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 March 31, 2019

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 every Interactive Data File required to be submitted 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 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 ¨	Smaller reporting company x
	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

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
N/A	N/A	N/A

As of May 9, 2019, there are 29,421,736 shares of common stock issued and outstanding, and 1,000,000 preferred shares issued and outstanding.

TABLE OF CONTENTS

PART I.	FINANCIAL INFORMATION	4
ITEM 1.	CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)	4
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	26
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK	35
ITEM 4.	CONTROLS AND PROCEDURES	36
PART II.	OTHER INFORMATION	39
ITEM 1.	LEGAL PROCEEDINGS	39
ITEM 1A.	RISK FACTORS	39
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	39
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	39
ITEM 4.	MINE SAFETY DISCLOSURES	39
ITEM 5.	OTHER INFORMATION	39
ITEM 6.	EXHIBITS	40
SIGNATURES		41

1

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.

2

OTHER PERTINENT INFORMATION

References in this annual report to “we,” “us,” “our” and the “Company” and words of like import refer to China United Insurance Service, Inc., its subsidiaries and variable interest entities.

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 Republic of China.

Unless context indicates otherwise, reference to the “Company” in this annual report refers to China United Insurance Service, Inc. and its subsidiaries. Reference to “AHFL” refers to the combined operations of Action Holdings Financial Limited and its Taiwan Subsidiaries (as defined below). Reference to “Anhou” refers to the combined operations of Law Anhou Insurance Agency Co., Ltd. and its subsidiaries.

Our business is conducted in Taiwan and China using New Taiwanese Dollars (“NT$” or “NTD”), the currency of Taiwan, Hong Kong Dollars (“HK$” or “HKD”), the currency of Hong Kong, and RMB, the currency of China, respectively, and our financial statements are presented in United States dollars (“USD”, “US$” or “$”). In this annual 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 NT$, HK$ 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).

3

PART I.  FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

CHINA UNITED INSURANCE SERVICE, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	March 31, 2019			December 31, 2018
	(Unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	14,615,574		$	16,663,942
Time deposits		33,874,570			25,740,164
Accounts receivable		10,898,013			15,332,355
Contract assets		1,039,555			-
Restricted cash equivalents		-			3,320,802
Other current assets		1,037,594			1,155,678
Total current assets		61,465,306			62,212,941
Property, plant and equipment, net		1,157,133			1,195,695
Operating lease assets		3,415,291			-
Intangible assets		532,357			575,985
Long-term investments		2,527,274			2,477,558
Restricted cash - noncurrent		149,006			655,027
Other assets		2,338,070			1,764,638
TOTAL ASSETS	$	71,584,437		$	68,881,844
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Short-term loans	$	9,545,403		$	8,435,587
Income tax payable – current		2,617,728			1,599,146
Commission payable to sales professionals		4,954,129			8,014,480
Due to related parties		993,047			996,565
Other current liabilities		5,444,286			7,348,841
Total current liabilities		23,554,593			26,394,619
Operating lease liabilities		2,933,702			-
Income tax payable – noncurrent		1,007,323			1,007,323
Other liabilities		2,290,455			2,537,072
TOTAL LIABILITIES		29,786,073			29,939,014
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			8,190,449
Statutory reserves		7,299,123			7,299,123
Retained earnings		9,280,232			7,273,227
Accumulated other comprehensive loss		(384,316	)		(171,318	)
Total stockholders' equity attribute to parent’s shareholders		24,385,793			22,591,786
Noncontrolling interests		17,412,571			16,351,044
TOTAL STOCKHOLDERS’ EQUITY		41,798,364			38,942,830
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	71,584,437		$	68,881,844

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

4

CHINA UNITED INSURANCE SERVICE, INC. AND SUBSIDIARIES

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

(UNAUDITED)

	Three Months Ended March 31,
	2019			2018
Revenue	$	19,426,674		$	17,489,380
Cost of revenue		11,195,074			9,621,703
Gross profit		8,231,600			7,867,677
Operating expenses:
Selling		488,620			637,998
General and administrative		3,803,556			3,951,621
Total operating expense		4,292,176			4,589,619
Income from operations		3,939,424			3,278,058
Other income (expenses):
Interest income		88,473			97,621
Interest expenses		(33,582	)		(22,854	)
Other - net		301,926			80,238
Total other income		356,817			155,005
Income before income taxes		4,296,241			3,433,063
Income tax expense		1,077,387			2,118,541
Net income		3,218,854			1,314,522
Net income attributable to noncontrolling interest		1,211,849			968,868
Net income attributable to shareholders of the Company		2,007,005			345,654
Other comprehensive income (loss)
Foreign currency translation (loss) gain		(212,998	)		595,145
Other		-			525
Total other comprehensive (loss) income		(212,998	)		595,670
Less: comprehensive (loss) income attributable to noncontrolling interests		(150,322	)		308,007
Comprehensive income attributable to shareholders of the Company	$	1,794,007		$	941,324
Weighted average shares outstanding:
Basic and diluted		29,452,669			29,452,669
Earnings per share attributable to common shareholders of the Company:
Basic and diluted	$	0.066		$	0.011

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

5

CHINA UNITED INSURANCE SERVICE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

(UNAUDITED)

	Common Stock		Amount		Preferred Stock		Amount		Additional Paid-in Capital		Statutory Reserves		Accumulated Other Comprehensive Loss			Retained Earnings		Total			Noncontrolling Interests			Total Equity
Balance December 31, 2018		29,452,669	$	295		1,000,000	$	10	$	8,190,449	$	7,299,123	$	(171,318	)	$	7,273,227	$	22,591,786		$	16,351,044		$	38,942,830
Foreign currency translation gain		-		-		-		-		-		-		(212,998	)		-		(212,998	)		(150,322	)		(363,320	)
Other comprehensive gain		-		-		-		-		-		-		-			-		-			-			-
Net income		-		-		-		-		-		-		-			2,007,005		2,007,005			1,211,849			3,218,854
Balance March 31, 2019		29,452,669	$	295		1,000,000	$	10	$	8,190,449	$	7,299,123	$	(384,316	)	$	9,280,232	$	24,385,793		$	17,412,571		$	41,798,364

	Common Stock		Amount		Preferred Stock		Amount		Additional Paid-in Capital		Statutory Reserves		Accumulated Other Comprehensive Loss		Retained Earnings		Total		Noncontrolling Interests		Total Equity
Balance December 31, 2017		29,452,669	$	295		1,000,000	$	10		8,190,449		5,781,008	$	616,019	$	6,419,937	$	21,007,718	$	13,735,656	$	34,743,374
Foreign currency translation gain		-		-		-		-		-		-		595,145		-		595,145		307,737		902,882
Other comprehensive gain		-		-		-		-		-		-		525		-		525		270		795
Net income		-		-		-		-		-		-		-		345,654		345,654		968,868		1,314,522
Balance March 31, 2018		29,452,669	$	295		1,000,000	$	10	$	8,190,449	$	5,781,008	$	1,211,689	$	6,765,591	$	21,949,042	$	15,012,531	$	36,961,573

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

6

CHINA UNITED INSURANCE SERVICE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Three Months Ended March 31,
	2019			2018
Cash flows from operating activities:
Net income	$	3,218,854		$	1,314,522
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization		166,061			147,101
Amortization of bond premium		65			11
Gain on valuation of financial assets		(74,056	)		(69,553	)
Loss on disposal of fixed assets		10,855			-
Deferred income tax		(34,459	)		(29,951	)
Changes in operating assets and liabilities:
Accounts receivable		2,055,797			3,372,362
Contract assets		(1,040,568	)		(378,609	)
Other current assets		2,184,387			(677,593	)
Other assets		(552,165	)		(190,378	)
Income tax payable		1,032,707			2,126,136
Commission payable		(3,004,106	)		(2,308,224	)
Other current liabilities		(901,092	)		(1,981,048	)
Long-term liabilities		(1,423,100	)		(88,793	)
Net cash provided by operating activities		1,639,180			1,235,983
Cash flows from investing activities:
Purchases of time deposits		(18,305,382	)		(14,255,980	)
Proceeds from maturities of time deposits		9,924,948			12,953,443
Purchases of structured deposits		-			(1,270,090	)
Proceeds from maturities of structured deposits		-			2,605,260
Proceeds from repayment of loan made to RFL		-			1,529,920
Purchase of property, plant and equipment		(87,315	)		(216,973	)
Purchase of intangible assets		(21,259	)		(19,729	)
Net cash (used in) provided by investing activities		(8,489,008	)		1,325,851
Cash flows from financing activities:
Proceeds from short-term loans		9,512,787			5,400,000
Repayment of short-term loans		(8,400,000	)		(5,350,000	)
Proceeds from related party borrowing		-			493,652
Repayment to related party borrowing		-			(510,999	)
Net cash provided by financing activities		1,112,787			32,653
Foreign currency translation		(138,150	)		375,064
Net (decrease) increase in cash, cash equivalents and restricted cash		(5,875,191	)		2,969,551
Cash, cash equivalents and restricted cash, beginning balance		20,639,771			15,473,949
Cash, cash equivalents and restricted cash, ending balance	$	14,764,580		$	18,443,500
SUPPLEMENTARY DISCLOSURE:
Interest paid	$	40,895		$	20,316
Income tax paid	$	8,176		$	16,838

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

7

NOTE 1 – ORGANIZATION AND PRINCIPAL ACTIVITIES

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 Taiwan citizen, as a listing vehicle for both ZLI Holdings Limited (“CU Hong Kong”) and Action Holdings Financial Limited (“AHFL,” a company incorporated in the British Virgin Islands). The Company’s common stock currently trades over the counter under the ticker symbol “CUII” on the OTC Pink market.

The corporate structure as of March 31, 2019 is as follows:

8

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The unaudited consolidated financial statements include the accounts of China United, its subsidiaries and variable interest entities as shown in the corporate structure in Note 1. All significant intercompany transactions and balances have been eliminated in the consolidation.  

Basis of Presentation

The unaudited consolidated financial statements presented herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with 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 statement of the financial statements have been included. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019.

These unaudited 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, 2018, which were included in the Company’s 2018 Annual Report on Form 10-K (“2018 Form 10-K”). The accompanying consolidated balance sheet as of December 31, 2018, has been derived from the Company’s audited consolidated financial statements as of that date.

Use of Estimates

The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and footnotes thereto. Actual results may differ from those estimates and assumptions. 

9

Foreign Currency Transactions

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. The resulting translation adjustments are reported under other comprehensive income in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 220 (“ASC 220”), “Reporting Comprehensive Income”. 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 using the rate of exchange prevailing at the balance sheet date. Any differences are taken to profit or loss as a gain or loss on foreign currency translation in the consolidated statements of operations and other comprehensive income (loss).

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 financial statements are as follows:

	Average Rate for the three months ended March 31,
	2019		2018
Taiwan dollar (NTD)	NTD	30.815550	NTD	29.276272
China yuan (RMB)	RMB	6.746399	RMB	6.356627
Hong Kong dollar (HKD)	HKD	7.845634	HKD	7.827061
United States dollar ($)	$	1.000000	$	1.000000

	Exchange Rate at
	March 31, 2019		December 31, 2018
Taiwan dollar (NTD)	NTD	30.848914	NTD	30.564919
China yuan (RMB)	RMB	6.711130	RMB	6.876443
Hong Kong dollar (HKD)	HKD	7.849343	HKD	7.831246
United States dollar ($)	$	1.000000	$	1.000000

Earnings Per Share

Basic earnings per common share (“EPS”) is computed by dividing net income attributable to the common shareholders of the Company by the weighted-average number of common shares outstanding. Diluted EPS is computed in the same manner as basic EPS, except the number of shares includes additional common shares that would have been outstanding if potential common shares with a dilutive effect had been issued.

As the holders of preferred stock of the Company 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 of directors, the preferred stock is treated as a participating security. When calculating the basic earnings per common share, the two-class method is used to allocate earnings to common stock and participating security as required by ASC Topic 260, “Earnings Per Share.” Potential common shares consist primarily of convertible bonds calculated using the if-converted method. However, convertible bonds were excluded from the calculation of diluted earnings per common share due to the antidilutive effect. As of March 31, 2019, the Company does not have any outstanding convertible bonds. The antidilutive common share equivalents excluded from the computation were nil and 56,883 for the three months ended March 31, 2019 and 2018, respectively.

The calculation for basic and diluted EPS is as follows:

	Three Months Ended March 31,
	2019			2018
Amounts attributable to CUIS shareholders	$	2,007,005		$	345,654
Less: Amount attributable to the participating preferred shareholders		(65,906	)		(11,351	)
Amounts attributable to CUIS common shareholders		1,941,099			334,303
Effect of dilution		-			-
Income attributable to CUIS common shareholders after dilution	$	1,941,099		$	334,303
Basic weighted-average number of common shares outstanding		29,452,669			29,452,669
Effect of convertible bonds		-			-
Diluted weighted-average number of common shares outstanding		29,452,669			29,452,669
Earnings per share attributable to CUIS common shareholders:
Basic	$	0.066		$	0.011
Diluted	$	0.066		$	0.011

10

Fair Value of Financial Instruments

Fair value accounting establishes a framework for measuring fair value and expands disclosure about fair value measurements. Fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels 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 fair value.

The following table presents the fair value and carrying value of the Company’s financial assets and liabilities reported at fair value on a recurring basis as of March 31, 2019 and December 31, 2018:

	March 31, 2019
	Fair Value						Carrying
	Level 1		Level 2		Level 3		Value
Assets
Marketable securities (in other current assets):
Mutual fund	$	31,902	$	-	$	-	$	31,902
Long-term investment:
Foreign government bonds		-		98,828		-		98,828
REITs		1,182,538		-		-		1,182,538

	December 31, 2018
	Fair Value						Carrying
	Level 1		Level 2		Level 3		Value
Assets
Marketable securities (in other current assets):
Mutual fund	$	30,800	$	-	$	-	$	30,800
Long-term investment:
Foreign government bonds		-		99,834		-		99,834
REITs		1,120,239		-		-		1,120,239

During the three months ended March 31, 2019, there were no assets or liabilities that were transferred between any of the levels.

Marketable securities and long-term investments in REITs– The fair value of the mutual fund and REITs is valued based on quoted market prices in active markets.

Government bonds – The fair value of government bonds is valued based on theoretical bond price in Taipei Exchange.

The amortized cost of the investment in government bonds is $97,759 and $98,732 as of March 31, 2019 and December 31, 2018, respectively. The government bonds will mature on March 17, 2021.

11

The carrying amounts of financial assets and liabilities in the consolidated balance sheets for cash and cash equivalents, time deposits, restricted cash and cash equivalents, accounts receivable, short-term loans, due to related parties and accrued expense approximate fair value due to the short-term duration of those instruments.

Long-term loans and due to previous shareholders – The fair value of long-term loans and due to previous shareholders are determined based on the variable nature of the interest rates and the proximity to the issuance date.

Concentration of Risk

The Company maintains cash with banks in the USA, People’s Republic of China (“PRC”), Hong Kong, and Taiwan.  Should any bank holding cash become insolvent, or if the Company is otherwise unable to withdraw funds, the Company would lose the cash with that bank; however, the Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. In Taiwan, a depositor has up to NTD3,000,000 insured by Central Deposit Insurance Corporation (“CDIC”). In China, a depositor has up to RMB500,000 insured by the People’s Bank of China Financial Stability Bureau (“FSD”). In Hong Kong, a depositor has up to HKD500,000 insured by Hong Kong Deposit Protection Board (“DPB”). In the United States, the standard insurance amount is $250,000 per depositor in a bank insured by the Federal Deposit Insurance Corporation (“FDIC”).

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents, time deposits, restricted cash, register capital deposit and accounts receivable. As of March 31, 2019 and December 31, 2018, approximately $1,726,000 and $1,751,000 of the Company’s cash and cash equivalents, time deposits, restricted cash equivalents and registered capital deposits held by financial institutions, was insured, and the remaining balance of approximately $46,452,000 and $44,289,000, was not insured. With respect to accounts receivable, the Company generally does not require collateral and does not have an allowance for doubtful accounts.

For the three months ended March 31, 2019 and 2018, the Company’s revenues from sale of insurance policies underwritten by these companies were: 

	Three months ended March 31,
	2019					2018
	Amount		% of Total Revenue			Amount		% of Total Revenue
Farglory Life Insurance Co., Ltd.	$	4,420,420		23	%	$	4,946,056		28	%
Taiwan Life Insurance Co., Ltd.		3,371,243		17	%		2,797,736		16	%
TransGlobe Life Insurance Inc.		2,787,932		14	%		1,829,019		10	%

As of March 31, 2019 and December 31, 2018, the Company’s accounts receivable from these companies were: 

	March 31, 2019					December 31, 2018
	Amount		% of Total Accounts Receivable			Amount		% of Total Accounts Receivable
Farglory Life Insurance Co., Ltd.	$	2,847,633		28	%	$	3,139,404		20	%
Taiwan Life Insurance Co., Ltd.		1,718,223		17	%		2,578,590		17	%
TransGlobe Life Insurance Inc.		1,595,641		15	%		2,381,181		16	%

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

12

New Accounting Pronouncements and Other Guidance

New Accounting Pronouncements Effective January 1, 2019: 

Leases

On January 1, 2019, the Company adopted ASU No. 2016-02, (ASC Topic 842), Leases, which amends existing guidance to require lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by long-term leases and to disclose additional quantitative and qualitative information about leasing arrangements.

The Company adopted ASC 842 as of January 1, 2019 using a modified retrospective transition with no adjustment to its comparative periods in the year of transition. The Company elected the practical expedients, which allow the Company not to reassess prior conclusions with respect to lease identification, lease classification and initial direct costs under ASC 842. The Company did not elect the hindsight practical expedient to determine the lease term or in assessing the likelihood that a lease purchase option will be exercised. In addition, the Company elected the short-term lease recognition. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet.

The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The adoption of ASC 842 resulted in the recognition of operating lease right-of-use assets of $4.0 million and corresponding operating lease liabilities of $3.7 million as of January 1, 2019 on the consolidated balance sheet. See Note 12 for details.

Accounting Standards Issued but Not Yet Adopted

Credit Losses

In June 2016, the FASB issued ASU No. 2016-13, (Topic 326), Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments which amends the current accounting guidance and requires the use of the new forward-looking “expected loss” model, rather than the “incurred loss” model, which requires all expected losses to be determined based on historical experience, current conditions and reasonable and supportable forecasts. This guidance amends the accounting for credit losses for most financial assets and certain other instruments including trade and other receivables, held-to-maturity debt securities, loans and other instruments. ASU 2016-13 is effective for public entities for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Early adoption is permitted for annual periods beginning after December 15, 2018, and interim periods therein. The Company is evaluating the impact of the adoption of ASU 2016-13 on its financial position and results of operations.

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.

13

NOTE 3 – CASH, CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS

Cash, cash equivalents and restricted cash equivalents consisted of the following as of March 31, 2019 and December 31, 2018:

	March 31, 2019		December 31, 2018
Cash and cash equivalents:
Cash on hand and in banks	$	9,311,659	$	7,439,057
Cash equivalents – re-purchase bonds		1,296,642		-
Cash equivalents – commercial paper		-		654,006
Time deposits – with original maturities less than three months (see Note 4)		4,007,273		8,570,879
		14,615,574		16,663,942
Restricted cash equivalents		-		3,320,802
Restricted cash – noncurrent		149,006		655,027
Total cash, cash equivalents and restricted cash shown in the statements of cash flows	$	14,764,580	$	20,639,771

On March 27, 2019, the Company and China Bills Finance Corporation entered into a repurchase agreement to purchase re-purchase bonds of $1,296,642 (NTD 40,000,000) with 0.48% interest rate per annum. The re-purchase bonds were due in April 2019. As of December 31, 2018, the re-purchase bonds held by the Company was nil.

On December 14, 2018, the Company purchased a commercial paper of $654,006 (NTD 19,989,649) with 0.70% interest rate annum and with the maturity date of January 10, 2019. As of March 31, 2019, the Company did not hold any commercial paper.

As of December 31, 2018, the Company had restricted cash equivalents of $3,302,802 (NTD101,500,000), which were time deposits with original maturities less than three months and pledged to satisfy the requirements of certain debt agreements.

Noncurrent restricted cash includes a mandatory deposit in the bank in conformity with Provisions of the Supervision and Administration of Specialized Insurance Agencies in PRC, which is not allowed to be withdrawn without the permission of the regulatory commission, and a trust account held for the bonus accrued for Law Broker’s general manager.

NOTE 4 – TIME DEPOSITS

	March 31, 2019			December 31, 2018
Total time deposits	$	37,881,843		$	34,311,043
Less: Time deposits – with original maturities less than three months (see Note 3)		(4,007,273	)		(8,570,879	)
Time deposits – original maturities over three months but less than one year	$	33,874,570		$	25,740,164

Time Deposits Pledged as Collateral

As of March 31, 2019 and December 31, 2018, the Company had time deposits of $5,029,679 and $5,404,889 out of total $37,881,843 and $34,311,043, respectively, pledged as collateral for short-term loans (see Note 5).

NOTE 5 – SHORT-TERM LOANS

The Company’s short-term loans consisted of the following as of March 31, 2019 and December 31, 2018:

	March 31, 2019		December 31, 2018
Credit facility, O-Bank	$	3,241,605	$	3,600,000
Credit facility, FEIB		-		2,000,000
Credit facility, CTBC		4,441,605		1,000,000
Credit facility, KGI		1,620,803		1,600,000
Subtotal		9,304,013		8,200,000
Current portion of long-term loans (see Note 9)		241,390		235,587
Total short-term loans	$	9,545,403	$	8,435,587

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The Company entered into credit agreements with several commercial banks as follows:

· O-Bank Co., Ltd. (“O-Bank”): The Company had a revolving credit facility in amount of $4,000,000 with O-Bank. The maturity date of the revolving credit facility is September 3, 2019. Borrowings under the revolving credit facility bear interest at the TAIFX3 rate plus a margin of 0.5%. On December 7 and December 25, 2018, the Company draw down borrowings of $2,400,000 and $1,200,000, with interest at a rate of 3.60% and 3.75% per annum, respectively. These amounts were paid off in January of 2019. In September 2018, Law Broker entered into a credit agreement with O-Bank and the agreement provides for a $3,241,605 (NTD 100,000,000) revolving credit facility from September 4, 2018 to September 3, 2019. Borrowings under this agreement bear interest at the TAIBOR rate plus a margin of 0.75%. As of March 31, 2019, the revolving credit facility was fully drawn down with an interest rate of 1.55%. The credit facility is secured by a total amount of $3,241,605 (NTD 100,000,000) of time deposits.

