42 overview we were incorporated in delaware under the name cardigant medical inc. on april 17 , 2009. our initial business plan was to focus on the development of novel biologic and peptide based compounds and enhanced methods for local delivery for the treatment of vascular disease including peripheral artery disease and ischemic stroke . pursuant to the stock purchase agreement dated as of july 31 , 2014 , yong li , an individual purchased a total of 22,185,230 restricted shares of common stock of the company from a group of three former stockholders of the company . in consideration for the shares , mr. li paid the sellers $ 399,344 in cash which came from his own capital . the sellers were jerett a. creed , the company 's former chief executive officer , chief financial officer , director and formerly a controlling stockholder of the company , the creed family limited partnership and ralph sinibaldi . the shares represented approximately 95 % of the company 's then issued and outstanding common stock . the sale was consummated on august 28 , 2014. as a result of the transaction , there was a change in control of the company . on august 27 , 2014 , we entered into a contribution agreement with cardigant neurovascular . pursuant to the contribution agreement , we assigned all our assets , properties , rights , title and interest used or held for use by our business , ( except for certain excluded assets set forth therein ) which was the treatment of atherosclerosis and plaque stabilization in both the coronary and peripheral vasculature using systemic and local delivery of large molecule therapeutics and peptide mimetics based on high density lipoprotein targets ( “ cardigant business ” ) . in consideration for such contribution of capital , cardigant neurovascular agreed to assume all our liabilities raising from the business prior to the date of the contribution agreement and thereafter with regard to certain contributed contacts . we granted cardigant neurovascular an exclusive option for a period of 6 months to purchase the excluded assets for $ 1. cardigant neurovascular exercised this option october 20 , 2014 and the excluded assets were assigned to cardigant neurovascular on october 20 , 2014. also on october 20 , 2014 , we acquired the business of hongkong takung assets and equity of artworks exchange co. , ltd ( “ hong kong takung ” ) through the acquisition of all the share capital of hong kong takung under a share exchange agreement dated september 23 , 2014 in exchange for 209,976,000 ( pre-reverse stock split ) newly-issued restricted shares of our common stock to the shareholders of hong kong takung ( the “ reverse merger ” ) . hong kong takung is a limited liability company incorporated on september 17 , 2012 under the laws of hong kong , special administrative region , china . although takung was incorporated in 2012 , it did not commence business operations until late 2013. as a result of the transfer of the excluded assets pursuant to the contribution agreement and the acquisition of all the issued and outstanding shares of hong kong takung , we are no longer conducting the cardigant business and have now assumed hong kong takung 's business operations as it now our only operating wholly-owned subsidiary . hong kong takung operates an electronic online platform located at http : //eng.takungae.com for artists , art dealers and art investors to offer and trade in valuable artwork . through hong kong takung , we offer on-line listing and trading services that allow artists/art dealers/owners to access a much bigger art trading market where they can engage with a wide range of investors that they might not encounter without our platform . our platform also makes investment in high-end and expensive artwork more accessible to ordinary people without substantial financial resources . on november 5 , 2014 , we filed a certificate of amendment to our certificate of incorporation with the secretary of state of the state of delaware to change our name from “ cardigant medical inc. ” to “ takung art co. , ltd. ” 43 we generate revenue from our services in connection with the offering and trading of artwork ownership units on our system , primarily consisting of listing fees , trading commissions , and management fees . we conduct our business primarily in hong kong , special administrative region , people 's republic of china . our principal executive offices are located at flat/rm 03-04 , 20/f , hutchison house , 10 harcourt road , central hong kong . on july 28 , 2015 , hong kong takung incorporated a wholly owned subsidiary , takung ( shanghai ) co. , ltd. ( “ shanghai takung ” ) , in shanghai free-trade zone ( sftz ) in shanghai , china , with a registered capital of $ 1 million . shanghai takung assists in hong kong takung 's operations by receiving deposits from and making payments to online artwork traders in mainland china on behalf of hong kong takung . on january 27 , 2016 , hong kong takung incorporated a wholly owned subsidiary , takung cultural development ( tianjin ) co. , ltd ( “ tianjin takung ” ) in the tianjin free trade zone ( tjftz ) in tianjin , china with a registered capital of $ 1 million . tianjin takung provides technology development services to hong kong takung and shanghai takung , and also carries out marketing and promotion activities in mainland china . results of operation of takung hong kong takung operates a platform for offering and trading artwork . we generate revenue from our services in connection with the offering and trading of artwork ownership units on our system , primarily consisting of listing fees , trading commissions , and management fees . story_separator_special_tag an additional discount program was offered to vip traders when their trading volumes of certain artworks reach an agreed level each month , a contractually determined flat rate of trading commission was applied to the transactions of these certain artworks . any trading commission charges incurred by the vip traders over the flat rate would be waived and deducted from the commission revenue . from april 9 , 2015 to june 8 , 2015 , we waived all management fees and trading commissions on the buy side as a promotion and this resulted in a decrease in our commission revenue . commission