10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended September 30, 2014

or

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

For the transition period from _________________________ to_________________________

Commission File Number:333-176329

TAKUNG ART CO., LTD

(Exact name of registrant as specified in its charter)

333-176329	26-4731758
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

Flat/RM 03-04 20/F Hutchison House 10 Harcourt Road, Central, Hong Kong
(Address of principal executive offices)	(Zip Code)

+852 66142555

(Registrant’s telephone number, including area code)

CARDIGANT MEDICAL INC.

1500 Rosecrans Avenue, St 500, Manhattan Beach, California 90266

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of theSecurities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required tofile such reports), and (2) has been subject to such filing requirements for the past 90 days. xYes ¨ No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, everyInteractive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during thepreceding 12 months (or for such shorter period that the registrant was required to submit and post such files). xYes ¨ No

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

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

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

¨Yes xNo

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d)of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.     ¨Yes ¨ No

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

The number of shares of common stock issued and outstanding as of November 14, 2014 is 233,306,662.

FORM 10-Q

TAKUNG ART CO, LTD

INDEX

		Page
PART I.	Financial Information	3
	Item 1.  Financial Statements (Unaudited).	3
	Item 2.  Management’s Discussion and Analysis of Financial Condition and results of Operation.	11
	Item 3.  Quantitative and Qualitative Disclosures About Market Risk.	16
	Item 4.  Controls and Procedures.	16
PART II.	Other Information	16
	Item 1.  Legal Proceedings.	16
	Item 1A. Risk Factors.	16
	Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds.	17
	Item 3.  Defaults Upon Senior Securities.	17
	Item 4.  Mine Safety Disclosures.	17
	Item 5.  Other Information.	17
	Item 6.  Exhibits.	17
	Signatures	18

2

PART I –FINANCIAL INFORMATION

Item 1. Financial Statements

TAKUNG ART CO., LTD

FORMERLY KNOWN AS CARDIGANT MEDICAL INC.

(A DEVELOPMENT STAGE COMPANY)

CONDENSED BALANCE SHEETS 

	September 30, 2014  Unaudited			December 31, 2013
ASSETS
CURRENT ASSETS
Cash & equivalents	$	-		$	3,124
Prepaid expenses		-			17,378
Deposits		-			1,195
Total current assets		-			21,697
PROPERTY AND EQUIPMENT, net		-			4,903
INTANGIBLES, net		-			2,363
TOTAL ASSETS	$	-		$	28,963
LIABILITIES AND STOCKHOLDERS' (DEFICIT)
CURRENT LIABILITIES
Accounts payable	$	649		$	6,519
Accrued expenses		-			66,185
Accrued officer compensation		-			559,000
Due to stockholder		-			14,938
Total current liabilities		649			646,642
TOTAL LIABILITIES		649			646,642
STOCKHOLDERS'  (DEFICIT)
Common stock, 50,000,000 shares authorized; $0.001 par value; 23,330,662 shares issued and outstanding at September 30, 2014; 23,138,310 shares issued and outstanding at December 31, 2013		23,331			23,138
Additional paid-in capital		1,284,934			464,205
Deficit accumulated during the development stage		(1,308,914	)		(1,105,022	)
Total stockholders' (deficit)		(649	)		(617,679	)
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT)	$	-		$	28,963

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

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TAKUNG ART CO., LTD

FORMERLY KNOWN AS CARDIGANT MEDICAL INC.

(A DEVELOPMENT STAGE COMPANY)

CONDENSED STATEMENTS OF OPERATIONS – Unaudited

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,						From Date of Inception  (April 17, 2009) to September 30, 2014
	2014			2013			2014			2013
REVENUE	$	-		$	-		$	-		$	-		$	-
OPERATING EXPENSES
Research and development		3,103			41,364			88,590			144,652			884,028
Selling, general, and administrative		1,769			25,737			114,030			98,739			563,087
Total operating expenses		4,872			67,101			202,620			243,391			1,447,115
LOSS FROM OPERATIONS		(4,872	)		(67,101	)		(202,620	)		(243,391	)		(1,447,115	)
OTHER INCOME (EXPENSES)
Grant from National Institute of Health		-			-			-			-			151,247
Interest income		-			-			-			-			381
Interest (expense)		-			(185	)		(472	)		(3,484	)		(9,427	)
Total other income (expenses)		-			(185	)		(472	)		(3,484	)		142,201
NET INCOME (LOSS) BEFORE INCOME TAXES		(4,872	)		(67,286	)		(203,092	)		(246,875	)		(1,304,914	)
PROVISION FOR INCOME TAXES		-			-			(800	)		(800	)		(4,000	)
NETLOSS		(4,872	)	$	(67,286	)	$	(203,892	)	$	(247,675	)	$	(1,308,914	)
LOSS PER COMMON SHARE -   BASIC AND DILUTED	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.01	)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING		23,330,662			23,079,751			23,256,365			23,063,951

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

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TAKUNG ART CO., LTD

FORMERLY KNOWN AS CARDIGANT MEDICAL INC.

(A DEVELOPMENT STAGE COMPANY)

CONDENSED STATEMENTS OF CASH FLOWS – Unaudited 

	For the Nine Months Ended September 30,						From Date of  Inception (April 17, 2009) to September 30,
	2014			2013			2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(203,892	)	$	(247,675	)	$	(1,308,914	)
Adjustments to reconcile net loss to net cash used in operating activities
Stock-based compensation		55,155			36,895			177,257
Depreciation expense		1,109			1,514			4,301
Net changes in operating assets and liabilities:
Decrease (increase) in prepaid expenses		14,396			211			(3,732	)
Increase in deposits		-			-			(1,195	)
Increase in accounts payable		29,074			1,193			44,490
Increase in accrued expenses		5,435			8,866			71,621
Increase in accrued officer compensation		60,000			81,000			619,000
Net cash used in operating activities		(38,723	)		(117,996	)		(397,172	)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase and reinvestments in certificate of deposit		-			-			(100,381	)
Redemption of certificate of deposit		-			-			100,381
Investment in intellectual property		(3,617	)		-			(5,980	)
Purchase of equipment and computer software		-			(3,600	)		(8,095	)
Net cash used in investing  activities		(3,617	)		(3,600	)		(14,075	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock		51,516			85,700			367,508
Advances from related party		18,400			26,978			227,883
Repayments on related-party advances		(30,700	)		(44,200	)		(184,144	)
Net cash provided by financing activities		39,216			68,478			411,247
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(3,124	)		(53,118	)		-
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD		3,124			54,194			-
CASH AND CASH EQUIVALENTS - END OF PERIOD	$	-		$	1,076		$	-
SUPPLEMENTAL DISCLOSURES OF CASH FLOW ACTIVITY
Cash paid during the year for income taxes	$	-		$	800		$	2,410
Cash paid during the year for interest expense	$	-		$	-		$	4,985
SUPPLEMENTARY SCHEDULE OF NONCASH INVESTING AND FINANCIAL ACTIVITIES:
Transfer of assets to a related party through Contribution Agreement	$	13,951		$	-		$	13,951
Liabilities assumed by a related party through Contribution Agreement	$	718,458		$	-		$	718,458

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

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Non-cash investing and financing activities:

During the three months ended September 30, 2014, we entered into a Contribution Agreement with Cardigant Neurovascular Inc., a Delaware corporation (“Cardigant Neurovascular”). Pursuant to the Contribution Agreement, we assigned all our assets, properties, rights, title and interest used or held for use by our business, (except for certain excluded assets set forth therein) which was the treatment of atherosclerosis and plaque stabilization in both the coronary and peripheral vasculature using systemic and local delivery of large molecule therapeutics and peptide mimetics based on high density lipoprotein targets(“Business”). In consideration for such contribution of capital, Cardigant Neurovascular agreed to assume all our liabilities raising from the Business prior to the date of the Contribution Agreement and thereafter with regard to certain contributed contacts.

