Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document and Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | CHINESEWORLDNET COM INC |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Central Index Key | 0001145898 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | false |
Trading Symbol | CWNOF |
Title of 12(b) Security | Common Shares |
Security Exchange Name | NONE |
Entity Common Stock, Shares Outstanding | 10,950,000 |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | true |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 226,178 | $ 225,971 |
Prepaid expenses and deposits | 6,746 | 8,236 |
Note receivable [note 3] | 0 | 257,714 |
Total current assets | 232,924 | 491,921 |
Non-current assets | ||
Note receivable [note 3] | 271,147 | 0 |
Total assets | 504,071 | 491,921 |
Current liabilities | ||
Accounts payable and accrued liabilities | 10,935 | 10,935 |
Due to related parties, non-interest bearing [note 5] | 150,282 | 92,562 |
Total current liabilities | 161,217 | 103,497 |
Stockholders' equity [note 4] | ||
Common stock Authorized 100,000,000 common shares with a par value of $0.001 per share Issued and outstanding 10,950,000 common shares | 10,950 | 10,950 |
Additional paid-in capital | 4,183,129 | 4,183,129 |
Deficit | (3,851,225) | (3,805,655) |
Total Stockholders' equity | 342,854 | 388,424 |
Total liabilities and stockholders' equity | $ 504,071 | $ 491,921 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
BALANCE SHEETS (Parenthetical) | ||
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares issued | 10,950,000 | 10,950,000 |
Common stock, shares outstanding | 10,950,000 | 10,950,000 |
STATEMENTS OF STOCKHOLDERS' EQU
STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Deficit) [Member] | Total |
Balance at Dec. 31, 2017 | $ 10,950 | $ 4,183,129 | $ (3,834,946) | $ 359,133 |
Balance (in shares) at Dec. 31, 2017 | 10,950,000 | |||
Net income (loss) for the year | $ 0 | 0 | (5,603) | (5,603) |
Balance at Dec. 31, 2018 | $ 10,950 | 4,183,129 | (3,840,549) | 353,530 |
Balance (in shares) at Dec. 31, 2018 | 10,950,000 | |||
Net income (loss) for the year | $ 0 | 0 | 34,894 | 34,894 |
Balance at Dec. 31, 2019 | $ 10,950 | 4,183,129 | (3,805,655) | 388,424 |
Balance (in shares) at Dec. 31, 2019 | 10,950,000 | |||
Net income (loss) for the year | $ 0 | 0 | (45,570) | (45,570) |
Balance at Dec. 31, 2020 | $ 10,950 | $ 4,183,129 | $ (3,851,225) | $ 342,854 |
Balance (in shares) at Dec. 31, 2020 | 10,950,000 |
STATEMENTS OF OPERATIONS AND CO
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Expenses | |||
Audit and legal | $ 17,928 | $ 17,213 | $ 16,733 |
Directors' remuneration [note 5] | 36,000 | 36,000 | 36,000 |
Office and miscellaneous | 4,693 | 742 | 4,713 |
Operating Expenses, Total | 58,621 | 53,955 | 57,446 |
Other income (loss) | |||
Foreign exchange gain (loss) | 7,038 | 18,781 | (27,812) |
Interest income | 208 | 1,199 | 0 |
Accretion income [note 3] | 63,290 | 68,869 | 79,655 |
Loss on note receivable [note 3] | (57,485) | 0 | |
Other income (loss), Total | 13,051 | 88,849 | 51,843 |
Net income (loss) and comprehensive income (loss) for the year | $ (45,570) | $ 34,894 | $ (5,603) |
Basic and diluted net income (loss) per common share | $ 0 | $ 0 | $ 0 |
Weighted average number of common shares outstanding | |||
- basic and diluted | 10,950,000 | 10,950,000 | 10,950,000 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
OPERATING ACTIVITIES | |||
Net income (loss) for the year | $ (45,570) | $ 34,894 | $ (5,603) |
Adjustment to reconcile net income (loss) to net cash provided (used) by operating activities: | |||
Foreign exchange (gain) or loss | (7,628) | (10,472) | 24,991 |
Loss on note receivable | 57,485 | 0 | 0 |
Imputed interest income | (63,290) | (68,869) | (79,339) |
Changes in non-cash working capital items: | |||
Prepaid expenses and deposits | 1,490 | (22) | (885) |
Accounts payable and accrued liabilities | 0 | 0 | 351 |
Due to related parties, non-interest bearing [note 5] | 57,720 | 53,934 | 0 |
Net cash provided (used) by operating activities | 207 | 9,465 | (60,485) |
INVESTING ACTIVITIES | |||
Proceeds from note receivable | 0 | 0 | 147,427 |
Net cash provided by investing activities | 0 | 0 | 147,427 |
Increase in cash and cash equivalents | 207 | 9,465 | 86,942 |
Cash and cash equivalents, beginning of year | 225,971 | 216,506 | 129,564 |
Cash and cash equivalents, end of year | $ 226,178 | $ 225,971 | $ 216,506 |
NATURE OF OPERATIONS AND GOING
NATURE OF OPERATIONS AND GOING CONCERN | 12 Months Ended |
