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DISCONTINUED OPERATIONS
 12 Months Ended
Dec. 31, 2016
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]
22.
DISCONTINUED OPERATIONS
 
In accordance with ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, a disposal of a component of an entity or a group of components of an entity is required to be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the components of an entity meets the criteria in paragraph 205-20-45-1E to be classified as held for sale. When all of the criteria to be classified as held for sale are met, including management, having the authority to approve the action, commits to a plan to sell the entity, the major current assets, other assets, current liabilities, and noncurrent liabilities shall be reported as components of total assets and liabilities separate from those balances of the continuing operations. At the same time, the results of all discontinued operations, less applicable income taxes (benefit), shall be reported as a component of net income (loss) separate from the net income (loss) of continuing operations in accordance with ASC 205-20-45.
 
Reconciliation of the carrying amounts of major classes of assets and liabilities classified as discontinued operations in the consolidated balance sheets.
 
 
 
December 31,
 
 
 
2016
 
2015
 
 
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
CURRENT ASSETS:
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
-
 
$
9,207
 
Accounts receivable, net
 
 
-
 
 
602,037
 
Other receivables, net
 
 
-
 
 
6,057
 
Advances to suppliers – third parties
 
 
-
 
 
40,675
 
Due from related party
 
 
 
 
 
38,792
 
Inventories, net
 
 
-
 
 
-
 
Total Current Assets
 
 
-
 
 
696,768
 
 
 
 
 
 
 
 
 
Property and equipment, net
 
 
-
 
 
494,184
 
Long-term prepaid expense
 
 
-
 
 
18,889
 
Total Assets
 
$
-
 
$
1,209,841
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
CURRENT LIABILITIES:
 
 
 
 
 
 
 
Accounts payable
 
$
-
 
$
400,708
 
Advances from customers
 
 
-
 
 
75,432
 
Accrued expenses and other current liabilities
 
 
-
 
 
194,669
 
Taxes payable
 
 
-
 
 
683
 
Total Current Liabilities
 
$
-
 
$
671,492
 
 
Reconciliation of the Carrying Amounts of Major Classes of Net Income (Loss) from Operations to be Disposed Classified as discontinued operations in the Consolidated Statements of Operations and Comprehensive Loss.
 
 
 
For the Years Ended
 
 
 
December 31,
 
 
 
2016
 
2015
 
2014
 
 
 
 
 
 
 
(restated)
 
Revenues
 
$
329,119
 
$
947,732
 
$
14,911,808
 
 
 
 
 
 
 
 
 
 
 
 
Costs of revenue
 
 
(338,110)
 
 
(2,698,808)
 
 
(13,199,592)
 
 
 
 
 
 
 
 
 
 
 
 
Gross profit (loss)
 
 
(8,991)
 
 
(1,751,076)
 
 
1,712,216
 
 
 
 
 
 
 
 
 
 
 
 
Service incomes
 
 
3,244
 
 
208,303
 
 
317,600
 
Service expenses
 
 
(5,497)
 
 
(198,745)
 
 
(16,342)
 
General and administrative expenses
 
 
(76,024)
 
 
(866,260)
 
 
(1,480,063)
 
Provision for doubtful accounts
 
 
-
 
 
(618,290)
 
 
(22,001,332)
 
Impairment loss for property and equipment
 
 
-
 
 
-
 
 
(1,978,711)
 
Impairment loss for intangible assets
 
 
(18,447)
 
 
-
 
 
(1,579,495)
 
Selling expenses
 
 
(63,089)
 
 
(456,852)
 
 
(977,294)
 
 
 
 
 
 
 
 
 
 
 
 
Operating loss
 
$
(168,804)
 
$
(3,682,920)
 
$
(26,003,421)
 
 
 
 
 
 
 
 
 
 
 
 
Loss before provision for income tax
 
$
(167,730)
 
$
(3,663,465)
 
$
(26,003,708)
 
 
 
 
 
 
 
 
 
 
 
 
Provision for income tax expense
 
 
(844)
 
 
-
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
Net loss from discontinued operations
 
$
(168,574)
 
$
(3,663,465)
 
$
(26,003,708)