revenues are $ 6,145,261 and $ 2,832,158 ( net of applicable rebates and discounts ) for the years ended december 31 , 2015 and 2014 , respectively . management fee -the company charges management fees for covering the insurance , storage , and transportation for an artwork and trading management of artwork units , which are calculated at $ 0.0013 ( hk $ 0.01 ) per 100 artwork ownership units per day . the management fee is accounted for as revenue , and immediately deducted from the proceeds from the sales of artwork ownership units when a transaction is completed . a discount program is offered to waive the management fee during certain promotion periods . such discount is recognized as a reduction of the revenue in the same period the related revenue is recognized . management fee revenues were $ 115,542 and $ 113,243 for the years ended december 31 , 2015 and 2014 , respectively . annual fee income -the company charges an annual fee for providing traders and offering agents with premium services , including more in-depth information and tools , on the trading platform . this revenue is recognized ratably over the service agreement period . authorized agent subscription revenue - we charge an authorized agent subscription fee which is an annual service fee paid by authorized agents to grant them the right to bring their network of artwork owners to list their artwork on our trading platform . this revenue is recognized ratably over the annual agreement period income taxes the company accounts for income taxes using an asset and liability approach which allows for the recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years . under the asset and liability approach , deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes . a valuation allowance is provided for deferred tax assets if it is more likely than not that these items will either expire before the company is able to realize their benefits , or that future deductibility is uncertain . 50 under asc 740 , a tax position is recognized as a benefit only if it is “ more likely than not ” that the tax position would be sustained in a tax examination , with a tax examination being presumed to occur . the evaluation of a tax position is a two-step process . the first step is to determine whether it is more-likely-than-not that a tax position will be sustained upon examination , including the resolution of any related appeals or litigations based on the technical merits of that position . the second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements . a tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement . tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met . previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met . penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the year incurred . gaap also provides guidance on de-recognition , classification , interest and penalties , accounting in interim periods , disclosures and transition . earnings per share of common stock the company reports earnings ( loss ) per share in accordance with asc topic 260-10 `` earnings per share . `` basic earnings ( loss ) per share are computed by dividing income ( loss ) available to common shareholders by the weighted average number of common shares available . stock-based compensation the company accounts for stock-based compensation under asc topic 505-50. this standard defines a fair value-based method of accounting for stock-based compensation . the cost of stock-based compensation is measured at the grant date based on the value of the award , and is recognized over the period in which the company expects to receive the benefit , which is generally the vesting period . as of december 31 , 2015 , there were no options or warrants outstanding . recent accounting pronouncements income statement-extraordinary and unusual items : in january 2015 , the financial accounting standards board ( fasb ) issued accounting standards update no . 2015-01 about income statement-extraordinary and unusual items ( subtopic 225-20 ) . asu 2015-01 addresses the elimination from u.s. gaap the concept of extraordinary items . presently , an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item . if an event or transaction meets the criteria for extraordinary classification , an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement , net of tax , after income from continuing operations . this amended guidance will prohibit separate disclosure of extraordinary items in the income statement .

sources of liquidity the cash balance at december 31 , 2015 was $ 10,769,456. of the $ 10,769,456 , we had $ 1,849,010 denominated in hong kong dollars in hong kong banks , $ 1,457,247 and $ 953,186 denominated in us dollars deposited in banks in hong kong and china respectively , and $ 6,510,013 denominated in renminbi and deposited in a bank in china . during the year ended december 31 , 2015 , net cash provided by operating activities totaled $ 5,419,693. net cash used in investing activities totaled $ 512,144. net cash provided by financing activities totaled $ 3,510,853. the resulting change in cash for the period was an increase of $ 8,413,617 , which was primarily due to a net income of $ 5,436,109 and the collection from subscription proceeds from the issuance of shares . the cash balance at december 31 , 2014 was $ 2,355,839. during the year ended december 31 , 2014 , net cash provided by operating activities totaled $ 2,591,661. net cash used in investing activities totaled $ 497,942. no cash was generated from financing activities . the resulting change in cash for the period was an increase of $ 2,095,652 , which was primarily due to a net income of $ 1,369,537 and the increase in account payables and other accruals , offset by the increase in payment for the purchase of property and equipment . as of december 31 , 2015 , the company had $ 18,427,281 in total current liabilities , which included $ 667,622 in account payables and other accruals , $ 16,195,289 in customers ' deposits , and $ 1,564,370 tax payables . as of december 31 , 2014 , the company had $ 9,009,168 in total current liabilities , which included $ 1,891,525 in account payables and other accruals , and $ 6,865,821 in customers ' deposits .