UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~June~~September 30, 2017

o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______to______.

Commission File Number: 021-165129

SAN LOTUS HOLDING INC.

(Exact name of registrant as specified in its charter)

California	45-2960145
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)
2387 S HACIENDA BLVD HACIENDA HEIGHTS CA 91745
(Address of principal executive office and zip code)
626-961-6522 (phone)
(Registrant's telephone number, including area code)

Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

(2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No o

Indicate by checkmark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer", ~~and~~ "smaller reporting company," and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated filer o Accelerated filer o Non-accelerated filer o Smaller reporting company o Emerging growth company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yeso Nox

 As of November 14, 2017, 39,725,558 shares of the registrant's common stock, $1 par value, were outstanding.

As of June 30, 2017, 39,725,558shares of the Registrant's common stock, $1 par value, were outstanding.

SAN LOTUS HOLDING INC.

FORM 10-Q

For the quarter ended ~~June~~September 30, 2017

TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION
Item 1.		Financial Statements.
		Condensed Consolidated Balance Sheets as of June 30, 2017 (Unaudited) and December 31, 2016 (Audited)
		Consolidated Balance Sheets as of September 30, 2017 and December 31, 2016 (Unaudited)
		Condensed Consolidated Statements of Income and Comprehensive Income for the six months ended June 30, 2017 and 2016 (Unaudited)
		Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and nine months ended September 30, 2017 and 2016 (Unaudited)
		Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2017 and 2016 (Unaudited)
		Consolidated Statements of Cash Flows for the nine months ended September 30, 2017 and 2016 (Unaudited)
		Notes to Unaudited Consolidated Financial Statements.
		Notes to Unaudited Consolidated Financial Statements
Item 2.		Management's Discussion and Analysis of Financial Condition and Results of Operations.
Item 3		Quantitative and Qualitative Disclosures About Market Risk.
Item 3.		Quantitative and Qualitative Disclosures About Market Risk.
Item 4		Controls and Procedures.
Item 4.		Controls and Procedures.
PART II - OTHER INFORMATION
Item 1.		Legal Proceedings.
Item 1A.		Risk Factors.
Item 2.		Unregistered Sales of Equity Securities and Use of Proceeds.
Item 3.		Defaults Upon Senior Securities.
Item 4.		Mine Safety Disclosures.
Item 5.		Other Information.
Item 6.		Exhibits.

CAUTIONARY NOTE ON FORWARD LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (this "Report") contains "forward-looking statements." Forward-looking statements discuss matters that are not historical facts. Because they discuss future events or conditions, forward-looking statements may include words such as "anticipate," "believe," "estimate," "intend," "could," "should," "would," "may," "seek," "plan," "might," "will," "expect," "predict," "project," "forecast," "potential," "continue," negatives thereof or similar expressions. Forward-looking statements speak only as of the date they are made, are based on various underlying assumptions and current expectations about the future and are not guarantees. Such statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, level of activity, performance or achievement to be materially different from the results of operations or plans expressed or implied by such forward-looking statements. We cannot predict all of the risks and uncertainties. Accordingly, such information should not be regarded as representations that the results or conditions described in such statements or that our objectives and plans will be achieved and we do not assume any responsibility for the accuracy or completeness of any of these forward-looking statements. Except to the extent required by law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, a change in events, conditions, circumstances or assumptions underlying such statements, or otherwise. Readers are urged to carefully review and consider the various disclosures made throughout the entirety of this Report.

SAN LOTUS HOLDING INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

SAN LOTUS HOLDING INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)

	September 30, 2017	December 31, 2016
ASSETS
Current assets
Cash and cash equivalents	$ 241,548	$ 7,805,660
Accounts receivable	8,262	-
Prepaid expense and other current assets	95,736	127,379
Due from related parties	184,216	189,546
Other current assets	128,413	-
Total Current Assets	658,175	8,122,585
Long-term receivable	8,688,955	8,148,290
Property and equipment, net	6,705,336	5,956,385
Intangible assets	158,459	-
Deferred tax asset	43,041	-
Other assets	16,493	7,844
Total Assets	$ 16,270,459	$ 22,235,104

LIABILITIES AND EQUITY
Current liabilities
Accounts payable and accrued liabilities	$ 77,453	$ 4,901
Accounts payable and accrued liabilities - related party	100,345	33,160
Due to related party	101,010	7,023
Other current liabilities	179,028	-
Total Liabilities	457,836	45,084

Stockholders' Equity
Common stock; $1 par value; 150,000,000 shares authorized; 42,003,333 issued and 39,725,558 outstanding	42,003,333	42,003,333
Additional paid-in capital	24,000	24,000
Treasury stock; 2,277,775 shares	-2,277,775	-2,277,775
Accumulated deficit	-23,771,094	-16,482,355
Accumulated other comprehensive loss	-47,278	-1,088,183
Total San Lotus Holding Inc. stockholders' equity	15,931,186	22,179,020
Noncontrolling interest	-118,563	-
Total Equity	15,812,623	22,179,020
Total Liabilities and Equity	$ 16,270,459	$ 22,224,104

	June 30, 2017	December 31, 2016
	(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents	347,245	7,805,660
Accounts receivable	25,784	0
Prepaid expense and other current assets	368,582	149,925
Current assets held for divesture	0	0
Total Current Assets	741,611	7,955,585
Due from related parties	156,822	156,000
Property and equipment, net	6,761,913	5,956,385
Goodwill	157,283	0
Long term receivable	8,661,613	8,148,290
Other assets	67,372	7,844
Total Assets	16,546,614	22,224,104
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and Accrued liabilities	434,418	38,061
Due to related party	0	7,023
Current liabilities held for divesture	0	0
Total Current Liabilities	434,418	45,084
Stockholders' Equity
Common stock, shares issued	42,003,333	42,003,333
Additional paid-in capital	24,000	24,000
Treasury Stock	(2,277,775)	(2,277,775)
Common stock, outstanding	39,749,558	39,749,558
Accumulated deficit	(23,405,966)	(16,482,355)
Accumulated other comprehensive loss	(112,833)	(1,088,183)
Total San Lotus Holding Inc. stockholders' equity	16,230,759	22,179,020
Non-controlling interest	(118,563)	0
Total Equity	16,112,196	22,179,020
Total Liabilities and Equity	16,546,614	22,224,104
Stockholders' Equity
Common stock, shares authorized	150,000,000	150,000,000
Common stock, par value	1.00	1.00
Treasury Stock, shares	(2,277,775)	(2,277,775)
Common stock, outstanding shares	39,725,558	39,725,558

The accompanying notes are an integral part of these consolidated financial statements.

SAN LOTUS HOLDING INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS FOR THE SIX MONTHS ENDED JUNE 30, 2017 AND 2016 (UNAUDITED)

SAN LOTUS HOLDING INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2017 AND 2016
(Unaudited)

	2017	2016
		(Restated)
Revenue - insurance commissions	$ 17,594	$ -
General and administrative expenses	378,123	46,930
Impairment loss	2,156	-
Loss from operations	-362,685	-46,930

Other income (expense), net	-2,730	-362

Net loss from continuing operations	-365,415	-47,292
Net income from discontinued operations	-	-35,917
Net loss	-365,415	-83,209
Net loss attributable to noncontrolling interest	287	-
Net loss attributable to San Lotus Holdings Inc.	$ (365,128)	$ (83,209)

Comprehensive loss:
Net loss	$ (365,415)	$ (83,209)
Foreign currency exchange translation gain	65,555	472,985
Total comprehensive loss	$ (299,860)	$ 389,776

Loss per common share -basic and diluted	$ (0.01)	$ (0.00)
Weighted average common shares outstanding - basic and diluted	39,725,558	39,725,558

The accompanying notes are an integral part of these consolidated financial statements.

SAN LOTUS HOLDING INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2017 AND 2016
(Unaudited)
	2017	2016
	(Unaudited)	(restated)
		(Restated)
Revenue - insurance commission	15,196	0
Revenue - insurance commissions	$ 32,790	$ -
Cost of sales	0	0
General and administrative expenses	1,297,309	169,786
Gross profit	15,196	0
Impairment loss	6,017,900	-
General and administrative expenses	919,186	122,856
Loss from operations	-7,282,419	-169,786
Profit (Loss) from Operations	(903,990)	(122,856)
Other income (expense), net	-6,988	9,427
Other income (expenses)
Net loss from continuing operations	-7,289,407	-160,359
Interest income	0	3
Net income from discontinued operations	-	12,581
Other Income (Loss)	(3,347)	9,786
Net loss	-7,289,407	-147,778
Impairment loss	(6,015,744)	0
Net loss attributable to noncontrolling interest	668	-
Foreign exchange loss	(911)	0
Net loss attributable to San Lotus Holdings Inc.	$ (7,288,739)	$ (147,778)
Total other income (expense)	(6,020,002)	9,789
Comprehensive loss:
Loss before income taxes	(6,923,992)	(113,067)
Net loss	$ (7,289,407)	$ (147,778)
Income taxes expense	0	0
Foreign currency exchange translation gain	1,040,905	1,254,871
Net Income (Loss)	(6,923,992)	(113,067)
Total comprehensive income (loss)	$ (6,248,502)	$ 1,107,093
Loss attributable to non-controlling interest	(381)	0
Loss per common share -basic and diluted	$ (0.18)	$ (0.00)
Consolidated net Income	(6,923,611)	(113,067)
Weighted average common shares outstanding - basic and diluted	39,725,558	39,725,558
Loss from continuing operations	(6,923,611)	(113,067)
The accompanying notes are an integral part of these consolidated financial statements.
Income from discontinued operations	0	48,498
Net income (loss) for the year	(6,923,611)	(64,569)
Net Loss Per Share
Basic and Diluted	(0.17)	0.00
Weighted Average Shares Outstanding:
Basic and Diluted	39,725,558	39,725,558
Net Loss	(6,923,611)	(64,569)
Foreign exchange translation	975,350	781,886
Total comprehensive loss	(5,948,261)	717,317

The accompanying notes are an integral part of these consolidated financial statements.

SAN LOTUS HOLDING INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2017 AND 2016
(Unaudited)

	2017	2016
		(Restated)
Cash Flows from Operating Activities
Net loss	$ (7,289,407)	$ (147,778)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation	33,843	39,697
Impairment loss	6,017,900	-
Gain on sale of assets	-	-9,786
Changes in operating assets and liabilities:
Accounts receivable	-2,548	824
Prepaid and other current assets	-125,055	-68,742
Other assets	-1,573	-1,170
Accounts payable	8,527	226,779
Accounts payable - related party	67,185	-
Other current liabilities	-512,415	-
Net cash provided by (used in) operating activities - continuing operations	-1,803,543	39,824
Net cash provided by operating activities - discontinued operations	-	2,419
Net cash provided by (used in) operating activities - total	-1,803,543	42,243

Cash Flows from Investing Activities
Cash acquired from AHI Film, net of cash paid of $1	111,701	-
Cash acquired from AHI Record, net of cash paid of $1	1,972	-
Cash acquired from San Lotus (BVI), net of cash paid of $1	99	-
Consideration paid to acquire Da Ren Insurance Broker, net of cash acquired of $46,848	-298,138	-
Advance to AHI Film	-	-812,758
Collection of long-term receivable	-	929,013
Purchase of property and equipment	-356,582	-40,288
Proceeds from sale of equipment	-	44,000
Net cash provided by (used in) investing activities	-540,948	119,967

Cash Flows from Financing Activities
Advances to related parties	-5,300,088	-130,362
Prepayment for purchase of treasury stock	-39,313	-
Net cash used in financing activities	-5,339,401	-130,362

Effect of exchange rate changes on cash and cash equivalents	119,780	13,895

Net decrease in cash and cash equivalents	-7,564,112	45,743
Cash and cash equivalents, beginning of the period	7,805,660	7,681
Cash and cash equivalents, ending of the period	$ 241,548	$ 53,424
Supplemental disclosure of cash flow information
Cash paid during the period for:
Interest expense	$ -	$ -
Income taxes	$ -	$ -

The accompanying notes are an integral part of these consolidated financial statements.

SAN LOTUS HOLDING INC. AND SUBSIDIARIES ~~CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW FOR THE SIX MONTHS ENDED JUNE 30, 2017 AND 2016 (UNAUDITED)~~

	2017	2016
	(Unaudited)	(restated)
Cash Flows from Operating Activities
Net income (loss)	(6,923,611)	(64,569)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	11,971	36,016
Impairment Loss	6,015,744	0
Changes in operating assets and liabilities:
Prepaid and other current assets	(45,751)	1,585
Assets held for divesture	0	(110,041)
Accounts payable	(5,856,024)	(53,478)
Due to related party	(7,023)	0
Liabilities held for divesture	0	143,539
Other assets	(25,166)	0
Net cash used in operating activities	(6,829,860)	(46,948)
Cash Flows from Investing Activities
Acquisition of AHI Film	111,702	0
Acquisition of AHI Record	1,973	0
Acquisition of San Lotus (BVI)	100	0
Acquisition of Da Ren Insurance Broker	(298,138)	0
Purchase of property and equipment	(377,748)	0
Net cash provided by (used in) investing activities	(562,111)	0
Cash Flows from Financing Activities
	0	0
Effect of exchange rate changes on cash and cash equivalents	(66,444)	44,362
Net increase (decrease) in cash and cash equivalents	(7,458,415)	(2,586)
Cash and cash equivalents, beginning of the year	7,805,660	7,681
Cash and cash equivalents, ending of the year	347,245	5,095
Supplemental disclosure of cash flow information
Cash paid during the period for:
Interest expense	0	0
Income tax	0	0
Supplemental disclosure of noncash financing activities
Issuance of note payable to acquire land	0	0
Issuance of Common stock in settlement of note payable	0	0
Issuance of note payable to acquire receivables	0	0
Issuance of common stock in settlement of note payable	0	0

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The accompanying notes are an integral part of these consolidated financial statements.

SANLOTUSHOLDINGINC.

NOTESTO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1. NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES

Nature of Operations

San Lotus Holding Inc. (the “Company” or “San Lotus”), was incorporated on June 21, 2011 in the State of Nevada and changed our state of incorporation from the State of Nevada to the State of California ~~(the "Conversion")~~ on July 21, 2015. Since its incorporation, the Company has focused on business-related travel services and real estate development. The Company’s principal ~~address of~~ business isactivities inare in Taiwan.

~~The~~In ~~Company~~2015, ~~acquired~~through ~~several parcels of undeveloped land and is holding these parcels of land for future development of destination real estate. Through~~ the acquisition of Mao Ren International Inc. ~~(“Mao Ren”) in fiscal 2015~~, the Company acquired ~~the~~ liquidation rights to certain properties collateralized by a Taiwanese company. ~~The~~ ~~Company~~See isNote being compensated by the creditors of this Taiwanese company to use the proceeds from the sale of the collateralized land to re-invest or develop the collateralized land to construct and then re-sell the real estate4.

