10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended   September 30, 2016

¨ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _______

Commission File Number: 000-53730

EFT HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Nevada	22-1211204
(State or other jurisdiction of	(I.R.S. Employer Identification No.)
incorporation or organization)

17800 Castleton St., Suite 300

City of Industry, CA 91748

(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number including area code: (626) 581-3335

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 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   ¨

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 (§232.405 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   ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Larger accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	x

Indicate by check mark whether registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  ¨     No   x

As of November 14, 2016, the registrant had 75,983,201 outstanding shares of common stock.

INDEX

		Page
	Part I — Financial Information
Item 1.	Financial Statements.	4
	Consolidated Balance Sheets as of September 30, 2016 and March 31, 2016 (Unaudited)	4
	Consolidated Statements of Operations for the Three and Six Months Ended September 30, 2016 and 2015 (Unaudited)	5
	Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended September 30, 2016 and 2015 (Unaudited)	6
	Consolidated Statements of Cash Flows for the Six Months Ended September 30, 2016 and 2015 (Unaudited)	7
	Notes to Consolidated Financial Statements for the Six Months Ended September 30, 2016 and 2015 (Unaudited)	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	23
Item 4.	Controls and Procedures	23
	Part II — Other Information
Item 1.	Legal Proceedings.	24
Item 1A.	Risk Factors.	24
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	24
Item 3.	Defaults Upon Senior Securities.	24
Item 4.	Mine Safety Disclosures.	24
Item 5.	Other Information.	24
Item 6.	Exhibits.	24
Signatures		25

2

Cautionary Statement

This quarterly report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These statements relate to future events or the Company’s future financial performance. The Company has attempted to identify forward-looking statements by terminology including “anticipates,” “believes,” “expects,” “can,” “continues,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “should” or “will” or the negative of these terms or other comparable terminology. Such statements are subject to certain risks and uncertainties, including the matters set forth in this report or other reports or documents the Company files with the Securities and Exchange Commission from time to time, which could cause actual results or outcomes to differ materially from those projected. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, levels of activity, performance or achievements. Undue reliance should not be placed on these forward-looking statements which speak only as of the date hereof. The Company undertakes no obligation to update these forward-looking statements. The Company’s expectations are as of the date this Form 10-Q is filed, and the Company does not intend to update any of the forward-looking statements after the date this quarterly report on Form 10-Q is filed to conform these statements to actual results, unless required by law. All of the forward-looking statements are qualified in their entirety by reference to the factors discussed under Item 1A. “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended March 31, 2016 as filed with the Securities and Exchange Commission.

3

PART I - FINANCIAL INFORMATION

Item 1.         Financial Statements.

EFT HOLDINGS, INC.

Consolidated Balance Sheets

(Unaudited)

	September 30, 2016			March 31, 2016
ASSETS
Current assets
Cash and cash equivalents	$	1,131,219		$	3,427,666
Securities available for sale		732,950			810,344
Inventories		189,109			221,439
Prepaid expenses		188,677			510,510
Related party receivable		-			1,000,000
Other receivables		357,110			440,663
Total current assets		2,599,065			6,410,622
Property and equipment, net		10,295,046			10,129,691
Security deposit		366,787			357,408
Total assets	$	13,260,898		$	16,897,721
LIABILITIES AND EQUITY (DEFICIENCY)
Current liabilities
Accounts payable	$	1,783,191		$	2,013,078
Related party payable		452,500			222,500
Commission payable		3,667,391			3,682,236
Other liabilities		5,289,346			6,601,774
Unearned revenues		3,193,556			3,201,936
Short-term loan		-			258,308
Contingent liabilities		123,988			205,087
Total liabilities		14,509,972			16,184,919
Equity (deficiency)
EFT Holdings, Inc. stockholders’ equity (deficiency):
Preferred stock, $0.001 par value, 25,000,000 shares authorized, none issued and
outstanding		-			-
Common stock, $0.00001 par value, 4,975,000,000 shares authorized, 75,983,201
shares issued and outstanding at September 30, 2016 and March 31, 2016		760			760
Additional paid in capital		52,854,891			52,854,891
Accumulated deficit		(54,155,174	)		(51,997,694	)
Accumulated other comprehensive income (loss)		113,361			(86,495	)
Total EFT Holdings, Inc. stockholders’ equity (deficiency)		(1,186,162	)		771,462
Non-controlling interest		(62,912	)		(58,660	)
Total equity (deficiency)		(1,249,074	)		712,802
Total liabilities and equity (deficiency)	$	13,260,898		$	16,897,721

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

4

EFT HOLDINGS, INC.

Consolidated Statements of Operations

(Unaudited)

	Three Months Ended						Six Months Ended
	September 30,			September 30,			September 30,			September 30,
	2016			2015			2016			2015
Sales revenues, net	$	62,494		$	145,398		$	148,725		$	221,714
Shipping charges		5,483			12,473			11,907			36,524
Total revenues, net		67,977			157,871			160,632			258,238
Cost of sales		44,370			67,841			99,155			115,909
Shipping costs		70			320			327			495
Total cost of revenues		44,440			68,161			99,482			116,404
Gross profit		23,537			89,710			61,150			141,834
Operating expenses:
Selling, general and administrative expenses		895,317			1,212,407			1,986,937			2,557,604
Provision for inventory obsolescence		11,395			-			20,967			6,409
Royalty expenses - related party		125,000			125,000			250,000			250,000
Total operating expenses		1,031,712			1,337,407			2,257,904			2,814,013
Operating loss		(1,008,175	)		(1,247,697	)		(2,196,754	)		(2,672,179	)
Other income/(expense)
Interest income		11,612			26,233			24,003			46,972
Interest expense		(1,590	)		(506	)		(4,543	)		(43,419	)
Settlement of previously accrued interest for income tax		-			962,991			-			962,991
Gain/(loss) on disposal of securities available for sale
(includes $(10,301) and $13,463 accumulated other
comprehensive (loss)/income reclassifications for
unrealized net gains on securities available for sale
for the six months ended September 30, 2016 and
2015, respectively)		1,290			(9,258	)		1,302			(12,850	)
Foreign exchange loss		(169	)		(108	)		(973	)		(516	)
Other income		5,165			5,133			18,102			22,190
Total other income		16,308			984,485			37,891			975,368
Loss before income taxes		(991,867	)		(263,212	)		(2,158,863	)		(1,696,811	)
Income tax expense (benefit)		-			(3,965,606	)		2,869			(3,965,606	)
Net income (loss)		(991,867	)		3,702,394			(2,161,732	)		2,268,795
Loss from non-controlling interest		2,272			1,955			4,252			4,176
Net income (loss) attributable to EFT Holdings, Inc.	$	(989,595	)	$	3,704,349		$	(2,157,480	)	$	2,272,971
Net income (loss) per share
Basic and diluted	$	(0.01	)	$	0.05		$	(0.03	)	$	0.03
Net income (loss) per common share attributable to EFT
Holdings, Inc.
Basic and diluted	$	(0.01	)	$	0.05		$	(0.03	)	$	0.03
Weighted average common shares outstanding
Basic and diluted		75,983,201			75,983,201			75,983,201			75,983,201

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

5

EFT HOLDINGS, INC.

Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)

	Three Months Ended						Six Months Ended
	September 30,			September 30,			September 30,			September 30,
	2016			2015			2016			2015
Net income (loss)	$	(991,867	)	$	3,702,394		$	(2,161,732	)	$	2,268,795
Other comprehensive income/(loss)
Foreign currency translation adjustment		175,077			(43,710	)		199,242			(39,720	)
Unrealized income/(loss) on securities available for sale		(2,850	)		(4,218	)		614			(18,095	)
Comprehensive income (loss)		(819,640	)		3,654,466			(1,961,876	)		2,210,980
Less: Comprehensive loss attributable to
non-controlling interests		(2,272	)		(1,955	)		(4,252	)		(4,176	)
Comprehensive income (loss) attributable to EFT Holdings, Inc.	$	(817,368	)	$	3,656,421		$	(1,957,624	)	$	2,215,156

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

6

EFT HOLDINGS, INC.

Consolidated Statements of Cash Flows
(Unaudited)

	Six Months Ended
	September 30,			September 30,
	2016			2015
Cash flows from operating activities:
Net income (loss)	$	(2,161,732	)	$	2,268,795
Adjustments to reconcile net income (loss) to net cash used in operating
activities:
Depreciation and amortization		98,461			78,376
(Gain)/loss from securities available for sale		(1,302	)		12,850
Provision for inventory obsolescence		20,967			6,409
Loss on disposal of fixed assets		-			11,432
Settlement of previously accrued income tax, penalty and interest					(5,290,788	)
Changes in operating assets and liabilities:
Inventories		10,121			51,768
Prepaid expenses		321,258			297,583
Other receivables		(329	)		149,635
Accounts receivable		85,087			23,692
Accounts payable		(229,348	)		269,599
Commission payable		(14,845	)		(95,040	)
Other liabilities		(1,484,447	)		403,955
Unearned revenues		(8,380	)		(780	)
Contingent liabilities		(74,838	)		-
Net cash used in operating activities		(3,439,327	)		(1,812,514	)
Cash flows from investing activities:
Additions to fixed assets		(1,708	)		(1,249	)
Purchase of securities available for sale		(3,100	)		(33,452	)
Proceeds from available for sale securities		82,071			1,251,706
Proceeds from related party receivable		1,000,000			-
Net cash provided by investing activities		1,077,263			1,217,005
Cash flows from financing activities:
Repayment of short-term loan		(258,308	)		(281,240	)
Related party payable		230,000			226,250
Net cash used in financing activities		(28,308	)		(54,990	)
Effect of exchange rate changes on cash		93,925			(23,951	)
Net decrease in cash		(2,296,447	)		(674,450	)
Cash, beginning of period		3,427,666			2,332,595
Cash, end of period	$	1,131,219		$	1,658,145
Supplemental disclosures of cash flow information:
Interest expenses paid in cash	$	2,320		$	2,526

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

7

EFT HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Note 1 – ORGANIZATION

EFT Holdings, Inc., “EFT Holdings” or the “Company,” formerly EFT Biotech Holdings, Inc., was incorporated in the State of Nevada on March 19, 1992.  The Company’s business is classified by management into two reportable segments: online and beverage. These reportable segments are two distinct businesses, each with a different customer base, marketing strategy and management structure. Substantially all of the Company’s revenue is generated from Mainland China.

Note 2 – GOING CONCERN

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has negative working capital of $11,910,907 and an accumulated deficit of $54,155,174 as of September 30, 2016, and it reported net operating losses for the past two fiscal years. The Company expects to continue incurring losses for the foreseeable future and may need to raise additional capital from external sources in order to continue the long-term efforts contemplated under its business plan. These circumstances, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

The Company expects to continue incurring losses for the foreseeable future and may need to raise additional capital from external sources in order to continue the long-term efforts contemplated under its business plan. The Company is in the process of reevaluating its current marketing strategy as it relates to the sale of its current product line. In addition, the Company is pursuing other revenue streams which could include strategic acquisitions or possible joint ventures of other business segments.

Note 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the unaudited financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position as of September 30, 2016 and the results of operations and cash flows for the periods ended September 30, 2016 and 2015. The financial data and other information disclosed in these notes to the interim financial statements related to these periods are unaudited. The results for the three and six months ended September 30, 2016 are not necessarily indicative of the results to be expected for any subsequent periods or for the year ending March 31, 2017. The balance sheet at March 31, 2016 has been derived from the audited financial statements at that date.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the Securities and Exchange Commission’s rules and regulations. These unaudited financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended March 31, 2016 as included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2016.

Certain amounts have been reclassified to conform to current year presentation.

Principles of consolidation

The consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned except for Digital Development Partners Inc., “Digital”, which is 91.7% owned by the Company. All material intercompany transactions and balances have been eliminated.

Uses of estimates in the preparation of financial statements

The preparation of financial statements in conformity with generally accepted accounting principles 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 revenues and expenses during the reporting period. Actual results could differ from those estimates. These estimates and assumptions include determining the fair market value of the Company’s inventory, the collectability of accounts receivable, the value of deferred taxes and related valuation allowances. Certain of the Company’s estimates, including evaluating the collectability of accounts receivable and the fair market value of inventory, could be affected by external conditions, including those particular to the Company’s industry, and general economic conditions. It is possible that these external factors could have an effect on the Company’s estimates that could cause actual results to differ from the Company’s estimates. The Company re-evaluates all of its accounting estimates at least quarterly based on these conditions and records adjustments when necessary.

8

Fair value measurements

ASC Topic 820 defines fair value, establishes a framework for measuring fair value and enhances disclosure requirements for fair value measurements. This topic does not require any new fair value measurements. ASC Topic 820 defines fair value as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, ASC Topic 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:

Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 — Other inputs that are directly or indirectly observable in the marketplace.

Level 3 — Unobservable inputs which are supported by little or no market activity.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. In accordance with ASC Topic 820, the Company measures its securities available for sale at fair value. The securities available for sale are classified within Level 1 since they are valued using quoted market prices.

Revenue / Unearned Revenue

The Company’s revenue recognition policy is in accordance with the requirements of Staff Accounting Bulletin, “SAB,” No. 104, Revenue Recognition, “SAB 104,” ASC Topic 605, Accounting for Consideration Given by a Vendor to a Customer, Including a Reseller of the Vendor’s Products, and other applicable revenue recognition guidance and interpretations.  Sales revenue is recognized when a formal arrangement exists with the customers, the price is fixed or determinable, the delivery is completed, no other significant obligations of the Company exist and collectability is reasonably assured.  Payments received before all relevant criteria for revenue recognition are satisfied are recorded as unearned revenue, which is recorded as a liability until the products are delivered. Sales are recorded when the products are received by Affiliates and risk of ownership has passed.

The Company pays commissions to the Affiliates based upon, among other things, their purchases from the Company and purchases by other Affiliates who were recommended to the Company. Commissions paid to the Company’s Affiliates are considered to be a reduction of the selling prices of its products, and are recorded as a reduction of revenue.  The Company’s policy is to pay out commission to Affiliates upon receipt of sales orders even before revenue can be recognized.

Recent accounting pronouncements

There are no new accounting pronouncements adopted or enacted during the three and six months ended September 30, 2016 that had, or are expected to have, a material impact on the Company’s financial statements.

Note 4 – SECURITIES AVAILABLE FOR SALE

Securities available for sale consist of the following:

	September 30, 2016
	Amortized		Unrealized		Unrealized			Market		Average
	Cost		Gains		Losses			Value		Duration (1)
Corporate bonds	$	155,132	$	2,018	$	(2,932	)	$	154,218		4.55
Corporate notes		576,258		7,777		(5,303	)		578,732		1.57
Total debt securities	$	731,390	$	9,795	$	(8,235	)	$	732,950

	March 31, 2016
	Amortized		Unrealized		Unrealized			Market		Average
	Cost		Gains		Losses			Value		Duration (1)
Corporate bonds	$	235,901	$	2,276	$	(2,773	)	$	235,404		4.67
Corporate notes		573,497		5,720		(4,277	)		574,940		2.07
Total debt securities	$	809,398	$	7,996	$	(7,050	)	$	810,344

(1) Average remaining duration to maturity, in years.

9

All securities were classified as available for sale as of each date presented.

The following table shows the gross unrealized losses and fair value of the Company’s investments, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, as of September 30, 2016:

	Less than 1 year				1 Year or More					Total
	Market		Unrealized		Market		Unrealized			Market		Unrealized
	Value		Losses		Value		Losses			Value		Loss
Corporate bonds	$	-	$	-	$	69,411	$	(2,932	)	$	69,411	$	(2,932	)
Corporate notes		-		-		257,732		(5,303	)		257,732		(5,303	)
Total debt securities	$	-	$	-	$	327,143	$	(8,235	)	$	327,143	$	(8,235	)

Declines in the fair value of available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses to the extent the impairment is related to credit losses. The amount of the impairment related to other factors is recognized in other comprehensive income. In estimating other-than-temporary impairment losses, management considers, among other things: (i) the length of time and the extent to which the fair value has been less than cost; (ii) the financial condition and near-term prospects of the issuer; and (iii) the intent and ability to retain the investment in the issuer for a period of time sufficient to allow for any anticipated recovery of cost.