· Far Eastern International Bank (“FEIB”): In September 2017, the Company entered into a line of credit agreement with FEIB. The line of credit was renewed on October 26, 2018 and matures on September 21, 2019. Borrowings under the agreement bear interest at the higher of LIBOR or TAIFX3 rate plus a margin of 0.85%. On December 7, 2018, the Company borrowed $2,000,000 with interest at a rate of 3.95% per annum. The Company paid off the borrowing in January 2019.

· CTBC Bank Co., Ltd. (“CTBC”): The Company has a revolving credit facility in amount of $1,500,000 with CTBC. The maturity date of the revolving credit facility is August 31, 2019. Borrowings under the revolving credit facility bear interest at the CTBC’s cost of funds plus a margin of 1%. On December 28, 2018, the Company drew down $1,000,000 with interest at a rate of 4.10% per annum and the amount was paid off in February of 2019. In February and March 2019, the Company draw down a total borrowing of $1,200,000 with interest at a rate of 3.75% per annum. Law Broker is the guarantor of the credit facility. In August 2018, Law Broker entered into a credit agreement with CTBC providing for a $3,241,605 (NTD 100,000,000) revolving credit facility. On January 4, 2019, Law Broker borrowed $3,241,605 with an interest rate of 1.50%. The amount was paid off by Law Broker in April 2019.

· KGI Commercial Bank Co., Ltd. (“KGI”): On September 19, 2018, the Company was approved for a line of credit agreement with KGI, pursuant to which the Company has a revolving credit facility of $1,600,000 from October 26, 2018 to October 26, 2019. Borrowings under the agreement bear interest at the LIBOR rate plus a margin of 0.9%. On December 27, 2018, the Company draw down a borrowing of $1,600,000 with interest at a rate of 3.41% per annum. The Company paid off the borrowing in January of 2019. In August 2018, Law Broker entered into a credit agreement with KGI providing for a $1,620,803 (NTD 50,000,000). On January 7, 2019, the revolving credit facility was fully drawn down by Law Broker. The revolving credit facility matures on July 3, 2019 and bears an interest rate of 1.52%. The credit facility is secured by a time deposit of $1,788,074 (RMB 12,000,000)

Total interest expenses for short-term loans incurred were $28,845 and $19,016, respectively, for the three months ended March 31, 2019 and 2018.

NOTE 6 – INCOME TAX PAYABLE

The Company’s taxes payable consisted of the following as of March 31, 2019 and December 31, 2018:

	March 31, 2019			December 31, 2018
Taiwan Tax	$	2,431,829		$	1,416,540
USA Tax (Note 14)		1,131,307			1,131,307
PRC Tax		700			7,590
Hong Kong Tax		61,215			51,032
Total income tax payable	$	3,625,051		$	2,606,469
Less: current portion		(2,617,728	)		(1,599,146	)
Income tax payable – noncurrent (Note 14)	$	1,007,323		$	1,007,323

15

NOTE 7 – COMMISSIONS PAYABLE TO SALES PROFESSIONALS

Commissions payable to sales professionals consisted of the following as of March 31, 2019 and December 31, 2018:

	March 31, 2018		December 31, 2018
Taiwan	$	4,476,514	$	7,602,595
PRC		477,615		411,885
Hong Kong		-		-
Total commissions payable to sales professionals	$	4,954,129	$	8,014,480

Commissions payable to sales professionals are usually settled within twelve months.

NOTE 8 – OTHER CURRENT LIABILITIES

Other current liabilities were as follows, as of March 31, 2019 and December 31, 2018:

	March 31, 2019		December 31, 2018
Unearned revenue - current	$	1,193,877	$	1,028,256
Accrued business tax and tax withholdings		574,075		893,391
Accrued bonus		1,424,303		2,320,445
Payroll payable and other benefits		1,182,664		1,360,790
Other accrued liabilities		1,069,367		1,745,959
Total other current liabilities	$	5,444,286	$	7,348,841

See Note 10 for additional information on current liabilities related to AIA International Limited Taiwan Branch (“AIATW”). 

NOTE 9 – LONG-TERM LOANS

The Company’s long-term loans consisted of the following as of March 31, 2019 and December 31, 2018:

	March 31, 2019			December 31, 2018
Loan A, interest at 8% per annum, maturity date May 15, 2019	$	126,655		$	123,611
Loan B, interest at 8% per annum, maturity date July 20, 2019		114,735			111,976
Total loans		241,390			235,587
Less: current portion (Note 5)		(241,390	)		(235,587	)
Total long-term loans	$	-		$	-

On May 15, 2016, Anhou entered into a loan agreement (“Loan A”) with an individual third party. As of March 31, 2019 and December 31, 2018, the outstanding balance of Loan A were $126,655 (RMB 850,000) and $123,611 (RMB 850,000), respectively. Loan A bears an interest rate of 8% per annum and interest is payable annually. The principal and the accrued interest are due on May 15, 2019.

On July 20, 2016, Anhou entered into a loan agreement (“Loan B”) with an individual third party. As of March 31, 2019 and December 31, 2018, the outstanding balance of Loan B were $114,735 (RMB 770,000) and $111,976 (RMB 770,000), respectively. Loan B bears an interest rate of 8% per annum and interest is payable annually. The principal and the accrued interest are due on July 20, 2019.

16

Total interest expenses for the long-term loans were $4,737 and $3,838 for the three months ended March 31, 2019 and 2018, respectively.

NOTE 10 – OTHER LIABILITIES

The Company’s other liabilities consisted of the following as of March 31, 2019 and December 31, 2018:

	March 31, 2019		December 31, 2018
Unearned revenue - AIATW	$	1,782,883	$	2,056,513
Due to previous shareholders of AHFL		480,559		480,559
Accrued bonus for Ms. Chao (Note 15)		27,013		-
Total other liabilities	$	2,290,455	$	2,537,072

Unearned revenue – AIATW

On June 10, 2013, AHFL entered into a Strategic Alliance Agreement (the “Alliance Agreement”) with AIATW, the purpose of which is to promote life insurance products provided by AIATW within Taiwan by insurance agencies or brokerage companies affiliated with AHFL or CUIS. The original term of the Alliance Agreement was from June 1, 2013 to May 31, 2018. Pursuant to the terms of the Alliance Agreement, AIATW paid AHFL an execution fee approximately $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 a 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 (“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. 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 Amendment No. 2, the expiration date of the Strategic Alliance Agreement was 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 was 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 was 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 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 agreed to calculate the amount to be returned or repaid, as applicable, based on the past and current contract year. The Company shall return the basic business promotion fees at NTD 330,000,000 for each contract years within one month after the termination.

17

The Company recognizes AIATW’s revenue from the life insurance products provided by AIATW have been met with the following criteria: (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 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			Revenue VAT Amount		Refund Amount			Refund VAT Amount
First	4/15/2013 ~ 9/30/2014	NTD	50,000,000	NTD	27,137,958	(1)	NTD	1,356,898	NTD	20,481,090	(1)	NTD	1,024,054
Second	1/1/2016 ~ 12/31/2016	NTD	35,000,000	NTD	12,855,000	(2)	NTD	642,750	NTD	20,478,333	(2)	NTD	1,023,917
Third	1/1/2017 ~ 12/31/2017	NTD	33,000,000	NTD	12,628,201	(3)	NTD	631,410	NTD	18,800,370	(3)	NTD	940,019
Fourth	1/1/2018 ~ 12/31/2018	NTD	33,000,000	NTD	11,228,600	(4)	NTD	561,429	NTD	20,199,971	(4)	NTD	1,010,000
Fifth	1/1/2019 ~ 12/31/2019	NTD	33,000,000	NTD	9,823,647	(5)	NTD	491,182	NTD	21,604,925		NTD	1,080,246
Sixth	1/1/2020 ~ 12/31/2020	NTD	33,000,000	NTD	-		NTD	-	NTD	-		NTD	-
Seventh	1/1/2021 ~ 12/31/2021	NTD	33,000,000	NTD	-		NTD	-	NTD	-		NTD	-
TOTAL		NTD	250,000,000	NTD	73,673,406		NTD	3,683,669	NTD	101,564,689		NTD	5,078,236

(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 $892,742 (NTD27,137,958), net of Value-Added Tax (“VAT”). On December 3, 2015 and February 23, 2016, the Company refunded the amounts of $160,573 (NTD4,761,905), net of VAT, and $530,056 (NTD15,719,185), net of VAT, to AIATW, respectively, due to the portion of performance sales targets not met during the first contract year.
(2)	For the year ended December 31, 2017, the Company recognized the second contract year’s revenue amount of $422,883 (NTD12,855,000), net of VAT, and refunded the amount of $690,537 (NTD20,478,333), net of VAT, for the same contract period.
(3)	For the year ended December 31, 2017, the Company estimated to recognize the third contract year’s revenue amount of $415,423 (NTD12,628,201), net of VAT, and refund the amount of $633,955 (NTD18,800,370), net of VAT, for the same contract period based on the calculation of VONB and 13-month persistency.
(4)	For the year ended December 31, 2018, the Company estimated to recognize the fourth contract year’s revenue amount of $391,223 (NTD11,788,229), net of VAT, and refund the amount of $651,816 (NTD19,640,341), net of VAT, for the same contract period based on the calculation of VONB and 13-month persistency. The revenue recorded and refund amounts were trued up to $412,230 (NTD 12,068,571) and $661,286 (NTD 19,360,000), respectively, for the year ended December 31, 2018 based on notice received from AIATW.
(5)	The Company estimated VONB and 13-month persistency ratio for the year ending December 31, 2019 and calculated the revenue amount to be $318,789 (NTD9,823,647) for the year. The amount will be reassessed every quarter until receiving AIATW’s notice.

18

The Company recognized revenue of $79,697 (NTD2,455,912), net of VAT, and $69,678 (NTD2,039,907), net of VAT for the three months ended March 31, 2019 and 2018 related to this agreement. As of March 31, 2019 and December 31, 2018, the Company had non-current portion of unearned revenue of $1,782,883 and $2,056,513, respectively, and amounts in current liabilities of $1,193,877 and $1,028,256, respectively, related to the Alliance Agreement. 

Due to previous shareholders of AHFL

Due to previous shareholders of AHFL is the entire 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, pursuant to which, the Company agreed to make the cash payment in the amount of $480,559 (NTD15 million) on or prior to March 31, 2019. On March 27, 2019, the Company and the selling shareholders of AHFL entered into a sixth amendment to the acquisition agreement, pursuant to which, the Company agreed to make the cash payment in the amount of $480,559 (NTD15 million) on or prior to March 31, 2021.

Accrued bonus for Ms. Chao

On May 10, 2016, Law Broker entered into an engagement agreement (“Engagement Agreement”) with Hui-Hsien Chao (“Ms. Chao”), pursuant to which, she serves as the general manager of Law Broker 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. The payment of such bonuses will only occur upon satisfaction of certain condition and subject to the terms in the Engagement Agreement. Ms. Chao acts as the general manager or equivalent position of Law Broker for a term of at least three years.  On March 13, 2017, Law Broker and Ms. Chao entered into an amendment to the Engagement above-mentioned to specify 1) Ms. Chao’s pension calculation assumptions and start date, and 2) the non-competition provision start date. As of March 31, 2019 and December 31, 2018, the Company had current accrued bonus of $592,130 and $597,631, and noncurrent accrued bonus of $27,013 and nil, respectively. The 2019 engagement agreement is in the process of negotiation.

NOTE 11 – REVENUE

The Company’s revenue is derived from insurance agency and brokerage services. The Company, through its subsidiaries and variable interest entities, sells insurance products provided by insurance companies to individuals, and is compensated in the form of commissions from the respective insurance companies, according to the terms of each service agreement made by and between the Company and the insurance companies. The sale of an insurance product by the Company is considered complete when initial insurance premium is paid by an individual and the insurance policy is approved by the respective insurance company. When a policy is effective, the insurance company is obligated to pay the agreed-upon commission to the Company under the terms of its service agreement with the Company and such commission is recognized as revenue.

The Company considers the contracts with insurance companies contain one performance obligation and consideration should be recorded when performance obligation is satisfied at point in time. The amount of revenue to be recognized when the insurance policy is effective includes first year commission and other contingent commission that a significant reversal of revenue would not occur in the subsequent periods. When other contingent commission that could not be determined if a significant reversal of revenue would occur, the Company recognizes the commission after receiving insurance companies’ notice.

For the three months ended March 31, 2019 and 2018, the Company recorded revenue of $19,426,674 and $17,489,380, respectively. Disaggregation information of revenue is disclosed in Note 17.

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Contract balance

	March 31, 2019		December 31, 2018
Accounts receivable	$	10,898,013	$	15,332,355
Contract assets – current		1,039,555		-
Unearned revenue – current (Note 8)		1,193,877		1,028,256
Unearned revenue – noncurrent (Note 10)		1,782,883		2,056,513

Contract assets are the Company’s conditional rights to consideration for completed performance obligation and are in relation to the performance bonus to be rewarded based on the annual performance. The Company recognizes the contingent commission as a contract asset when the performance obligation is fulfilled, and the Company has not had the unconditional rights to the payment.

Unearned revenue relates to advances received prior to performance under the contract. The related contract is the Alliance Agreement with AIATW which is disclosed in Note 10 to the consolidated financial statements.

NOTE 12 –LEASE

The Company has operating leases for its offices with lease terms ranging from one to six years. We determine if an arrangement is a lease at inception of the contract and whether a contract is or contains a lease by determining whether it conveys the right to control the use of the identified asset for a period of time. If the contract provides us the right to substantially all of the economic benefits from the use of the identified asset and the right to direct the use of the identified asset, we consider it to be, or contain, a lease. We record a right-of-use asset and a corresponding lease liability based on the present value of the minimum lease payments. The lease term used in the calculation of right-of-use assets and lease liabilities renewal and termination options that are reasonably certain to be exercised. Leases with an initial term of twelve months or less are not recorded on the consolidated balance sheet and the related lease expense is recognized on a straight-line basis over the lease term. Our leases do not provide an implicit borrowing rate, and we estimate the Company’s incremental borrowing rate to discount the lease payments based on information available at lease commencement.

For the three months ended March 31, 2019, the Company recorded operating lease cost of $652,730.

Operating lease right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. As of March 31, 2019, operating lease right-of-use assets and lease liabilities were as follows:

	March 31, 2019
Operating lease right-of-use assets	$	3,415,291
Operating lease liabilities – current		240,487
Operating lease liabilities – noncurrent		2,933,702

Lease term and discount rate

	March 31, 2019
Weighted average remaining lease term
Operating lease		3 years
Weighted average discount rate
Operating lease		3.17	%

Supplemental cash flow information related to leases

	March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows related to operating leases	$	553,544

The minimum future lease payments as of March 31, 2019 are as follows:

	Amount
2019 (reminder of year)	$	1,506,406
2020		1,194,055
2021		600,551
2022		120,310
2023		83,550
Thereafter		71,357
Total minimum lease payments		3,576,229
Less: Interest		(402,040	)
Present value of future minimum lease payments	$	3,174,189

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NOTE 13– NON-CONTROLLING INTERESTS

Non-controlling interests consisted of the following as of March 31, 2019 and December 31, 2018:

Name of Entity	% of Non- controlling Interest			December 31, 2018			Net Income (Loss)			Other Comprehensive Income (Loss)			March 31, 2019
Law Enterprise		34.05	%	$	(72,557	)	$	(59,003	)	$	(6,863	)	$	(138,423	)
Law Broker		34.05	%		16,149,662			1,239,856			(142,913	)		17,246,605
PFAL		49.00	%		436,742			36,189			(631	)		472,300
MKI		49.00	%		(2,630	)		(515	)		-			(3,145	)
PA Taiwan		49.00	%		(157,762	)		(4,649	)		(96	)		(162,507	)
PTC Nanjing		49.00	%		(2,411	)		(29	)		181			(2,259	)
Total				$	16,351,044		$	1,211,849		$	(150,322	)	$	17,412,571

Name of Entity	% of Non-  controlling Interest			December 31, 2017			Net Income (Loss)			Other Comprehensive Income (Loss)			December 31, 2018
Law Enterprise		34.05	%	$	(243,240	)	$	193,308		$	(22,625	)	$	(72,557	)
Law Broker		34.05	%		13,900,341			2,655,344			(406,023	)		16,149,662
PFAL		49.00	%		228,079			208,918			(255	)		436,742
MKI		49.00	%		(2,117	)		(513	)		-			(2,630	)
PA Taiwan		49.00	%		(145,442	)		(11,789	)		(531	)		(157,762	)
PTC Nanjing		49.00	%		(1,965	)		(26	)		(420	)		(2,411	)
Total				$	13,735,656		$	3,045,242		$	(429,854	)	$	16,351,044

NOTE 14 – INCOME TAX

The following table reconciles the Company’s statutory tax rates to effective tax rates for the three months ended March 31, 2019 and 2018:

	Three Months Ended March 31,
	2019			2018
US statutory rate		21	%		21	%
Tax rate difference		(1	)%		(1	)%
Tax base difference		1	%		1	%
Income tax on undistributed earnings		3	%		4	%
Loss in subsidiaries		1	%		1	%
U.S. one-tine transition tax		-			35	%
Others		-			1	%
Effective tax rate		25	%		62	%

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The Company’s income tax expense is mainly contributed by its subsidiaries in Taiwan and PRC.

The Company’s subsidiaries in Taiwan are governed by the Income Tax Law of Taiwan and are subject to a statutory tax rate at 20% on income reported in the statutory financial statements after appropriate adjustments. In addition, Income Tax Law of Taiwan provides that a company is taxed at additional 5% on any undistributed earnings.

CU WFOE and the VIE in the PRC are governed by the Income Tax Law of the PRC concerning the private-run 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 profit tax at the rate of 16.5% on the estimated assessable profits.

The 2017 Tax Cuts and Jobs Act (the “2017 Tax Act”) was enacted into law on December 22, 2017. The 2017 Tax Act significantly revised the U.S. corporate income tax by, among other things, lowering the statutory corporate tax rate from 35% to 21%, eliminating certain deductions, imposing a mandatory one-time tax on accumulated earnings of foreign subsidiaries, introducing new tax regimes, and changing how foreign earnings are subject to U.S. tax. The Company has determined the implication of the tax rate reduction does not have any impact on the consolidated financial statements. One-time transition tax is based on the Company’s total post-1986 earnings and profits (“E&P”) that it previously deferred from U.S. income taxes. The Company completed its calculation and recorded $1,199,195 of the transition tax on undistributed earnings of non-U.S. subsidiaries during the three months ended March 31, 2018. As of March 31, 2019 and December 31, 2018, the Company had current income tax payable of $95,936 and $95,936 and noncurrent income tax payable of $1,007,323 and $1,007,323.

In addition, the 2017 Tax Act also creates a new requirement that certain income (i.e., Global Intangible Low-Taxed Income (“GILTI”)) earned by controlled foreign corporations (“CFCs”) must be included currently in the gross income of the CFCs’ U.S. shareholder income. GILTI is the excess of the shareholder’s net CFC tested income over the net deemed tangible income return, which is currently defined as the excess of (1) 10 percent of the aggregate of the U.S. shareholder’s pro rata share of the qualified business asset investment of each CFC with respect to which it is a U.S. shareholder over (2) the amount of certain interest expense taken into account in the determination of net CFC-tested income. The Company has elected to recognize the tax on GILTI as a period expense in the period the tax is incurred. For the three months ended March 31, 2019 and 2018, no GILTI tax obligation existed and the GILTI tax expense was nil.

NOTE 15 – RELATED PARTY TRANSACTIONS

Due to related parties

The following summarized the Company’s loans payable related parties as of March 31, 2019 and December 31, 2018:

	March 31, 2019			December 31, 2018
Due to Mr. Mao (Principal shareholder of the Company)*	$	398,854		$	391,311
Accrued bonus for Ms. Chao (Shareholder of AHFL and Law Agent)		619,143			597,631
Others		2,063			7,623
Total due to related parties		1,020,060			996,565
Less: Accrued bonus for Ms. Chao – noncurrent (Note 10)		(27,013	)		-
Total	$	993,047		$	996,565

*Amounts due to Mr. Mao bear no interest and are payable on demand.

22

Advisory agreement

On December 7, 2016, the Company entered into an advisory agreement with Mr. Fu Chang Li, the Director of the Company. Pursuant to this Advisory Agreement, Mr. Li provided investment consulting services to the Company from December 7, 2016 to December 6, 2017. On December 7, 2017, both parties agreed to extend this advisory agreement from December 7, 2017 to December 6, 2018. The total advisory fee was approximately $60,000 (NTD1,800,000). For the three months ended March 31, 2019 and 2018, the Company recognized nil general and administrative expense related to this advisory agreement.

Consulting agreement

On November 1, 2016, the Company entered into a consulting agreement with Apex pursuant to which the Company would provide administrative operational consulting services to Apex from November 1, 2016 through December 31, 2021. As of March 31, 2019 and December 31, 2018, the Company had accounts receivable amounted of nil and recognized the revenue of nil and $16,753 for the three months ended March 31, 2019 and 2018, respectively.

NOTE 16 – COMMITMENTS

Operating lease

See future minimum annual lease payments in Note 12.

Pledged securities

See time deposits pledged as collateral for short-term loans in Note 5.

Appointment agreement

On December 21, 2018, Law Broker entered into an appointment agreement with Shu-Fen, Lee (“Ms. Lee”), pursuant to which, she serves as the president of Law Broker from December 21, 2018 to December 20, 2021. Ms. Lee’s primary responsibilities include 1) overall business planning, 2) implementation of resolution of the shareholders' meeting or the board of directors, 3) the appointment and dismissal of the Law Broker’s employees and sales professionals, except for internal auditors, 4) financial management and application, 5) being the representative of Law Broker, 6) other matters assigned by the board of directors. According to the agreement, Ms. Lee’s compensation plan include: 1) base salary, 2) managerial allowance, 3) surplus bonus based on 1.25% of Law Broker’s income after tax, and 4) annual year-end bonus.

