Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 15, 2016 | |
Document and Entity Information: | ||
Entity Registrant Name | INNOCOM TECHNOLOGY HOLDINGS, INC. | |
Entity Trading Symbol | incm | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Amendment Flag | false | |
Entity Central Index Key | 1,076,541 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 220,631,841 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | Yes | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 1,820 | $ 2,206 |
TOTAL ASSETS | 1,820 | 2,206 |
Current liabilities: | ||
Accounts payable | 82,463 | 84,727 |
Amount due to a related party | 326,907 | 283,282 |
Other payables and accrued liabilities | 277,753 | 212,653 |
Total current liabilities | 687,123 | 580,662 |
Commitments and contingencies | ||
Stockholders' deficit: | ||
Common stock, $0.001 par value; 490,000,000 shares authorized; 220,631,841 and 220,631,841 shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively | 220,632 | 220,632 |
Additional paid-in capital | 12,200,509 | 12,200,509 |
Accumulated other comprehensive income | 286,883 | 286,884 |
Accumulated deficit | (13,393,327) | (13,286,481) |
Total stockholders' deficit | (685,303) | (578,456) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 1,820 | $ 2,206 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS PARENTHETICALS - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Parentheticals | ||
Common Stock, par value | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 490,000,000 | 490,000,000 |
Common Stock, shares issued | 220,631,841 | 220,631,841 |
Common Stock, shares outstanding | 220,631,841 | 220,631,841 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues {1} | ||||
Revenues, net: | $ 0 | $ 0 | $ 0 | $ 0 |
Cost of revenue | 0 | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 | 0 |
Operating expenses: | ||||
General and administrative | (29,440) | (31,311) | (106,846) | (109,046) |
Total operating expenses | (29,440) | (31,311) | (106,846) | (109,046) |
LOSS BEFORE INCOME TAXES | (29,440) | (31,311) | (106,846) | (109,046) |
Income tax expense | 0 | 0 | 0 | 0 |
NET LOSS | (29,440) | (31,311) | (106,846) | (109,046) |
Other comprehensive income (loss): | ||||
Foreign currency translation (loss) gain | (2) | 95,612 | (1) | 83,053 |
COMPREHENSIVE (LOSS) INCOME | $ (29,442) | $ 64,301 | $ (106,847) | $ (25,993) |
Net loss per share - Basic and diluted | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average common shares outstanding - Basic and diluted | 220,631,841 | 220,631,841 | 220,631,841 | 220,631,841 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (106,846) | $ (109,046) |
Change in operating assets and liabilities: | ||
Prepayment and other receivables | 0 | (1) |
Other payables and accrued liabilities | 62,836 | 35,998 |
Net cash used in operating activities | (44,010) | (73,049) |
Cash flows from financing activities: | ||
Advances from (repayment to) a related party | (43,625) | (8,364) |
Net cash provided by (used in) financing activities | 43,625 | (8,364) |
Effect of exchange rate changes on cash and cash equivalents | (1) | 83,053 |
Net change in cash and cash equivalents | (386) | 1,640 |
CASH AND CASH EQUIVALENT, BEGINNING OF PERIOD | 2,206 | 2,492 |
CASH AND CASH EQUIVALENT, END OF PERIOD | 1,820 | 4,132 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for income taxes | 0 | 0 |
Cash paid for interest | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) - 9 months ended Sep. 30, 2016 - USD ($) | Common stock No. of shares | Common stock Amount | Additional paid-in Capital | Accumulated other comprehensive income | Accumulated deficit | Total stockholders' deficit |
Balance at Jan. 01, 2016 | 220,631,841 | 220,632 | 12,200,509 | 286,884 | (13,286,481) | (578,456) |
Net loss for the period | $ (106,846) | $ (106,846) | ||||
Foreign currency translation adjustment | $ (1) | $ (1) | ||||
Balance. at Sep. 30, 2016 | 220,631,841 | 220,632 | 12,200,509 | 286,883 | (13,393,327) | (685,303) |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2016 | |
BASIS OF PRESENTATION: | |
BASIS OF PRESENTATION | NOTE - 1 BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared by management in accordance with both accounting principles generally accepted in the United States (GAAP), and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and note disclosures normally included in audited financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. In the opinion of management, the consolidated balance sheet as of December 31, 2015 which has been derived from audited financial statements and these unaudited condensed consolidated financial statements reflect all normal and recurring adjustments considered necessary to state fairly the results for the periods presented. The results for the period ended September 30 , 2016 are not necessarily indicative of the results to be expected for the entire fiscal year ending December 31, 2016 or for any future period. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the Managements Discussion and the audited financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2015. |
ORGANIZATION AND BUSINESS BACKG
ORGANIZATION AND BUSINESS BACKGROUND | 9 Months Ended |
Sep. 30, 2016 | |
ORGANIZATION AND BUSINESS BACKGROUND | |
ORGANIZATION AND BUSINESS BACKGROUND | NOTE - 2 ORGANIZATION AND BUSINESS BACKGROUND Innocom Technology Holdings, Inc. (the Company or INCM) was incorporated in the State of Nevada on June 26, 1998. On June 20, 2006, the Company changed its name from Dolphin Productions, Inc. to Innocom Technology Holdings, Inc. We are a shell company with no or nominal operations. We are actively considering various acquisition targets and other business opportunities. We hope to acquire one or more operating businesses or consummate a business opportunity within the next twelve months. INCM and its subsidiaries are hereinafter referred to as (the Company). |
GOING CONCERN UNCERTAINTIES
GOING CONCERN UNCERTAINTIES | 9 Months Ended |
