| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements
(consolidated financial statements) were prepared in accordance with accounting principles generally accepted in the United States
(GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly,
these interim financial statements do not include all of the information and notes required by GAAP for complete financial statements.
All adjustments (consisting of normal recurring items) necessary to present fairly the Company’s consolidated financial position
have been included. These interim financial statements should be read in conjunction with the consolidated financial statements
and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2017. Operating results for the
interim periods presented herein are not necessarily indicative of the results that may be expected for any other interim period
or for the entire year. Reclassifications have been made to conform historical financial statements with the current period’s
presentation. The parent company does not have operations.
Its main activities were incurring expenses relating to its status as a public company in the United States. Going Concern The accompanying
consolidated financial statements were
prepared on a going concern basis which contemplates the realization of assets and the satisfaction of liabilities in the normal
course of business. For the nine months ended September 30, 2018, the Company realized a net loss from continuing operations of
$336,750. The Company generated no revenue from continuing operations and requires significant funding for its operations with
no assurance as to its ability to obtain the funding on reasonable, if any, terms. The Company has an accumulated deficit of $37,673,132
as of September 30, 2018. There can be no assurance that the Company will become profitable or obtain necessary financing for its
business or that it will be able to continue in business. During the three months ended September 30, 2018, related parties, including
the Company’s chief executive officer, made short-term loans to the in the amount of $4,900,127, most of which was repaid
in the fourth quarter of 2018. These issues raise substantial doubt regarding the Company’s ability to continue as a going
concern. Principles of Consolidation The consolidated financial statements include
the accounts of the Company and its subsidiaries. The consolidated results of operations and consolidated financial condition of
Capital is reflected as net gain from discontinued operations, and the assets and liabilities of the discontinued operations at
December 31, 2017 are reflected as current and non-current assets and liabilities of the Company’s discontinued operations.
All material intercompany accounts, transactions and profits were eliminated in consolidation. Noncontrolling Interest Before May 22, 2018, Capital had
invested RMB 6,193,541($898,852) in Zhejiang Lamapai and owned 64.9% interest in Zhejiang Lamapai. The 35.1% owned by the third
parties is presented as non-controlling interest. The transfer of the equity in Capital. Capital includes Capital’s equity
interest in Zhejiang Lamapai. At September 30, 2018, the Company did not have any non-controlling interest. The Company follows Financial Accounting
Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, “ Consolidation The net income attributed to the
non-controlling interest is separately designated in the accompanying consolidated statements of income and other comprehensive
income (loss). Losses attributable to the non-controlling interest in a subsidiary may exceed the non-controlling interest’s
interests in the subsidiary’s equity. The excess attributable to the non-controlling interest is attributed to those interests.
The non-controlling interest attributed its share of losses even if that attribution resulted in a deficit non-controlling interest
balance. Currency Translation The reporting currency of the Company is the
United States dollar. The accounts of Huantai were maintained, and its financial statements were expressed RMB and the accounts
of DBUB Pte Singapore dollars (SGD), which are the respective functional currency of the subsidiaries. Our financial statements
were translated into United States dollars in accordance with FASB ASC Topic 830-10, ”Foreign Currency Translation,” ”Reporting Comprehensive Income,” The impact of foreign translation from our
accounts in RMB and SGD to United States dollars on the Company’s operating results was not material in the three and nine
months ended September 30, 2018 and 2017. During the translation process, the assets and liabilities of all subsidiaries are translated
into US dollars at period-end exchange rates. The revenues and expenses are translated into United States dollars at average exchange
rates of the periods. Resulting translation adjustments are recorded as a component of accumulated other comprehensive income within
stockholders’ equity.