In ~~fiscal~~ 2015 and part of ~~fiscal~~ 2016, the Company, through the ~~acquisition~~ acquisition of XO Experience Inc. ~~(“XO”)~~ from the former Chairman of the Company, was engaged in in the provision of travel services, including hotel reservation services, ~~airline~~ airline ticketing, and travel ~~package~~packages in the United States. In December 2016, ~~the~~ the Company decided to dissolve XO Experience Inc.

~~The~~On ~~Company~~January ~~have~~1, ~~begun~~2017, tothrough ~~acquire~~ the ~~ancillary~~acquisitions ~~assets~~of ~~and~~AHI ~~know-how to~~Film ~~augment~~Inc. ~~the~~and ~~two~~AHI ~~main~~Records ~~segments~~Inc., tothe ~~our~~Company ~~main~~acquired ~~businesses.~~certain ~~These~~ ancillary assets ~~and~~ and know-how ~~include as follows~~including: (1) intellectual property rights on media assets and media production capabilities and (2) proprietary research knowledge on tourism development in Japan ~~and holding structure~~ for future overseas development. ~~These~~The ~~intellectual property rights on~~ media assets, ~~and~~held ~~media~~by ~~production capabilities were acquired as a result of the significant transaction to purchase~~ AHI Film Inc., ~~and~~ AHI Records Inc. ~~on August 31, 2016.These transactions were closed on January 1, 2017. The said media assets, which are held under these two companies~~ and their subsidiaries, include, ~~but are not limited to,~~ a feature motion picture; professional-grade photographs; professional-grade video ~~footages~~ footage; two completed music albums; and one semi-completed music album as well as other miscellaneous items. Through ~~these~~ the acquisitions of AHI Film Inc. and AHI Records, Inc., key personnel have been retained to ensure that crucial ~~functions~~ functions to media production are kept in house for future development. ~~The~~ Companyhave concluded that these transactions were asset acquisitions. Separately, due to significant projected capital investments into Japan, the substantial efforts, in both time and resources, are devoted to develop and acquire the knowledge on the Japanese economy as a whole. Through the significant transaction on August 31, 2016 closed on January 1, 2017 to purchase San Lotus Holding Inc. registered in British Virgin Islands (the “San Lotus Holding Inc. (BVI)”), the Company have acquired proprietary research knowledge on tourism development in Japan. The said proprietary knowledge includes, but is not limited to, historical research; economic statistics report; geographic analysis; real estate investment analysis; and most notably tourism specific research with particular focus on destination real estate development. Additionally, San Lotus Holding Inc. (BVI) will be used as a holding structure for future overseas development.

~~The acquisition~~On ofJanuary Da1, ~~Ren~~2017, ~~International~~through ~~Insurance~~the ~~Brokers~~acquisition ~~Co.~~of ~~Ltd~~San Lotus Holding Inc. (BVI) and in anticipation of the ~~“Da~~Company’s ~~Ren~~planned investments in ~~Insurance”)~~Japan, ~~closed~~the Company acquired proprietary research knowledge on ~~April~~tourism development 1,in ~~2017~~Japan. The ~~Company~~proprietary ~~will continue~~knowledge toincludes ~~develop~~historical inresearch; economic ~~the~~statistics ~~insurance~~report; ~~brokerage~~geographic ~~market.~~analysis; ~~The~~real ~~Company~~estate ~~determined~~investment ~~that~~analysis; ~~the~~and ~~acquisition~~most ofnotably Datourism ~~Ren~~specific ~~Insurance~~research ~~will~~with be a ~~business~~particular ~~acquisition~~focus ~~upon~~on ~~closing~~destination ofreal ~~the~~estate ~~transaction~~development.

~~The~~On April 1, 2017, the Company ~~has~~acquired ~~not~~Da ~~conducted~~Ren International ~~business~~Insurance ~~operations~~Brokers ~~nor~~Co. ~~had~~Ltd. ~~significant~~in anticipation ~~revenues~~of ~~from~~its ~~operations~~future ~~since~~develpement ~~its~~in ~~inception.~~the insurance brokerage market.

The Company’s year-end is December 31.

These unaudited financial statements are those of the Company and its wholly owned subsidiaries. In the opinion of management, the accompanying Consolidated Financial Statements of the Company, contain all adjustments, consisting only of normal recurring adjustments, necessary to fairly state its financial position as of June 30, 2017 and December 31, 2016 and its results of operations and cash flows for the six month periods ended June 30, 2017 and June 30, 2016 in accordance with generally accepted accounting principles of the United States of America (“U.S. GAAP”). Operating results for the six-month period ended June 30, 2017 are not necessarily indicative of the results that may be experienced for the fiscal year ending December 31, 2017.

Basis of Presentation and Measurement

These unaudited ~~condensed~~ consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with ~~the~~ the instructions to Form 10-Q and Article 8 of Regulation S-X under the Securities Exchange Act of 1934, as amended. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. These unaudited ~~condensed~~ consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2016 as filed in our Annual Report on Form 10-K on May 12, 2017. In the opinion of the Company’s management, these financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary to present fairly the Company’s financial position at ~~June~~September 30, ~~2017~~ 2017 and the results of its operations for the ~~six~~nine months then ended. Operating results for the ~~six~~nine months ended ~~June~~ September 30, 2017 are ~~not~~ not necessarily indicative of the results that may be expected for the year ~~ending~~ ending December 31, 2017. The 2016 year-end balance sheet data was derived from audited financial statements but does not include all disclosures required by U.S. GAAP.

The preparation of financial statements in conformity with U.S. GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the period. These judgments, estimates and assumptions are continuously evaluated and are based on management’s experience and knowledge of the relevant facts and circumstances. While management believes the estimates to be reasonable, actual results could differ from those estimates and could impact future results of operations and cash flows.

On August 7, 2017, the Board approved these condensed consolidated interim financial statements.

Consolidation Policy

The consolidated financial statements of the Company include the accounts of San Lotus Holding, Inc. and its subsidiaries, ~~Green Forest~~ ~~Management Consulting Inc. (“Green Forest”), Da Ren International Development Inc. (“Da Ren”), Mao Ren International Inc. and XO Experience Inc.~~ Intercompany accounts and transactions have been eliminated ~~uponconsolidation~~upon consolidation. The following companies have been consolidated as at ~~June~~ September 30, 2017 ~~and December 31, 2016~~:

~~Consolidated~~Company ~~companies~~name Registered Purpose of entity Green Forest Management Consulting Inc. (“Green Forest”) Taiwan Land holding company Da Ren International Development Inc. (“Da Ren”) Taiwan Land holding company Mao Ren International Inc. (“Mao Ren”) Taiwan Liquidation rights to collateralized land Da Ren International Insurance Brokers Co. Ltd. (“Da Ren Insurance”) Taiwan Insurance broker AHI Film Inc. U.S.A. Media production company AHI Record Inc. (“AHI Record”) U.S.A. Music production company San Lotus Holding Inc. (BVI) (“San Lotus BVI”) British Virgin Islands Overseas holding company XO Experience Inc. (“XO”) U.S.A. Travel services

~~Company~~All ~~name Registered Purpose~~ of ~~entity~~the ~~Green~~subsidiares ~~Forest~~listed ~~Taiwan~~above ~~Land~~are ~~holding~~wholly ~~company~~owned Daby the ~~Ren~~Company. ~~Taiwan~~AHI ~~Land~~Film ~~holding~~Inc. ~~company~~has ~~Mao~~two ~~Ren~~wholly ~~Taiwan~~owned ~~Liquidation~~subsidiaries, ~~rights~~City toFor ~~collateralized~~Rent ~~land~~LLC ~~XO U~~.~~S.A.~~ ~~Travel~~and ~~services~~ AHI ~~Film~~Post UProduction Inc.~~S.A.~~, ~~Media~~and ~~production~~one ~~company~~subsidiary, ~~AHI~~Animedia TV ~~Record U~~Inc.~~S.A.~~, ~~Music~~of ~~production~~which ~~company~~AHI ~~San~~Film ~~Lotus~~Inc. ~~(BVI)~~owns ~~British~~82.78% ~~Virgin~~of ~~Islands~~the ~~Overseas~~outstanding ~~holding company Da Ren International Insurance Brokers* Taiwan Insurance Brokers~~shares.

* Da Ren International Insurance Brokers became a subsidiary of the Company on April 1, 2017.

Going Concern

The accompanying consolidated financial statements were prepared on a going concern basis, which assumes the realization of assets and discharge of liabilities in the normal course of business. As shown in the ~~accompanying~~ accompanying consolidated financial statements, the Company had an accumulated deficit of $23,~~405~~771,~~966~~094 as of ~~June~~September 30, 2017.

The Company faces all the risks common to companies at the ~~development~~ early stage, including capitalization and uncertainty of funding sources, ~~high~~ high initial expenditure levels, uncertain revenue streams and difficulties in managing growth. The Company's losses raise substantial doubt about its ability to continue as a going concern. The Company is currently addressing its liquidity issue by continually seeking investment capital through private placements of common stock and debt. Through the collection of its long-term receivable (see Note 4), the Company expects to have cash receipts to fund its operations. The Company believes its current and future plans enable it to continue as a going concern. The Company's ability to achieve these objectives cannot be determined at this time. These consolidated financial statements do do not ~~reflect~~give effect to any adjustments ~~that~~which ~~might~~would ~~result~~be ~~from~~necessary should the ~~outcome~~Company be unable to continue as a going concern and therefore be required to realize its assets and discharge its liabilities other than the normal course of business ~~this~~and at amounts which may differ from those in the accompanying ~~uncertainty~~consolidated financial statements.

The Company is currently addressing its liquidity issue by continually seeking investment capital through private placements of common stock and debt. The Company’s expected cash receipts to fund its liabilities is through the realization of its long term receivable (note 5).The Company believes its current and future plans enable it to continue as a going concern. The Company's ability to achieve these objectives cannot be determined at this time. These consolidated financial statements do not give effect to any adjustments which would be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and discharge its liabilities other than the normal course of business and at amounts which may differ from those in the accompanying consolidated financial statements.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. These judgments, estimates and assumptions are continuously evaluated and are based on management’s experience and knowledge of the relevant facts and circumstances. While management believes the estimates to be reasonable, actual results could differ from those estimates and could impact future results of operations and cash flows. Significant estimates incorporated into the Company’s consolidated financial statements include the estimated recoverable amount of the long -term receivable, the estimated useful lives for depreciable and amortizable assets and litigation contingencies and claims. ~~Actual results could differ from those estimates.~~

~~Revenue~~Discontinued ~~recognition~~Operations

The Company’s ~~revenues~~follows ~~have~~the ~~been~~policy ~~principally~~of ~~derived~~segregating ~~from~~the ~~providing hotel~~assets ~~reservation, air ticketing, other travel~~ and ~~non-travel~~liabilities ~~services. During~~of ~~the~~subsidiaries ~~period~~or ~~ended~~lines ~~June~~of ~~30,~~business ~~2017,~~on ~~the~~its ~~Company~~balance ~~acquired~~sheet afrom ~~100%~~the ~~interest~~assets inand liabilities Daof ~~Ren Insurance. Da~~continuing ~~Ren~~subsidiaries ~~Insurance’~~or ~~source~~lines of ~~revenue~~business iswhen ~~from~~it ~~insurance~~has ~~commission. The~~decided ~~Company~~to ~~recognizes~~close ~~revenues~~or ~~when~~dispose ~~all~~ of ~~the~~a ~~following~~subsidiary ~~have~~or ~~occurred:~~line ~~persuasive evidence~~ of ~~arrangement~~business. ~~with~~The ~~the~~Company ~~customer,~~also follows ~~services~~the ~~have~~policy ~~been~~of ~~performed,~~separately ~~fees are~~disclosing ~~fixed~~the orassets ~~determinable~~ and ~~collectability~~liabilities ofand the net ~~fees~~operations isof ~~reasonably~~a ~~assured, as~~subsidiary ~~prescribed~~or byline ~~ASC~~of ~~605-10, Revenue~~business ~~Recognition,~~in ~~Overall.~~its ~~These~~financial statements ~~criteria~~when asit ~~related~~has decided to ~~revenues~~close ~~are~~or ~~considered~~dispose toof ~~have~~a ~~been~~subsidiary ~~met~~or asline ~~follows:~~of business.

~~Insurance commission: The~~Business Company recognizes commission revenues at the later of the billing or the effective date of the related insurance policies. The commission is based on a percentage basis in the contract and is determined by the insurance carrier in advance of the contractual period. The Company recognizes supplemental commission revenues using internal data and information received from insurance carriers that allows the Company to reasonably estimate the supplemental commissions earned in the period. A supplemental commission is a commission paid by an insurance carrier that is above the base commission paid, is determined by the insurance carrier, and is established periodically in advance of the contractual period based on historical performance criteria. Combinations

~~Packaged-tour:~~ The Company ~~receives~~accounts ~~referral~~for ~~fees~~business ~~from~~combinations ~~travel~~under ~~product providers for~~the ~~packaged~~acquisition ~~-tour~~method ~~products~~of ~~and~~accounting, ~~services~~which ~~through~~requires ~~its~~the ~~service~~Company ~~platform~~to ~~and~~record ~~branch~~assets ~~offices.~~acquired, ~~Referral~~liabilities ~~fees~~assumed ~~are~~and ~~recognized~~any asnon-controlling ~~commissions~~interest onin athe ~~net~~acquisition at ~~basis~~their ~~after~~respective ~~the packaged-tour~~fair ~~service~~values ~~are~~as ~~rendered~~of ~~and~~the ~~collections~~acquisition ~~are~~date ~~reasonably~~in ~~assured~~the Company's consolidated financial statements.

InForeign ~~cases~~Currency ~~where~~Translation these entities undertake the majority of the business risks and acts as principal related to the travel tour services provided, revenues are recognized at gross amounts received from customers after the services are rendered. Revenue from such principal arrangement is minimal in the past.Adjustment

~~Air~~The ~~ticketing~~Company’s ~~services:~~financial ~~Commissions~~statements ~~from~~are ~~air~~presented ~~ticketing~~in ~~services~~the ~~rendered~~U.S. dollar ~~are~~(“$”), ~~recognized~~which ~~upon~~is the ~~issuance~~ ofCompany’s ~~air~~reporting ~~tickets~~currency, ~~net~~while ofits ~~estimated cancellations. Customers purchase the~~functional ~~air~~currencies ~~tickets,~~are ~~and~~ the ~~Company~~U.S. ~~remits~~Dollar ~~the~~for ~~net~~its ~~amount~~U.S. ~~less~~based ~~base~~operations ~~commission~~and toNew ~~the~~Taiwan ~~airlines.~~Dollar ~~Estimated~~(“NTD”) ~~cancellations~~for ~~were~~its ~~insignificant~~Taiwanese ~~for~~based ~~the~~operations. ~~years~~Transactions ~~ended~~in ~~June~~foreign ~~30,~~currencies ~~2017~~are ~~and~~initially ~~December~~recorded ~~31,~~at ~~2016.~~the ~~The~~functional ~~Company~~currency ~~presents~~rate ~~revenues~~prevailing ~~from such~~at ~~transactions~~the ondate aof ~~net~~transaction. ~~basis~~Any indifferences between the ~~consolidated~~initially ~~statements~~recorded ~~of operations, as~~amount and the ~~Company~~settlement ~~acts~~amount asare anrecorded ~~agent,~~as ~~does~~a ~~not~~gain ~~assume~~or ~~any~~loss ~~inventory~~on ~~risk,~~foreign ~~and has no~~currency ~~obligations~~transactions ~~for~~in ~~cancelled~~the ~~airline~~statements ~~ticket~~of ~~reservations~~operations. ~~The~~Monetary ~~Company~~assets ~~sometimes~~and liabilities ~~also~~denominated ~~receives~~in ~~additional~~foreign ~~discretionary~~currency ~~commissions~~are ~~from~~translated ~~certain~~at ~~airlines~~the ~~when performance~~functional ~~targets~~currency ~~are~~rate of ~~met.~~exchange ~~Such~~prevailing ~~discretionary~~at ~~commissions~~the ~~are~~balance ~~recognized~~sheet ondate. ~~a cash~~Any ~~basis~~differences ~~because~~are ~~the~~taken ~~Company~~to profit ~~cannot~~or ~~reasonably~~loss ~~estimate~~as ~~the~~a ~~amount,~~gain or ~~timing of~~loss ~~receipt,~~on offoreign ~~such~~currency ~~commissions~~transaction in ~~advance~~the statements of operations.