During the three months ended March 31, 2014, the Company issued 25,152 shares of common stock for services rendered in connection with the preparation of our annual report.  The services were valued at $0.53 per share.

During the three months ended June 30, 2014, the Company issued 70,000 shares for legal services. The services were valued at $0.53 per share and charged to selling, general and administrative expenses.

During the nine months ended September 30, 2013, the Company issued 8,568 shares of its common stock for services provided by its Chief Scientific Officer valued at $4,500 and charged to expense.  The Company also issued 9,000 shares of its common stock for services provided by its Chief Financial Officer valued at $4,748 and charged to expense.

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

6

TAKUNG ART CO., LTD

FORMERLY KNOWN AS CARDIGANT MEDICAL, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONDENSED FINANCIAL STATEMENTS

SEPTEMBER 30, 2014

(UNAUDITED)

(1) Nature and Continuance of Operations

Description of the Business

Takung Art Co., Ltd, formerly known as Cardigant Medical Inc. ("Takung Art" or "Company") was a development stage biotechnology company incorporated in Delaware, focused on the development of novel biologic and peptide based compounds and enhanced methods for local delivery for the treatment of vascular disease including peripheral artery disease and ischemic stroke. It was founded on April 17, 2009 and is incorporated within the state of Delaware.  The Company was engaged in research and development in multiple locations but maintains its corporate office in greater Los Angeles.

The Company was in the development stage, as defined in Accounting Standards Codification ("ASC") Topic 915-10. From its inception (April 17, 2009) through September 30, 2014, the Company did not any revenue from its principal planned operations. On March 4, 2013, the Company filed an amendment to its articles of incorporation changing its authorized common stock to 50,000,000.  Also on March 4, 2013, the Company authorized a 2:1 forward stock split.  The accompanying unaudited condensed financial statements reflect the change in capital and stock split as if they occurred at the Company’s inception.

On October 20, 2014, the Company acquired the business of Hong Kong Takung Assets and Equity of Artworks Exchange Co., Ltd.,a limited liability company incorporated on September 17, 2012 under the laws of Hong Kong, Special Administrative Region, China (“Hong Kong Takung”), through the acquisition of all the share capital of Takung Art under the Share Exchange Agreement dated September 23, 2014.

On November 5, 2014, the Company filed a Certificate of Amendment to its Certificate of Incorporation with the Secretary of State of the State of Delaware to change its name from “Cardigant Medical Inc.” to “Takung Art Co., Ltd.” The name change was effected pursuant to Section 242 of the Delaware General Corporation Law (the “DGCL”). Under the DGCL, the name change did not require stockholder approval.

Since the reverse merger closed after September 30, 2014, the Company’s financial statements are prepared solely for the Delaware entity, which do not consolidate the Hong Kong entity.

Going Concern

The Company's financial statements are prepared using the accrual method of accounting in accordance with accounting principles generally accepted in the United States of America and have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities in the normal course of business.

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The Company has generated losses from operations to date, does not expect to generate operating revenue for several years, and its viability is dependent upon its ability to obtain financing and the success of its future operations. These financial statements do not include any adjustments relating to the recoverability and classification of recorded assets or liabilities that might be necessary should the Company be unable to continue as a going concern.

Basis of Presentation

The accompanying unaudited financial statements contain all adjustments (consisting only of normal recurring adjustments) which, in the opinion of management, are necessary to present fairly the financial position of the Company as of September 30, 2014, and the results of its operations for the three and nine months ended September 30, 2014 and 2013, and cash flows for the nine months ended September 30, 2014 and 2013. Certain information and footnote disclosures normally included in financial statements have been condensed or omitted pursuant to rules and regulations of the U.S. Securities and Exchange Commission (“the Commission”). The Company believes that the disclosures in the unaudited financial statements are adequate to ensure the information presented is not misleading. However, the unaudited financial statements included herein should be read in conjunction with the financial statements and notes thereto included in the Company’s Amended Annual Report on Form 10-K/A for the year ended December 31, 2013, filed with the Commission on April 8, 2014.

The accompanying financial statements are prepared using the accrual method of accounting in accordance with accounting principles generally accepted in the United States of America.

Disposition of assets

On August 27, 2014, the Company entered into a Contribution Agreement with Cardigant Neurovascular Inc., a Delaware corporation (“Cardigant Neurovascular”). Pursuant to the Contribution Agreement, the Company assigned all its assets, properties, rights, title and interest used or held for use by their business, (except for certain excluded assets set forth therein) which was the treatment of atherosclerosis and plaque stabilization in both the coronary and peripheral vasculature using systemic and local delivery of large molecule therapeutics and peptide mimetics based on high density lipoprotein targets(“Business”). In consideration for such contribution of capital, Cardigant Neurovascular agreed to assume all the Company’s liabilities raising from the Business prior to the date of the Contribution Agreement and thereafter with regard to certain contributed contacts. The Company granted Cardigant Neurovascular an exclusive option for a period of 6 months to purchase the excluded assets for $1. Cardigant Neurovascular exercised this option October 20, 2014 and the excluded assets were assigned to Cardigant Neurovascular on October 20, 2014.

(2) Summary of Significant Accounting Policies

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents

The Company considers all highly liquid debt instruments and other short-term investments with maturities of three months or less, when purchased, to be cash equivalents. The Company maintains cash balances at one financial institution that is insured by the Federal Deposit Insurance Corporation ("FDIC") up to $250,000. As of September 30, 2014, the Company's cash balances did not exceed the FDIC limits.

8

Research and Development

The Company accounts for research and development costs in accordance with ASC Topic 730-10 "Research and Development." Under ASC Topic 730-10, all research and development costs must be charged to expenses as incurred. Third-party research and development costs are expensed when the contracted work has been performed or as milestone results have been achieved. Company sponsored research and development costs related to both present and future products are expensed in the period incurred. For the three months ended September 30, 2014 and 2013, the Company incurred research and development expenses of $3,103 and $41,364, respectively. For the nine months ended September 30, 2014 and 2013, the Company incurred research and development expenses of $88,590and $144,652, respectively.

Stock-Based Compensation

The Company accounts for its stock-based compensation under ASC Topic 505-50. This standard defines a fair value-based method of accounting for stock-based compensation. In accordance with ASC Topic 505-50, the cost of stock-based compensation is measured at the grant date based on the value of the award and is recognized over the period in which the Company expects to receive the benefit, which is generally the vesting period.

See Note (6) Stockholder’s Equity (Deficit) for detail stock-based compensation activity.

Per Share Amounts

The Company reports earnings (loss) per share in accordance with ASC Topic 260-10 "Earnings per Share." Basic earnings (loss) per share is computed by dividing income (loss) available to common shareholders by the weighted average number of common shares available.

Recent Accounting Pronouncements

The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company’s financials properly reflect the change.

(3) Fair Value Measurements

The Company’s financial instruments for 2014 and 2013 consist of account payables, accrued expenses and a short term loan payable. The Company considers the carrying value of such amounts in the financial statements to approximate their fair value due to their respective short maturity dates.