Dec. 31, 2020 | |
NATURE OF OPERATIONS AND GOING CONCERN | |
NATURE OF OPERATIONS AND GOING CONCERN | 1. NATURE OF OPERATIONS AND GOING CONCERN The Company was incorporated under the laws of Cayman Islands on January 12, 2000. On January 15, 2000 the Company acquired 100% of the issued and outstanding shares of NAI Interactive Ltd. (“NAI”), a company incorporated under the laws of British Columbia, Canada. The Company also has a dormant wholly-owned subsidiary ChineseWorldNet.com HK Limited (“CWN HK”) incorporated under the laws of Hong Kong. ChineseWorldNet.com (Shanghai) Ltd. (“CWN China”) was incorporated under the laws of People’s Republic of China in April 2008. In fiscal year 2012, the Company’s ownership interests in CWN China increased from 80% to 83% after CWN HK invested an amount of $200,000 to CWN China’s registered capital. During the fiscal year 2013, the Company’s ownership interests in CWN China further increased from 83% to 85% after CWN HK invested an amount of $187,200 to CWN China’s registered capital. CWN China has a wholly-owned subsidiary, Weihai Consulting Investment Ltd (“Weihai”), a company incorporated under the laws of People’s Republic of China in September 2009. In year 2014, the Company received shareholder approval and sold all issued and outstanding shares in NAI, all issued and outstanding shares of CWN HK and 23.8% of issued and outstanding shares of CWN Capital. For the consideration, the Company received an aggregate of CAD $263,968 in funds and one non-interest bearing promissory notes in the aggregate principal amount of CAD $831,031 with a maturity date of one year with the option to extend upon mutual agreement. After disposal of all subsidiaries and long-term investment on April 28, 2014, the core business activities and operations were discontinued. The Company is currently inactive with limited operations and is in the process of seeking new business opportunities. These financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The Company has accumulated losses since its inception and requires additional funds to maintain and expand its intended business operations. As at December 31, 2020, the Company has a working capital of $71,707 (2019: $388,424). Management’s plans in this regard are to raise debt or equity financing as required which the Company has been able to finance the operations through a series of equity and debt financings and additional funds is still required to fund the Company’s anticipated business expansion. There can be no assurance that a viable business opportunity that can be adequately financed will be identified and available to the Company. Additional equity and/or debt financing is subject to the global financial markets and prevailing economic conditions, which have recently been volatile and distressed. These factors will likely make it more challenging to obtain financing for the Company going forward. These matters and conditions indicate the existence of a material uncertainty that causes substantial doubt about the Company’s ability to continue as going concern. Early in 2020, there was a global outbreak of COVID-19 (coronavirus). This contagious disease outbreak, which has continued to spread, and any related adverse public health developments, has adversely affected workforces, economies, and financial markets globally, potentially leading to an economic downturn. At this time, it is unknown the extent of the impact the COVID -19 outbreak may have on the Company as this will depend on future developments that are highly uncertain and that cannot be predicted with confidence. These uncertainties arise from the inability to predict the ultimate geographic spread of the disease, and the duration of the outbreak, including the duration of travel restrictions, business closures or disruptions, and quarantine/isolation measures that are currently, or may be put, in place by Canada and other countries to fight the virus. The Company has been minimally affected by COVID19 in terms of business activities. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