~~Other~~The ~~travel~~Company ~~services:~~translates ~~Other~~the ~~travel~~assets ~~services~~and ~~are~~liabilities ~~mainly~~into ~~commissions from insurance companies~~U.S. ~~for~~dollars using the ~~sale~~rate of ~~travel~~exchange ~~insurance.~~prevailing ~~Customers~~at ~~purchase~~ the ~~travel~~balance ~~insurance,~~sheet date and the statements ~~Company~~of ~~remits~~operations ~~the~~and ~~net~~cash ~~amount~~flows ~~less~~are ~~commission~~translated toat an average rate during the ~~insurance~~reporting ~~companies~~period. Adjustments resulting from the translation from ~~The~~NTD ~~Company~~into ~~recognizes~~U.S. ~~revenue~~dollars ~~when~~are ~~the~~recorded ~~travel~~in ~~insurance~~stockholders’ isequity ~~issued~~as topart ~~the~~of ~~customer,~~accumulated ~~net~~other ofcomprehensive ~~estimated~~income ~~cancellations~~(loss).

Reclassification

Certain prior period amounts have been reclassified to conform to current period presentation.

Cash and Cash Equivalents

Cash and cash equivalents include cash and all highly liquid instruments with original maturities of three months or less.

~~Property~~Allowance for ~~and~~Uncollectible ~~Equipment~~Accounts Receivable

~~Property~~An allowance ~~and~~for ~~equipment~~uncollectible ~~are~~accounts ~~stated~~receivable atis ~~cost.~~estimated ~~Expenditures~~based ~~for maintenance~~on ~~and~~historical ~~repairs~~experience, ~~are~~credit ~~charged to earnings as incurred; additions~~quality, ~~renewals~~age ~~and betterments are capitalized. When property and equipment are retired or otherwise disposed~~ of, the ~~related~~accounts ~~cost~~receivable balances, and ~~accumulated~~economic ~~depreciation~~conditions ~~are~~that ~~removed~~may ~~from~~affect ~~the~~a ~~respective~~customer’s ~~accounts,~~ability ~~and~~to ~~any~~pay. ~~gain~~The allowance orfor ~~loss~~uncollectible isaccounts ~~included~~receivable inwas ~~operations.~~zero ~~Depreciation~~as of ~~property~~September 30, 2017 and ~~equipment~~December is31, ~~provided using the straight-line method for substantially all assets with estimated lives as follows:~~2016.

~~Estimated useful life~~Long-term receivable

Property and equipment	Estimated Useful Life
Building	40 years
Vehicles	5 years
Equipment	3~5 years

Long-term receivables include liquidation rights to proceeds from collateralized land. An allowance for uncollectible receivable is estimated based on historical data and land appraisal report provided by third party specialists. The allowance for uncollectible long-term receivable was zero as of September 30, 2017 and December 31, 2016.

~~Net~~Fair ~~Income~~Value ~~(Loss)~~of ~~Per~~Financial ~~Share~~Instruments

~~The~~All ~~Company~~financial ~~has~~instruments ~~adopted~~classified ~~Accounting~~as ~~Standards~~current ~~Codification~~assets and ~~subtopic~~liabilities ~~260-10,~~are ~~Earnings~~carried ~~Per~~at ~~Share (“ASC 260-10”)~~cost, which ~~specifies~~approximates ~~the~~fair ~~computation~~value, ~~presentation~~because ~~and disclosure requirements~~ of ~~earnings per share information. Basic earnings per share have been calculated based upon~~ the ~~weighted~~short-term ~~average~~maturities ~~number~~ of ~~common~~those ~~shares outstanding~~instruments. Common equivalent shares are excluded from the computation of the diluted loss per share if their effect would be anti-dilutive. For the years presented, the Company did not have any common equivalent shares.

Impairment of Long-Lived Assets

The Company has adopted Accounting Standards Codification subtopic 360-10, Property, Plant and Equipment (“ASC 360-10”). ASC 360-10 requires that long-lived assets and certain identifiable intangibles held and used by the Company be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company evaluates its long lived assets for impairment annually or more often if events and circumstances warrant. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve break-even operating results over an extended period. The Company evaluates the recoverability of long-lived assets based upon forecasted undiscounted cash flows. Should impairment in value be indicated, the carrying value of intangible assets will be adjusted, based on estimates of future discounted cash flows resulting from the use and ultimate disposition of the asset. ASC 360-10 also requires assets to be disposed of be reported at the lower of the carrying amount or the fair value less costs to sell. Management has determined that no impairments of long-lived assets currently exist.

Business Combinations

The Company accounts for business combinations under the acquisition method of accounting, which requires the Company to record assets acquired, liabilities assumed and any non-controlling interest in the acquire at their respective fair values as of the acquisition date in the Company's consolidated financial statements.

Goodwill and intangible assets

Goodwill represents the excess of costs over fair value of the net assets of businesses acquired. The Company follows ASC subtopic 350-20, Intangibles-Goodwill and Other: Goodwill. Goodwill and intangible assets acquired in a business combination and determined to have an indefinite useful life are not amortized, but instead tested for impairment at least annually, or more frequently if certain circumstances indicate a possible impairment may exist. The Company performs its annual impairment assessment for goodwill and indefinite-lived intangible assets in December of each year.

The Company adopted ASU 2012-02, Testing Indefinite-Lived Intangible Assets for Impairment, which amends the guidance in ASC subtopic 350-30 on testing indefinite-lived intangible assets, other than goodwill, for impairment. ASU 2012-02 provides an entity testing an indefinite-lived intangible asset for impairment the option of performing a qualitative assessment before calculating the fair value of the asset. Although ASU 2012-02 revises the examples of events and circumstances that an entity should consider in interim periods, it does not revise the requirements to test indefinite-lived intangible assets (1) annually for impairment and (2) between annual tests if there is a change in events or circumstances. If the Company determines, on the basis of qualitative factors, that the fair value of indefinite-lived intangible assets is more likely than not less than the carrying amount, further testing is required. Under the further testing, the impairment test on indefinite-lived intangible assets that are not subject to amortization consists of a comparison of the fair value of each intangible asset with its carrying amount. If the carrying amount of an intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. Assets with definite lives are carried at cost less accumulated amortization. Intangible assets with definite lives are amortized using the straight-line method over the estimated economic life.

Discontinued Operations

The Company follows the policy of segregating the assets and liabilities of subsidiaries or lines of business on its balance sheet from the assets and liabilities of continuing subsidiaries or lines of business when it has decided to close or dispose of a subsidiary or line of business. The Company also follows the policy of separately disclosing the assets and liabilities and the net operations of a subsidiary or line of business in its financial statements when it is decided to close or dispose of a subsidiary or line of business.

Income Taxes

The Company accounts for income taxes in accordance with ASC 740, Income Taxes, which requires that the Company recognize deferred tax liabilities and assets based on the differences between the financial statement carrying amounts and the tax basis of assets and liabilities, using enacted tax rates in effect in the years the differences are expected to reverse. Deferred income tax benefit (expense) results from the change in net deferred tax assets or deferred tax liabilities. A valuation allowance is recorded when, in the opinion of management, it is more likely than not that some or all of any deferred tax assets will not be realized.

Financial Instruments

The Company uses the following methods and assumptions to estimate the fair value of each class of financial instruments for which it is practicable to estimate such values:

Cash and cash equivalent – the carrying amount approximates fair valule because the amounts consist of cash held at banks.

Accounts payable and accrued liabilities – the carrying amounts approximate fair value due to the short-term nature of the obligations.

Financial instruments measured at fair value are classified into one of three levels in the fair value hierarchy according to the relative reliability of the inputs used to estimate the fair values. The three levels of the fair value hierarchy are:

Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities;

Level 2 - Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and

Level 3 - Inputs that are not based on observable market data.

~~Cash~~Property and ~~cash equivalent is measured at level 1 inputs.~~Equipment

~~Foreign~~Property ~~Currency~~and ~~Translation~~equipment are stated at cost. Expenditures ~~Adjustment~~for maintenance and repairs are charged to earnings as incurred; additions, renewals and betterments are capitalized. When property 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 and equipment is provided using the straight-line method for substantially all assets with estimated lives as follows:

The Company’s financial statements are presented in the U.S. dollar ($), which is the Company’s reporting currency, while its functional currencies are the U.S. Dollar for its U.S. based operations and New Taiwan Dollar (NTD) for its Taiwanese based operations. Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of transaction. Any differences between the initially recorded amount and the settlement amount are recorded as a gain or loss on foreign currency transaction in the statements of operations. Monetary assets and liabilities denominated in foreign currency are translated at the functional currency rate of exchange prevailing at the balance sheet date. Any differences are taken to profit or loss as a gain or loss on foreign currency translation in the statements of operations.

Property and equipment	Estimated Useful Life
Vehicles	5 years
Equipment	2~5 years

~~In accordance~~Goodwill ~~with ASC 830, Foreign Currency Matters, the Company translates the assets~~ and ~~liabilities~~intangible into U.S. dollars using the rate of exchange prevailing at the balance sheet date and the statements of operations and cash flows are translated at an average rate during the reporting period. Adjustments resulting from the translation from NTD into U.S. dollar are recorded in stockholders’ equity as part of accumulated other comprehensive income (loss). The exchange rates used for financial statements in accordance with ASC 830, Foreign Currency Matters, are as follows:assets

~~Foreign~~Goodwill ~~currency~~represents ~~exchange~~the ~~rates~~excess of costs over fair value of the net assets of businesses acquired. Goodwill and intangible assets acquired in a business combination and determined to have an indefinite useful life are not amortized, but instead tested for impairment at least annually, or more frequently if certain circumstances indicate a possible impairment may exist. The Company performs its annual impairment assessment for goodwill and indefinite-lived intangible assets in December of each year.

	Jun. 30, 2017	Dec. 31, 2016
Average Exchange Rate, TWD	30.658	31.911
Instant Exchange Rate, TWD	30.436	32.279
Average Exchange Rate, USD	1.000	1.000
Instant Exchange Rate, USD	1.000	1.000

The Company performs a one-step test in its evaluation of the carrying value of goodwill, if qualitative factors determine it is necessary to complete a goodwill impairment test. In the evaluation, the fair value of the relevant reporting unit is determined and compared to the carrying value. If the fair value is greater than the carrying value, then the carrying value is deemed to be recoverable, and no further action is required. If the fair value estimate is less than the carrying value, goodwill is considered impaired for the amount by which the carrying amount exceeds the reporting unit’s fair value, and a charge is reported in impairment of goodwill in our consolidated statements of operations.

Assets with definite lives are carried at cost less accumulated amortization. Intangible assets with definite lives are amortized using the straight-line method over the estimated economic life.

Impairment of Long-Lived Assets

The Company reviews long-lived assets and certain identifiable intangibles held and used by the Company for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company evaluates its long lived assets for impairment annually or more often if events and circumstances warrant. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve break-even operating results over an extended period. The Company evaluates the recoverability of long-lived assets based upon forecasted undiscounted cash flows. Should impairment in value be indicated, the carrying value of intangible assets will be adjusted, based on estimates of future discounted cash flows resulting from the use and ultimate disposition of the asset.

Income Taxes

The Company recognizes deferred tax liabilities and assets based on the differences between the financial statement carrying amounts and the tax basis of assets and liabilities, using enacted tax rates in effect in the years the differences are expected to reverse. Deferred income tax benefit (expense) results from the change in net deferred tax assets or deferred tax liabilities. A valuation allowance is recorded when, in the opinion of management, it is more likely than not that some or all of any deferred tax assets will not be realized.

Revenue recognition

The Company recognizes revenues when all of the following have occurred: persuasive evidence of arrangement with the customer, services have been performed, fees are fixed or determinable and collectability of the fees is reasonably assured. For commission revenues, the Company recognizes at the later of the billing or the effective date of the related insurance policies. The commission is based on a percentage basis in the contract and is determined by the insurance carrier in advance of the contractual period. The Company recognizes supplemental commission revenues using internal data and information received from insurance carriers that allows the Company to reasonably estimate the supplemental commissions earned in the period. A supplemental commission is a commission paid by an insurance carrier that is above the base commission paid, is determined by the insurance carrier, and is established periodically in advance of the contractual period based on historical performance criteria.

Net Earnings (Loss) Per Share

Basic earnings (loss) per share is calculated based upon the weighted average number of common shares outstanding. Common equivalent shares are excluded from the computation of the diluted loss per share if their effect would be anti-dilutive. For the periods presented, the Company did not have any common equivalent shares that would be dilutive.

Recently Issued Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update, (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), ~~which~~ which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle is that a company should recognize revenue when ~~promised~~ promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2017, and interim periods therein, and shall be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. In May 2016, the FASB issued Accounting Standards Update No. 2016-12, Revenue from Contracts with Customers. This update provides further guidance on applying collectability criterion to assess whether the contract is valid and represents a substantive transaction on the basis whether a customer has the ability and intention to pay the promised consideration. The requirements of this standard include an increase in required disclosures. Management has not yet selected a transition method and is currently analyzing the impact of the adoption of this guidance on the Company’s consolidated financial statements, including assessing changes that might be necessary to information technology systems, processes and internal controls to capture new data and address ~~changes~~ changes in financial reporting. The Company believes that the adoption of the ~~standard~~ standard will not have a significant impact on its consolidated financial statements.

