UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K/A10-K

For The Fiscal Year Ended December 31, 20202021

or

For the transition period from _______________ to _______________

Commission File Number 333-208083

DSwiss, Inc.

(Exact name of registrant issuer as specified in its charter)

Unit 18-11, 18-12 & 18-01, Tower A, Vertical Business Suite,

Avenue 3, Bangsar South, No.8 Jalan Kerinchi, 59200, Kuala Lumpur, Malaysia.

(Address of principal executive offices, including zip code)

Registrant’s phone number, including area code ((603)603) 2770-4032

Securities registered pursuant to Section 12(b) of the Securities Exchange Act: None

Securities registered pursuant to Section 12(g) of the Securities Exchange Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 9090 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (section 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 ☐ NoNO ☒

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ☐

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

Large Accelerated Filer ☐ Accelerated Filer ☐ Non-accelerated Filer ☐ Smaller reporting company ☒ Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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

Yes ☐ ☐No No ☒

The aggregate market value of the Company’s common stock held by non-affiliates computed by reference to the closing bid price of the Company’s common stock, as of the last business day of the registrant’s most recently completed second fiscal quarter:

NotNaNt Applicable

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

Not Applicable

APPLICABLE ONLY TO CORPORATE REGISTRANTS

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

 0

EXPLANATORY NOTE

This Amendment No. 1 (“Amendment No. 1”) to the Annual Report on Form 10-K of DSwiss Inc., (the “Company”) for the fiscal year ended December 31, 2020 as filed with the Securities and Exchange Commission (the “SEC”) on March 31, 2021 (the “2020 Annual Report”), is being filed to replace the Report of Independent Registered Public Accounting Firm included in the Form 10-K with an additional paragraph in the Report.

Except as described in this Explanatory Note, this Amendment does not modify, amend, or update any of the financial information or any other information set forth in the Form 10-K.

DSwiss, Inc.

FORM 10-K

For the Fiscal Year Ended December 31, 20202021

Index

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Annual Report on Form 10-K contains forward-looking statements. These forward-looking statements are not historical facts but rather are based on current expectations, estimates and projections. We may use words such as “anticipate,” “expect,” “intend,” “plan,” “believe,” “foresee,” “estimate” and variations of these words and similar expressions to identify forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted. These risks and uncertainties include the following:

This report should be read completely and with the understanding that actual future results may be materially different from what we expect. The forward lookingforward-looking statements included in this report are made as of the date of this report and should be evaluated with consideration of any changes occurring after the date of this Report. We will not update forward-looking statements even though our situation may change in the future and we assume no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Use of Defined Terms

Except as otherwise indicated by the context, references in this Report to:

PART I

ITEM 1. BUSINESS

Corporate History

DSwiss, Inc., a Nevada corporation (“the Company”) was incorporated under the laws of the State of Nevada on May 28, 2015.

DSwiss, Inc. operates through its wholly-owned subsidiary, DSwiss Holding Limited, a Company organized under the laws of Seychelles.

The principal activity of the Company and its subsidiaries is to supply high-quality health and beauty products, including beverages to assist in weight management, anti-aging products, and immune system products designed to improve the overall health system in our body.

We have currently conducted our business through DSwiss Sdn. Bhd.,Sdn Bhd, a private limited liability company, incorporated in Malaysia. DSwiss Holding Limited, incorporated in Seychelles is an investment holding company with 100% equity interest in DSwiss (HK) Limited, a company incorporated in Hong Kong, which subsequent hold 100% equity interest in DSwiss Sdn. Bhd. We have invested in DSwiss Biotech Sdn. Bhd., a Company incorporated in Malaysia and owned a 40% equity interest. The Company has incorporated DSwiss International Trading (Shenzhen) Limited in China, with a 100% equity interest on June 21, 2016. On November 9, 2020, DSwiss International Trading (Shenzhen) Limited has deregistered.

The Company, through its subsidiaries and its variable interest entities (“VIEs”), mainly supplies high quality beauty products. Details of the Company’s subsidiaries:

Business Overview

DSwiss is a premier biotech-nutraceutical company, supplying high-quality health and beauty products, including beverages to assist in chronic illness prevention supplement, weight management supplement, anti-aging creams, and products designed to improve the overall health system in our bodies.

Since our establishment, our growth has been tremendous in Malaysia. From a mere selection of two (2) products, the company had expanded to twenty-three (23) products in 2020.2021. With the strong leadership of our company’s Chief Executive Officer; Vincent Leong, our products are now consumed around the world, such as Malaysia, Singapore, Indonesia, Hong Kong, Taiwan, Macau, and China. To date, we had expanded across Asia regions through the support of our distributors and determined to expand our geographical presence to markets that we have yet to explore.

At DSwiss, research and development are an ongoing effort whose purpose is to ensure our products on the forefront of quality and effectiveness. Equipped with state-of-the-art machinery,manufacturing management skill, our innovative research and development team are constantly exploring new development and product lines and implementing the latest science and technology, that will enable us to provide the highest quality standardcreate more evidence-based high value-added formulations and products and remain competitive in the industry. We conduct research and development based on our philosophy of “creating beauty, health and the ecology” to meet customers’ needs. In 2020, DSwiss has utilized food-grade bioflavonoids technology in its sanitiser product series and has helped address the risk of a lack of sanitiser products in Malaysia amid the coronavirus pandemic. Withwith the team’s enormous efforts on product research and development, DSwiss has also successfully delivered a wide range of novel OEM/ODM products that respond to our clients’ needs and create values for society as the developed OEM/ODM products have managed to improve the functional Omega oil blend, mineral supplements such as calcium, magnesium and iron and antibacterial skincare product series.health status of the end consumers. DSwiss is actively embarking on its journey to continue excel in functional food industry and expand into health supplement and pet supplement industry.

DSwiss’s products are certified and approved by the Ministry of Health (“MOH”) Malaysia. Due to the stringent requirements from MOH Malaysia, we strive to upkeep the highest possible standard in our products to provide assurance and continuous commitment to providing quality products. In 2020, DSwiss has fulfilled its last year future plan and ventured to supplying medical consumables in order to reduce the risk of a global shortage amid the coronavirus pandemic.