There were 5 securities in an unrealized loss position at September 30, 2016. Management does not intend to sell any of the securities classified as available for sale which have unrealized losses and believes that it is not likely that the Company will have to sell any such securities before a recovery of cost. The unrealized losses are largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased and are not the result of deteriorated credit quality. The fair value is expected to recover as the bonds approach their maturity or re-pricing date or if market yields for such investments decline. Management does not believe such securities are other-than-temporarily impaired due to reasons of credit quality.

Investment securities with a book value of $80,769 were sold during the six months ended September 30, 2016. The Company recognized a gain of $1,302 on the sale of those securities.

Note 5 – INVENTORIES

The components of inventories were as follows:

	September 30, 2016		March 31, 2016
Raw materials and supplies	$	39,321	$	40,537
Finished goods		149,788		180,902
	$	189,109	$	221,439

Note 6 – LOANS TO RELATED PARTIES AND RELATED PARTY TRANSACTIONS 

The Company uses the “EFT” name, a trademark owned and licensed to it by EFT Assets Limited (“EFT Assets”), a company that Wendy Qin, a director of EFT International Ltd., served as a director until March 2015. The Company is required to pay an annual royalty to EFT Assets equal to a percentage of its gross sales for the previous fiscal year. The percentage is 5% for the first $30 million in gross sales, 4% for the $10 million in gross sales in excess of $30 million, 3% for the $10 million in gross sales in excess of $40 million; 2% for the $10 million in gross sales in excess of $50 million; and 1% for the $10 million in gross sales in excess of $60 million, with a minimum annual royalty of $500,000. EFT Assets is owned by a number of persons, including Wendy Qin. Ms. Qin is the sister of Jack Jie Qin, the Company’s president. During each of the six months ended September 30, 2016 and 2015, the Company accrued $250,000 of royalties payable to EFT Assets.

In March 2010, the Company’s subsidiary, EFT International Ltd., entered into a consulting agreement with JFL Capital Limited (“JFL”), a company of which Wendy Qin serves as a director and is one of the principal shareholders. Under this agreement,  JFL will provide consulting services on administration, financial matters, corporate planning and business development commencing on April 1, 2010, with an annual fee of $315,000. The annual fee is increased at the rate of $15,000 each year starting from April 1, 2011. The agreement may be terminated by either party on three months’ written notice. For the six months ended September 30, 2016 and 2015, the Company accrued consulting fees payable to JFL of $202,500 and $195,000, respectively.

10

From April 1, 2014 to April 1, 2015, the Company rented 2,500 square feet of office space with a monthly rent of $10,735 for its satellite training center located at Suite 3706, Langham Office Tower, 8 Argyle Street, Kowloon, Hong Kong SAR. From April 1 through June 24, 2015, the monthly rent was $15,319. The former office location is owned by a number of persons, including Wendy Qin, a director of EFT (HK) Ltd and the sister of Jack Jie Qin, the Company’s president.  During the six months ended September 30, 2015, the Company paid the lessors $42,983. The lease was terminated on June 24, 2015.

In February 2016, the Company advanced $1,000,000 to President Jack Qin for the prepayment of amounts relating to business development activities planned by the Company. The advance was not used and was repaid to the Company in June 2016.

Note 7 – OTHER CURRENT LIABILITIES

Accrued and other current liabilities consist of the following:

	September 30, 2016		March 31, 2016
Payroll liabilities	$	42,590	$	42,593
Warranty liabilities		1,471		1,589
Accrued commission		179,047		1,583,740
Accrued contingent guarantee		4,587,596		4,453,755
Accrued expenses		337,064		379,985
Interest and penalty for income tax accrued		138,413		136,190
Others		3,165		3,922
	$	5,289,346	$	6,601,774

Note 8 – CONTINGENT LIABILITIES

In 2009, the Company’s subsidiary, Tianquan, engaged a general contractor to construct a water manufacturing plant for RMB4,758,600 ($766,000). Upon completion, EFT inspected the plant and found several material construction defects, including, but not limited to, the fact that the contractor used inferior construction material, inconsistent construction plans and substandard insulation material. As a result, EFT conditioned its final construction payment to the contractor in the amount of RMB698,896 ($112,500) on the rectification of all construction defects. On March 22, 2012, the contractor brought a case against EFT in Baiquan People’s Court in Heilongjiang Province seeking approximately RMB1,912,000 ($308,000) of purported outstanding payments under the contract and interest thereon. On January 16, 2014, Tianquan received an unfavorable decision issued by Baiquan People’s Court in Heilongjiang Province awarding the contractor approximately RMB1,326,916 ($199,536) of purported outstanding payments under the contract and interest thereon. The Company filed an appeal with Qiqihar Intermediate People’s Court and recorded contingent liabilities of RMB1,326,916 ($199,536). On January 5, 2016, the Company’s subsidiary, Tianquan, received an unfavorable decision issued by Baiquan People’s Court awarding the contractor approximately RMB827,000 ($123,988) of purported outstanding payments under the contract and interest thereon. The Company filed an appeal of the decision. On July 18, 2016, Baiquan People’s Court dismissed the appeal. The Company revised the contigent liabilities to RMB827,000 ($123,988). (See Note 12)

Note 9 – SHORT-TERM LOAN

The Company received a $503,200 loan from a third party, Insurance Financing, Inc., “IFI”, to finance the directors’ and officers’ insurance premium for the fiscal years 2014 and 2015. The loan bore an interest rate of 3.60% per annum, and was to be repaid over a nine-month period which began on December 15, 2014. The terms of the agreement allowed for the Company to make nine equal payments of $56,753 each and the loan was fully repaid during the quarter ended September 30, 2015.

The Company renewed coverage for the 2015-2016 periods and received a new loan in the amount of $462,170 from IFI to finance the directors’ and officers’ insurance premium bearing an interest rate of 3.60% per annum. The loan was to be repaid over a nine-month period beginning on December 15, 2015. The terms of the agreement allowed for the Company to make nine equal payments of $52,126 each and the loan was fully repaid during the quarter ended September 30, 2016.

Note 10 – INCOME TAXES

The Company was incorporated in the United States and has operations in five tax jurisdictions - the United States, the Hong Kong Special Administrative Region, “HK SAR”, mainland China, Taiwan, and the BVI.

The Company’s BVI operations are not subject to any taxes according to BVI tax law. The Company’s HK SAR subsidiaries are subject to a 16.5% profit tax based on its taxable net profit. EFT (HK) Ltd provides management service to a BVI subsidiary, and the BVI subsidiary reimburses EFT (HK) Ltd for its total operating expenses plus a 5% mark up, and the income is subject to a 16.5% profit tax. The Company’s U.S. operations are subject to income tax according to U.S. tax law.

11

The Company’s Taiwan subsidiary, EFTI, and its factory in mainland China are subject to a 17% and 25% standard enterprise income tax, respectively, based on its taxable net profit. These operations have incurred net accumulated operating losses for income tax purposes and management believes that it is more likely than not that these net accumulated operating losses will not be utilized in the future. Therefore, it has provided full valuation allowance for the deferred tax assets arising from the losses as of September 30, 2016 and 2015.

The income tax expense consists of the following:

	Six Months Ended September 30,
	2016		2015
Current:
Domestic – Federal	$	-	$	-
– State		2,869		-
Foreign		-		-
Deferred		-		-
Effect of IRS audit		-		(3,965,606	)
Income tax expense	$	2,869	$	(3,965,606	)

A reconciliation of income taxes, with the amounts computed by applying the statutory federal income tax rate, 37% for the six months ended September 30, 2016 and 2015, to income before income taxes for the six months ended September 30, 2016 and 2015, is as follows:

	Six Months Ended September 30,
	2016			2015
Income tax provision (benefit) at U.S. statutory rate	$	(797,206	)	$	(626,275	)
State tax		2,869			-
Deferred tax valuation allowance		796,270			774,322
Nondeductible expenses		936			(148,047	)
Effect of IRS audit		-			(3,965,606	)
Income tax expense	$	2,869		$	(3,965,606	)

The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S., income tax examinations by tax authorities for tax years before the year ended March 31, 2007.

The Company has not provided deferred taxes on unremitted earnings attributable to international companies that have been considered to be reinvested indefinitely. Because of the availability of U.S. foreign tax credits, it is not practicable to determine the income tax liability that would be payable if such earnings were not indefinitely reinvested. In accordance with ASC Topic 740, interest associated with unrecognized tax benefits is classified as income tax and penalties are classified in selling, general and administrative expenses in the statements of operations.

The extent of the Company’s operations involves dealing with uncertainties and judgments in the application of complex tax regulations in a multitude of jurisdictions. The final taxes paid are dependent upon many factors, including negotiations with taxing authorities in various jurisdictions and resolution of disputes arising from federal, state and international tax audits. The Company recognizes potential liabilities and records tax liabilities for anticipated tax audit issues in the United States and other tax jurisdictions based on its estimate of whether, and the extent to which, additional taxes will be due.

Note 11 – SEGMENT INFORMATION

The Company’s business is classified by management into two reportable business segments: online and beverage. The online business reportable segment is an aggregation of the Company’s online operating segments, which are organized to sell the Company’s products to Affiliates through its websites. The online business reportable segment derives revenue from the sales of nutritional products, personal care products and EFT-phones and access fees for its network platform. The beverage business reportable segment derives revenue and expense from the bottled water factory in Baiquan, Heilongjiang Province, the PRC. Unallocated items comprise mainly corporate expenses and corporate assets.

12

Although substantially all of the Company’s revenue is generated from Mainland China, the Company is organizationally structured along business segments. The accounting policies of each of the Company’s operating segments are the same as those described in Note 3, “Summary of Significant Accounting Policies.”

The following tables provide the business segment information as of and for the three and six months ended September 30, 2016 and 2015. Income tax allocations have been determined based on statutory rates in the applicable business segment.

	Three months ended September 30, 2016
	Online			Beverage			Unallocated
	business			business			items			Total
Total revenues, net	$	67,977		$	-		$	-		$	67,977
Total cost of revenues		(44,440	)		-			-			(44,440	)
Gross profit		23,537			-			-			23,537
Operating expenses:
Selling, general and administrative expenses		410,806			(34,278	)		518,789			895,317
Provision for inventory obsolescence		11,395			-			-			11,395
Royalty expenses		125,000			-			-			125,000
Total operating expenses		547,201			(34,278	)		518,789			1,031,712
Net operating income (loss)		(523,664	)		34,278			(518,789	)		(1,008,175	)
Other income		14,934			1			1,373			16,308
Allocated income tax expense		-			-			-			-
Income (loss) after income tax		(508,730	)		34,279			(517,416	)		(991,867	)
Total long-lived assets		768			610,496			9,683,782			10,295,046
Additions to long-lived assets		-			-			-			-

	Three months ended September 30, 2015
	Online			Beverage			Unallocated
	business			business			items			Total
Total revenues, net	$	157,871		$	-		$	-		$	157,871
Total cost of revenues		(68,161	)		-			-			(68,161	)
Gross profit		89,710			-			-			89,710
Operating expenses:
Selling, general and administrative expenses		404,486			40,776			767,145			1,212,407
Royalty expenses		125,000			-			-			125,000
Total operating expenses		529,486			40,776			767,145			1,337,407
Net operating loss		(439,776	)		(40,776	)		(767,145	)		(1,247,697	)
Other income		14,935			1			969,549			984,485
Allocated income tax benefit		-			-			3,965,606			3,965,606
Income (loss) after income tax		(424,841	)		(40,775	)		4,168,010			3,702,394
Total long-lived assets		2,475			780,423			641			783,539
Additions to long-lived assets		1,249			-			-			1,249

	Six months ended September 30, 2016
	Online			Beverage			Unallocated
	business			business			items			Total
Total revenues, net	$	160,632		$	-		$	-		$	160,632
Total cost of revenues		(99,482	)		-			-			(99,482	)
Gross profit		61,150			-			-			61,150
Operating expenses:
Selling, general and administrative expenses		830,731			13,574			1,142,632			1,986,937
Provision for inventory obsolescence		20,967			-			-			20,967
Royalty expenses		250,000			-			-			250,000
Total operating expenses		1,101,698			13,574			1,142,632			2,257,904
Net operating loss		(1,040,548	)		(13,574	)		(1,142,632	)		(2,196,754	)
Other income		36,926			1			964			37,891
Allocated income tax expense		-			-			(2,869	)		(2,869	)
Loss after income tax		(1,003,622	)		(13,573	)		(1,144,537	)		(2,161,732	)
Total long-lived assets		768			610,496			9,683,782			10,295,046
Additions to long-lived assets		-			-			1,708			1,708

13

	Six months ended September 30, 2015
	Online			Beverage			Unallocated
	business			business			items			Total
Total revenues, net	$	258,238		$	-		$	-		$	258,238
Total cost of revenues		(116,404	)		-			-			(116,404	)
Gross profit		141,834			-			-			141,834
Operating expenses:
Selling, general and administrative expenses		853,872			87,290			1,616,442			2,557,604
Provision for inventory obsolescence		6,409			-			-			6,409
Royalty expenses		250,000			-			-			250,000
Total operating expenses		1,110,281			87,290			1,616,442			2,814,013
Net operating loss		(968,447	)		(87,290	)		(1,616,442	)		(2,672,179	)
Other income		41,440			1			933,927			975,368
Allocated income tax benefit		-			-			3,965,606			3,965,606
Income (loss) after income tax		(927,007	)		(87,289	)		3,283,091			2,268,795
Total long-lived assets		2,475			780,423			641			783,539
Additions to long-lived assets		1,249			-			-			1,249

Note 12 – LITIGATION

On August 2, 2010, the Company commenced a legal proceeding against Marinteknik Shipbuilders (S) Pte Ltd. and six other persons in the High Court of the Republic of Singapore alleging fraud, misrepresentation, and deceit on the part of the defendants with respect to the Company’s investment in Excalibur. The Company claims that the wrongful actions of the defendants resulted in damages of $19,000,000 to the Company. On December 11, 2012, the High Court issued a decision whereby it dismissed the Company’s actions against Marinteknik and Lim Lan Eng (Priscilla), a director of Marinteknik. On January 8, 2013, the Company filed an appeal against the decision made by the High Court. On November 29, 2013, the appellate court issued its order and sustained the High Court’s decision and awarded legal fees to the defendants. The Company has accrued a liability in the amount of $200,000 for the legal costs. The High Court dismissed the appeal by the Company, but criticized the defendants, stating that their actions were “wholly lacking in probity” and “likely also to have been unlawful”. After seeking further legal advice and balancing all factors, however, it was decided that commencing further legal proceedings on this matter is not beneficial to the commercial interests of the Company. On October 15, 2015, the High Court determined that the Company is obligated to bear the defendants’ legal costs of approximately SGD 307,000. On February 18, 2016, the Commercial Affairs Department issued a letter to confirm completion of the investigation of the report by the Company regarding Lim Lam Eng (Priscilla) and Marinteknik Shipbuilders (S) Pte Ltd. and confirmed their view that no evidence of a criminal offense was disclosed and they will not be pursuing the matter further.

On March 4, 2016, the Company received a letter from its solicitor RHT requesting legal fees in the amount of approximately SGD 85,000. The Company refused to pay the solicitor’s legal fees because the Company believed that it was inadequately represented by the solicitor. On June 19, 2016, the solicitor filed a claim with the High Court of Singapore for the legal fees in the amount of approximately SGD85,000. On October 31, 2016, the High Court issued a judgment in favor of the solicitor for that amount plus interest and costs.

On June 9, 2016, Lim Lan Eng Priscilla and Marinteknik filed an action against EFTI in the Supreme Court of the State of New York, County of New York. The action sought summary judgment on their claims for fees in the sum of $162,720.38, arising out of the Singapore High Court’s determination that plaintiffs were entitled to an award of their fees and costs in connection with the Singapore litigation. After consulting with counsel, EFTI declined to contest the summary judgment and judgment was entered in the Supreme Court for the sum of $162,720.38 in favor of the plaintiffs.