SIGNIFICANT ACCOUNTING POLICIES | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES Basis of presentation These financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“US GAAP”) and are expressed in United States dollars, unless otherwise noted. All adjustments considered necessary for a fair presentation of financial position, results of operations and cash flows as at December 31, 2020 have been included. Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates and underlying assumptions are reviewed at each period end. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Significant areas requiring the use of management estimates relate to fair value of financial instruments. Cash and cash equivalents Cash equivalents usually consist of highly liquid investments which are readily convertible into cash with maturity of three months or less when purchased. The Company had no cash equivalents as of December 31, 2020 (2019 - $Nil). Foreign currency translations The Company’s functional currency is the U.S. dollar. Transactions in other currencies are recorded in U.S. dollars at the rates of exchange prevailing when the transactions occur. Monetary assets and liabilities denominated in other currencies are translated into U.S. dollars at rates of exchange in effect at the balance sheet dates. Exchange gains and losses are recorded in the Statements of Operations and Comprehensive Income (Loss). Income taxes Income taxes are accounted for under the liability method of accounting for income taxes. Under the liability method, deferred tax liabilities and assets are recognized for the estimated future tax consequences attributable to differences between the amounts reported in the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply when the asset is realized or the liability is settled. The effect of a change in income tax rates on deferred tax liabilities and assets is recognized in income in the period in which the change occurs. Deferred tax assets are recognized to the extent that they are considered more likely than not to be realized. Per FASB ASC 740 “Income taxes” under the liability method, it is the Company’s policy to provide for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. At December 31, 2020, the Company believes it has appropriately accounted for any unrecognized tax benefits. To the extent the Company prevails in matters for which a liability for an unrecognized benefit is established or is required to pay amounts in excess of the liability, the Company’s effective tax rate in a given financial statement period may be affected. Interest and penalties associated with the Company’s tax positions are recorded as Interest Expense. Comprehensive income (loss) The Company accounts for comprehensive income (loss) under the provisions of ASC Topic 220‑10, Comprehensive Income - Overall, which establishes standards for reporting and display of comprehensive income, its components and accumulated balances. The Company is disclosing this information on its Statements of Operations and Comprehensive Income (Loss). Financial instruments and concentration of risks Fair value of financial instruments is made at a specific point in time, based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of significant judgment, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair values. The carrying value of cash and cash equivalents, due to related parties and accounts payable and accrued liabilities approximates their fair value because of the short-term nature of these instruments. The fair value of long term notes receivable is estimated using discounted cash flow model that utilizes a discount rate that reflects the Company’s current pricing for loans with similar characteristics and maturity, adjusted by liquidity premium and company specific premium at the balance sheet date (refer to Note 3). The Company is exposed to interest rates risk on its cash and cash equivalents. Management does not believe that the impact of interest rate fluctuate will be significant. The Company has cash and cash equivalents with various financial institutions, which may exceed insured limits throughout the year. The Company is exposed to credit loss for amounts in excess of insured limits in the event of non-performance by the institution. However, the Company does not anticipate non-performance. The Company is exposed to foreign currency risk on fluctuations related to cash and cash equivalent, accounts payable and accrued liabilities and note receivable which is denominated in Canadian dollars. Fair value of financial instruments Fair Value of Financial Instruments – the Company adopted SFAS ASC 820‑10‑50, “Fair Value Measurements”. This guidance defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows: · Level one – Quoted market prices in active markets for identical assets or liabilities; · Level two – Inputs other than level one inputs that are either directly or indirectly observable; and · Level three – Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use. For the years ended December 31, 2020 and 2019, the Company’s financial instruments include cash and cash equivalents, accounts payable, and amounts due to related parties. The carrying values of these financial instruments approximate their fair values due to their relatively short periods to maturity; and the fair value of notes receivable are recognized in the balance sheets as level three per the fair value hierarchy (refer to note 3). The carrying value of note receivable are approximate its fair value due to the market interest rate used. Earning (Loss) per share Basic earning (loss) per share is computed on the basis of the weighted average number of common shares outstanding during each period. Diluted earning (loss) per share is computed on the basis of the weighted average number of common shares and dilutive securities outstanding. Stock-based compensation The Company has adopted the fair value method of accounting for stock-based compensation as recommended by ASC 718 Compensation –Stock Compensation . The Company has granted stock options to directors and certain employees for services provided to the Company under this method. The Company recognizes compensation expense for stock options awarded based on the fair value of the options at the grant date using the Black-Scholes option pricing model. The fair value of the options is amortized over the vesting period. Recently adopted accounting pronouncements In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. For all entities, amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted. An entity is permitted to early adopt any removed or modified disclosures upon issuance of ASU No. 2018-13 and delay adoption of the additional disclosures until their effective date. The Company has adopted the methodologies prescribed by this ASU since January 1, 2020 and there is no material impact on the Company’s financial statements. |
NOTES RECEIVABLE
NOTES RECEIVABLE | 12 Months Ended |
Dec. 31, 2020 | |
NOTES RECEIVABLE | |
NOTES RECEIVABLE | 3. NOTES RECEIVABLE As at April 28, 2014, the Company received a promissory note of CAD $831,031 (US $618,952) from Ningbo International Limited, a non-related party, as result of the disposal all the issued and outstanding shares in NAI, all the issued and outstanding shares of CWN HK and 23.8% of the issued and outstanding shares of CWN Capital. The promissory note is non-interest bearing, unsecured with a maturity date of one year, and the option to extend upon mutual agreement. On April 28, 2015, the Company extended the payment date of the promissory note to April 28, 2016. On April 28, 2016, the Company further extended the payment date to April 28, 2018 and imposed an 8% per annum interest rate payable on the repayment date of the principal amount. On April 16, 2017, the Company amended the promissory note to non-interest bearing and changed the payment schedule as follows: · CDN $150,000 on or before April 30, 2017; · CDN $100,000 on or before December 31, 2018; · CDN $100,000 on or before December 31, 2019; · The remaining principal amount of CDN $481,031 will be payable on or before December 31, 2020. As at December 31, 2018, the Company received payment of CAD $404,360 from Ningbo International Limited. No repayment was received in 2019 and 2020. On November 27, 2020, Ningbo has entered an Amendment of the Agreement (the "Amendment") with the Company. In relation to this Amendment, the remaining promissory note balance of CAD$426,671 shall be repaid on or before December 31, 2022. As at December 31, 2020, the note receivable balance is recorded at a fair value of $271,147 (2019: $257,714 and 2018: $178,373 ). The note is valued using a discounted cash flow model that utilizes a discount rate that reflects the Company’s current pricing for loans with similar characteristics and maturity, adjusted by liquidity premium and company specific premium at the balance sheet date. The Company recognized $57,485 loss on note receivable [2019 - $Nil and 2018 - $Nil], interest income on the note receivable of $Nil (2019: $Nil and 2018: $Nil) and accretion income of $63,290 [2019 - $68,869 and 2018 - $79,655]. The effective interest rate of the note receivable is 11%. During the year ended December 31, 2020, the Company recorded foreign exchange gain of $7,628 [2019 - foreign exchange gain: $10,472 and 2018 - foreign exchange loss: $24,991]. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2020 | |
STOCKHOLDERS' EQUITY | |
