling Interests	$ 11,769,408		$ 11,769,408		$ 9,621,159	7,197,128
Adjustments/Net Income of Non-controlling Interests			$ 2,148,249		$ 2,424,031
Prime Financial Asia Ltd. (“PFAL”) [Member]
Non-Controlling Interests [Line Items]
% of Non-controlling Interests	49.00%		49.00%		49.00%
Noncontrolling Interests	$ 197,441		$ 197,441		$ 232,414	206,098
Adjustments/Net Income of Non-controlling Interests			$ (34,973)		$ 26,316
Max Key Investments Ltd. (“MKI”) [Member]
Non-Controlling Interests [Line Items]
% of Non-controlling Interests	49.00%		49.00%		49.00%
Noncontrolling Interests	$ (2,117)		$ (2,117)		$ (1,569)	(1,065)
Adjustments/Net Income of Non-controlling Interests			$ (548)		$ (504)
Prime Asia Corporation Limited. (“PA Taiwan”) [Member]
Non-Controlling Interests [Line Items]
% of Non-controlling Interests	49.00%		49.00%		49.00%
Noncontrolling Interests	$ (159,627)		$ (159,627)		$ (95,448)	(26,292)
Adjustments/Net Income of Non-controlling Interests			$ (64,179)		$ (69,156)
Prime Management Consulting (Nanjing) Co., Ltd. (“PTC Nanjing”) [Member]
Non-Controlling Interests [Line Items]
% of Non-controlling Interests	49.00%		49.00%		49.00%
Noncontrolling Interests	$ (2,139)		$ (2,139)		$ (2,400)	$ (837)
Adjustments/Net Income of Non-controlling Interests			$ 261		$ (1,563)

XML

INCOME TAX (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Current	$ 828,532	$ 500,787	$ 2,365,177	$ 1,400,566
Deferred	3,346	(43,959)	(20,030)	(65,235)
Total	831,878	456,828	2,345,147	1,335,331
Federal [Member]
Current	0	0	0	0
Deferred	0	0	0	0
Total	0	0	0	0
State [Member]
Current	0	0	0	0
Deferred	0	0	0	0
Total	0	0	0	0
Foreign [Member]
Current	828,532	500,787	2,365,177	1,400,566
Deferred	3,346	(43,959)	(20,030)	(65,235)
Total	$ 831,878	$ 456,828	$ 2,345,147	$ 1,335,331

XML

INCOME TAX (Details 1) - USD ($)	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016
Deferred tax assets
Net operating loss carry-forward	$ 1,101,734	$ 993,050
Others	110,212	84,597
Total	1,211,946	1,077,647
Valuation allowance	(1,101,734)	(993,050)
Net deferred tax assets	110,212	84,597
Deferred tax assets - current	58,041	59,233
Deferred tax assets - noncurrent	52,171	25,364
Deferred tax liabilities - current	$ 125,059	$ 0	$ 0

XML

INCOME TAX (Details 2)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Schedule of Income Tax [Line Items]
US statutory rate	34.00%	34.00%	34.00%	34.00%
Tax rate difference	(18.00%)	(18.00%)	(18.00%)	(20.00%)
Tax base difference	0.00%	0.00%	0.00%	1.00%
Loss in subsidiaries	7.00%	2.00%	5.00%	7.00%
Un-deductible and non-taxable items	7.00%	9.00%	6.00%	10.00%
Tax per financial statements	30.00%	27.00%	27.00%	32.00%

XML

INCOME TAX (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Schedule of Income Tax [Line Items]
Tax per financial statements	30.00%	27.00%	27.00%	32.00%
Tax Basis Percentage On Revenue			10.00%
Deferred Tax Liabilities, Net, Current	$ 125,059	$ 0	$ 125,059	$ 0	$ 0
Deferred Tax Assets, Other	110,212		$ 110,212		84,597
Hong Kong [Member]
Schedule of Income Tax [Line Items]
Tax per financial statements			16.50%
PRC [Member]
Schedule of Income Tax [Line Items]
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent			100.00%
Subsidiary [Member]
Schedule of Income Tax [Line Items]
Tax per financial statements			25.00%
Taiwan [Member]
Schedule of Income Tax [Line Items]
Tax per financial statements			17.00%
Additional Income Tax Rate On Undistributed Earnings			10.00%
Deferred Tax Assets, Other	$ 110,212		$ 110,212		$ 84,597