~~In August 2016, the FASB issued Accounting Standards Update No. 2016-15, “Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments.”~~The ~~new guidance~~ isCompany ~~intended~~does tonot ~~provide~~believe ~~specific~~that ~~guidance~~any onother ~~cash~~recently ~~flow~~issued ~~classification issues~~effective ~~such as debt prepayment or debt extinguishment costs~~pronouncements, ~~settlement of zero coupon debt instruments~~ or ~~cases~~pronouncements ~~where~~issued ~~the~~but ~~coupon~~not ~~interest~~yet ~~rate is insignificant compared to the~~ effective ~~interest rate of the borrowing~~, ~~contingent consideration~~if ~~payments in a business combination~~adopted, ~~proceeds from insurance claim~~ ~~settlements~~would ~~and~~have distributions received by equity method investees. The standard is effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods. The amendments should be applied using a ~~retrospective~~ ~~transition~~material ~~method~~effect ~~to each period presented. The Company believes there will be no impact~~ on the accompanying consolidated financial ~~statements as a result of~~ ~~the adoption of the new accounting standard~~statements.

In January 2017, the FASB issued Accounting Standards Update No. 2017-01, “Business Combinations (Topic 805).” The amendments in this Update are intended to clarify the definition of business. The current guidance specifies three elements of a business – inputs, processes, and outputs. The new guidance provides a screen to determine when a set is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that needs to be further evaluated. The standard is effective to annual periods beginning after December 15, 2017, including interim periods within those periods. The Company believes that the adoption of the standard will not have a significant impact on its consolidated financial statements.

NOTE 2. PROPERTY AND EQUIPMENT

Property and equipment at September 30, 2017 and December 31, 2016 consisted of the following:

	Jun.30, 2017 (USD)	Dec. 31, 2016 (USD)
	September 30, 2017	December 31, 2016
Land	$ 6,~~007~~634,~~853~~911	$ 5,902,201
Vehicles	~~147~~80,~~782~~775	67,960
Equipment	~~145~~54,~~659~~989	55,069
Property and equipment - gross	6,~~901~~770,~~294~~675	6,025,230
Accumulated depreciation	(~~139~~65,~~381~~339)	(68,845)
Property and equipment - net	$ 6,~~761~~705,~~913~~336	$ 5,956,385

During ~~the~~ ~~period~~the nine months ended ~~June~~September 30, 2017, the Company’s ~~subsidiary,~~acquired ~~San~~three ~~Lotus~~properties ~~Holding~~with ~~Inc.~~a ~~(BVI) had~~total ~~acquired~~area ~~three~~of ~~properties~~approximately 6,830 square meters in Kyushu, Japan. These properties are held in trust for the benefit of the Company under the name of the Company’s chairman’s, Kuan Yu Chen~~, name~~. ~~Details of these purchase are listed below.~~

~~Land~~The seller ~~Acquired~~of 3 pieces of land that the Company acquired in 2013 has a first lien ~~During~~on ~~Period~~the land until 2019. The land is located in Taiwan and has a book value of approximately $2 million (NTD 60,000,000).

Item	Name	Contract Date	Closing Date	Type of Property	Area/㎡
1	Yufuin City, Oita Prefecture, Kyushu	2017/6/23	2017/6/29	Land	1,222.49
2	Yufuin City, Oita Prefecture, Kyushu	2017/6/22	2017/6/29	Land	3,192
3	Kirishima City, Kagoshima Prefecture, Kyushu	2017/4/21	2017/6/21	Land	2,415.54

For the three and nine months ended September 30, 2016 and 2017, depreciation expense was as follows:

Depreciation Expense

	Three Months Ended September 30, 2017	Three Months Ended September 30, 2016	Nine Months Ended September 30, 2017	Nine Months Ended September 30, 2016
Depreciation expense	$ 21,872	$ 3,681	$ 33,843	$ 39,697

	Six Months Ended Jun. 30, 2017 (USD)	Six Months Ended Jun. 30, 2016 (USD)
Depreciation Expense	11,971	36,016

In June 2016, the Company sold 2 vehicles, details of the transactions are listed below:

In June 2016, The Company has sold vehicles, details of which are listed below.

Sale proceeds	$ 44,000
Net book value on disposal date	34,214
Realized gain on disposal	$ 9,786

~~Vehicle~~NOTE 3. ~~Sale~~DISPOSAL OF XO EXPERIENCE INC.

	June 30, 2016 (USD)
Sale proceeds	44,000
Net book value	34,215
Realized gain on disposal	9,785

On December 31, 2016, the Company decided to dissolve XO. The Company segregated the assets and liabilities of XO on its balance sheet from the assets and liabilities of continuing subsidiaries when it decided to dissolve XO. As a result of the decision to dissolve XO, XO’s assets, liabilities, revenues and expenses have been classified as discontinued operations on the consolidated statement of operations for the three and nine months ended September 30, 2016. The components of discontinued operations summarized on the statements of operations are as follows:

NOTE 3. ACQUISITION AND DIVESTURE OF XO EXPERIENCE INC. (“XO”)

	Three Months Ended September 30, 2016	Nine Months Ended September 30, 2016
Revenue	$ -	$ 156,276
General and administrative expenses	(35,917)	(143,695)
Net income (loss) from discontinued operations	$ (35,917)	$ 12,581

OnThere ~~August~~were ~~14,~~no ~~2015,~~assets ~~the~~or ~~Company~~liabilities ~~entered~~related ~~into~~to aXO ~~stock~~on ~~purchase agreement (~~the ~~“Stock~~balance ~~Purchase Agreement”)~~sheets ~~with~~as ~~Chen-Tseng,~~of ~~Chih-Ying~~September ~~and Chen~~30, 2017 ~~Li Hsing, our former CEO~~ and ~~former~~ ~~Chairman~~December ~~respectively~~31, ~~for the acquisition of XO EXPERIENCE INC~~2016. ~~(“XO”) to acquire all of the issued and outstanding common stock of XO in exchange for$1.~~

~~The following~~As ~~table~~of ~~summarizes~~December 31, 2016, the ~~estimated~~Company ~~fair~~wrote ~~values~~off ofXO’s ~~the~~residual ~~assets~~net ~~acquired~~receivable ~~and~~due ~~liabilities~~from ~~assumed~~companies atowned ~~the~~by ~~acquisition~~our ~~date~~former ofCEO ~~the~~and ~~acquisition:~~ Chairman totaling $27,836.

~~Fair value of XO~~NOTE ~~Experience~~4. LONG-TERM ~~acquisition~~RECEIVABLES

	Aug. 14, 2015 (USD)
Cash	216,402
Accounts receivable	250,740
Prepaid expenses and other current assets	21,915
Goodwill	121,793
Accounts payable	(583,257)
Other current liabilities	(13,154)
Unearned revenue	(14,438)
Consideration paid	1

In February 2010, prior to the Company’s acquisition of Mao Ren, Mao Ren acquired, from Chiu, Pao-Chi, Chiun Jing Inc., Haug Inc., Jiu Bang Inc., and Wan Fu Inc. (together, “Mao Ren Creditors”), rights to partial proceeds from future sales of collateralized land pledged by a Taiwanese company. In exchange, Mao Ren assumed a payable liability to Mao Ren Creditors for the same amount. Among the Mao Ren Creditors, Chiu, Pao-Chi represents a group of unidentified creditors to the Taiwanese company and Chiun Jing Inc., Haug Inc., Jiu Bang Inc., and Wan Fu Inc. represents different groups of creditors of the Taiwanese company.

~~The~~Mao Ren ~~acquisition~~initially ofrecorded XOa islong-term ~~considered~~receivable toof beapproximately a$30 ~~business acquisition; accordingly,~~million ~~goodwill~~ (~~refer to above table~~NT$913,401,823) based ~~was recognized~~ on ~~the acquisition~~a ~~date. As~~report atprovided ~~December~~by ~~31,~~an ~~2015,~~independent ~~the~~appraiser ~~Company~~at ~~performed~~initial anrecognition. ~~impairment~~The appraised ~~test~~value onconstitutes ~~its~~the ~~goodwill~~carrying ~~and~~amount ~~determined~~of ~~that~~the anseller ~~impairment~~because ~~existed~~the ~~due~~agreements ~~to negative~~with ~~expected~~the ~~cash~~creditors ~~flows~~stipulated that ~~will~~the bemaximum ~~generated~~amount in the ~~business. Accordingly,~~creditors ~~the Company~~could ~~recorded~~recover anis limited ~~impairment~~to ~~charge~~the ~~equal~~proceeds toreceived from the ~~full~~sale ~~amount~~ of ~~its~~ ~~goodwill~~the ~~(refer~~collateralized land relative to ~~above~~their ~~table)~~proportionate investment.

OnSubsequent ~~December 31, 2016, the Company decided~~ to ~~dissolve~~Mao XORen’s ~~EXPERIENCE~~transaction ~~INC.~~with ~~pursuant~~Mao ~~to Section~~Ren ~~1900~~Creditors, ~~(a) of~~three ~~California~~private ~~Corporations~~companies ~~Code. The~~were ~~Company~~incorporated ~~follows~~by ~~the~~Chen, ~~policy~~Kuan ofYu, ~~segregating~~our ~~the~~Chairman, ~~assets~~ and ~~liabilities~~Yu, ~~of subsidiaries~~Chien orYang, ~~lines~~our ~~of business on its balance sheet from the assets and~~former ~~liabilities~~Director ~~of continuing subsidiaries or lines of business when it decided~~ to ~~close~~ orrepresent ~~dispose~~Mao ofRen ~~a subsidiary or line of business~~Creditors. As aThese ~~result of the~~three ~~decision~~private tocompanies ~~dissolve~~assumed ~~XO,~~the ~~XO’s~~debt ~~assets,~~which ~~liabilities,~~Mao ~~revenues~~Ren ~~and~~owed ~~expenses~~to ~~have been~~Mao ~~classified~~Ren asCreditors ~~discontinued operations on the consolidated balance sheets~~ and ~~statement of operations. The components of discontinued~~ ~~operations~~in ~~summarized~~turn onaccepted ~~the~~promissory ~~statement of~~notes ~~operations arising~~ from ~~the~~Mao ~~decision~~Ren ~~to dissolve XO are~~ as ~~follows:~~consideration.

~~Discontinued~~On ~~Operations~~March 31, 2015, Green Forest acquired all of the issued and outstanding common stock of Mao Ren in exchange for $1 from Chiu, Pao-Chi, Chiun Jing Inc., Haug Inc., Jiu Bang Inc., and Wan Fu Inc. The main assets and liabilities acquired from Mao Ren included the liquidation rights to proceeds from collateralized land totaling $18,190,911 and related promissory notes payable totaling $18,190,911, respectively.

	Six Months Ended Jun. 30, 2017 (USD)	Six Months Ended Jun. 30, 2016 (USD)
Revenue	0	156,672
General and administrative expenses	0	(108,174)
Income tax	0	0
Net income (loss) from discontinued operations	0	48,498

On June 12, 2015, the Company issued 29,464,575 common shares to settle the notes issued to the three private companies. The common stock issued was recorded at the par value of $1 per share. The difference between the carrying amount (that being the cost of the seller) and the par value was recorded in accumulated deficit. The Company issued those shares to our Chairman in trust for the first group of individual creditors. The second group of creditors, who wish to collect cash proceeds from the sale of collateralized land, settled with the second private company (owned by our former Director) whereby the former director would be personally liable to settle the amounts with the second group of creditors. The remaining third group of creditors were not identified and the Company has not been able to locate those creditors.

~~The~~During ~~components~~2016, three parcels of ~~discontinued~~the land were ~~operations~~sold and a total of approximately $11.5 million (NT$347,702,849) was ~~summarized~~allocated onto the ~~balance~~Company ~~sheets~~by ~~arising~~the ~~from~~government agencies. Of the ~~decision~~amount allocated to ~~dissolve~~the XOCompany, ~~are~~about $10.1 million (NT$304,792,503) was asreceived ~~follows:~~by the Company in 2016. The remaining balance is under dispute with other creditors of the Taiwanese company.

~~Discontinued~~Balances of ~~Operations~~long-term receivable are as follows:

	Jun 30, 2017 (USD)	Dec. 31, 2016 (USD)
	September 30, 2017	December 31, 2016
Current assets
Long-term receivable	$ 8,688,955	$ 8,148,290
Cash	0	0
Accounts receivable and other current assets	0	0
Due from former related parties	0	0
Total assets held for divesture	0	0
Current liabilities
Accounts payable and accrued liabilities	0	0
Unearned revenue	0	0
Total liabilities held for divesture	0	0

~~As at December~~NOTE ~~31,~~5. ACQUISITION ~~2016,~~OF ~~the~~AHI ~~Company~~FILM ~~wrote off the residual net receivable due from companies owned by our former CEO and Chairman totaling $27,836~~INC.

~~NOTE~~On August 431, 2016, the Company entered into an agreement to purchase all outstanding shares of AHI Film from Chang, Hsin-Yu, the sole shareholder of AHI Film and AHI Film’s creditor’s rights from Yu, Chien-Yang, a former director and major shareholder of the Company. ~~ACQUISITION~~ OFThe ~~MAO~~closing ~~REN~~date ~~INTERNATIONAL~~of ~~INC~~this acquisition is January 1, 2017. The Company concluded that the transaction is an acquisition of assets.

~~On March 31, 2015 (the acquisition date), Green Forest~~Assets ~~Management~~acquired ~~Consulting Inc. ("Green Forest"), our wholly-owned subsidiary, entered into a stock purchase agreement with Chiu, Pao-Chi, Chiun Jing Inc., Haug Inc., Jiu Bang Inc.,~~ and ~~Wan~~liabilities Fuassumed ~~Inc.,~~at ~~(collectively~~ the ~~"Mao~~ ~~Ren Sellers") for the~~ acquisition ofdate ~~Mao~~are ~~Ren~~as ~~International Inc., a Taiwan (R.O.C.) company ("Mao Ren"). Green Forest acquired all of the issued and outstanding common stock of Mao Ren from the Mao Ren Sellers in exchange for $1.~~follows:

The main assets and liabilities acquired from Mao Ren included the liquidation rights to proceeds from collateralized land totaling US$18,190,911 and the related promissory notes payable totaling US$18,190,911 respectively. See Note 5.

Cash	$ 111,702
Accounts receivable	716
Prepaid expenses and other current assets	17,310
Fixed assets	31,635
Media assets	4,261,597
Accounts payable	(12,801)
Other payables	(4,388,368)
Other current liabilities	(21,790)
Consideration paid	$ 1

~~NOTE~~The ~~5. LONG-TERM~~Company performed an impairment test on the media assets ~~RECEIVABLES~~acquired after acquisition and determined that the full balance of the assets is impaired due to the uncertainty in the ultimate benefit to the Company.

~~In February~~NOTE 2010, Mao Ren took on debt from the creditors of a Taiwanese based company in exchange for the creditors’ rights to the proceeds from the sale of collateralized land pledged by this Taiwanese company6. ~~Pursuant to~~ ACQUISITION ~~the~~OF ~~assumption~~AHI ~~agreements,~~RECORD ~~the creditors agreed with Mao Ren to enforce and execute the auction by the court or itself against the debtor’s remaining assets which are the collateralized land~~INC.