STOCKHOLDERS' EQUITY | 4. STOCKHOLDERS’ EQUITY Share Capital The Company has authorized 100,000,000 common shares at par value of $0.001 per share. As at December 31, 2020 and 2019, the Company has 10,950,000 common shares issued and outstanding. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 5. RELATED PARTY TRANSACTIONS As at December 31, 2020, the Company has amounts due to stockholders and directors of $150,282 [2019 - $92,562]. These amounts are non-interest bearing, unsecured, and due on demand. For the year ended December 31, 2020, the Company accrued director fees in the amount of $36,000 [2019 - $36,000 and 2018 - $36,000]. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
INCOME TAXES | 6. INCOME TAXES The Company is subject to the tax laws of Cayman Islands and the tax rate is 0%. The Company’s former subsidiaries were subject to tax at various rates in the jurisdictions in which they operated. The reconciliation of the income tax expense is as follows: 2020 2019 2018 $ $ $ Net income (loss) for the year (45,570) 34,894 (5,603) Statutory Cayman Islands corporate tax rate 0 % 0 % 0 % Expected tax expense (recovery) — — — As at December 31, 2020, the Company has $Nil unrecognized deductible temporary differences. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Basis of presentation | Basis of presentation These financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“US GAAP”) and are expressed in United States dollars, unless otherwise noted. All adjustments considered necessary for a fair presentation of financial position, results of operations and cash flows as at December 31, 2020 have been included. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates and underlying assumptions are reviewed at each period end. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Significant areas requiring the use of management estimates relate to fair value of financial instruments. |
Cash and cash equivalents | Cash and cash equivalents Cash equivalents usually consist of highly liquid investments which are readily convertible into cash with maturity of three months or less when purchased. The Company had no cash equivalents as of December 31, 2020 (2019 - $Nil). |
Foreign currency translations | Foreign currency translations The Company’s functional currency is the U.S. dollar. Transactions in other currencies are recorded in U.S. dollars at the rates of exchange prevailing when the transactions occur. Monetary assets and liabilities denominated in other currencies are translated into U.S. dollars at rates of exchange in effect at the balance sheet dates. Exchange gains and losses are recorded in the Statements of Operations and Comprehensive Income (Loss). |
Income taxes | Income taxes Income taxes are accounted for under the liability method of accounting for income taxes. Under the liability method, deferred tax liabilities and assets are recognized for the estimated future tax consequences attributable to differences between the amounts reported in the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply when the asset is realized or the liability is settled. The effect of a change in income tax rates on deferred tax liabilities and assets is recognized in income in the period in which the change occurs. Deferred tax assets are recognized to the extent that they are considered more likely than not to be realized. Per FASB ASC 740 “Income taxes” under the liability method, it is the Company’s policy to provide for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. At December 31, 2020, the Company believes it has appropriately accounted for any unrecognized tax benefits. To the extent the Company prevails in matters for which a liability for an unrecognized benefit is established or is required to pay amounts in excess of the liability, the Company’s effective tax rate in a given financial statement period may be affected. Interest and penalties associated with the Company’s tax positions are recorded as Interest Expense. |
Comprehensive income (loss) | Comprehensive income (loss) The Company accounts for comprehensive income (loss) under the provisions of ASC Topic 220‑10, Comprehensive Income - Overall, which establishes standards for reporting and display of comprehensive income, its components and accumulated balances. The Company is disclosing this information on its Statements of Operations and Comprehensive Income (Loss). |