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NOTE 17 – SEGMENT REPORTING

The geographical distributions of the Company’s financial information for the three months ended March 31, 2019 and 2018 were as follows:

	For three months ended March 31,
	2019			2018
Geographical Areas
Revenue
Taiwan	$	16,971,117		$	14,740,772
PRC		2,267,316			2,708,621
Hong Kong		195,195			39,987
Elimination adjustment		(6,954	)		-
Total revenue	$	19,426,674		$	17,489,380
Income (loss) from operations
Taiwan	$	3,790,078		$	3,179,722
PRC		31,584			73,190
Hong Kong		85,209			(10,084	)
Elimination adjustment		32,553			35,230
Total income from operations	$	3,939,424		$	3,278,058
Net income (loss)
Taiwan	$	3,125,888		$	1,255,468
PRC		19,368			68,468
Hong Kong		73,856			(11,049	)
Elimination adjustment		(258	)		1,635
Total net income	$	3,218,854		$	1,314,522

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The geographical distribution of the Company’s financial information as of March 31, 2019 and December 31, 2018 were as follows:

	March 31, 2019			December 31, 2018
Geographical Areas
Long-lived assets
Taiwan	$	1,014,904		$	1,092,576
PRC		142,971			102,383
Hong Kong		580			736
Elimination adjustment		(1,322	)		-
Total long-lived assets	$	1,157,133		$	1,195,695
Reportable assets
Taiwan	$	115,111,986		$	100,220,270
PRC		11,864,379			11,796,388
Hong Kong		1,118,171			1,015,400
Elimination adjustment		(56,510,099	)		(44,150,214	)
Total reportable assets	$	71,584,437		$	68,881,844
Capital investment
Taiwan	$	34,888		$	641,873
PRC		52,427			53,158
Hong Kong		-			997
Total capital investments	$	87,315		$	696,028

NOTE 18 – SUBSEQUENT EVENTS

The Company has evaluated all other subsequent events through the date these consolidated financial statements were issued and determine that there were no subsequent events or transactions that require recognition or disclosures in the consolidated financial statements except for the follows:

On April 14 and April 16, 2019, the Company drew down borrowings of $50,000 and $100,000 from the credit facility of CTBC with interest at a rate of 3.60% and 3.65% per annum, respectively. On April 29, 2019, the Company drew down $600,000 from the credit facility with O-Bank and the loan bears an interest rate of 3.38% per annum.

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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 People’s Republic of China (“PRC”). The Company also provides reinsurance brokerage services and insurance consulting services in Hong Kong and Taiwan. The percentage of reinsurance brokerage services and insurance consulting services is less than 1% of our total revenue. The insurance products that the Company’s subsidiaries sell are underwritten by some of leading insurance companies in Taiwan and PRC, respectively.

(1) Life Insurance Products

Total net revenue from Taiwan life insurance products were 80.64% and 77.70% of total net revenue for the three months ended March 31, 2019 and 2018, respectively. Total net revenue from PRC life insurance products were 11.4% and 14.9% of total net revenue for the three months ended March 31, 2019 and 2018, 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 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

Total net revenue from Taiwan property and casualty insurance products were 6.3% and 6.1% of total net revenue for the three months ended March 31, 2019 and 2018, respectively. Total net revenue from PRC property and casualty insurance products were 0.2% and 0.6% of total net revenue for the three months ended March 31, 2019 and 2018, 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 2018 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.

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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 agents, 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.

Revenue Recognition

The Company’s revenue is derived from insurance agency and brokerage services. The Company, through its subsidiaries and variable interest entities, sells insurance products provided by insurance companies to individuals, and is compensated in the form of commissions from the respective insurance companies, according to the terms of each service agreement made by and between the Company and the insurance companies.

We recognize revenue when control over services provided by the Company is transferred to the respective insurance company, whereby the transfer of control is considered complete when a policy becomes effective. When a policy is effective, the insurance company is obligated to pay the agreed-upon commission to the Company under the terms of its service agreement with the Company and such commission is recognized as revenue. Variable or contingent consideration is recognized when we conclude that is it probable that a significant reversal of revenue will not probably occur in subsequent periods.

Leases

We adopted the new lease standard as of January 1, 2019 using a modified retrospective transition with no adjustment to its comparative periods in the year of transition. The Company has operating leases for its offices. We determine if an arrangement is a lease at inception of the contract and whether a contract is or contains a lease by determining whether it conveys the right to control the use of the identified asset for a period of time. If the contract provides us the right to substantially all of the economic benefits from the use of the identified asset and the right to direct the use of the identified asset, we consider it to be, or contain, a lease. For leases with an initial term terms greater than 12 months, we record a right-of-use asset and a corresponding lease liability based on the present value of the minimum lease payments. The lease term used in the calculation of right-of-use assets and lease liabilities renewal and termination options that are reasonably certain to be exercised. Our leases do not provide an implicit borrowing rate, and we estimate the Company’s incremental borrowing rate to discount the lease payments based on information available at lease commencement.

Recent Accounting Pronouncements

Credit Losses

In June 2016, the FASB issued ASU No. 2016-13, (Topic 326), Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments which amends the current accounting guidance and requires the use of the new forward-looking “expected loss” model, rather than the “incurred loss” model, which requires all expected losses to be determined based on historical experience, current conditions and reasonable and supportable forecasts. This guidance amends the accounting for credit losses for most financial assets and certain other instruments including trade and other receivables, held-to-maturity debt securities, loans and other instruments. ASU 2016-13 is effective for public entities for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Early adoption is permitted for annual periods beginning after December 15, 2018, and interim periods therein. The Company is evaluating the impact of the adoption of ASU 2016-13 on its financial position and results of operations.

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Overview of the three months ended March 31, 2019 and 2018

The following table shows the results of operations for the three months ended March 31, 2019 and 2018:

	Three Months Ended  March 31,
	2019			2018
	(Unaudited)			(Unaudited)			Change			Percent
Revenue	$	19,426,674		$	17,489,380		$	1,937,294			11	%
Cost of revenue		11,195,074			9,621,703			1,573,371			16	%
Gross profit		8,231,600			7,867,677			363,923			5	%
Gross profit margin		42	%		45	%		-2	%		-6	%
Operating expenses:
Selling		488,620			637,998			(149,378	)		-23	%
General and administrative		3,803,556			3,951,621			(148,065	)		-4	%
Total operating expenses		4,292,176			4,589,619			(297,443	)		-6	%
Income from operations		3,939,424			3,278,058			661,366			20	%
Other income (expenses):
Interest income		88,473			97,621			(9,148	)		-9	%
Interest expenses		(33,582	)		(22,854	)		(10,728	)		47	%
Other - net		301,926			80,238			221,688			276	%
Total other income (expenses)		356,817			155,005			201,812			130	%
Income before income taxes		4,296,241			3,433,063			863,178			25	%
Income tax expense		1,077,387			2,118,541			(1,041,154	)		-49	%
Net income		3,218,854			1,314,522			1,904,332			145	%
Net income attributable to the noncontrolling interests		1,211,849			968,868			242,981			25	%
Net income attributable to shareholders of the Company		2,007,005			345,654			1,661,351			481	%

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Revenue

As a distributor of insurance products, we derive our revenue primarily from commissions and fees paid by insurance companies, typically calculated as a percentage of premiums paid by our customers to the insurance companies in among Taiwan, People’s Republic of China (“PRC”) and Hong Kong. We generate revenue primarily through our sales force, which consists of individual sales agents in our distribution and service network. For the three months ended March 31, 2019 and 2018, the revenue generated respectively from Taiwan, PRC and Hong Kong is as follows:

Geographical Areas	Three months ended March 31, 2019			Three months ended March 31, 2018
Revenue
Taiwan	$	16,971,117		$	14,740,772
PRC		2,267,316			2,708,621
Hong Kong		195,195			39,987
Elimination adjustment		(6,954	)		-
Total Revenue	$	19,426,674		$	17,489,380

During the three months ended March 31, 2019, 87.4%, 11.7% and 1.0% of our revenue in our unaudited consolidated financial statements were derived from Taiwan, PRC and Hong Kong, respectively. During the three months ended March 31, 2018, 84.3%, 15.5% and 0.2% of our revenue in our unaudited consolidated financial statements were derived from Taiwan, PRC and Hong Kong, respectively.

Overall revenue increased by $1,937,294 or 11.1% from $17,489,380 for the three months ended March 31, 2018 to $19,426,674 for the three months ended March 31, 2019 mainly due to the increase in the revenue from Taiwan segment as follows:

a)

The total revenue earned from TransGlobe Life Insurance Inc. (“TransGlobe”) increased by $958,913 from $1,829,019 for the three months ended March 31, 2018 to $2,787,932 for the three months ended March 31, 2019. The revenue from TransGlobe increased because one of the long-term care insurance products underwritten by TransGlobe was expected to discontinue in March 2019. As a result, the discontinuation of the product boosted the sales in the first quarter of 2019 because it provided more favorable terms to individual customers and the customers took advantage of the last opportunity to lock in the policy before it was no longer available. In addition, sales professionals focused on selling TransGlobe products to existing policy holders to maximize insured benefits before a regulatory change to limit total claims from multiple insurance policies up to incurred losses.

b)

The revenue earned from Shin Kong Life Insurance Co., Ltd. (“Shin Kong”) increased by $675,603 in the three months ended March 31, 2019. The main reason was that our sales professionals continued selling an interest-sensitive whole life insurance product underwritten by Shin Kong. The product offers a higher interest rate on the premium with additional benefits, which is attractive to individual customers.

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 three months ended March 31, 2019 increased by $1,573,371 or 16.4%, to $11,195,074 compared to $9,621,703 for the three months ended March 31, 2018.

This increase was primarily due to the increase of direct commission cost as a result of first year commission earned from insurance companies and Commission 2.0, which divides sales targets into smaller and more attainable targets to improve the achievement rate. As a result, cost of revenue increased more than the proportional increase of revenue.

The gross profit for the three months ended March 31, 2019 increased by $363,923 or 4.6%, to $8,231,600 compared to $7,867,677 for the three months ended March 31, 2018. The gross profit ratio decreased to 42% for the three months ended March 31, 2019 from 45% for the three months ended March 31, 2018. The decrease of the gross profit ratio was a result of Commission 2.0, which provides more incentives and rewards to the Company’s salesforce.

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Selling expenses

Selling expenses were mainly incurred by Law Broker, in connection with online marketing and advertising. The selling expense for the three months ended March 31, 2019 decreased by $149,378 or 23.4%, to $488,620, compared to $637,998 for the three months ended March 31, 2018. The decrease was mainly because the advertising expenses associated with an online reality show were incurred in 2018, and the Company did not incur related expenses in the first quarter of 2019.

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 our attorneys.

For the three months ended March 31, 2019, G&A expenses were $3,803,556, a decrease of $148,065 or 3.7%, compared with $3,951,621 for the three months ended March 31, 2018. G&A expenses incurred in the first quarter of 2019 remain relatively consistent with the same period of 2018.

Other income (expenses)

Other income for the three months ended March 31, 2019 was $356,817, an increase of $201,812 or 130%, compared with $155,005 for the three months ended March 31, 2018. Other income (expense) mainly consisted of interest income, interest expenses, gain on valuation of financial assets and gain on foreign exchange. Compared with the three months ended March 31, 2018, other income (expenses) increased primarily due to valuation gain on the real estate investment trusts and gain on foreign exchange caused by the appreciation of the RMB.

Income tax expense

For the three months ended March 31, 2019, income tax expense was $1,077,387, a decrease of $1,041,154, or 49.1%, compared with $2,118,541 for the three months ended March 31, 2018. The decrease was mainly due to the recognition of a one-time transition tax of $1,199,195 imposed on accumulated earnings of foreign subsidiaries for the three months ended March 31, 2018.

The Company’s subsidiaries in Taiwan are governed by the Income Tax Law of Taiwan and are subject to a statutory tax rate at 20% on income reported in the statutory financial statements after appropriate adjustments. In addition, Income Tax Law of Taiwan provides that a company is taxed at additional 5% on any undistributed earnings.

CU WFOE and the Anhou in the PRC are governed by the Income Tax Law of the PRC concerning the privately-held enterprises, which are generally subject to tax at 25% on income reported in the statutory financial statements after appropriated adjustments. Jiangsu, however, is taxed at 10% of total revenue, in accordance with local tax authorities rather than PRC laws.

Liquidity and Capital Resources

The following table represents a comparison of the net cash provided by operating activities, net cash (used in) provided by investing activities and net cash provided by financing activities for the three months ended March 31, 2019 and 2018:

	Three Months Ended March 31,
	2019			2018		Change			Percent
Net cash provided by operating activities	$	1,639,180		$	1,235,983		403,197			33	%
Net cash (used in) provided by investing activities		(8,489,008	)		1,325,851		(9,814,859	)		-740	%
Net cash provided by financing activities		1,112,787			32,653		1,080,134			3308	%

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Operating activities

Net cash provided by operating activities during the three months ended March 31, 2019 was $1,639,180, an increase of 33% in comparison with $1,235,983 net cash provided by operating activities during the three months ended March 31, 2018. The increase was mainly due to a strong business performance, resulting in higher net income for the three months ended March 31, 2019 compared with that of the same period in 2018.

Investing activities

Net cash used by investing activities was $8,489,008 during the three months ended March 31, 2019 as compared with the net cash provided by investing activities of $1,325,851 for the three months ended March 31, 2018. This resulted from the Company’s investment of its excess cash in time deposits in the first quarter of 2019, leading to negative cash flows from investing activities.

Financing activities

Net cash provided by financing activities was $1,112,787 during the three months ended March 31, 2019, which increased by $1,080,134 from $32,653 during the same period of 2018. The increase was mainly due to the proceeds of $9,500,000 from third party borrowings but partially offset by the repayment of $8,400,000 during the three months ended March 31, 2019.

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.

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 variable interest entities generated from the said registered capital increase into the Company. 

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

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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 several loan agreements (collectively, 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”).

Under the Investor Loan Agreements, the Investor Borrowers borrowed an aggregate principal amount equal to the US Dollar equivalent of RMB40,000,000 ($6,389,925) from ZLI Holdings in exchange for covenanting to make an equivalent investment in Anhou. The term for such loans is ten years which can be extended upon the agreement of the parties. Pursuant to the Investor Loan Agreements, each of the Investor Borrowers covenanted 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.

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

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

Mr. Chen: 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).

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Due to related parties

The following summarized the Company’s loans payable to related parties as of March 31, 2019 and December 31, 2018:

	March 31, 2019			December 31, 2018
Due to Mr. Mao (Principal shareholder of the Company)*	$	398,854		$	391,311
Accrued bonus for Ms. Chao (Shareholder of AHFL and Law Agent)**		619,143			597,631
Others		2,063			7,623
Total due to related parties		1,020,060			996,565
Less: Accrued bonus for Ms. Chao – noncurrent		(27,013	)		-
Total	$	993,047		$	996,565

*Amounts due to Mr. Mao bear no interest and are payable on demand.

** On May 10, 2016, Law Broker entered into an engagement agreement (“Engagement Agreement”) with Hui-Hsien Chao (“Ms. Chao”), pursuant to which, she serves as the general manager of Law Broker 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. The payment of such bonuses will only occur upon satisfaction of certain condition and subject to the terms in the Engagement Agreement. Ms. Chao acts as the general manager or equivalent position of Law Broker for a term of at least three years.  On March 13, 2017, Law Broker and Ms. Chao entered into an amendment to the Engagement above-mentioned to specify 1) Ms. Chao’s pension calculation assumptions and start date, and 2) the non-competition provision start date. As of March 31, 2019 and December 31, 2018, the Company had current accrued bonus of $592,130 and $597,631, and noncurrent accrued bonus of $27,013 and nil. The 2019 engagement agreement is in the process of negotiation.

Long-term loan

The Company’s long-term loans consisted of the following as of March 31, 2019 and December 31, 2018:

	March 31, 2019			December 31, 2018
Loan A, interest at 8% per annum, maturity date May 15, 2019	$	126,655		$	123,611
Loan B, interest at 8% per annum, maturity date July 20, 2019		114,735			111,976
Total loans		241,390			235,587
Less: current portion		(241,390	)		(235,587
Total long-term loans	$	-		$	-

On May 15, 2016, Anhou entered into a loan agreement (“Loan A”) with an individual third party. As of March 31, 2019 and December 31, 2018, the outstanding balance of Loan A were $126,655 (RMB 850,000) and $123,611 (RMB 850,000), respectively. Loan A bears an interest rate of 8% per annum and interest is payable annually. The principal and the accrued interest will be due on May 15, 2019.

On July 20, 2016, Anhou entered into a loan agreement (“Loan B”) with an individual third party. As of March 31, 2019 and December 31, 2018, the outstanding balance of Loan B were $114,735 (RMB 770,000) and $111,976 (RMB 770,000), respectively. Loan B bears an interest rate of 8% per annum and interest is payable annually. The principal and the accrued interest will be due on July 20, 2019.

Total interest expenses for the long-term loans were $4,737 and $3,838, respectively, for the three months ended March 31, 2019 and 2018.

Contractual Obligations

On December 21, 2018, Law Broker entered into an appointment agreement with Shu-Fen, Lee (“Ms. Lee”), pursuant to which, she serves as the president of Law Broker from December 21, 2018 to December 20, 2021. Ms. Lee’s primary responsibilities include 1) overall business planning, 2) implementation of resolution of the shareholders' meeting or the board of directors, 3) the appointment and dismissal of the Law Broker’s employees and sales professionals, except for internal auditors, 4) financial management and application, 5) being the representative of Law Broker, 6) other matters assigned by the board of directors. According to the agreement, Ms. Lee’s compensation plan include: 1) base salary, 2) managerial allowance, 3) surplus bonus based on 1.25% of Law Broker’s income after tax, and 4) annual year-end bonus.

Other than the above mentioned, there have been no significant changes to the Company’s contractual obligations as disclosed in the Company’s 2018 Annual Report filed on Form 10-K. 

33

Off Balance Sheet Arrangements

The Company has no off balance sheet arrangements.

34

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

As a smaller reporting company as defined by Rule 12b-2 of the Exchange Act, we are not required to provide the information under this item.

35

ITEM 4. CONTROLS AND PROCEDURES

(a) 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”), we conducted an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of March 31, 2019, to ensure that information required to be disclosed by us in the reports filed or submitted by us under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities Exchange Commission’s rules and forms, including to ensure that information required to be disclosed by us in the reports filed or submitted by us under the Exchange Act is accumulated and communicated to our management, including our principal executive and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that as of March 31, 2019, our disclosure controls and procedures were not effective at the reasonable assurance level due to the deficiencies and material weaknesses identified and described in this Item 9A(a) and 9A(c), respectively.

Our principal executive officers do not expect that our disclosure controls or internal controls will prevent all error and all fraud and our disclosure controls and internal controls have been deficient in preventing recent fraud. For further information, please see our Amended Current Report. Although our disclosure controls and procedures were designed to provide reasonable assurance of achieving their objectives, our principal executive officers have determined that our disclosure controls and procedures are not currently effectively at doing so. Notwithstanding, a control system, no matter how well conceived and operated, can provide only reasonable, not absolute assurance that the objectives of the system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. 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, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented if there exists in an individual a desire to do so. There can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

(b) Management’s Remediation Plan Regarding Disclosure Controls and Procedures

We are committed to remediating the control deficiencies described above by implementing changes to our internal control over disclosure controls and procedures. Pursuant to the terms of the SEC Settlement, we have retained an independent corporate monitor who will help us implement changes and improvements in the internal control over disclosure controls and procedures for remediating the control deficiencies. For further information, please see our Amended Current Report.

We are currently evaluating the impact of the deficiency and have taken or are in the process of taking the following actions in conjunction with the independent corporate monitor:

1) A review and consideration of the implementation of our earlier and revised compliance policies and procedures as they relate to trading in securities issued by us;

2) A review of our policies and procedures as they relate to the our corporate governance;

3) A review of our policies and procedures as they relate to preclearances granted by us for trading in shares of our common stock; and, until December 31, 2019, the independent corporate monitor will provide oversight over preclearances;

4) Determining whether policies and procedures are adequate and properly tailored for us;

5) A review of the education and training program at our company and a consideration of the sufficient scope and appropriate content;

6) A Review of our monitoring, testing and reporting mechanisms;

7) A review of our commitment to compliance, including senior management and board-level awareness of compliance issues;

8) A review of our allocation of resources for the compliance program, including whether resources are sufficient and properly tailored;

9) Conduct two rounds of in-person interviews of 15-20 company employees and board members in Taiwan each time; and

10) Provide an interim written report in 120 to 180 days and final written report to the SEC no later than December 31, 2019 that includes a description of the review performed, the conclusions reached, recommendations for changes in or improvements to our policies and procedures, and a procedure for implementing the recommended changes in or improvements to our policies and procedures.

36

However, we have not completed all of the corrective processes, procedures and related evaluation or remediation that we believe are necessary. As we continue to evaluate and work to remediate the control deficiencies we may determine to take additional.

Until the remediation steps set forth above, including the efforts to implement the necessary control activities we identify, are fully implemented and concluded to be operating effectively, the deficiencies described above could continue to exist.

(c) Management’s annual report on internal control over financial reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our internal control over financial reporting is designed 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. The internal controls for our Company are provided by executive management's review and approval of all transactions. Our internal control over financial reporting also includes those policies and procedures that:

(1) Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets;

(2) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. GAAP, and that our receipts and expenditures are being made only in accordance with the authorization of our management; and

(3) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect all misstatements. 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 or procedures may deteriorate.

Our management assessed the effectiveness of our internal control over financial reporting as of December 31, 2018. In making this assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework (2013). A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. In connection with management’s assessment of our internal control over financial reporting, management has identified control deficiencies that constituted material weaknesses in our internal control over financial reporting as of December 31, 2018, as described below.

(1) We have yet established an effective mechanism to proper communicate the concepts of corporate governance.

(2) Lack of a qualified experienced financial expert to lead and supervise the overall internal control over financial reporting system of the Company.

Each of the material weaknesses described above could result in a material misstatement of the annual or interim consolidated financial statements that would not be prevented or detected.

The effectiveness of our internal control over financial reporting as of December 31, 2018 has been audited by Simon & Edward, LLP, an independent registered certified public accounting firm, as stated in their report, which appears in this Annual Report.

To address these material weaknesses, management performed additional analyses and other procedures to ensure that the financial statements included herein fairly present, in all material respects, our financial position, results of operations and cash flows for the periods presented. Accordingly, we believe that the financial statements included in this report fairly present, in all material respects, our financial condition, results of operations and cash flows for the periods presented.