Sep. 30, 2016 | |
GOING CONCERN UNCERTAINTIES | |
GOING CONCERN UNCERTAINTIES | NOTE - 3 GOING CONCERN UNCERTAINTIES The accompanying condensed consolidated financial statements have been prepared using the going concern basis of accounting, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. For t he period e nded September 30 , 2016 , the Company has experienced a continuous loss of $106,846 with an accumulated deficit of $ 13,3 93,327 as of that date. The continuation of the Company as a going concern through September 30 , 2016 is dependent upon the continued financial support from its stockholders. Management believes this funding will continue, and is also actively seeking new investors. Management believes the existing stockholders will provide the additional cash to meet the Companys obligations as they become due, and will allow its planned principal business to commence and assembly the production lines of mobile handsets and components in the PRC. These factors raise substantial doubt about the Companys ability to continue as a going concern. These condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets and liabilities that may result in the Company not being able to continue as a going concern. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2016 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE - 4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying condensed consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying condensed consolidated financial statements and notes. · Shell company The Company has ceased all of its business and is currently considered as a shell company. · Use of estimates In preparing these condensed 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. · Basis of consolidation The condensed consolidated financial statements include the financial statements of INCM and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation. · 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. · Comprehensive income or loss ASC Topic 220, Comprehensive Income · Income taxes The Company adopts ASC Topic 740 Income Taxes The Company did not have any unrecognized tax positions or benefits and there was no effect on the financial condition or results of operations f or t he t hree and nine m onths e nded September 30, 2016. The Company and its subsidiaries are subject to local and various foreign tax jurisdictions. The Companys tax returns remain open subject to examination by major tax jurisdictions. · Net loss per share The Company calculates net loss per share in accordance with ASC Topic 260 , Earnings per Share . Basic loss per share is computed by dividing the net loss by the weighted-average number of common shares outstanding during the period. Diluted loss per share is computed similar to basic loss 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 statement of operations. The reporting currency of the Company is United States Dollars ("US$"). The Companys subsidiaries operating in Hong Kong and the PRC maintained their books and records in their local currency, Hong Kong Dollars ("HK$") and Renminbi Yuan ("RMB"), which are functional currencies as being the primary currency of the economic environment in which these entities operate. In general, assets and liabilities are translated into US$, in accordance with ASC T opic 830-30 , Translation of Financial Statement Translation of amounts from RMB and HK$ into US$1 has been made at the following exchange rates for the respective period: September 30 , 2016 September 30 , 2015 Period-end RMB:US$1 exchange rate 6.6694 6.3468 Average period RMB:US$1 exchange rate 6.5792 6.1614 Period-end HK$:US$1 exchange rate 7.7548 7.7499 Average period HK$:US$1 exchange rate 7.7633 7.7527 · Related parties Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence. · Fair value of financial instruments The carrying value of the Companys financial instruments: cash and cash equivalents, prepayments and other receivables, accounts payable, amount due to a related party, other payables and accrued liabilities approximate at their fair values because of the short-term nature of these financial instruments. The Company also follows the guidance of the ASC Topic 820-10, Fair Value Measurements and Disclosures · Level 1 : Observable inputs such as quoted prices in active markets; · Level 2 : Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and · Level 3 : Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions Fair value estimates are made at a specific point in time based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. · Recent accounting pronouncements The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and do es not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations. |
AMOUNT DUE TO A RELATED PARTY
AMOUNT DUE TO A RELATED PARTY | 9 Months Ended |
Sep. 30, 2016 | |
AMOUNT DUE TO A RELATED PARTY | |
AMOUNT DUE TO A RELATED PARTY | NOTE - 5 AMOUNT DUE TO A RELATED PARTY As of September 30 , 2016, the balance represented temporary advances made by a director and a major shareholder of the Company, Mr. William Hui, which was unsecured, interest-free with no fixed repayment term. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2016 | |
INCOME TAXES | |
