China INSOnline Corp. (CHIO, Financial) filed Quarterly Report for the period ended 2009-12-31.
China Insonline Corp. has a market cap of $20.8 million; its shares were traded at around $0.52 with and P/S ratio of 1.16.
ZYTX was originally founded with goal of raising the national insurance consciousness and reducing the cost on national security in China by constructing and maintaining its network portal (www.soobao.cn) in order to integrate and optimize business flow during the course of insurance sales and related client services. From incorporation through the end of December 31, 2009, ZYTX was primarily engaged in institutional preparation and prior-period business development. Thereafter, through trial implementation of www.soobao.cn, ZYTX s products and services received favorable reviews and recognition in the Chinese insurance industry. ZYTX strengthened its technical research and development and expanded its product line after collecting suggestions from clients. In April 2007, www.soobao.cn was formally put into use. For the six months ended December 31, 2009 and 2008, the Company generated net revenues of $8,783,556 and $9,033,665, respectively.
Pursuant to relevant PRC tax laws, the Company is subject to business tax at 5% of gross sales, excluding software development income. Of the $2,593,083 of business tax payable at December 31, 2009, $1,495,788 was due on April 30, 2009 and $1,097,295 is due on April 30, 2010. The Company has been negotiating with the tax authorities to defer the payment of business tax which was due on April 30, 2009 without interest or penalties, and the Company is awaiting the final ruling from the tax authorities. If the response from the tax authorities is adverse, the Company may have a shortage of working capital and may need funding to maintain its operations.
On December 30, 2009, the Company received a Staff Deficiency Letter from the NASDAQ indicating that for the previous 30 consecutive business days, the bid price for the Company s common stock had closed below the minimum $1.00 per share requirement for continued listing on the NASDAQ Capital Market. The notification conveyed by the Letter had no effect on the listing of the Company s common stock as of the notice date, however the Company has 180 calendar days from the notice date to regain compliance. In order to regain compliance, the Company's common stock must have a closing bid price of $1.00 per share or greater for a minimum of ten consecutive business days during the grace period. If the minimum bid requirement cannot be demonstrated by the Company prior to the expiration of such grace period, NASDAQ may grant to the Company an additional 180 calendar day period to regain compliance if at that time the Company meets the NASDAQ Capital Market initial listing requirements except for the minimum bid price requirement. Otherwise, if the Company fails to regain compliance during the grace period and the staff does not elect to grant an additional compliance period, the Company's common stock may be subject to delisting.
Cash consideration includes discounts and other offers that entitle a customer to receive a reduction in the price of a product. For the six (6) months ended December 31, 2009 and 2008, the Company recognized $33,581 and $363,388, respectively, as a reduction of revenue for the discount offered to its customers.
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China Insonline Corp. has a market cap of $20.8 million; its shares were traded at around $0.52 with and P/S ratio of 1.16.
Highlight of Business Operations:
On October 28, 2008, Rise & Grow and ZYTX entered into a Share Purchase Agreement pursuant to which Rise & Grow acquired 100% ownership of Guang Hua Insurance Agency Company Limited (“GHIA”), a limited liability company organized under the laws of the PRC, through ZYTX to act as legal owner in China. GHIA is an insurance agent company which operates in the PRC. The consideration was US$5,846,244 (RMB$40,000,000) in cash. This share purchase transaction resulted in Rise & Grow obtaining 100% of the voting and beneficial interest in GHIA.ZYTX was originally founded with goal of raising the national insurance consciousness and reducing the cost on national security in China by constructing and maintaining its network portal (www.soobao.cn) in order to integrate and optimize business flow during the course of insurance sales and related client services. From incorporation through the end of December 31, 2009, ZYTX was primarily engaged in institutional preparation and prior-period business development. Thereafter, through trial implementation of www.soobao.cn, ZYTX s products and services received favorable reviews and recognition in the Chinese insurance industry. ZYTX strengthened its technical research and development and expanded its product line after collecting suggestions from clients. In April 2007, www.soobao.cn was formally put into use. For the six months ended December 31, 2009 and 2008, the Company generated net revenues of $8,783,556 and $9,033,665, respectively.
Pursuant to relevant PRC tax laws, the Company is subject to business tax at 5% of gross sales, excluding software development income. Of the $2,593,083 of business tax payable at December 31, 2009, $1,495,788 was due on April 30, 2009 and $1,097,295 is due on April 30, 2010. The Company has been negotiating with the tax authorities to defer the payment of business tax which was due on April 30, 2009 without interest or penalties, and the Company is awaiting the final ruling from the tax authorities. If the response from the tax authorities is adverse, the Company may have a shortage of working capital and may need funding to maintain its operations.
On December 30, 2009, the Company received a Staff Deficiency Letter from the NASDAQ indicating that for the previous 30 consecutive business days, the bid price for the Company s common stock had closed below the minimum $1.00 per share requirement for continued listing on the NASDAQ Capital Market. The notification conveyed by the Letter had no effect on the listing of the Company s common stock as of the notice date, however the Company has 180 calendar days from the notice date to regain compliance. In order to regain compliance, the Company's common stock must have a closing bid price of $1.00 per share or greater for a minimum of ten consecutive business days during the grace period. If the minimum bid requirement cannot be demonstrated by the Company prior to the expiration of such grace period, NASDAQ may grant to the Company an additional 180 calendar day period to regain compliance if at that time the Company meets the NASDAQ Capital Market initial listing requirements except for the minimum bid price requirement. Otherwise, if the Company fails to regain compliance during the grace period and the staff does not elect to grant an additional compliance period, the Company's common stock may be subject to delisting.
Cash consideration includes discounts and other offers that entitle a customer to receive a reduction in the price of a product. For the six (6) months ended December 31, 2009 and 2008, the Company recognized $33,581 and $363,388, respectively, as a reduction of revenue for the discount offered to its customers.
Read the The complete Report