(d) Management’s Remediation Plan Concerning Internal Control Over Financial Reporting

We are committed to remediating the control deficiencies that constitute the material weaknesses described above by implementing changes to our internal control over financial reporting. Our Chief Financial Officer is responsible for implementing changes and improvements in the internal control over financial reporting and for remediating the control deficiencies that gave rise to the material weaknesses. We are currently evaluating the impact of the material weaknesses and have taken or are in the process of taking the following actions:

(1) We are in the process of implementing an education program aimed at improving the accounting department personnel's US GAAP knowledge. This program will require key personnel who oversee reporting functions to take classes overseen by representatives of the big four accounting firms.

37

(2) In addition to retaining external professional consultants, we are also committed to building a robust internal audit team. We are actively looking to recruit internal auditors with appropriate experience to join this team. As of March 31, 2019, two additions have been added to this team.

(3) In order to ensure the proper comprehension of corporate governance and provide further assurances regarding our internal controls, we have set up a compliance team to work closely with the independent corporate monitor to implement changes and improvements as the independent corporate monitor sees fit.  Also, our management team has tasked our administration center with the responsibility of reviewing and testing self-assessment results for high risk areas.

However, we have not completed all of the corrective processes, procedures and related evaluation or remediation that we believe are necessary. As we continue to evaluate and work to remediate the material weaknesses, we may determine to take additional measures to address the control deficiencies.

Until the remediation steps set forth above, including the efforts to implement the necessary control activities we identify, are fully implemented and concluded to be operating effectively, the material weaknesses described above will continue to exist.

38

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, 2018.

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

None.

39

ITEM 6. EXHIBITS

Exhibit
Number	Description of Exhibit
10.1	Translation of Engagement Agreement, dated December 21, 2018, by and between LAW Insurance Broker Co., Ltd. and Shu-Fen Lee
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.

40

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: May 10, 2019	By:	/s/ Yi Hsiao Mao
	Name:	Yi Hsiao Mao
	Its:	Chief Executive Officer
		(Principal Executive Officer)
Date: May 10, 2019	By:	/s/ Yung Chi Chuang
	Name:	Yung Chi Chuang
	Its:	Chief Financial Officer
		(Principal Financial and Accounting Officer)

41

EX-10.1

Exhibit 10.1

Engagement Agreement

This Engagement is signed by the two parties:

Name of party A: LAW Insurance Broker Co., Ltd. (hereinafter referred to as “Party A”)

Registered address: 5F, No. 311, Nanjing E. Rd., Songshan Dist., Taipei City, Taiwan

Postcode: 10595

Name of party B: Lee, Shu-Fen

ID No.: M221052909

Party A and party B shall reach following agreements:

1. Term and Position of Employment

Party A appoints Party B as a senior management personnel of Party A (position: Chairwoman), the term of employment is from December 21^th, 2018 to December 20^th, 2021.

2. Job description

Party B shall assist Party A in operating and managing insurance agency businesses during her term of employment, including but not limited to the following matters:

(1) Business and administration planning.

(2) Execution of resolution of the shareholders' meeting or the board of directors.

(3) The appointment and dismissal of company employees and salesmen, except for internal auditors.

(4) Execute company's financial management and use (the amount of NT) forty-five million or less at Party B’s discretion.

(5) As the representatives (including the need to act as in writing (such as signing or any issue of official letters) and personal behaviors without written documents (such as participation in a meeting or event).

(6) Other matters assigned by the Board of Directors of Party A.

3. Remuneration and Condition of employment

(1) Salary: Party A shall pay NT$ 300,000 to party B as the salary each month on fifth day of each calendar month. For less than one month, the Party A shall pay as one month.

(2) Managerial allowance: NT$ 100,000 per month.

(3) Bonus

Based on 1.25% of Party A’s income after tax

Each year, the Party A will remit such bonus to the designated bank account of Party B within five working days after the financial report is acknowledged by the shareholders' meeting of Party A.

(4) Year-end Bonus

Party A should pay the Party B three times of the monthly salary as the year-end bonus when Party A pays the employee's year-end bonus to its employees every year.

In order to promote the effectiveness of Party B in handling the appointment set forth in Article 2, Party A agrees to provide Party B with a special amount of NT$ 100,000 per month. The fee shall be used and paid in accordance with the Article 3 (1), but Party B shall provide the documents or invoices for reimbursement.

4. Special Provision

Party A agrees to provide Party B following benefits in the period of engagement:

(1) Labor insurance;

(2) Health Insurance;

(3) Group insurance (the premium will be in accordance with the negotiation between the Party A and insurance company);

(4) Domestic and foreign studies (unlimited domestic and one time for foreign);

(5) Travelling (20 days for foreign, seven days 2 times in domestic);

(6) General health examination (once a year, and with a (PET) photographic examination during the engagement.); and

(7) Other benefits according to the Labor Standards Act or related regulations, including but not limited to, Severance compensation, workers' compensation or labor pension.

5. Obligations of Party B

Party B shall be under the care of a good manager, take care of the Party A’s affairs with proper implementation and bear the following obligations during the engagement period:

(1) During the engagement period and two years after termination shall not be appointed as the party of business and others engaged in the same or similar nature of the business as the Party A, but only in the Taiwan Area is limited.

(2) Fulfill the obligation to protect the equipment (including software and hardware) of Party A.

(3) In the event of a major incident on company operations, shall immediately report to the Board to discuss the solutions.

(4) Execute the matters relating to the bounden duty of the chairwoman to perform the Companies Act, the Insurance Act or related regulations.

6. Obligations of Party A

During the term of this Engagement, the Party shall:

(1) In accordance with the provisions of Article 3, Party B shall be given remuneration as scheduled and in full.

(2) In accordance with the provisions of Article 4, the implementation of various welfare measures.

(4) At the request of Party B, provide the necessary equipment for the execution of the appointment.

7. Termination

This Engagement shall be terminated upon the expiration of this Engagement except the following conditions:

(1) This Engagement shall be terminated once re-election of all directors and supervisors of Party A.

(2) In the event that Party B disqualifies to act as the chairwoman, this Engagement shall be terminated.

(3) Due to personal physical factors have been diagnosed by doctors and Party B is unable to act as the chairwoman, Party B may terminate this Engagement at any time after notifying Party A.

(4) Party A decides to close the business, merge or make with 1/2 or more of its businesses or other capital to any third party, this Engagement shall be terminated.

(5) Party B may notify Party A in writing to terminate this Engagement in writing more than one month in advance.

Except the above articles for terminating this Engagement, either party may claim damages incurred by any termination of this Engagement or refuse to fulfill the contractual obligations.

8. Non-assignment

Either party may not assign or transfer this Engagement, in whole or in part, by operation of law or otherwise, without the other party’s express prior consent.

9. General Provisions

(1) In the event any matter or the interpretation of this Engagement is doubtful, the parties shall settle in accordance with the principle of good faith in addition to the provisions of the civil law, company law, insurance law or relevant laws and regulations.

(2) Any waiver, modification, addendum or amendment of any provision of this Engagement will be effective only if in writing and signed by duly authorized representatives of each party.

(3) All disputes arising out or in connection with this Engagement shall be settled by the first instance of the District Court of Taipei, Taiwan, Republic of China.

This Engagement may be executed in counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.

In case this Engagement is contraindicated to previous verbal and written agreements, this Engagement shall be applied. Any modification of this Engagement s must adopt each party's agreement in written.

Party A: LAW Insurance Broker Co., Ltd. legal representative or principal (sealed by):	Party B (Sealed by):  Lee, Shu-Fen
Date:  December 21th, 2018	Date:  December 21th, 2018

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: May 10, 2019	/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: May 10, 2019	/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 March 31, 2019 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: May 10, 2019	/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 March 31, 2019 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: May 10, 2019	/s/ Yung Chi Chuang
	Yung Chi Chuang
	Chief Financial Officer
	(Principal Accounting Officer)

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 09, 2019
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
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		29,421,736
Entity Emerging Growth Company	false
Entity Small Business	true

XML

CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Current assets
Cash and cash equivalents	$ 14,615,574	$ 16,663,942
Time deposits	33,874,570	25,740,164
Accounts receivable	10,898,013	15,332,355
Contract assets	1,039,555	0
Restricted cash equivalents	0	3,320,802
Other current assets	1,037,594	1,155,678
Total current assets	61,465,306	62,212,941
Property, plant and equipment, net	1,157,133	1,195,695
Operating lease assets	3,415,291	0
Intangible assets	532,357	575,985
Long-term investments	2,527,274	2,477,558
Restricted cash - noncurrent	149,006	655,027
Other assets	2,338,070	1,764,638
TOTAL ASSETS	71,584,437	68,881,844
Current liabilities
Short-term loans	9,545,403	8,435,587
Income tax payable – current	2,617,728	1,599,146
Commission payable to sales professionals	4,954,129	8,014,480
Due to related parties	993,047	996,565
Other current liabilities	5,444,286	7,348,841
Total current liabilities	23,554,593	26,394,619
Operating lease liabilities	2,933,702	0
Income tax payable – noncurrent	1,007,323	1,007,323
Other liabilities	2,290,455	2,537,072
TOTAL LIABILITIES	29,786,073	29,939,014
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	8,190,449
Statutory reserves	7,299,123	7,299,123
Retained earnings	9,280,232	7,273,227
Accumulated other comprehensive loss	(384,316)	(171,318)
Total stockholders' equity attribute to parent's shareholders	24,385,793	22,591,786
Noncontrolling interests	17,412,571	16,351,044
TOTAL STOCKHOLDERS' EQUITY	41,798,364	38,942,830
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 71,584,437	$ 68,881,844

XML

CONSOLIDATED BALANCE SHEETS [PARENTHETICAL] - $ / shares	Mar. 31, 2019	Dec. 31, 2018
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

CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME / (LOSS) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenue	$ 19,426,674	$ 17,489,380
Cost of revenue	11,195,074	9,621,703
Gross profit	8,231,600	7,867,677
Operating expenses:
Selling	488,620	637,998
General and administrative	3,803,556	3,951,621
Total operating expense	4,292,176	4,589,619
Income from operations	3,939,424	3,278,058
Other income (expenses):
Interest income	88,473	97,621
Interest expenses	(33,582)	(22,854)
Other - net	301,926	80,238
Total other income	356,817	155,005
Income before income taxes	4,296,241	3,433,063
Income tax expense	1,077,387	2,118,541
Net income	3,218,854	1,314,522
Net income attributable to noncontrolling interest	1,211,849	968,868
Net income attributable to shareholders of the Company	2,007,005	345,654
Other comprehensive income (loss)
Foreign currency translation (loss) gain	(212,998)	595,145
Other	0	525
Total other comprehensive (loss) income	(212,998)	595,670
Less: comprehensive (loss) income attributable to noncontrolling interests	(150,322)	308,007
Comprehensive income attributable to shareholders of the Company	$ 1,794,007	$ 941,324
Weighted average shares outstanding:
Basic and diluted	29,452,669	29,452,669
Earnings per share attributable to common shareholders of the Company:
Basic and diluted	$ 0.066	$ 0.011

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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)	Total	Common Stock [Member]	Preferred Stock [Member]	Additional Paid-in Capital [Member]	Statutory Reserves [Member]	Accumulated Other Comprehensive Loss [Member]	Retained Earnings [Member]	Parent [Member]	Noncontrolling Interest [Member]
Balance at Dec. 31, 2017	$ 34,743,374	$ 295	$ 10	$ 8,190,449	$ 5,781,008	$ 616,019	$ 6,419,937	$ 21,007,718	$ 13,735,656
Balance (in shares) at Dec. 31, 2017		29,452,669	1,000,000
Foreign currency translation gain	902,882	$ 0	$ 0	0	0	595,145	0	595,145	307,737
Other comprehensive gain	795	0	0	0	0	525	0	525	270
Net income	1,314,522	0	0	0	0	0	345,654	345,654	968,868
Balance at Mar. 31, 2018	36,961,573	$ 295	$ 10	8,190,449	5,781,008	1,211,689	6,765,591	21,949,042	15,012,531
Balance (in shares) at Mar. 31, 2018		29,452,669	1,000,000
Balance at Dec. 31, 2018	38,942,830	$ 295	$ 10	8,190,449	7,299,123	(171,318)	7,273,227	22,591,786	16,351,044
Balance (in shares) at Dec. 31, 2018		29,452,669	1,000,000
Foreign currency translation gain	(363,320)	$ 0	$ 0	0	0	(212,998)	0	(212,998)	(150,322)
Other comprehensive gain	0	0	0	0	0	0	0	0	0
Net income	3,218,854	0	0	0	0	0	2,007,005	2,007,005	1,211,849
Balance at Mar. 31, 2019	$ 41,798,364	$ 295	$ 10	$ 8,190,449	$ 7,299,123	$ (384,316)	$ 9,280,232	$ 24,385,793	$ 17,412,571
Balance (in shares) at Mar. 31, 2019		29,452,669	1,000,000

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net income	$ 3,218,854	$ 1,314,522
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	166,061	147,101
Amortization of bond premium	65	11
Gain on valuation of financial assets	(74,056)	(69,553)
Loss on disposal of fixed assets	10,855	0
Deferred income tax	(34,459)	(29,951)
Changes in operating assets and liabilities:
Accounts receivable	2,055,797	3,372,362
Contract assets	(1,040,568)	(378,609)
Other current assets	2,184,387	(677,593)
Other assets	(552,165)	(190,378)
Income tax payable	1,032,707	2,126,136
Commission payable	(3,004,106)	(2,308,224)
Other current liabilities	(901,092)	(1,981,048)
Long-term liabilities	(1,423,100)	(88,793)
Net cash provided by operating activities	1,639,180	1,235,983
Cash flows from investing activities:
Purchases of time deposits	(18,305,382)	(14,255,980)
Proceeds from maturities of time deposits	9,924,948	12,953,443
Purchases of structured deposits	0	(1,270,090)
Proceeds from maturities of structured deposits	0	2,605,260
Proceeds from repayment of loan made to RFL	0	1,529,920
Purchase of property, plant and equipment	(87,315)	(216,973)
Purchase of intangible assets	(21,259)	(19,729)
Net cash (used in) provided by investing activities	(8,489,008)	1,325,851
Cash flows from financing activities:
Proceeds from short-term loans	9,512,787	5,400,000
Repayment of short-term loans	(8,400,000)	(5,350,000)
Proceeds from related party borrowing	0	493,652
Repayment to related party borrowing	0	(510,999)
Net cash provided by financing activities	1,112,787	32,653
Foreign currency translation	(138,150)	375,064
Net (decrease) increase in cash, cash equivalents and restricted cash	(5,875,191)	2,969,551
Cash, cash equivalents and restricted cash, beginning balance	20,639,771	15,473,949
Cash, cash equivalents and restricted cash, ending balance	14,764,580	18,443,500
SUPPLEMENTARY DISCLOSURE:
Interest paid	40,895	20,316
Income tax paid	$ 8,176	$ 16,838

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ORGANIZATION AND PRINCIPAL ACTIVITIES

3 Months Ended

Mar. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

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

NOTE 1 – ORGANIZATION AND PRINCIPAL ACTIVITIES

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 Taiwan citizen, as a listing vehicle for both ZLI Holdings Limited (“CU Hong Kong”) and Action Holdings Financial Limited (“AHFL,” a company incorporated in the British Virgin Islands). The Company’s common stock currently trades over the counter under the ticker symbol “CUII” on the OTC Pink market.

The corporate structure as of March 31, 2019 is as follows:

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The unaudited consolidated financial statements include the accounts of China United, its subsidiaries and variable interest entities as shown in the corporate structure in Note 1. All significant intercompany transactions and balances have been eliminated in the consolidation.

Basis of Presentation

The unaudited consolidated financial statements presented herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with 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 statement of the financial statements have been included. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019.

These unaudited 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, 2018, which were included in the Company’s 2018 Annual Report on Form 10-K (“2018 Form 10-K”). The accompanying consolidated balance sheet as of December 31, 2018, has been derived from the Company’s audited consolidated financial statements as of that date.

Use of Estimates

The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and footnotes thereto. Actual results may differ from those estimates and assumptions. 

Foreign Currency Transactions

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. The resulting translation adjustments are reported under other comprehensive income in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 220 (“ASC 220”), “Reporting Comprehensive Income”. 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 using the rate of exchange prevailing at the balance sheet date. Any differences are taken to profit or loss as a gain or loss on foreign currency translation in the consolidated statements of operations and other comprehensive income (loss).

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 financial statements are as follows:

	Average Rate for the three months ended March 31,
	2019		2018
Taiwan dollar (NTD)	NTD	30.815550	NTD	29.276272
China yuan (RMB)	RMB	6.746399	RMB	6.356627
Hong Kong dollar (HKD)	HKD	7.845634	HKD	7.827061
United States dollar ($)	$	1.000000	$	1.000000

	Exchange Rate at
	March 31, 2019		December 31, 2018
Taiwan dollar (NTD)	NTD	30.848914	NTD	30.564919
China yuan (RMB)	RMB	6.711130	RMB	6.876443
Hong Kong dollar (HKD)	HKD	7.849343	HKD	7.831246
United States dollar ($)	$	1.000000	$	1.000000

Earnings Per Share

Basic earnings per common share (“EPS”) is computed by dividing net income attributable to the common shareholders of the Company by the weighted-average number of common shares outstanding. Diluted EPS is computed in the same manner as basic EPS, except the number of shares includes additional common shares that would have been outstanding if potential common shares with a dilutive effect had been issued.

As the holders of preferred stock of the Company 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 of directors, the preferred stock is treated as a participating security. When calculating the basic earnings per common share, the two-class method is used to allocate earnings to common stock and participating security as required by ASC Topic 260, “Earnings Per Share.” Potential common shares consist primarily of convertible bonds calculated using the if-converted method. However, convertible bonds were excluded from the calculation of diluted earnings per common share due to the antidilutive effect. As of March 31, 2019, the Company does not have any outstanding convertible bonds. The antidilutive common share equivalents excluded from the computation were nil and 56,883 for the three months ended March 31, 2019 and 2018, respectively.

The calculation for basic and diluted EPS is as follows:

	Three Months Ended March 31,
	2019			2018
Amounts attributable to CUIS shareholders	$	2,007,005		$	345,654
Less: Amount attributable to the participating preferred shareholders		(65,906	)		(11,351	)
Amounts attributable to CUIS common shareholders		1,941,099			334,303
Effect of dilution		-			-
Income attributable to CUIS common shareholders after dilution	$	1,941,099		$	334,303
Basic weighted-average number of common shares outstanding		29,452,669			29,452,669
Effect of convertible bonds		-			-
Diluted weighted-average number of common shares outstanding		29,452,669			29,452,669
Earnings per share attributable to CUIS common shareholders:
Basic	$	0.066		$	0.011
Diluted	$	0.066		$	0.011

Fair Value of Financial Instruments

Fair value accounting establishes a framework for measuring fair value and expands disclosure about fair value measurements. Fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels 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 fair value.

The following table presents the fair value and carrying value of the Company’s financial assets and liabilities reported at fair value on a recurring basis as of March 31, 2019 and December 31, 2018:

	March 31, 2019
	Fair Value						Carrying
	Level 1		Level 2		Level 3		Value
Assets
Marketable securities (in other current assets):
Mutual fund	$	31,902	$	-	$	-	$	31,902
Long-term investment:
Foreign government bonds		-		98,828		-		98,828
REITs		1,182,538		-		-		1,182,538

	December 31, 2018
	Fair Value						Carrying
	Level 1		Level 2		Level 3		Value
Assets
Marketable securities (in other current assets):
Mutual fund	$	30,800	$	-	$	-	$	30,800
Long-term investment:
Foreign government bonds		-		99,834		-		99,834
REITs		1,120,239		-		-		1,120,239

During the three months ended March 31, 2019, there were no assets or liabilities that were transferred between any of the levels.

Marketable securities and long-term investments in REITs– The fair value of the mutual fund and REITs is valued based on quoted market prices in active markets.

Government bonds – The fair value of government bonds is valued based on theoretical bond price in Taipei Exchange.

The amortized cost of the investment in government bonds is $97,759 and $98,732 as of March 31, 2019 and December 31, 2018, respectively. The government bonds will mature on March 17, 2021.

The carrying amounts of financial assets and liabilities in the consolidated balance sheets for cash and cash equivalents, time deposits, restricted cash and cash equivalents, accounts receivable, short-term loans, due to related parties and accrued expense approximate fair value due to the short-term duration of those instruments.

Long-term loans and due to previous shareholders – The fair value of long-term loans and due to previous shareholders are determined based on the variable nature of the interest rates and the proximity to the issuance date.

Concentration of Risk

The Company maintains cash with banks in the USA, People’s Republic of China (“PRC”), Hong Kong, and Taiwan.  Should any bank holding cash become insolvent, or if the Company is otherwise unable to withdraw funds, the Company would lose the cash with that bank; however, the Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. In Taiwan, a depositor has up to NTD3,000,000 insured by Central Deposit Insurance Corporation (“CDIC”). In China, a depositor has up to RMB500,000 insured by the People’s Bank of China Financial Stability Bureau (“FSD”). In Hong Kong, a depositor has up to HKD500,000 insured by Hong Kong Deposit Protection Board (“DPB”). In the United States, the standard insurance amount is $250,000 per depositor in a bank insured by the Federal Deposit Insurance Corporation (“FDIC”).

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents, time deposits, restricted cash, register capital deposit and accounts receivable. As of March 31, 2019 and December 31, 2018, approximately $1,726,000 and $1,751,000 of the Company’s cash and cash equivalents, time deposits, restricted cash equivalents and registered capital deposits held by financial institutions, was insured, and the remaining balance of approximately $46,452,000 and $44,289,000, was not insured. With respect to accounts receivable, the Company generally does not require collateral and does not have an allowance for doubtful accounts.

