ALCO, INC.

CIK:0000734543|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues
Commission income	$ 1,111,502	$ 1,211,025	$ 2,188,903	$ 2,442,298
Consulting income	10,683	6,006	23,782	14,384
Enrollment fee income	(4,409)	274	4,648	2,483
Total Revenues	1,117,776	1,217,305	2,217,333	2,459,165
Operating Expenses
Salaries	786,475	860,980	1,714,807	1,787,776
Travel expenses	96,505	98,313	181,190	177,986
Rents	191,904	187,438	384,016	359,008
Bad debt expenses (recovery)	10,002	(18,237)	(1,246)	(4,616)
Depreciation and amortization	49,726	43,453	103,174	84,362
Other general and administrative	259,690	257,944	448,741	454,266
Total Operating Expenses	1,394,302	1,429,891	2,830,682	2,858,782
Loss from Operations	(276,526)	(212,586)	(613,349)	(399,617)
Other Income (Expense)
Interest income	599	945	1,203	1,723
Investment income	4,368	4,086	13,210	12,071
Interest expense	(697)	(484)	(1,439)	(771)
Other income	33,390	67,202	45,988	95,885
Total Other Income	37,660	71,749	58,962	108,908
Loss Before Provision for Income Taxes	(238,866)	(140,837)	(554,387)	(290,709)
Provision for Income Taxes	16,993	21,660	25,146	31,467
Net Loss	(255,859)	(162,497)	(579,533)	(322,176)
Less: Net income attributable to the non-controlling interest	(36,188)	(42,209)	(45,828)	(56,672)
Net Loss Attributable to ALCO, Inc.	(292,047)	(204,706)	(625,361)	(378,848)
Comprehensive Income (Loss):
Net loss	(255,859)	(162,497)	(579,533)	(322,176)
Other Comprehensive Income (Loss)
Marketable securities	(6,153)	18,496	(79,837)	(19,363)
Foreign currency translation adjustments	4,769	22,572	59,555	(22,972)
Comprehensive Loss	(257,243)	(121,429)	(599,815)	(364,511)
Less: comprehensive income attributable to non-controlling interest	(37,524)	(46,302)	(56,953)	(52,680)
Comprehensive Loss Attributable to ALCO. Inc.	$ (294,767)	$ (167,731)	$ (656,768)	$ (417,191)
Basic and Fully Diluted Earnings per Share
Net loss attributable to ALCO, Inc. common shareholders	$ (0.03)	$ (0.02)	$ (0.06)	$ (0.04)
Weighted Average Shares Outstanding	10,361,500	10,336,000	10,361,500	10,336,000

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Operating Activities
Net loss	$ (579,533)	$ (322,176)
Adjustments to reconcile net loss to net cash used in operating activities:
Bad debt recovery	(1,246)	(4,616)
Depreciation expense	103,174	78,763
Amortization expense		5,599
Stock-based compensation	3,443	3,093
Stock dividend received	(13,210)	(12,071)
Changes in operating assets and liabilities:
(Increase)/Decrease in commission receivable	(36,059)	21,038
Decrease in enrolment fee receivable	2,099	8,269
(Increase)/Decrease in deposit and prepayment	27,098	(22,473)
(Increase)/Decrease in fiduciary asset	(1,650,652)	181,426
Decrease in other receivable	50,274	2,900
Decrease in tax receivable	16,541	35,474
Increase/(Decrease) in accounts payable	1,582,622	(283,430)
Increase in claims payable	80,537	2,185
Increase in other payable	17,676	17,622
Decrease in accrued expenses	(125,605)	(106,110)
Net cash used in operating activities	(522,841)	(394,507)
Investing Activities
Short-term investment		(257)
Loan repayment from third parties	1,179,990
Cash paid for purchase of fixed assets	(102,374)	(178,885)
Net cash provided by (used in) investing activities	1,077,616	(179,142)
Financing Activities
Dividend paid to minority shareholders	(121,538)	(130,769)
Repayment of obligations under long-term loans	(9,551)	(4,713)
Borrowings on related party debt	2,950	5,854
Principal payments on related party debt	(3,555)	(4,992)
Net cash used in financing activities	(131,694)	(134,620)
Net increase/(decrease) in cash and cash equivalents	423,081	(708,269)
Effect of exchange rate changes on cash and cash equivalents	18,976	48,751
Cash and cash equivalent at beginning of period	2,994,776	4,048,846
Cash and cash equivalent at end of period	3,436,833	3,389,328
Supplemental Disclosures of Cash Flow Information:
Interest paid	1,439	771
Income taxes paid		3,717
Non-Cash Transactions
Dividend received	8,885	8,024
Acquisition of assets by long-term loans		(60,000)
Change in fair value for available-for-sales securities	$ (79,837)	$ (19,363)

CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Current Assets:
Cash and cash equivalents	$ 3,436,833	$ 2,994,776
Short-term investment	104,033	98,931
Commissions receivable, net	513,987	451,252
Enrollment fee receivable	1,132	3,231
Fiduciary asset	3,069,416	1,389,854
Loan receivable	232,010	1,412,000
Total Current Assets	7,357,411	6,350,044
Property, plant and equipment, net	4,080,594	4,075,442
Goodwill	72,633	69,071
Other Non-Current Assets:
Deposits and prepayment	249,675	274,818
Marketable securities	266,896	337,847
Other receivable	48,073	94,023
Total Other Non-current Assets	564,644	706,688
Total Assets	12,075,282	11,201,245
Current Liabilities:
Trade accounts payable	2,979,532	1,370,074
Claim payable	114,114	33,577
Other payable	242,112	225,826
Accrued expenses	21,328	146,079
Tax payable	46,505	28,461
Due to directors	1,081	1,687
Long-term loans, current	19,978	18,932
Total Current Liabilities	3,424,650	1,824,636
Non-current Liabilities
Long-term loans, non-current	41,791	49,858
Total Non-current Liabilities	41,791	49,858
Total Liabilities	3,466,441	1,874,494
COMMITMENTS AND CONTINGENCIES
ALCO, Inc. Shareholders' Equity:
Preferred stock, par value $0.01, 5,000,000 shares authorized; no shares issued and outstanding
Common stock, par value $0.001, 50,000,000 shares authorized; 10,361,500 shares issued and outstanding at June 30, 2016 and December 31, 2015	10,362	10,362
Additional paid-in capital	358,415	354,972
Accumulated other comprehensive loss	(101,926)	(70,519)
Retained earnings	8,099,271	8,724,632
Total ALCO, Inc. Shareholders' Equity	8,366,122	9,019,447
Non-controlling interest	242,719	307,304
Total Stockholder's Equity	8,608,841	9,326,751
Total Liabilities and Equity	$ 12,075,282	$ 11,201,245