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```sources of liquidity the cash balance at december 31 , 2015 was $ 10,769,456. of the $ 10,769,456 , we had $ 1,849,010 denominated in hong kong dollars in hong kong banks , $ 1,457,247 and $ 953,186 denominated in us dollars deposited in banks in hong kong and china respectively , and $ 6,510,013 denominated in renminbi and deposited in a bank in china . during the year ended december 31 , 2015 , net cash provided by operating activities totaled $ 5,419,693. net cash used in investing activities totaled $ 512,144. net cash provided by financing activities totaled $ 3,510,853. the resulting change in cash for the period was an increase of $ 8,413,617 , which was primarily due to a net income of $ 5,436,109 and the collection from subscription proceeds from the issuance of shares . the cash balance at december 31 , 2014 was $ 2,355,839. during the year ended december 31 , 2014 , net cash provided by operating activities totaled $ 2,591,661. net cash used in investing activities totaled $ 497,942. no cash was generated from financing activities . the resulting change in cash for the period was an increase of $ 2,095,652 , which was primarily due to a net income of $ 1,369,537 and the increase in account payables and other accruals , offset by the increase in payment for the purchase of property and equipment . as of december 31 , 2015 , the company had $ 18,427,281 in total current liabilities , which included $ 667,622 in account payables and other accruals , $ 16,195,289 in customers ' deposits , and $ 1,564,370 tax payables . as of december 31 , 2014 , the company had $ 9,009,168 in total current liabilities , which included $ 1,891,525 in account payables and other accruals , and $ 6,865,821 in customers ' deposits .
```    
 Suspicious Activity Report : 42 overview we were incorporated in delaware under the name cardigant medical inc. on april 17 , 2009. our initial business plan was to focus on the development of novel biologic and peptide based compounds and enhanced methods for local delivery for the treatment of vascular disease including peripheral artery disease and ischemic stroke . pursuant to the stock purchase agreement dated as of july 31 , 2014 , yong li , an individual purchased a total of 22,185,230 restricted shares of common stock of the company from a group of three former stockholders of the company . in consideration for the shares , mr. li paid the sellers $ 399,344 in cash which came from his own capital . the sellers were jerett a. creed , the company 's former chief executive officer , chief financial officer , director and formerly a controlling stockholder of the company , the creed family limited partnership and ralph sinibaldi . the shares represented approximately 95 % of the company 's then issued and outstanding common stock . the sale was consummated on august 28 , 2014. as a result of the transaction , there was a change in control of the company . on august 27 , 2014 , we entered into a contribution agreement with cardigant neurovascular . pursuant to the contribution agreement , we assigned all our assets , properties , rights , title and interest used or held for use by our business , ( except for certain excluded assets set forth therein ) which was the treatment of atherosclerosis and plaque stabilization in both the coronary and peripheral vasculature using systemic and local delivery of large molecule therapeutics and peptide mimetics based on high density lipoprotein targets ( “ cardigant business ” ) . in consideration for such contribution of capital , cardigant neurovascular agreed to assume all our liabilities raising from the business prior to the date of the contribution agreement and thereafter with regard to certain contributed contacts . we granted cardigant neurovascular an exclusive option for a period of 6 months to purchase the excluded assets for $ 1. cardigant neurovascular exercised this option october 20 , 2014 and the excluded assets were assigned to cardigant neurovascular on october 20 , 2014. also on october 20 , 2014 , we acquired the business of hongkong takung assets and equity of artworks exchange co. , ltd ( “ hong kong takung ” ) through the acquisition of all the share capital of hong kong takung under a share exchange agreement dated september 23 , 2014 in exchange for 209,976,000 ( pre-reverse stock split ) newly-issued restricted shares of our common stock to the shareholders of hong kong takung ( the “ reverse merger ” ) . hong kong takung is a limited liability company incorporated on september 17 , 2012 under the laws of hong kong , special administrative region , china . although takung was incorporated in 2012 , it did not commence business operations until late 2013. as a result of the transfer of the excluded assets pursuant to the contribution agreement and the acquisition of all the issued and outstanding shares of hong kong takung , we are no longer conducting the cardigant business and have now assumed hong kong takung 's business operations as it now our only operating wholly-owned subsidiary . hong kong takung operates an electronic online platform located at http : //eng.takungae.com for artists , art dealers and art investors to offer and trade in valuable artwork . through hong kong takung , we offer on-line listing and trading services that allow artists/art dealers/owners to access a much bigger art trading market where they can engage with a wide range of investors that they might not encounter without our platform . our platform also makes investment in high-end and expensive artwork more accessible to ordinary people without substantial financial resources . on november 5 , 2014 , we filed a certificate of amendment to our certificate of incorporation with the secretary of state of the state of delaware to change our name from “ cardigant medical inc. ” to “ takung art co. , ltd. ” 43 we generate revenue from our services in connection with the offering and trading of artwork ownership units on our system , primarily consisting of listing fees , trading commissions , and management fees . we conduct our business primarily in hong kong , special administrative region , people 's republic of china . our principal executive offices are located at flat/rm 03-04 , 20/f , hutchison house , 10 harcourt road , central