Description of Business
Since the second half of 2012, the Company gradually has changed its focus from online retail business, and focused on providing warehousing management and B to B supply chain information technology service for suppliers. After business restructuring and a pilot run in the first half of 2013, the Company's main business was adjusted to conduct warehousing management services and focusing on B to B supply chain information technology, providing third party supply chain management service for customers, providing data services, and supply chain financial services, and other value-added services for customers. The Company provides customers with B to B integrated supply chain services.
By establishing a warehousing base, using supply chain management ( "iSCM") (namely, e-commerce supply chain management system) platform to build a "standardized" identity for the "non-standardized" products, and completing standard data transmission between the upstream and downstream enterprise resource planning of enterprises through the iSCM platform, the Company makes the information of purchases, sales and logistics of its customers more accurate and transparent. With the support of this platform, our customers' business information is displayed accurately in front of their partners, such as banks. By providing customers with this platform and providing customers with third party logistics supervision, the Company assists banks and other financial institutions in providing customers with supply chain based financial services.
Through the stimulation of labor specialization, the original competition between products or companies has turned into the competition between supply chains. Each supply chain is represented by collaboration among multiple enterprises, and provides a set of final products for consumers. The Company now focuses on B to B data collection and transmission among multiple enterprises, and data analysis services. Our advanced technology, experiences in supply chain management and efficient data processing ability provides value-added data services for other online platforms, offline stores and logistic servers, banks and others.
The Company is headquartered in
Organizational History of
Organizational History of Surry
Organizational History of Westow
Westow was incorporated on
Organizational History of
Organizational History of
Softview was incorporated in
The address for each entity is set forth below:
Ceetop, Inc.(formerly ChinaA2803, Lianhe Guangchang, 5022 Ceetop.com, Inc.) Binhe Dadao, Futian District, Shenzhen, China Ceetop Holdings LimitedP.O. Box 957, Offshore (formerly Surry HoldingsIncorporations Centre, Road Limited) Town, Tortola, British Virgin Islands Westow Technology LimitedP.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands Guizhou Ceetop Group Holding East Yunhuan Road, Baiyun Co., Ltd. (formerly GuizhouDistrict, Guiyang, China Ceetop Network Technology Co. Ltd.) (headquarters) Hangzhou Ceetop Network 501 A YuanhuaWangzuo Center, 65 Technology Co. Ltd Xintang Road, Hangzhou, China, 310020 Hangzhou Lianzhan Supply Chain Suite A1028, 9th Xiyuan Road, Management Co., Ltd.Boke Dasha, Hangzhou, ChinaHangzhou Tuoyin Management Suite A1027, 9th Xiyuan Road, Consulting Co., Ltd.Boke Dasha, Hangzhou, China
Hangzhou Softview Information Suite A1026,
Financial Condition and Changes in Financial Condition
Overall Operating Results:
Net Sales. For the three months ended
Selling, General and Administrative Expenses. Our selling, general and administrative expenses increased to
Net Loss. The Company's net loss was
Liquidity and Capital Resources:
The Company incurred net losses of
For the year ended
Critical Accounting Policies
We believe that the critical accounting policies and estimates discussed below involve the most complex management judgments due to the sensitivity of the methods and assumptions necessary in determining the related asset, liability, revenue and expense amounts. In consultation with our Board of Directors, we have identified the following critical accounting policies that require management's most difficult subjective judgment:
Cash and Cash Equivalents
For purposes of the statement of cash flows, the Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.
The Company's revenue recognition policies are in compliance with
Accounts Receivable/Bad Debt
The Company maintains reserves for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. Reserves are recorded based on the Company's historical collation history.
Property and Equipment
Property, plant and equipment are stated at cost. Expenditures for maintenance and repairs are charged to earnings as incurred; additions, renewals and betterments are capitalized. When property, plant and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation of property, plant and equipment is provided using the straight-line method over the estimated useful lives of the assets.
Impairment of Long-Lived Assets
The Property, Plant and Equipment Topic of the Codification addresses financial accounting and reporting for the impairment or disposal of long-lived assets and supersedes previous accounting guidance, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of," and "Reporting the Results of Operations for a Disposal of a Segment of a Business." The Company periodically evaluates the carrying value of long-lived assets to be held and used, which requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets carrying amounts. In that event, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the long-lived assets. Loss on long-lived assets to be disposed of is determined in a similar manner, except that fair market values are reduced for the cost of disposal. Based on its review, the Company believes that, as of
The Company utilizes the accounting standards ("SFAS") No. 109, "Accounting for Income Taxes," codified in Financial Accounting Standard Board Accounting Standards Codification ("ASC") Topic 740 which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.
The Company adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, ("FIN 48"), codified in FASB ASC Topic 740. When tax returns are filed, it is likely that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits are classified as interest expense and penalties are classified in selling, general and administrative expenses in the statements of income. The adoption of FIN 48 did not have a material impact on the Company's financial statements. At
Basic and Diluted Income / (Loss) Per Share
Earnings per share are calculated in accordance with FASB ASC Topic 260, "Earnings per Share". Basic earnings per share is based upon the weighted average number of common shares and preferred shares outstanding. Preferred shares are included in the denominator of basic earnings per share because preferred shares participate with common shares in the earnings and dividends of the Company on a one-for-one basis. Diluted earnings per share is based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period.
Fair Value of Financial Instruments
The Financial Instrument Topic of the Codification requires that the Company disclose estimated fair values of financial instruments. The carrying amounts reported in the balance sheets for current assets and current liabilities qualifying as financial instruments are a reasonable estimate of fair value.
Share Based Compensation
Share-based payment is accounted for based on the FASB Statement No. 123R, "Share-Based Payment, an Amendment of FASB Statement No. 123" ("FAS No. 123R") and
Off Balance Sheet Arrangements