14

In 2009, the Company’s subsidiary, Heilongjiang Tianquan Manor Soda Drinks Co. Ltd., “Tianquan”, engaged a general contractor, the “Contractor”, to construct a water manufacturing plant, the “Plant”, for RMB 4,758,600 ($776,300). Upon completion, the Company inspected the Plant and found several material construction defects, including, but not limited to, the fact that the Contractor used inferior construction material, inconsistent construction plans and substandard insulation material. As a result, in 2010, the Company conditioned its final construction payment to the Contractor in the amount of RMB 698,896 ($112,500) on the rectification of all construction defects. On March 22, 2012, the Contractor brought a case against Tianquan in Baiquan People’s Court in Heilongjiang Province seeking approximately RMB 1,912,000 of purported outstanding payments under the contract and interest thereon. On January 16, 2014, the Company’s subsidiary, Tianquan, received an unfavorable decision issued by Baiquan People’s Court in Heilongjiang Province awarding the contractor approximately RMB1,326,916 of purported outstanding payments under the contract and interest thereon. Tianquan filed an appeal with the Qiqihar Intermediate People’s Court on January 27, 2014. On August 18, 2014, the Qiqihar Intermediate People’s Court issued a judgment rescinding the unfavorable decision issued by the Baiquan People’s Court and ordered the case to be reheard at the Baiquan People’s Court. On September 25, 2014, Tianquan received a favorable decision from Baiquan People’s Court as the court concluded that the company stamps affixed to all of the Contractor’s legal documents were fake. On November 5, 2014, the subcontractor brought another civil case against Tianquan in the Baiquan People’s Court in Heilongjiang Province seeking RMB 1,823,787 of purported outstanding payments under the same contract and interest thereon. On December 8, 2014, Tianquan filed a civil lawsuit against the sub-contractor for compensation for material construction defects. On December 31, 2015, the two cases were reheard at the Baiquan People’s Court and the sub-contractor changed the claim to the amount of RMB 1,123,266. On January 5, 2016, the Company’s subsidiary, Tianquan, received an unfavorable decision issued by Baiquan People’s Court awarding the contractor approximately RMB 827,000 of purported outstanding payments under the contract and interest thereon. The Court ordered the subcontractor to reimburse the amount of RMB 120,000 for testing fees to the Company. The Company filed an appeal of the order awarding the contractor approximately RMB827,000 of purported outstanding payments under the contract and accrued interest. On August 17, 2016, Baiquan People’s Court dismissed the appeal of the order awarding the contractor approximately RMB827,000 of purported outstanding payments under the contract and interest thereon.

On January 30, 2015, a class action entitled Wang, et al. v. EFT Holdings, Inc., et al. was filed on behalf of a putative class of all purchasers of the Company’s products against the Company and certain of its current and former officers and directors in the United States District Court for the Central District of California. On April 29, 2015, the court consolidated this action with the Li, et al. v. Qin, et al. and Li, et al. v. EFT Holdings, Inc., et al. actions. On May 7, 2015, Plaintiffs filed a motion for class certification, which was fully briefed by the parties. On December 14, 2015, the court denied Plaintiffs’ motion for class certification. On April 6, 2016, the parties stipulated to a voluntary dismissal of Plaintiffs’ claims with prejudice.

On December 6, 2013, the Company named George Curry, a former director and officer of the Company, as one of the defendants in the Superior Court of California, County of Los Angeles, with reference to the CTX investment transaction, in which the Company alleges, among other things, that Mr. Curry breached his fiduciary duty and committed fraud and misrepresentation in respect of the Company’s investment in CTX.

On April 18, 2014, George Curry filed a Notice of Removal for the above action to be brought in the District Court of California, Los Angeles (Western District). In the same action, he brought a counterclaim against the Company, Jack Qin and Pyng Soon and sought implied and equitable indemnity, declaratory relief and apportionment of fault. On or around December 11, 2014, George Curry filed a motion for summary judgment against the Company and all other cross defendants in the matter. The motion was heard on February 26, 2015 and the court denied George Curry’s motion. Thereafter, a second motion for summary judgment was filed by Mr. Curry. That motion was denied as well. The final resolution of the entire matter is still pending. Trial is currently scheduled for February 7, 2017. In addition, the Court consolidated the trial of this matter with that of the Company’s lawsuit against CTX, Buckman, Buckman & Reid and Peter Lau.

On March 4, 2015, the Company filed a civil lawsuit in the United States District Court, Central District of California, against CTX, Buckman, Buckman & Reid, Cliff Rhee and Peter Lau alleging breach of covenant of good faith and fair dealing, breach of fiduciary duty, fraud, misrepresentation, concealment, negligent misrepresentation and negligence.

On April 14, 2015, Defendant CTX filed a motion to dismiss. On May 28, 2015, the court granted CTX’s motion, in part, with leave to amend. The Company filed a First Amended Complaint on June 8, 2015, asserting causes of action for: (1) breach of covenant of good faith and fair dealing; (2) breach of fiduciary duty; (3) fraud-misrepresentation; and (4) fraud-concealment. On June 24, 2015, CTX filed an answer to the First Amended Complaint. Buckman, Buckman & Reid and Peter Lau also filed a motion to dismiss the Complaint. The Court granted the motion with respect to the breach of fiduciary duty claim, with leave to amend, but denied it as to all other claims. After the Company’s filing of its First Amended Complaint, Buckman, Buckman & Reid and Peter Lau filed an answer to the First Amended Complaint on July 9, 2015.

On May 26, 2016, the Court struck CTX’s Answer to the Complaint and entered a default judgment. The Company thereafter submitted a default judgment package. On September 6, 2016, the court, after reviewing the default judgment package, entered judgment against CTX, and in favor of the Company, in the amount of $2,500,000.

On April 1, 2016, Buckman, Buckman & Reid and Peter Lau filed a motion with the court to compel the matter to arbitration, thereby seeking to avoid a jury trial. The Company opposed the motion, arguing that there was no applicable arbitration provision, and seeking to retain the right to a jury trial. After extensive briefings, and following oral argument, on June 2, 2016, the Court denied Buckman, Buckman & Reid and Peter Lau’s motion to compel arbitration. The Court thereafter scheduled the trial for February 7, 2017. The Company continues to engage in discovery in preparation for the upcoming trial.

On June 22, 2015, a complaint entitled Greenstone Holdings, Inc. v. EFT Holdings, Inc., et al. was filed in the United States District Court for the Central District of California, asserting a claim for express indemnity against the Company, in excess of $150,000. After negotiations, the Company entered into a confidential settlement with Greenstone Holdings, Inc. on April 14, 2016.

15

Note 13 – SUBSEQUENT EVENTS

The Company has reviewed its subsequent events through the date these consolidated financial statements were issued and has determined that no material subsequent events have occurred through such date.

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Products

The Company sells 27 different nutritional products, some of which are oral sprays; 21 different personal care products; an environmentally protective automotive product; an environmentally friendly house cleaner; and a flip top portable drinking container that contains a filter to remove impurities from the water. The Company’s products are biodegradable and are not regulated by federal, state or local environmental laws or environmental laws of its key target markets.

The Company generally does not have a return policy but it does provide a warranty for its products. The specific warranty terms and conditions vary depending upon the product sold, but generally include replacement of defective products, but no refunds, during the six month period following a sale. Historically, the Company’s warranty expenses have not been material.

Manufacturing

The Company’s products are manufactured by third-party vendors and are packaged under its brand. The packaging for its products clearly states the country of manufacture, which is currently the United States in most cases. The Company does not have any long-term supply contracts or agreements with any manufacturers. The Company orders its products directly from vendors, on an “as-needed” or “expected need” basis. Raw materials used in the manufacture of the Company’s products are readily available and are not in short supply. The Company is not a party to any agreement for the purchase or delivery of raw materials.

From 2009 through 2012, the Company constructed a factory and water plant to produce bottled natural soda water in Baiquan, Heilongjiang Province, China. The bottled water factory is fully constructed and all manufacturing equipment has been purchased. After obtaining all the required licenses and passing ISO22000 requirements, the factory started production in April 2013, but production was suspended because Tianquan was sued by a contractor who constructed the water plant. The production is expected to resume when the lawsuit is closed.

None of the Company’s vendors account for a significant portion of its business and all of them can be replaced on short notice. The Company does not have any binding commitments or manufacturing agreements with any of its vendors.

Sales

The Company sells its products primarily through its website and only to “Affiliates.” To become an Affiliate, a customer must be referred by another Affiliate and make a minimum purchase of $450 ($400 worth of products plus $50 for shipping and handling fees). After that point, the new Affiliate is not required to make any additional purchases, pay membership fees, buy products, resell products, recruit others, or attend meetings. Free educational classes are offered to the Company’s Affiliates so they can learn more about the Company’s products and how to use them.

As of November 1, 2016, the Company had received 1,259,111 orders from its Affiliates, most of whom were located in China and Hong Kong. For the six months ended September 30, 2016, the Company did not have any sales activities in the United States. None of the Company’s Affiliates account for a significant portion of its business.

The Company pays its Affiliates a commission on products ordered from the Company. The commission is approximately 58% of the total dollar amount of the order. Commissions are considered a reduction of the sales price of the Company’s products and are reflected in the Company’s financial statements as a reduction in revenue. The commissions earned by each Affiliate are held in book entry form. The Affiliate can use the commissions to pay for new orders. With this process, the Company reduces operating expense and eliminates cumbersome accounting chores such as issuing checks and reconciling bank statements.

Full payment is required in U.S. Dollars prior to shipment of any products. In most cases, once payment is received, products ordered are shipped directly by the Company’s third party manufacturers to the Company’s distribution centers in Hong Kong and China. Once the products are received at the distribution centers, they are shipped to the Affiliate placing the order.

EFT-Phone and ToByTo reward program

In February 2010, the Company assigned the worldwide distribution and servicing rights to a product known as the “EFT-Phone” to Digital Development Partners, Inc., “Digital”, previously an unrelated company, in exchange for 79,265,000 shares of Digital’s common stock. The shares the Company acquired represent approximately 92% of Digital’s outstanding common stock. The EFT-Phone is a cell phone which uses the Android operating system. The worldwide distribution and servicing rights to the EFT-Phone include the right to sell the EFT-Phone to the Company’s Affiliates and others. Digital also acquired the rights to distribute all EFT-Phone accessories. Digital began distributing EFT-Phones in July 2010.

16

Starting from December 2010, the Company introduced reward programs to its Affiliates. For example, upon joining a $3,000 program, each Affiliate must pay $3,000 as a non-refundable deposit. When the Affiliate sponsors one new Affiliate, the Company will reward the first Affiliate with a $1,500 instant sponsor bonus. When the first Affiliate sponsors at least two new Affiliates, and those two new Affiliates each also sponsor two new Affiliates, the first Affiliate will have completed the first cycle of the program. The Company will then reward the first Affiliate with an additional $1,500 bonus and deliver an EFT-phone and an e-pad for the cost of $1. After the completion of the first cycle, each Affiliate will enter into the matrix of the second cycle. Upon completion of the second cycle, the Company will reward the first Affiliate with $3,000. For each subsequent cycle thereafter within the matrix, each Affiliate will need to sponsor a new Affiliate in each cycle in order to qualify for the reward.

On April 1, 2012, the Company assigned network access rights to ToByTo Limited, “ToByTo”, a third-party company. The network access rights to ToByTo Limited include the right to access EFT’s Affiliate database for ToByTo’s marketing campaign, and provides access to EFT’s e-money system to facilitate sales activities. ToByTo, in return, compensates EFT by paying access fees in an amount equal to 10% of the respective enrollment fee of every Affiliate who enters the ToByTo e-phone program or another agreed upon amount. During the six months ended September 30, 2016 and 2015, the Company agreed to waive the access fees in lieu of ToByTo agreeing to purchase a portion of the Company’s overstocked inventory.

eZGT Travel Program

In May 2011, the Company introduced to its Affiliates a series of travel programs attracting Affiliates to enjoy the benefits of travelling internationally. To participate in the Traveler programs, one must initially make a non-refundable deposit according to the programs’ requirements. When the Affiliate completes a cycle of the program he joined, he will receive a bonus reward and the Affiliate only needs to pay $1 for his or her own trip. The reward system of the travel program is similar to the ToByTo reward program.

On April 1, 2012, the Company assigned network access rights to eZGT Limited, a third party. The network access rights to eZGT Limited include the right to access EFT’s Affiliate database for eZGT’s marketing campaign, and provides access to EFT’s e-money system to facilitate sales activities. eZGT Limited, in return, compensates EFT by paying access fees in an amount equal to 10% of the respective enrollment fee of every Affiliate who enters the $300 and $3,000 travel programs or another agreed upon amount. However, for Affiliates who enter the $800 and $8,000 travel programs, eZGT will only pay access fees in the amount of $30 and $300, respectively. During the six months ended September 30, 2016 and 2015, the Company agreed to waive the access fees in lieu of eZGT Limited agreeing to purchase a portion of the Company’s overstocked inventory for an agreed upon period of time.

Market Environment

The nutritional supplement and cosmetic e-business markets have and continue to become increasingly competitive and are rapidly evolving. Barriers to entry are minimal and current and new competitors can launch new websites at a relatively low cost. Many competitors in this area have greater financial, technical and marketing resources than the Company does. Continued advancement in technology and increasing access to that technology is paving the way for growth in direct marketing. The Company also faces competition for consumers from retailers, duty-free retailers, specialty stores, department stores and specialty and general merchandise catalogs, many of which have greater financial and marketing resources than the Company has. Notwithstanding the foregoing, the Company believes that it is well-positioned within the Asian consumer market with its current plan of supplying U.S. merchandise brands to consumers and that its exposure to both the Asian and American cultures gives it a competitive advantage. There can be no assurance that the Company will maintain its competitive edge or that the Company will continue to provide solely U.S.-made merchandise.

The Company’s products are sensitive to business and personal discretionary spending levels and tend to decline or grow more slowly during economic downturns, including downturns in any of the Company’s major markets. The current worldwide downturn is expected to adversely affect the Company’s sales and liquidity for the foreseeable future. Although the Company has mitigated decreases in sales by lowering its levels of inventory to preserve cash on hand, the Company does not know when the downturn will subside and when consumer spending will increase from its current depressed levels. Even if consumer spending increases, the Company is not sure when consumer spending will increase for its products, which will affect its liquidity.

The global economy is currently undergoing a period of unprecedented volatility, and the future economic environment may continue to be less favorable than that of recent years. This has led, and could further lead, to reduced consumer spending, and which may affect adversely spending on nutritional and beauty products and other discretionary items, such as the Company’s products. In addition, reduced consumer spending may force the Company and its competitors to lower prices. These conditions may adversely affect the Company’s revenues and profits. In addition, the Company expects future operations to be affected by ToByTo’ marketing and distribution of EFT phones, eZGT’s marketing of the travel program and the Company’s water bottling operations.

17

Results of Operations

Comparison for the Three Months Ended September 30, 2016 and 2015

Sales revenues, net

Sales revenues, net decreased to approximately $62,000 for the three months ended September 30, 2016 from approximately $145,000 for the three months ended September 30, 2015 primarily due to a decrease in product sales demand during the period. Sales revenues, net excludes revenue from shipping charges and reflects the deduction of commission expense. The Company’s policy is to pay commissions to Affiliates upon receipt of sales orders even before revenue can be recognized. In addition, sales orders dropped from $ 37,500 to $18,950 which caused commission expense to decrease to $10,370 for the three months ended September 30, 2016 from $23,900 for the three months ended September 30, 2015. Gross sales of products declined from approximately $110,000 for the three months ended September 30, 2015 to $19,000 for the three months ended September 30, 2016, or 83%. The sales of promotional products decreased to approximately $54,000 for the three months ended September 30, 2016 from $60,000 for the three months ended September 30, 2015, or 9%.

Shipping charges

Shipping charges decreased to approximately $5,000 for the three months ended September 30, 2016 from approximately $12,000 for the three months ended September 30, 2015, mainly due to a significant decrease in sales.

Cost of sales

Cost of sales consists mainly of merchandise purchased from vendors. Cost of sales decreased to approximately $44,000 for the three months ended September 30, 2016 from approximately $68,000 for the three months ended September 30, 2015. Cost of sales as a percentage of sales revenues for the three months ended September 30, 2016 was 71%, which is 24% higher than the same period last year, mainly due to the increase in vendor prices during the period.