Talent Development in Product Research and Development

The company hired food science, nutrition and technology professional, herbal science professional and biochemistbiotech professional as our product specialists to involve in developing new product research and development. Such development will require clinical studies, market research and testing of physical products for overall effectiveness, and comply with the Ministry of Health Malaysia & JAKIM Halal standards. Currently, the company is undergoing research on the benefit of functional foods enhancing our human body immune system, eye health, skin health, anticancer, brain development and skin regeneration.

Currently, we are fulfilling last year future plan as in Talent Development, product research and development, and providing Original Equipment Manufacturer (OEM) and Original Design Manufacturer (ODM) services into functional food and beauty product of which is currently under research and development with Malaysia biotech and research professionals. Our professionals manage from custom formulation of scientifically-proven and naturally-effective, sourcing raw materials, production, quality control, stability and safety test, clinical testing by third-party labs, packaging and shipping including import and export, all licenses needed so customer can concentrate on what they should do. In 2020, with our experience and expertise, we have successfully expanded our client base in OEM/ODM services and developed products and Business-to-business (B2B) DNA genotyping private label services that exceedgained a better brand awareness in the clients’ expectation.industry.

Moving forward, we plan to form certain alliances and business partnerships with a few selected local companies from various countries. We strongly believe a healthy business relationship is vital for one’s business expansion, and more importantly; growth. While DSwiss has always been focused on pursuing operations within Asia, we certainly hope to expand our brand across the world in the future.

Our Products

DSwiss Coffee

DSwiss Coffee is a combination of Citrus Extract and eight other natural ingredients for digestive health. Apart from burning the fats, the drink provides a soothing and refreshing sensation.

It helps to:

DSwiss Kiwi

Kiwi helps to strengthen the body’s immune system, improves skin complexion, reduces blood pressure and prevents heart disease and stroke. DSwiss Kiwi helps to reduce the risk of getting gastrointestinal diseases such as irritable stomach disorders and dermatitis.

It helps to:

DSwiss Triple SC

DSwiss Triple SC focuses on stem cell and consists of three (3) types of cell’s combination which includes Apple Stem Cells, Argan Stem Cells and Grape Stem Cells.

Apple Stem Cells are extracted from the rare “Uttwiler Spatlauber” apples. It contains rich nutrients, protein, and amazing vitality of plant stem cells. It helps to protect and renew skin cells. Argan Stem Cells help maintain functions of dermis to provide elasticity to the skin. In order to maintain elasticity, healthy skin undergoes constant cell turnover, which renews and repairs the dermal connective tissue. It helps to rejuvenate skin cells and reduce wrinkles. Grape Stem Cells protect the skin from chronological and light-induced aging, extending skin cells’ vitality and keeping the skin’s appearance young and beautiful longer. It helps improve the skin’s resistance.

It helps to improve:

Genmune-Pro

Genmune-Pro is a product that helps to boost up the human’s immunity system through enhancing the digestive health. It is uniquely formulated with probiotic strains Bifidobacterium longum BB536, Lactobacillus rhamnosus GG, prebiotic galacto-oligosaccharides and Wellmune® Baker’s Yeast Beta Glucan. Genmune-Pro helps to replenish beneficial bacteria in the gut to support digestive and immune health.

Scientifically proven by more than 150 clinical studies, Bifidobacterium longum BB536 promotes intestinal health, supports a healthy immune system, relieves constipation and enhances bone strength.

Scientifically proven by more than 800 clinical studies, Lactobacillus rhamnosus GG promotes digestive health, protects against upper respiratory tract infections and cavities and improves skin condition.

Wellmune® is a proprietary baker’s yeast beta glucan. It uses a unique mechanism to boost immune system by priming the immune cells to kill foreign bacteria faster. Galacto-oligosaccharides stimulate the growth of probiotic bacteria and retard the growth of harmful bacteria.

It helps to:

DSwiss Silk Mask

The mask is made by natural silk which contains a structure that is similar to human skin. DSwiss Silk Mask best suits for customers who have dry, damaged and sensitive skin. Silk contains 18 types of amino acids to moisturize the skin, strengthens the skin elasticity as well as repairs skin cells. Also, it brightens the skin tone and restores the skin health of users.

Unique Characteristics:

DSwiss Coffee Slimming Scrub

DSwiss Coffee Slimming Scrub is a natural body scrub containing fine uniform particles, mainly used to remove dirt on the skin layers, through a gentle friction with skin. It is also used to exfoliate the skin to remove dead skin, smoothen the skin and promote skin metabolism. The product can be used as face scrub or body scrub. Alternatively, we can use this product to remove dead skin on our joints. The product also helps to eliminate excess fats and may apply to therapeutic use.

DSwiss Peppermint Slimming Gel

DSwiss Peppermint Slimming Gel is an effective cooling agent which brings a cooling and refreshing feeling to the body. Peppermint is one of a commonly used Chinese herb to reduce symptoms of influenza, sore throat, and even weight loss! It helps to provide the slimming effect of silhouette and soothing skin. The purified menthol (active thermo agent) ingredient helps activating cellular micro-circulation. It is also formulated with avant-garde plant extract that aids in reducing stretch mark and scars.

DSwiss New Age Essence

The multi-action DSwiss New Age Essence delivers skin-loving nutrients to moisten, brighten and revive tired looking skin. It brings a youthful vitality to your delicate skin and convenient to be used at anytime, anywhere and whenever you need.

The key active ingredient of the product, RoyalEpigen P5 which inspired by epigenetic science, this peptide mimics royal jelly to maximize its positive effects on the skin. It is a new and biologically-active peptide that activates skin regeneration and glow. Scientists discovered that epigenetic modification may passed down from one generation to the next by the technology of epigenetic science.

Additionally, PhytoCellTec™ is the technology used to generate and cultivate the key active ingredients, Nunatak® stem cell and apple stem cell. PhytoCellTec™ has used the auto-repair function of plant stem cell to replicate a large number of new cells, and then continue to grow into stem cells. This stem cell is filled with regeneration growth factor and metabolic factor, which can enhance DNA repair and slow down aging process. This is one of the remarkable anti-aging discoveries for this century.

