Commitments and Contingencies

12 Months Ended

Dec. 31, 2013

Commitments and Contingencies [Abstract]

COMMITMENTS AND CONTINGENCIES

13.      COMMITMENTS AND CONTINGENCIES

(A) Defined contribution retirement plans

The full time employees of the Company are entitled to employee benefits including medical care, welfare subsidies, unemployment insurance and pension benefits through a Chinese government mandated multi-employer defined contribution plan. The Company is required to accrue for those benefits based on certain percentages of the employees’ salaries and make contributions to the plans out of the amounts accrued for medical and pension benefits. The total provision and contributions made for such employee benefits for the years ended December 31, 2013 and 2012 were $88,273 and $86,016 respectively. The Chinese government is responsible for the medical benefits and the pension liability to be paid to these employees.

(B) Rental leases commitment

In September 2013, Guangdong Xingbang lease Zhongshan office premises from Zhongshan Guzhen Asset Management Ltd pursuant to a lease agreement and pays a monthly rental of $1,891, which expires on August 31, 2018.

Xinyu Xingbang leases office premises from Xinyu Industry under an operating lease at a monthly rental of $2,808, which expires on June 30, 2015. Mr. Yao and his spouse own 90% and 10% respectively, of the registered capital of Xinyu Industry.

Xinyu Xingbang leases showrooms from Xinyu Industry pursuant to a lease agreement and pays a monthly rental of $46,570, which expires on September 30, 2016. On December 31, 2013, Xinyu Xingbang and Xinyu Industry agreed upon the termination of the lease agreement of the showrooms. The leasehold improvement for the showrooms was wholly relinquished by Xinyu Xingbang in order to offset the amount due to Xinyu Industry arose from the rental of showrooms, resulting in a loss on disposal with $151,055 in 2013.

As of December 31, 2013, the Company had outstanding commitments with respect to the above operating leases, which are due as follows:

For the fiscal years ending December 31,
2014		33,699
2015		29,457
2016		37,822
2017		37,822
2018		25,215
Total	$	164,015

Rental expenses for the year ended December 31, 2013 and 2012 was $772,447 and $309,245 respectively.

(c)            Capital commitment

As of December 31, 2012, the Company had contracted capital commitment of $7,936 for the purchase of office furniture.