(4) Related Party Transactions

The Company has received some of its working capital from its founder, Jerett A. Creed. Mr. Creed has also paid Company expenses with personal funds.  These costs have been carried as a shareholder loan accruing interest at the rate of 5% per annum.  The total outstanding balance as of September 30, 2014 and December 31, 2013 was $0, and $14,938, respectively. Accrued interest on the outstanding balance charged to operations for the period ended September 30, 2014 and 2013 was $33 and $279, respectively.  Accrued interest on the outstanding balance charged to operations for the nine months ended September 30, 2014 and 2013 was $86 and $381, respectively.

On August 27, 2014, the Company entered into a Contribution Agreement with Cardigant Neurovascular. Pursuant to the Contribution Agreement, the Company assigned all its assets, properties, rights, title and interest used or held for use by its business, (except for certain excluded assets set forth therein) which was the treatment of atherosclerosis and plaque stabilization in both the coronary and peripheral vasculature using systemic and local delivery of large molecule therapeutics and peptide mimetics based on high density lipoprotein targets (“Business”). In consideration for such contribution of capital, Cardigant Neurovascular agreed to assume all the Company’s liabilities raising from the Business prior to the date of the Contribution Agreement and thereafter with regard to certain contributed contacts. The Company granted Cardigant Neurovascular an exclusive option for a period of 6 months to purchase the excluded assets for $1. Cardigant Neurovascular exercised this option October 20, 2014 and the excluded assets were assigned to Cardigant Neurovascular on October 20, 2014.

9

(5) Accrued Officer's Compensation

The accrued officer’s compensation balances, net of any salary payments, at September 30, 2014 and December 31, 2013 were $0 and $559,000, respectively. Salary is allocated between research and development and general and administrative based upon time spent.

(6) Stockholders’ Equity (Deficit)

There is no public market for the Company's common shares. Since its inception, the Company has negotiated the value of its common stock in arm's length transactions with unrelated parties.

On August 27, 2014, we entered into a Contribution Agreement with a related party, Cardigant Neurovascular Inc., a Delaware corporation (“Cardigant Neurovascular”) controlled by the same party as our Company. Pursuant to the Contribution Agreement, we assigned all our assets, properties, rights, title and interest used or held for use by our business, (except for certain excluded assets set forth therein). In consideration for such contribution of capital, Cardigant Neurovascular agreed to assume all our liabilities raising from the Business prior to the date of the Contribution Agreement and thereafter with regard to certain contributed contacts. The net consideration of the deposition of assets, $714,252, was accounted as an additional paid-in capital based on the nature of common control transaction.

Pursuant to the Stock Purchase Agreement dated as of July 31, 2014, Yong Li, an individual purchased a total of 22,185,230 restricted shares of common stock of the Company from a group of three former shareholders of the Company. All prior grants of options and warrants had been cancelled as a condition of the Stock Purchase Agreement. Hence, there were no outstanding options or warrants as of September 30, 2014.

During the three months ended June30, 2014, the Company issued 70,000 unregistered shares of its common stock for services valued at $0.53 per share.

During the three months ended March 31, 2014, the Company issued 122,352 unregistered shares of its common stock.  The issuance included 97,200 units issued for cash proceeds of $51,516 and 25,152 shares issued for services valued at $0.53 per share.  The 97,200 units issued consisted of one common share and one common stock warrant.  The warrants have an exercise price of $0.65 per share and expire in January 2018.

During the three months ended March 31, 2013, the Company issued 163,238 shares of its common stock and received $85,700 through the January 19, 2012 S-1 offering.

During the nine months ended September 30, 2013, the Company issued 8,568 shares of its common stock for services provided by its Chief Scientific Officer valued at $4,500 and charged to expense. The Company also issued 9,000 shares of its common stock for services provided by its Chief Financial Officer valued at $4,748 and charged to expense.

(7) Income Taxes

The Company's policy regarding income tax interest and penalties is to expense those items as general and administrative expense and to identify them for tax purposes.  The Company files income tax returns in the U.S. federal jurisdiction and the state of California. The Company is subject to income tax examination by tax authorities for 2011, 2012 and 2013 for its Federal tax returns and 2010, 2011, 2012, and 2013 for its state tax returns.

10

(8) Commitments and Contingencies

Rental Agreement

On May 3, 2011 the Company entered into a rental agreement for laboratory space at a bioscience collective in Pasadena, California. The rental agreement calls for a security deposit of $1,100 and monthly rent payments of $1,200. The lease is month-to-month and can be terminated by either party with thirty days' notice. 

Rent expense for the three months ended September 30, 2014 and 2013 totaled $4,170 and $3,885, respectively.  Rent expense for the nine months ended September 30, 2014 and 2013 was $8,055 and $11,655 respectively.

(9) Subsequent event

On September 23, 2014, we entered into a share exchange agreement (“Share Exchange Agreement”) with Hong Kong Takung Assets and Equity of Artworks Exchange Co., Limited (“Takung”) in which we acquired all the issued and outstanding capital stock of Takung in exchange for the issuance to Takung’s shareholders, Kirin Linkage Limited and Loyal Heaven Limited, an aggregate of 209,976,000 restricted shares of our common stock (the “Reverse Merger”).The Reverse Merger closed on October 20, 2014.andTakung became our wholly owned subsidiary. The acquisition was accounted for as a recapitalization effected by a share exchange, wherein Takung is considered the acquirer for accounting and financial reporting purposes. The assets and liabilities of Takung have been brought forward at their book value and no goodwill has been recognized.

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q or Form 10-Q and other reports filed by us from time to time with the Securities and Exchange Commission (collectively the “Filings”) contain or may contain forward-looking statements and information that are based upon beliefs of, and information currently available to, our management as well as estimates and assumptions made by our management. When used in the filings the words “anticipate”, “believe”, “estimate”, “expect”, “future”, “intend”, “plan” or the negative of these terms and similar expressions as they relate to us or our management identify forward looking statements. Such statements reflect the current view of our management with respect to future events and are subject to risks, uncertainties, assumptions and other factors as they relate to our industry, our operations and results of operations, and any businesses that we may acquire. Should one or more of the events described in these risk factors materialize, or should our underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended or planned.

Although we believe that the expectations reflected in the forward looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the U.S. federal securities laws, we do not intend to update any of the forward-looking statements to conform them to actual results. The following discussion should be read in conjunction with our pro forma financial statements and the related notes that will be filed herein.

OVERVIEW

We were incorporated in Delaware under the name Cardigant Medical Inc. on April 17, 2009. Our initial business plan was to focus on the development of novel biologic and peptide based compounds and enhanced methods for local delivery for the treatment of vascular disease including peripheral artery disease and ischemic stroke.

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Pursuant to the Stock Purchase Agreement dated as of July 31, 2014, Yong Li, an individual purchased a total of 22,185,230 restricted shares of common stock of the Company from a group of three former shareholders of the Company. In consideration for the shares, Mr. Li paid the sellers $399,344 in cash which came from his own capital. The sellers were Jerett A. Creed, the Company’s former Chief Executive Officer, Chief Financial Officer, director and formerly a controlling shareholder of the Company, the Creed Family Limited Partnership and Ralph Sinibaldi. The shares represented approximately 95% of the Company’s then issued and outstanding common stock. The sale was consummated on August 28, 2014. As a result of the transaction, there was a change in control of the Company.