It helps to:

DSwiss Enlighten Essence (“EE”) Cream

Brightened, Flawless, Even- toned. This extraordinary Luminous White Cream is effective to cover skin imperfection, yet providing a natural look on skin throughout the day. It is a light and nourishing cream adapted to all skin types, to protect, conceal, and enlivens, dull looking complexions for a luminous complexion.

PhytoCellTec™ is the technology used to generate and cultivate the key active ingredients, Nunatak® stem cell and apple stem cell. PhytoCellTec™ has used the auto-repair function of plant stem cell to replicate a large number of new cells, and then continue to grow into stem cells. This stem cell is filled with regeneration growth factor and metabolic factor, which can enhance DNA repairing and slow down aging process. This is one of the remarkable anti-aging discoveries for this century.

SuiSu Hand Purifier and Sanitiser

SuiSu Hand Purifier and Sanitiser is a powerful alcohol-free antibacterial hand sanitiser that is effective in maintaining the hand hygiene, keeping the skin moisturized, soft and protecting the hands against germs and viruses. The food-grade bioflavonoid technology used was tested and proven to be effective against common household bacteria, molds, fungi and even coronavirus. This advanced and unique ingredient is certified by BioGro Organic New Zealand,

Australian Therapeutic Goods Administration, EcoCert Cosmos Natural, NASAA Organic and even FDA GRAS. Being chemical- free and non- toxic, the product is safe and harmless for kids and family.

SuiSu Air Sanitiser

SuiSu Air Sanitiser maintains the surrounding air clean and fresh for a healthier living. It is ideal for cleaning surfaces and area that you come into contact with every day, such as door handles, kitchen bins, toilet areas, curtains, sofas, mattresses and most soft fabrics. The food-grade bioflavonoid technology used was tested and proven to be effective against common household bacteria, molds, fungi and even coronavirus. This advanced and unique ingredient is certified by BioGro Organic New Zealand, Australian Therapeutic Goods Administration, EcoCert Cosmos Natural, NASAA Organic and even FDA GRAS. Being chemical- free and non- toxic, the product is safe and harmless for children and pet.

SkinEra

Specially formulated to deliver unique 5-in-1 skin solutions: antibacterial, anti-inflammatory, antioxidant, epidermis repair and moisturizing. SkinEra is infused with the unique bioflavonoid technology, mangosteen skin extract and high purity essential oils, its premium quality delivers a sophisticated key to skin problems such as acne, pimples, atopic dermatitis, dry skin and even allergy rashes.

SensiBath

SensiBath is saturated with high moisturizing factor to replenish the moisture stripped from our everyday life activities and maintain the skin barrier moist and healthy through filaggrin boost. Its skin barrier strengthening ability is able to hydrate and relieve skin problems such as dry skin, atopic dermatitis, wrinkles and acne. The gentle formulation is hypoallergenic, dermatologically-tested and dedicated to provide a 24-hour long-lasting hydration and moisturization after single use, thus able to re-energize and regenerate skin cells for silky smooth skin.

Medical Consumables

DSwiss BioSpec

DSwiss BioSpec is a medical eye-wear which provides health benefits to our eyes.

(1) Frame

The main components of the DSwiss BioSpec frame are Negative Ions, Far Infra Ray, Nano Silver, and Germanium.

(2) Lens

The main components of DSwiss BioSpec lenses are UV 400 filters, Anti-blue Light, and Far Infrared.

Major Features:

Genmune-Pro

Genmune-Pro is a product that helps to boost up the human’s immunity system through enhancing the digestive health. It is uniquely formulated with probiotic strains Bifidobacterium longum BB536, Lactobacillus rhamnosus GG, prebiotic galacto-oligosaccharides and Wellmune® Baker’s Yeast Beta Glucan. Genmune-Pro helps to replenish beneficial bacteria in the gut to support digestive and immune health.

Scientifically proven by more than 150 clinical studies, Bifidobacterium longum BB536 promotes intestinal health, supports a healthy immune system, relieves constipation and enhances bone strength.

Scientifically proven by more than 800 clinical studies, Lactobacillus rhamnosus GG promotes digestive health, protects against upper respiratory tract infections and cavities and improves skin condition.

Wellmune® is a proprietary baker’s yeast beta glucan. It uses a unique mechanism to boost immune system by priming the immune cells to kill foreign bacteria faster. Galacto-oligosaccharides stimulate the growth of probiotic bacteria and retard the growth of harmful bacteria.

It helps to:

Our Equipment

DSwiss Quantum Magnetic Analyzer

In year 2017, DSwiss launched Quantum Magnetic Analyzer, an equipment that rapidly reads and analyze body energy field to test the health status and suggest recommendations. Simply by holding sensors in your palm, health data from multiple body systems will be collected and analysed within minutes.

The DSwiss Quantum Magnetic Analyzer offers new high-tech innovation to collect data from the magnetic field of human cells for scientific analysis. This provides the user with a guide to determining their health status and potential problematic areas with solution recommendations.

DSwiss Quantum Magnetic Analyzer provides more than 30 types of test analysis. A complete health screening will help you to assess your overall health and identify the risk factors for disease.

AI Skin Analyzer Machine

The intelligent facial camera is one of the recognized statistical instruments for facial skin image data. Capable of capturing high-definition facial images in RGB+UV+PL three-spectrum, it uses artificial intelligence (AI) algorithms to analyze skin features for the beauty industry. It also provides a data reference for tailored skincare solutions in the beauty industry.

By running the smart camera software in the tablet, the controller receives the tablet software command. This allows for change of the constant current source to control the corresponding LED light. The tablet is connected to the camera through the USB port to collect image analysis.

Major Functions:

It analyses the conditions of skin through different aspects:

Unique Characteristics:

International Turnkey Private Label Manufacturing Service

Our professionals manage from custom formulation of scientifically-proven and naturally-effective, sourcing raw materials, production, quality control, stability and safety test, clinical testing by third-party labs, packaging and shipping including import and export, all licenses needed so customer can concentrate on what they should do. We have export and import experience in dealing with both overseas and domestic customers.

Besides, we ventured into the genetic testing field and provide private label DNA screening service. The DNA analysis is performed at accredited laboratory with international recognized quality standards and protocols. The information processed is handled with utmost accuracy and trusted security in order to protect the privacy of users.