Financial instruments and concentration of risks | Financial instruments and concentration of risks Fair value of financial instruments is made at a specific point in time, based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of significant judgment, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair values. The carrying value of cash and cash equivalents, due to related parties and accounts payable and accrued liabilities approximates their fair value because of the short-term nature of these instruments. The fair value of long term notes receivable is estimated using discounted cash flow model that utilizes a discount rate that reflects the Company’s current pricing for loans with similar characteristics and maturity, adjusted by liquidity premium and company specific premium at the balance sheet date (refer to Note 3). The Company is exposed to interest rates risk on its cash and cash equivalents. Management does not believe that the impact of interest rate fluctuate will be significant. The Company has cash and cash equivalents with various financial institutions, which may exceed insured limits throughout the year. The Company is exposed to credit loss for amounts in excess of insured limits in the event of non-performance by the institution. However, the Company does not anticipate non-performance. The Company is exposed to foreign currency risk on fluctuations related to cash and cash equivalent, accounts payable and accrued liabilities and note receivable which is denominated in Canadian dollars. |
Fair value of financial instruments | Fair value of financial instruments Fair Value of Financial Instruments – the Company adopted SFAS ASC 820‑10‑50, “Fair Value Measurements”. This guidance defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows: · Level one – Quoted market prices in active markets for identical assets or liabilities; · Level two – Inputs other than level one inputs that are either directly or indirectly observable; and · Level three – Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use. For the years ended December 31, 2020 and 2019, the Company’s financial instruments include cash and cash equivalents, accounts payable, and amounts due to related parties. The carrying values of these financial instruments approximate their fair values due to their relatively short periods to maturity; and the fair value of notes receivable are recognized in the balance sheets as level three per the fair value hierarchy (refer to note 3). The carrying value of note receivable are approximate its fair value due to the market interest rate used. |
Earning (Loss) per share | Earning (Loss) per share Basic earning (loss) per share is computed on the basis of the weighted average number of common shares outstanding during each period. Diluted earning (loss) per share is computed on the basis of the weighted average number of common shares and dilutive securities outstanding. |
Stock-based compensation | Stock-based compensation The Company has adopted the fair value method of accounting for stock-based compensation as recommended by ASC 718 Compensation –Stock Compensation . The Company has granted stock options to directors and certain employees for services provided to the Company under this method. The Company recognizes compensation expense for stock options awarded based on the fair value of the options at the grant date using the Black-Scholes option pricing model. The fair value of the options is amortized over the vesting period. |
Recently Adopted Accounting Pronouncements | Recently adopted accounting pronouncements In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. For all entities, amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted. An entity is permitted to early adopt any removed or modified disclosures upon issuance of ASU No. 2018-13 and delay adoption of the additional disclosures until their effective date. The Company has adopted the methodologies prescribed by this ASU since January 1, 2020 and there is no material impact on the Company’s financial statements. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
Schedule of income tax reconciliation | The Company is subject to the tax laws of Cayman Islands and the tax rate is 0%. The Company’s former subsidiaries were subject to tax at various rates in the jurisdictions in which they operated. The reconciliation of the income tax expense is as follows: 2020 2019 2018 $ $ $ Net income (loss) for the year (45,570) 34,894 (5,603) Statutory Cayman Islands corporate tax rate 0 % 0 % 0 % Expected tax expense (recovery) — — — |
NATURE OF OPERATIONS AND GOIN_2
NATURE OF OPERATIONS AND GOING CONCERN (Details) | Apr. 28, 2014 | Dec. 31, 2014CAD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2011 | Jan. 15, 2000 |