For the three months ended March 31, 2019 and 2018, the Company’s revenues from sale of insurance policies underwritten by these companies were: 

	Three months ended March 31,
	2019					2018
	Amount		% of Total Revenue			Amount		% of Total Revenue
Farglory Life Insurance Co., Ltd.	$	4,420,420		23	%	$	4,946,056		28	%
Taiwan Life Insurance Co., Ltd.		3,371,243		17	%		2,797,736		16	%
TransGlobe Life Insurance Inc.		2,787,932		14	%		1,829,019		10	%

As of March 31, 2019 and December 31, 2018, the Company’s accounts receivable from these companies were: 

	March 31, 2019					December 31, 2018
	Amount		% of Total Accounts Receivable			Amount		% of Total Accounts Receivable
Farglory Life Insurance Co., Ltd.	$	2,847,633		28	%	$	3,139,404		20	%
Taiwan Life Insurance Co., Ltd		1,718,223		17	%		2,578,590		17	%
TransGlobe Life Insurance Inc.		1,595,641		15	%		2,381,181		16	%

The Company’s operations are in the PRC, Hong Kong and Taiwan. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic, foreign currency exchange and legal environments in the PRC, Hong Kong and Taiwan, and by the state of each economy. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, Hong Kong and Taiwan, 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 and Other Guidance

New Accounting Pronouncements Effective January 1, 2019: 

Leases

On January 1, 2019, the Company adopted ASU No. 2016-02, (ASC Topic 842), Leases, which amends existing guidance to require lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by long-term leases and to disclose additional quantitative and qualitative information about leasing arrangements.

The Company adopted ASC 842 as of January 1, 2019 using a modified retrospective transition with no adjustment to its comparative periods in the year of transition. The Company elected the practical expedients, which allow the Company not to reassess prior conclusions with respect to lease identification, lease classification and initial direct costs under ASC 842. The Company did not elect the hindsight practical expedient to determine the lease term or in assessing the likelihood that a lease purchase option will be exercised. In addition, the Company elected the short-term lease recognition. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet.

The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The adoption of ASC 842 resulted in the recognition of operating lease right-of-use assets of $4.0 million and corresponding operating lease liabilities of $3.7 million as of January 1, 2019 on the consolidated balance sheet. See Note 12 for details.

Accounting Standards Issued but Not Yet Adopted

Credit Losses

In June 2016, the FASB issued ASU No. 2016-13, (Topic 326), Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments which amends the current accounting guidance and requires the use of the new forward-looking “expected loss” model, rather than the “incurred loss” model, which requires all expected losses to be determined based on historical experience, current conditions and reasonable and supportable forecasts. This guidance amends the accounting for credit losses for most financial assets and certain other instruments including trade and other receivables, held-to-maturity debt securities, loans and other instruments. ASU 2016-13 is effective for public entities for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Early adoption is permitted for annual periods beginning after December 15, 2018, and interim periods therein. The Company is evaluating the impact of the adoption of ASU 2016-13 on its financial position and results of operations.

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.

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CASH, CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS

3 Months Ended

Mar. 31, 2019

Restricted Cash and Cash Equivalents [Abstract]

Cash and Cash Equivalents Disclosure [Text Block]

NOTE 3 – CASH, CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS

Cash, cash equivalents and restricted cash equivalents consisted of the following as of March 31, 2019 and December 31, 2018:

	March 31, 2019		December 31, 2018
Cash and cash equivalents:
Cash on hand and in banks	$	9,311,659	$	7,439,057
Cash equivalents – re-purchase bonds		1,296,642		-
Cash equivalents – commercial paper		-		654,006
Time deposits – with original maturities less than three months (see Note 4)		4,007,273		8,570,879
		14,615,574		16,663,942
Restricted cash equivalents		-		3,320,802
Restricted cash – noncurrent		149,006		655,027
Total cash, cash equivalents and restricted cash shown in the statements of cash flows	$	14,764,580	$	20,639,771

On March 27, 2019, the Company and China Bills Finance Corporation entered into a repurchase agreement to purchase re-purchase bonds of $1,296,642 (NTD 40,000,000) with 0.48% interest rate per annum. The re-purchase bonds were due in April 2019. As of December 31, 2018, the re-purchase bonds held by the Company was nil.

On December 14, 2018, the Company purchased a commercial paper of $654,006 (NTD 19,989,649) with 0.70% interest rate annum and with the maturity date of January 10, 2019. As of March 31, 2019, the Company did not hold any commercial paper.

As of December 31, 2018, the Company had restricted cash equivalents of $3,302,802 (NTD101,500,000), which were time deposits with original maturities less than three months and pledged to satisfy the requirements of certain debt agreements.

Noncurrent restricted cash includes a mandatory deposit in the bank in conformity with Provisions of the Supervision and Administration of Specialized Insurance Agencies in PRC, which is not allowed to be withdrawn without the permission of the regulatory commission, and a trust account held for the bonus accrued for Law Broker’s general manager.

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TIME DEPOSITS

3 Months Ended

Mar. 31, 2019

Short-term Investments [Abstract]

Cash, Cash Equivalents, and Short-term Investments [Text Block]

NOTE 4 – TIME DEPOSITS

	March 31, 2019			December 31, 2018
Total time deposits	$	37,881,843		$	34,311,043
Less: Time deposits – with original maturities less than three months (see Note 3)		(4,007,273	)		(8,570,879	)
Time deposits – original maturities over three months but less than one year	$	33,874,570		$	25,740,164

Time Deposits Pledged as Collateral

As of March 31, 2019 and December 31, 2018, the Company had time deposits of $5,029,679 and $5,404,889 out of total $37,881,843 and $34,311,043, respectively, pledged as collateral for short-term loans (see Note 5).

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SHORT-TERM LOANS

3 Months Ended

Mar. 31, 2019

Short-term Debt [Abstract]

Short-term Debt [Text Block]

NOTE 5 – SHORT-TERM LOANS

The Company’s short-term loans consisted of the following as of March 31, 2019 and December 31, 2018:

	March 31, 2019		December 31, 2018
Credit facility, O-Bank	$	3,241,605	$	3,600,000
Credit facility, FEIB		-		2,000,000
Credit facility, CTBC		4,441,605		1,000,000
Credit facility, KGI		1,620,803		1,600,000
Subtotal		9,304,013		8,200,000
Current portion of long-term loans (see Note 9)		241,390		235,587
Total short-term loans	$	9,545,403	$	8,435,587

The Company entered into credit agreements with several commercial banks as follows:

 O-Bank Co., Ltd. (“O-Bank”): The Company had a revolving credit facility in amount of $4,000,000 with O-Bank. The maturity date of the revolving credit facility is September 3, 2019. Borrowings under the revolving credit facility bear interest at the TAIFX3 rate plus a margin of 0.5%. On December 7 and December 25, 2018, the Company draw down borrowings of $2,400,000 and $1,200,000, with interest at a rate of 3.60% and 3.75% per annum, respectively. These amounts were paid off in January of 2019. In September 2018, Law Broker entered into a credit agreement with O-Bank and the agreement provides for a $3,241,605 (NTD 100,000,000) revolving credit facility from September 4, 2018 to September 3, 2019. Borrowings under this agreement bear interest at the TAIBOR rate plus a margin of 0.75%. As of March 31, 2019, the revolving credit facility was fully drawn down with an interest rate of 1.55%. The credit facility is secured by a total amount of $3,241,605 (NTD 100,000,000) of time deposits.

 Far Eastern International Bank (“FEIB”): In September 2017, the Company entered into a line of credit agreement with FEIB. The line of credit was renewed on October 26, 2018 and matures on September 21, 2019. Borrowings under the agreement bear interest at the higher of LIBOR or TAIFX3 rate plus a margin of 0.85%. On December 7, 2018, the Company borrowed $2,000,000 with interest at a rate of 3.95% per annum. The Company paid off the borrowing in January 2019.

 CTBC Bank Co., Ltd. (“CTBC”): The Company has a revolving credit facility in amount of $1,500,000 with CTBC. The maturity date of the revolving credit facility is August 31, 2019. Borrowings under the revolving credit facility bear interest at the CTBC’s cost of funds plus a margin of 1%. On December 28, 2018, the Company drew  down $1,000,000 with interest at a rate of 4.10% per annum and the amount was paid off in February of 2019. In February and March 2019, the Company draw down a total borrowing of $1,200,000 with interest at a rate of 3.75% per annum. Law Broker is the guarantor of the credit facility. In August 2018, Law Broker entered into a credit agreement with CTBC providing for a $3,241,605 (NTD 100,000,000) revolving credit facility. On January 4, 2019, Law Broker borrowed $3,241,605 with an interest rate of 1.50%. The amount was paid off by Law Broker in April 2019.

 KGI Commercial Bank Co., Ltd. (“KGI”): On September 19, 2018, the Company was approved for a line of credit agreement with KGI, pursuant to which the Company has a revolving credit facility of $1,600,000 from October 26, 2018 to October 26, 2019. Borrowings under the agreement bear interest at the LIBOR rate plus a margin of 0.9%. On December 27, 2018, the Company draw down a borrowing of $1,600,000 with interest at a rate of 3.41% per annum. The Company paid off the borrowing in January of 2019. In August 2018, Law Broker entered into a credit agreement with KGI providing for a $1,620,803 (NTD 50,000,000). On January 7, 2019, the revolving credit facility was fully drawn down by Law Broker. The revolving credit facility matures on July 3, 2019 and bears an interest rate of 1.52%. The credit facility is secured by a time deposit of $1,788,074 (RMB 12,000,000)

Total interest expenses for short-term loans incurred were $28,845 and $19,016, respectively, for the three months ended March 31, 2019 and 2018.

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INCOME TAX PAYABLE

3 Months Ended

Mar. 31, 2019

Income Tax Disclosure [Abstract]

Taxes Payable Disclosure [Text Block]

NOTE 6 – INCOME TAX PAYABLE

The Company’s taxes payable consisted of the following as of March 31, 2019 and December 31, 2018:

	March 31, 2019			December 31, 2018
Taiwan Tax	$	2,431,829		$	1,416,540
USA Tax (Note 14)		1,131,307			1,131,307
PRC Tax		700			7,590
Hong Kong Tax		61,215			51,032
Total income tax payable	$	3,625,051		$	2,606,469
Less: current portion		(2,617,728	)		(1,599,146	)
Income tax payable – noncurrent (Note 14)	$	1,007,323		$	1,007,323

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COMMISSIONS PAYABLE TO SALES PROFESSIONALS

3 Months Ended

Mar. 31, 2019

Payables and Accruals [Abstract]

Disclosure Of Commissions Payable [Text Block]

NOTE 7 – COMMISSIONS PAYABLE TO SALES PROFESSIONALS

Commissions payable to sales professionals consisted of the following as of March 31, 2019 and December 31, 2018:

	March 31, 2018		December 31, 2018
Taiwan	$	4,476,514	$	7,602,595
PRC		477,615		411,885
Hong Kong		-		-
Total commissions payable to sales professionals	$	4,954,129	$	8,014,480

Commissions payable to sales professionals are usually settled within twelve months.

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OTHER CURRENT LIABILITIES

3 Months Ended

Mar. 31, 2019

Other Liabilities Disclosure [Abstract]

Other Liabilities Disclosure [Text Block]

NOTE 8 – OTHER CURRENT LIABILITIES

Other current liabilities were as follows, as of March 31, 2019 and December 31, 2018:

	March 31, 2019		December 31, 2018
Unearned revenue - current	$	1,193,877	$	1,028,256
Accrued business tax and tax withholdings		574,075		893,391
Accrued bonus		1,424,303		2,320,445
Payroll payable and other benefits		1,182,664		1,360,790
Other accrued liabilities		1,069,367		1,745,959
Total other current liabilities	$	5,444,286	$	7,348,841

See Note 10 for additional information on current liabilities related to AIA International Limited Taiwan Branch (“AIATW”). 

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LONG-TERM LOANS

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Long-term Debt [Text Block]

NOTE 9 – LONG-TERM LOANS

The Company’s long-term loans consisted of the following as of March 31, 2019 and December 31, 2018:

	March 31, 2019			December 31, 2018
Loan A, interest at 8% per annum, maturity date May 15, 2019	$	126,655		$	123,611
Loan B, interest at 8% per annum, maturity date July 20, 2019		114,735			111,976
Total loans		241,390			235,587
Less: current portion (Note 5)		(241,390	)		(235,587	)
Total long-term loans	$	-		$	-

On May 15, 2016, Anhou entered into a loan agreement (“Loan A”) with an individual third party. As of March 31, 2019 and December 31, 2018, the outstanding balance of Loan A were $126,655 (RMB 850,000) and $123,611 (RMB 850,000), respectively. Loan A bears an interest rate of 8% per annum and interest is payable annually. The principal and the accrued interest are due on May 15, 2019.

On July 20, 2016, Anhou entered into a loan agreement (“Loan B”) with an individual third party. As of March 31, 2019 and December 31, 2018, the outstanding balance of Loan B were $114,735 (RMB 770,000) and $111,976 (RMB 770,000), respectively. Loan B bears an interest rate of 8% per annum and interest is payable annually. The principal and the accrued interest are due on July 20, 2019.

Total interest expenses for the long-term loans were $4,737 and $3,838 for the three months ended March 31, 2019 and 2018, respectively.

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OTHER LIABILITIES

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Long-term Liabilities Disclosure [Text Block]

NOTE 10 – OTHER LIABILITIES

The Company’s other liabilities consisted of the following as of March 31, 2019 and December 31, 2018:

	March 31, 2019		December 31, 2018
Unearned revenue - AIATW	$	1,782,883	$	2,056,513
Due to previous shareholders of AHFL		480,559		480,559
Accrued bonus for Ms. Chao (Note 15)		27,013		-
Total other liabilities	$	2,290,455	$	2,537,072

Unearned revenue – AIATW

On June 10, 2013, AHFL entered into a Strategic Alliance Agreement (the “Alliance Agreement”) with AIATW, the purpose of which is to promote life insurance products provided by AIATW within Taiwan by insurance agencies or brokerage companies affiliated with AHFL or CUIS. The original term of the Alliance Agreement was from June 1, 2013 to May 31, 2018. Pursuant to the terms of the Alliance Agreement, AIATW paid AHFL an execution fee approximately $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 a 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 (“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. 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 Amendment No. 2, the expiration date of the Strategic Alliance Agreement was 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 was 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 was 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 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 agreed to calculate the amount to be returned or repaid, as applicable, based on the past and current contract year. 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 from the life insurance products provided by AIATW have been met with the following criteria: (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 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			Revenue VAT Amount		Refund Amount			Refund VAT Amount
First	4/15/2013 ~ 9/30/2014	NTD	50,000,000	NTD	27,137,958	(1)	NTD	1,356,898	NTD	20,481,090	(1)	NTD	1,024,054
Second	1/1/2016 ~ 12/31/2016	NTD	35,000,000	NTD	12,855,000	(2)	NTD	642,750	NTD	20,478,333	(2)	NTD	1,023,917
Third	1/1/2017 ~ 12/31/2017	NTD	33,000,000	NTD	12,628,201	(3)	NTD	631,410	NTD	18,800,370	(3)	NTD	940,019
Fourth	1/1/2018 ~ 12/31/2018	NTD	33,000,000	NTD	11,228,600	(4)	NTD	561,429	NTD	20,199,971	(4)	NTD	1,010,000
Fifth	1/1/2019 ~ 12/31/2019	NTD	33,000,000	NTD	9,823,647	(5)	NTD	491,182	NTD	21,604,925		NTD	1,080,246
Sixth	1/1/2020 ~ 12/31/2020	NTD	33,000,000	NTD	-		NTD	-	NTD	-		NTD	-
Seventh	1/1/2021 ~ 12/31/2021	NTD	33,000,000	NTD	-		NTD	-	NTD	-		NTD	-
TOTAL		NTD	250,000,000	NTD	73,673,406		NTD	3,683,669	NTD	101,564,689		NTD	5,078,236

(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 $892,742 (NTD27,137,958), net of Value-Added Tax (“VAT”). On December 3, 2015 and February 23, 2016, the Company refunded the amounts of $160,573 (NTD4,761,905), net of VAT, and $530,056 (NTD15,719,185), net of VAT, to AIATW, respectively, due to the portion of performance sales targets not met during the first contract year.
(2)	For the year ended December 31, 2017, the Company recognized the second contract year’s revenue amount of $422,883 (NTD12,855,000), net of VAT, and refunded the amount of $690,537 (NTD20,478,333), net of VAT, for the same contract period.
(3)	For the year ended December 31, 2017, the Company estimated to recognize the third contract year’s revenue amount of $415,423 (NTD12,628,201), net of VAT, and refund the amount of $633,955 (NTD18,800,370), net of VAT, for the same contract period based on the calculation of VONB and 13-month persistency.
(4)	For the year ended December 31, 2018, the Company estimated to recognize the fourth contract year’s revenue amount of $391,223 (NTD11,788,229), net of VAT, and refund the amount of $651,816 (NTD19,640,341), net of VAT, for the same contract period based on the calculation of VONB and 13-month persistency. The revenue recorded and refund amounts were trued up to $412,230 (NTD 12,068,571) and $661,286 (NTD 19,360,000), respectively, for the year ended December 31, 2018 based on notice received from AIATW.
(5)	The Company estimated VONB and 13-month persistency ratio for the year ending December 31, 2019 and calculated the revenue amount to be $318,789 (NTD9,823,647) for the year. The amount will be reassessed every quarter until receiving AIATW’s notice.

The Company recognized revenue of $79,697 (NTD2,455,912), net of VAT, and $69,678 (NTD2,039,907), net of VAT for the three months ended March 31, 2019 and 2018 related to this agreement. As of March 31, 2019 and December 31, 2018, the Company had non-current portion of unearned revenue of $1,782,883 and $2,056,513, respectively, and amounts in current liabilities of $1,193,877 and $1,028,256, respectively, related to the Alliance Agreement. 

Due to previous shareholders of AHFL

Due to previous shareholders of AHFL is the entire 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, pursuant to which, the Company agreed to make the cash payment in the amount of $480,559 (NTD15 million) on or prior to March 31, 2019. On March 27, 2019, the Company and the selling shareholders of AHFL entered into a sixth amendment to the acquisition agreement, pursuant to which, the Company agreed to make the cash payment in the amount of $480,559 (NTD15 million) on or prior to March 31, 2021.

Accrued bonus for Ms. Chao

On May 10, 2016, Law Broker entered into an engagement agreement (“Engagement Agreement”) with Hui-Hsien Chao (“Ms. Chao”), pursuant to which, she serves as the general manager of Law Broker 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. The payment of such bonuses will only occur upon satisfaction of certain condition and subject to the terms in the Engagement Agreement. Ms. Chao acts as the general manager or equivalent position of Law Broker for a term of at least three years.  On March 13, 2017, Law Broker and Ms. Chao entered into an amendment to the Engagement above-mentioned to specify 1) Ms. Chao’s pension calculation assumptions and start date, and 2) the non-competition provision start date. As of March 31, 2019 and December 31, 2018, the Company had current accrued bonus of $592,130 and $597,631, and noncurrent accrued bonus of $27,013 and nil, respectively. The 2019 engagement agreement is in the process of negotiation.

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REVENUE

3 Months Ended

Mar. 31, 2019

Revenue Recognition [Abstract]

Revenue Recognition [Text Block]

NOTE 11 – REVENUE

The Company’s revenue is derived from insurance agency and brokerage services. The Company, through its subsidiaries and variable interest entities, sells insurance products provided by insurance companies to individuals, and is compensated in the form of commissions from the respective insurance companies, according to the terms of each service agreement made by and between the Company and the insurance companies. The sale of an insurance product by the Company is considered complete when initial insurance premium is paid by an individual and the insurance policy is approved by the respective insurance company. When a policy is effective, the insurance company is obligated to pay the agreed-upon commission to the Company under the terms of its service agreement with the Company and such commission is recognized as revenue.

The Company considers the contracts with insurance companies contain one performance obligation and consideration should be recorded when performance obligation is satisfied at point in time. The amount of revenue to be recognized when the insurance policy is effective includes first year commission and other contingent commission that a significant reversal of revenue would not occur in the subsequent periods. When other contingent commission that could not be determined if a significant reversal of revenue would occur, the Company recognizes the commission after receiving insurance companies’ notice.

For the three months ended March 31, 2019 and 2018, the Company recorded revenue of $19,426,674 and $17,489,380, respectively. Disaggregation information of revenue is disclosed in Note 17.

Contract balance

	March 31, 2019		December 31, 2018
Accounts receivable	$	10,898,013	$	15,332,355
Contract assets – current		1,039,555		-
Unearned revenue – current (Note 8)		1,193,877		1,028,256
Unearned revenue – noncurrent (Note 10)		1,782,883		2,056,513

Contract assets are the Company’s conditional rights to consideration for completed performance obligation and are in relation to the performance bonus to be rewarded based on the annual performance. The Company recognizes the contingent commission as a contract asset when the performance obligation is fulfilled, and the Company has not had the unconditional rights to the payment.

Unearned revenue relates to advances received prior to performance under the contract. The related contract is the Alliance Agreement with AIATW which is disclosed in Note 10 to the consolidated financial statements.

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LEASE

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

LEASE

NOTE 12 –LEASE

The Company has operating leases for its offices with lease terms ranging from one to six years. We determine if an arrangement is a lease at inception of the contract and whether a contract is or contains a lease by determining whether it conveys the right to control the use of the identified asset for a period of time. If the contract provides us the right to substantially all of the economic benefits from the use of the identified asset and the right to direct the use of the identified asset, we consider it to be, or contain, a lease. We record a right-of-use asset and a corresponding lease liability based on the present value of the minimum lease payments. The lease term used in the calculation of right-of-use assets and lease liabilities renewal and termination options that are reasonably certain to be exercised. Leases with an initial term of twelve months or less are not recorded on the consolidated balance sheet and the related lease expense is recognized on a straight-line basis over the lease term. Our leases do not provide an implicit borrowing rate, and we estimate the Company’s incremental borrowing rate to discount the lease payments based on information available at lease commencement.

For the three months ended March 31, 2019, the Company recorded operating lease cost of $652,730.