hong kong . on july 28 , 2015 , hong kong takung incorporated a wholly owned subsidiary , takung ( shanghai ) co. , ltd. ( “ shanghai takung ” ) , in shanghai free-trade zone ( sftz ) in shanghai , china , with a registered capital of $ 1 million . shanghai takung assists in hong kong takung 's operations by receiving deposits from and making payments to online artwork traders in mainland china on behalf of hong kong takung . on january 27 , 2016 , hong kong takung incorporated a wholly owned subsidiary , takung cultural development ( tianjin ) co. , ltd ( “ tianjin takung ” ) in the tianjin free trade zone ( tjftz ) in tianjin , china with a registered capital of $ 1 million . tianjin takung provides technology development services to hong kong takung and shanghai takung , and also carries out marketing and promotion activities in mainland china . results of operation of takung hong kong takung operates a platform for offering and trading artwork . we generate revenue from our services in connection with the offering and trading of artwork ownership units on our system , primarily consisting of listing fees , trading commissions , and management fees . story_separator_special_tag an additional discount program was offered to vip traders when their trading volumes of certain artworks reach an agreed level each month , a contractually determined flat rate of trading commission was applied to the transactions of these certain artworks . any trading commission charges incurred by the vip traders over the flat rate would be waived and deducted from the commission revenue . from april 9 , 2015 to june 8 , 2015 , we waived all management fees and trading commissions on the buy side as a promotion and this resulted in a decrease in our commission revenue . commission revenues are $ 6,145,261 and $ 2,832,158 ( net of applicable rebates and discounts ) for the years ended december 31 , 2015 and 2014 , respectively . management fee -the company charges management fees for covering the insurance , storage , and transportation for an artwork and trading management of artwork units , which are calculated at $ 0.0013 ( hk $ 0.01 ) per 100 artwork ownership units per day . the management fee is accounted for as revenue , and immediately deducted from the proceeds from the sales of artwork ownership units when a transaction is completed . a discount program is offered to waive the management fee during certain promotion periods . such discount is recognized as a reduction of the revenue in the same period the related revenue is recognized . management fee revenues were $ 115,542 and $ 113,243 for the years ended december 31 , 2015 and 2014 , respectively . annual fee income -the company charges an annual fee for providing traders and offering agents with premium services , including more in-depth information and tools , on the trading platform . this revenue is recognized ratably over the service agreement period . authorized agent subscription revenue - we charge an authorized agent subscription fee which is an annual service fee paid by authorized agents to grant them the right to bring their network of artwork owners to list their artwork on our trading platform . this revenue is recognized ratably over the annual agreement period income taxes the company accounts for income taxes using an asset and liability approach which allows for the recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years . under the asset and liability approach , deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes . a valuation allowance is provided for deferred tax assets if it is more likely than not that these items will either expire before the company is able to realize their benefits , or that future deductibility is uncertain . 50 under asc 740 , a tax position is recognized as a benefit only if it is “ more likely than not ” that the tax position would be sustained in a tax examination , with a tax examination being presumed to occur . the evaluation of a tax position is a two-step process . the first step is to determine whether it is more-likely-than-not that a tax position will be sustained upon examination , including the resolution of any related appeals or litigations based on the technical merits of that position . the second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements . a tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement . tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met . previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met . penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the year incurred . gaap also provides guidance on de-recognition , classification , interest and penalties , accounting in interim periods , disclosures and transition . earnings per share of common stock the company reports earnings ( loss ) per share in accordance with asc topic 260-10 `` earnings per share . `` basic earnings ( loss ) per share are computed by dividing income ( loss ) available to common shareholders by the weighted average number of common shares available . stock-based compensation the company accounts for stock-based compensation under asc topic 505-50. this standard defines a fair value-based method of accounting for stock-based compensation . the cost of stock-based compensation is measured at the grant date based on the value of the award , and is recognized over the period in which the company expects to receive the benefit , which is generally the vesting period . as of december 31 , 2015 , there were no options or warrants outstanding . recent accounting pronouncements income statement-extraordinary and unusual items : in january 2015 , the financial accounting standards board ( fasb ) issued accounting standards update no . 2015-01 about income statement-extraordinary and unusual items ( subtopic 225-20 ) . asu 2015-01 addresses the elimination from u.s. gaap the concept of extraordinary items . presently , an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item . if an event or transaction meets the criteria for extraordinary classification , an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement , net of tax , after income from continuing operations . this amended guidance will prohibit separate disclosure of extraordinary items in the income statement .

