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Fair Value | 12 Months Ended
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Dec. 31, 2020
Fair Value Disclosures [Abstract] |
Fair Value | Note 5 - Fair Value Fair Value Hierarchy FASB ASC 820 defines fair value, establishes a framework for measuring fair value, and establishes a hierarchy of fair value inputs. Fair value is 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. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market. Valuation techniques that are consistent with the market, income or cost approach, as specified by FASB ASC 820, are used to measure fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels:
| ● | Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date.
| ● | Level 2 are inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly or indirectly.
| ● | Level 3 inputs are unobservable inputs for the asset or liability.
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety. A description of the valuation techniques applied to the Group’s major categories of assets and liabilities measured at fair value on a recurring basis follows. Exchange-traded equity securities and futures are generally valued based on quoted prices at the close of trading on the period end date. To the extent these securities and futures are actively traded, valuation adjustments are not applied, and they are categorized in level 1 of the fair value hierarchy; otherwise, they are categorized in level 2 or level 3 of the fair value hierarchy. Listed derivatives that are actively traded are valued based on quoted prices at the close of trading on the period end date and are categorized in level 1 of the fair value hierarchy. Listed derivatives that are not actively traded are valued using the same approaches as those applied to OTC derivatives; they are generally categorized in level 2 of the fair value hierarchy. Depending on the product and the terms of the transaction, the fair value of OTC derivative products can be either observed or modeled using a series of techniques and model inputs from comparable benchmarks. Substantially all of the Group’s OTC derivatives were carried at fair value based on spot exchange rates broadly distributed in active markets, or amounts approximating fair value. Such values are categorized as level 2 of the fair value hierarchy. Public Warrants are classified as level 1 financial instruments, as their value is derived using quoted market prices as of the measurement date. Private Warrants are classified as level 2, which are valued using a Black-Sholes-Merton pricing model at of the measurement date. The significant assumptions which the Company used in the model for the period from June 16, 2020 to December 31, 2020 are:
Stock price |  | $ | 1.89 ~ 2.43 |
Exercise price |  | $ | 11.50 |
Expected term in years |  |  | 4.46 ~ 5.00 |
Expected dividend yield |  |  | 0 | %
Volatility |  |  | 54.44% ~ 54.92 | %
Risk-free interest Rate |  |  | 0.364% ~ 0.373 | %
The following table presents the Group’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis at December 31, 2020 and 2019. At December 31, 2020
|  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |  |  | Total |
Assets |  |  |  |  |  |  |  |  |  |  |  |
Listed equity securities |  | $ | 17,622 |  |  | $ | - |  |  | $ | - |  |  | $ | 17,622 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivatives |  | $ | - |  |  | $ | (5,653 | ) |  | $ | - |  |  | $ | (5,653 | )
Warrant liabilities (as restated) |  |  | (1,000,500 | ) |  |  | (469,321 | ) |  |  | - |  |  |  | (1,469,821 | )
|  | $ | (1,000,500 | ) |  | $ | (474,974 | ) |  | $ | - |  |  | $ | (1,475,474 | )
At December 31, 2019
|  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |  |  | Total |
Assets |  |  |  |  |  |  |  |  |  |  |  |
Listed equity securities |  | $ | 180,201 |  |  | $ | — |  |  | $ | — |  |  | $ | 180,201 |
Derivatives |  |  | — |  |  |  | 194,110 |  |  |  | — |  |  |  | 194,110 |
|  | $ | 180,201 |  |  | $ | 194,110 |  |  | $ | — |  |  | $ | 374,311 |
There were no transfers between level 1 and level 2 during either year. The following table presents the carrying values and estimated fair values of financial assets and liabilities, excluding financial instruments that are carried at fair value on a recurring basis, and information is provided on their classification within the fair value hierarchy. At December 31, 2020