Operating lease right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. As of March 31, 2019, operating lease right-of-use assets and lease liabilities were as follows:

	March 31, 2019
Operating lease right-of-use assets	$	3,415,291
Operating lease liabilities – current		240,487
Operating lease liabilities – noncurrent		2,933,702

Lease term and discount rate

	March 31, 2019
Weighted average remaining lease term
Operating lease		3 years
Weighted average discount rate
Operating lease		3.17	%

Supplemental cash flow information related to leases

	March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows related to operating leases	$	553,544

The minimum future lease payments as of March 31, 2019 are as follows:

	Amount
2019 (reminder of year)	$	1,506,406
2020		1,194,055
2021		600,551
2022		120,310
2023		83,550
Thereafter		71,357
Total minimum lease payments		3,576,229
Less: Interest		(402,040	)
Present value of future minimum lease payments	$	3,174,189

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NON-CONTROLLING INTERESTS

3 Months Ended

Mar. 31, 2019

Noncontrolling Interest [Abstract]

Noncontrolling Interest Disclosure [Text Block]

NOTE 13– NON-CONTROLLING INTERESTS

Non-controlling interests consisted of the following as of March 31, 2019 and December 31, 2018:

Name of Entity	% of Non- controlling Interest			December 31, 2018			Net Income (Loss)			Other Comprehensive Income (Loss)			March 31, 2019
Law Enterprise		34.05	%	$	(72,557	)	$	(59,003	)	$	(6,863	)	$	(138,423	)
Law Broker		34.05	%		16,149,662			1,239,856			(142,913	)		17,246,605
PFAL		49.00	%		436,742			36,189			(631	)		472,300
MKI		49.00	%		(2,630	)		(515	)		-			(3,145	)
PA Taiwan		49.00	%		(157,762	)		(4,649	)		(96	)		(162,507	)
PTC Nanjing		49.00	%		(2,411	)		(29	)		181			(2,259	)
Total				$	16,351,044		$	1,211,849		$	(150,322	)	$	17,412,571

Name of Entity	% of Non-  controlling Interest			December 31, 2017			Net Income (Loss)			Other Comprehensive Income (Loss)			December 31, 2018
Law Enterprise		34.05	%	$	(243,240	)	$	193,308		$	(22,625	)	$	(72,557	)
Law Broker		34.05	%		13,900,341			2,655,344			(406,023	)		16,149,662
PFAL		49.00	%		228,079			208,918			(255	)		436,742
MKI		49.00	%		(2,117	)		(513	)		-			(2,630	)
PA Taiwan		49.00	%		(145,442	)		(11,789	)		(531	)		(157,762	)
PTC Nanjing		49.00	%		(1,965	)		(26	)		(420	)		(2,411	)
Total				$	13,735,656		$	3,045,242		$	(429,854	)	$	16,351,044

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INCOME TAX

3 Months Ended

Mar. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes Excluding Taxes Payable Disclosure [Text Block]

NOTE 14 – INCOME TAX

The following table reconciles the Company’s statutory tax rates to effective tax rates for the three months ended March 31, 2019 and 2018:

	Three Months Ended March 31,
	2019			2018
US statutory rate		21	%		21	%
Tax rate difference		(1	)%		(1	)%
Tax base difference		1	%		1	%
Income tax on undistributed earnings		3	%		4	%
Loss in subsidiaries		1	%		1	%
U.S. one-tine transition tax		-			35	%
Others		-			1	%
Effective tax rate		25	%		62	%

The Company’s income tax expense is mainly contributed by its subsidiaries in Taiwan and PRC.

The Company’s subsidiaries in Taiwan are governed by the Income Tax Law of Taiwan and are subject to a statutory tax rate at 20% on income reported in the statutory financial statements after appropriate adjustments. In addition, Income Tax Law of Taiwan provides that a company is taxed at additional 5% on any undistributed earnings.

CU WFOE and the VIE in the PRC are governed by the Income Tax Law of the PRC concerning the private-run 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 profit tax at the rate of 16.5% on the estimated assessable profits.

The 2017 Tax Cuts and Jobs Act (the “2017 Tax Act”) was enacted into law on December 22, 2017. The 2017 Tax Act significantly revised the U.S. corporate income tax by, among other things, lowering the statutory corporate tax rate from 35% to 21%, eliminating certain deductions, imposing a mandatory one-time tax on accumulated earnings of foreign subsidiaries, introducing new tax regimes, and changing how foreign earnings are subject to U.S. tax. The Company has determined the implication of the tax rate reduction does not have any impact on the consolidated financial statements. One-time transition tax is based on the Company’s total post-1986 earnings and profits (“E&P”) that it previously deferred from U.S. income taxes. The Company completed its calculation and recorded $1,199,195 of the transition tax on undistributed earnings of non-U.S. subsidiaries during the three months ended March 31, 2018. As of March 31, 2019 and December 31, 2018, the Company had current income tax payable of $95,936 and $95,936 and noncurrent income tax payable of $1,007,323 and $1,007,323.

In addition, the 2017 Tax Act also creates a new requirement that certain income (i.e., Global Intangible Low-Taxed Income (“GILTI”)) earned by controlled foreign corporations (“CFCs”) must be included currently in the gross income of the CFCs’ U.S. shareholder income. GILTI is the excess of the shareholder’s net CFC tested income over the net deemed tangible income return, which is currently defined as the excess of (1) 10 percent of the aggregate of the U.S. shareholder’s pro rata share of the qualified business asset investment of each CFC with respect to which it is a U.S. shareholder over (2) the amount of certain interest expense taken into account in the determination of net CFC-tested income. The Company has elected to recognize the tax on GILTI as a period expense in the period the tax is incurred. For the three months ended March 31, 2019 and 2018, no GILTI tax obligation existed and the GILTI tax expense was nil.

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RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2019

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

NOTE 15 – RELATED PARTY TRANSACTIONS

Due to related parties

The following summarized the Company’s loans payable related parties as of March 31, 2019 and December 31, 2018:

	March 31, 2019			December 31, 2018
Due to Mr. Mao (Principal shareholder of the Company)*	$	398,854		$	391,311
Accrued bonus for Ms. Chao (Shareholder of AHFL and Law Agent)		619,143			597,631
Others		2,063			7,623
Total due to related parties		1,020,060			996,565
Less: Accrued bonus for Ms. Chao – noncurrent (Note 10)		(27,013	)		-
Total	$	993,047		$	996,565

*Amounts due to Mr. Mao bear no interest and are payable on demand.

Advisory agreement

On December 7, 2016, the Company entered into an advisory agreement with Mr. Fu Chang Li, the Director of the Company. Pursuant to this Advisory Agreement, Mr. Li provided investment consulting services to the Company from December 7, 2016 to December 6, 2017. On December 7, 2017, both parties agreed to extend this advisory agreement from December 7, 2017 to December 6, 2018. The total advisory fee was approximately $60,000 (NTD1,800,000). For the three months ended March 31, 2019 and 2018, the Company recognized nil general and administrative expense related to this advisory agreement.

Consulting agreement

On November 1, 2016, the Company entered into a consulting agreement with Apex pursuant to which the Company would provide administrative operational consulting services to Apex from November 1, 2016 through December 31, 2021. As of March 31, 2019 and December 31, 2018, the Company had accounts receivable amounted of nil and recognized the revenue of nil and $16,753 for the three months ended March 31, 2019 and 2018, respectively.

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COMMITMENTS

3 Months Ended

Mar. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments Disclosure [Text Block]

NOTE 16 – COMMITMENTS

Operating lease

See future minimum annual lease payments in Note 12.

Pledged securities

See time deposits pledged as collateral for short-term loans in Note 5.

Appointment agreement

On December 21, 2018, Law Broker entered into an appointment agreement with Shu-Fen, Lee (“Ms. Lee”), pursuant to which, she serves as the president of Law Broker from December 21, 2018 to December 20, 2021. Ms. Lee’s primary responsibilities include 1) overall business planning, 2) implementation of resolution of the shareholders' meeting or the board of directors, 3) the appointment and dismissal of the Law Broker’s employees and sales professionals, except for internal auditors, 4) financial management and application, 5) being the representative of Law Broker, 6) other matters assigned by the board of directors. According to the agreement, Ms. Lee’s compensation plan include: 1) base salary, 2) managerial allowance, 3) surplus bonus based on 1.25% of Law Broker’s income after tax, and 4) annual year-end bonus.

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SEGMENT REPORTING

3 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE 17 – SEGMENT REPORTING

The geographical distributions of the Company’s financial information for the three months ended March 31, 2019 and 2018 were as follows:

	For three months ended March 31,
	2019			2018
Geographical Areas
Revenue
Taiwan	$	16,971,117		$	14,740,772
PRC		2,267,316			2,708,621
Hong Kong		195,195			39,987
Elimination adjustment		(6,954	)		-
Total revenue	$	19,426,674		$	17,489,380
Income (loss) from operations
Taiwan	$	3,790,078		$	3,179,722
PRC		31,584			73,190
Hong Kong		85,209			(10,084	)
Elimination adjustment		32,553			35,230
Total income from operations	$	3,939,424		$	3,278,058
Net income (loss)
Taiwan	$	3,125,888		$	1,255,468
PRC		19,368			68,468
Hong Kong		73,856			(11,049	)
Elimination adjustment		(258	)		1,635
Total net income	$	3,218,854		$	1,314,522

The geographical distribution of the Company’s financial information as of March 31, 2019 and December 31, 2018 were as follows:

	March 31, 2019			December 31, 2018
Geographical Areas
Long-lived assets
Taiwan	$	1,014,904		$	1,092,576
PRC		142,971			102,383
Hong Kong		580			736
Elimination adjustment		(1,322	)		-
Total long-lived assets	$	1,157,133		$	1,195,695
Reportable assets
Taiwan	$	115,111,986		$	100,220,270
PRC		11,864,379			11,796,388
Hong Kong		1,118,171			1,015,400
Elimination adjustment		(56,510,099	)		(44,150,214	)
Total reportable assets	$	71,584,437		$	68,881,844
Capital investment
Taiwan	$	34,888		$	641,873
PRC		52,427			53,158
Hong Kong		-			997
Total capital investments	$	87,315		$	696,028

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SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2019

Subsequent Events [Abstract]

Subsequent Events [Text Block]

NOTE 18 – SUBSEQUENT EVENTS

The Company has evaluated all other subsequent events through the date these consolidated financial statements were issued and determine that there were no subsequent events or transactions that require recognition or disclosures in the consolidated financial statements except for the follows:

On April 14 and April 16, 2019, the Company drew down borrowings of $50,000 and $100,000 from the credit facility of CTBC with interest at a rate of 3.60% and 3.65% per annum, respectively. On April 29, 2019, the Company drew down $600,000 from the credit facility with O-Bank and the loan bears an interest rate of 3.38% per annum.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Principles of Consolidation

The unaudited consolidated financial statements include the accounts of China United, its subsidiaries and variable interest entities as shown in the corporate structure in Note 1. All significant intercompany transactions and balances have been eliminated in the consolidation.

Basis of Presentation

The unaudited consolidated financial statements presented herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with 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 statement of the financial statements have been included. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019.

These unaudited 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, 2018, which were included in the Company’s 2018 Annual Report on Form 10-K (“2018 Form 10-K”). The accompanying consolidated balance sheet as of December 31, 2018, has been derived from the Company’s audited consolidated financial statements as of that date.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and footnotes thereto. Actual results may differ from those estimates and assumptions. 

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Currency Transactions

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. The resulting translation adjustments are reported under other comprehensive income in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 220 (“ASC 220”), “Reporting Comprehensive Income”. 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 using the rate of exchange prevailing at the balance sheet date. Any differences are taken to profit or loss as a gain or loss on foreign currency translation in the consolidated statements of operations and other comprehensive income (loss).

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 financial statements are as follows:

	Average Rate for the three months ended March 31,
	2019		2018
Taiwan dollar (NTD)	NTD	30.815550	NTD	29.276272
China yuan (RMB)	RMB	6.746399	RMB	6.356627
Hong Kong dollar (HKD)	HKD	7.845634	HKD	7.827061
United States dollar ($)	$	1.000000	$	1.000000

	Exchange Rate at
	March 31, 2019		December 31, 2018
Taiwan dollar (NTD)	NTD	30.848914	NTD	30.564919
China yuan (RMB)	RMB	6.711130	RMB	6.876443
Hong Kong dollar (HKD)	HKD	7.849343	HKD	7.831246
United States dollar ($)	$	1.000000	$	1.000000

Earnings Per Share, Policy [Policy Text Block]

Earnings Per Share

Basic earnings per common share (“EPS”) is computed by dividing net income attributable to the common shareholders of the Company by the weighted-average number of common shares outstanding. Diluted EPS is computed in the same manner as basic EPS, except the number of shares includes additional common shares that would have been outstanding if potential common shares with a dilutive effect had been issued.

As the holders of preferred stock of the Company 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 of directors, the preferred stock is treated as a participating security. When calculating the basic earnings per common share, the two-class method is used to allocate earnings to common stock and participating security as required by ASC Topic 260, “Earnings Per Share.” Potential common shares consist primarily of convertible bonds calculated using the if-converted method. However, convertible bonds were excluded from the calculation of diluted earnings per common share due to the antidilutive effect. As of March 31, 2019, the Company does not have any outstanding convertible bonds. The antidilutive common share equivalents excluded from the computation were nil and 56,883 for the three months ended March 31, 2019 and 2018, respectively.

The calculation for basic and diluted EPS is as follows:

	Three Months Ended March 31,
	2019			2018
Amounts attributable to CUIS shareholders	$	2,007,005		$	345,654
Less: Amount attributable to the participating preferred shareholders		(65,906	)		(11,351	)
Amounts attributable to CUIS common shareholders		1,941,099			334,303
Effect of dilution		-			-
Income attributable to CUIS common shareholders after dilution	$	1,941,099		$	334,303
Basic weighted-average number of common shares outstanding		29,452,669			29,452,669
Effect of convertible bonds		-			-
Diluted weighted-average number of common shares outstanding		29,452,669			29,452,669
Earnings per share attributable to CUIS common shareholders:
Basic	$	0.066		$	0.011
Diluted	$	0.066		$	0.011

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

Fair Value of Financial Instruments

Fair value accounting establishes a framework for measuring fair value and expands disclosure about fair value measurements. Fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels 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 fair value.

The following table presents the fair value and carrying value of the Company’s financial assets and liabilities reported at fair value on a recurring basis as of March 31, 2019 and December 31, 2018:

	March 31, 2019
	Fair Value						Carrying
	Level 1		Level 2		Level 3		Value
Assets
Marketable securities (in other current assets):
Mutual fund	$	31,902	$	-	$	-	$	31,902
Long-term investment:
Foreign government bonds		-		98,828		-		98,828
REITs		1,182,538		-		-		1,182,538

	December 31, 2018
	Fair Value						Carrying
	Level 1		Level 2		Level 3		Value
Assets
Marketable securities (in other current assets):
Mutual fund	$	30,800	$	-	$	-	$	30,800
Long-term investment:
Foreign government bonds		-		99,834		-		99,834
REITs		1,120,239		-		-		1,120,239

During the three months ended March 31, 2019, there were no assets or liabilities that were transferred between any of the levels.

Marketable securities and long-term investments in REITs– The fair value of the mutual fund and REITs is valued based on quoted market prices in active markets.

Government bonds – The fair value of government bonds is valued based on theoretical bond price in Taipei Exchange.

The amortized cost of the investment in government bonds is $97,759 and $98,732 as of March 31, 2019 and December 31, 2018, respectively. The government bonds will mature on March 17, 2021.

The carrying amounts of financial assets and liabilities in the consolidated balance sheets for cash and cash equivalents, time deposits, restricted cash and cash equivalents, accounts receivable, short-term loans, due to related parties and accrued expense approximate fair value due to the short-term duration of those instruments.

Long-term loans and due to previous shareholders – The fair value of long-term loans and due to previous shareholders are determined based on the variable nature of the interest rates and the proximity to the issuance date.

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

Concentration of Risk

The Company maintains cash with banks in the USA, People’s Republic of China (“PRC”), Hong Kong, and Taiwan.  Should any bank holding cash become insolvent, or if the Company is otherwise unable to withdraw funds, the Company would lose the cash with that bank; however, the Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. In Taiwan, a depositor has up to NTD3,000,000 insured by Central Deposit Insurance Corporation (“CDIC”). In China, a depositor has up to RMB500,000 insured by the People’s Bank of China Financial Stability Bureau (“FSD”). In Hong Kong, a depositor has up to HKD500,000 insured by Hong Kong Deposit Protection Board (“DPB”). In the United States, the standard insurance amount is $250,000 per depositor in a bank insured by the Federal Deposit Insurance Corporation (“FDIC”).

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents, time deposits, restricted cash, register capital deposit and accounts receivable. As of March 31, 2019 and December 31, 2018, approximately $1,726,000 and $1,751,000 of the Company’s cash and cash equivalents, time deposits, restricted cash equivalents and registered capital deposits held by financial institutions, was insured, and the remaining balance of approximately $46,452,000 and $44,289,000, was not insured. With respect to accounts receivable, the Company generally does not require collateral and does not have an allowance for doubtful accounts.

For the three months ended March 31, 2019 and 2018, the Company’s revenues from sale of insurance policies underwritten by these companies were: 

	Three months ended March 31,
	2019					2018
	Amount		% of Total Revenue			Amount		% of Total Revenue
Farglory Life Insurance Co., Ltd.	$	4,420,420		23	%	$	4,946,056		28	%
Taiwan Life Insurance Co., Ltd.		3,371,243		17	%		2,797,736		16	%
TransGlobe Life Insurance Inc.		2,787,932		14	%		1,829,019		10	%

As of March 31, 2019 and December 31, 2018, the Company’s accounts receivable from these companies were: 

	March 31, 2019					December 31, 2018
	Amount		% of Total Accounts Receivable			Amount		% of Total Accounts Receivable
Farglory Life Insurance Co., Ltd.	$	2,847,633		28	%	$	3,139,404		20	%
Taiwan Life Insurance Co., Ltd		1,718,223		17	%		2,578,590		17	%
TransGlobe Life Insurance Inc.		1,595,641		15	%		2,381,181		16	%

The Company’s operations are in the PRC, Hong Kong and Taiwan. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic, foreign currency exchange and legal environments in the PRC, Hong Kong and Taiwan, and by the state of each economy. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, Hong Kong and Taiwan, 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]

New Accounting Pronouncements Effective January 1, 2019: 

Leases

On January 1, 2019, the Company adopted ASU No. 2016-02, (ASC Topic 842), Leases, which amends existing guidance to require lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by long-term leases and to disclose additional quantitative and qualitative information about leasing arrangements.

The Company adopted ASC 842 as of January 1, 2019 using a modified retrospective transition with no adjustment to its comparative periods in the year of transition. The Company elected the practical expedients, which allow the Company not to reassess prior conclusions with respect to lease identification, lease classification and initial direct costs under ASC 842. The Company did not elect the hindsight practical expedient to determine the lease term or in assessing the likelihood that a lease purchase option will be exercised. In addition, the Company elected the short-term lease recognition. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet.

The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The adoption of ASC 842 resulted in the recognition of operating lease right-of-use assets of $4.0 million and corresponding operating lease liabilities of $3.7 million as of January 1, 2019 on the consolidated balance sheet. See Note 12 for details.

Accounting Standards Issued but Not Yet Adopted

Credit Losses

In June 2016, the FASB issued ASU No. 2016-13, (Topic 326), Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments which amends the current accounting guidance and requires the use of the new forward-looking “expected loss” model, rather than the “incurred loss” model, which requires all expected losses to be determined based on historical experience, current conditions and reasonable and supportable forecasts. This guidance amends the accounting for credit losses for most financial assets and certain other instruments including trade and other receivables, held-to-maturity debt securities, loans and other instruments. ASU 2016-13 is effective for public entities for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Early adoption is permitted for annual periods beginning after December 15, 2018, and interim periods therein. The Company is evaluating the impact of the adoption of ASU 2016-13 on its financial position and results of operations.