XML

RELATED PARTY TRANSACTIONS (Details) - USD ($)		Sep. 30, 2017	Dec. 31, 2016
Related Party Transaction [Line Items]
Due to related parties, Total		$ 646,862	$ 400,001
Mr.Mao [Member]
Related Party Transaction [Line Items]
Due to related parties, Total		401,775	361,379
Ms. Lu [Member]
Related Party Transaction [Line Items]
Due to related parties, Total		225,411	0
Xude Investment [Member]
Related Party Transaction [Line Items]
Due to related parties, Total		0	32,374
Mr.Zhu [Member]
Related Party Transaction [Line Items]
Due to related parties, Total		2,081	1,994
Yuli Broker [Member]
Related Party Transaction [Line Items]
Due to related parties, Total		141	265
Yuli Investment [Member]
Related Party Transaction [Line Items]
Due to related parties, Total		141	265
I Health Management [Member]
Related Party Transaction [Line Items]
Due to related parties, Total	[1]	$ 17,313	$ 3,724

[1] 25% of I Health Management Corp’s shares are owned by Multiple Capital Enterprise. 24% of Multiple Capital Enterprise’s shares are owned by the Company’s management level

XML

RELATED PARTY TRANSACTIONS (Details Textual)			1 Months Ended				3 Months Ended		9 Months Ended
	Dec. 07, 2016 USD ($)	Dec. 07, 2016 TWD	Jul. 02, 2016 USD ($)	Jul. 02, 2016 TWD	May 02, 2016 USD ($)	May 02, 2016 TWD	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2015 TWD
Related Party Transaction [Line Items]
General and Administrative Expense							$ 3,708,037	$ 3,359,674	$ 10,714,341	$ 9,336,015
Director [Member]
Related Party Transaction [Line Items]
Sponsor Fees	$ 58,000	TWD 1,800,000
General and Administrative Expense							13,619		42,998
Prime Technology Crop [Member]
Related Party Transaction [Line Items]
Revenues									33,874
Accounts Receivable, Net							17,274		17,274
I Health Management Corp [Member]
Related Party Transaction [Line Items]
Sponsor Fees					$ 42,000	TWD 1,275,000
Other Cost of Services									13,269
Yuli Broker [Member]
Related Party Transaction [Line Items]
Operating Leases, Income Statement, Minimum Lease Revenue			$ 590	TWD 18,000
Rental Income, Nonoperating							141		421
Yuli Investment [Member]
Related Party Transaction [Line Items]
Operating Leases, Income Statement, Minimum Lease Revenue			$ 590	TWD 18,000
Rental Income, Nonoperating							$ 141		421
Genius Holdings Financial Limited [Member]
Related Party Transaction [Line Items]
Notes Payable, Related Parties											$ 23,544
Genius Investment Consultant Co., Ltd. [Member]
Related Party Transaction [Line Items]
Notes Payable, Related Parties											$ 9,393	TWD 285,083
Xude Investment [Member]
Related Party Transaction [Line Items]
Debt Instrument, Decrease, Forgiveness									$ 32,937

XML

COMMITMENTS (Details)	Sep. 30, 2017 USD ($)
Other Commitments [Line Items]
Twelve months ending September 30, 2018	$ 2,049,071
Twelve months ending September 30, 2019	1,166,015
Twelve months ending September 30, 2020	245,873
Twelve months ending September 30, 2021	55,088
Twelve months ending September 30, 2022	17,687
Thereafter	0
Total	$ 3,533,734

XML

COMMITMENTS (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Other Commitments [Line Items]
Operating Leases, Rent Expense	$ 595,277	$ 526,390	$ 1,832,335	$ 1,557,725

XML

RECLASSIFICATIONS (Details) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Dec. 31, 2016
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cash and cash equivalents	$ 11,663,265	$ 13,083,357	$ 11,663,265	$ 20,169,455
Time deposits			$ 21,475,432	5,352,347
Cash flows from investing activities:
Purchases of time deposits	(24,572,262)	(7,095,147)
Proceeds from maturities of time deposits	8,888,669	8,025,394
Net cash used in investing activities	(16,065,111)	(29,919)
Foreign currency translation	1,159,884	596,891
Net increase (decrease) in cash and cash equivalents	(8,506,190)	4,560,234
Cash and cash equivalents, beginning balance	20,169,455	13,083,357
Cash and cash equivalents, ending balance	11,663,265	17,643,591
Scenario, Previously Reported [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cash and cash equivalents	25,521,802	20,831,824		$ 25,521,802
Cash flows from investing activities:
Net cash used in investing activities		(960,166)
Foreign currency translation		942,171
Net increase (decrease) in cash and cash equivalents		3,975,267
Cash and cash equivalents, beginning balance	$ 25,521,802	20,831,824
Cash and cash equivalents, ending balance		$ 24,807,091