Nature of Operations and Going Concern | ||||||||
Investments in and Advances to Affiliates, at Fair Value, Gross Additions | $ 187,200 | $ 200,000 | ||||||
Business Combination, Consideration Transferred | $ 263,968 | |||||||
Working capital | $ 71,707 | $ 388,424 | ||||||
Non-Interest Bearing Promissory Notes [Member] | ||||||||
Nature of Operations and Going Concern | ||||||||
Note receivable term | 1 year | 1 year | ||||||
Debt Instrument, Face Amount | $ 831,031 | |||||||
NAI Interactive Ltd [Member] | ||||||||
Nature of Operations and Going Concern | ||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |||||||
Cwn China [Member] | ||||||||
Nature of Operations and Going Concern | ||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 85.00% | 83.00% | ||||||
Equity Method Investment, Ownership Percentage | 83.00% | 80.00% | ||||||
CWN Capital [Member] | ||||||||
Nature of Operations and Going Concern | ||||||||
Percentage of Equity Issued | 23.80% |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Cash and cash equivalents | ||
Cash equivalents | $ 0 | $ 0 |
NOTES RECEIVABLE (Details)
NOTES RECEIVABLE (Details) | Apr. 28, 2016 | Apr. 28, 2014CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018CAD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2014 | Apr. 16, 2017CAD ($) | Apr. 28, 2014USD ($) |
Notes Receivable | |||||||||
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 11.00% | ||||||||
Payment on notes receivable | $ 0 | $ 0 | $ 147,427 | ||||||
Loss on note receivable | 57,485 | 0 | |||||||
Interest income | 0 | 0 | 0 | ||||||
Accretion income | 63,290 | 68,869 | 79,655 | ||||||
Gain (loss) on foreign exchange | 7,628 | (10,472) | 24,991 | ||||||
CWN Capital [Member] | |||||||||
Notes Receivable | |||||||||
Sale of stock, percentage of shares sold | 23.80% | ||||||||
Ningbo International Limited [Member] | |||||||||
Notes Receivable | |||||||||
Note receivable, payment due on or before December 31, 2022 | 426,671 | ||||||||
Payment on notes receivable | 0 | 0 | $ 404,360 | ||||||
Non-Interest Bearing Promissory Notes [Member] | |||||||||
Notes Receivable | |||||||||
Receivable with Imputed Interest, Face Amount | $ 831,031 | $ 618,952 | |||||||
Note receivable term | 1 year | 1 year | |||||||
Receivable with Imputed Interest, Due Date | Apr. 28, 2018 | ||||||||
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 8.00% | ||||||||
Notes receivable, fair value | $ 271,147 | $ 257,714 | $ 178,373 | ||||||
Non-Interest Bearing Promissory Notes [Member] | Ningbo International Limited [Member] | Receivable on or before April 30, 2017 [Member] | |||||||||
Notes Receivable | |||||||||
Financing Receivable, Net | $ 150,000 | ||||||||
Non-Interest Bearing Promissory Notes [Member] | Ningbo International Limited [Member] | Recievable on or before Dec 31, 2018 [Member] | |||||||||
Notes Receivable | |||||||||
Financing Receivable, Net | 100,000 | ||||||||
Non-Interest Bearing Promissory Notes [Member] | Ningbo International Limited [Member] | Receivable on or before Dec 31, 2019 [Member] | |||||||||
Notes Receivable | |||||||||
Financing Receivable, Net | 100,000 | ||||||||
Non-Interest Bearing Promissory Notes [Member] | Ningbo International Limited [Member] | Recieved on or bebore Dec 31,2020 [Member] | |||||||||
Notes Receivable | |||||||||
Financing Receivable, Net | $ 481,031 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
STOCKHOLDERS' EQUITY | ||
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares, Issued | 10,950,000 | 10,950,000 |
Common Stock, Shares, Outstanding | 10,950,000 | 10,950,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
RELATED PARTY TRANSACTIONS | |||
Noninterest Advance To Related Party | $ 150,282 | $ 92,562 | |
Directors' remuneration | $ 36,000 | $ 36,000 | $ 36,000 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Income Tax Expense (Details) - USD ($) | 12 Months Ended | 36 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | |
INCOME TAXES | ||||
Net income (loss) for the year | $ (45,570) | $ 34,894 | $ (5,603) | |
Statutory Cayman Islands corporate tax rate | 0.00% | 0.00% | 0.00% | 0.00% |
Expected tax expense (recovery) | $ 0 | $ 0 | $ 0 |
INCOME TAXES - Adiitional Infor
INCOME TAXES - Adiitional Information (Details) - USD ($) | 12 Months Ended | 36 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | |
INCOME TAXES | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 0.00% | 0.00% | 0.00% | 0.00% |
Unrecognized Tax Benefits | $ 0 | $ 0 |