Commitments and Contingencies

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 8 COMMITMENTS AND CONTINGENCIES

(a) Defined contribution retirement plans

The full time employees of Guangdong Xingbang and Xinyu Xingbang 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 three months ended September 30, 2015 and 2014 were $344,425, and $89,392 respectively. The total provision and contributions made for such employee benefits for the nine months ended September 30, 2015 and 2014 were $942,411 and $199,191 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 $15,105 which shall expire on December 31, 2016 pursuant to certain lease agreement.

In September 2013, Guangdong Xingbang leased Zhongshan office premises from an independent third party, Zhongshan Guzhen Asset Management Ltd, pursuant to a lease agreement at a monthly rental of $1,801. The lease shall expire on August 31, 2018.

Xinyu Xingbang leases office premises from Xinyu Xingbang Industry Co., Ltd (“Xinyu Industry”) under an operating lease at a monthly rental of 2,675, which shall expire on June 30, 2016. Mr. Yao and his spouse own 90% and 10% respectively, of the registered capital of Xinyu Industry. The lease was renewed with the same term which shall expire on June 30, 2019.

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 $1,023. The lease shall expire on August 27, 2015 and the Company ended the lease without renewal.

As of September 30, 2015, the Company had outstanding commitments with respect to the above operating leases, which are due as follows:

Three months ending December 31, 2015	$	62,346
Fiscal years ending December 31,
2016		249,381
2017		68,123
2018		56,115
2019		16,049
Total	$	452,014

Rental expenses for the three and nine months ended September 30, 2015 and 2014 were $75,584, $61,622, $205,023 and $182,674 respectively.

(c) Capital commitment

As of September 30, 2015, the Company had contracted capital commitment of $54,833 for the purchase of office equipment.