On August 27, 2014, we entered into a Contribution Agreement with Cardigant Neurovascular. Pursuant to the Contribution Agreement, we assigned all our assets, properties, rights, title and interest used or held for use by our business, (except for certain excluded assets set forth therein) which was the treatment of atherosclerosis and plaque stabilization in both the coronary and peripheral vasculature using systemic and local delivery of large molecule therapeutics and peptide mimetics based on high density lipoprotein targets (“Business”). In consideration for such contribution of capital, Cardigant Neurovascular agreed to assume all our liabilities raising from the Business prior to the date of the Contribution Agreement and thereafter with regard to certain contributed contacts. We granted Cardigant Neurovascular an exclusive option for a period of 6 months to purchase the excluded assets for $1. Cardigant Neurovascular exercised this option October 20, 2014 and the excluded assets were assigned to Cardigant Neurovascular on October 20, 2014.

Also on October 20, 2014, we acquired the business of Hong Kong Takung Assets and Equity of Artworks Exchange Co., Ltd (“Takung”) through the acquisition of all the share capital of Takung under a Share Exchange Agreement dated September 23, 2014 in exchange for 209,976,000 newly-issued restricted shares of our common stock to the shareholders of Takung.

Takung is a limited liability company incorporated on September 17, 2012 under the laws of Hong Kong, Special Administrative Region, China. Although Takung was incorporated in late 2012, it did not commence business operations until late 2013.

As a result of the transfer of the excluded assets pursuant to the Contribution Agreement and the acquisition of all the issued and outstanding shares of Takung, we are no longer conducting the Business and have now assumed Takung’s business operations as it now our only operating wholly-owned subsidiary.

Takungoperates an electronic online platform located at www.takungae.com for artists, art dealers and art investors to offer and trade in valuable artwork.

Through Takung, we offer on-line listing and trading services that allow artists/art dealers/owners to access a much bigger art trading market where they can engage with a wide range of investors that they might not encounter without our platform. Our platform also makes investment in high-end and expensive artwork more accessible to ordinary people without substantial financial resources.

We generate revenue from our services in connection with the offering and trading of artwork on our system, primarily consisting of listing fees, trading commissions, and management fees.

We conduct our business primarily in Hong Kong, Special Administrative Region, People’s Republic of China. Our principal executive offices are located at Flat/RM 03-04, 20/F, Hutchison House, 10 Harcourt Road, Central Hong Kong.

RESULTS OF OPERATIONS

The following discussion should be read in conjunction with the unaudited condensed consolidated Financial Statements of the Company for the nine-month period ended September 30, 2014 and 2013 and related notes thereto.

THREE-MONTH PERIOD ENDED SEPTEMBER 30, 2014 COMPARED TO THREE-MONTH PERIOD ENDED SEPTEMBER 30, 2013

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Research and Development Expenses

Research and development expenses for the three months ended September 30, 2014 were $3,103 versus $41,364 for the three months ended September 30, 2013. This represents a 92.5% decrease from the prior year period.

The decrease noted is due primarily to reduced use of outside research facilities.  These expenses consisted mainly of allocated salary for our CEO, expense for our CSO and other consultants and laboratory supplies. We expect our R&D expenses to ramp up to approximately $1,000,000 over the next 18 months with most of the expenses back ended. In addition, the substantial decrease was due to the disposition of majority of our assets, including our major research projects, pursuant to the Contribution Agreement entered with Cardigant Neurovascular Inc.,a related party on August 27, 2014. As a result, there was basically no research and development activity after the date of the Contribution Agreement .

Selling, General and Administrative Expenses

Selling, general and administrative expenses for the three months ended September 30, 2014 were $1,769 versus $25,737 for the three months ended September 30, 2013. This represents a 93% decrease from the prior period. The substantial decrease was due to the disposition of a majority of our assets, including our major research projects, pursuant to the Contribution Agreement entered with Cardigant Neurovascular Inc.,with oura related party on August 27, 2014. Consequently there were nominal operational activities after the Contribution Agreement.

Net Loss

We had a net loss for the three months ended September 30, 2014 of $4,872 versus a net loss of $67,286 for the three months ended September 30, 2013.

The substantial decrease in current period was due to the disposition of majority of our assets, including our major research projects, pursuant to the Contribution Agreement with Cardigant Neurovascular Inc , a related party on August 27, 2014. Conesequently, there were significantly less research and development activities as well as other operational activities compared to prior period.

NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2014 COMPARED TO NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2013

Research and Development Expenses

Research and development expenses for the nine months ended September 30, 2014 were $88,590 versus $144,652 for the nine months ended September 30, 2013.  This represents a 38.7% decrease from the prior year period.

The decrease noted is due primarily to reduced use of outside research facilities.  These expenses consisted mainly of allocated salary for our CEO, expense for our CSO and other consultants and laboratory supplies. We expect our R&D expenses to ramp up to approximately $1,000,000 over the next 18 months with most of the expenses back ended. In addition, the substantial decrease was due to the disposition of majority of our assets, including our major research projects, pursuant to the Contribution Agreement entered with Cardigant Neurovascular Inc.,a related party on August 27, 2014. As a result, there was basically no research and development activity after the date of the Contribution Agreement .

13

Selling, General and Administrative Expenses

Selling, general and administrative expenses for the nine months ended September 30, 2014 were $114,030 versus $98,739 for the nine months ended September 30, 2013.  This represents a 15.5% increase from the prior period.

The increased amountis due primarily to the increased cost associated with SEC compliance related costs, offset by the substantial decrease due to the disposition of a majority of our assets, including our major research projects, pursuant to the Contribution Agreement entered with Cardigant Neurovascular Inc., a related party on August 27, 2014. Consequently there were were nominal operational activities after the Contribution Agreement took place.

Net Loss

We had a net loss for the nine months ended September 30, 2014 of $203,092 versus a net loss of $246,875 for the nine months ended September 30, 2013.

This change is due to primarily to the increased cost of our SEC compliance activities offset by the substantial decrease due to the disposition of a majority of our assets, including our major research projects, pursuant to the Contribution Agreement entered with Cardigant Neurovascular Inc., a related party on August 27, 2014. Conesequently, there were significantly less research and development activities as well as other operational activities compared to prior period.

Liquidity and Capital Resources

Sources of Liquidity

During the nine months ended September 30, 2014, net cash used in operating activities totaled $38,723. Net cash used by investing activities totaled $3,617. Net cash provided by financing activities during the period was $39,216 of which included proceeds of $51,516 received from the sale of 97,200 shares of our common stock through a Reg D offering plus net repayments of $12,300 we paid to our Chief Executive Officer. The resulting change in cash for the period was a decrease of $3,124. The cash balance at the beginning of the period was $3,124. The cash balance at September 30, 2014 was $0.

During the nine months ended September 30, 2013, net cash used by operating activities totaled $117,996.  Net cash used by investing activities totaled $3,600.  Net cash provided by financing activities during the period was $68,478 of which included proceeds of $85,700 received from the sale of 163,238 shares of our common stock through our private placement offering plus net repayments of $17,222 to our Chief Executive Officer.  The resulting change in cash for the period was a decrease of $53,118.  The cash balance at the beginning of the period was $54,194.  The cash balance at September 30, 2013 was $1,076.

As of September 30, 2014, the Company had $649 in total current liabilities, which was represented by $649 in accounts payable.  As of September 30, 2013, the Company had $646,642 in total current liabilities, which was represented by $6,519 in accounts payable, $66,185 in accrued expenses, $559,000 in accrued officer’s compensation and $14,938 due to the Company’s CEO, a stockholder.  

The Company had no long-term liabilities at both September 30, 2014 and 2013; therefore the Company’s total liabilities at September 30, 2014 and 2013 amounted to $649 and $646,642, respectively.