INCOME TAXES | NOTE - 6 INCOME TAXES The Company operates in various countries: United States, British Virgin Island, Hong Kong and the PRC that are subject to taxes in the jurisdictions in which they operate, as follows: United States of America The Company is registered in the State of Nevada and is subject to United States current tax law. British Virgin Island Under the current BVI law, the Company is not subject to tax on income. Hong Kong For t he three and nine m onths e nded September 30 , 2016, no provision for Hong Kong Profits Tax is made for as the Companys income neither arises in, nor is derived from Hong Kong under its applicable tax law. The PRC T he Company s subsidiaries in the PRC are subject to the unified income rate of 25% on the taxable income. For t he three and nine m onths e nded September 30 , 2016, the Company generated no operating result and accordingly, no provision for income tax has been recorded. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2016 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE - 7 COMMITMENTS AND CONTINGENCIES For the three and nine m onths e nded September 30 , 2016 and 2015 , the Company utilized office space of a director and stockholder at no charge. Such costs are immaterial to the financial statements and accordingly are not reflected herein. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2016 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE - 8 SUBSEQUENT EVENTS The Company evaluated subsequent events through the date the financial statements were issued and filed with this Form 10-Q. There were no subsequent events that required recognition or disclosure. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies: | |
Shell Company | · Shell company The Company has ceased all of its business and is currently considered as a shell company |
Use of estimates | · Use of estimates In preparing these condensed 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 |
Basis of consolidation | · Basis of consolidation The condensed consolidated financial statements include the financial statements of INCM and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation |
Cash and cash equivalents | · 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. |
Comprehensive income or loss | · Comprehensive income or loss ASC Topic 220, Comprehensive Income |
Income taxes, Policy | · Income taxes The Company adopts ASC Topic 740 Income Taxes The Company did not have any unrecognized tax positions or benefits and there was no effect on the financial condition or results of operations f or t he t hree and nine m onths e nded September 30, 2016. The Company and its subsidiaries are subject to local and various foreign tax jurisdictions. The Companys tax returns remain open subject to examination by major tax jurisdictions. |
Net loss per share | · Net loss per share The Company calculates net loss per share in accordance with ASC Topic 260 , Earnings per Share . Basic loss per share is computed by dividing the net loss by the weighted-average number of common shares outstanding during the period. Diluted loss per share is computed similar to basic loss 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 | · 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 statement of operations. The reporting currency of the Company is United States Dollars ("US$"). The Companys subsidiaries operating in Hong Kong and the PRC maintained their books and records in their local currency, Hong Kong Dollars ("HK$") and Renminbi Yuan ("RMB"), which are functional currencies as being the primary currency of the economic environment in which these entities operate. In general, assets and liabilities are translated into US$, in accordance with ASC T opic 830-30 , Translation of Financial Statement Translation of amounts from RMB and HK$ into US$1 has been made at the following exchange rates for the respective period: September 30 , 2016 September 30 , 2015 Period-end RMB:US$1 exchange rate 6.6694 6.3468 Average period RMB:US$1 exchange rate 6.5792 6.1614 Period-end HK$:US$1 exchange rate 7.7548 7.7499 Average period HK$:US$1 exchange rate 7.7633 7.7527 |
Related Parties | · Related parties Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence |
Fair value of financial instruments | · Fair value of financial instruments The carrying value of the Companys financial instruments: cash and cash equivalents, prepayments and other receivables, accounts payable, amount due to a related party, other payables and accrued liabilities approximate at their fair values because of the short-term nature of these financial instruments. The Company also follows the guidance of the ASC Topic 820-10, Fair Value Measurements and Disclosures · Level 1 : Observable inputs such as quoted prices in active markets; · Level 2 : Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and · Level 3 : Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions Fair value estimates are made at a specific point in time based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates |
Recent accounting pronouncements | · Recent accounting pronouncements The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and do es not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations. |
Translation of amounts from rep
Translation of amounts from reporting currencies has been made at the following exchange rates (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Translation of amounts from reporting currencies has been made at the following exchange rates | |
Translation of amounts from reporting currencies has been made at the following exchange rates | Translation of amounts from RMB and HK$ into US$1 has been made at the following exchange rates for the respective period: September 30 , 2016 September 30 , 2015 Period-end RMB:US$1 exchange rate 6.6694 6.3468 Average period RMB:US$1 exchange rate 6.5792 6.1614 Period-end HK$:US$1 exchange rate 7.7548 7.7499 Average period HK$:US$1 exchange rate 7.7633 7.7527 |
Going Concern Uncertainties (De
Going Concern Uncertainties (Details) | 3 Months Ended |
Sep. 30, 2016USD ($) | |
GOING CONCERN UNCERTAINTIES Details | |
Continuous loss | $ 106,846 |
Accumulated deficit | $ 13,393,327 |
Foreign Currencies Translation
Foreign Currencies Translation Exchange Rates (Details) | Sep. 30, 2016 | Sep. 30, 2015 |
Foreign Currencies Translation Exchange Rates: | ||
Period-end RMB:US$1 exchange rate | 6.6694 | 6.3468 |
Average period RMB:US$1 exchange rate | 6.5792 | 6.1614 |
Period-end HK$:US$1 exchange rate | 7.7548 | 7.7499 |
Average period HK$:US$1 exchange rate | 7.7633 | 7.7527 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | Sep. 30, 2016 |
Income Taxes Narrative Details | |
Company's subsidiaries in the PRC are subject to the unified income rate | 25.00% |