~~The~~On ~~above~~August mentioned creditors of the Taiwanese company are segregated into three groups. In response to the three groups of creditors, three private companies were incorporated by Chen, Kuan Yu, our Chairman, and Yu, Chien Yang, our former Director to facilitate further development. Prior to the acquisition date of March 31, ~~2015~~2016, ~~these three private companies assumed~~ the ~~debt~~Company ~~which~~entered ~~Mao~~into ~~Ren~~an ~~owed~~agreement to ~~the~~purchase ~~three~~all outstanding ~~groups~~shares of ~~creditors respectively~~AHI ~~and~~Records ~~in turn accepted promissory notes from Mao Ren as consideration~~Inc. ~~On June 12~~from Chang, ~~2015~~ Hsin-Yu, the ~~first group of creditors,~~sole ~~represented~~shareholder ~~by the first~~ of ~~the~~AHI ~~three~~Records ~~private~~Inc. ~~companies, agreed~~and AHI toRecords’ creditor’s ~~take common stock of the Company as settlement for~~rights ~~cancellation of the promissory notes~~ from ~~Mao~~Yu, Chien-Yang, ~~Ren.~~a ~~The~~former ~~common stock~~director ~~issued~~and ~~was~~major ~~recorded~~shareholder ~~at the par value~~ of ~~$1/common share. The difference between~~ the ~~carrying amount (that being the cost of the seller) and the par~~ ~~value was recorded in deficit. The~~ Company ~~issued those shares to our Chairman in trust for those individual creditors~~. ~~The~~ This ~~second~~transaction ~~group~~closed ~~of creditors, who wish~~on toJanuary ~~collect cash proceeds from the sale of collateralized land~~1, ~~settled with the second private company (owned by our former Director) whereby the former director would be personally liable to settle the amounts with the creditors~~2017. The Company ~~could~~concluded ~~not~~that ~~locate~~ the ~~remaining~~transaction ~~third~~is ~~group~~an ~~creditors and could not~~acquisition ~~settle any~~ of ~~their debts~~assets.

~~The~~Assets ~~Company~~acquired ~~has hired an independent appraiser to appraise the collateralized land~~ and ~~recorded~~liabilities ~~the~~assumed ~~long-term receivable based on the potentially realizable value NT$913,401,823 of the collaterals~~ at ~~initial recognition. The realizable value constitutes~~ the ~~carrying~~ ~~amount~~acquisition ofdate ~~the~~are seller because the agreements with the creditors stipulated that the maximum amount the creditors could recover is limited to the proceeds received from the sale of the collateralized land relative to their proportionate investment. Further to realization of some of the liquidation rights to the debtor’s remaining assets during fiscal 2016, the Company has re-assessed our remaining rights to the debtor’s remaining assets as ~~follow~~follows:

Land Fair Value

Cash	$ 1,973
Media assets	440,509
Other payable	(442,481)
Consideration paid	$ 1

	Jun. 30, 2017 (USD)	Dec. 31, 2016 (USD)
Fair Value (NT$)	263,018,668	263,018,668
Land Area (square meter)	532,228	532,228

AsNOTE ~~of June~~7. ACQUISITION ~~30,~~OF ~~2017~~SAN ~~and~~LOTUS ~~December~~HOLDING ~~31,~~INC ~~2016, the Company’s receivable amounts are shown below.~~ (BVI)

~~Receivables~~On August 31, 2016, the Company entered into an agreement to purchase all outstanding shares of San Lotus BVI from Chang, Hsin-Yu, the sole shareholder of San Louts BVI and San Lotus BVI’s creditor’s right from Yu, Chien-Yang, a former director and major shareholder. This transaction closed on January 1, 2017.

	Jun 30, 2017 (USD)	Dec. 31, 2016 (USD)
Loan receivable	8,661,613	8,148,290

The following table summarizes the assets acquired and liabilities assumed at the acquisition date:

During fiscal 2016, three parcels of the debtor’s land were sold for the following amounts:

Cash	$ 100
Intangible assets	1,313,849
Other payable	(1,313,948)
Consideration paid	$ 1

~~Land~~The ~~Sales~~Company ~~Proceeds~~performed an impairment test on the assets acquired after acquisition and determined that the full balance of the assets is to be impaired due to the uncertainty in the ultimate benefit to the Company.

	Year Ended Dec. 31, 2016
Yilan	258,999,970
Tainan	15,681,799
Pingtung	30,110,734
Total	304,792,503

NOTE 8. ACQUISITION OF Da Ren International Insurance Brokers Co. Ltd

NoOn ~~gain~~December or31, ~~loss~~2016, ~~was~~the ~~recognized~~Company ~~upon~~entered ~~sale~~into an agreement to purchase all outstanding shares of ~~the~~Da ~~debtor’s~~Ren ~~land~~Insurance ~~because~~from Wu, Ting–Kuang, the ~~initial~~sole ~~carrying~~shareholder ~~value~~of ~~was~~Da ~~adjusted~~Ren toInsurance. ~~its~~The ~~fair~~purpose ~~value~~of asthe acquisition ~~agreements~~of ~~with~~Da Ren Insurance was to complement the ~~first group~~future development of the Company’s ~~creditors~~real ~~stipulated~~estate ~~that~~holdings. ~~the~~This ~~cost~~transaction ofwas ~~the~~closed ~~seller~~on toApril ~~equal~~1, 2017. toDa Ren Insurance and the ~~estimated~~ ~~expected~~Company ~~proceeds~~had ~~from~~common officers and directors at the time ~~sales~~of acquisition.

~~NOTE~~The following ~~6. ACQUISITION~~table summarizes the preliminary estimated fair values of the assets OFacquired ~~AHI~~and ~~FILM~~liabilities ~~INC.~~assumed at the acquisition date (translated using the exchange rate on the acquisition date):

On August 31, 2016, the Company entered into an agreement to purchase all outstanding shares of AHI Film Inc. from Chang, Hsin-Yu (the “Seller”), the sole shareholder of AHI Film and AHI Film’s creditor’s right from Yu, Chien-Yang, a former director and major shareholder. This transaction closed on January 1, 2017.

Cash	$ 46,848
Receivables	155,596
Other assets	58,352
Intangible assets	157,283
Other payable	(73,093)
Consideration paid	$ 344,986

The ~~following table~~Company ~~summarizes~~is in the ~~estimated~~process of obtaining information necessary to measure the fair ~~values~~value of the assets acquired and liabilities assumed; thus the provisional measurements of intangibles, and liabilities assumed atare subject to change, which could be significant. The Company will finalize the amounts ~~acquisition~~recognized ~~date~~as ofit obtains the ~~acquisition:~~ information necessary to complete the analysis.

~~Fair~~The ~~value~~Company ofexpects ~~AHI~~to finalize these amounts as soon as possible ~~Film~~but no later than one year from the acquisition date.

	Jan 1, 2017 (USD)
Cash	111,702
Accounts receivable	716
Prepaid expenses and other current assets	17,310
Fixed Assets	31,635
Media Assets	4,261,597
Accounts payable	(12,801)
Other payable	(4,388,368)
Other current liabilities	(21,790)
Consideration paid	1

NOTE 9. INTANGIBLE ASSETS

~~The Company~~On ~~performed~~April an1, ~~impairment~~2017, ~~test on~~ the ~~assets~~Company acquired ~~after~~all ~~acquisition~~outstanding shares of ~~and~~Da ~~determined~~Ren ~~that~~Insurance. ~~the~~See ~~full~~Note 8. ~~balance~~The ofCompany is in the ~~assets~~process isof obtaining information to bemeasure ~~impaired~~the ~~due~~fair tovalue of the assets acquired and liabilities ~~uncertainty~~assumed in ~~the~~connection ~~ultimate~~with ~~benefit~~the toacquisition ~~the~~and ~~Company. The~~no ~~Company~~amortization ~~decided~~has tobeen ~~purchase~~recorded ~~these~~to ~~assets~~date. toAs ~~reimburse~~of ~~the~~September ~~original~~30, ~~creditors~~2017, ~~for~~the ~~their~~Company ~~advances~~recorded $158,459 as ~~and~~intangible ~~expenses~~assets ~~paid~~(translated onusing ~~behalf~~the ofexchange ~~these~~rate ~~companies.~~on September 30, 2017)

NOTE ~~7. ACQUISITION~~ ~~OF AHI RECORD INC~~10. EQUITY

On ~~August~~July 317, ~~2016~~2017, the Company ~~entered~~prepaid ~~into~~$39,313 an(NTD ~~agreement~~1,200,000) to purchase ~~all~~the ~~outstanding~~Company’s common shares offrom ~~AHI Records~~an ~~Inc~~individual. ~~from Chang, Hsin-Yu~~The ~~(the~~shares ~~“Seller”),~~have ~~the sole shareholder~~not ofbeen ~~AHI~~received ~~Records Inc. (“AHI Records”)~~ and ~~AHI~~ ~~Records’ creditor’s right~~the ~~from~~prepayment ~~Yu, Chien-Yang,~~was aincluded ~~former~~under ~~director~~other ~~and~~current ~~major~~assets ~~shareholder. This~~in ~~transaction~~the consolidated ~~closed~~balance onsheet ~~January~~at 1September 30, 2017.

~~The following~~NOTE ~~table~~11. FORMATION ~~summarizes~~OF ~~the~~AHI ~~estimated~~FILM’S ~~fair~~LLC ~~values of the assets acquired and liabilities assumed at the acquisition date of the acquisition:~~ SUBSIDIARIES

~~Fair~~On ~~value~~April of23, 2017, AHI Film formed four LLC subsidiaries to ~~Record~~develop ~~acquisition~~four separate film projects. The specifics of the film projects have yet to be determined. Through September 30, 2017, there are no transactions in these subsidiaries.

	Jan 1, 2017 (USD)
Cash	1,973
Media Assets	440,509
Other payable	(442,481)
Consideration paid	1

NOTE 12. RELATED PARTY TRANSACTIONS

~~The Company~~Amount ~~performed an impairment test on the assets acquired after acquisition and determined that the full balance of the assets is to be impaired~~ due tofrom ~~the uncertainty~~or ~~in the ultimate benefit~~ to ~~the Company. The Company decided to~~ ~~purchase~~related ~~these~~parties ~~assets~~was toas ~~reimburse the original creditors for their advances and expenses paid on behalf of these companies.~~follows:

NOTE 8. ACQUISITION OF SAN LOTUS HOLDING INC (BVI)

	September 30, 2017	December 31, 2016
Due from:
Chen, Kuan Yu, Chairman	$ 78,000	$ 78,000
Yu, Chien Yang, former Director	8,000	78,000
Autarky Consulting Inc.	77,854	25,516
Da Chuang Business Management Consultants.	20,362	8,030
Due from related parties	$ 184,216	$ 189,546

Due to:
Chen, Kuan Yu, Chairman	$ 11,879	$ -
Autarky Consulting Inc.	100,345	33,160
Yu, Chien Yang, former Director	89,131	7,023
Due to related parties	$ 201,355	$ 40,183

OnThe ~~August~~Company’s ~~31,~~Chairman ~~2016,~~is the ~~Company~~Chief ~~entered~~Financial ~~into~~Officer ~~an agreement to purchase all outstanding shares~~ of ~~San~~ ~~Lotus~~Autarky ~~Holding~~Consulting Inc. ~~registered in British~~ ~~Virgin~~and ~~Islands~~one ~~(the~~of ~~“BVI Company”) from Chang, Hsin-Yu (~~the ~~“Seller”),~~directors ~~the sole shareholder~~ of ~~the~~Da ~~BVI~~Chuang ~~Company and the~~Business ~~BVI Company’s creditor’s~~Management ~~right from Yu, Chien-Yang, a former director and major shareholder~~Consultants. ~~This transaction closed on January 1, 2017.~~

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date of the acquisition:

Fair value of San Lotus Holdong Inc. (BVI) acquisition

	Jan 1, 2017 (USD)
Cash	100
Intangible Assets	1,313,849
Other payable	(1,313,948)
Consideration paid	1

The Company performed an impairment test on the assets acquired after acquisition and determined that the full balance of the assets is to be impaired due to the uncertainty in the ultimate benefit to the Company. The Company decided to purchase these assets to reimburse the original creditors for their advances and expenses paid on behalf of these companies.

NOTE 9. ACQUISITION OF Da Ren International Insurance Brokers Co. Ltd

On December 31, 2016, the Company entered into an agreement to purchase all outstanding shares of Da Ren International Insurance Brokers Co.,Ltd registered in Taiwan (R.O.C) (the “Da Ren Insurance”) from Wu, Ting–Kuang (the “Seller”), the sole shareholder of the Da Ren International Insurance Brokers Co.,Ltd. This transaction closed on April 1, 2017. Da Ren Insurance and the Company have common officers and directors at the time of acquisition.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date of the acquisition:

Fair value of Da Ren International Insurance Brokers Co.,Ltd acquisition

	Apr 1, 2017 (USD)
Cash	46,848
Receivables	155,596
Other Assets	58,352
Intangible Assets	157,283
Other payable	(73,093)
Consideration paid	344,986

The purpose of the acquisition of Da Ren Insurance was to complement the future development of the Company’s real estate holdings.

NOTE 10. FORMATION OF AHI FILM’S LLC SUBSIDIARIES

On April 23, 2017, AHI Film formed four LLC subsidiaries to develop four separate film projects. The specifics of film projects have yet to be determined. During the period ended June 30, 2017, there are no transactions in these LLC’s.

NOTE 11. RELATED PARTY TRANSACTIONS

The principal related party transactions for the six months ended June 30, 2017 and year ended June 30, 2016 were as follows:

a) Purchase of vehicle

During fiscal 2016, the Company purchased two vehicles from a private company controlled by Yu, Chien-Yang , our former Director for total purchase price of $39,600

b) Amounts due from/to related parties

Amounts Due From or To Related Parties

	June 30, 2017 (USD)	Dec. 31, 2016 (USD)
Amount due from Chen, Kuan Yu, Chairman	78,411	78,000
Amount due from Yu, Chien Yang, former Director	78,411	78,000
Amount due to Yu, Chien Yang, former Director	0	7,023

The amounts due from/to related parties are non-interest bearing, unsecured and have no fixed terms of repayment.

cThe acquisitions of AHI Film Inc., AHI Records Inc., San Lotus Holding Inc. (BVI) ~~Acquisitions~~and Da Ren Insurance in 2017 are considered to be transactions with related parties.

The acquisitions of XO, Mao Ren, AHI Film Inc., AHI Records Inc., San Lotus Holding Inc. (BVI) and Da Ren Insurance as outlined in notes 3,4,6,7, 8 and 9 are considered to be transactions with related parties.

NOTE 12. CAPITAL STOCK

Common Stock

Holders of common stock are entitled to one vote for each share held. There are no restrictions that limit the Company’s ability to pay dividend on its common stock. The Company has not declared any dividend since incorporation.

There are no capital transactions during the six months period ended June 30, 2017 or fiscal year ended December 31, 2016.