The Company is not aware of any known trends, events or uncertainties which may affect its future liquidity. We are development stage and do not have a product commercially available for sale. We do not expect to realize any revenue for several years. As such it is imperative that the reader recognize that our primary source of working capital will generally come from equity sales, or the issuance of debt. We do, however, occasionally apply for non-taxable grant funding to support our research and development efforts. We currently do not have grant applications outstanding, and we can make no guarantees that any grant money will be awarded from any future applications. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources and possible cost overruns.

14

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders.

Future Financings

We will continue to rely on equity sales of our common shares in order to continue to fund our business operations. Issuances of additional shares will result in dilution to existing stockholders. There is no assurance that we will achieve any additional sales of the equity securities or arrange for debt or other financing to fund our operations and other activities or if we are able, there is no guarantee that existing shareholders will not be substantially diluted.

Critical Accounting Policies

We regularly evaluate the accounting policies and estimates that we use to make budgetary and financial statement assumptions. A complete summary of these policies is included in the notes to our financial statements. In general, management's estimates are based on historical experience, on information from third party professionals, and on various other assumptions that are believed to be reasonable under the facts and circumstances. Actual results could differ from those estimates made by management.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Research and development

The Company accounts for research and development costs in accordance with the ASC 730-10, “Research and Development.” Under ASC 730-10, all research and development costs must be charged to expense as incurred. Accordingly, internal research and development costs are expensed as incurred. Third-party research and development costs are expensed when the contracted work has been performed or as milestone results have been achieved. Company-sponsored research and development costs related to both present and future products are expensed in the period incurred.

Fair Value of Financial Instruments

The Company’s financial instruments for 2014 and 2013 consist of accounts payables, accrued expenses and a short term loan payable. The Company considers the carrying value of such amounts in the financial statements to approximate their fair value due their respective short maturity dates.

Loss Per Share of Common Stock

The Company reports earnings (loss) per share in accordance with ASC Topic 260-10 "Earnings per Share." Basic earnings (loss) per share is computed by dividing income (loss) available to common shareholders by the weighted average number of common shares available.

Stock-Based Compensation

The Company accounts for stock-based compensation under ASC Topic 505-50. This standard defines a fair value-based method of accounting for stock-based compensation. The cost of stock-based compensation is measured at the grant date based on the value of the award and is recognized over the period in which the Company expects to receive the benefit, which is generally the vesting period.

15

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Not applicable.

Item 4.Controls and Procedures.

Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures

We conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (Exchange Act), under the supervision of and with the participation of our management, which presently comprises our Chief Executive Officer, who is also our Chief Financial Officer, Chief Accounting Officer and sole director. Because of these multiple roles, it is impossible to fully segregate dutiesto ensure that all information required to be disclosed by us in the reports that we file or submit is: (i) recorded, processed, summarized and reported, within the time periods specified in the Commission’s rule and forms; and (ii) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.Our Chief Executive Officer and Chief Financial Manager concluded that (i) there continue to be material weaknesses in the Company’s internal controls over financial reporting, that the weaknesses constitute a “deficiency” which could result in misstatements of the foregoing accounts and disclosures that could result in a material misstatement to the financial statements for the period covered by this report that would not be detected, and (ii) accordingly, our disclosure controls and procedures were not effective as of September 30, 2014.

Inherent Limitations

Because of its inherent limitations, our disclosure controls and procedures may not prevent or detect misstatements. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies and procedures may deteriorate.

Changes in Internal Controls over Financial Reporting

Subject to the foregoing disclosure, there were no changes in our internal control over financial reporting that occurred during our fiscal quarter ended September 30, 2014, that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1.Legal Proceedings.

None.

Item 1A. Risk Factors

Not applicable.

16

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.

Not applicable.

Item 6.Exhibits.

Copies of the following documents are included as exhibits to this report pursuant to Item 601 of Regulation S-K.

Exhibit No.	Description
3.1	Certificate of Incorporation (1)
3.2	By-laws of the Company (2)
3.3	Certificate of Amendment of the Certificate of Incorporation (1)
3.4	Certificate of Amendment of the Certificate of Incorporation (1)
3.5	Certificate of Amendment (2)
3.6	Certificate of Incorporation of Hong Kong Takung Assets and Equity Artworks Exchange Co., Ltd.(3)
3.7	Articles of Association of Hong Kong Takung Assets and Equity Artworks Exchange Co., Ltd.(3)
31.1	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
31.2	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
32.1	Certification of the Principal Executive Officer pursuant to U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**
32.2	Certification of the Principal Financial Officer pursuant to U.S.C. Section 1350 as adopted 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 Calculation Linkbase Document*
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document*
101.LAB	XBRL Taxonomy Label Linkbase Document*
101.PRE	XBRL Taxonomy Presentation Linkbase Document*

(1) Incorporated by reference to the exhibit to our registration statement on Form S-1 filed with the SEC on August 16, 2011.

(2) Incorporated by reference to the exhibit to our current report on Form 8-K filed with the SEC on March 7, 2013.

(3) Incorporated by reference to the exhibit to our current report on Form 8-K filed with the SEC on October 22, 2014.

*Filed herewith.

**Furnished herewith.

17

SIGNATURES

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

	CARDIGANT MEDICAL INC.
Date: November 14, 2014	By:	/s/ Di Xiao
		Di Xiao
		Chief Executive Officer
		(Principal Executive Officer)/ Chief Financial Officer (Principal Financial Officer) and Director

18

EX-31.1

Exhibit 31.1

CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I,Di Xiao, certify that:

(1) I have reviewed this report on Form 10-Q ofCardigant Medical 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 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 the report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

(5) The registrant’s other certifying officer 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 14, 2014
	/s/ Di Xiao
	Di Xiao
	Chief Executive Officer (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Di Xiao, certify that:

(1) I have reviewed this report on Form 10-Q ofCardigant Medical 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 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 the report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

(5) The registrant’s other certifying officer 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 14, 2014
	/s/ Di Xiao
	Di Xiao
	Chief Financial Officer (Principal Accounting & Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO 18 U.S. C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Cardigant Medical (the “Company”) on Form 10-Q for the quarter ended September 30, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I,Di Xiao, Chief Executive Officer and President of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(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 14, 2014
	/s/ Di Xiao
	Di Xiao
	Chief Executive Officer
	(Principal Executive Officer)

EX-32.2

Exhibit 32.2

CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER

PURSUANT TO 18 U.S. C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report ofCardigant Medical Inc., (the “Company”) on Form 10-Q for the quarter ended September 30, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Di Xiao, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(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 14, 2014

/s/ Di Xiao

Di Xiao

Chief Financial Officer

(Principal Accounting and Financial Officer)

XML

Fair Value Measurements

9 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Fair Value, Measurement Inputs, Disclosure [Text Block]

(3) Fair Value Measurements

The Company’s financial instruments for 2014 and 2013 consist of account payables, accrued expenses and a short term loan payable. The Company considers the carrying value of such amounts in the financial statements to approximate their fair value due to their respective short maturity dates.

XML

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

(2) Summary of Significant Accounting Policies

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents

The Company considers all highly liquid debt instruments and other short-term investments with maturities of three months or less, when purchased, to be cash equivalents. The Company maintains cash balances at one financial institution that is insured by the Federal Deposit Insurance Corporation ("FDIC") up to $250,000. As of September 30, 2014, the Company's cash balances did not exceed the FDIC limits.

Research and Development

The Company accounts for research and development costs in accordance with ASC Topic 730-10 "Research and Development." Under ASC Topic 730-10, all research and development costs must be charged to expenses as incurred. Third-party research and development costs are expensed when the contracted work has been performed or as milestone results have been achieved. Company sponsored research and development costs related to both present and future products are expensed in the period incurred. For the three months ended September 30, 2014 and 2013, the Company incurred research and development expenses of $3,103 and $41,364, respectively. For the nine months ended September 30, 2014 and 2013, the Company incurred research and development expenses of $88,590and $144,652, respectively.