Gross profit

Gross profit decreased to approximately $24,000 for the three months ended September 30, 2016 compared to approximately $90,000 for the three months ended September 30, 2015. Gross profit, as a percentage of total revenues, was 34.6% during the current period compared with 56.8% for the three months ended September 30, 2015. The decrease in gross profit as a percentage of total revenues was due to an increase in vendor prices during the period.

Selling, general and administrative expenses

Selling, general and administrative expenses decreased to approximately $895,000 for the three months ended September 30, 2016 compared to approximately $1,212,000 for the three months ended September 30, 2015, mainly due to the decrease in legal fees, including the reversal of legal fees relating to the Tianquan construction case as a result of the court decision in July 2016, and the decrease in rental expense in the current period compared with the same period last year.

Inventory obsolescence

Inventory obsolescence increased to approximately $11,400 for the three months ended September 30, 2016 as compared to nil for the three months ended September 30, 2015, mainly due to an increase in the amounts of inventory either at or nearing obsolescence in the current period as compared to the same period last year.

Royalty expenses- related party

Royalty expenses remained at $125,000 for the three months ended September 30, 2016 and 2015. Since the current year annualized sales do not meet the minimum sales required to comply with the terms of the agreement, an accrual was made during the period ended September 30, 2016 to recognize the expense based on the prorated minimum contract amount instead of actual sales revenues.

18

Interest income

Interest income decreased to approximately $12,000 for the three months ended September 30, 2016 as compared to approximately $26,000 for the three months ended September 30, 2015. Interest income decreased primarily due to a decrease in investments in corporate bonds as compared to the prior period.

Interest expense

Interest expense increased to approximately $1,600 for the three months ended September 30, 2016 as compared to $500 for the three months ended September 30, 2015. The increase was mainly due to a slight increase in accrued interest pursuant to the amortization schedule for the Company’s loan to finance its D&O insurance policy.

Other income

Other income remained at approximately $5,100 for the three months ended September 30, 2016 and 2015.

Income tax expense (benefit)

Income tax expense was nil for the three months ended September 30, 2016 as compared to a benefit of approximately $3,966,000 for the three months ended September 30, 2015. The change was mainly due to the reversal of the overaccrual for the provision of tax liabilities for the years 2008 to 2010 confirmed by the final report received from the IRS in September 2015.

Results of Operations

Comparison for the Six Months Ended September 30, 2016 and 2015

Sales revenues, net

Sales revenues, net decreased to approximately $149,000 for the six months ended September 30, 2016 from approximately $222,000 for the six months ended September 30, 2015, primarily due to a decline in sales demand from the Company’s Affiliates. In addition, sales orders dropped from $307,850 to $48,150, which caused commission expense to decrease to $23,000 for the six months ended September 30, 2016 from $179,600 for the six months ended September 30, 2015.

19

Shipping charges

Shipping charges decreased to approximately $12,000 for the six months ended September 30, 2016 from approximately $37,000 for the six months ended September 30, 2015, mainly due to a decrease in sales.

Cost of sales

Cost of sales consists mainly of merchandise purchased from vendors. Cost of sales decreased by 14% to approximately $99,000 for the six months ended September 30, 2016 from approximately $116,000 for the six months ended September 30, 2015, due to a reduction in sales. Despite the items that were sold at discounted prices, cost of sales as a percentage of sales revenues for the six months ended September 30, 2016 was 66.7%, higher than last year by 14.4%, mainly due to vendor price increases during the period.

Gross profit

Gross profit decreased to approximately $61,000 for the six months ended September 30, 2016 compared to approximately $142,000 for the six months ended September 30, 2015. Gross profit, as a percentage of total revenue, was 38.1% during the current period compared with 54.9% for the six months ended September 30, 2015. The decrease in gross profit was due to a reduction in gross sales and the increase in vendor prices during the period.

Selling, general and administrative expenses

Selling, general and administrative expenses decreased to approximately $1,987,000 for the six months ended September 30, 2016 compared to approximately $2,560,000 for the six months ended September 30, 2015, mainly due to the decrease in legal fees, including the reversal of legal fees relating to the Tianquan construction case as a result of the court decision received in July 2016, and the decrease in rental expense in the current period compared with the same period last year.

Inventory obsolescence

Inventory obsolescence increased to $20,967 for the six months ended September 30, 2016 as compared to $6,409 for the six months ended September 30, 2015, mainly due to an increase in the amounts of inventory either at or nearing obsolescence in the current period as compared to the same period last year.

Royalty expenses – related party

Royalty expenses remained at $250,000 for the six months ended September 30, 2016 and 2015. Since the current year’s annualized sales do not meet the minimum sales required to comply with the terms of the agreement, an accrual was made during the period ended September 30, 2016 to recognize the expense based on the prorated minimum contract amount instead of actual sales revenues. 

Interest income

Interest income decreased to approximately $24,000 for the six months ended September 30, 2016 as compared to approximately $47,000 for the six months ended September 30, 2015. Interest income decreased primarily due to a decrease in investments in corporate bonds as compared to the prior period.

20

Interest expense

Interest expense decreased to approximately $4,500 for the six months ended September 30, 2016 from approximately $43,000 for the six months ended September 30, 2015. The decrease in interest expense was mainly due to the decrease in accrued interest by approximately $40,000 related to the provision for tax liabilities for the years 2008 to 2010 in the three months ended June 30, 2015.

Other income

Other income decreased to approximately $18,000 for the six months ended September 30, 2016 from approximately $22,000 for the six months ended September 30, 2015. The decrease was mainly due to a decrease in sales of expired products.

Income tax expense (benefit)

Income tax expense was approximately $2,900 for the six months ended September 30, 2016 as compared to a benefit of approximately $3,966,000 for the six months ended September 30, 2015. The change was mainly due to the reversal of the overaccrual for the provision of tax liabilities for the years 2008 to 2010 confirmed by the final report received from the IRS in September 2015.

Capital Resources and Liquidity

The following table shows the Company’s sources of cash in the six months ended September 30, 2016 and 2015.

	Six Months Ended September 30,
	2016			2015
Net cash used in operating activities	$	(3,439,327	)	$	(1,812,514	)
Net cash provided by investing activities		1,077,263			1,217,005
Net cash used in financing activities		(28,308	)		(54,990	)
Effect of exchange rate changes on cash		93,925			(23,951	)
Net decrease in cash	$	(2,296,447	)	$	(674,450	)

Operating activities

For the six months ended September 30, 2016, net cash used in operating activities was $3,439,327. This was primarily due to a net loss of $2,161,732 adjusted by non-cash related expenses that included depreciation expense of $98,461, provision for inventory obsolescence of $20,967, a net decrease in working capital items of $1,395,721, and gain realized from the sales of securities available for sale of $1,302.

For the six months ended September 30, 2015, net cash used in operating activities was $1,812,514. This was primarily due to net income of $2,268,795 adjusted by non-cash related expenses that included depreciation expense of $78,376, provision for inventory obsolescence of $6,409, loss on disposal of fixed assets of $11,432, a net increase in working capital items of $1,100,412, and losses realized from the sales of securities available for sale of $12,850, which were offset by settlement of previously accrued income tax, penalty and interest of $5,290,788.

Investing activities

Net cash provided by investing activities for the six months ended September 30, 2016 was $1,077,263, primarily due to return of the prepayment of amounts relating to business development activities planned by the Company from President Jack Qin of $1,000,000 and the proceeds from the sale of corporate bonds of $82,071.

Net cash provided by investing activities for the six months ended September 30, 2015 was $1,217,005, primarily due to proceeds from the sale of corporate bonds of $1,251,706.

Financing activities

Net cash used in financing activities for the six months ended September 30, 2016 was $28,308, due to the repayment of a short-term loan for financing of the Company’s current year directors’ and officers’ liability insurance policy, which was offset by the increase in related party payables by $230,000. For more information about the insurance policy, please see Note 9 to the consolidated financial statements in this Report.

Net cash used in financing activities for the six months ended September 30, 2015 was $54,990, due to the repayment of a short-term loan for financing of the Company’s current year directors’ and officers’ liability insurance policy, which was offset by the increase in related party payables by $226,250.

21

Working Capital

	September 30, 2016			March 31, 2016
Current assets	$	2,599,065		$	6,410,622
Current liabilities		14,509,972			16,184,919
Working capital (deficiency)	$	(11,910,907	)	$	(9,774,297	)

Historically, cash and cash equivalents and securities available for sale have been the Company’s primary sources of liquidity. The Company believes its existing cash and cash equivalents will not be sufficient to meet its working capital requirements for the next 12-month period. The working capital position changed to a deficiency of approximately $12 million at September 30, 2016 compared to a deficiency of $9.8 million at March 31, 2016 as a result of the return of $1.0 million advanced to President Jack Qin for the prepayment of amounts relating to business development activities planned by the Company and a decrease in cash used in operations.

There is no assurance that the Company will be able to obtain further funds required for its continued working capital requirements. The ability of the Company to meet its financial obligations and commitments will depend primarily upon the continued financial support of its directors and shareholders, the continued issuance of equity to new shareholders, and its ability to achieve and maintain profitable operations.

There is substantial doubt about the Company’s ability to continue as a going concern as the continuation of the Company’s business is dependent upon obtaining further long-term financing and achieving a profitable level of operations. The issuance of additional equity securities by the Company could result in a significant dilution of the equity interests of its current shareholders. Obtaining commercial loans, assuming those loans would be available, will increase the Company’s liabilities and future cash commitments.

Balance Sheet Items 

Material changes in the Company’s balance sheet items between September 30, 2016 and March 31, 2016 are discussed below:

Securities Available for Sale

Securities available for sale decreased to $732,950 at September 30, 2016 compared to $810,344 at March 31, 2016, as the Company sold certain securities to fund operations.

Inventories

Inventory decreased to $189,109 at September 30, 2016 compared to $221,439 at March 31, 2016 due to the fact that the Company only ordered products on an “as needed” basis to avoid overstocking and decreased inventory levels are adequate to meet the current period’s needs.

Property and Equipment

Property and equipment increased to $10,295,046 at September 30, 2016 compared to $10,129,691 at March 31, 2016, mainly due to the effect of exchange rate changes on the value of the property in Taiwan and scheduled depreciation expense being recorded.

Related Party Receivable

The Company advanced $1,000,000 to President Jack Qin related to the prepayment of expenses for business development activities planned by the Company. The advance was repaid to the Company in June 2016.

Accounts Payable

Accounts payable decreased to $1,783,191 at September 30, 2016 compared to $2,013,078 at March 31, 2016 due to an decrease in unpaid legal fees during the period.

Commission Payable

Commission payable slightly decreased to $3,667,391 at September 30, 2016 compared to $3,682,236 at March 31, 2016 due to lower commissions earned by Affiliates during the six months ended September 30, 2016. 

Contingent Liabilities

Contingent liabilities decreased to $123,988 at September 30, 2016 compared to $205,087 at March 31, 2016 mainly due to the reversal of legal fees relating to the Tianquan construction case as a result of the court decision in July 2016.

Other Current Liabilities

Other liabilities decreased to $5,289,346 at September 30, 2016 compared to $6,601,774 at March 31, 2016. The decrease is mainly due to the payment of $1,350,000 for the commission payable pursuant to the settlement agreement relating to the Company’s investment in Taiwan.

Unearned Revenue

Unearned revenue slightly decreased to $3,193,556 at September 30, 2016 compared to $3,201,936 at March 31, 2016 due to the recording of unearned revenue resulting from temporary delays associated with the recognition of revenue related to the sale of products or services to Affiliates.

Contractual Obligations and Commitments

The Company’s contractual obligations and commitments as of September 30, 2016 did not materially change from the amounts set forth in its Annual Report on Form 10-K for the year ended March 31, 2016.

Commitments for Capital Expenditures

Except as otherwise disclosed herein, the Company does not have any commitments for any material capital expenditures. The Company does not have any commitments or arrangements from any person to provide it with any additional capital.

22

Except as disclosed in this Item 2, the Company does not know of any trends or demands that affected, or are reasonably likely to affect, its capital resources or liquidity.

Off-Balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements that have, or are reasonably likely to have, a current or future effect on its financial condition.

Significant Accounting Policies/Recent Accounting Pronouncements

See Item 1- Note 3 to the financial statements included as part of this report for a description of the Company’s significant accounting policies and recent accounting pronouncements which have, or potentially may have, a material impact on its financial statements.

Critical Accounting Policies and Estimates

The Management’s Discussion and Analysis of Financial Condition and Results of Operations is based upon our consolidated financial statements, which have been prepared in accordance with U.S. generally accepted accounting principles, “U.S. GAAP”. The Company’s significant accounting policies are discussed in Note 2 “Summary of Significant Accounting Policies” to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2016, as filed with the U.S. Securities and Exchange Commission, “SEC”, on July 13, 2016.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk.

Not applicable.

Item 4. Controls and Procedures.

(a) Disclosure Controls and Procedures

The Company’s management, under the supervision and with the participation of its chief executive officer and its chief financial officer, Messrs. Jack Jie Qin and William E. Sluss, respectively, evaluated the effectiveness of its disclosure controls and procedures as of September 30, 2016, the end of the period covered by this Report. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports, such as this Form 10-Q, that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

Based on that evaluation, Messrs. Qin and Sluss concluded that the Company’s disclosure controls and procedures were not effective as of September 30, 2016. 

The Company’s disclosure controls and procedures are designed to provide reasonable, not absolute, assurance that the objectives of its disclosure control system are met. Because of inherent limitations in all control systems, no evaluation of controls can provide absolute

assurance that all control issues, if any, within a company have been detected.

(b) Changes in Internal Controls

There was no change in the Company’s internal control over financial reporting during the quarter ended September 30, 2016 that is reasonably likely to materially affect the Company’s internal control over financial reporting.

As of September 30, 2016, the Company has not fully remediated the material weakness disclosed in the Company’s Annual Report on Form 10-K for the year ended March 31, 2016. Management is currently evaluating what steps, if any, can be taken in order to address the material weakness.

23

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

See Note 17 to the financial statements included as part of this Report.

Item 1A. Risk Factors.

Not applicable.

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.

Exhibits  

Exhibit No.:	Description:
31.1*	Rule 13a-14(a) Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Jack Jie Qin.
31.2*	Rule 13a-14(a) Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for William E. Sluss.
32.1*	Section 1350 Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for Jack Jie Qin.
32.2*	Section 1350 Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for William E. Sluss.
101*	The following materials from the EFT Holdings, Inc. Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, filed on November 14, 2016 formatted in Extensible Business Reporting Language (XBRL):

(i)	Consolidated Balance Sheets (Unaudited),
(ii)	Consolidated Statements of Income (Unaudited),
(iii)	Consolidated Statements of Comprehensive Income (Unaudited),
(iv)	Consolidated Statements of Changes in Equity (Unaudited),
(v)	Consolidated Statements of Cash Flows (Unaudited), and
(vi)	related notes

*Filed herewith.

24

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.