NOTE 13. COMMITMENTS AND CONTINGENCIES

~~a) The~~Operating Company has several operating leases, primarily for offices and employee dormitories. Payments under operating leases, including periodic rent escalation and rent holidays, are expensed on a straight-line basis over the lease ~~term.~~

The Company has several operating leases, primarily for offices and employee dormitories. Payments under operating leases, including periodic rent escalation and rent holidays, are expensed on a straight-line basis over the lease term. Future minimum lease payments under non-cancellable operating leases as of ~~Jun~~September 30, 2017 are as follows:

Minimum lease payments

	Year ended December 31, 2017	Year ended December 31, 2018	Year ended December 31, 2019	Total
Lease payments	$ 17,121	$ 47,458	$ 2,752	$ 67,331

	Year Ended Dec. 31, 2017 (USD)	Year Ended Dec. 31, 2018 (USD)	Total
Minimum lease payments	33,880	67,760	101,640

Rent expense was as follows:

Rental expenses

	Three Months Ended September 30, 2017	Three Months Ended September 30, 2016	Nine Months Ended September 30, 2017	Nine Months Ended September 30, 2016
Rental expense	$ 20,179	$ 16,791	$ 54,059	$ 35,926

	Six months Ended Jun. 30, 2017 (USD)	Six months Ended Jun. 30, 2016 (USD)
Rental expenses	33,880	19,135

Contingent payable to creditors of Mao Ren

b) As outlined in Note 54, the Company could not locate the third group of creditors of Mao Ren and could not settle any of their debts. Should these creditors come forward to claim their debt, there is a risk that the Company would be obligated to settle with these creditors and the potential ~~obligation~~ obligation could result in a liability to the Company. As at the date of these ~~financial~~ financial statements, the Company cannot reasonably estimate the amount of any ~~contingent~~ contingent payments to these creditors. During 2016, the courts liquidated a large plot of land and allocated proceeds to the Company. The courts did not set aside any amount for the creditors that cannot be reached and have not come forward to place the claim during the process, and therefore the Company believes it does not have a resulting financial liability to such creditor.

NOTE 14. ~~SEGMENTED~~ SEGMENT INFORMATION

The Company has two principal reportable segments, one of which is considered to be discontinued operations as at ~~June~~ September 30, 2017. These reportable segments were determined based on the nature of products and services offered. Reportable segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

~~Business~~The following table lists the Company’s operating ~~Segments~~results by segment:

	Six months ended Jun 30, 2017 (USD)	Six months ended Jun. 30, 2016 (USD)
	Nine months ended September 30, 2017	Nine months ended September 30, 2016
Travel Services*	0$ -	48$ 12,~~498~~581
Real Estate	(~~907~~161,~~867~~152)	(~~113~~160,~~067~~359)
Impairment of ancillary assets	(6,015,744)	0
Other	(1,110,355)	-
Net income (loss)	(6,923,611)	(64,569)
Impairment loss	(6,017,900)	-
Net loss	$ (7,289,407)	$ (147,778)

* The Company’s travel services business segment is considered to be a discontinued operations as at December 31, 2016 due to the dissolution of XO which is the only entity carrying out travel services. Further information about this segment is outlined in Note 3.

The following table lists the Company’s capital assets by geographical area:

Geographical Areas

	September 30, 2017	December 31, 2016
U.S.A.	$ 16,121	$ -
Taiwan	6,340,961	5,956,385
Japan	348,254	-
Capital assets	$ 6,705,336	$ 5,956,385

	Jun 30, 2017 (USD)	Dec. 31, 2016 (USD)
U.S.A.	28,720	0
Taiwan	6,384,939	5,956,385
Japan	348,254	-
Capital assets	6,761,913	5,956,385

NOTE 15. CONCENTRATIONS

Credit risk

Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents. The Company places its cash with high quality financial institutions. The majority of the Company’s cash is deposited with banks in Taiwan. The government-owned Central Deposit ~~Insurance~~ Insurance Corporation in Taiwan provides deposit insurance coverage limit of up to ~~NTD3~~to $98,994 (NT$3,000,000) per depositor. As of September 30, 2017, the Company had $49,867 held by banks in Taiwan.

NOTE 16. RESTATEMENT AND CORRECTION OF ERRORS

Subsequent to the issuance of the Company’s 2015 consolidated financial statements on May 6, 2016, the Company became aware of errors in ~~its determination of~~ certain previously ~~reported~~ reported amounts in its 2015 consolidated financial statements related to the acquistion of XO and Mao Ren and the application of its revenue recognition policy. These errors were related to the measurement of the purchase price allocation on acquistion dates and the subsequent measurement of these amounts as well as the recognition policy of the revenue from the travel services business. The Company has also identified other adjustments that have been corrected as part of this restatement, including classification of related party balances, and adjustments to accounts receivable and unearned revenue related to errors in revenue recognition. The errors in revenue recognition are related to the fact that the Company booked revenue on a gross basis instead of net basis in accordance with ASC 605-45 Revenue Recognition: Principal Agent Considerations. The purchase price allocation has been adjusted to reflect the ~~carrying~~estimated ~~amounts~~fair tovalue ~~the seller~~ of Mao Ren’s long-term receivable. The Company determined its previously ~~issued~~ issued consolidated financial statements should be restated to correct these errors. The following tables summarize the impact of the restatement on our ~~previously~~ previously reported consolidated balance sheets as atof ~~June~~September 30, 2016, ~~consolidated~~ consolidated statement of comprehensive loss, and consolidated statement of cash flows for the ~~three~~nine months period ended ~~June~~September 30, 2016.

Consolidated balance ~~sheets~~sheet at September 30, 2016:

	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2016
	As previously reported	Adjustments	As restated
	As previously reported	Adjustments	As currently reported (Restated)
	(USD)	(USD)	(USD)
Current assets
Cash	5$ 53,~~094~~424	0$ -	5$ 53,~~094~~424
Accounts receivable	0	285,363	285,363
Prepaid expenses and other current assets	1,325,808	(412,495)	913,313
Prepaid expenses and other current assets	469,898	(392,359)	77,539
Due from related parties	-	171,686	171,686
Current assets	~~474~~1,~~992~~379,232	(~~106~~240,~~996~~809)	~~367~~1,~~996~~138,423
Goodwill	1,167,726	(1,167,726)	0
Property and equipment, net	6,133,563	-	6,133,563
Long term receivables	27,406,587	(9,641,896)	17,764,691
Goodwill	1,194,674	(1,194,674)	-
Fixed assets	5,961,640	0	5,961,640
Long-term receivables	27,280,037	(10,096,718)	17,183,319
Other assets	78,~~977~~052	0-	78,~~977~~052
Total assets	35,018,808	(10,916,504)	24,102,304
Total Assets	$ 35,995,558	$ (11,532,201)	$ 24,463,357
Current liabilities
Accounts payable and accrued liabilities	~~475~~$ 506,~~910~~484	34$ (238,~~622~~903)	~~510~~$ 267,~~532~~581
Current liabilities	475,910	34,622	510,532
Due to related parties	-	22,199	22,199
Share capital	42,003,333	0	42,003,333
Total liabilities	506,484	(216,704)	289,780
Additional paid-in capital	24,000	0	24,000
Common stock	42,003,333	-	42,003,333
Additional paid-in capital	24,000	-	24,000
Treasury stock	(1,815,415)	(462,360)	(2,277,775)
Deficit	(4,034,216)	(11,023,972)	(15,058,188)
Subscription receivable	(2,963,389)	2,963,389	-
Accumulated other comprehensive loss	(1,634,804)	535,206	(1,099,598)
Accumulated deficit	(1,202,200)	(13,939,192)	(15,141,392)
Liabilities and Equity	35,018,808	(10,916,504)	24,102,304
Accumulated other comprehensive loss	(557,255)	122,666	(434,589)
Total Liabilities and Equity	$ 35,995,558	$ (11,532,201)	$ 24,463,357

Consolidated ~~statements~~statement of loss and comprehensive loss for the nine months ended September 30, 2016:

	Six Months Ended Jun. 30, 2016	Six Months Ended Jun. 30, 2016	Six Months Ended Jun. 30, 2016
	As previously reported	Adjustments	As currently reported (Restated)
	(USD)	(USD)	(USD)
Revenue	$ 482,421	$ (482,421)	$ -
Revenue	482,421	(482,421)	0
Cost of sales	479,129	(479,129)	-
Cost of sales	479,129	(479,129)	0
Gross profit	3,292	(3,292)	-
Gross profit	3,292	(3,292)	0
General and administrative expenses	280,342	(110,556)	169,786
General and administrative expenses	233,412	(110,556)	122,856
Gain (loss) from operations	(277,050)	107,264	(169,786)
Gain (Loss) from operations	(230,120)	107,264	(122,856)
Other income	9,427	-	9,427
Interest income	3	(3)	0
Net loss from continuing operations	(267,623)	107,264	(160,359)
Gain on sale of property	9,786	3	9,789
Net income from discontinued operations	-	12,581	12,581
Other loss	(363)	363	0
Net income (loss)	$ (267,623)	$ 119 845	$ (147,778)
Loss before income taxes	(220,694)	107,627	(113,067)
Loss per share - Basic and diluted	$ (0.02)	$ 0.00	$ (0.00)
Income tax expense	0	0	0
Weighted average shares outstanding - basic and diluted	10,723,343	29,002,215	39,725,558
Consolidated net Income	(220,694)	107,627	(113,067)
Net income (loss)	$ (267,623)	$ 119,845	$ (147,778)
Net income (loss) for the year	(220,694)	107,627	(113,067)
Foreign exchange translation	-	1,254,871	1,254,871
Basic and diluted loss per share	(0.02)	0.02	(0.00)
Total comprehensive loss	$ (267,623)	$ 1,374,716	$ 1,107,093
Weighted average number of common shares outstanding	10,723,343	29,002,215	39,725,558
Net income (loss)	(220,694)	107,627	(113,067)
Foreign exchange translation	0	0	0
Total comprehensive loss	(220,694)	107,627	(113,067)

Consolidated ~~statements~~ statement of ~~stockholder’s~~cash ~~equity~~flows for the nine months ended September 30, 2016:

	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2016
	As previously reported	Adjustments	As currently reported (Restated)
	(USD)	(USD)	(USD)
Net cash provided by (used in) operating activities	$ (123,100)	$ 165,343	$ 42,243
Share capital	42,003,333	0	42,003,333
Net cash provided by investing activities	42,767	77,200	119,967
Additional paid-in capital	24,000	0	24,000
Net cash used in financing activities	-	(130,362)	(130,362)
Treasury stock	(1,815,415)	(462,360)	(2,277,775)
Effect of exchange rate on cash	(2,368)	16,263	13,895
Deficit	(4,034,216)	(11,023,972)	(15,058,188)
Change in cash and cash equivalents during the period	(82,701)	128,444	45,743
Accumulated other comprehensive loss	(1,634,804)	535,206	(1,099,598)
Cash and cash equivalents, beginning of the period	136,125	(128,444)	7,681
Total Equity	34,542,898	-10,951,126	23,591,772
Cash and cash equivalents, end of the period	$ 53,424	$ -	$ 53,424

Consolidated statements of cash flows

	Six Months Ended Jun. 30, 2016	Six Months Ended Jun. 30, 2016	Six Months Ended Jun. 30, 2016
	As previously reported	Adjustments	As currently reported (Restated)
	(USD)	(USD)	(USD)
Net cash used in operating activities	(173,972)	127,024	(46,948)
Net cash from investing activities	43,071	(43,071)	0
Net cash from financing activities	0	0	0
Effect of exchange rate on cash	(130)	44,492	44,362
Change in cash during the year	(131,031)	128,445	(2,586)
Cash, beginning of the year	136,125	0	136,125
Cash, end of the year	5,094	128,445	133,539

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operation

This Quarterly Report on Form 10-Q contains "forward-looking" statements as such term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements consist of information relating to the Company that is based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. When used in this report, the words "anticipate," "believe," "estimate," "expect" and "intend" and words or phrases of similar import, as they relate to the Company or Company management, are intended to identify forward-looking statements. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitation, competitive factors, general economic conditions, customer relations, relationships with vendors, the interest rate environment, governmental regulation and supervision, seasonality, distribution networks, product introductions and acceptance, technological change, changes in industry practices, onetime events and other factors described herein and in other filings made by the Company with the Securities and Exchange Commission. Based upon changing conditions, should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected or intended. The Company does not intend to update these forward-looking statements.

BUSINESS OVERVIEW

San Lotus Holding Inc was incorporated in the State of Nevada on June 21, 2011. We changed our state of incorporation from the State of Nevada to the State of California ~~(the "Conversion")~~ on July 21, 2015. There are two main segments to our business - (1) travel services and (2) development of destination real estate.

Travel Services - this part of our business aims to market travel products to the growing "retired baby boomer" market, which was an initial focus on the Asian market, via developing and operating a global travel and leisure agency business. We also had plans to develop joint ventures with partners in Asia to develop further potential travel related services to the market.

The ~~significant~~ transaction to enter the travel business ultimately occurred on August 14, 2015, when we purchased XO Experience Inc. ("XO"), a company based in Rosemead, California. We purchased XO for $1 and a cash infusion of $150,000 into the business. XO was incorporated at the end of fiscal year 2013, although it had carried nominal business until the time of the purchase. This was a related party transaction because the owner of the travel business was also the Chairman of our Company at the time. He ~~has~~ resigned in January 2016. Our then chairman owned several other travel businesses at the time and the purpose of this transaction was to enable our Company to enter the travel market. In conjunction with the acquisition of XO, we had a series of various ~~letter~~letters of intent with other travel agencies in both Canada and the USUnited toStates to acquire their locations through our then Chairman's connections, including those travel agencies owned by him. We also explored ~~setting~~ the opportunities of setting up travel agencies in Taiwan and purchasing travel agencies in other ~~countries~~ countries in our quest to enter the international travel business. These ultimately ~~did~~ did not complete once our former chairman resigned in January 2016, and accordingly, our sole entrance into the market included only the purchase of XO.

XO provided two types of services - (1) Customers would purchase tour packages to their travel destinations through XO, including accommodation, ground transportation and arranged tours, etc. We would then purchase the actual tours from local tour operators who provide the services and we would mark up our services accordingly. Effectively, we act as agents to our customer. (2) We retail travel products, such as plane tickets, and earn commission from our suppliers. After the departure of our former Chairman in January 2016, we continued to operate XO, although experiencing challenges in operating the business without our former Chairman, who was also the previous owner of XO. During the fourth quarter of 2016, we ultimately decided to dissolve XO and are in the process of dissolving the company. We have therefore considered XO to be a discontinued operation.

XO was a brick and mortar location in 9368 Valley Boulevard, Suite 2, Rosemead California. Up until our exit of that business, that location also served as our principal executive office. Since the end of 2016, the location of the ~~principle~~principal office has been moved, by virtue of our executive team, to Taiwan under the address of 3F B302C, No. 185 Kewang Road, Longtan District, Taoyuan City, Taiwan. On December 31, 2016, our wholly-owned subsidiary, Green Forest Management Consulting Inc., a Taiwan (R.O.C.) corporation, ~~bought~~ entered into a purchase agreement to acquire the outstanding 300,000 shares of Da Ren International Insurance Brokers Co., Ltd from Wu, Ting–Kuang, the sole shareholder of Da Ren International Insurance Brokers Co.,Ltd, in exchange for $346,986 (NTD$10,500,000). And, on April 1, 2017, the transaction ~~buying the~~was ~~outstanding 300,000 shares of Da Ren International Insurance Brokers Co., Ltd has been~~ closed. The transaction was also disclosed in the current report on Form 8-K filed on January 3, 2017.