Stock-Based Compensation

The Company accounts for its stock-based compensation under ASC Topic 505-50. This standard defines a fair value-based method of accounting for stock-based compensation. In accordance with ASC Topic 505-50, the cost of stock-based compensation is measured at the grant date based on the value of the award and is recognized over the period in which the Company expects to receive the benefit, which is generally the vesting period.

See Note (6) Stockholder’s Equity (Deficit) for detail stock-based compensation activity.

Per Share Amounts

The Company reports earnings (loss) per share in accordance with ASC Topic 260-10 "Earnings per Share." Basic earnings (loss) per share is computed by dividing income (loss) available to common shareholders by the weighted average number of common shares available.

Recent Accounting Pronouncements

The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company’s financials properly reflect the change.

XML

CONDENSED BALANCE SHEETS (USD $)	Sep. 30, 2014	Dec. 31, 2013
CURRENT ASSETS
Cash & equivalents	$ 0	$ 3,124
Prepaid expenses	0	17,378
Deposits	0	1,195
Total current assets	0	21,697
PROPERTY AND EQUIPMENT, net	0	4,903
INTANGIBLES, net	0	2,363
TOTAL ASSETS	0	28,963
CURRENT LIABILITIES
Accounts payable	649	6,519
Accrued expenses	0	66,185
Accrued officer compensation	0	559,000
Due to stockholder	0	14,938
Total current liabilities	649	646,642
TOTAL LIABILITIES	649	646,642
STOCKHOLDERS' (DEFICIT)
Common stock, 50,000,000 shares authorized; $0.001 par value; 23,330,662 shares issued and outstanding at September 30, 2014; 23,138,310 shares issued and outstanding at December 31, 2013	23,331	23,138
Additional paid-in capital	1,284,934	464,205
Deficit accumulated during the development stage	(1,308,914)	(1,105,022)
Total stockholders' (deficit)	(649)	(617,679)
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT)	$ 0	$ 28,963

XML

CONDENSED STATEMENTS OF CASH FLOWS [Parenthetical] (Common Stock [Member], USD $)	3 Months Ended		9 Months Ended
	Jun. 30, 2014	Mar. 31, 2014	Sep. 30, 2013 Chief Financial Officer [Member]	Sep. 30, 2013 Chief Scientific Officer [Member]
Stock issued during period, shares, issued for services	70,000	25,152	9,000	8,568
Shares issued, price per share (in dollars per share)	$ 0.53	$ 0.53
Stock issued during period, value, issued for services			$ 4,748	$ 4,500

XML

Commitments and Contingencies (Details Textual) (USD $)	0 Months Ended	3 Months Ended		9 Months Ended
	May 03, 2011	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Security Deposit	$ 1,100
Operating Leases, Rent Expense, Net		4,170	3,885	8,055	11,655
Lease Rent, Monthly	$ 1,200

XML

Nature and Continuance of Operations

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]

(1) Nature and Continuance of Operations

Description of the Business

Takung Art Co., Ltd, formerly known as Cardigant Medical Inc. ("Takung Art" or "Company") was a development stage biotechnology company incorporated in Delaware, focused on the development of novel biologic and peptide based compounds and enhanced methods for local delivery for the treatment of vascular disease including peripheral artery disease and ischemic stroke. It was founded on April 17, 2009 and is incorporated within the state of Delaware.  The Company was engaged in research and development in multiple locations but maintains its corporate office in greater Los Angeles.

The Company was in the development stage, as defined in Accounting Standards Codification ("ASC") Topic 915-10. From its inception (April 17, 2009) through September 30, 2014, the Company did not any revenue from its principal planned operations. On March 4, 2013, the Company filed an amendment to its articles of incorporation changing its authorized common stock to 50,000,000.  Also on March 4, 2013, the Company authorized a 2:1 forward stock split.  The accompanying unaudited condensed financial statements reflect the change in capital and stock split as if they occurred at the Company’s inception.

On October 20, 2014, the Company acquired the business of Hong Kong Takung Assets and Equity of Artworks Exchange Co., Ltd.,a limited liability company incorporated on September 17, 2012 under the laws of Hong Kong, Special Administrative Region, China (“Hong Kong Takung”), through the acquisition of all the share capital of Takung Art under the Share Exchange Agreement dated September 23, 2014.

On November 5, 2014, the Company filed a Certificate of Amendment to its Certificate of Incorporation with the Secretary of State of the State of Delaware to change its name from “Cardigant Medical Inc.” to “Takung Art Co., Ltd.” The name change was effected pursuant to Section 242 of the Delaware General Corporation Law (the “DGCL”). Under the DGCL, the name change did not require stockholder approval.

Since the reverse merger closed after September 30, 2014, the Company’s financial statements are prepared solely for the Delaware entity, which do not consolidate the Hong Kong entity.

Going Concern

The Company's financial statements are prepared using the accrual method of accounting in accordance with accounting principles generally accepted in the United States of America and have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities in the normal course of business.  

The Company has generated losses from operations to date, does not expect to generate operating revenue for several years, and its viability is dependent upon its ability to obtain financing and the success of its future operations. These financial statements do not include any adjustments relating to the recoverability and classification of recorded assets or liabilities that might be necessary should the Company be unable to continue as a going concern.

Basis of Presentation

The accompanying unaudited financial statements contain all adjustments (consisting only of normal recurring adjustments) which, in the opinion of management, are necessary to present fairly the financial position of the Company as of September 30, 2014, and the results of its operations for the three and nine months ended September 30, 2014 and 2013, and cash flows for the nine months ended September 30, 2014 and 2013. Certain information and footnote disclosures normally included in financial statements have been condensed or omitted pursuant to rules and regulations of the U.S. Securities and Exchange Commission (“the Commission”). The Company believes that the disclosures in the unaudited financial statements are adequate to ensure the information presented is not misleading. However, the unaudited financial statements included herein should be read in conjunction with the financial statements and notes thereto included in the Company’s Amended Annual Report on Form 10-K/A for the year ended December 31, 2013, filed with the Commission on April 8, 2014.

The accompanying financial statements are prepared using the accrual method of accounting in accordance with accounting principles generally accepted in the United States of America.

Disposition of assets

On August 27, 2014, the Company entered into a Contribution Agreement with Cardigant Neurovascular Inc., a Delaware corporation (“Cardigant Neurovascular”). Pursuant to the Contribution Agreement, the Company assigned all its assets, properties, rights, title and interest used or held for use by their business, (except for certain excluded assets set forth therein) which was the treatment of atherosclerosis and plaque stabilization in both the coronary and peripheral vasculature using systemic and local delivery of large molecule therapeutics and peptide mimetics based on high density lipoprotein targets(“Business”). In consideration for such contribution of capital, Cardigant Neurovascular agreed to assume all the Company’s liabilities raising from the Business prior to the date of the Contribution Agreement and thereafter with regard to certain contributed contacts. The Company  granted Cardigant Neurovascular an exclusive option for a period of 6 months to purchase the excluded assets for $1. Cardigant Neurovascular exercised this option October 20, 2014 and the excluded assets were assigned to Cardigant Neurovascular on October 20, 2014.