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.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Schedule of Intercompany Foreign Currency Balances [Table Text Block]

The exchange rates used for financial statements are as follows:

	Average Rate for the three months ended March 31,
	2019		2018
Taiwan dollar (NTD)	NTD	30.815550	NTD	29.276272
China yuan (RMB)	RMB	6.746399	RMB	6.356627
Hong Kong dollar (HKD)	HKD	7.845634	HKD	7.827061
United States dollar ($)	$	1.000000	$	1.000000

	Exchange Rate at
	March 31, 2019		December 31, 2018
Taiwan dollar (NTD)	NTD	30.848914	NTD	30.564919
China yuan (RMB)	RMB	6.711130	RMB	6.876443
Hong Kong dollar (HKD)	HKD	7.849343	HKD	7.831246
United States dollar ($)	$	1.000000	$	1.000000

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The calculation for basic and diluted EPS is as follows:

	Three Months Ended March 31,
	2019			2018
Amounts attributable to CUIS shareholders	$	2,007,005		$	345,654
Less: Amount attributable to the participating preferred shareholders		(65,906	)		(11,351	)
Amounts attributable to CUIS common shareholders		1,941,099			334,303
Effect of dilution		-			-
Income attributable to CUIS common shareholders after dilution	$	1,941,099		$	334,303
Basic weighted-average number of common shares outstanding		29,452,669			29,452,669
Effect of convertible bonds		-			-
Diluted weighted-average number of common shares outstanding		29,452,669			29,452,669
Earnings per share attributable to CUIS common shareholders:
Basic	$	0.066		$	0.011
Diluted	$	0.066		$	0.011

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 reported at fair value on a recurring basis as of March 31, 2019 and December 31, 2018:

	March 31, 2019
	Fair Value						Carrying
	Level 1		Level 2		Level 3		Value
Assets
Marketable securities (in other current assets):
Mutual fund	$	31,902	$	-	$	-	$	31,902
Long-term investment:
Foreign government bonds		-		98,828		-		98,828
REITs		1,182,538		-		-		1,182,538

	December 31, 2018
	Fair Value						Carrying
	Level 1		Level 2		Level 3		Value
Assets
Marketable securities (in other current assets):
Mutual fund	$	30,800	$	-	$	-	$	30,800
Long-term investment:
Foreign government bonds		-		99,834		-		99,834
REITs		1,120,239		-		-		1,120,239

Schedule Of Revenue From Insurance Services [Table Text Block]

For the three months ended March 31, 2019 and 2018, the Company’s revenues from sale of insurance policies underwritten by these companies were: 

	Three months ended March 31,
	2019					2018
	Amount		% of Total Revenue			Amount		% of Total Revenue
Farglory Life Insurance Co., Ltd.	$	4,420,420		23	%	$	4,946,056		28	%
Taiwan Life Insurance Co., Ltd.		3,371,243		17	%		2,797,736		16	%
TransGlobe Life Insurance Inc.		2,787,932		14	%		1,829,019		10	%

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

As of March 31, 2019 and December 31, 2018, the Company’s accounts receivable from these companies were: 

	March 31, 2019					December 31, 2018
	Amount		% of Total Accounts Receivable			Amount		% of Total Accounts Receivable
Farglory Life Insurance Co., Ltd.	$	2,847,633		28	%	$	3,139,404		20	%
Taiwan Life Insurance Co., Ltd		1,718,223		17	%		2,578,590		17	%
TransGlobe Life Insurance Inc.		1,595,641		15	%		2,381,181		16	%

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CASH, CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS (Tables)

3 Months Ended

Mar. 31, 2019

Restricted Cash and Cash Equivalents [Abstract]

Schedule of Cash and Cash Equivalents [Table Text Block]

Cash, cash equivalents and restricted cash equivalents consisted of the following as of March 31, 2019 and December 31, 2018:

	March 31, 2019		December 31, 2018
Cash and cash equivalents:
Cash on hand and in banks	$	9,311,659	$	7,439,057
Cash equivalents – re-purchase bonds		1,296,642		-
Cash equivalents – commercial paper		-		654,006
Time deposits – with original maturities less than three months (see Note 4)		4,007,273		8,570,879
		14,615,574		16,663,942
Restricted cash equivalents		-		3,320,802
Restricted cash – noncurrent		149,006		655,027
Total cash, cash equivalents and restricted cash shown in the statements of cash flows	$	14,764,580	$	20,639,771

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TIME DEPOSIT (Tables)

3 Months Ended

Mar. 31, 2019

Cash, Cash Equivalents, and Short-term Investments [Abstract]

Cash, Cash Equivalents and Investments [Table Text Block]

	March 31, 2019			December 31, 2018
Total time deposits	$	37,881,843		$	34,311,043
Less: Time deposits – with original maturities less than three months (see Note 3)		(4,007,273	)		(8,570,879	)
Time deposits – original maturities over three months but less than one year	$	33,874,570		$	25,740,164

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SHORT-TERM LOANS (Tables)

3 Months Ended

Mar. 31, 2019

Short-term Debt [Abstract]

Schedule of Short-term Debt [Table Text Block]

The Company’s short-term loans consisted of the following as of March 31, 2019 and December 31, 2018:

	March 31, 2019		December 31, 2018
Credit facility, O-Bank	$	3,241,605	$	3,600,000
Credit facility, FEIB		-		2,000,000
Credit facility, CTBC		4,441,605		1,000,000
Credit facility, KGI		1,620,803		1,600,000
Subtotal		9,304,013		8,200,000
Current portion of long-term loans (see Note 9)		241,390		235,587
Total short-term loans	$	9,545,403	$	8,435,587

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INCOME TAX PAYABLE (Tables)

3 Months Ended

Mar. 31, 2019

Income Tax Disclosure [Abstract]

Schedule Of Taxes Payable [Table Text Block]

The Company’s taxes payable consisted of the following as of March 31, 2019 and December 31, 2018:

	March 31, 2019			December 31, 2018
Taiwan Tax	$	2,431,829		$	1,416,540
USA Tax (Note 14)		1,131,307			1,131,307
PRC Tax		700			7,590
Hong Kong Tax		61,215			51,032
Total income tax payable	$	3,625,051		$	2,606,469
Less: current portion		(2,617,728	)		(1,599,146	)
Income tax payable – noncurrent (Note 14)	$	1,007,323		$	1,007,323

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COMMISSIONS PAYABLE TO SALES PROFESSIONALS (Tables)

3 Months Ended

Mar. 31, 2019

Payables and Accruals [Abstract]

Schedule Of Commissions Payable [Table Text Block]

Commissions payable to sales professionals consisted of the following as of March 31, 2019 and December 31, 2018:

	March 31, 2018		December 31, 2018
Taiwan	$	4,476,514	$	7,602,595
PRC		477,615		411,885
Hong Kong		-		-
Total commissions payable to sales professionals	$	4,954,129	$	8,014,480

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OTHER CURRENT LIABILITIES (Tables)

3 Months Ended

Mar. 31, 2019

Other Liabilities Disclosure [Abstract]

Schedule Of Other Current Liabilities [Table Text Block]

Other current liabilities were as follows, as of March 31, 2019 and December 31, 2018:

	March 31, 2019		December 31, 2018
Unearned revenue - current	$	1,193,877	$	1,028,256
Accrued business tax and tax withholdings		574,075		893,391
Accrued bonus		1,424,303		2,320,445
Payroll payable and other benefits		1,182,664		1,360,790
Other accrued liabilities		1,069,367		1,745,959
Total other current liabilities	$	5,444,286	$	7,348,841

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LONG-TERM LOANS (Tables)

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

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

The Company’s long-term loans consisted of the following as of March 31, 2019 and December 31, 2018:

	March 31, 2019			December 31, 2018
Loan A, interest at 8% per annum, maturity date May 15, 2019	$	126,655		$	123,611
Loan B, interest at 8% per annum, maturity date July 20, 2019		114,735			111,976
Total loans		241,390			235,587
Less: current portion (Note 5)		(241,390	)		(235,587	)
Total long-term loans	$	-		$	-

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OTHER LIABILITIES (Tables)

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Other Noncurrent Liabilities [Table Text Block]

The Company’s other liabilities consisted of the following as of March 31, 2019 and December 31, 2018:

	March 31, 2019		December 31, 2018
Unearned revenue - AIATW	$	1,782,883	$	2,056,513
Due to previous shareholders of AHFL		480,559		480,559
Accrued bonus for Ms. Chao (Note 15)		27,013		-
Total other liabilities	$	2,290,455	$	2,537,072

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			Revenue VAT Amount		Refund Amount			Refund VAT Amount
First	4/15/2013 ~ 9/30/2014	NTD	50,000,000	NTD	27,137,958	(1)	NTD	1,356,898	NTD	20,481,090	(1)	NTD	1,024,054
Second	1/1/2016 ~ 12/31/2016	NTD	35,000,000	NTD	12,855,000	(2)	NTD	642,750	NTD	20,478,333	(2)	NTD	1,023,917
Third	1/1/2017 ~ 12/31/2017	NTD	33,000,000	NTD	12,628,201	(3)	NTD	631,410	NTD	18,800,370	(3)	NTD	940,019
Fourth	1/1/2018 ~ 12/31/2018	NTD	33,000,000	NTD	11,228,600	(4)	NTD	561,429	NTD	20,199,971	(4)	NTD	1,010,000
Fifth	1/1/2019 ~ 12/31/2019	NTD	33,000,000	NTD	9,823,647	(5)	NTD	491,182	NTD	21,604,925		NTD	1,080,246
Sixth	1/1/2020 ~ 12/31/2020	NTD	33,000,000	NTD	-		NTD	-	NTD	-		NTD	-
Seventh	1/1/2021 ~ 12/31/2021	NTD	33,000,000	NTD	-		NTD	-	NTD	-		NTD	-
TOTAL		NTD	250,000,000	NTD	73,673,406		NTD	3,683,669	NTD	101,564,689		NTD	5,078,236

(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 $892,742 (NTD27,137,958), net of Value-Added Tax (“VAT”). On December 3, 2015 and February 23, 2016, the Company refunded the amounts of $160,573 (NTD4,761,905), net of VAT, and $530,056 (NTD15,719,185), net of VAT, to AIATW, respectively, due to the portion of performance sales targets not met during the first contract year.
(2)	For the year ended December 31, 2017, the Company recognized the second contract year’s revenue amount of $422,883 (NTD12,855,000), net of VAT, and refunded the amount of $690,537 (NTD20,478,333), net of VAT, for the same contract period.
(3)	For the year ended December 31, 2017, the Company estimated to recognize the third contract year’s revenue amount of $415,423 (NTD12,628,201), net of VAT, and refund the amount of $633,955 (NTD18,800,370), net of VAT, for the same contract period based on the calculation of VONB and 13-month persistency.
(4)	For the year ended December 31, 2018, the Company estimated to recognize the fourth contract year’s revenue amount of $391,223 (NTD11,788,229), net of VAT, and refund the amount of $651,816 (NTD19,640,341), net of VAT, for the same contract period based on the calculation of VONB and 13-month persistency. The revenue recorded and refund amounts were trued up to $412,230 (NTD 12,068,571) and $661,286 (NTD 19,360,000), respectively, for the year ended December 31, 2018 based on notice received from AIATW.
(5)	The Company estimated VONB and 13-month persistency ratio for the year ending December 31, 2019 and calculated the revenue amount to be $318,789 (NTD9,823,647) for the year. The amount will be reassessed every quarter until receiving AIATW’s notice.

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REVENUE (Tables)

3 Months Ended

Mar. 31, 2019

Revenue Recognition [Abstract]

Revenue Recognition Guidance [Table Text Block]

Contract balance

	March 31, 2019		December 31, 2018
Accounts receivable	$	10,898,013	$	15,332,355
Contract assets – current		1,039,555		-
Unearned revenue – current (Note 8)		1,193,877		1,028,256
Unearned revenue – noncurrent (Note 10)		1,782,883		2,056,513

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LEASE (Tables)

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Lessee, Operating Lease, Disclosure [Table Text Block]

Operating lease right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. As of March 31, 2019, operating lease right-of-use assets and lease liabilities were as follows:

	March 31, 2019
Operating lease right-of-use assets	$	3,415,291
Operating lease liabilities – current		240,487
Operating lease liabilities – noncurrent		2,933,702

Lease Term And Discount Rate Table Text Block

Lease term and discount rate

	March 31, 2019
Weighted average remaining lease term
Operating lease		3 years
Weighted average discount rate
Operating lease		3.17	%

Supplemental Cash Flow Information Related To Leases Table Text Block

Supplemental cash flow information related to leases

	March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows related to operating leases	$	553,544

Schedule Of Future Minimum Rental Payments For Operating Leases [Table Text Block]

The minimum future lease payments as of March 31, 2019 are as follows:

	Amount
2019 (reminder of year)	$	1,506,406
2020		1,194,055
2021		600,551
2022		120,310
2023		83,550
Thereafter		71,357
Total minimum lease payments		3,576,229
Less: Interest		(402,040	)
Present value of future minimum lease payments	$	3,174,189

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NON-CONTROLLING INTERESTS (Tables)

3 Months Ended

Mar. 31, 2019

Noncontrolling Interest [Abstract]

Schedule of Non-Controlling Interests [Table Text Block]

Non-controlling interests consisted of the following as of March 31, 2019 and December 31, 2018:

Name of Entity	% of Non- controlling Interest			December 31, 2018			Net Income (Loss)			Other Comprehensive Income (Loss)			March 31, 2019
Law Enterprise		34.05	%	$	(72,557	)	$	(59,003	)	$	(6,863	)	$	(138,423	)
Law Broker		34.05	%		16,149,662			1,239,856			(142,913	)		17,246,605
PFAL		49.00	%		436,742			36,189			(631	)		472,300
MKI		49.00	%		(2,630	)		(515	)		-			(3,145	)
PA Taiwan		49.00	%		(157,762	)		(4,649	)		(96	)		(162,507	)
PTC Nanjing		49.00	%		(2,411	)		(29	)		181			(2,259	)
Total				$	16,351,044		$	1,211,849		$	(150,322	)	$	17,412,571

Name of Entity	% of Non-  controlling Interest			December 31, 2017			Net Income (Loss)			Other Comprehensive Income (Loss)			December 31, 2018
Law Enterprise		34.05	%	$	(243,240	)	$	193,308		$	(22,625	)	$	(72,557	)
Law Broker		34.05	%		13,900,341			2,655,344			(406,023	)		16,149,662
PFAL		49.00	%		228,079			208,918			(255	)		436,742
MKI		49.00	%		(2,117	)		(513	)		-			(2,630	)
PA Taiwan		49.00	%		(145,442	)		(11,789	)		(531	)		(157,762	)
PTC Nanjing		49.00	%		(1,965	)		(26	)		(420	)		(2,411	)
Total				$	13,735,656		$	3,045,242		$	(429,854	)	$	16,351,044

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INCOME TAX (Tables)

3 Months Ended

Mar. 31, 2019

Income Tax Disclosure [Abstract]

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

The following table reconciles the Company’s statutory tax rates to effective tax rates for the three months ended March 31, 2019 and 2018:

	Three Months Ended March 31,
	2019			2018
US statutory rate		21	%		21	%
Tax rate difference		(1	)%		(1	)%
Tax base difference		1	%		1	%
Income tax on undistributed earnings		3	%		4	%
Loss in subsidiaries		1	%		1	%
U.S. one-tine transition tax		-			35	%
Others		-			1	%
Effective tax rate		25	%		62	%

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RELATED PARTY TRANSACTIONS (Tables)

3 Months Ended

Mar. 31, 2019

Related Party Transactions [Abstract]

Schedule of Related Party Transactions [Table Text Block]

The following summarized the Company’s loans payable related parties as of March 31, 2019 and December 31, 2018:

	March 31, 2019			December 31, 2018
Due to Mr. Mao (Principal shareholder of the Company)*	$	398,854		$	391,311
Accrued bonus for Ms. Chao (Shareholder of AHFL and Law Agent)		619,143			597,631
Others		2,063			7,623
Total due to related parties		1,020,060			996,565
Less: Accrued bonus for Ms. Chao – noncurrent (Note 10)		(27,013	)		-
Total	$	993,047		$	996,565

*Amounts due to Mr. Mao bear no interest and are payable on demand.

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SEGMENT REPORTING (Tables)

3 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

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

The geographical distributions of the Company’s financial information for the three months ended March 31, 2019 and 2018 were as follows:

	For three months ended March 31,
	2019			2018
Geographical Areas
Revenue
Taiwan	$	16,971,117		$	14,740,772
PRC		2,267,316			2,708,621
Hong Kong		195,195			39,987
Elimination adjustment		(6,954	)		-
Total revenue	$	19,426,674		$	17,489,380
Income (loss) from operations
Taiwan	$	3,790,078		$	3,179,722
PRC		31,584			73,190
Hong Kong		85,209			(10,084	)
Elimination adjustment		32,553			35,230
Total income from operations	$	3,939,424		$	3,278,058
Net income (loss)
Taiwan	$	3,125,888		$	1,255,468
PRC		19,368			68,468
Hong Kong		73,856			(11,049	)
Elimination adjustment		(258	)		1,635
Total net income	$	3,218,854		$	1,314,522

Schedule Of Long Term Liabilities [Table Text Block]

The geographical distribution of the Company’s financial information as of March 31, 2019 and December 31, 2018 were as follows:

	March 31, 2019			December 31, 2018
Geographical Areas
Long-lived assets
Taiwan	$	1,014,904		$	1,092,576
PRC		142,971			102,383
Hong Kong		580			736
Elimination adjustment		(1,322	)		-
Total long-lived assets	$	1,157,133		$	1,195,695
Reportable assets
Taiwan	$	115,111,986		$	100,220,270
PRC		11,864,379			11,796,388
Hong Kong		1,118,171			1,015,400
Elimination adjustment		(56,510,099	)		(44,150,214	)
Total reportable assets	$	71,584,437		$	68,881,844
Capital investment
Taiwan	$	34,888		$	641,873
PRC		52,427			53,158
Hong Kong		-			997
Total capital investments	$	87,315		$	696,028

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Taiwan Dollar [Member]
Foreign Currency Average Rate Translation	30.815550	29.276272
Foreign Currency Exchange Rate, Translation	30.848914		30.564919
China yuan [Member]
Foreign Currency Average Rate Translation	6.746399	6.356627
Foreign Currency Exchange Rate, Translation	6.711130		6.876443
Hong Kong, Dollars
Foreign Currency Average Rate Translation	7.845634	7.827061
Foreign Currency Exchange Rate, Translation	7.849343		7.831246
United States of America, Dollars
Foreign Currency Average Rate Translation	1.000000	1.000000
Foreign Currency Exchange Rate, Translation	1.000000		1.000000

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Amounts attributable to CUIS shareholders	$ 2,007,005	$ 345,654
Less: Amount attributable to the participating preferred shareholders	(65,906)	(11,351)
Amounts attributable to CUIS common shareholders:	1,941,099	334,303
Effect of dilution	0	0
Income attributable to CUIS common shareholders after dilution	$ 1,941,099	$ 334,303
Basic weighted-average number of common shares outstanding	29,452,669	29,452,669
Effect of convertible bonds	0	0
Diluted weighted-average number of common shares outstanding	29,452,669	29,452,669
Earnings per share attributable to CUIS common shareholders:
Basic	$ 0.066	$ 0.011
Diluted	$ 0.066	$ 0.011

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Marketable securities (in other current assets):
Mutual fund	$ 31,902	$ 30,800
Long-term investment:
Foreign government bonds	98,828	99,834
REITs	1,182,538	1,120,239
Fair Value, Inputs, Level 1 [Member]
Marketable securities (in other current assets):
Mutual fund	31,902	30,800
Long-term investment:
Foreign government bonds	0	0
REITs	1,182,538	1,120,239
Fair Value, Inputs, Level 2 [Member]
Marketable securities (in other current assets):
Mutual fund	0	0
Long-term investment:
Foreign government bonds	98,828	99,834
REITs	0	0
Fair Value, Inputs, Level 3 [Member]
Marketable securities (in other current assets):
Mutual fund	0	0
Long-term investment:
Foreign government bonds	0	0
REITs	$ 0	$ 0

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Farglory Life Insurance Co., Ltd. [Member]
Financial Services Revenues	$ 4,420,420	$ 4,946,056
Financial Services Percentage	23.00%	28.00%
Taiwan Life Insurance Co., Ltd [Member]
Financial Services Revenues	$ 3,371,243	$ 2,797,736
Financial Services Percentage	17.00%	16.00%
TransGlobe Life Insurance Inc [Member]
Financial Services Revenues	$ 2,787,932	$ 1,829,019
Financial Services Percentage	14.00%	10.00%

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Farglory Life Insurance Co., Ltd. [Member]
Accounts Receivable, Net	$ 2,847,633	$ 3,139,404
Percentage Of Accounts Receivable	28.00%	20.00%
Taiwan Life Insurance Co., Ltd [Member]
Accounts Receivable, Net	$ 1,718,223	$ 2,578,590
Percentage Of Accounts Receivable	17.00%	17.00%
TransGlobe Life Insurance Inc [Member]
Accounts Receivable, Net	$ 1,595,641	$ 2,381,181
Percentage Of Accounts Receivable	15.00%	16.00%

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual)	3 Months Ended
	Mar. 31, 2019 USD ($) shares	Mar. 31, 2018 shares	Mar. 31, 2019 CNY (¥)	Mar. 31, 2019 TWD ($)	Mar. 31, 2019 HKD ($)	Jan. 01, 2019 USD ($)	Dec. 31, 2018 USD ($)
Disclosure of Summary Of Significant Accounting Policies [Line Items]
Cash, Uninsured Amount	$ 250,000
Lessor, Operating Lease, Term of Contract						12 months
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares	0	56,883
Available-for-sale Debt Securities, Amortized Cost Basis	$ 97,759						$ 98,732
Operating Lease, Right-of-Use Asset	3,415,291					$ 4,000,000	0
Operating Lease, Liability	3,174,189					$ 3,700,000
Credit Concentration Risk [Member]
Disclosure of Summary Of Significant Accounting Policies [Line Items]
Cash, FDIC Insured Amount	1,726,000						1,751,000
Cash, Uninsured Amount	$ 46,452,000						$ 44,289,000
Taiwan
Disclosure of Summary Of Significant Accounting Policies [Line Items]
Cash, FDIC Insured Amount				$ 3,000,000
HONG KONG
Disclosure of Summary Of Significant Accounting Policies [Line Items]
Cash, FDIC Insured Amount | ¥			¥ 500,000
CHINA
Disclosure of Summary Of Significant Accounting Policies [Line Items]
Cash, FDIC Insured Amount					$ 500,000

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CASH, CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS (Details)	Mar. 31, 2019 USD ($)	Mar. 27, 2019 USD ($)	Mar. 27, 2019 TWD ($)	Dec. 31, 2018 USD ($)	Dec. 14, 2018 USD ($)	Dec. 14, 2018 TWD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Cash on hand and in banks	$ 9,311,659			$ 7,439,057
Cash equivalents – re-purchase bonds	1,296,642	$ 1,296,642	$ 40,000,000	0
Cash equivalents – commercial paper	0			654,006	$ 654,006	$ 19,989,649
Time deposits – with original maturities less than three months (see Note 4)	4,007,273			8,570,879
Total cash and cash equivalents	14,615,574			16,663,942
Restricted cash equivalents	0			3,320,802
Restricted cash – noncurrent	149,006			655,027
Total cash, cash equivalents and restricted cash shown in the statements of cash flows	$ 14,764,580			$ 20,639,771			$ 18,443,500	$ 15,473,949

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CASH, CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS (Details Textual)	Dec. 14, 2018 USD ($)	Mar. 31, 2019 USD ($)	Mar. 27, 2019 USD ($)	Mar. 27, 2019 TWD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 TWD ($)	Dec. 14, 2018 TWD ($)
Debt Instrument, Repurchase Amount		$ 1,296,642	$ 1,296,642	$ 40,000,000	$ 0
Debt Instrument, Interest Rate, Stated Percentage			0.48%	0.48%
Commercial Paper, at Carrying Value	$ 654,006	0			654,006		$ 19,989,649
Commercial Paper Interest Rate Stated Percentage	0.70%						0.70%
Restricted Cash and Cash Equivalents, Current		$ 0			3,320,802
Debt Instrument, Maturity Date	Jan. 10, 2019
Time Deposits [Member]
Restricted Cash and Cash Equivalents, Current					$ 3,302,802	$ 101,500,000

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TIME DEPOSITS (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Cash, Cash Equivalents, and Short-term Investments [Abstract]
Total time deposits	$ 37,881,843	$ 34,311,043
Less: Time deposits – with original maturities less than three months (see Note 3)	(4,007,273)	(8,570,879)
Time deposits – original maturities over three months but less than one year	$ 33,874,570	$ 25,740,164

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TIME DEPOSITS (Details Textual) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Restricted Cash	$ 5,029,679	$ 5,404,889
Time Deposits, at Carrying Value	$ 37,881,843	$ 34,311,043

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SHORT-TERM LOANS (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Short-term Debt [Line Items]
Line of Credit, Current	$ 9,304,013	$ 8,200,000
Current portion of long-term loans (see Note 9)	241,390	235,587
Total short term loans	9,545,403	8,435,587
Credit facility, FEIB [Member]
Short-term Debt [Line Items]
Line of Credit, Current	0	2,000,000
Credit facility, KGI [Member]
Short-term Debt [Line Items]
Line of Credit, Current	1,620,803	1,600,000
Credit facility, O-Bank [Member]
Short-term Debt [Line Items]
Line of Credit, Current	3,241,605	3,600,000
Credit facility, CTBC [Member]
Short-term Debt [Line Items]
Line of Credit, Current	$ 4,441,605	$ 1,000,000