		EFT HOLDINGS, INC.
		(Registrant)
Date: November 14, 2016	By:	/s/ Jack Jie Qin
		Jack Jie Qin
		Principal Executive Officer
	By:	/s/ William E. Sluss
		William E. Sluss
		Principal Financial Officer

25

EX-31.1

Exhibit 31.1

RULE 13a-14(a) CERTIFICATION FOR FORM 10-Q

I, Jack Jie Qin, certify that:

1. I have reviewed this quarterly report on Form 10-Q of EFT Holdings, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 14, 2016	By: /s/ Jack Jie Qin
	Jack Jie Qin
	Principal Executive Officer

EX-31.2

Exhibit 31.2

RULE 13a-14(a) CERTIFICATION FOR FORM 10-Q

I, William E. Sluss, certify that:

1. I have reviewed this quarterly report on Form 10-Q of EFT Holdings, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 14, 2016	By: /s/ William E. Sluss
	William E. Sluss
	Principal Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of EFT Holdings, Inc. (the “Company”) on Form 10-Q for the quarter ended September 30, 2016, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jack Jie Qin, the Principal Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 14, 2016	By: /s/ Jack Jie Qin
	Jack Jie Qin
	Principal Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of EFT Holdings, Inc. (the “Company”) on Form 10-Q for the quarter ended September 30, 2016, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, William E. Sluss, the Principal Financial and Accounting Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 14, 2016	By: /s/ William E. Sluss
	William E. Sluss
	Principal Financial Officer

XML

Document And Entity Information - shares	6 Months Ended
	Sep. 30, 2016	Nov. 14, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q2
Entity Registrant Name	EFT Holdings, Inc.
Entity Central Index Key	0001450973
Current Fiscal Year End Date	--03-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	EFTB
Entity Common Stock, Shares Outstanding		75,983,201

XML

Consolidated Balance Sheets - USD ($)	Sep. 30, 2016	Mar. 31, 2016
Current assets
Cash and cash equivalents	$ 1,131,219	$ 3,427,666
Securities available for sale	732,950	810,344
Inventories	189,109	221,439
Prepaid expenses	188,677	510,510
Related party receivable	0	1,000,000
Other receivables	357,110	440,663
Total current assets	2,599,065	6,410,622
Property and equipment, net	10,295,046	10,129,691
Security deposit	366,787	357,408
Total assets	13,260,898	16,897,721
Current liabilities
Accounts payable	1,783,191	2,013,078
Related party payable	452,500	222,500
Commission payable	3,667,391	3,682,236
Other liabilities	5,289,346	6,601,774
Unearned revenues	3,193,556	3,201,936
Short-term loan	0	258,308
Contingent liabilities	123,988	205,087
Total liabilities	14,509,972	16,184,919
EFT Holdings, Inc. stockholders' equity (deficiency):
Preferred stock, $0.001 par value, 25,000,000 shares authorized, none issued and outstanding	0	0
Common stock, $0.00001 par value, 4,975,000,000 shares authorized, 75,983,201 shares issued and outstanding at September 30, 2016 and March 31, 2016	760	760
Additional paid in capital	52,854,891	52,854,891
Accumulated deficit	(54,155,174)	(51,997,694)
Accumulated other comprehensive income (loss)	113,361	(86,495)
Total EFT Holdings, Inc. stockholders’ equity (deficiency)	(1,186,162)	771,462
Non-controlling interest	(62,912)	(58,660)
Total equity (deficiency)	(1,249,074)	712,802
Total liabilities and equity (deficiency)	$ 13,260,898	$ 16,897,721

XML

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2016	Mar. 31, 2016
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, shares authorized	4,975,000,000	4,975,000,000
Common stock, shares issued	75,983,201	75,983,201
Common stock, shares outstanding	75,983,201	75,983,201

XML

Consolidated Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Sales revenues, net	$ 62,494	$ 145,398	$ 148,725	$ 221,714
Shipping charges	5,483	12,473	11,907	36,524
Total revenues, net	67,977	157,871	160,632	258,238
Cost of sales	44,370	67,841	99,155	115,909
Shipping costs	70	320	327	495
Total cost of revenues	44,440	68,161	99,482	116,404
Gross profit	23,537	89,710	61,150	141,834
Operating expenses:
Selling, general and administrative expenses	895,317	1,212,407	1,986,937	2,557,604
Provision for inventory obsolescence	11,395	0	20,967	6,409
Royalty expenses - related party	125,000	125,000	250,000	250,000
Total operating expenses	1,031,712	1,337,407	2,257,904	2,814,013
Operating loss	(1,008,175)	(1,247,697)	(2,196,754)	(2,672,179)
Other income/(expense)
Interest income	11,612	26,233	24,003	46,972
Interest expense	(1,590)	(506)	(4,543)	(43,419)
Settlement of previously accrued interest for income tax	0	962,991	0	962,991
Gain/(loss) on disposal of securities available for sale (includes $(10,301) and $13,463 accumulated other comprehensive (loss)/income reclassifications for unrealized net gains on securities available for sale for the six months ended September 30, 2016 and 2015, respectively)	1,290	(9,258)	1,302	(12,850)
Foreign exchange loss	(169)	(108)	(973)	(516)
Other income	5,165	5,133	18,102	22,190
Total other income	16,308	984,485	37,891	975,368
Loss before income taxes	(991,867)	(263,212)	(2,158,863)	(1,696,811)
Income tax expense (benefit)	0	(3,965,606)	2,869	(3,965,606)
Net income (loss)	(991,867)	3,702,394	(2,161,732)	2,268,795
Loss from non-controlling interest	2,272	1,955	4,252	4,176
Net income (loss) attributable to EFT Holdings, Inc.	$ (989,595)	$ 3,704,349	$ (2,157,480)	$ 2,272,971
Net income (loss) per share
Basic and diluted	$ (0.01)	$ 0.05	$ (0.03)	$ 0.03
Net income (loss) per common share attributable to EFT Holdings, Inc.
Basic and diluted	$ (0.01)	$ 0.05	$ (0.03)	$ 0.03
Weighted average common shares outstanding
Basic and diluted	75,983,201	75,983,201	75,983,201	75,983,201

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Consolidated Statements of Operations (Parenthetical) - USD ($)	6 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax	$ (10,301)	$ 13,463

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Consolidated Statements of Comprehensive Income (Loss) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Net income (loss)	$ (991,867)	$ 3,702,394	$ (2,161,732)	$ 2,268,795
Other comprehensive income/(loss)
Foreign currency translation adjustment	175,077	(43,710)	199,242	(39,720)
Unrealized income/(loss) on securities available for sale	(2,850)	(4,218)	614	(18,095)
Comprehensive income (loss)	(819,640)	3,654,466	(1,961,876)	2,210,980
Less: Comprehensive loss attributable to non-controlling interests	(2,272)	(1,955)	(4,252)	(4,176)
Comprehensive income (loss) attributable to EFT Holdings, Inc.	$ (817,368)	$ 3,656,421	$ (1,957,624)	$ 2,215,156

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Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net income (loss)	$ (2,161,732)	$ 2,268,795
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	98,461	78,376
(Gain)/loss from securities available for sale	(1,302)	12,850
Provision for inventory obsolescence	20,967	6,409
Loss on disposal of fixed assets	0	11,432
Settlement of previously accrued income tax, penalty and interest		(5,290,788)
Changes in operating assets and liabilities:
Inventories	10,121	51,768
Prepaid expenses	321,258	297,583
Other receivables	(329)	149,635
Accounts receivable	85,087	23,692
Accounts payable	(229,348)	269,599
Commission payable	(14,845)	(95,040)
Other liabilities	(1,484,447)	403,955
Unearned revenues	(8,380)	(780)
Contingent liabilities	(74,838)	0
Net cash used in operating activities	(3,439,327)	(1,812,514)
Cash flows from investing activities:
Additions to fixed assets	(1,708)	(1,249)
Purchase of securities available for sale	(3,100)	(33,452)
Proceeds from available for sale securities	82,071	1,251,706
Proceeds from related party receivable	1,000,000	0
Net cash provided by investing activities	1,077,263	1,217,005
Cash flows from financing activities:
Repayment of short-term loan	(258,308)	(281,240)
Related party payable	230,000	226,250
Net cash used in financing activities	(28,308)	(54,990)
Effect of exchange rate changes on cash	93,925	(23,951)
Net decrease in cash	(2,296,447)	(674,450)
Cash, beginning of period	3,427,666	2,332,595
Cash, end of period	1,131,219	1,658,145
Supplemental disclosures of cash flow information:
Interest expenses paid in cash	$ 2,320	$ 2,526

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ORGANIZATION

6 Months Ended

Sep. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Note 1 – ORGANIZATION

EFT Holdings, Inc., “EFT Holdings” or the “Company,” formerly EFT Biotech Holdings, Inc., was incorporated in the State of Nevada on March 19, 1992.  The Company’s business is classified by management into two reportable segments: online and beverage. These reportable segments are two distinct businesses, each with a different customer base, marketing strategy and management structure. Substantially all of the Company’s revenue is generated from Mainland China.

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GOING CONCERN

6 Months Ended

Sep. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Substantial Doubt about Going Concern [Text Block]

Note 2 – GOING CONCERN

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has negative working capital of $11,910,907 and an accumulated deficit of $54,155,174 as of September 30, 2016, and it reported net operating losses for the past two fiscal years. The Company expects to continue incurring losses for the foreseeable future and may need to raise additional capital from external sources in order to continue the long-term efforts contemplated under its business plan. These circumstances, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

The Company expects to continue incurring losses for the foreseeable future and may need to raise additional capital from external sources in order to continue the long-term efforts contemplated under its business plan. The Company is in the process of reevaluating its current marketing strategy as it relates to the sale of its current product line. In addition, the Company is pursuing other revenue streams which could include strategic acquisitions or possible joint ventures of other business segments.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Sep. 30, 2016

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

Note 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the unaudited financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position as of September 30, 2016 and the results of operations and cash flows for the periods ended September 30, 2016 and 2015. The financial data and other information disclosed in these notes to the interim financial statements related to these periods are unaudited. The results for the three and six months ended September 30, 2016 are not necessarily indicative of the results to be expected for any subsequent periods or for the year ending March 31, 2017. The balance sheet at March 31, 2016 has been derived from the audited financial statements at that date.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the Securities and Exchange Commission’s rules and regulations. These unaudited financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended March 31, 2016 as included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2016.

Certain amounts have been reclassified to conform to current year presentation.

Principles of consolidation

The consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned except for Digital Development Partners Inc., “Digital”, which is 91.7% owned by the Company. All material intercompany transactions and balances have been eliminated.

Uses of estimates in the preparation of financial statements

The preparation of financial statements in conformity with generally accepted accounting principles 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 revenues and expenses during the reporting period. Actual results could differ from those estimates. These estimates and assumptions include determining the fair market value of the Company’s inventory, the collectability of accounts receivable, the value of deferred taxes and related valuation allowances. Certain of the Company’s estimates, including evaluating the collectability of accounts receivable and the fair market value of inventory, could be affected by external conditions, including those particular to the Company’s industry, and general economic conditions. It is possible that these external factors could have an effect on the Company’s estimates that could cause actual results to differ from the Company’s estimates. The Company re-evaluates all of its accounting estimates at least quarterly based on these conditions and records adjustments when necessary.

Fair value measurements

ASC Topic 820 defines fair value, establishes a framework for measuring fair value and enhances disclosure requirements for fair value measurements. This topic does not require any new fair value measurements. ASC Topic 820 defines fair value as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, ASC Topic 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:

Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 — Other inputs that are directly or indirectly observable in the marketplace.

Level 3 — Unobservable inputs which are supported by little or no market activity.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. In accordance with ASC Topic 820, the Company measures its securities available for sale at fair value. The securities available for sale are classified within Level 1 since they are valued using quoted market prices.

Revenue / Unearned Revenue

The Company’s revenue recognition policy is in accordance with the requirements of Staff Accounting Bulletin, “SAB,” No. 104, Revenue Recognition, “SAB 104,” ASC Topic 605, Accounting for Consideration Given by a Vendor to a Customer, Including a Reseller of the Vendor’s Products, and other applicable revenue recognition guidance and interpretations.  Sales revenue is recognized when a formal arrangement exists with the customers, the price is fixed or determinable, the delivery is completed, no other significant obligations of the Company exist and collectability is reasonably assured.  Payments received before all relevant criteria for revenue recognition are satisfied are recorded as unearned revenue, which is recorded as a liability until the products are delivered. Sales are recorded when the products are received by Affiliates and risk of ownership has passed.

The Company pays commissions to the Affiliates based upon, among other things, their purchases from the Company and purchases by other Affiliates who were recommended to the Company. Commissions paid to the Company’s Affiliates are considered to be a reduction of the selling prices of its products, and are recorded as a reduction of revenue.  The Company’s policy is to pay out commission to Affiliates upon receipt of sales orders even before revenue can be recognized.

Recent accounting pronouncements

There are no new accounting pronouncements adopted or enacted during the three and six months ended September 30, 2016 that had, or are expected to have, a material impact on the Company’s financial statements.

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SECURITIES AVAILABLE FOR SALE

6 Months Ended

Sep. 30, 2016

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note 4 – SECURITIES AVAILABLE FOR SALE

Securities available for sale consist of the following:

	September 30, 2016
	Amortized		Unrealized		Unrealized		Market		Average
	Cost		Gains		Losses		Value		Duration (1)
Corporate bonds	$	155,132	$	2,018	$	(2,932)	$	154,218		4.55
Corporate notes		576,258		7,777		(5,303)		578,732		1.57
Total debt securities	$	731,390	$	9,795	$	(8,235)	$	732,950

	March 31, 2016
	Amortized		Unrealized		Unrealized		Market		Average
	Cost		Gains		Losses		Value		Duration (1)
Corporate bonds	$	235,901	$	2,276	$	(2,773)	$	235,404		4.67
Corporate notes		573,497		5,720		(4,277)		574,940		2.07
Total debt securities	$	809,398	$	7,996	$	(7,050)	$	810,344

(1) Average remaining duration to maturity, in years.

All securities were classified as available for sale as of each date presented.

The following table shows the gross unrealized losses and fair value of the Company’s investments, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, as of September 30, 2016:

	Less than 1 year				1 Year or More				Total
	Market		Unrealized		Market		Unrealized		Market		Unrealized
	Value		Losses		Value		Losses		Value		Loss
Corporate bonds	$	-	$	-	$	69,411	$	(2,932)	$	69,411	$	(2,932)
Corporate notes		-		-		257,732		(5,303)		257,732		(5,303)
Total debt securities	$	-	$	-	$	327,143	$	(8,235)	$	327,143	$	(8,235)

Declines in the fair value of available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses to the extent the impairment is related to credit losses. The amount of the impairment related to other factors is recognized in other comprehensive income. In estimating other-than-temporary impairment losses, management considers, among other things: (i) the length of time and the extent to which the fair value has been less than cost; (ii) the financial condition and near-term prospects of the issuer; and (iii) the intent and ability to retain the investment in the issuer for a period of time sufficient to allow for any anticipated recovery of cost.

There were 5 securities in an unrealized loss position at September 30, 2016. Management does not intend to sell any of the securities classified as available for sale which have unrealized losses and believes that it is not likely that the Company will have to sell any such securities before a recovery of cost. The unrealized losses are largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased and are not the result of deteriorated credit quality. The fair value is expected to recover as the bonds approach their maturity or re-pricing date or if market yields for such investments decline. Management does not believe such securities are other-than-temporarily impaired due to reasons of credit quality.

Investment securities with a book value of $80,769 were sold during the six months ended September 30, 2016. The Company recognized a gain of $1,302 on the sale of those securities.

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INVENTORIES

6 Months Ended

Sep. 30, 2016

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

Note 5 – INVENTORIES

The components of inventories were as follows:

	September 30,		March 31,
	2016		2016
Raw materials and supplies	$	39,321	$	40,537
Finished goods		149,788		180,902
	$	189,109	$	221,439

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LOANS TO RELATED PARTIES AND RELATED PARTY TRANSACTIONS

6 Months Ended

Sep. 30, 2016

Loans To Related Parties and Related Party Transactions [Abstract]

Loans to Related Parties and Related Party Transactions [Text Block]

Note 6 – LOANS TO RELATED PARTIES AND RELATED PARTY TRANSACTIONS 

The Company uses the “EFT” name, a trademark owned and licensed to it by EFT Assets Limited (“EFT Assets”), a company that Wendy Qin, a director of EFT International Ltd., served as a director until March 2015. The Company is required to pay an annual royalty to EFT Assets equal to a percentage of its gross sales for the previous fiscal year. The percentage is 5% for the first $30 million in gross sales, 4% for the $10 million in gross sales in excess of $30 million, 3% for the $10 million in gross sales in excess of $40 million; 2% for the $10 million in gross sales in excess of $50 million; and 1% for the $10 million in gross sales in excess of $60 million, with a minimum annual royalty of $500,000. EFT Assets is owned by a number of persons, including Wendy Qin. Ms. Qin is the sister of Jack Jie Qin, the Company’s president. During each of the six months ended September 30, 2016 and 2015, the Company accrued $250,000 of royalties payable to EFT Assets.

In March 2010, the Company’s subsidiary, EFT International Ltd., entered into a consulting agreement with JFL Capital Limited (“JFL”), a company of which Wendy Qin serves as a director and is one of the principal shareholders. Under this agreement,  JFL will provide consulting services on administration, financial matters, corporate planning and business development commencing on April 1, 2010, with an annual fee of $315,000. The annual fee is increased at the rate of $15,000 each year starting from April 1, 2011. The agreement may be terminated by either party on three months’ written notice. For the six months ended September 30, 2016 and 2015, the Company accrued consulting fees payable to JFL of $202,500 and $195,000, respectively.