Development of Destination Real Estate - Prior to the acquisition of XO, we also acquired several parcels of land. We have not developed these properties, nor have we ~~currently~~entered ~~exited~~into ~~the~~any ~~travel~~contracts ~~business~~with ~~and~~developers. ~~are~~Until ~~focusing~~we onhave ~~our~~adequate ~~current~~cash ~~assets,~~for ~~being~~development ~~the~~work ~~rights~~or toobtain ~~land~~additional ~~proceeds~~financing, aswe ~~described~~will ~~below~~hold the land.

~~Development~~Although ofthere ~~Destination~~have ~~Real~~been ~~Estate~~a -number ~~Prior~~of attempts to acquire more land in the ~~acquisition~~past, ofour landmark XOevent occurred on March 31, 2015 when we ~~also~~purchased ~~acquired~~Mao Ren ~~several~~International ~~parcels~~Inc. ("Mao Ren"), a company incorporated under the laws of ~~lands~~Taiwan (R.O.C.). Mao Ren was set up as ~~described~~an entity, by and on behalf of creditors, to recover the remaining assets to a Taiwanese company. This Taiwanese company raised approximately $300 million (including all interest and penalties), to invest in ~~Item~~real ~~2properties~~estate deals in Taiwan. WeThis ~~have~~scheme ~~not~~promised above-market monthly ~~developed~~returns to approximately 3,000 investors and after several years of rapid expansion, it became evident that the scheme was unsustainable and resulted in its eventual collapse. After the collapse, these investors/creditors neither had the power nor the resources to recover their share of the money owed. After several attempts, Mao Ren was ultimately incorporated as a brand new entity to seek for liquidation of the properties owned by the debtor for and on behalf of the investors/creditors. Accordingly, ~~nor~~Mao ~~have~~Ren owned the liquidation rights to the properties of the debtor. While owning the liquidation rights to the properties of the debtor, Mao Ren was obligated to pay the creditors approximately $30 million (NTD 913,401,823). After our acquisition of Mao Ren, we ~~entered~~assumed ~~into~~the obligation ~~any~~paying ~~contracts~~the ~~with~~creditors the $30 million (NTD 913,401,823) on June 12, ~~developers~~2015. ~~Until~~This obligation was settled by issuing to the creditors and their designees 29,464,575 shares of our common stock on June 12, 2015. While the obligation was settled by the issuance of shares, we ~~have~~retain ~~adequate~~the ~~cash~~liquidation rights ~~for~~aforementioned. ~~development~~Mao ~~work~~Ren orhad ~~obtain~~initially assessed the value of the ~~additional~~liquidation ~~financing~~rights as $30 million (NTD 913,401,823) prior to acquisition. Upon our acquisition of Mao Ren, we ~~will~~have ~~hold~~reassessed the value of the liquidation rights as approximately $18 million (NTD 568,111,405) which included the cash proceeds received from the land ~~until~~sales ~~such~~that ~~time~~occurred in 2016.

~~Although~~Courts in ~~there~~Taiwan have ~~been~~recognized aour ~~number~~liquidation ofrights ~~attempts~~ to ~~acquire~~the ~~more~~properties ~~land~~of ~~in the past~~debtor, ~~our~~and ~~landmark~~therefore ~~event~~administer ~~occurred~~the onactual ~~March~~liquidation ~~31,~~of ~~2015~~the ~~when~~lands weof ~~purchased~~the ~~Mao~~debtor ~~Ren International~~with ~~Inc. ("~~Mao Ren~~"),~~ athat ~~company~~has ~~incorporated under~~ the ~~laws of~~priority ~~Taiwan~~to ~~(R.O.C.).~~receive ~~Mao~~the ~~Ren~~proceeds ~~was~~from ~~set~~such upliquidation. ~~as an entity, by and on behalf of~~During ~~creditors~~2016, ~~to recover~~ the ~~remaining~~courts ~~assets~~liquidated to a ~~Taiwanese~~large ~~company~~plot ~~out~~ of ~~Taiwan.~~ ~~The~~land ~~Taiwanese~~and ~~company~~allocated ~~relates~~proceeds toof ~~funds raised by a Taiwanese company,~~ approximately $~~300~~ 11 million (~~including all interest and penalties)~~NTD$347,702,849) to ~~invest~~Mao ~~in real~~Ren ~~estate deals in Taiwan. This scheme promised above-market monthly returns to close to 3,000 investors and after several years~~ of ~~rapid expansion~~which, ~~it became~~about ~~evident~~$1 ~~that~~million ~~the scheme~~ was ~~unsustainable~~placed ~~and resulted~~ in ~~its eventual~~ ~~collapse.~~escrow ~~After the collapse, these investors/creditors neither had the power nor the resources to recover their share of the money owed. After several attempts, Mao Ren was ultimately incorporated~~ as a ~~brand~~result ~~new entity to seek the liquidation to the properties~~ of ~~debtor~~dispute ~~for~~filed ~~and~~by onother ~~behalf of the investors/~~creditors. ~~Accordingly, Mao Ren owned the liquidation rights to the properties~~ of ~~debtor. While owning~~ the ~~liquidation~~Taiwanese ~~rights to the properties of debtor, Mao Ren was obligated to pay the creditors NTD$913,401,823~~company. ~~After our~~ ~~acquisition~~The ofcourts ~~Mao~~did ~~Ren,~~not weset ~~assumed~~aside ~~the~~any ~~obligation~~amount ~~paying~~for the creditors ~~the~~that ~~NTD$913,401,823~~cannot be onreached ~~June~~and ~~12,~~have ~~2015.~~not ~~The~~come ~~obligation~~forward ~~was settled by issuing~~ to ~~them~~place ~~and their designees29,464,575 shares of our common stock on June 12, 2015. While~~ the ~~obligation~~ ~~was~~claim ~~settled~~during by the ~~issuance of shares~~process, ~~we retain the liquidation~~and ~~rights~~therefore ~~aforementioned.~~we believe Mao Ren ~~had~~does ~~initially~~not ~~assessed~~have ~~the~~a ~~value~~resulting offinancial ~~the liquidation~~liability ~~rights as NTD$913,401,823prior~~ to ~~acquisition. But, we have~~ ~~reassessed~~such ~~the~~creditor ~~value~~as of the ~~liquidation~~date ~~rights~~of asthis ~~NTD$568,111,416 which incorporated the cash proceeds received from the land sales that occurred in 2016~~report.

Courts in Taiwan have recognized our liquidation rights to the properties of debtor, and therefore administer the actual liquidation of the lands of the debtor with Mao Ren that has the priority to receive the proceeds from such liquidation. During 2016, the courts liquidated a large plot of land and realized proceeds of NTD$304,792,503. The courts did not set aside any amount for the creditors that cannot be reached and have not come forward to place the claim during the process, and therefore we believe Mao Ren does not have a resulting financial liability to such creditor as of the date of this report.

Currently, the courts are in the process of liquidating the remaining land parcels and we expect to realize cash from those sales during fiscal year 2017 and going forward. Once we realize the cash, our plans are to look at other plots of land in Asia, with a focus on the real property in Japan.

We have begun to acquire the ancillary assets and know-how to augment the two main segments to our main businesses. These ancillary assets and know-how include asthe ~~follows~~following: (1) intellectual property rights on media assets and media ~~production~~ production capabilities and (2) proprietary research knowledge on tourism development in Japan and holding structure for future overseas development. These intellectual property rights on media assets and media production capabilities were acquired as a result of ~~the~~agreements ~~significant~~entered ~~transaction~~ to purchase AHI Film Inc. and AHI Records Inc. on August 31, 2016. These transactions were closed on January 1, 2017. The said media assets, which are held under these two companies and their subsidiaries, include, but ~~are~~ not limited to, a feature motion picture; professional-grade photographs; professional-grade video footages; two completed music albums; and one semi-completed music album as well as other miscellaneous items. On April 23, 2017, AHI Film Inc. formed ~~following~~four ~~LLC~~ subsidiaries:, Brownstone, LLC; Anotherotto, LLC; Backstage Pass, LLC; and Penelope Pitstop, LLC, to produce films. Each of the foregoing Limited Liability Companies will produce a film. Through the acquisitions, key personnel have been retained to ensure that ~~crucial~~the crucial functions to media production are kept in house for future development. We have concluded that these transactions were asset acquisitions. Separately, due to significant projected capital investments into Japan, the substantial efforts, in both time and resources, are devoted to develop and acquire the knowledge on the Japanese economy as a whole. Through ~~the~~an ~~significant~~agreement ~~transaction~~entered on August 31, 2016 and subsequently closed on January 1, 2017 to purchase San Lotus Holding Inc. registered in British Virgin Islands (the “San Lotus Holding Inc. (BVI)”), we have acquired proprietary research knowledge on tourism development in Japan. The said proprietary knowledge includes, but is not limited to, historical research; economic statistics report; geographic analysis; real estate investment analysis; and most notably tourism specific research with particular focus on destination real estate development.

Additionally, San Lotus Holding Inc. (BVI) will be used as a holding structure for future overseas development. During April and June, 2017, San Lotus Holding Inc. (BVI) ~~has~~ acquired an aggregate of 6,830~~.03 square~~ square meters of lands in Kyushu, Japan. ~~The~~for ~~detail~~a oftotal ~~the~~purchase ~~acquisition~~price ~~is summarized~~of as$348,254. ~~follows:~~

Item	Name	Contract Date	Closing Date	Type of Property	Area/㎡
1	Yufuin City, Oita Prefecture, Kyushu	2017/6/23	2017/6/29	Land	1,222.49
2	Yufuin City, Oita Prefecture, Kyushu	2017/6/22	2017/6/29	Land	3,192
3	Kirishima City, Kagoshima Prefecture, Kyushu	2017/4/21	2017/6/21	Land	2,415.54
				Total	6,830.03

EMERGING GROWTH COMPANY STATUS

We qualify as an "emerging growth company" under the Jumpstart Our Business Startups Act (the "JOBS Act"). As a result, we are permitted to rely on exemptions from certain disclosure requirements. For so long as we are an emerging growth company, we will not be required to:

●	have an auditor report on our internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act;

●	comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor's report providing additional information about the audit and the financial statements (i.e., an auditor discussion and analysis);

●	submit certain executive compensation matters to shareholder advisory votes, such as "say-on-pay" and "say-on-frequency"; and

●	disclose certain executive compensation related items such as the correlation between executive compensation and performance and comparisons of the CEO's compensation to median employee compensation.

In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards.

We will remain an "emerging growth company" for up to five years, or until the earliest of (i) the last day of the first fiscal year in which our total annual gross revenues exceed $1 billion, (ii) the date that we become a "large accelerated filer" as defined in Rule 12b-2 under the Securities Exchange Act of 1934, which would occur if the market value of our ordinary shares that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter or (iii) the date on which we have issued more than $1 billion in non-convertible debt during the preceding three year period.

RESULTS OF OPERATIONS

~~The~~Comparison ~~following~~of ~~table~~Three ~~summarizes~~Months ~~our~~Ended ~~historical~~September ~~condensed~~30, ~~consolidated~~2017 ~~statements~~and ~~of operations data.~~2016

~~SAN~~Revenues. We ~~LOTUS~~generated ~~HOLDING~~revenue ~~INC.~~of ~~AND~~$17,594 ~~SUBSIDIARIES~~and ~~CONDENSED~~$0 ~~CONSOLIDATED~~for the ~~STATEMENTS~~three OFmonths ~~OPERATIONS~~ended ~~AND~~September ~~COMPREHENSIVE~~30, ~~LOSS~~2017 ~~FOR~~and ~~THE~~2016, ~~SIX~~respectively. ~~MONTHS~~The ~~ENDED~~increase was ~~JUNE~~mainly 30attributable to the acquisition of Da Ren International Insurance Brokers Co., ~~2017~~Ltd ~~AND~~in ~~2016~~April ~~(UNAUDITED)~~2017.

	2017	2016
	(Unaudited)	(restated)
Revenue - insurance commission	15,196	0
Cost of sales	0	0
Gross profit	15,196	0
General and administrative expenses	919,186	122,856
Profit (Loss) from Operations	(903,990)	(122,856)
Other income (expenses)
Interest income	0	3
Other Income (Loss)	(3,347)	9,786
Impairment loss	(6,015,744)	0
Foreign exchange loss	(911)	0
Total other income (expense)	(6,020,002)	9,789
Loss before income taxes	(6,923,992)	(113,067)
Income taxes expense	0	0
Net Income (Loss)	(6,923,992)	(113,067)
Loss attributable to non-controlling interest	(381)	0
Consolidated net Income	(6,923,611)	(113,067)
Loss from continuing operations	(6,923,611)	(113,067)
Income from discontinued operations	0	48,498
Net income (loss) for the year	(6,923,611)	(64,569)
Net Loss Per Share
Basic and Diluted	(0.17)	0.00
Weighted Average Shares Outstanding:
Basic and Diluted	39,725,558	39,725,558
Net Loss	(6,923,611)	(64,569)
Foreign exchange translation	975,350	781,886
Total comprehensive loss	(5,948,261)	717,317

General and administrative expenses. We incurred general and administrative expenses of $378,123 and $46,930 during the three months ended September 30, 2017 and 2016, respectively. The increase was mainly attributable to the acquisition of AHI Film Inc. and Da Ren International Insurance Brokers Co., Ltd in 2017.

Other income (expenses). Other expenses were $4,886 and $362 for the three months ended September 30, 2017 and 2016, resepectively. The increase was mainly due to the loss incurred by AHI Film Inc.

Net loss from continuing operations. Net loss from continuing operations is $365,415 and $47,292 for the three months ended September 30, 2017 and 2016, respectively. This increase was primarily attributable to the additional expenses related to AHI FILM INC. and Da Ren International Insurance Brokers Co., Ltd.

Comparison of Nine Months Ended September 30, 2017 and 2016

Revenues. We generated revenue of $32,790 and $0 during the nine months ended September 30, 2017 and 2016, respectively. The increase was mainly attributable to the acquisition of Da Ren International Insurance Brokers Co., Ltd in April 2017.

General and Administrative Expenses. We incurred general and administrative expenses of $1,297,309 and $169,786 during the nine months ended September 30, 2017 and 2016, respectively. The increase was mainly attributable to the acquisitons of AHI Film Inc. and Da Ren International Insurance Brokers Co., Ltd.

Impairment loss

Impairment loss was $6,017,900 for the nine months ended September 30, 2017 and was related to the intangible assets acquired through the acquisitions in 2017. There was no impairment loss for the nine months ended September 30, 2016.

Other income (expenses), net. Other expenses were $6,988 for the nine months ended September 30, 2017 and other income was $9,427 for the nine months ended September 30, 2016. Other income for the nine months ended September 30, 2016 was mainly related to the gain on sale of 2 vehicles of $9,786.

Net loss As a result of the above factors, we experienced a net loss of approximately $7,289,407 and $147,788 for the nine months ended September 30, 2017 and 2016, representing an increase of approximately $7,141,629. This increase was primarily due to the impairment loss related to the intangible assets acquired through the acquisitions in 2017.

