Commitments and Contingencies

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies [Abstract]

COMMITMENTS AND CONTINGENCIES

11.         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, 2014 and 2013 were $287,072 and $88,273 respectively. The Chinese government is responsible for the medical benefits and the pension liability to be paid to these employees. 

(B) Rental leases commitment

Guangdong Xingbang leases office premises from two stockholders (Mr. Yao and his spouse) under an operating lease at a monthly rental of $15,472 until December 31, 2016 pursuant to certain lease agreement.

In September 2013, Guangdong Xingbang lease Zhongshan office premises from an independent third party, Zhongshan Guzhen Asset Management Ltd, pursuant to a lease agreement and pays a monthly rental of $1,845, which expires on August 31, 2018.

Xinyu Xingbang leases office premises from Xinyu Industry under an operating lease at a monthly rental of $2,740, which expires on June 30, 2015. Mr. Yao and his spouse own 90% and 10% respectively, of the registered capital of Xinyu Industry.

In August 2014, Xinyu Xingbang leased Guangzhou office premises from an independent third party, Jingyan Yang, pursuant to a lease agreement and pays a monthly rental of $1,048. The lease shall expire on August 27, 2015.

As of December 31, 2014, the Company had outstanding commitments with respect to the above operating leases, which are due as follows:

For the fiscal years ending December 31,
2015		222,790
2016		222,571
2017		36,902
2018		24,602
Total	$	506,865

Rental expenses for the year ended December 31, 2014 and 2013 was $246,571 and $772,447 respectively.

(C) Capital commitment

As of December 31, 2014, the Company had contracted capital commitment of $11,429 for the purchase of office furniture.