UNEARNED INCOME

3 Months Ended

Mar. 31, 2015

Deferred Revenue Disclosure [Abstract]

Deferred Revenue Disclosure [Text Block]

13.

UNEARNED INCOME

	March 31, 2015		December 31, 2014
	(Unaudited)
Current portion	$	511,289	$	802,148
Long-term portion		2,724,279		2,484,025

Total	$	3,235,568	$	3,286,173

The balances of unearned income as of March 31, 2015 and December 31, 2014 represented prepayments made by the customers for prepaying massages service and “Health Recuperation” service. Service revenue is recognized proportionally when services are provided to customers, reducing the unearned income balance. There is no expiration date for the prepayment, and the period in which revenue will be realized is uncertain. Income from deliveries of services of $511,289 and $802,148 was expected to be earned in twelve months as of March 31, 2015 and December 31, 2014, respectively. The estimation was made based on the Company’s revenue projection according to both existing clubs’ historical experience and the plan for the opening of new clubs. During the three months ended March 31, 2015 and 2014, customers’ consumption of unearned income of $97,312 and $349,713 was recognized as revenue, respectively. The prepayment is not refundable once made by the customers.

Comjoyful International Co 10-Q