Liquidity and Capital Resources

~~Excluding~~We ~~our planned acquisitions, we~~ expect the ~~running~~operation of San Lotus Holding Inc.; Green Forest Management Consulting Inc.; Da Ren International Development Inc.; Da Ren International Insurance Brokers Co., Ltd; Mao Ren International Inc.; ~~XO Experience Inc.;~~ AHI Film Inc.; AHI Records Inc.; and San Lotus Holding Inc. in British Virgin Islands to require approximately $~~2,040,000to~~ 1.7 million to carry out planned operations for the next 12 months. This includes as follows:

We expect our monthly expenses to continue at the rate of approximately $~~170~~130,~~000after~~000 after December 31, 2016, not including the costs we will incur in running any of our planned acquisitions or embarking on any real estate development activities. To meet our needs for cash required for sustaining our businesses and completing our planned acquisitions, we will need to generate sufficient revenues or require additional funding.

As of ~~June~~September 30, 2017, we had $~~347~~241,~~245cash~~548 incash the bank; $54,383cash held by our wholly-owned Taiwan (R.O.C.) subsidiary, Green Forest Management Consulting Inc.; $326cash held by our wholly-owned Taiwan (R.O.C.) subsidiary, Da Ren International Development Inc.;$112,993cash held by our wholly-owned Taiwan (R.O.C.) subsidiary, Da Ren International Insurance Brokers Co., Ltd; $5,422cash held by our wholly-owned Taiwan (R.O.C.) subsidiary Mao Ren International Inc.; $129,831cash held by our wholly-owned California subsidiary, AHI Film Inc.; $2,868cash held by our wholly-owned California subsidiary, AHI Record Inc, and ~~$5,799cash~~cash ~~held by our wholly-owned British Virgin Island subsidiary, San Lotus Holding Inc~~equivalents. ~~(BVI).~~

Our cash used in operating activities for the nine months ended September 30, 2017 was $1,803,543 compared to $42,243 cash provided by the operating activities for the nine months ended September 30, 2016. The increase of cash used in operating activates was primarily attributable to the acquisitions of AHI Film Inc., AHI Record Inc. and Da Ren International Insurance Brokers Co. Ltd in 2017.

Our cash used in investing activities for the nine months ended September 30, 2017 was $540,948 compared to $119,967 cash provided by investing activities for the nine months ended September 30, 2016. During the nine months ended September 30, 2017, we paid $184,366 (net of cash acquired) to acquire AHI Film Inc., AHI Record Inc. and Da Ren International Insurance Brokers Co. Ltd and paid $356,582 to acquire properties in Japan. During the nine months ended September 30, 2016, We collected $929,013 of the long-term receivable and advanced $812,758 to AHI Film, Inc.

Our cash used in financing activities for the nine months ended September 30, 2017 was $5,339,401 compared to $130,362 for the nine months ended September 30, 2016. The increase of cash used in financing activities for the nine months ended September 30, 2017 was mainly related to payments made to related parties for liabilities assumed from our 2017 acquisitions.

If we require additional funding to complete our planned acquisitions, we will actively seeking additional funding by completing a private placement of our equity securities and/or mortgage our land. But, there can be no assurance we will be funded as such. And, there can be no assurance that our existing shareholders will provide us with additional capital. Finally, if we are unable to generate sufficient revenue and/or obtain additional funding, we may have to cease operations entirely. We cannot guarantee that our operations and proceeds from any funding will be sufficient for us to continue as going concern.

Tabular disclosure of contractual obligations

Contractual obligations	Payments due by period			3-5 years	More than 5 years
	Total	Less than 1 year	1-3 years
[Long-Term Debt Obligations]
[Capital Lease Obligations]
[Operating Lease Obligations]	$90,609	$63,025	$27,584
[Purchase Obligations]
[Other Long-Term Liabilities Reflected on the Registrant's Balance Sheet under GAAP]
Total	$90,609	$63,025	$27,584

Going Concern

The accompanying consolidated financial statements were prepared on a going concern basis, which assumes the realization of assets and discharge of liabilities in the normal course of business. As shown in the accompanying consolidated financial statements, we had an accumulated deficit of $-23,~~405~~771,~~966as~~094 as of ~~June~~ September 30, 2017.

We face all the risks common to companies at the ~~development~~ early stage, including capitalization and uncertainty of funding sources, high initial expenditure levels, uncertain revenue streams and difficulties in managing growth. Our losses raise substantial doubt about its ability to continue as a going concern. ~~Our consolidated financial statements do not reflect any adjustments that might result from the outcome of this uncertainty.~~

InWe ~~addition,~~are wecurrently ~~advanced~~addressing anour ~~additional~~liquidity ~~$6,047,831~~issue by continually seeking investment capital through private placements of common stock and debt. Our expected cash receipts to ~~AHI~~fund ~~Film~~our liabilities ~~Inc~~are through the realization of our long-term receivable. ~~(“AHI~~We ~~Film”),~~believe our current and future plans enable us to continue as a ~~company~~going ~~that~~concern. ~~was~~Our ~~acquired~~ability ~~subsequent~~to achieve these objectives cannot be determined at this time. These consolidated financial statements do not give effect to ~~December~~any ~~31,~~adjustments ~~2016~~which would be necessary should we be unable to continue as a going concern and therefore be required to realize our assets and discharge our liabilities other than the normal course of business and at amounts which may differ from those in the accompanying consolidated financial statements.

WeCritical ~~are~~Accounting currently addressing its liquidity issue by continually seeking investment capital through private placements of common stock and debt. Our expected cash receipts tofund its liabilities are through the realization of its long term receivable. We believe our current and future plans enable it to continue as a going concern. Our ability to achieve these objectives cannot be determined at this time. These consolidated financial statements do not give effect to any adjustments which would be necessary should we are unable to continue as a going concern and therefore be required to realize its assets and discharge its liabilities other than the normal course of business and at amounts which may differ from those in the accompanying consolidated financial statements.Policies

~~Critical~~It is our goal to clearly ~~Accounting~~present ~~Polices~~our financial information in a manner that enhances the understanding of our sources of earnings and cash flows, as well as our financial condition. We do this by including the information required by the SEC, as well as providing additional information that gives further insight into our financial operations. Our financial report includes a discussion of our accounting principles, as well as methods and estimates used in the preparation of our financial statements. We believe these discussions and statements fairly represent the financial position and operating results of our company. The purpose of this portion of our discussion is to further emphasize some of the more critical areas where a significant change in facts and circumstances in our operating and financial environment could cause a change in future reported financial results.

It is our goal to clearly present our financial information in a manner that enhances the understanding of our sources of earnings and cash flows, as well as our financial condition. We do this by including the information required by the SEC, as well as providing additional information that gives further insight into our financial operations. Our financial report includes a discussion of our accounting principles, as well as methods and estimates used in the preparation of our financial statements.We believe these discussions and statements fairly represent the financial position and operating results of our company. The purpose of this portion of our discussion is to further emphasize some of the more critical areas where a significant change in facts and circumstances in our operating and financial environment could cause a change in future reported financial results.

Impact of Accounting Pronouncements

~~There~~We believe there were no recent accounting pronouncements that ~~have~~ had a material effect on the Company's financial position or results of operations.

Recently Issued Accounting Policies

WeIn ~~have~~May ~~implemented~~2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update, (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which supersedes nearly all ~~new~~existing revenue recognition guidance under U.S. ~~accounting~~GAAP. ~~pronouncements~~The core principle is that a company should recognize revenue when promised goods or services are transferred to customers in ~~effect~~an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ~~These~~ASU ~~pronouncements~~2014-09 ~~did~~defines ~~not~~a ~~have~~five-step process to achieve this core ~~any~~principle ~~material~~and, ~~impact~~in ondoing so, more judgment and estimates may be required within the ~~financial~~revenue ~~statements~~recognition ~~unless~~process ~~otherwise~~than ~~disclosed~~are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2017, and weinterim doperiods ~~not~~therein, ~~believe~~and ~~that~~shall ~~there~~be ~~are~~applied ~~any~~either ~~other~~retrospectively ~~new~~to ~~accounting~~each period ~~pronouncements~~presented ~~that~~or as a cumulative-effect adjustment as of the date of ~~have~~adoption. ~~been~~In May 2016, the FASB issued ~~that~~Accounting ~~might~~Standards ~~have~~Update No. 2016-12, Revenue from Contracts with Customers. This update provides further guidance on applying collectability criterion to assess whether the contract is valid and represents a ~~material~~substantive transaction on the basis whether a customer has the ability and intention to pay the promised consideration. The requirements of this standard include an increase in required disclosures. Management has not yet selected a transition method and is currently analyzing the impact of the adoption of this guidance on ~~our~~the Company’s consolidated financial ~~position~~statements, orincluding ~~results~~assessing changes that might be necessary to information technology systems, processes and internal controls to capture new data and address changes in financial reporting. We believe that the adoption of ~~operations~~the standard will not have a significant impact on its consolidated financial statements.

We do not believe that there are any other new accounting pronouncements that have been issued but not yet adopted will have a material impact on our financial position or results of operations.

OFF-BALANCE SHEET ARRANGEMENTS

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition or results of operations.

Item 3. Quantitative and Qualitative Disclosures about Market Risks.

We do not take positions or engage in transactions in risk-sensitive market instruments in any substantial degree, nor as defined by SEC rules and instructions. Based on the nature of our current operations, we have not identified any issues of market risk at this time.

Item 4. Controls and Procedures.

Disclosure Controls and Procedures

The Company's management, including the Chairman and Chief Financial Officer, evaluated the Company's disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act), as of ~~June~~September 30, 2017. Based on this evaluation, the Chairman ~~and~~ and Chief Financial Officer concluded that the Company's disclosure controls and procedures are not effective to ensure that the information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms. There were no changes in our internal controls over financial reporting during the period covered by this report that ~~have~~ have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

~~Management's~~Changes ~~Report~~in on Internal Control Over ~~over~~ Financial Reporting

~~Our~~The ~~management~~Company's ~~is responsible~~management, ~~for~~including ~~establishing~~the Chairman and ~~maintaining~~Chief ~~adequate~~Financial Officer reviewed our internal control over financial reporting, (as defined ~~under~~in rules ~~Exchange Act Rules~~ 13a-15(f) and 15d-15(f)~~. Our~~) ~~internal~~under ~~control over financial reporting is a process designed to provide reasonable assurance regarding~~ the ~~reliability~~Exchange ofAct ~~financial~~as ~~reporting and the preparation~~ of ~~financial statements for external purposes in accordance with~~September accounting principles generally accepted in the United States of America. Internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that30, ~~in reasonable~~2017 ~~detail, accurately~~ and ~~fairly~~concluded ~~reflect the transactions and dispositions of the Company's assets, (2) provide reasonable assurance~~ that ~~transactions~~ ~~are~~no ~~recorded~~changes asoccurred ~~necessary to permit preparation of financial statements~~ in ~~accordance~~such ~~with~~control ~~generally~~or ~~accepted accounting principles, and that the Company's receipts and expenditures are being made only~~ in ~~accordance~~other ~~with~~factors ~~authorizations~~during of the ~~Company's~~quarter ~~management~~ended ~~and~~September ~~directors~~30, ~~and (3) provide~~2017 ~~reasonable~~that ~~assurance~~have ~~regarding~~materially ~~prevention or timely detection of unauthorized acquisition~~affected, ~~use,~~ or ~~disposition~~are ofreasonably ~~the~~likely ~~Company's assets that could~~to ~~have~~materially aaffect, ~~material~~our ~~effect~~internal oncontrol ~~the~~over financial ~~statements~~reporting.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management assessed the effectiveness of our internal control over financial reporting and organizational governance as of June 30, 2017. In making this assessment, Management used the criteria set forth by the Committee of Sponsoring Organizations of the Tread way Commission (COSO) in Internal Control—Integrated Framework. Management's assessment included an evaluation of the design of the Company's internal control over financial reporting and testing of the operational effectiveness of its internal control over financial reporting. Management reviewed the results of its assessment with the Audit Committee of the Board of Directors. Based on our assessment, we believe that our internal controls over financial reporting and organizational governance were not effective because of following deficiencies as of June 30, 2017: (i) the lack of U.S. GAAP expertise of our chief financial officer, (ii) the lack of U.S. GAAP expertise of our internal accounting staff, and (iii) the company’s failure to have a board of directors consisting of a majority of independent directors and our lack of a director who qualifies as an audit committee financial expert as defined in Item 407(d)(5)(ii) of Regulation S-K. Because of these deficiencies, it is reasonably possible that our internal controls over financial reporting may not have prevented or detected errors from occurring that could have been material, either individually or in the aggregate. We will be addressing these deficiencies in the near term as the Company develops.

The Company's independent registered public accounting firm, Davidson & Company LLP, has not audited the Company's internal control over financial reporting as of June 30, 2017.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

Our management knows of no material existing or pending legal proceeding, litigation or claim against us, nor are we involved as a plaintiff in any material existing legal proceeding or pending legal proceeding, litigation or claim except discussed as follows. In November 2015, after an auction administered by the court in Taiwan, our debtor’s land in Yilan County, Taiwan was sold for ~~NTD~~$16,935,354 (NTD 546,656,000 ) (“Auction Price”). The portion of Auction Price to which ~~Mao~~we ~~Ren~~are ~~International~~entitled ~~Inc.~~to ~~(“Mao Ren”)~~ is ~~entitled is NTD~~$9,332,772 (NTD 301,252,556). ~~But,~~ ~~in fact~~However, in December 2016, ~~NTD~~only $8,023,793 (NTD 259,000,000 ) was paid to ~~Mao~~us ~~Ren~~ and the ~~remainder~~ remaining amount of $1,308,980 (NTD$42,252,556) is still subject to an objection. Collectability of the $1,308,980 (NTD$42,252,556) is ~~uncertain; accordingly we have not~~ ~~recorded this amount as a receivable~~uncertain.

Item 1A. Risk Factors.

There is no any material changes from risk factors as previously disclosed in our Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3. Defaults Upon Senior Securities.

None

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

None.

Item 6. Exhibits.

Exhibit Number		Description
31.1	*	Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	*	Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	**	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS		XBRL Instance Document
101.SCH		XBRL Taxonomy Schema
101.CAL		XBRL Taxonomy Calculation Linkbase
101.DEF		XBRL Taxonomy Definition Linkbase
101.LAB		XBRL Taxonomy Label Linkbase
101.PRE		XBRL Taxonomy Presentation Linkbase

* Filed herewith.

** This certification is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, as amended (Exchange Act), or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	SAN LOTUS HOLDING INC.
Date: August 10, 2017	By:	/s/Chen, Kuan-Yu
Date: November 14, 2017	By:	/s/Chen, Kuan-Yu
		Chen, Kuan-Yu Chairman

Date: August 10, 2017	By:	/s/ Lin, Mu-Chen
Date: November 14, 2017	By:	/s/Lin, Mu-Chen
		Lin, Mu-Chen Chief Financial Officer and
		Principal Accounting Officer

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