XML

CONDENSED BALANCE SHEETS [Parenthetical] (USD $)	Sep. 30, 2014	Dec. 31, 2013
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	23,330,662	23,138,310
Common stock, shares outstanding	23,330,662	23,138,310

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Nature and Continuance of Operations (Details Textual) (USD $)			9 Months Ended	12 Months Ended	1 Months Ended
	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2014 Contribution Agreement [Member] Cardigant Neurovascular [Member]	Dec. 31, 2013 Contribution Agreement [Member] Cardigant Neurovascular [Member]	Oct. 20, 2014 Contribution Agreement [Member] Cardigant Neurovascular [Member] Subsequent Event [Member]
Organization And Description Of Business [Line Items]
Common Stock, Shares Authorized	50,000,000	50,000,000		50,000,000
Stockholders' Equity Note, Stock Split, Conversion Ratio				2
Vesting Period to Purchase Excluded Assets			6 months
Proceeds from Sale of Other Assets					$ 1

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Document And Entity Information	9 Months Ended
	Sep. 30, 2014	Nov. 14, 2014
Document Information [Line Items]
Entity Registrant Name	Takung Art Co., Ltd.
Entity Central Index Key	0001491487
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	TKAT
Entity Common Stock, Shares Outstanding		233,306,662
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2014
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2014

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Summary of Significant Accounting Policies (Details Textual) (USD $)	3 Months Ended		9 Months Ended		65 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014
Summary of Significant Accounting Policies [Line Items]
Fdic Insurance Limit			$ 250,000
Research and Development Expense	$ 3,103	$ 41,364	$ 88,590	$ 144,652	$ 884,028

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CONDENSED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		9 Months Ended		65 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014
REVENUE	$ 0	$ 0	$ 0	$ 0	$ 0
OPERATING EXPENSES
Research and development	3,103	41,364	88,590	144,652	884,028
Selling, general, and administrative	1,769	25,737	114,030	98,739	563,087
Total operating expenses	4,872	67,101	202,620	243,391	1,447,115
LOSS FROM OPERATIONS	(4,872)	(67,101)	(202,620)	(243,391)	(1,447,115)
OTHER INCOME (EXPENSES)
Grant from National Institute of Health	0	0	0	0	151,247
Interest income	0	0	0	0	381
Interest (expense)	0	(185)	(472)	(3,484)	(9,427)
Total other income (expenses)	0	(185)	(472)	(3,484)	142,201
NET INCOME (LOSS) BEFORE INCOME TAXES	(4,872)	(67,286)	(203,092)	(246,875)	(1,304,914)
PROVISION FOR INCOME TAXES	0	0	(800)	(800)	(4,000)
NET LOSS	$ (4,872)	$ (67,286)	$ (203,892)	$ (247,675)	$ (1,308,914)
LOSS PER COMMON SHARE - BASIC AND DILUTED (in dollars per share)	$ 0.00	$ 0.00	$ (0.01)	$ (0.01)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING (in shares)	23,330,662	23,079,751	23,256,365	23,063,951

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Stockholders' Equity (Deficit)

9 Months Ended

Sep. 30, 2014

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

(6) Stockholders’ Equity (Deficit)

There is no public market for the Company's common shares. Since its inception, the Company has negotiated the value of its common stock in arm's length transactions with unrelated parties. 

On August 27, 2014, we entered into a Contribution Agreement with a related party, Cardigant Neurovascular Inc., a Delaware corporation (“Cardigant Neurovascular”) controlled by the same party as our Company. Pursuant to the Contribution Agreement, we assigned all our assets, properties, rights, title and interest used or held for use by our business, (except for certain excluded assets set forth therein). In consideration for such contribution of capital, Cardigant Neurovascular agreed to assume all our liabilities raising from the Business prior to the date of the Contribution Agreement and thereafter with regard to certain contributed contacts. The net consideration of the deposition of assets, $714,252, was accounted as an additional paid-in capital based on the nature of common control transaction.

Pursuant to the Stock Purchase Agreement dated as of July 31, 2014, Yong Li, an individual purchased a total of 22,185,230 restricted shares of common stock of the Company from a group of three former shareholders of the Company. All prior grants of options and warrants had been cancelled as a condition of the Stock Purchase Agreement. Hence, there were no outstanding options or warrants as of September 30, 2014.

During the three months ended June30, 2014, the Company issued 70,000 unregistered shares of its common stock for services valued at $0.53 per share.

During the three months ended March 31, 2014, the Company issued 122,352 unregistered shares of its common stock.  The issuance included 97,200 units issued for cash proceeds of $51,516 and 25,152 shares issued for services valued at $0.53 per share.  The 97,200 units issued consisted of one common share and one common stock warrant.  The warrants have an exercise price of $0.65 per share and expire in January 2018.

During the three months ended March 31, 2013, the Company issued 163,238 shares of its common stock and received $85,700 through the January 19, 2012 S-1 offering.

During the nine months ended September 30, 2013, the Company issued 8,568 shares of its common stock for  services provided by its Chief Scientific Officer valued at $4,500 and charged to expense. The Company also issued 9,000 shares of its common stock for services provided by its Chief Financial Officer valued at $4,748 and charged to expense.

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Accrued Officer's Compensation

9 Months Ended

Sep. 30, 2014

Employee-related Liabilities [Abstract]

Compensation Related Costs, General [Text Block]

(5) Accrued Officer's Compensation

The accrued officer’s compensation balances, net of any salary payments, at September 30, 2014 and December 31, 2013 were $0 and $559,000, respectively. Salary is allocated between research and development and general and administrative based upon time spent.

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Subsequent event (Details Textual) (Takung’s shareholders, Kirin Linkage Limited and Loyal Heaven Limited [Member])	9 Months Ended
	Sep. 30, 2014
Takung’s shareholders, Kirin Linkage Limited and Loyal Heaven Limited [Member]
Subsequent Event [Line Items]
Stock Issued During Period, Shares, Acquisitions	209,976,000

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Related Party Transactions (Details Textual) (USD $)	3 Months Ended		9 Months Ended		65 Months Ended		3 Months Ended		9 Months Ended			1 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2014 Share Holders Loan [Member]	Sep. 30, 2013 Share Holders Loan [Member]	Sep. 30, 2014 Share Holders Loan [Member]	Sep. 30, 2013 Share Holders Loan [Member]	Sep. 30, 2014 Cardigant Neurovascular [Member] Contribution Agreement [Member]	Oct. 20, 2014 Cardigant Neurovascular [Member] Contribution Agreement [Member] Subsequent Event [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Rate									5.00%
Loans Payable, Current	$ 0		$ 0		$ 0	$ 14,938
Interest Expense	0	185	472	3,484	9,427		33	279	86	381
Vesting Period to Purchase Excluded Assets											6 months
Proceeds from Sale of Other Assets												$ 1

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Subsequent event

9 Months Ended

Sep. 30, 2014

Subsequent Events [Abstract]

Subsequent Events [Text Block]

(9) Subsequent event

On September 23, 2014, we entered into a share exchange agreement (“Share Exchange Agreement”) with Hong Kong Takung Assets and Equity of Artworks Exchange Co., Limited (“Takung”) in which we acquired all the issued and outstanding capital stock of Takung in exchange for the issuance to Takung’s shareholders, Kirin Linkage Limited and Loyal Heaven Limited, an aggregate of 209,976,000 restricted shares of our common stock (the “Reverse Merger”).The Reverse Merger closed on October 20, 2014.andTakung became our wholly owned subsidiary. The acquisition was accounted for as a recapitalization effected by a share exchange, wherein Takung is considered the acquirer for accounting and financial reporting purposes. The assets and liabilities of Takung have been brought forward at their book value and no goodwill has been  recognized.