|  |  |  |  | Quoted Prices |  |  |  |  |  |  |  |  |  |
|  |  |  |  | in Active |  |  | Significant |  |  | Significant |  |  |  |
|  | Total |  |  | Markets for |  |  | Observable |  |  | Unobservable |  |  |  |
|  | Carrying |  |  | Identical Assets |  |  | Inputs |  |  | Inputs |  |  | Estimated |
|  | Value |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |  |  | Fair Value |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 3,426,467 |  |  | $ | 3,426,467 |  |  | $ | - |  |  | $ | - |  |  | $ | 3,426,467 |
Bank balances held on behalf of customers |  |  | 1,367,630 |  |  |  | 1,367,630 |  |  |  | - |  |  |  | - |  |  |  | 1,367,630 |
Receivables from broker-dealers and clearing organizations |  |  | 8,089,193 |  |  |  | - |  |  |  | 8,089,193 |  |  |  | - |  |  |  | 8,089,193 |
Short-term loans receivable |  |  | 2,239,378 |  |  |  | - |  |  |  | 2,239,378 |  |  |  | - |  |  |  | 2,239,378 |
Commissions receivable |  |  | 71,253 |  |  |  | - |  |  |  | 71,253 |  |  |  | - |  |  |  | 71,253 |
Other receivables |  |  | 724,708 |  |  |  | - |  |  |  | 724,708 |  |  |  | - |  |  |  | 724,708 |
|  | $ | 15,918,629 |  |  | $ | 4,794,097 |  |  | $ | 10,399,824 |  |  | $ | - |  |  | $ | 15,918,629 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payables to customers |  | $ | 5,221,270 |  |  | $ | - |  |  | $ | 5,221,270 |  |  | $ | - |  |  | $ | 5,221,270 |
Payable to broker-dealers |  |  | 3,845,740 |  |  |  | - |  |  |  | 3,845,740 |  |  |  | - |  |  |  | 3,845,740 |
Commissions payable |  |  | 39,180 |  |  |  | - |  |  |  | 39,180 |  |  |  | - |  |  |  | 39,180 |
Accrued expenses and other payables |  |  | 1,763,094 |  |  |  | - |  |  |  | 1,763,094 |  |  |  | - |  |  |  | 1,763,094 |
Short-term borrowings |  |  | 293,905 |  |  |  | - |  |  |  | 293,905 |  |  |  | - |  |  |  | 293,905 |
Due to director |  |  | 149,522 |  |  |  | - |  |  |  | 149,522 |  |  |  | - |  |  |  | 149,522 |
|  | $ | 11,312,711 |  |  | $ | - |  |  | $ | 11,312,711 |  |  | $ | - |  |  | $ | 11,312,711 |
At December 31, 2019
|  |  |  |  | Quoted Prices |  |  |  |  |  |  |  |  |  |
|  |  |  |  | in Active |  |  | Significant |  |  | Significant |  |  |  |
|  | Total |  |  | Markets for |  |  | Observable |  |  | Unobservable |  |  |  |
|  | Carrying |  |  | Identical Assets |  |  | Inputs |  |  | Inputs |  |  | Estimated |
|  | Value |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |  |  | Fair Value |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 6,388,978 |  |  | $ | 6,388,978 |  |  | $ | — |  |  | $ | — |  |  | $ | 6,388,978 |
Bank balances held on behalf of customers |  |  | 2,192,201 |  |  |  | 2,192,201 |  |  |  | — |  |  |  | — |  |  |  | 2,192,201 |
Receivables from broker-dealers and clearing organizations |  |  | 1,684,961 |  |  |  | — |  |  |  | 1,684,961 |  |  |  | — |  |  |  | 1,684,961 |
Short-term loans receivable |  |  | 1,637,310 |  |  |  | — |  |  |  | 1,637,310 |  |  |  | — |  |  |  | 1,637,310 |
Commissions receivable |  |  | 88,560 |  |  |  | — |  |  |  | 88,560 |  |  |  | — |  |  |  | 88,560 |
Other receivables |  |  | 166,064 |  |  |  | — |  |  |  | 166,064 |  |  |  | — |  |  |  | 166,064 |
|  | $ | 12,158,074 |  |  | $ | 8,581,179 |  |  | $ | 3,576,895 |  |  | $ | — |  |  | $ | 12,158,074 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payables to customers |  | $ | 3,853,693 |  |  | $ | — |  |  | $ | 3,853,693 |  |  | $ | — |  |  | $ | 3,853,693 |
Commissions payable |  |  | 29,439 |  |  |  | — |  |  |  | 29,439 |  |  |  | — |  |  |  | 29,439 |
Dividends payable |  |  | 385,901 |  |  |  | — |  |  |  | 385,901 |  |  |  |  |  |  |  | 385,901 |
Accrued expenses and other payables |  |  | 417,445 |  |  |  | — |  |  |  | 417,445 |  |  |  | — |  |  |  | 417,445 |
Short-term borrowings |  |  | 1,412,570 |  |  |  | — |  |  |  | 1,412,570 |  |  |  |  |  |  |  | 1,412,570 |
Short-term borrowings from related party |  |  | 128,415 |  |  |  | — |  |  |  | 128,415 |  |  |  | — |  |  |  | 128,415 |
|  | $ | 6,227,463 |  |  | $ | — |  |  | $ | 6,227,463 |  |  | $ | — |  |  | $ | 6,227,463 |

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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