Nine Months Ended September 30,
2018 2017
RMB/$ exchange rate at period end 0.1456 0.1503
Average RMB/$ exchange rate for the periods 0.1535 0.1469
Three Months Ended September 30,
2018 2017
RMB/$ exchange rate at period end 0.1456 0.1503
Average RMB/$ exchange rate for the periods 0.1470 0.1499
Nine Months Ended September 30,
2018 2017
SGD/$ exchange rate at period end 0.7316 —
Average SGD/$ exchange rate for the periods 0.7460 —
Three Months Ended September 30,
2018 2017
SGD/$ exchange rate at period end 0.7316 —
Average SGD/$ exchange rate for the periods 0.7312 — Transaction gains or losses arising from exchange
rate fluctuation on transactions denominated in a currency other than the functional currency were included in the consolidated
Statements of Operations and Comprehensive Loss. As a result of the translation, the Company recorded a foreign currency gain of
$13,229 in the nine months ended September 30, 2018 and a loss of $143,326 in the 2017 period, and a foreign currency gain of $12,922
and a loss of $71,063 for the three months ended September 30, 2018 and 2017. Use of Estimates The preparation of financial statements in
conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ from those estimates. Risks and Uncertainties The Company is subject to risks from, among
other things, intense competition associated with the industry in general, other risks associated with financing, liquidity requirements,
rapidly changing customer tastes and requirements, limited operating history, foreign currency exchange rates and the volatility
of public markets as well as other risks associated with the restaurant and related industries. Contingencies Certain conditions may exist as of the date
the financial statements are issued, which could result in a loss to the Company but which will only be resolved when one or more
future events occur or fail to occur. The Company’s management assesses such contingent liabilities, and such assessment
inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against
the Company or unasserted claims that may result in such proceedings, the Company’s management evaluates the perceived merits
of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be
sought. If the assessment of a contingency indicates
that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated
liability is accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency
is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability,
together with an estimate of the range of possible loss if determinable and material would be disclosed. Loss contingencies considered to be remote
by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed. Long-Lived Assets The Company periodically evaluates the carrying
value of long-lived assets to be held and used in accordance with FASB ASC 360, “ Property, Plant and Equipment,” Fair Value of Financial Instruments FASB ASC Topic 825, “ Financial
Instruments Revenue Recognition The Company recognizes revenue in accordance
with ASC Topic 606, “Revenue from Contracts with Customers.” Revenue is recognized when control of the promised goods
or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled
to in exchange for those goods or services. Under Topic 606, revenue is recognized when there is a contract which has commercial
substance which is approved by both parties and identifies the rights of the parties and the payment terms. The Company adopted
Topic 606 as of January 1, 2018. Because all of the Company’s prior operations are discontinued and was disposed of on May
22, 2018, the adoption of Topic 606 does not affect the Company’s prior operations. Cost of Sales Cost of sales consists of actual product cost,
which is the purchase price of the product less any discounts. Cost of sales excludes freight charges, purchase and
delivery costs, internal transfer, freight charges and the other costs of the Company’s distribution network, which are identified
in general and administrative expenses. General and Administrative Expenses General and administrative expenses are comprised
principally of payroll and benefits costs for corporate employees, occupancy costs of corporate facilities, lease expenses, management
fees, traveling expenses and other operating and administrative expenses, including freight charges, purchase and delivery costs,
internal transfer freight charges and other distribution costs. Share Based Payment The Company follows FASB ASC 718-10, “Stock
Compensation,” Income Taxes The Company utilizes FASB ASC Topic 740, “Income
Taxes.” Basic and Diluted Earnings (Loss) per Share Earnings (loss) per share are calculated in
accordance with FASB ASC Topic 260, “Earnings per Share,” Statement of Cash Flows In accordance with FASB ASC Topic 230, “ Statement
of Cash Flows,” Concentration of Credit Risk Financial instruments that potentially subject
the Company to concentrations of credit risk are cash, accounts receivable, advances to suppliers and other receivables arising
from its normal business activities. The Company places its cash in what it believes to be credit-worthy financial institutions.
Since the Company has not generated any revenues or commenced operations in its continuing business, the Company cannot evaluate
the risk of a concentration of credit risk. Segment Reporting FASB ASC Topic 280, “Segment Reporting,”
requires use of the “management approach” model for segment reporting. The management approach model is based on the
way a company’s management organizes segments within the company for making operating decisions and assessing performance.
Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in
which management disaggregates a company. Following the Company’s disposal of its existing business, the Company has one
operating segment, the restaurant business, which has not generated any revenues through September 30, 2018. Recent Accounting Pronouncements In June 2018, the FASB issued ASU 2018-07,
“Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting.” The Company has reviewed all other recently
issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may
be expected to cause a material impact on the Company’s financial statements. |