XML

FAIR VALUE MEASUREMENT (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Assets
Bank time deposits	$ 21,475,432	$ 5,352,347
Marketable securities:
Marketable Securities	32,867	2,426,870
Structured Deposits	1,205,162	0
Loan receivable (Other current assets in Notes 6)	1,477,060	1,486,846
Long-term investment:
Equity investment	1,267,475	1,190,558
Government bonds	101,475	94,506
Liabilities
Due to related parties	646,862	400,001
Convertible bonds	200,000	0
Long-term loans	265,985	254,907
Fair Value, Inputs, Level 1 [Member]
Assets
Bank time deposits	0	0
Marketable securities:
Marketable Securities	32,867	38,763
Structured Deposits	0	2,388,107
Loan receivable (Other current assets in Notes 6)	0	0
Long-term investment:
Equity investment	0	0
Government bonds	0	0
Liabilities
Due to related parties	0	0
Convertible bonds	0	0
Long-term loans	0	0
Fair Value, Inputs, Level 2 [Member]
Assets
Bank time deposits	21,475,432	7,808,058
Marketable securities:
Marketable Securities	0	0
Structured Deposits	1,205,162	0
Loan receivable (Other current assets in Notes 6)	0	0
Long-term investment:
Equity investment	0	0
Government bonds	101,475	94,506
Liabilities
Due to related parties	0	0
Convertible bonds	0	0
Long-term loans	0	0
Fair Value, Inputs, Level 3 [Member]
Assets
Bank time deposits	0	0
Marketable securities:
Marketable Securities	0	0
Structured Deposits	0	0
Loan receivable (Other current assets in Notes 6)	1,477,060	1,486,846
Long-term investment:
Equity investment	1,288,279	1,288,279
Government bonds	0	0
Liabilities
Due to related parties	646,862	400,001
Convertible bonds	200,000	200,000
Long-term loans	$ 265,985	$ 254,907

XML

FAIR VALUE MEASUREMENT (Details Textual)	9 Months Ended
	Sep. 30, 2017
Structured Deposits [Member]
Receivable with Imputed Interest, Description	The fair value of the structured deposit is determined based on present value of the structured deposit, using annum yield of 3.9% or 4.1%, depending on the strike price. The strike price is at 7.3 USDCNH.
Convertible Debt [Member]
Debt Instrument, Convertible, Threshold Trading Days	10
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger	80.00%
Income Approach Valuation Technique [Member] | Equity Method Investments [Member]
Fair Value Inputs, Long-term Revenue Growth Rate	2.00%
Fair Value Input Liquidity Discount Rate	25.00%
Maximum [Member] | Income Approach Valuation Technique [Member] | Equity Method Investments [Member]
Fair Value Inputs, Discount Rate	15.00%
Minimum [Member] | Income Approach Valuation Technique [Member] | Equity Method Investments [Member]
Fair Value Inputs, Discount Rate	14.79%
Rich Fountain Limited [Member]
Receivable with Imputed Interest, Effective Yield (Interest Rate)	4.50%

XML

GEOGRAPHICAL DATA (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue
Total revenue	$ 16,210,334	$ 14,951,345	$ 50,084,684	$ 43,289,113
Income (loss) from operations
Total income (loss) from operations	2,647,553	1,625,681	8,142,861	3,872,112
Depreciation and amortization expenses
Total depreciation and amortization expenses	138,505	152,595	410,593	455,383
Interest income
Total interest income	79,299	31,113	246,559	137,222
Interest expenses
Total interest expenses	8,293	1,601	24,562	11,165
Income tax expenses
Total income tax expenses	831,878	456,828	2,345,147	1,335,331
Net income (loss)
Total net income (loss)	1,977,137	1,223,246	6,486,964	2,889,256
Elimination adjustment [Member]
Revenue
Total revenue	479	(17,558)	(10,474)	(39,384)
Income (loss) from operations
Total income (loss) from operations	35,487	37,848	101,934	100,198
Depreciation and amortization expenses
Total depreciation and amortization expenses	0	0	0	0
Interest income
Total interest income	(22,665)	(5,591)	(58,385)	(14,958)
Interest expenses
Total interest expenses	(22,665)	(5,591)	(58,385)	(14,958)
Income tax expenses
Total income tax expenses	0	0	0	0
Net income (loss)
Total net income (loss)	1,771	2,571	4,762	6,456
Taiwan [Member]
Revenue
Total revenue	13,290,282	12,714,857	41,667,540	37,093,407
Income (loss) from operations
Total income (loss) from operations	2,348,757	1,661,872	7,652,886	4,549,826
Depreciation and amortization expenses
Total depreciation and amortization expenses	117,019	130,343	343,413	392,943
Interest income
Total interest income	101,919	38,959	302,630	150,772
Interest expenses
Total interest expenses	25,665	8,965	67,385	19,920
Income tax expenses
Total income tax expenses	707,676	456,849	2,133,024	1,332,238
Net income (loss)
Total net income (loss)	1,877,187	1,298,707	6,382,356	3,678,408
PRC [Member]
Revenue
Total revenue	2,885,940	2,182,967	8,321,471	6,086,426
Income (loss) from operations
Total income (loss) from operations	284,662	(75,861)	447,690	(765,421)
Depreciation and amortization expenses
Total depreciation and amortization expenses	21,415	22,180	66,965	62,224
Interest income
Total interest income	45	(2,254)	2,314	1,408
Interest expenses
Total interest expenses	5,293	(1,773)	15,562	6,203
Income tax expenses
Total income tax expenses	129,257	(21)	217,178	3,093
Net income (loss)
Total net income (loss)	115,800	(88,813)	170,408	(781,726)
Hong Kong [Member]
Revenue
Total revenue	33,633	71,079	106,147	148,664
Income (loss) from operations
Total income (loss) from operations	(21,353)	1,822	(59,649)	(12,491)
Depreciation and amortization expenses
Total depreciation and amortization expenses	71	72	215	216
Interest income
Total interest income	0	(1)	0	0
Interest expenses
Total interest expenses	0	0	0	0
Income tax expenses
Total income tax expenses	(5,055)	0	(5,055)	0
Net income (loss)
Total net income (loss)	$ (17,621)	$ 10,781	$ (70,562)	$ (13,882)