From April 1, 2014 to April 1, 2015, the Company rented 2,500 square feet of office space with a monthly rent of $10,735 for its satellite training center located at Suite 3706, Langham Office Tower, 8 Argyle Street, Kowloon, Hong Kong SAR. From April 1 through June 24, 2015, the monthly rent was $15,319. The former office location is owned by a number of persons, including Wendy Qin, a director of EFT (HK) Ltd and the sister of Jack Jie Qin, the Company’s president.  During the six months ended September 30, 2015, the Company paid the lessors $42,983. The lease was terminated on June 24, 2015.

In February 2016, the Company advanced $1,000,000 to President Jack Qin for the prepayment of amounts relating to business development activities planned by the Company. The advance was not used and was repaid to the Company in June 2016.

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OTHER CURRENT LIABILITIES

6 Months Ended

Sep. 30, 2016

Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract]

Other Liabilities Disclosure [Text Block]

Note 7 – OTHER CURRENT LIABILITIES

Accrued and other current liabilities consist of the following:

	September		March
	30, 2016		31, 2016
Payroll liabilities	$	42,590	$	42,593
Warranty liabilities		1,471		1,589
Accrued commission		179,047		1,583,740
Accrued contingent guarantee		4,587,596		4,453,755
Accrued expenses		337,064		379,985
Interest and penalty for income tax accrued		138,413		136,190
Others		3,165		3,922
	$	5,289,346	$	6,601,774

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CONTINGENT LIABILITIES

6 Months Ended

Sep. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Contingencies Disclosure [Text Block]

Note 8 – CONTINGENT LIABILITIES

In 2009, the Company’s subsidiary, Tianquan, engaged a general contractor to construct a water manufacturing plant for RMB4,758,600 ($766,000). Upon completion, EFT inspected the plant and found several material construction defects, including, but not limited to, the fact that the contractor used inferior construction material, inconsistent construction plans and substandard insulation material. As a result, EFT conditioned its final construction payment to the contractor in the amount of RMB698,896 ($112,500) on the rectification of all construction defects. On March 22, 2012, the contractor brought a case against EFT in Baiquan People’s Court in Heilongjiang Province seeking approximately RMB1,912,000 ($308,000) of purported outstanding payments under the contract and interest thereon. On January 16, 2014, Tianquan received an unfavorable decision issued by Baiquan People’s Court in Heilongjiang Province awarding the contractor approximately RMB1,326,916 ($199,536) of purported outstanding payments under the contract and interest thereon. The Company filed an appeal with Qiqihar Intermediate People’s Court and recorded contingent liabilities of RMB1,326,916 ($199,536). On January 5, 2016, the Company’s subsidiary, Tianquan, received an unfavorable decision issued by Baiquan People’s Court awarding the contractor approximately RMB827,000 ($123,988) of purported outstanding payments under the contract and interest thereon. The Company filed an appeal of the decision. On July 18, 2016, Baiquan People’s Court dismissed the appeal. The Company revised the contigent liabilities to RMB827,000 ($123,988). (See Note 12)

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SHORT-TERM LOAN

6 Months Ended

Sep. 30, 2016

Debt Disclosure [Abstract]

Short-term Debt [Text Block]

Note 9 – SHORT-TERM LOAN

The Company received a $503,200 loan from a third party, Insurance Financing, Inc., “IFI”, to finance the directors’ and officers’ insurance premium for the fiscal years 2014 and 2015. The loan bore an interest rate of 3.60% per annum, and was to be repaid over a nine-month period which began on December 15, 2014. The terms of the agreement allowed for the Company to make nine equal payments of $56,753 each and the loan was fully repaid during the quarter ended September 30, 2015.

The Company renewed coverage for the 2015-2016 periods and received a new loan in the amount of $462,170 from IFI to finance the directors’ and officers’ insurance premium bearing an interest rate of 3.60% per annum. The loan was to be repaid over a nine-month period beginning on December 15, 2015. The terms of the agreement allowed for the Company to make nine equal payments of $52,126 each and the loan was fully repaid during the quarter ended September 30, 2016.

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INCOME TAXES

6 Months Ended

Sep. 30, 2016

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Note 10 – INCOME TAXES

The Company was incorporated in the United States and has operations in five tax jurisdictions - the United States, the Hong Kong Special Administrative Region, “HK SAR”, mainland China, Taiwan, and the BVI.

The Company’s BVI operations are not subject to any taxes according to BVI tax law. The Company’s HK SAR subsidiaries are subject to a 16.5% profit tax based on its taxable net profit. EFT (HK) Ltd provides management service to a BVI subsidiary, and the BVI subsidiary reimburses EFT (HK) Ltd for its total operating expenses plus a 5% mark up, and the income is subject to a 16.5% profit tax. The Company’s U.S. operations are subject to income tax according to U.S. tax law.

The Company’s Taiwan subsidiary, EFTI, and its factory in mainland China are subject to a 17% and 25% standard enterprise income tax, respectively, based on its taxable net profit. These operations have incurred net accumulated operating losses for income tax purposes and management believes that it is more likely than not that these net accumulated operating losses will not be utilized in the future. Therefore, it has provided full valuation allowance for the deferred tax assets arising from the losses as of September 30, 2016 and 2015.

The income tax expense consists of the following:

	Six Months Ended
	September 30,
	2016		2015
Current:
Domestic – Federal	$	-	$	-
– State		2,869		-
Foreign		-		-
Deferred		-		-
Effect of IRS audit		-		(3,965,606)
Income tax expense	$	2,869	$	(3,965,606)

A reconciliation of income taxes, with the amounts computed by applying the statutory federal income tax rate, 37% for the six months ended September 30, 2016 and 2015, to income before income taxes for the six months ended September 30, 2016 and 2015, is as follows:

	Six Months Ended
	September 30,
	2016		2015
Income tax provision (benefit) at U.S. statutory rate	$	(797,206)	$	(626,275)
State tax		2,869		-
Deferred tax valuation allowance		796,270		774,322
Nondeductible expenses		936		(148,047)
Effect of IRS audit		-		(3,965,606)
Income tax expense	$	2,869	$	(3,965,606)

The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S., income tax examinations by tax authorities for tax years before the year ended March 31, 2007.

The Company has not provided deferred taxes on unremitted earnings attributable to international companies that have been considered to be reinvested indefinitely. Because of the availability of U.S. foreign tax credits, it is not practicable to determine the income tax liability that would be payable if such earnings were not indefinitely reinvested. In accordance with ASC Topic 740, interest associated with unrecognized tax benefits is classified as income tax and penalties are classified in selling, general and administrative expenses in the statements of operations.

The extent of the Company’s operations involves dealing with uncertainties and judgments in the application of complex tax regulations in a multitude of jurisdictions. The final taxes paid are dependent upon many factors, including negotiations with taxing authorities in various jurisdictions and resolution of disputes arising from federal, state and international tax audits. The Company recognizes potential liabilities and records tax liabilities for anticipated tax audit issues in the United States and other tax jurisdictions based on its estimate of whether, and the extent to which, additional taxes will be due.

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SEGMENT INFORMATION

6 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 11 – SEGMENT INFORMATION

The Company’s business is classified by management into two reportable business segments: online and beverage. The online business reportable segment is an aggregation of the Company’s online operating segments, which are organized to sell the Company’s products to Affiliates through its websites. The online business reportable segment derives revenue from the sales of nutritional products, personal care products and EFT-phones and access fees for its network platform. The beverage business reportable segment derives revenue and expense from the bottled water factory in Baiquan, Heilongjiang Province, the PRC. Unallocated items comprise mainly corporate expenses and corporate assets.

Although substantially all of the Company’s revenue is generated from Mainland China, the Company is organizationally structured along business segments. The accounting policies of each of the Company’s operating segments are the same as those described in Note 3, “Summary of Significant Accounting Policies.”

The following tables provide the business segment information as of and for the three and six months ended September 30, 2016 and 2015. Income tax allocations have been determined based on statutory rates in the applicable business segment.

	Three months ended September 30, 2016
	Online		Beverage		Unallocated
	business		business		items		Total
Total revenues, net	$	67,977	$	-	$	-	$	67,977
Total cost of revenues		(44,440)		-		-		(44,440)
Gross profit		23,537		-		-		23,537
Operating expenses:
Selling, general and administrative expenses		410,806		(34,278)		518,789		895,317
Provision for inventory obsolescence		11,395		-		-		11,395
Royalty expenses		125,000		-		-		125,000
Total operating expenses		547,201		(34,278)		518,789		1,031,712
Net operating income (loss)		(523,664)		34,278		(518,789)		(1,008,175)
Other income		14,934		1		1,373		16,308
Allocated income tax expense		-		-		-		-
Income (loss) after income tax		(508,730)		34,279		(517,416)		(991,867)
Total long-lived assets		768		610,496		9,683,782		10,295,046
Additions to long-lived assets		-		-		-		-

	Three months ended September 30, 2015
	Online		Beverage		Unallocated
	business		business		items		Total
Total revenues, net	$	157,871	$	-	$	-	$	157,871
Total cost of revenues		(68,161)		-		-		(68,161)
Gross profit		89,710		-		-		89,710
Operating expenses:
Selling, general and administrative expenses		404,486		40,776		767,145		1,212,407
Royalty expenses		125,000		-		-		125,000
Total operating expenses		529,486		40,776		767,145		1,337,407
Net operating loss		(439,776)		(40,776)		(767,145)		(1,247,697)
Other income		14,935		1		969,549		984,485
Allocated income tax benefit		-		-		3,965,606		3,965,606
Income (loss) after income tax		(424,841)		(40,775)		4,168,010		3,702,394
Total long-lived assets		2,475		780,423		641		783,539
Additions to long-lived assets		1,249		-		-		1,249

	Six months ended September 30, 2016
	Online		Beverage		Unallocated
	business		business		items		Total
Total revenues, net	$	160,632	$	-	$	-	$	160,632
Total cost of revenues		(99,482)		-		-		(99,482)
Gross profit		61,150		-		-		61,150
Operating expenses:
Selling, general and administrative expenses		830,731		13,574		1,142,632		1,986,937
Provision for inventory obsolescence		20,967		-		-		20,967
Royalty expenses		250,000		-		-		250,000
Total operating expenses		1,101,698		13,574		1,142,632		2,257,904
Net operating loss		(1,040,548)		(13,574)		(1,142,632)		(2,196,754)
Other income		36,926		1		964		37,891
Allocated income tax expense		-		-		(2,869)		(2,869)
Loss after income tax		(1,003,622)		(13,573)		(1,144,537)		(2,161,732)
Total long-lived assets		768		610,496		9,683,782		10,295,046
Additions to long-lived assets		-		-		1,708		1,708

	Six months ended September 30, 2015
	Online		Beverage		Unallocated
	business		business		items		Total
Total revenues, net	$	258,238	$	-	$	-	$	258,238
Total cost of revenues		(116,404)		-		-		(116,404)
Gross profit		141,834		-		-		141,834
Operating expenses:
Selling, general and administrative expenses		853,872		87,290		1,616,442		2,557,604
Provision for inventory obsolescence		6,409		-		-		6,409
Royalty expenses		250,000		-		-		250,000
Total operating expenses		1,110,281		87,290		1,616,442		2,814,013
Net operating loss		(968,447)		(87,290)		(1,616,442)		(2,672,179)
Other income		41,440		1		933,927		975,368
Allocated income tax benefit		-		-		3,965,606		3,965,606
Income (loss) after income tax		(927,007)		(87,289)		3,283,091		2,268,795
Total long-lived assets		2,475		780,423		641		783,539
Additions to long-lived assets		1,249		-		-		1,249

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LITIGATION

6 Months Ended

Sep. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Legal Matters and Contingencies [Text Block]

Note 12 – LITIGATION

On August 2, 2010, the Company commenced a legal proceeding against Marinteknik Shipbuilders (S) Pte Ltd. and six other persons in the High Court of the Republic of Singapore alleging fraud, misrepresentation, and deceit on the part of the defendants with respect to the Company’s investment in Excalibur. The Company claims that the wrongful actions of the defendants resulted in damages of $19,000,000 to the Company. On December 11, 2012, the High Court issued a decision whereby it dismissed the Company’s actions against Marinteknik and Lim Lan Eng (Priscilla), a director of Marinteknik. On January 8, 2013, the Company filed an appeal against the decision made by the High Court. On November 29, 2013, the appellate court issued its order and sustained the High Court’s decision and awarded legal fees to the defendants. The Company has accrued a liability in the amount of $200,000 for the legal costs. The High Court dismissed the appeal by the Company, but criticized the defendants, stating that their actions were “wholly lacking in probity” and “likely also to have been unlawful”. After seeking further legal advice and balancing all factors, however, it was decided that commencing further legal proceedings on this matter is not beneficial to the commercial interests of the Company. On October 15, 2015, the High Court determined that the Company is obligated to bear the defendants’ legal costs of approximately SGD 307,000. On February 18, 2016, the Commercial Affairs Department issued a letter to confirm completion of the investigation of the report by the Company regarding Lim Lam Eng (Priscilla) and Marinteknik Shipbuilders (S) Pte Ltd. and confirmed their view that no evidence of a criminal offense was disclosed and they will not be pursuing the matter further.

On March 4, 2016, the Company received a letter from its solicitor RHT requesting legal fees in the amount of approximately SGD 85,000. The Company refused to pay the solicitor’s legal fees because the Company believed that it was inadequately represented by the solicitor. On June 19, 2016, the solicitor filed a claim with the High Court of Singapore for the legal fees in the amount of approximately SGD85,000. On October 31, 2016, the High Court issued a judgment in favor of the solicitor for that amount plus interest and costs.

On June 9, 2016, Lim Lan Eng Priscilla and Marinteknik filed an action against EFTI in the Supreme Court of the State of New York, County of New York. The action sought summary judgment on their claims for fees in the sum of $162,720.38, arising out of the Singapore High Court’s determination that plaintiffs were entitled to an award of their fees and costs in connection with the Singapore litigation. After consulting with counsel, EFTI declined to contest the summary judgment and judgment was entered in the Supreme Court for the sum of $162,720.38 in favor of the plaintiffs.

In 2009, the Company’s subsidiary, Heilongjiang Tianquan Manor Soda Drinks Co. Ltd., “Tianquan”, engaged a general contractor, the “Contractor”, to construct a water manufacturing plant, the “Plant”, for RMB 4,758,600 ($776,300). Upon completion, the Company inspected the Plant and found several material construction defects, including, but not limited to, the fact that the Contractor used inferior construction material, inconsistent construction plans and substandard insulation material. As a result, in 2010, the Company conditioned its final construction payment to the Contractor in the amount of RMB 698,896 ($112,500) on the rectification of all construction defects. On March 22, 2012, the Contractor brought a case against Tianquan in Baiquan People’s Court in Heilongjiang Province seeking approximately RMB 1,912,000 of purported outstanding payments under the contract and interest thereon. On January 16, 2014, the Company’s subsidiary, Tianquan, received an unfavorable decision issued by Baiquan People’s Court in Heilongjiang Province awarding the contractor approximately RMB1,326,916 of purported outstanding payments under the contract and interest thereon. Tianquan filed an appeal with the Qiqihar Intermediate People’s Court on January 27, 2014. On August 18, 2014, the Qiqihar Intermediate People’s Court issued a judgment rescinding the unfavorable decision issued by the Baiquan People’s Court and ordered the case to be reheard at the Baiquan People’s Court. On September 25, 2014, Tianquan received a favorable decision from Baiquan People’s Court as the court concluded that the company stamps affixed to all of the Contractor’s legal documents were fake. On November 5, 2014, the subcontractor brought another civil case against Tianquan in the Baiquan People’s Court in Heilongjiang Province seeking RMB 1,823,787 of purported outstanding payments under the same contract and interest thereon. On December 8, 2014, Tianquan filed a civil lawsuit against the sub-contractor for compensation for material construction defects. On December 31, 2015, the two cases were reheard at the Baiquan People’s Court and the sub-contractor changed the claim to the amount of RMB 1,123,266. On January 5, 2016, the Company’s subsidiary, Tianquan, received an unfavorable decision issued by Baiquan People’s Court awarding the contractor approximately RMB 827,000 of purported outstanding payments under the contract and interest thereon. The Court ordered the subcontractor to reimburse the amount of RMB 120,000 for testing fees to the Company. The Company filed an appeal of the order awarding the contractor approximately RMB827,000 of purported outstanding payments under the contract and accrued interest. On August 17, 2016, Baiquan People’s Court dismissed the appeal of the order awarding the contractor approximately RMB827,000 of purported outstanding payments under the contract and interest thereon.