Turnkey Private Label OEM/ODM Services Products

Yumeka Hair Shampoo and Conditioner

Yumeka Hair Shampoo and Conditoner are all- natural hair care products that serve 5R functions: Repair, Refresh, Restore, Reinforce and Revitalize. They are effective in reducing itchy scalp, dandruff and oil production as well as moisturize hair scalp and strengthening the hair roots, resulting in lustrous silky-smooth hair. The mild formulation in Yumeka makes it free of SLS, SLES, parabens, sillicone and thus user- friendly.

The key ingredient of this product, Cleomilk®, is a plant- based phytomilk that reduces moisure loss from skin, improves re-lipidation effect and reinforces the skin’s natural water storage. Multiple in-vivo tests conducted have shown that the long-chain polysaccharides will form a protective film on the skin to reduce trans-epidermal water loss. Then, the lamellar lipid matrix and natural moisturizing factors within our skin or scalp structure can be supported and reinforced well enough.

The microbiota on our hair lives a delicate balance and our daily activities might easily disturb it. The prebiotic in the product serves as a food supplement for the protective skin biota which cannot be digested by the harmful ones. It forms a protective anti-microbial shield against hostile organisms and important changes such as UV light, pollutants and cleansing products, promoting healthy hair growth and scalp.

MasterLiv

MasterLiv is a unique formula that includes a blend of Turmeric Root, Milk Thistle, Chlorophyll, Selenium and Wheatgrass. It is formulated to help support liver health and the body’s vital detoxification processes. The blend of nutrients and plant extracts in MasterLiv protects the liver from free-radical damage, promotes cellular lifespan and supports optimal detox performance by empowering the liver’s capacity. By effectively aiding in removing the accumulated toxin in liver, it enhances the energy level and help combat tiredness. The formulation is free of preservative, drug ingredient, toxic chemical and hormone.

MasterHeart

MasterHeart is a combination of nutrients and plant extracts including Ganoderma lucidum, Panax ginseng, vitamin K2, goji berry and Kombu, designed to support the heart’s role in these processes and help maintain optimum heart health and smooth blood circulation for lower risk of developing coronary heart diseases. The unique natural formulation is free of stimulants, hence suitable for all ages and will not contribute to any side effects.

WellG

WellG is a synergistic combination of nutrients and powerful botanicals such as bitter melon extract, fulvic acid, chromium, ALA and L-arabinose, providing the important nutrients needed for the metabolism of sugar, and for energy production. This unique combination of ingredients naturally supports healthy blood sugar balance and energy metabolism, as well as cardiovascular and immune health, for overall well-being. The formulation is free of preservative, drug ingredient, toxic chemical and hormone.

DNA Microarray Genotyping

As we have thorough understanding of the market, paired with sound technical expertise, this enables us to develop innovative products and solutions at a defined quality level, tailored to the multifaceted needs of our clients in the areas of functional food, skincare and personal care products. With our well-established processes, many years of experience and complimentary nutrition/technical consultation, our clients benefit from the best possible delivery times and a high service quality.

Genotyping detects small genetic differences that can lead to crucial changes in physical composition, including both physical differences that make someone special and pathological changes underlying disease. Our genotyping is using Asian Screening Array to yield better results and analyzing over 550 different genes. A comprehensive insight about nutrient needs, drug sensitivity, health risk, carrier status and many more is provided with more than 500k markers tested, over 100 alleles compared and above 300 actions suggested.

Trademark

The Company owned several trademark registerregisters under its subsidiaries in respective jurisdiction of which the subsidiary is operates.

Future Plan

Marketing Campaign and Publicity Enhancement

The Company is actively seeking opportunity to increase the market share of beauty and health industry locally and overseas, which requires continuous spending on marketing campaign primarily via social media and other online e-commerce platformpartners which already in place currently to ensure the company product exposure and brand awareness.

Future marketing campaign and publicity enhancement will be conduct thru but not limited to following:

Human Resources and Talent Development

Taking into consideration of the aforementioned development, the company is well aware that with existing manpower is far from sufficient to the materialization of future plan, thus spending on human resources and talent development is inevitable, including but not limited to internal admin and operation, sales and marketing, accounting and finance as well as top management. Besides, we would like to invest in the pet supplement innovation and development and explore new business opportunities in the growing pet supplement industry.

Merger and Acquisition

The Company is actively seeking opportunity to merge and acquire potential target company to derive extraordinary synergies in multiple segments but limited to healthcare, bio-technology, beauty slimming and wellness, food science and related industries. The management believe that organic growth itself is incapable of coping with the expectation of shareholders in the current dynamic business environment, thus via merger and acquisition the Company can create greater value to every stakeholder not limited to shareholders.

Marketing

We recognizerecognise the growing trend of social media and because of that, the management had decided to place a higher priority on social media for our marketing strategy. Coupled with the extensive networks we had built since our inception, the nature of our job has become easier and efficient to reach out to our clients. But, perhaps the most imperative to our success is the ability to connect with our customers and receive their feedback directly. From the feedback we received, we can understand our customer’s demands better and make further improvements. As a result, our customers’ base has been growing exponentially and resulted in a robust brand image of our company.

Competition

The beauty and healthcare industry isare highly competitive, we might be in disadvantage competing with competitor who greater reserve or access to capital than we do to carry out operationsproduction output and marketing efforts. We hope to maintain our competitive advantage by utilizing the experience, knowledge, and expertise of our current staff as well as offering exemplary our customer service.

Customers

For the year ended December 31, 2020,2021, the Company has generated $1,347,718$1,958,655 revenue from clients under the ordinary course of business of the Company. The revenue mainly represented OEMOEM/ODM sales of Nutraceutical / Skincare and Medical Consumable Supplies to clients.

Employees

As of December 31, 2020,2021, the Company has six (6)nine (9) full time employees including Mr. Leong Ming Chia who is our Chief Executive Officer, director, secretary and treasurer that works full time.

Currently, both of our directorsOur CEO all have the flexibility to work on our business up to 60 hours per week, but are prepared to devote more time if necessary.

We do not presently have pension, health, annuity, insurance, stock options, profit sharing, or similar benefit plans; however, we may adopt plans in the future. There are presently no personal benefits available to our Officers, Directors or employees.