XML

GEOGRAPHICAL DATA (Details 1) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Capital expenditures
Total capital expenditures	$ (346,689)	$ (984,500)
Long-lived assets
Total long-lived assets	3,746,163	3,782,615
Reportable assets
Total reportable assets	51,132,862	51,407,543
Elimination adjustment [Member]
Long-lived assets
Total long-lived assets	3,746,163	2,071,491
Reportable assets
Total reportable assets	(50,258,436)	(52,868,589)
Taiwan [Member]
Capital expenditures
Total capital expenditures	(317,455)	(835,564)
Long-lived assets
Total long-lived assets	1,508,431	1,453,772
Reportable assets
Total reportable assets	89,208,044	90,388,991
PRC [Member]
Capital expenditures
Total capital expenditures	(29,234)	(148,936)
Long-lived assets
Total long-lived assets	165,811	256,704
Reportable assets
Total reportable assets	11,748,446	13,325,433
Hong Kong [Member]
Capital expenditures
Total capital expenditures	0	0
Long-lived assets
Total long-lived assets	430	648
Reportable assets
Total reportable assets	$ 434,808	$ 561,708

XML

LOAN TO SHAREHOLDERS (Details Textual)		1 Months Ended			9 Months Ended
	Jun. 09, 2013 USD ($)	Oct. 20, 2013 USD ($)	Oct. 20, 2013 CNY (¥)	Apr. 27, 2013 CNY (¥)	Sep. 30, 2017 USD ($)	Sep. 30, 2017 TWD	Dec. 31, 2016 USD ($)	Aug. 31, 2013 USD ($)	Aug. 31, 2013 CNY (¥)	Jun. 09, 2013 CNY (¥)	Apr. 27, 2013 USD ($)	Apr. 27, 2013 CNY (¥)
Loan To Shareholders [Line Items]
Capital Units, Value											$ 8,000,000	¥ 50,000,000
Long-term Debt					$ 4,898,335		$ 5,315,327
Regulatory Requirements Minimum Amount					$ 98,932	TWD 3,000,000	$ 92,928
Investor Loan Agreements [Member]
Loan To Shareholders [Line Items]
Debt Instrument, Term					10 years
AHFL [Member]
Loan To Shareholders [Line Items]
Debt Instrument, Term	10 years
Able Capital Holding Co Ltd [Member]
Loan To Shareholders [Line Items]
Long-term Debt								$ 4,712,570	¥ 29,500,000
Anhou [Member]
Loan To Shareholders [Line Items]
Regulatory Requirements Minimum Amount											$ 1,600,000	¥ 10,000,000
Increase Decrease In Registered Capital		$ 6,389,925	¥ 40,000,000	¥ 50,000,000
Loans Receivable, Net, Total	$ 6,389,925									¥ 40,000,000
Ms Yue Jing [Member]
Loan To Shareholders [Line Items]
Long-term Debt								1,198,111	7,500,000
Ms Chunyan Lu [Member]
Loan To Shareholders [Line Items]
Long-term Debt								$ 479,244	¥ 3,000,000

XML

SUBSEQUENT EVENTS (Details Textual)	Nov. 02, 2017 USD ($)	Nov. 01, 2017 USD ($)	Nov. 01, 2017 TWD
Subsequent Event [Member] | Rich Fountain Limited [Member]
Subsequent Event [Line Items]
Proceeds from Interest Received	$ 23,832	$ 9,800	TWD 300,000