On January 30, 2015, a class action entitled Wang, et al. v. EFT Holdings, Inc., et al. was filed on behalf of a putative class of all purchasers of the Company’s products against the Company and certain of its current and former officers and directors in the United States District Court for the Central District of California. On April 29, 2015, the court consolidated this action with the Li, et al. v. Qin, et al. and Li, et al. v. EFT Holdings, Inc., et al. actions. On May 7, 2015, Plaintiffs filed a motion for class certification, which was fully briefed by the parties. On December 14, 2015, the court denied Plaintiffs’ motion for class certification. On April 6, 2016, the parties stipulated to a voluntary dismissal of Plaintiffs’ claims with prejudice.

On December 6, 2013, the Company named George Curry, a former director and officer of the Company, as one of the defendants in the Superior Court of California, County of Los Angeles, with reference to the CTX investment transaction, in which the Company alleges, among other things, that Mr. Curry breached his fiduciary duty and committed fraud and misrepresentation in respect of the Company’s investment in CTX.

On April 18, 2014, George Curry filed a Notice of Removal for the above action to be brought in the District Court of California, Los Angeles (Western District). In the same action, he brought a counterclaim against the Company, Jack Qin and Pyng Soon and sought implied and equitable indemnity, declaratory relief and apportionment of fault. On or around December 11, 2014, George Curry filed a motion for summary judgment against the Company and all other cross defendants in the matter. The motion was heard on February 26, 2015 and the court denied George Curry’s motion. Thereafter, a second motion for summary judgment was filed by Mr. Curry. That motion was denied as well. The final resolution of the entire matter is still pending. Trial is currently scheduled for February 7, 2017. In addition, the Court consolidated the trial of this matter with that of the Company’s lawsuit against CTX, Buckman, Buckman & Reid and Peter Lau.

On March 4, 2015, the Company filed a civil lawsuit in the United States District Court, Central District of California, against CTX, Buckman, Buckman & Reid, Cliff Rhee and Peter Lau alleging breach of covenant of good faith and fair dealing, breach of fiduciary duty, fraud, misrepresentation, concealment, negligent misrepresentation and negligence.

On April 14, 2015, Defendant CTX filed a motion to dismiss. On May 28, 2015, the court granted CTX’s motion, in part, with leave to amend. The Company filed a First Amended Complaint on June 8, 2015, asserting causes of action for: (1) breach of covenant of good faith and fair dealing; (2) breach of fiduciary duty; (3) fraud-misrepresentation; and (4) fraud-concealment. On June 24, 2015, CTX filed an answer to the First Amended Complaint. Buckman, Buckman & Reid and Peter Lau also filed a motion to dismiss the Complaint. The Court granted the motion with respect to the breach of fiduciary duty claim, with leave to amend, but denied it as to all other claims. After the Company’s filing of its First Amended Complaint, Buckman, Buckman & Reid and Peter Lau filed an answer to the First Amended Complaint on July 9, 2015.

On May 26, 2016, the Court struck CTX’s Answer to the Complaint and entered a default judgment. The Company thereafter submitted a default judgment package. On September 6, 2016, the court, after reviewing the default judgment package, entered judgment against CTX, and in favor of the Company, in the amount of $2,500,000.

On April 1, 2016, Buckman, Buckman & Reid and Peter Lau filed a motion with the court to compel the matter to arbitration, thereby seeking to avoid a jury trial. The Company opposed the motion, arguing that there was no applicable arbitration provision, and seeking to retain the right to a jury trial. After extensive briefings, and following oral argument, on June 2, 2016, the Court denied Buckman, Buckman & Reid and Peter Lau’s motion to compel arbitration. The Court thereafter scheduled the trial for February 7, 2017. The Company continues to engage in discovery in preparation for the upcoming trial.

On June 22, 2015, a complaint entitled Greenstone Holdings, Inc. v. EFT Holdings, Inc., et al. was filed in the United States District Court for the Central District of California, asserting a claim for express indemnity against the Company, in excess of $150,000. After negotiations, the Company entered into a confidential settlement with Greenstone Holdings, Inc. on April 14, 2016.

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SUBSEQUENT EVENTS

6 Months Ended

Sep. 30, 2016

Subsequent Events [Abstract]

Subsequent Events [Text Block]

Note 13 – SUBSEQUENT EVENTS

The Company has reviewed its subsequent events through the date these consolidated financial statements were issued and has determined that no material subsequent events have occurred through such date.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Sep. 30, 2016

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of presentation

The unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the unaudited financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position as of September 30, 2016 and the results of operations and cash flows for the periods ended September 30, 2016 and 2015. The financial data and other information disclosed in these notes to the interim financial statements related to these periods are unaudited. The results for the three and six months ended September 30, 2016 are not necessarily indicative of the results to be expected for any subsequent periods or for the year ending March 31, 2017. The balance sheet at March 31, 2016 has been derived from the audited financial statements at that date.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the Securities and Exchange Commission’s rules and regulations. These unaudited financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended March 31, 2016 as included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2016.

Certain amounts have been reclassified to conform to current year presentation.

Consolidation, Policy [Policy Text Block]

Principles of consolidation

The consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned except for Digital Development Partners Inc., “Digital”, which is 91.7% owned by the Company. All material intercompany transactions and balances have been eliminated.

Use of Estimates, Policy [Policy Text Block]

Uses of estimates in the preparation of financial statements

The preparation of financial statements in conformity with generally accepted accounting principles 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 revenues and expenses during the reporting period. Actual results could differ from those estimates. These estimates and assumptions include determining the fair market value of the Company’s inventory, the collectability of accounts receivable, the value of deferred taxes and related valuation allowances. Certain of the Company’s estimates, including evaluating the collectability of accounts receivable and the fair market value of inventory, could be affected by external conditions, including those particular to the Company’s industry, and general economic conditions. It is possible that these external factors could have an effect on the Company’s estimates that could cause actual results to differ from the Company’s estimates. The Company re-evaluates all of its accounting estimates at least quarterly based on these conditions and records adjustments when necessary.

Fair Value Measurement, Policy [Policy Text Block]

Fair value measurements

ASC Topic 820 defines fair value, establishes a framework for measuring fair value and enhances disclosure requirements for fair value measurements. This topic does not require any new fair value measurements. ASC Topic 820 defines fair value as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, ASC Topic 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:

Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 — Other inputs that are directly or indirectly observable in the marketplace.

Level 3 — Unobservable inputs which are supported by little or no market activity.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. In accordance with ASC Topic 820, the Company measures its securities available for sale at fair value. The securities available for sale are classified within Level 1 since they are valued using quoted market prices.

Revenue Unearned Revenue [Policy Text Block]

Revenue / Unearned Revenue

The Company’s revenue recognition policy is in accordance with the requirements of Staff Accounting Bulletin, “SAB,” No. 104, Revenue Recognition, “SAB 104,” ASC Topic 605, Accounting for Consideration Given by a Vendor to a Customer, Including a Reseller of the Vendor’s Products, and other applicable revenue recognition guidance and interpretations.  Sales revenue is recognized when a formal arrangement exists with the customers, the price is fixed or determinable, the delivery is completed, no other significant obligations of the Company exist and collectability is reasonably assured.  Payments received before all relevant criteria for revenue recognition are satisfied are recorded as unearned revenue, which is recorded as a liability until the products are delivered. Sales are recorded when the products are received by Affiliates and risk of ownership has passed.

The Company pays commissions to the Affiliates based upon, among other things, their purchases from the Company and purchases by other Affiliates who were recommended to the Company. Commissions paid to the Company’s Affiliates are considered to be a reduction of the selling prices of its products, and are recorded as a reduction of revenue.  The Company’s policy is to pay out commission to Affiliates upon receipt of sales orders even before revenue can be recognized.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent accounting pronouncements

There are no new accounting pronouncements adopted or enacted during the three and six months ended September 30, 2016 that had, or are expected to have, a material impact on the Company’s financial statements.

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SECURITIES AVAILABLE FOR SALE (Tables)

6 Months Ended

Sep. 30, 2016

Investments, Debt and Equity Securities [Abstract]

Available-for-sale Securities [Table Text Block]

Securities available for sale consist of the following:

	September 30, 2016
	Amortized		Unrealized		Unrealized		Market		Average
	Cost		Gains		Losses		Value		Duration (1)
Corporate bonds	$	155,132	$	2,018	$	(2,932)	$	154,218		4.55
Corporate notes		576,258		7,777		(5,303)		578,732		1.57
Total debt securities	$	731,390	$	9,795	$	(8,235)	$	732,950

	March 31, 2016
	Amortized		Unrealized		Unrealized		Market		Average
	Cost		Gains		Losses		Value		Duration (1)
Corporate bonds	$	235,901	$	2,276	$	(2,773)	$	235,404		4.67
Corporate notes		573,497		5,720		(4,277)		574,940		2.07
Total debt securities	$	809,398	$	7,996	$	(7,050)	$	810,344

(1) Average remaining duration to maturity, in years.

Schedule of Unrealized Loss on Investments [Table Text Block]

The following table shows the gross unrealized losses and fair value of the Company’s investments, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, as of September 30, 2016:

	Less than 1 year				1 Year or More				Total
	Market		Unrealized		Market		Unrealized		Market		Unrealized
	Value		Losses		Value		Losses		Value		Loss
Corporate bonds	$	-	$	-	$	69,411	$	(2,932)	$	69,411	$	(2,932)
Corporate notes		-		-		257,732		(5,303)		257,732		(5,303)
Total debt securities	$	-	$	-	$	327,143	$	(8,235)	$	327,143	$	(8,235)

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INVENTORIES (Tables)

6 Months Ended

Sep. 30, 2016

Inventory Disclosure [Abstract]

Schedule of Inventory, Current [Table Text Block]

The components of inventories were as follows:

	September 30,		March 31,
	2016		2016
Raw materials and supplies	$	39,321	$	40,537
Finished goods		149,788		180,902
	$	189,109	$	221,439

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OTHER CURRENT LIABILITIES (Tables)

6 Months Ended

Sep. 30, 2016

Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract]

Other Liabilities [Table Text Block]

Accrued and other current liabilities consist of the following:

	September		March
	30, 2016		31, 2016
Payroll liabilities	$	42,590	$	42,593
Warranty liabilities		1,471		1,589
Accrued commission		179,047		1,583,740
Accrued contingent guarantee		4,587,596		4,453,755
Accrued expenses		337,064		379,985
Interest and penalty for income tax accrued		138,413		136,190
Others		3,165		3,922
	$	5,289,346	$	6,601,774

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INCOME TAXES (Tables)

6 Months Ended

Sep. 30, 2016

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The income tax expense consists of the following:

	Six Months Ended
	September 30,
	2016		2015
Current:
Domestic – Federal	$	-	$	-
– State		2,869		-
Foreign		-		-
Deferred		-		-
Effect of IRS audit		-		(3,965,606)
Income tax expense	$	2,869	$	(3,965,606)

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

A reconciliation of income taxes, with the amounts computed by applying the statutory federal income tax rate, 37% for the six months ended September 30, 2016 and 2015, to income before income taxes for the six months ended September 30, 2016 and 2015, is as follows:

	Six Months Ended
	September 30,
	2016		2015
Income tax provision (benefit) at U.S. statutory rate	$	(797,206)	$	(626,275)
State tax		2,869		-
Deferred tax valuation allowance		796,270		774,322
Nondeductible expenses		936		(148,047)
Effect of IRS audit		-		(3,965,606)
Income tax expense	$	2,869	$	(3,965,606)

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SEGMENT INFORMATION (Tables)

6 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

The following tables provide the business segment information as of and for the three and six months ended September 30, 2016 and 2015. Income tax allocations have been determined based on statutory rates in the applicable business segment.

	Three months ended September 30, 2016
	Online		Beverage		Unallocated
	business		business		items		Total
Total revenues, net	$	67,977	$	-	$	-	$	67,977
Total cost of revenues		(44,440)		-		-		(44,440)
Gross profit		23,537		-		-		23,537
Operating expenses:
Selling, general and administrative expenses		410,806		(34,278)		518,789		895,317
Provision for inventory obsolescence		11,395		-		-		11,395
Royalty expenses		125,000		-		-		125,000
Total operating expenses		547,201		(34,278)		518,789		1,031,712
Net operating income (loss)		(523,664)		34,278		(518,789)		(1,008,175)
Other income		14,934		1		1,373		16,308
Allocated income tax expense		-		-		-		-
Income (loss) after income tax		(508,730)		34,279		(517,416)		(991,867)
Total long-lived assets		768		610,496		9,683,782		10,295,046
Additions to long-lived assets		-		-		-		-

	Three months ended September 30, 2015
	Online		Beverage		Unallocated
	business		business		items		Total
Total revenues, net	$	157,871	$	-	$	-	$	157,871
Total cost of revenues		(68,161)		-		-		(68,161)
Gross profit		89,710		-		-		89,710
Operating expenses:
Selling, general and administrative expenses		404,486		40,776		767,145		1,212,407
Royalty expenses		125,000		-		-		125,000
Total operating expenses		529,486		40,776		767,145		1,337,407
Net operating loss		(439,776)		(40,776)		(767,145)		(1,247,697)
Other income		14,935		1		969,549		984,485
Allocated income tax benefit		-		-		3,965,606		3,965,606
Income (loss) after income tax		(424,841)		(40,775)		4,168,010		3,702,394
Total long-lived assets		2,475		780,423		641		783,539
Additions to long-lived assets		1,249		-		-		1,249

	Six months ended September 30, 2016
	Online		Beverage		Unallocated
	business		business		items		Total
Total revenues, net	$	160,632	$	-	$	-	$	160,632
Total cost of revenues		(99,482)		-		-		(99,482)
Gross profit		61,150		-		-		61,150
Operating expenses:
Selling, general and administrative expenses		830,731		13,574		1,142,632		1,986,937
Provision for inventory obsolescence		20,967		-		-		20,967
Royalty expenses		250,000		-		-		250,000
Total operating expenses		1,101,698		13,574		1,142,632		2,257,904
Net operating loss		(1,040,548)		(13,574)		(1,142,632)		(2,196,754)
Other income		36,926		1		964		37,891
Allocated income tax expense		-		-		(2,869)		(2,869)
Loss after income tax		(1,003,622)		(13,573)		(1,144,537)		(2,161,732)
Total long-lived assets		768		610,496		9,683,782		10,295,046
Additions to long-lived assets		-		-		1,708		1,708

	Six months ended September 30, 2015
	Online		Beverage		Unallocated
	business		business		items		Total
Total revenues, net	$	258,238	$	-	$	-	$	258,238
Total cost of revenues		(116,404)		-		-		(116,404)
Gross profit		141,834		-		-		141,834
Operating expenses:
Selling, general and administrative expenses		853,872		87,290		1,616,442		2,557,604
Provision for inventory obsolescence		6,409		-		-		6,409
Royalty expenses		250,000		-		-		250,000
Total operating expenses		1,110,281		87,290		1,616,442		2,814,013
Net operating loss		(968,447)		(87,290)		(1,616,442)		(2,672,179)
Other income		41,440		1		933,927		975,368
Allocated income tax benefit		-		-		3,965,606		3,965,606
Income (loss) after income tax		(927,007)		(87,289)		3,283,091		2,268,795
Total long-lived assets		2,475		780,423		641		783,539
Additions to long-lived assets		1,249		-		-		1,249

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ORGANIZATION (Details Textual)	6 Months Ended
	Sep. 30, 2016
Organization [Line Items]
Entity Incorporation, State Country Name	Nevada
Entity Incorporation, Date Of Incorporation	Mar. 19, 1992
Business Acquisition Name Of Acquired Entity,Net	EFT Biotech Holdings, Inc
Number of Reportable Segments	2

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GOING CONCERN (Details Textual) - USD ($)	Sep. 30, 2016	Mar. 31, 2016
Working Capital Deficit	$ 11,910,907
Retained Earnings (Accumulated Deficit), Total	$ (54,155,174)	$ (51,997,694)

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual)	6 Months Ended
	Sep. 30, 2016
Summary Of Significant Accounting Policies [Line Items]
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions	91.70%

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SECURITIES AVAILABLE FOR SALE (Details) - USD ($)		6 Months Ended	12 Months Ended
		Sep. 30, 2016	Mar. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost		$ 731,390	$ 809,398
Available-for-sale Securities, Unrealized Gains		9,795	7,996
Available-for-sale Securities, Unrealized Losses		(8,235)	(7,050)
Available-for-sale Securities, Market Value		732,950	810,344
Corporate Bond Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost		155,132	235,901
Available-for-sale Securities, Unrealized Gains		2,018	2,276
Available-for-sale Securities, Unrealized Losses		(2,932)	(2,773)
Available-for-sale Securities, Market Value		$ 154,218	$ 235,404
Available For Sale Securities, Average Duration	[1]	4 years 6 months 18 days	4 years 8 months 1 day
Corporate Note Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost		$ 576,258	$ 573,497
Available-for-sale Securities, Unrealized Gains		7,777	5,720
Available-for-sale Securities, Unrealized Losses		(5,303)	(4,277)
Available-for-sale Securities, Market Value		$ 578,732	$ 574,940
Available For Sale Securities, Average Duration	[1]	1 year 6 months 25 days	2 years 25 days

[1] Average remaining duration to maturity, in years.