Government Regulation

We are subject to the laws and regulations of the jurisdictions in which we operate, which may include business licensing requirements, income taxes and payroll taxes. In general, the development and operation of our business is not subject to special regulatory and supervisory requirements.

ITEM 1A. RISK FACTORS

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

ITEM 1B. UNRESOLVED STAFF COMMENTS

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

ITEM 2. PROPERTIES

Our principal executive office is located at Unit 18-11, 18-12 & 18-01, Tower A, Vertical Business Suite, Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200, Kuala Lumpur, Malaysia. This location has been rented by DSwiss Sdn Bhd for a 24-month period from January 1, 2022 to December 31, 2023, for an initial deposit of MYR 67,200 and additional monthly payments in the amount of MYR 16,800 over the course of the lease. The office lease ended on December 31, 2023.

In July 2018, the Company obtained a loan in the principal amount of MYR250,000 (approximately $60,479) from Public Bank Berhad, a financial institution in Malaysia, to finance the acquisition of a motor vehicle. The loan bears interest at the base lending rate less 2.38% per annum, is payable in 83 monthly instalments of MYR3,473 (approximately $840) each and a final monthly instalment of MYR3,391 (approximately $820) and matures in June 2025.

As of December 31, 2020,2021, the Company has an outstanding loan to be settle for aforementioned acquisition of motor vehicle of MYR170,138MYR145,784 (approximately $42,194)$34,935), of which MYR39,823MYR 41,676 (approximately $9,876)$9,987) to be settled in 12 instalments in year 20212022 and MYR130,315MYR104,108 (approximately $32,318)$24,948) to be settled in 4230 instalments after year 2021.2022.

In December 2021, the Company had obtained another loan financing in the principal amount of MYR180,000 (approximately $43,134) from Public Bank Berhad, a financial institution in Malaysia, to finance the acquisition of a motor vehicle. The loan bears interest at the base lending rate less 2.04% per annum, is payable in 60 monthly instalments of MYR3,306 (approximately $792) each and matures in December 2026.

As of December 31, 2021, the Company has an outstanding loan to be settle for aforementioned acquisition of motor vehicle of MYR195,054 (approximately $46,741), of which MYR39,672 (approximately $9,507) to be settled in 12 instalments in year 2022 and MYR155,382 (approximately $37,235) to be settled in 47 instalments after year 2022.

Loan acquired for the acquisition of motor vehicle mentioned above are denominated in MYR, of which subjected to the fluctuation in reporting currency.

ITEM 3. LEGAL PROCEEDINGS

From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. Litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. There are currently no pending legal proceedings or claims that we believe will have a material adverse effect on our business, financial condition or operating results. None of our directors, officers or affiliates is involved in a proceeding adverse to our business or has a material interest adverse to our business.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Our common stock is currently quoted on the OTC Pink under the trading symbol “DQWS.”

Trading in stocks quoted on the OTC Pink is often thin and is characterized by wide fluctuations in trading prices due to many factors that may have little to do with a company’s operations or business prospects. We cannot assure you that there will be a market for our common stock in the future.

For the periods indicated, the following table sets forth the high and low bid prices per share of common stock based on inter-dealer prices, without retail mark-up, mark-down or commission and may not represent actual transactions.

Holders

As of December 31, 2020,2021, we had 206,904,600206,904,585 shares of our Common Stock par value, $.0001 issued and outstanding. There were 411419 beneficial owners of our Common Stock.

Transfer Agent and Registrar

The transfer agent for our capital stock is VStock Transfer, LLC, with an address at 18, Lafayette Place, Woodmere, New York 11598 and telephone number is +1 (212)828-843.

Penny Stock Regulations

The Securities and Exchange Commission has adopted regulations which generally define “penny stock” to be an equity security that has a market price of less than $5.00 per share. Our Common Stock, when and if a trading market develops, may fall within the definition of penny stock and be subject to rules that impose additional sales practice requirements on broker-dealers who sell such securities to persons other than established customers and accredited investors (generally those with assets in excess of $1,000,000, or annual incomes exceeding $200,000 individually, or $300,000, together with their spouse).

For transactions covered by these rules, the broker-dealer must make a special suitability determination for the purchase of such securities and have received the purchaser’s prior written consent to the transaction. Additionally, for any transaction, other than exempt transactions, involving a penny stock, the rules require the delivery, prior to the transaction, of a risk disclosure document mandated by the Securities and Exchange Commission relating to the penny stock market. The broker-dealer also must disclose the commissions payable to both the broker-dealer and the registered representative, current quotations for the securities and, if the broker-dealer is the sole market-maker, the broker-dealer must disclose this fact and the broker-dealer’s presumed control over the market. Finally, monthly statements must be sent disclosing recent price information for the penny stock held in the account and information on the limited market in penny stocks. Consequently, the “penny stock” rules may restrict the ability of broker-dealers to sell our Common Stock and may affect the ability of investors to sell their Common Stock in the secondary market.

In addition to the “penny stock” rules promulgated by the Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) has adopted rules that require that in recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing that the investment is suitable for that customer. Prior to recommending speculative low pricedlow-priced securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customer’s financial status, tax status, investment objectives and other information. Under interpretations of these rules, FINRA believes that there is a high probability that speculative low-priced securities will not be suitable for at least some customers. The FINRA requirements make it more difficult for broker-dealers to recommend that their customers buy our common stock, which may limit the investors’ ability to buy and sell our stock.

Dividend Policy

Any future determination as to the declaration and payment of dividends on shares of our Common Stock will be made at the discretion of our board of directors out of funds legally available for such purpose. We are under no contractual obligations or restrictions to declare or pay dividends on our shares of Common Stock. In addition, we currently have no plans to pay such dividends. Our board of directors currently intends to retain all earnings for use in the business for the foreseeable future.

Equity Compensation Plan Information

Currently, there is no equity compensation plan in place.

Unregistered Sales of Equity Securities

Currently, there is no unregistered sales of equity securities.

Purchases of Equity Securities by the Registrant and Affiliated Purchasers

We have not repurchased any shares of our common stock during the fiscal year ended December 31, 2020.2021.