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SHORT-TERM LOANS (Details Textual)	1 Months Ended			3 Months Ended
	Sep. 30, 2018 USD ($)	Sep. 19, 2018 USD ($)	Sep. 30, 2017	Mar. 31, 2019 USD ($)	Mar. 31, 2018 USD ($)	Jul. 03, 2019	Mar. 31, 2019 TWD ($)	Feb. 28, 2019 USD ($)	Jan. 04, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 28, 2018 USD ($)	Dec. 27, 2018 USD ($)	Dec. 25, 2018 USD ($)	Dec. 07, 2018 USD ($)	Sep. 30, 2018 TWD ($)	Aug. 31, 2018 USD ($)	Aug. 31, 2018 TWD ($)
Short-term Debt [Line Items]
Short-term Debt				$ 9,545,403						$ 8,435,587
Debt Instrument, Interest Rate, Effective Percentage								3.75%
Line of Credit Facility, Current Borrowing Capacity															$ 100,000,000
Line of Credit Facility, Maximum Borrowing Capacity	$ 3,241,605			$ 1,500,000												$ 3,241,605	$ 100,000,000
Debt Instrument, Description of Variable Rate Basis				cost of fund plus a margin of 1%
Interest Expense, Short-term Borrowings				$ 28,845	$ 19,016
O Bank [Member]
Short-term Debt [Line Items]
Short-term Debt													$ 1,200,000	$ 2,400,000
Debt Instrument, Interest Rate, Effective Percentage				1.55%			1.55%						3.75%	3.60%
Line of Credit Facility, Maximum Borrowing Capacity				$ 4,000,000
Debt Instrument, Description of Variable Rate Basis	TAIBOR rate plus a margin of 0.75%			TAIFX3 rate plus a margin of 0.5%
Cash Collateral for Borrowed Securities				$ 3,241,605			$ 100,000,000
CTBC Bank [Member]
Short-term Debt [Line Items]
Short-term Debt				$ 1,200,000				$ 1,200,000	$ 3,241,605		$ 1,000,000
Debt Instrument, Interest Rate, Effective Percentage				3.75%			3.75%		1.50%		4.10%
FEIB [Member]
Short-term Debt [Line Items]
Short-term Debt														$ 2,000,000
Debt Instrument, Interest Rate, Effective Percentage														3.95%
Debt Instrument, Description of Variable Rate Basis			higher of LIBOR or TAIFX3 rate plus a margin of 0.85%	TAIFX3 rate plus a margin of 0.85%
KGI Commercial Bank Co Ltd [Member]
Short-term Debt [Line Items]
Short-term Debt												$ 1,600,000
Debt Instrument, Interest Rate, Effective Percentage						1.52%						3.41%
Line of Credit Facility, Maximum Borrowing Capacity		$ 1,600,000														$ 1,620,803	$ 50,000,000
Debt Instrument, Description of Variable Rate Basis		LIBOR rate plus a margin of 0.9%
Cash Collateral for Borrowed Securities				$ 1,788,074			$ 12,000,000

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INCOME TAX PAYABLE (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Taxes Payable [Line Items]
Total tax payable	$ 3,625,051	$ 2,606,469
Less: current portion	(2,617,728)	(1,599,146)
Income tax payable – noncurrent (Note 14)	1,007,323	1,007,323
Taiwan Tax [Member]
Taxes Payable [Line Items]
Total tax payable	2,431,829	1,416,540
USA Tax [Member]
Taxes Payable [Line Items]
Total tax payable	1,131,307	1,131,307
PRC Tax [Member]
Taxes Payable [Line Items]
Total tax payable	700	7,590
Hong Kong Tax [Member]
Taxes Payable [Line Items]
Total tax payable	$ 61,215	$ 51,032

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COMMISSIONS PAYABLE TO SALES PROFESSIONALS (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Commissions payable to sales professionals	$ 4,954,129	$ 8,014,480
TW [Member]
Commissions payable to sales professionals	4,476,514	7,602,595
Prc [Member]
Commissions payable to sales professionals	477,615	411,885
H K [Member]
Commissions payable to sales professionals	$ 0	$ 0

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OTHER CURRENT LIABILITIES (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Disclosure of Other Current Liabilities [Line Items]
Unearned revenue - current	$ 1,193,877	$ 1,028,256
Accrued business tax and tax withholdings	574,075	893,391
Accrued bonus	1,424,303	2,320,445
Payroll payable and other benefits	1,182,664	1,360,790
Other accrued liabilities	1,069,367	1,745,959
Total other current liabilities	$ 5,444,286	$ 7,348,841

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LONG-TERM LOANS (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Total loans	$ 241,390	$ 235,587
Less: current portion (Note 5)	(241,390)	(235,587)
Total long-term loans	0	0
Loan A [Member]
Total long-term loans	126,655	123,611
Loan B [Member]
Total long-term loans	$ 114,735	$ 111,976

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LONG-TERM LOANS (Details Textual)			1 Months Ended	3 Months Ended
	Dec. 14, 2018	May 15, 2016	Jul. 20, 2016	Mar. 31, 2019 USD ($)	Mar. 31, 2018 USD ($)	Mar. 31, 2019 CNY (¥)	Mar. 27, 2019	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)
Debt Instrument, Maturity Date	Jan. 10, 2019
Long-term Debt				$ 2,290,455				$ 2,537,072
Debt Instrument, Interest Rate, Stated Percentage							0.48%
Loan B [Member]
Long-term Debt				114,735		¥ 770,000		111,976	¥ 770,000
Debt Instrument, Interest Rate, Stated Percentage			8.00%
Interest Expense, Debt					$ 3,838
Loan C [Member]
Interest Expense, Debt				4,737
Loan A [Member]
Debt Instrument, Maturity Date		May 15, 2019
Long-term Debt				$ 126,655		¥ 850,000		$ 123,611	¥ 850,000
Debt Instrument, Interest Rate, Stated Percentage		8.00%
Loan E [Member]
Debt Instrument, Maturity Date			Jul. 20, 2019

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OTHER LIABILITIES (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Unearned revenue - AIATW	$ 1,782,883	$ 2,056,513
Due to previous shareholders of AHFL	480,559	480,559
Accrued bonus for Ms. Chao (Note 15)	27,013	0
Total other liabilities	$ 2,290,455	$ 2,537,072

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OTHER LIABILITIES (Details 1)		3 Months Ended
		Mar. 31, 2019 USD ($)	Mar. 31, 2019 TWD ($)	Mar. 31, 2018 USD ($)	Mar. 31, 2018 TWD ($)
Revenue Amount		$ 79,697	$ 2,455,912	$ 69,678	$ 2,039,907
Strategic Alliance Agreement [Member]
Execution Fees			250,000,000
Revenue Amount			73,673,406
Revenue VAT Amount			3,683,669
Refund Amount			101,564,689
Refund VAT Amount			$ 5,078,236
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			$ 50,000,000
Revenue Amount	[1]		27,137,958
Revenue VAT Amount			1,356,898
Refund Amount	[1]		20,481,090
Refund VAT Amount			$ 1,024,054
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			$ 35,000,000
Revenue Amount	[2]		12,855,000
Revenue VAT Amount			642,750
Refund Amount	[2]		20,478,333
Refund VAT Amount			$ 1,023,917
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			$ 33,000,000
Revenue Amount	[3]		12,628,201
Revenue VAT Amount			631,410
Refund Amount	[3]		18,800,370
Refund VAT Amount			$ 940,019
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			$ 33,000,000
Revenue Amount	[4]		11,228,600
Revenue VAT Amount			561,429
Refund Amount	[4]		20,199,971
Refund VAT Amount			$ 1,010,000
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			$ 33,000,000
Revenue Amount	[5]		9,823,647
Revenue VAT Amount			491,182
Refund Amount			21,604,925
Refund VAT Amount			$ 1,080,246
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			$ 33,000,000
Revenue Amount			0
Revenue VAT Amount			0
Refund Amount			0
Refund VAT Amount			$ 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			$ 33,000,000
Revenue Amount			0
Revenue VAT Amount			0
Refund Amount			0
Refund VAT Amount			$ 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 $892,742 (NTD27,137,958), net of Value-Added Tax (“VAT”). On December 3, 2015 and February 23, 2016, the Company refunded the amounts of $160,573 (NTD4,761,905), net of VAT, and $530,056 (NTD15,719,185), net of VAT, to AIATW, respectively, due to the portion of performance sales targets not met during the first contract year.

[2] For the year ended December 31, 2017, the Company recognized the second contract year's revenue amount of $422,883 (NTD12,855,000), net of VAT, and refunded the amount of $690,537 (NTD20,478,333), net of VAT, for the same contract period.

[3] For the year ended December 31, 2017, the Company estimated to recognize the third contract year’s revenue amount of $415,423 (NTD12,628,201), net of VAT, and refund the amount of $633,955 (NTD18,800,370), net of VAT, for the same contract period based on the calculation of VONB and 13-month persistency.

[4] For the year ended December 31, 2018, the Company estimated to recognize the fourth contract year’s revenue amount of $391,223 (NTD11,788,229), net of VAT, and refund the amount of $651,816 (NTD19,640,341), net of VAT, for the same contract period based on the calculation of VONB and 13-month persistency. The revenue recorded and refund amounts were trued up to $412,230 (NTD 12,068,571) and $661,286 (NTD 19,360,000), respectively, for the year ended December 31, 2018 based on notice received from AIATW.

[5] The Company estimated VONB and 13-month persistency ratio for the year ending December 31, 2019 and calculated the revenue amount to be $318,789 (NTD9,823,647) for the year. The amount will be reassessed every quarter until receiving AIATW’s notice.

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OTHER LIABILITIES (Details Textual)			3 Months Ended				12 Months Ended
	Jun. 14, 2017 TWD ($)	Jun. 10, 2013 TWD ($)	Mar. 31, 2019 USD ($)	Mar. 31, 2019 TWD ($)	Mar. 31, 2018 USD ($)	Mar. 31, 2018 TWD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2019 TWD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 TWD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2017 TWD ($)	Mar. 31, 2019 TWD ($)	Mar. 27, 2019 USD ($)	Mar. 27, 2019 TWD ($)	Dec. 31, 2018 TWD ($)	Dec. 31, 2017 TWD ($)	Feb. 23, 2016 USD ($)	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, Noncurrent			$ 1,782,883						$ 2,056,513
Deferred Revenue, Current			1,193,877						1,028,256
Due to Officers or Stockholders			480,559										$ 15,000,000	$ 480,559	$ 15,000,000
Deferred Revenue, Revenue Recognized			79,697	$ 2,455,912	$ 69,678	$ 2,039,907
Basic Business Promotion Fees	$ 330,000,000
Accrued Bonuses			592,130						597,631
Accrued Bonuses Noncurrent			27,013						0
Supplementary Agreement [Member] | First Year [Member]
Debt Instrument [Line Items]
Deferred Revenue, Revenue Recognized			892,742	27,137,958
Strategic Alliance Agreement [Member]
Debt Instrument [Line Items]
Execution Fee Amount Paid																						$ 8,326,700	$ 250,000,000
Tax On Execution Fee		$ 11,904,762
Strategic Alliance Agreement [Member] | First Year [Member]
Debt Instrument [Line Items]
Deferred Revenues Recognized			8,326,700	$ 250,000,000
Strategic Alliance Agreement [Member] | Second Year [Member]
Debt Instrument [Line Items]
Customer Refund Liability, Noncurrent											$ 690,537						$ 20,478,333
Deferred Revenues Recognized											422,883	$ 12,855,000
Strategic Alliance Agreement [Member] | Third Year [Member]
Debt Instrument [Line Items]
Customer Refund Liability, Noncurrent											633,955						$ 18,800,370
Deferred Revenues Recognized											415,423	$ 12,628,201
Strategic Alliance Agreement [Member] | Fourth Year [Member]
Debt Instrument [Line Items]
Customer Refund Liability, Noncurrent									651,816							$ 19,640,341
Deferred Revenues Recognized									391,223	$ 11,788,229
Strategic Alliance Agreement [Member] | Fourth Year [Member] | Scenario, Forecast [Member]
Debt Instrument [Line Items]
Deferred Revenues Recognized							$ 318,789	$ 9,823,647
AIATW [Member]
Debt Instrument [Line Items]
Deferred Revenue, Noncurrent			$ 1,782,883						2,056,513
Customer Refund Liability, Noncurrent									661,286							$ 19,360,000		$ 530,056	$ 15,719,185	$ 160,573	$ 4,761,905
Deferred Revenue, Current									1,193,877		$ 1,028,256
Deferred Revenues Recognized									$ 412,230	$ 12,068,571

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REVENUE (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Accounts receivable	$ 10,898,013	$ 15,332,355
Contract assets - current	1,039,555	0
Unearned revenue – current (Note 8)	1,193,877	1,028,256
Unearned revenue – noncurrent (Note 10)	$ 1,782,883	$ 2,056,513

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REVENUE (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenue Recognition [Abstract]
Revenues	$ 19,426,674	$ 17,489,380

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LEASE (Details) - USD ($)	Mar. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Operating lease right-of-use assets	$ 3,415,291	$ 4,000,000	$ 0
Operating lease liabilities – current	240,487
Operating lease liabilities – noncurrent	$ 2,933,702		$ 0

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LEASE (Details 1)	Mar. 31, 2019
Weighted average remaining lease term, Operating lease	3 years
Weighted average discount rate, Operating lease	3.17%

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LEASE (Details 2)	3 Months Ended
	Mar. 31, 2019 USD ($)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows related to operating leases	$ 553,544

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LEASE (Details 3) - USD ($)	Mar. 31, 2019	Jan. 01, 2019
2019 (reminder of year)	$ 1,506,406
2020	1,194,055
2021	600,551
2022	120,310
2023	83,550
Thereafter	71,357
Total minimum lease payments	3,576,229
Less: Interest	(402,040)
Present value of future minimum lease payments	$ 3,174,189	$ 3,700,000

XML

LEASE (Details Textual)	3 Months Ended
	Mar. 31, 2019 USD ($)
Operating Lease, Cost	$ 652,730

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NON-CONTROLLING INTERESTS (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Dec. 31, 2017
Non-Controlling Interests [Line Items]
Net Income (Loss)	$ 1,211,849	$ 968,868	$ 3,045,242
Other Comprehensive Income (Loss)	(150,322)	$ 308,007	(429,854)
Noncontrolling Interests	$ 17,412,571		$ 16,351,044	$ 13,735,656
Law Enterprise [Member]
Non-Controlling Interests [Line Items]
% of Non-controlling Interests	34.05%		34.05%
Net Income (Loss)	$ (59,003)		$ 193,308
Other Comprehensive Income (Loss)	(6,863)		(22,625)
Noncontrolling Interests	$ (138,423)		$ (72,557)	(243,240)
Law Broker [Member]
Non-Controlling Interests [Line Items]
% of Non-controlling Interests	34.05%		34.05%
Net Income (Loss)	$ 1,239,856		$ 2,655,344
Other Comprehensive Income (Loss)	(142,913)		(406,023)
Noncontrolling Interests	$ 17,246,605		$ 16,149,662	13,900,341
PFAL [Member]
Non-Controlling Interests [Line Items]
% of Non-controlling Interests	49.00%		49.00%
Net Income (Loss)	$ 36,189		$ 208,918
Other Comprehensive Income (Loss)	(631)		(255)
Noncontrolling Interests	$ 472,300		$ 436,742	228,079
MKI [Member]
Non-Controlling Interests [Line Items]
% of Non-controlling Interests	49.00%		49.00%
Net Income (Loss)	$ (515)		$ (513)
Other Comprehensive Income (Loss)	0		0
Noncontrolling Interests	$ (3,145)		$ (2,630)	(2,117)
PA Taiwan [Member]
Non-Controlling Interests [Line Items]
% of Non-controlling Interests	49.00%		49.00%
Net Income (Loss)	$ (4,649)		$ (11,789)
Other Comprehensive Income (Loss)	(96)		(531)
Noncontrolling Interests	$ (162,507)		$ (157,762)	(145,442)
PTC Nanjing [Member]
Non-Controlling Interests [Line Items]
% of Non-controlling Interests	49.00%		49.00%
Net Income (Loss)	$ (29)		$ (26)
Other Comprehensive Income (Loss)	181		(420)
Noncontrolling Interests	$ (2,259)		$ (2,411)	$ (1,965)

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INCOME TAX (Details)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Schedule of Income Tax [Line Items]
US statutory rate	21.00%	21.00%
Tax rate difference	(1.00%)	(1.00%)
Tax base difference	1.00%	1.00%
Income tax on undistributed earnings	3.00%	4.00%
Loss in subsidiaries	1.00%	1.00%
U.S. one-tine transition tax	0.00%	35.00%
Others	0.00%	1.00%
Effective tax rate	25.00%	62.00%

XML

INCOME TAX (Details Textual) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Schedule of Income Tax [Line Items]
Tax per financial statements	25.00%	62.00%
Tax Basis Percentage On Revenue	10.00%
Additional Income Tax Rate On Undistributed Earnings	5.00%
Effective Income Tax Rate Reconciliation, At Federal Statutory Income Tax Rate	21.00%	21.00%
Undistributed Earnings, Diluted		$ 1,199,195
Accrued Income Taxes, Noncurrent	$ 1,007,323		$ 1,007,323
Accrued Income Taxes, Current	$ 2,617,728		$ 1,599,146
Taiwan Dollar [Member]
Schedule of Income Tax [Line Items]
Effective Income Tax Rate Reconciliation, At Federal Statutory Income Tax Rate	20.00%
Maximum [Member]
Schedule of Income Tax [Line Items]
Effective Income Tax Rate Reconciliation, At Federal Statutory Income Tax Rate	35.00%
Minimum [Member]
Schedule of Income Tax [Line Items]
Effective Income Tax Rate Reconciliation, At Federal Statutory Income Tax Rate			21.00%
Hong Kong
Schedule of Income Tax [Line Items]
Tax per financial statements	16.50%
Subsidiary [Member]
Schedule of Income Tax [Line Items]
Tax per financial statements	25.00%

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RELATED PARTY TRANSACTIONS (Details) - USD ($)		Mar. 31, 2019	Dec. 31, 2018
Related Party Transaction [Line Items]
Total due to related parties		$ 1,020,060	$ 996,565
Less: Accrued bonus for Ms. Chao – noncurrent (Note 10)		(27,013)	0
Due to related parties, Total		993,047	996,565
Mr.Mao [Member]
Related Party Transaction [Line Items]
Due to related parties, Total	[1]	398,854	391,311
Ms Chao [Member]
Related Party Transaction [Line Items]
Due to related parties, Total		619,143	597,631
Others [Member]
Related Party Transaction [Line Items]
Due to related parties, Total		$ 2,063	$ 7,623

[1] Amounts due to Mr. Mao bear no interest and are payable on demand.

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RELATED PARTY TRANSACTIONS (Details Textual)			3 Months Ended
	Dec. 06, 2018 USD ($)	Dec. 06, 2018 TWD ($)	Mar. 31, 2019 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2018 USD ($)
Related Party Transaction [Line Items]
Revenues			$ 19,426,674	$ 17,489,380
General and Administrative Expense			3,803,556	3,951,621
Director [Member]
Related Party Transaction [Line Items]
Sponsor Fees	$ 60,000	$ 1,800,000
General and Administrative Expense				0
Apex Biz Solution [Member]
Related Party Transaction [Line Items]
Revenues			0	$ 16,753
Accounts Receivable, Net			$ 0		$ 0

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COMMITMENTS (Details Textual)	3 Months Ended
	Mar. 31, 2019
Other Commitments [Line Items]
Surplus Bonus Percentage	1.25%

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SEGMENT REPORTING (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenue
Total revenue	$ 19,426,674	$ 17,489,380
Income (loss) from operations
Total income from operations	3,939,424	3,278,058
Net income (loss)
Total net income	3,218,854	1,314,522
Elimination adjustment
Revenue
Total revenue	(6,954)	0
Income (loss) from operations
Total income from operations	32,553	35,230
Net income (loss)
Total net income	(258)	1,635
Taiwan
Revenue
Total revenue	16,971,117	14,740,772
Income (loss) from operations
Total income from operations	3,790,078	3,179,722
Net income (loss)
Total net income	3,125,888	1,255,468
PRC
Revenue
Total revenue	2,267,316	2,708,621
Income (loss) from operations
Total income from operations	31,584	73,190
Net income (loss)
Total net income	19,368	68,468
Hong Kong
Revenue
Total revenue	195,195	39,987
Income (loss) from operations
Total income from operations	85,209	(10,084)
Net income (loss)
Total net income	$ 73,856	$ (11,049)

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SEGMENT REPORTING (Details 1) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Long-lived assets
Total long-lived assets	$ 1,157,133	$ 1,195,695
Reportable assets
Total reportable assets	71,584,437	68,881,844
Capital Investment
Total capital investments	87,315	696,028
Elimination adjustment
Long-lived assets
Total long-lived assets	(1,322)	0
Reportable assets
Total reportable assets	(56,510,099)	(44,150,214)
Taiwan
Long-lived assets
Total long-lived assets	1,014,904	1,092,576
Reportable assets
Total reportable assets	115,111,986	100,220,270
Capital Investment
Total capital investments	34,888	641,873
PRC
Long-lived assets
Total long-lived assets	142,971	102,383
Reportable assets
Total reportable assets	11,864,379	11,796,388
Capital Investment
Total capital investments	52,427	53,158
Hong Kong
Long-lived assets
Total long-lived assets	580	736
Reportable assets
Total reportable assets	1,118,171	1,015,400
Capital Investment
Total capital investments	$ 0	$ 997

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SUBSEQUENT EVENTS (Details Textual) - USD ($)		1 Months Ended		3 Months Ended
	Apr. 14, 2019	Apr. 29, 2019	Apr. 16, 2019	Mar. 31, 2019	Mar. 31, 2018	Mar. 27, 2019
Proceeds from Short-term Debt				$ 9,512,787	$ 5,400,000
Debt Instrument, Interest Rate, Stated Percentage						0.48%
Subsequent Event [Member] | CTBC Bank [Member]
Proceeds from Short-term Debt	$ 50,000		$ 100,000
Debt Instrument, Interest Rate, Stated Percentage	3.60%		3.65%
Subsequent Event [Member] | O Bank Co Ltd [Member]
Proceeds from Short-term Debt		$ 600,000
Debt Instrument, Interest Rate, Stated Percentage		3.38%