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SECURITIES AVAILABLE FOR SALE (Details 1)	Sep. 30, 2016 USD ($)
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Less than 1 year, Market Value	$ 0
Available-for-sale Securities, Less than 1 year, Unrealized Losses	0
Available-for-sale Securities, 1 Year or More, Market Value	327,143
Available-for-sale Securities, 1 year or More, Unrealized Losses	(8,235)
Available-for-sale Securities, Market Value	327,143
Available-for-sale Securities, Unrealized Losses	(8,235)
Corporate Bond Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Less than 1 year, Market Value	0
Available-for-sale Securities, Less than 1 year, Unrealized Losses	0
Available-for-sale Securities, 1 Year or More, Market Value	69,411
Available-for-sale Securities, 1 year or More, Unrealized Losses	(2,932)
Available-for-sale Securities, Market Value	69,411
Available-for-sale Securities, Unrealized Losses	(2,932)
Corporate Note Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Less than 1 year, Market Value	0
Available-for-sale Securities, Less than 1 year, Unrealized Losses	0
Available-for-sale Securities, 1 Year or More, Market Value	257,732
Available-for-sale Securities, 1 year or More, Unrealized Losses	(5,303)
Available-for-sale Securities, Market Value	257,732
Available-for-sale Securities, Unrealized Losses	$ (5,303)

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SECURITIES AVAILABLE FOR SALE (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Schedule of Available-for-sale Securities [Line Items]
Available-For-Sale Securities, Gross Realized Gain (Loss)	$ 1,290	$ (9,258)	$ 1,302	$ (12,850)
Proceeds from Sale and Maturity of Marketable Securities			$ 80,769

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INVENTORIES (Details) - USD ($)	Sep. 30, 2016	Mar. 31, 2016
Inventory [Line Items]
Raw materials and supplies	$ 39,321	$ 40,537
Finished goods	149,788	180,902
Inventory, Gross	$ 189,109	$ 221,439

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LOANS TO RELATED PARTIES AND RELATED PARTY TRANSACTIONS (Details Textual)	1 Months Ended		6 Months Ended		12 Months Ended
	Feb. 29, 2016 USD ($)	Jun. 24, 2015 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Apr. 02, 2015 USD ($) ft²
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction			$ 500,000
Operating Lease And Monthly Rental Expense Description			The percentage is 5% for the first $30 million in gross sales, 4% for the $10 million in gross sales in excess of $30 million, 3% for the $10 million in gross sales in excess of $40 million; 2% for the $10 million in gross sales in excess of $50 million; and 1% for the $10 million in gross sales in excess of $60 million
Payments to Fund Long-term Loans to Related Parties	$ 1,000,000
Director and President [Member]
Related Party Transaction [Line Items]
Operating Leases, Rent Expense				$ 42,983
EFT Assets Limited [Member]
Related Party Transaction [Line Items]
Accrued Royalties			$ 250,000	250,000
Operating Lease And Monthly Rental Expense Description			In March 2010, the Company’s subsidiary, EFT International Ltd., entered into a consulting agreement with JFL Capital Limited (“JFL”), a company of which Wendy Qin serves as a director and is one of the principal shareholders. Under this agreement, JFL will provide consulting services on administration, financial matters, corporate planning and business development commencing on April 1, 2010, with an annual fee of $315,000. The annual fee is increased at the rate of $15,000 each year starting from April 1, 2011. The agreement may be terminated by either party on three months’ written notice.
Langham Office Owners [Member]
Related Party Transaction [Line Items]
Operating Leases, Rent Expense		$ 15,319			$ 10,735
Area of Land | ft²					2,500
JFL Capital Limited [Member]
Related Party Transaction [Line Items]
Operating Lease And Monthly Rental Expense Description			In March 2010, the Company’s subsidiary, EFT International Ltd., entered into a consulting agreement with JFL Capital Limited (“JFL”), a company of which Wendy Qin serves as a director and is one of the principal shareholders. Under this agreement, JFL will provide consulting services on administration, financial matters, corporate planning and business development commencing on April 1, 2010, with an annual fee of $315,000. The annual fee is increased at the rate of $15,000 each year starting from April 1, 2011. The agreement may be terminated by either party on three months’ written notice.
Management Fee Expense			$ 202,500	$ 195,000

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OTHER CURRENT LIABILITIES (Details) - USD ($)	Sep. 30, 2016	Mar. 31, 2016
Payroll liabilities	$ 42,590	$ 42,593
Warranty liabilities	1,471	1,589
Accrued commission	179,047	1,583,740
Accrued contingent guarantee	4,587,596	4,453,755
Accrued expenses	337,064	379,985
Interest and penalty for income tax accrued	138,413	136,190
Others	3,165	3,922
Accrued Liabilities and Other Liabilities, Total	$ 5,289,346	$ 6,601,774

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CONTINGENT LIABILITIES (Details Textual)				1 Months Ended								2 Months Ended	12 Months Ended
	Jan. 05, 2016 USD ($)	Jan. 05, 2016 CNY (¥)	Nov. 05, 2014 CNY (¥)	Jul. 18, 2016 USD ($)	Jul. 18, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)	Jan. 16, 2014 USD ($)	Jan. 16, 2014 CNY (¥)	Jan. 16, 2014 CNY (¥)	Mar. 22, 2012 USD ($)	Mar. 22, 2012 CNY (¥)	Aug. 18, 2016 CNY (¥)	Dec. 31, 2009 USD ($)	Dec. 31, 2009 CNY (¥)	Sep. 30, 2016 USD ($)	Sep. 30, 2016 CNY (¥)	Mar. 31, 2016 USD ($)
Other Commitments [Line Items]
Payment Of Final Construction													$ 112,500	¥ 698,896
Purported Outstanding Payments	$ 123,988	¥ 827,000	¥ 1,823,787			¥ 1,123,266	$ 199,536	¥ 1,326,916		$ 308,000	¥ 1,912,000
Loss Contingency, Damages Awarded, Value | ¥									¥ 1,326,916
Discontinued Operation, Amounts of Material Contingent Liabilities Remaining | $															$ 123,988		$ 205,087
Water Manufacturing Plant [Member]
Other Commitments [Line Items]
Manufacturing Costs													$ 766,000	¥ 4,758,600
Loss Contingency, Damages Awarded, Value				$ 123,988	¥ 827,000							¥ 827,000
Discontinued Operation, Amounts of Material Contingent Liabilities Remaining															$ 199,536	¥ 1,326,916

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SHORT-TERM LOAN (Details Textual) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Directors and Officers Liability Insurance [Member]
Statement [Line Items]
Loans From Third Party	$ 462,170	$ 503,200
Debt Instrument, Interest Rate During Period	3.60%	3.60%
Debt Instrument, Frequency of Periodic Payment	nine equal payments	nine equal payments
Short-term Debt [Member]
Statement [Line Items]
Debt Instrument, Periodic Payment	$ 52,126	$ 56,753

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INCOME TAXES (Details) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Current:
Domestic - Federal			$ 0	$ 0
- State			2,869	0
Foreign			0	0
Deferred			0	0
Effect of IRS audit			0	(3,965,606)
Income tax expense	$ 0	$ (3,965,606)	$ 2,869	$ (3,965,606)

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INCOME TAXES (Details 1) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Taxes [Line Items]
Income tax provision (benefit) at U.S. statutory rate			$ (797,206)	$ (626,275)
State tax			2,869	0
Deferred tax valuation allowance			796,270	774,322
Nondeductible expenses			936	(148,047)
Effect of IRS audit			0	(3,965,606)
Income tax expense	$ 0	$ (3,965,606)	$ 2,869	$ (3,965,606)

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INCOME TAXES (Details Textual)	6 Months Ended
	Sep. 30, 2016
Income Taxes [Line Items]
Consideration for Management Service, Description	EFT (HK) Ltd provides management service to a BVI subsidiary, and the BVI subsidiary reimburses EFT (HK) Ltd for its total operating expenses plus a 5% mark up, and the income is subject to a 16.5% profit tax.
HK SAR [Member]
Income Taxes [Line Items]
Effective Rate of Income Tax	16.50%
Subsidiary In Taiwan [Member]
Income Taxes [Line Items]
Standard Enterprise Income Tax	17.00%
Subsidiary In Mainland China [Member]
Income Taxes [Line Items]
Standard Enterprise Income Tax	25.00%

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SEGMENT INFORMATION (Details) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Segment Reporting Information [Line Items]
Total revenues, net	$ 67,977	$ 157,871	$ 160,632	$ 258,238
Total cost of revenues	(44,440)	(68,161)	(99,482)	(116,404)
Gross profit	23,537	89,710	61,150	141,834
Operating expenses:
Selling, general and administrative expenses	895,317	1,212,407	1,986,937	2,557,604
Provision for inventory obsolescence	11,395	0	20,967	6,409
Royalty expenses	125,000	125,000	250,000	250,000
Total operating expenses	1,031,712	1,337,407	2,257,904	2,814,013
Net operating income (loss)	(1,008,175)	(1,247,697)	(2,196,754)	(2,672,179)
Other income	16,308	984,485	37,891	975,368
Allocated income tax expense benefit	0	(3,965,606)	2,869	(3,965,606)
Income (loss) after income tax	(991,867)	3,702,394	(2,161,732)	2,268,795
Total long-lived assets	10,295,046	783,539	10,295,046	783,539
Additions to long-lived assets	0	1,249	1,708	1,249
Online Businesses [Member]
Segment Reporting Information [Line Items]
Total revenues, net	67,977	157,871	160,632	258,238
Total cost of revenues	(44,440)	(68,161)	(99,482)	(116,404)
Gross profit	23,537	89,710	61,150	141,834
Operating expenses:
Selling, general and administrative expenses	410,806	404,486	830,731	853,872
Provision for inventory obsolescence	11,395		20,967	6,409
Royalty expenses	125,000	125,000	250,000	250,000
Total operating expenses	547,201	529,486	1,101,698	1,110,281
Net operating income (loss)	(523,664)	(439,776)	(1,040,548)	(968,447)
Other income	14,934	14,935	36,926	41,440
Allocated income tax expense benefit	0	0	0	0
Income (loss) after income tax	(508,730)	(424,841)	(1,003,622)	(927,007)
Total long-lived assets	768	2,475	768	2,475
Additions to long-lived assets	0	1,249	0	1,249
Beverage Business [Member]
Segment Reporting Information [Line Items]
Total revenues, net	0	0	0	0
Total cost of revenues	0	0	0	0
Gross profit	0	0	0	0
Operating expenses:
Selling, general and administrative expenses	(34,278)	40,776	13,574	87,290
Provision for inventory obsolescence	0		0	0
Royalty expenses	0	0	0	0
Total operating expenses	(34,278)	40,776	13,574	87,290
Net operating income (loss)	34,278	(40,776)	(13,574)	(87,290)
Other income	1	1	1	1
Allocated income tax expense benefit	0	0	0	0
Income (loss) after income tax	34,279	(40,775)	(13,573)	(87,289)
Total long-lived assets	610,496	780,423	610,496	780,423
Additions to long-lived assets	0	0	0	0
Unallocated items [Member]
Segment Reporting Information [Line Items]
Total revenues, net	0	0	0	0
Total cost of revenues	0	0	0	0
Gross profit	0	0	0	0
Operating expenses:
Selling, general and administrative expenses	518,789	767,145	1,142,632	1,616,442
Provision for inventory obsolescence	0		0	0
Royalty expenses	0	0	0	0
Total operating expenses	518,789	767,145	1,142,632	1,616,442
Net operating income (loss)	(518,789)	(767,145)	(1,142,632)	(1,616,442)
Other income	1,373	969,549	964	933,927
Allocated income tax expense benefit	0	3,965,606	(2,869)	3,965,606
Income (loss) after income tax	(517,416)	4,168,010	(1,144,537)	3,283,091
Total long-lived assets	9,683,782	641	9,683,782	641
Additions to long-lived assets	$ 0	$ 0	$ 1,708	$ 0

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LITIGATION (Details Textual)									1 Months Ended												2 Months Ended	12 Months Ended
	Sep. 06, 2016 USD ($)	Jun. 09, 2016 USD ($)	Mar. 04, 2016 SGD	Jan. 05, 2016 USD ($)	Jan. 05, 2016 CNY (¥)	Oct. 15, 2015 SGD	Nov. 05, 2014 CNY (¥)	Jul. 09, 2009	Jul. 18, 2016 USD ($)	Jul. 18, 2016 CNY (¥)	Jun. 19, 2016 SGD	Dec. 31, 2015 CNY (¥)	Jun. 22, 2015 USD ($)	Jan. 16, 2014 USD ($)	Jan. 16, 2014 CNY (¥)	Jan. 16, 2014 CNY (¥)	Nov. 29, 2013 USD ($)	Mar. 22, 2012 USD ($)	Mar. 22, 2012 CNY (¥)	Aug. 31, 2010 USD ($)	Aug. 18, 2016 CNY (¥)	Dec. 31, 2009 USD ($)	Dec. 31, 2009 CNY (¥)
Loss Contingencies [Line Items]
Loss Contingency, Damages Sought, Value						SGD 307,000											$ 200,000			$ 19,000,000		$ 112,500	¥ 698,896
Loss Contingency, Damages Paid, Value | ¥					¥ 120,000
Purported Outstanding Payments				$ 123,988	¥ 827,000		¥ 1,823,787					¥ 1,123,266		$ 199,536	¥ 1,326,916			$ 308,000	¥ 1,912,000
Litigation Settlement, Amount	$ 2,500,000
Loss Contingency, Damages Awarded, Value | ¥																¥ 1,326,916
Legal Fees | SGD			SGD 85,000								SGD 85,000
Lim Lan Eng Priscilla and Marinteknik [Member]
Loss Contingencies [Line Items]
Loss Contingency, Damages Sought, Value		$ 162,720.38
Greenstone Holdings, Inc. v. EFT Holdings, Inc [Member]
Loss Contingencies [Line Items]
Loss Contingency, Damages Sought, Value													$ 150,000
Unpaid Services and Out Of Pocket Expenses [Member]
Loss Contingencies [Line Items]
Loss Contingency, Name of Plaintiff								Marinteknik Shipbuilders (S) Pte Ltd
Loss Contingency, Name of Defendant								Excalibur
Water Manufacturing Plant [Member]
Loss Contingencies [Line Items]
Manufacturing Costs																						$ 766,000	¥ 4,758,600
Loss Contingency, Damages Awarded, Value									$ 123,988	¥ 827,000											¥ 827,000