ITEM 6. SELECTED FINANCIAL DATA

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion of our financial condition and results of operations should be read in conjunction with our audited consolidated financial statements and the notes to those financial statements appearing elsewhere in this Report.

Certain statements in this Report constitute forward-looking statements. These forward-looking statements include statements, which involve risks and uncertainties, regarding, among other things, (a) our projected sales, profitability, and cash flows, (b) our growth strategy, (c) anticipated trends in our industry, (d) our future financing plans, and (e) our anticipated needs for, and use of, working capital. They are generally identifiable by use of the words “may,” “will,” “should,” “anticipate,” “estimate,” “plan,” “potential,” “project,” “continuing,” “ongoing,” “expects,” “management believes,” “we believe,” “we intend,” or the negative of these words or other variations on these words or comparable terminology. In light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained in this filing will in fact occur. You should not place undue reliance on these forward-looking statements.

The forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events.

Overview

DSwiss, Inc., a Nevada corporation (“the Company”) was incorporated under the laws of the State of Nevada on May 28, 2015. DSwiss Holding Limited owns 100% of DSwiss (HK) Limited, a Hong Kong Company, which owns 100% of DSwiss Sdn Bhd, the operating Malaysia Company of which is described below. In 2016, DSwiss (HK) Limited invested in DSwiss Biotech Sdn Bhd, incorporated in Malaysia, and owned 40% equity interest. We have incorporated a new company namely DSwiss International Trading (Shenzhen) Limited in China, with 100% equity interest owned by DSwiss (HK) Limited. On November 9, 2020, DSwiss International Trading (Shenzhen) Limited was officially deregistered.

Our Company is a beauty supply company formed with the goal of supplying high quality beauty products directly to our clients. Our beauty supplies include, but are not limited to, beverages to assist in burning and reducing fat, anti-aging creams, and products designed to improve the overall health and physical appearance of our clients. Currently we supply our products in Malaysia, Singapore, Thailand, Indonesia, Hong Kong and China. However, we have intentions to expand to Myanmar, Macau, Vietnam and Cambodia, and subsequent to that we will make efforts to expand throughout the world a premier biotech-nutraceutical company, supplying high-quality health and beauty products, including beverages to assist in weight management, anti-aging creams, and products designed to improve the overall health system in our body.

At this time, we operate exclusively online through our website: http://www.dswissbeauty.com/

Our Company continuously strives to improve the already high standard of our goods and services through ongoing research and market development. We are going to penetrate into South East Asia markets through the recruitment of distributors and via the social media like Facebook and Instagram. We foresee to spend a substantial amount in marketing and advertising in the coming year. At DSwiss we are determined to bring new products to markets that we have not yet explored.

Products which meet the definition of a functional food and cosmetics related products need to be registered or notified with the Drug Control Authority (DCA), Ministry of Health Malaysia. Manufacturing, marketing, importation and the sale of unregistered products is a violation of the Drug Control Regulations and Cosmetics Act 1984 of Malaysia and enforcement action can be taken.

At DSwiss, research and development is an ongoing effort whose purpose is to ensure our products on the forefront of quality and effectiveness. Equipped with state of the artstate-of-the-art machinery, our innovative research and development team are constantly exploring on new development and product lines that will enable us to provide the highest quality standard and remain competitive in the industry.

DSwiss’s products are certified and approved by the Ministry of Health (“MOH”) Malaysia. Due to the stringent requirements from MOH Malaysia, we strive to upkeep the highest possible standard in our products to provide assurance and as a prove of our continuing commitment to providing quality products.

We always strive to offer products as high quality as possible, and hope that this assurance from an esteemed regulatory body will also serve to prove our continuing commitment to providing quality goods.

DSwiss have own brand Quantum Resonant Magnetic Analyzer which is DSwiss Quantum Resonant Magnetic Analyzer. DSwiss Quantum Resonant Magnetic Analyzer is a Hi-tech innovation project, which is related to medical, bio-informatics, electronic engineering, etc. It is based on quantum medical, and scientifically analyzes the human cell’s weak magnetic field collected by advanced electronic device. The analyzer can work out the customer’s health situation and main problem. According to the checking result, the analyzer can figure out the reasonable treatment recommendation. The quantum resonant magnetic analyzer is the individualized guide of comprehensive healthy consulting and updated healthy sciences, and its characteristics and advantages are comprehensive, non-invasive, practical, simple, quick, economical and easy to popularize. We can see DSwiss Quantum Resonant Magnetic Analyzer can help our customers to more concern about their health and skin condition.

Our expected growth is planned to occur primarily through the implementation of our social media marketing strategy. DSwiss already has a strong relationship with social media (eg. Facebook, Instagram and Wechat). The global presence social media has helped provide to us has been an invaluable resource, and as we continue to expand our business operations and spread our brand awareness, we intend to primarily utilize social media to reach our customers. The benefits of social media are countless, but perhaps the most imperative to our future success is our ability to connect with customers directly, to receive their feedback almost instantaneously. On that note, the feedback we have received from our clients has been overwhelmingly positive, which has helped us to create a robust brand image.

While DSwiss has been focused almost exclusively upon pursuing operations within Asia, we do have plans to expand outward and become a household name across the world. Our strategy to do so going forward is by forming partnerships with local companies in various countries that may be willing to stock our products or promote them to their own customers. We believe that by forging strategic relationships and partnerships we can expand our operations across the globe at a greater pace and with greater certainty than we would if we tried to expand on our own.

Results of Operations

Business Performance

The COVID-19 pandemic has had, and continues to have, a significant impact around the world, prompting governments and businesses to take unprecedented measures, such as restrictions on travel and business operations, temporary closures of businesses, and quarantine and shelter-in-place orders. The COVID-19 pandemic has at times significantly curtailed global economic activity and caused significant volatility and disruption in global financial markets. The COVID-19 pandemic and the measures taken by many countries in response have affected and could in the future materially impact the Company’s business, results of operations and financial condition, as well as the price of the Company’s stock.

Revenues

The extent of the continuing impact of the COVID-19 pandemic on the Company’s operational and financial performance is uncertain and will depend on many factors outside the Company’s control, including the timing, extent, trajectory and duration of the pandemic, the emergence of new variants, the development, availability, distribution and effectiveness of vaccines and treatments, the imposition of protective public safety measures, and the impact of the pandemic on the global economy and demand for consumer products.