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Income Taxes

9 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

(7) Income Taxes

The Company's policy regarding income tax interest and penalties is to expense those items as general and administrative expense and to identify them for tax purposes.  The Company files income tax returns in the U.S. federal jurisdiction and the state of California. The Company is subject to income tax examination by tax authorities for 2011, 2012 and 2013 for its Federal tax returns and 2010, 2011, 2012, and 2013 for its state tax returns.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

(8) Commitments and Contingencies

Rental Agreement

On May 3, 2011 the Company entered into a rental agreement for laboratory space at a bioscience collective in Pasadena, California. The rental agreement calls for a security deposit of $1,100 and monthly rent payments of $1,200. The lease is month-to-month and can be terminated by either party with thirty days' notice. 

Rent expense for the three months ended September 30, 2014 and 2013 totaled $4,170 and $3,885, respectively.  Rent expense for the nine months ended September 30, 2014 and 2013 was $8,055 and $11,655 respectively.

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

The Company considers all highly liquid debt instruments and other short-term investments with maturities of three months or less, when purchased, to be cash equivalents. The Company maintains cash balances at one financial institution that is insured by the Federal Deposit Insurance Corporation ("FDIC") up to $250,000. As of September 30, 2014, the Company's cash balances did not exceed the FDIC limits.

Research and Development Expense, Policy [Policy Text Block]

Research and Development

The Company accounts for research and development costs in accordance with ASC Topic 730-10 "Research and Development." Under ASC Topic 730-10, all research and development costs must be charged to expenses as incurred. Third-party research and development costs are expensed when the contracted work has been performed or as milestone results have been achieved. Company sponsored research and development costs related to both present and future products are expensed in the period incurred. For the three months ended September 30, 2014 and 2013, the Company incurred research and development expenses of $3,103 and $41,364, respectively. For the nine months ended September 30, 2014 and 2013, the Company incurred research and development expenses of $88,590and $144,652, respectively.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock-Based Compensation

The Company accounts for its stock-based compensation under ASC Topic 505-50. This standard defines a fair value-based method of accounting for stock-based compensation. In accordance with ASC Topic 505-50, the cost of stock-based compensation is measured at the grant date based on the value of the award and is recognized over the period in which the Company expects to receive the benefit, which is generally the vesting period.

See Note (6) Stockholder’s Equity (Deficit) for detail stock-based compensation activity.

Earnings Per Share, Policy [Policy Text Block]

Per Share Amounts

The Company reports earnings (loss) per share in accordance with ASC Topic 260-10 "Earnings per Share." Basic earnings (loss) per share is computed by dividing income (loss) available to common shareholders by the weighted average number of common shares available.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company’s financials properly reflect the change.

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Stockholders' Equity (Deficit) (Details Textual) (USD $)	1 Months Ended	9 Months Ended		65 Months Ended	3 Months Ended			9 Months Ended
	Aug. 27, 2014	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Jun. 30, 2014 Common Stock [Member]	Mar. 31, 2014 Common Stock [Member]	Mar. 31, 2013 Common Stock [Member]	Sep. 30, 2013 Chief Scientific Officer [Member] Common Stock [Member]	Sep. 30, 2013 Chief Financial Officer [Member] Common Stock [Member]	Sep. 30, 2014 Restricted Shares of Common Stock [Member]
Schedule of Stockholders Equity [Line Items]
Shares Issued, Price Per Share					$ 0.53	$ 0.53
Proceeds from Sale of Other Property, Plant, and Equipment	$ 714,252
Stock Issued During Period, Shares, Issued for Services					70,000	25,152		8,568	9,000	22,185,230
Stock Issued During Period, Shares, New Issues						122,352	163,238
Development Stage Entities, Stock Issued, Shares, Issued for Cash						97,200
Development Stage Entities, Stock Issued, Value, Issued for Cash						51,516
Class of Warrant or Right, Exercise Price of Warrants or Rights						$ 0.65
Warrants Expiry Date						Jan. 31, 2018
Proceeds from Issuance of Common Stock		51,516	85,700	367,508			85,700
Stock Issued During Period, Value, Issued for Services								$ 4,500	$ 4,748

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CONDENSED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended		65 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (203,892)	$ (247,675)	$ (1,308,914)
Adjustments to reconcile net loss to net cash used in operating activities
Stock-based compensation	55,155	36,895	177,257
Depreciation expense	1,109	1,514	4,301
Net changes in operating assets and liabilities:
Decrease (increase) in prepaid expenses	14,396	211	(3,732)
Increase in deposits	0	0	(1,195)
Increase in accounts payable	29,074	1,193	44,490
Increase in accrued expenses	5,435	8,866	71,621
Increase in accrued officer compensation	60,000	81,000	619,000
Net cash used in operating activities	(38,723)	(117,996)	(397,172)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase and reinvestments in certificate of deposit	0	0	(100,381)
Redemption of certificate of deposit	0	0	100,381
Investment in intellectual property	(3,617)	0	(5,980)
Purchase of equipment and computer software	0	(3,600)	(8,095)
Net cash used in investing activities	(3,617)	(3,600)	(14,075)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock	51,516	85,700	367,508
Advances from related party	18,400	26,978	227,883
Repayments on related-party advances	(30,700)	(44,200)	(184,144)
Net cash provided by financing activities	39,216	68,478	411,247
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(3,124)	(53,118)	0
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD	3,124	54,194	0
CASH AND CASH EQUIVALENTS - END OF PERIOD	0	1,076	0
SUPPLEMENTAL DISCLOSURES OF CASH FLOW ACTIVITY
Cash paid during the year for income taxes	0	800	2,410
Cash paid during the year for interest expense	0	0	4,985
SUPPLEMENTARY SCHEDULE OF NONCASH INVESTING AND FINANCIAL ACTIVITIES:
Transfer of assets to a related party through Contribution Agreement	13,951	0	13,951
Liabilities assumed by a related party through Contribution Agreement	$ 718,458	$ 0	$ 718,458

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Related Party Transactions

9 Months Ended

Sep. 30, 2014

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

(4) Related Party Transactions

The Company has received some of its working capital from its founder, Jerett A. Creed. Mr. Creed has also paid Company expenses with personal funds.  These costs have been carried as a shareholder loan accruing interest at the rate of 5% per annum.  The total outstanding balance as of September 30, 2014 and December 31, 2013 was $0, and $14,938, respectively. Accrued interest on the outstanding balance charged to operations for the period ended September 30, 2014 and 2013 was $33 and $279, respectively.  Accrued interest on the outstanding balance charged to operations for the nine months ended September 30, 2014 and 2013 was $86 and $381, respectively.     

On August 27, 2014, the Company entered into a Contribution Agreement with Cardigant Neurovascular. Pursuant to the Contribution Agreement, the Company assigned all its assets, properties, rights, title and interest used or held for use by its business, (except for certain excluded assets set forth therein) which was the treatment of atherosclerosis and plaque stabilization in both the coronary and peripheral vasculature using systemic and local delivery of large molecule therapeutics and peptide mimetics based on high density lipoprotein targets (“Business”). In consideration for such contribution of capital, Cardigant Neurovascular agreed to assume all the Company’s liabilities raising from the Business prior to the date of the Contribution Agreement and thereafter with regard to certain contributed contacts. The Company granted Cardigant Neurovascular an exclusive option for a period of 6 months to purchase the excluded assets for $1. Cardigant Neurovascular exercised this option October 20, 2014 and the excluded assets were assigned to Cardigant Neurovascular on October 20, 2014.

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Accrued Officer's Compensation (Details Textual) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Schedule of Employee Related Liabilities [Line Items]
Deferred Compensation Liability, Current	$ 0	$ 559,000