Despite COVID-19 pandemic posted challenging restrictions on travel and business operations, the Company has responded positively to the crisis, with selling medical consumables products such as Surgical Gowns, 3-ply Face Masks, N95 Masks, Surgical Gloves, Protective Goggles, Disposable Bedsheet and Stretcher Cover for the needs of for frontline response workers and other customers.

Consolidated revenues for the year ended December 31, 2020 and 2019

The Company generated revenue of $1,347,718 and $273,659 for the year ended December 31, 2020 and 2019 respectively. Revenue has2021 increased by $1,074,059 which is a 392.48% increase comparatively.45.33% or $610,937 as compared to 2020. The revenue mainly represented the suppliesOEM/ODM sales of beauty productsNutraceutical / Skincare and Medical Consumable Supplies to the customers. We contribute our increase in revenue towards the success in local and oversea marketing effort.

On an overall basis, demand for the Company’s products and services increased in 2021 as compared to 2020, and together with the Company’s continued investments in sales growth initiatives. As the conditions related to the pandemic improved in many geographies in 2021 compared to 2020, the Company generally experienced increased demand in the end-markets it serves. Improving pandemic conditions continued to generate strong demand for biotech-nutraceutical and health-care products in the Company’s health and beauty product segment. Geographically, the year-over-year sales growth during 2021 were driven by Malaysia segment.

Revenues for the year ended December 31, 2021 and 2020

The Company generated revenue of $1,958,655 and $1,347,718 for the year ended December 31, 2021, and 2020 respectively. Revenue has increased by $610,937 which is a 45.33% increase comparatively. The revenue mainly represented OEM/ODM sales of Nutraceutical / Skincare and Medical Consumable Supplies to the customers  . We contribute our increase in revenue towards the success in local and oversea marketing effort.

Cost of Revenue and Gross Margin

Cost of revenue for the Company year ended December 31, 20202021, amounted to $980,243$1,459,531 as compared to $181,925$980,243 for the year ended December 31, 2019.2020. Increase of $798,318$479,288 in cost of revenue was contributed by increasing packing material cost and product purchase price. As a result, the gross profit has increased from $91,734 for the year ended December 31, 2019 to $367,475 for the year ended December 31, 2020 to $499,124 for the year ended December 31, 2021, while the gross margin of the Company decreased from 33.52% in year ended December 31, 2019 to 27.27% in year ended December 31, 2020 to 25.48% in year ended December 31, 2021, which is a net increase of decrease of 6.25%1.78%.

Operating Expenses

Selling, general and administrative expenses for the year ended December 31, 20202021 and 20192020 amounted to $287,995$308,686 and $242,157$287,995 respectively, the increase of $47,860$20,691 which is 19.76%7.18% higher comparatively which was contributed by the increase of group operations.

Operating expenses for the year ended December 31, 20202021 and 20192020 amounted to $1,216$1,464 and $94,769$1,216 respectively, the decreaseincrease of $93,553$248 which is 98.72% lower20.39% higher comparatively, such decreaseincrease was associated with the Company stringent cost control.higher bank charges and amortization of intellectual property.

Other operating expenses for the year ended December 31, 2020 and 2019 amounted to $18,651 and $56,315 respectively, the decrease of 37,664 which is 66.88% lower comparatively, such expense was depreciation of fixed assets.

Other Income

The Company recorded an amount of $104,976$8,390 and $63,592$104,976 as other income for the year ended December 31, 20202021 and 20192020 respectively. This income is derived from the interest income earned and exchange gain.

Net Profit/Loss and Net Profit/Loss Margin

The net profit for the year was 30,045$150,278 for the year ended December 31, 2021. The net profit for the year was $30,045 for the year ended December 31, 2020. The net loss for the year was 295,463 for the year ended December 31, 2019. The increase in net profit of $325,508$120,233 which is a 110.17%400.18% higher comparatively due to higher contribution on revenue and stringent cost control. Taking into the profit for the year ended December 31, 2020,2021, the accumulated loss for the Company has decreased from $1,490,845$1,483,170 to $1,483,170.$1,309,711.

Liquidity and Capital Resources

As of December 31, 2020,2021, we had working capital deficit of $142,357$10,674 consisting of cash and cash equivalent of $158,004$234,546 as compared to working capital deficit of $182,311$142,357 and our cash and cash equivalent of $48,353$158,004 as of December 31, 2019.2020.

Net cash generated from operating activities for the year ended December 31, 20202021 was $58,913$251,691 as compared to net cash used ingenerated from operating activities of $179,671$58,913 for the year ended December 31, 2019.2020. The cash generated from operating activities are mainly derived from prepayments, deposits, and other receivables.higher operating profit.

Net cash used in investing activity for the year ended December 31, 20202021 was $2,045$62,075 as compared to net cash used in investing activity for the year ended, 20192020 were $2,082.$2,045. The cash used in investing activities are mainly for purchase of plant and equipment.

Net cash provided byused in financing activities for the year ended December 31, 20202021 was $105,143$78,951 as compared to net cash provided by financing activities $78,475$105,143 for the year ended December 31, 2019.2020. The net cash used in financing activities in year 2021 was the repayment to a director of Company, while the net cash provided by financing activities werein year 2020 was the advances from a director.director of Company.

The revenues generated from our current business operations alone may not bewas sufficient to fund our operations or planned growth. WeHowever, we will likely requireconsider acquiring additional capitalfunding to continue to operate our business, and to further expand our business. Sources of additional capital through various financing transactions or arrangements with third parties may include equity or debt financing, bank loans or revolving credit facilities. We may not be successful in locating suitable financing transactions in the time period required or at all, and we may not obtain the capital we require by other means. Our inability to raise additional funds when required may have a negative impact on our operations, business development and financial results.

Critical Accounting Policies and Estimates

Leases

The company determines if an arrangement is a lease at inception. Operating leases are included in operating in operating lease right-of-use (“ROU”) as assets, operating lease non-current liabilities, and operating lease current liabilities in our consolidated balance sheet. Finance leases are property and equipment, other current liabilities, and other non-current liabilities in the consolidated balance sheet.

ROU assets represent the right to use an asset for the lease term and lease liability represent the obligation to make lease payment arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over lease term. As most of the leases doesn’t provide an implicit rate. The company generally use the incremental borrowing rate on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating ROU asset also includes any lease payments made and exclude lease incentives. Lease expense for lease payment is recognized on a straight -line basis over lease term. The Company adopted Public Bank Berhad’s base rate lending rate as a reference for discount rate.

Leases that transfer substantially all the rewards and risks of ownership to the lessee, other than legal title, are accounted for as finance leases. Substantially all of the risks or benefits of ownership are deemed to have been transferred if any one of the four criteria is met: (i) transfer of ownership to the lessee at the end of the lease term, (ii) the lease containing a bargain purchase option, (iii) the lease term exceeding 75% of the estimated economic life of the leased asset, (iv) the present value of the minimum lease payments exceeding 90% of the fair value. At the inception of a finance lease, the Company as the lessee records an asset and an obligation at an amount equal to the present value of the minimum lease payments. The leased asset is amortized over the shorter of the lease term or its estimated useful life if title does not transfer to the Company, while the leased asset is depreciated in accordance with the Company’s depreciation policy if the title is to eventually transfer to the Company. The periodic rent payments made during the lease term are allocated between a reduction in the obligation and interest element using the effective interest method in accordance with the provisions of ASC Topic 835-30, “Imputation of Interest”.

Use of estimates

In preparing these consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets, and revenues and expenses during the periods reported. Actual results may differ from these estimates.

Cash and cash equivalents

Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments.

Revenue recognition

In accordance with the Accounting Standard Codification Topic 605 “Revenue Recognition” (“ASC 605”), the Company recognizes revenue when the following four criteria are met: (1) delivery has occurred or services rendered; (2) persuasive evidence of an arrangement exists; (3) there are no continuing obligations to the customer; and (4) the collection of related accounts receivable is probable.

Revenue is measured at the fair value of the consideration received or receivable, net of discounts and taxes applicable to the revenue.

Revenue from supplies of beauty products is recognized when title and risk of loss are transferred and there are no continuing obligations to the customer. Title and the risks and rewards of ownership transfer to and accepted by the customer when the products are collected by the customer at the Company’s office. Revenue is recorded net of sales discounts, returns, allowances, and other adjustments that are based upon management’s best estimates and historical experience and are provided for in the same period as the related revenues are recorded. Based on limited operating history, management estimates that there was no sale return for the period reported.

Cost of revenues

Cost of revenues includes the purchase cost of retail goods for re-sale to customers and the packing materials (such as boxes). It excludes purchasing and receiving costs, inspection costs, warehousing costs, internal transfer costs and other costs of distribution network in cost of revenues.

Shipping and handling fees

Shipping and handling fees, if billed to customers, are included in revenue. Shipping and handling fees associated with inbound and outbound freight are expensed as incurred and included in selling and distribution expenses.

Shipping and handling fees are expensed as incurred for the year ended December 31, 20202021 were $3,956$2,876 while for the year ended December 31, 20192020 were $2,214.$3,956.

Selling, general and administrative expenses

Selling, general and administrative expenses are primarily comprised of travelling and accommodation fees such as petrol, toll and parking and shipping and handling fees.

Cash and cash equivalents

Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments.

Inventories

Inventories consisting of products available for sell, are stated at the lower of cost or market value. Cost of inventory is determined using the first-in, first-out (FIFO) method. Inventory reserve is recorded to write down the cost of inventory to the estimated market value due to slow-moving merchandise and damaged goods, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. The Company takes ownership, risks and rewards of the products purchased. Write downs are recorded in cost of revenues in the Condensed Consolidated Statements of Operations and Comprehensive Income.

Property and equipment

Property and equipment are stated at cost less accumulated depreciation and impairment. Depreciation of plant, equipment and software are calculated on the straight-line method over their estimated useful lives or lease terms generally as follows:

Intangible assets

Intangible assets are stated at cost less accumulated amortization. Intangible assets represented the registration costs of trademarks in Malaysia and Hong Kong which are amortized on a straight-line basis over a useful life of ten years.

The Company follows ASC Topic 350 in accounting for intangible assets, which requires impairment losses to be recorded when indicators of impairment are present and the undiscounted cash flows estimated to be generated by the assets are less than the assets’ carrying amounts. There were no impairment losses recorded on intangible assets for the year ended December 31, 2020.2021.

Income taxes

Income taxes are determined in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC Topic 740”). Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts.

The Company conducts major businesses in Malaysia, Thailand, Hong Kong and China.Malaysia. The Company is subject to tax in these jurisdictions. As a result of its business activities, the Company will file tax returns that are subject to examination by the foreign tax authority.

The Company did not have any unrecognized tax positions or benefits and there was no effect on the financial conditions or results of operations for the year ended December 31, 20202021 and year ended December 31, 2019.2020. The Company and its subsidiary are subject to local and various foreign tax jurisdictions. The Company’s tax returns remain open subject to examination by major tax jurisdictions.

Net profit per share

The Company calculates net profit per share in accordance with ASC Topic 260 “Earnings per share”. Basic profit per share is computed by dividing the net profit by the weighted average number of common shares outstanding during the period. Diluted profit per share is computed similar to basic profit per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive.

Foreign currencies translation

Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the Condensed Consolidated Statements of Operations and Comprehensive Income.

The reporting currency of the Company is United States Dollars (“US$”) and the accompanying financial statements have been expressed in US$. In addition, the Company’s subsidiaries and VIEs in Malaysia, Hong Kong China and ThailandChina maintains their books and record in their local currency, Ringgits Malaysia (“MYR”), Hong Kong Dollars (“HK$”) and Chinese Renminbi (“RMB”) respectively, which is functional currency as being the primary currency of the economic environment in which the entity operates.

In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “Translation of Financial Statement”, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of foreign subsidiary are recorded as a separate component of accumulated other comprehensive income within the statements of stockholders’ equity.

Translation of amounts from MYR into US$1, HK$ into US$1 and RMB into US$1 has been made at the following exchange rates for the respective periods: