Document And Entity Information
Document And Entity Information | 9 Months Ended |
Sep. 30, 2022 | |
Document Information Line Items | |
Entity Registrant Name | ENTREPRENEUR UNIVERSE BRIGHT GROUP |
Document Type | S-1/A |
Amendment Flag | true |
Amendment Description | Amendment No. 2 |
Entity Central Index Key | 0001171326 |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Incorporation, State or Country Code | NV |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS | |||
Cash and cash equivalents | $ 6,330,431 | $ 7,649,129 | $ 3,846,470 |
Debt products | 3,058,041 | ||
Accounts receivable | 287,436 | 67,940 | 202,183 |
Loan and interest receivables | 983,699 | ||
Other receivables and prepayments | 41,068 | 55,925 | 50,306 |
Loan to a related company | 186,796 | ||
Total current assets | 7,642,634 | 7,772,994 | 7,343,796 |
NON-CURRENT ASSETS | |||
Plant and equipment, net | 202,431 | 281,448 | 355,609 |
Operating lease right-of-use assets, net | 93,387 | 146,698 | 25,615 |
Total non-current assets | 295,818 | 428,146 | 381,224 |
TOTAL ASSETS | 7,938,452 | 8,201,140 | 7,725,020 |
CURRENT LIABILITIES | |||
Accounts payable | 115,833 | ||
Other payables and accrued liabilities | 225,119 | 402,158 | 618,508 |
Contract liabilities | 216,142 | ||
Receipt in advance | 5,161 | 50,369 | |
Operating lease liabilities, current | 51,119 | 59,370 | 29,933 |
Tax payables | 133,931 | 39,545 | 595,338 |
Amount due to a shareholder | 53,000 | ||
Amount due to a director | 167,935 | 171,443 | 51,309 |
Borrowings | 128,996 | ||
Total current liabilities | 578,104 | 1,009,652 | 1,527,453 |
NON-CURRENT LIABILITY | |||
Deferred tax liabilities | 297,200 | 342,546 | 626,546 |
Operating lease liabilities, non-current | 42,269 | 87,328 | |
Total non-current liabilities | 339,469 | 429,874 | 626,546 |
TOTAL LIABILITIES | 917,573 | 1,439,526 | 2,153,999 |
COMMITMENTS AND CONTINGENCIES | |||
STOCKHOLDERS’ EQUITY | |||
Preferred stock value | |||
Common stock value | 170,118 | 170,118 | 170,118 |
Additional paid-in capital | 6,453,048 | 6,453,048 | 6,453,048 |
Statutory reserves | 65,911 | 65,911 | 65,911 |
Retained earnings (accumulated deficit) | 267,621 | (357,403) | (1,443,803) |
Accumulated other comprehensive income | 64,181 | 429,940 | 325,747 |
Total stockholders’ equity | 7,020,879 | 6,761,614 | 5,571,021 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 7,938,452 | $ 8,201,140 | $ 7,725,020 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | |||
Preferred stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 1,100,000 | 1,100,000 | 1,100,000 |
Preferred stock, shares issued | |||
Preferred stock, shares outstanding | |||
Common stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 1,800,000,000 | 1,800,000,000 | 1,800,000,000 |
Common stock, shares issued | 1,701,181,423 | 1,701,181,423 | 1,701,181,423 |
Common stock, shares outstanding | 1,701,181,423 | 1,701,181,423 | 1,701,181,423 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Income Statement [Abstract] | |||||||
Revenue | $ 801,784 | $ 1,622,471 | $ 2,851,656 | $ 4,479,415 | $ 5,637,396 | $ 9,187,023 | |
Cost of revenue | (140,009) | (870,967) | (565,820) | (1,289,739) | (1,827,082) | (661,462) | |
Gross profit | 661,775 | 751,504 | 2,285,836 | 3,189,676 | 3,810,314 | 8,525,561 | |
Selling expenses | (10,043) | (54,921) | (34,957) | (224,935) | (253,958) | (188,900) | |
General and administrative expenses | (423,931) | (326,090) | (1,066,604) | (905,391) | (1,668,432) | (935,302) | |
Profit from operations | 227,801 | 370,493 | 1,184,275 | 2,059,350 | 1,887,924 | 7,401,359 | |
Other income (expenses): | |||||||
Interest income | 10,522 | 15,934 | 33,489 | 66,213 | 76,952 | 36,721 | |
Exchange gain (loss) | (135,842) | 8,957 | (107,920) | (3,088) | (476) | (813) | |
Sundry income | 1,304 | 13,956 | 110,336 | 45,816 | 110,916 | 35,648 | |
Total other income (expenses), net | (124,016) | 38,847 | 35,905 | 108,941 | 187,392 | 71,556 | |
Income before income tax | 103,785 | 409,340 | 1,220,180 | 2,168,291 | 2,075,316 | 7,472,915 | |
Income tax expense | (135,784) | (201,789) | (595,156) | (872,063) | (988,916) | (2,504,845) | |
Net (loss) income | (31,999) | 207,551 | 625,024 | 1,296,228 | 1,086,400 | 4,968,070 | |
Other comprehensive income | |||||||
Foreign currency translation adjustment | (128,843) | (2,946) | (365,759) | 63,036 | 104,193 | 329,795 | |
Total comprehensive (loss) income | $ (160,842) | $ 204,605 | $ 259,265 | $ 1,359,264 | $ 1,190,593 | $ 5,297,865 | |
Net (loss) income per share - Basic (in Dollars per share) | [1] | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average number of common shares outstanding | |||||||
- Basic (in Shares) | 1,701,181,423 | 1,701,181,423 | 1,701,181,423 | 1,701,181,423 | 1,701,181,423 | 1,701,181,423 | |
[1] Less than $0.01 per share |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | ||||||
Income Statement [Abstract] | |||||||||||
Net (loss) income per share - Diluted (in Dollars per share) | $ 0 | [1] | $ 0 | [1] | $ 0 | [1] | $ 0 | [1] | $ 0 | [1] | $ 0 |
-Diluted (in Shares) | 1,701,181,423 | 1,701,181,423 | 1,701,181,423 | 1,701,181,423 | 1,701,181,423 | 1,701,181,423 | |||||
[1] Less than $0.01 per share |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Common Stock | Additional Paid-In Capital | Preferred Stock | Statutory Reserve | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Dec. 31, 2019 | $ 170,118 | $ 6,453,048 | $ 34,720 | $ (6,380,682) | $ (4,048) | $ 273,156 | |
Balance (in Shares) at Dec. 31, 2019 | 1,701,181,423 | ||||||
Net income (loss) | 4,968,070 | 4,968,070 | |||||
Foreign currency translation adjustment | 329,795 | 329,795 | |||||
Statutory reserve | 31,191 | (31,191) | 65,911 | ||||
Balance at Dec. 31, 2020 | $ 170,118 | 6,453,048 | 65,911 | (1,443,803) | 325,747 | 5,571,021 | |
Balance (in Shares) at Dec. 31, 2020 | 1,701,181,423 | ||||||
Net income (loss) | 966,636 | 966,636 | |||||
Foreign currency translation adjustment | 24,465 | 24,465 | |||||
Balance at Mar. 31, 2021 | $ 170,118 | 6,453,048 | 65,911 | (477,167) | 350,212 | 6,562,122 | |
Balance (in Shares) at Mar. 31, 2021 | 1,701,181,423 | ||||||
Balance at Dec. 31, 2020 | $ 170,118 | 6,453,048 | 65,911 | (1,443,803) | 325,747 | 5,571,021 | |
Balance (in Shares) at Dec. 31, 2020 | 1,701,181,423 | ||||||
Net income (loss) | 1,296,228 | ||||||
Balance at Sep. 30, 2021 | $ 170,118 | 6,453,048 | 65,911 | (147,575) | 388,783 | 6,930,285 | |
Balance (in Shares) at Sep. 30, 2021 | 1,701,181,423 | ||||||
Balance at Dec. 31, 2020 | $ 170,118 | 6,453,048 | 65,911 | (1,443,803) | 325,747 | 5,571,021 | |
Balance (in Shares) at Dec. 31, 2020 | 1,701,181,423 | ||||||
Net income (loss) | 1,086,400 | 1,086,400 | |||||
Foreign currency translation adjustment | 104,193 | 104,193 | |||||
Statutory reserve | 65,911 | ||||||
Balance at Dec. 31, 2021 | $ 170,118 | 6,453,048 | 65,911 | (357,403) | 429,940 | 6,761,614 | |
Balance (in Shares) at Dec. 31, 2021 | 1,701,181,423 | ||||||
Balance at Mar. 31, 2021 | $ 170,118 | 6,453,048 | 65,911 | (477,167) | 350,212 | 6,562,122 | |
Balance (in Shares) at Mar. 31, 2021 | 1,701,181,423 | ||||||
Net income (loss) | 122,041 | 122,041 | |||||
Foreign currency translation adjustment | 41,517 | 41,517 | |||||
Balance at Jun. 30, 2021 | $ 170,118 | 6,453,048 | 65,911 | (355,126) | 391,729 | 6,725,680 | |
Balance (in Shares) at Jun. 30, 2021 | 1,701,181,423 | ||||||
Net income (loss) | 207,551 | 207,551 | |||||
Foreign currency translation adjustment | (2,946) | (2,946) | |||||
Balance at Sep. 30, 2021 | $ 170,118 | 6,453,048 | 65,911 | (147,575) | 388,783 | 6,930,285 | |
Balance (in Shares) at Sep. 30, 2021 | 1,701,181,423 | ||||||
Balance at Dec. 31, 2021 | $ 170,118 | 6,453,048 | 65,911 | (357,403) | 429,940 | 6,761,614 | |
Balance (in Shares) at Dec. 31, 2021 | 1,701,181,423 | ||||||
Net income (loss) | 391,173 | 391,173 | |||||
Foreign currency translation adjustment | (5,135) | (5,135) | |||||
Balance at Mar. 31, 2022 | $ 170,118 | 6,453,048 | 65,911 | 33,770 | 424,805 | 7,147,652 | |
Balance (in Shares) at Mar. 31, 2022 | 1,701,181,423 | ||||||
Balance at Dec. 31, 2021 | $ 170,118 | 6,453,048 | 65,911 | (357,403) | 429,940 | 6,761,614 | |
Balance (in Shares) at Dec. 31, 2021 | 1,701,181,423 | ||||||
Net income (loss) | 625,024 | ||||||
Statutory reserve | 65,911 | ||||||
Balance at Sep. 30, 2022 | $ 170,118 | 6,453,048 | 65,911 | 267,621 | 64,181 | 7,020,879 | |
Balance (in Shares) at Sep. 30, 2022 | 1,701,181,423 | ||||||
Balance at Mar. 31, 2022 | $ 170,118 | 6,453,048 | 65,911 | 33,770 | 424,805 | 7,147,652 | |
Balance (in Shares) at Mar. 31, 2022 | 1,701,181,423 | ||||||
Net income (loss) | 265,850 | 265,850 | |||||
Foreign currency translation adjustment | (231,781) | (231,781) | |||||
Balance at Jun. 30, 2022 | $ 170,118 | 6,453,048 | 65,911 | 299,620 | 193,024 | 7,181,721 | |
Balance (in Shares) at Jun. 30, 2022 | 1,701,181,423 | ||||||
Net income (loss) | (31,999) | (31,999) | |||||
Foreign currency translation adjustment | (128,843) | (128,843) | |||||
Balance at Sep. 30, 2022 | $ 170,118 | $ 6,453,048 | $ 65,911 | $ 267,621 | $ 64,181 | $ 7,020,879 | |
Balance (in Shares) at Sep. 30, 2022 | 1,701,181,423 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | ||||
Net income | $ 625,024 | $ 1,296,228 | $ 1,086,400 | $ 4,968,070 |
Adjustments to reconcile net income to cash used in operating activities: | ||||
Depreciation | 62,516 | 62,222 | 83,212 | 32,059 |
Amortization of operating lease right-of-use assets | 40,575 | 39,248 | 39,367 | 31,350 |
Deferred tax | (33,117) | (319,660) | (293,366) | 552,005 |
Changes in operating assets and liabilities: | ||||
Other receivables and prepayments | 11,128 | (179,961) | (5,186) | (27,577) |
Accounts receivable | (244,432) | 95,800 | 137,165 | (28,585) |
Amount due from a related company | 235,930 | |||
Amount due to a shareholder | (53,000) | 53,000 | ||
Accounts payable | (111,527) | 431,690 | 115,561 | (57,954) |
Other payables and accrued liabilities | (159,123) | (284,226) | (220,493) | 395,583 |
Tax payables | 106,699 | (445,713) | (563,979) | 415,984 |
Contract liabilities | (208,106) | 4,158 | 215,636 | (87,490) |
Receipt in advance | (4,969) | (34,318) | (45,909) | 29,104 |
Operating lease liabilities | (40,574) | (43,614) | (43,745) | (27,259) |
Net cash generated from operating activities | 44,094 | 621,854 | 451,663 | 6,484,220 |
Cash flows from investing activities | ||||
Purchase of property, plant and equipment | (9,746) | (369,021) | ||
Acquisition of debt products | (2,781,482) | (2,789,855) | (2,897,689) | |
Redemption of debt products | 5,872,017 | 5,889,695 | ||
Loan receivables to unrelated third parties | (1,060,394) | (499,554) | ||
Loan to a related company | (123,621) | (123,994) | (147,912) | |
Repayment from a related company | 312,401 | 313,343 | ||
Repayment from a unrelated third party | 499,554 | |||
Net cash (used in) generated from investing activities | (1,070,140) | 3,279,315 | 3,289,189 | (3,414,622) |
Cash flows from financing activities | ||||
Proceed from borrowings | 128,927 | |||
Repayment of borrowings | (128,656) | |||
Repayment of borrowings from a director | (3,490) | (128,751) | ||
Advance from a director | 67,882 | 121,090 | 41,271 | |
Net cash used in financing activities | (3,490) | (60,869) | (7,566) | 170,198 |
Effect of exchange rates on cash | (289,162) | 37,171 | 69,373 | 206,796 |
Net (decrease) increase in cash and cash equivalents | (1,318,698) | 3,877,471 | 3,802,659 | 3,446,592 |
Cash and cash equivalents at beginning of period | 7,649,129 | 3,846,470 | 3,846,470 | 399,878 |
Cash and cash equivalents at end of period | 6,330,431 | 7,723,941 | 7,649,129 | 3,846,470 |
Cash paid during the year for: | ||||
Income taxes | 369,878 | 1,115,659 | 1,326,242 | 1,536,857 |
Withholding tax paid | $ 151,485 | $ 517,145 | 518,702 | |
Non-cash financing activities Operating lease assets obtained in exchange for operating lease obligations | $ 171,419 | $ 55,622 |
Organization and Business
Organization and Business | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
ORGANIZATION AND BUSINESS | NOTE 1 – ORGANIZATION AND BUSINESS Entrepreneur Universe Bright Group (“EUBG” or the “Company”) was incorporated in the State of Nevada on April 21, 1999 under the name LE GOURMET CO, INC. Since its inception, the Company had the following name changes: On March 17, 2003, to Estelle Reyna, Inc.; on September 11, 2003 to Karma Media, Inc.; on July 8, 2005 to Pitboss Entertainment, Inc.; on March 3, 2006 to US Energy Holdings, Inc.; on December 20, 2006 to Lonestar Group Holdings Company; on November 9, 2007 to Guardian Angel Group, Inc.; on May 18, 2011 to REE International, Inc.; and on March 23, 2020, the Company filed a Certificate of Amendment to the Nevada Secretary of State amending Article I of its Articles of Incorporation changing the Company’s name to Entrepreneur Universe Bright Group, with an effective date of April 3, 2020. On May 15, 2019, MXD Inc., a private company incorporated in the State of Colorado, entered into certain Sale and Purchase Agreements (the “Stock Purchase Agreements”), with Tethys Fountain Limited, New Finance Consultants Limited, Jia Wang, Jianyong Li, Haijun Jiang, Xuebin Wu and Fanfan Chen (collectively, the “Purchasers”), to transfer all its 1,590,605,141 shares of common stock of the Company to the Purchasers in exchange for an aggregate purchase price of $135,000. Upon the closing of the Stock Purchase Agreements, the Purchasers collectively owned 93.5% of the issued and outstanding shares of the Company’s common stock, and Tethys Fountain Limited became the controlling shareholder of the Company. The Company currently trades on the Pink Sheet under the symbol “EUBG”. The Company’s fiscal year end is December 31st. The Company, through its wholly owned subsidiaries, mainly engages in provision of digital marketing consultation services in Hong Kong and China. Company name Place/date of incorporation Principal activities 1. Entrepreneurship World Technology Holding Group Company Limited Hong Kong/May 15, 2019 Provision of consulting and promotional services 2. Xian Yunchuang Space Information Technology Co., Ltd. The People’s Republic of China (“PRC”)/October 18, 2019 Provision of digital marketing consultation services 3. Xian Yunchuang Space Information Technology Co., Ltd, BaiYin Branch PRC/May 7, 2020 Provision of digital marketing consultation services COVID-19 In early January of 2020, a novel coronavirus (“COVID-19”) outbreak took place in Wuhan, China. Subsequently, it has spread rapidly to Asia and other parts of the world. The COVID-19 outbreak has resulted in widespread economic disruptions in China, as well as stringent government measures by the Chinese government to contain its transmissions including quarantines, travel restrictions, and temporary closures of non-essential businesses in China and elsewhere. The outbreak in China mainly occurred in the first quarter of 2020, and it gradually stabilized and business activities started to resume under the guidance and support of the government since late second quarter of 2020. As of December 31, 2020, the COVID-19 outbreak in China appears to be generally under control and business activities have recovered on the whole. In addition, the Company resumed contacting potential customers as of June 2020, and the aforementioned negative impact has been further mitigated since the third quarter of 2020, when the outbreak became more stabilized in China and other regions in the world. However, sporadic cases continue to be found during the first half year of 2021 in China. For example, a new Delta variant of COVID-19 had been found in certain cities in China in the second quarter of 2021, which may cause another outbreak, thus increasing risks and possible further disruption to businesses. Therefore, certain of the Company’s consulting services were suspended from April 2021 to August 2021. We have resumed these consulting businesses from August 2021 in order to maintain diversified services for the Company’s customers. As of December 31, 2021 and September 30, 2022, the COVID-19 pandemic continues to be dynamic, and near-term challenges across the economy remain. Although vaccines are now being distributed and administered across many parts of the world, new variants of the virus have emerged and may continue to emerge that have shown to be more contagious. We continue to adhere to applicable governmental and commercial restrictions and to work to mitigate the impact of COVID-19 on our employees, customers, communities, liquidity and financial position. The extent to which the COVID-19 outbreak may impact the company’s business, operations and financial results from this point forward will depend on numerous evolving factors that the company cannot accurately predict. Those factors include the following: the duration and scope of the pandemic; governmental, business and individuals’ actions in response to the pandemic in the future; and any other further development of the COVID-19 outbreak. Substantially all of the Company’s revenues and operations are concentrated in China. Consequently, our results of operations and financial performances have been affected since 2020 and into the first half of 2022. Due to the government measures taken to contain COVID-19, the offline activities of the Company’s PRC subsidiary were restricted from late January to May 2020, resulting in cancellations or postponements of the marketing efforts of our customers. In addition, due to widespread economic disruptions during the outbreak, demand for the Company’s consulting services by small and medium-sized enterprises were also adversely affected. Specifically, as a result of government mandated closures of non-essential business in China, many of the Company’s customers’ business were suspended while others permanently closed their businesses. From December 22, 2021 to January 24, 2022, Xian city, the PRC, went into lockdown following a coronavirus outbreak that officials attributed to the delta variant. From April 16, 2022 to April 19, 2022, the city was under temporary controls of social activities after reporting more than 40 infections in half month. This affected both the Company’s digital marketing consulting services and our KOL Training Related Services. The Company achieved an operating revenue of $2,851,656 and $4,479,415 for the nine months ended September 30, 2022 and 2021, respectively, representing a decrease of approximately 36.3% from the prior period. For the three months ended September 30, 2022 and 2021, the Company operating revenue were $801,784 and $1,622,471, respectively, representing a decrease of 50.6%. COVID-19 has and may continue to adversely affect the Company’s financial and business performance. | NOTE 1 – ORGANIZATION AND BUSINESS Entrepreneur Universe Bright Group (“EUBG” or the “Company”), formerly known as Ketcher Industries LLC and REE International, Inc., was incorporated in the State of Nevada on April 21, 1999 under the name LE GOURMET CO, INC. Since its inception, the Company had the following name changes: On March 17, 2003, to Estelle Reyna, Inc.; on September 11, 2003 to Karma Media, Inc.; on July 8, 2005 to Pitboss Entertainment, Inc.; on March 3, 2006 to US Energy Holdings, Inc.; on December 20, 2006 to Lonestar Group Holdings Company; on November 9, 2007 to Guardian Angel Group, Inc.; on May 18, 2011 to REE International, Inc.; and on March 23, 2020, the Company filed a Certificate of Amendment to the Nevada Secretary of State amending Article I of its Articles of Incorporation changing the Company’s name to Entrepreneur Universe Bright Group, with an effective date of April 3, 2020. Lonestar Group Holdings Company was a voluntary filer and filed a Form 15 with the Securities and Exchange Commission (“SEC”) on August 20, 2007. In July 2018, XTC Inc. (“XTC”), a shareholder of the Company, petitioned the Eight Judicial District Court in Clark County, Nevada (the “Court”), for appointment as custodian of the Company. On September 4, 2018, the Court granted XTC custodianship of the Company with the right to appoint officers and directors, negotiate and compromise debt, execute contracts, issue stock and authorize new classes of stock (“Custodianship”). Since the Form 15 filing on August 20, 2007 and prior to the Custodianship, the management believes that the Company was inactive with no business operations. In December 2018, XTC filed a Certificate of Revival for a revival of its charter, effective December 13, 2018, with the Nevada Secretary of State. XTC acted together with MXD Inc. (“MXD”) to revive the Company and to get current. MXD is a private company incorporated in the State of Colorado. As the president of XTC is also the president of MXD, the Company considered that the XTC and MXD are under common control. XTC and MXD performed the following actions in its capacity as custodian: ● Funded all expenses of the Company including paying off all outstanding liabilities discovered; ● Brought the Company back in compliance with the Nevada Secretary of State, resident agent, transfer agent, OTC Markets Group; ● Brought in and paid for accounting professionals as well as securities counsel. On December 18, 2018, the Company formed REE International, Inc. Colorado (“REE-CO”). On December 21, 2018, the Company entered into an Agreement for Divestiture of Assets to Subsidiary with REE-CO, where the Company transferred all assets, liabilities, and business to REE-CO. in exchange for 1,000 shares of REE-CO, and became the parent company of REE-CO. Since then, the Company has no assets, liabilities and business. On December 28, 2018, the Company entered into a Sale and Purchase Agreement (the “SPA”) with XTC to transfer 1,000 common shares of REE-CO to XTC at nil In consideration of the payments made to revive the Company and get current by the XTC and MXD, the Company issued 1,000,000 shares of Series A Preferred Stock to MXD on December 11, 2018 and issued 50,000 shares of Series B Preferred Stock to XTC on February 27, 2019, respectively. On March 5, 2019 the total authorized common stock was increased to 1,800,000,000. On April 24, 2019, XTC was discharged as custodian of the Company. Prior to the Custodianship and immediately before May 15, 2019, the Company has abandoned all of its business operations. On May 15, 2019, 1,590,605,141 shares of common stock of the Company was issued to MXD (the “Issuance”) as consideration for its services to revive the Company and get current, at an aggregate fair value of $135,000, which was recognized as share-based payments for the year ended December 31, 2019. On the same date, MXD and XTC agreed to voluntarily retire 1,000,000 shares of Series A Preferred Stock and 50,000 shares of Series B Preferred Stock, respectively. Immediately after the Issuance, MXD entered into certain Sale and Purchase Agreements, dated May 15, 2019 (the “Stock Purchase Agreements”), with Tethys Fountain Limited, New Finance Consultants Limited, Jia Wang, Jianyong Li, Haijun Jiang, Xuebin Wu and Fanfan Chen (collectively, the “Purchasers”), to transfer all its 1,590,605,141 shares of common stock of the Company to the Purchasers in exchange for an aggregate purchase price of $135,000. Upon the closing of the Stock Purchase Agreements, the Purchasers collectively owned 93.5% of the issued and outstanding shares of the Company’s common stock, and Tethys Fountain Limited became the controlling shareholder of the Company. The Company currently trades on the Pink Sheet under the symbol “EUBG”. The Company’s fiscal year end is December 31st. The Company, through its wholly owned subsidiaries, mainly engages in provision of digital marketing consultation services in Hong Kong and China. Company name Place/date of incorporation Principal activities 1. Entrepreneurship World Technology Holding Group Company Limited Hong Kong/May 15, 2019 Provision of consulting and promotional services 2. Xian Yunchuang Space Information Technology Co., Ltd. The People’s Republic of China (“PRC”)/October 18, 2019 Provision of digital marketing consultation services 3. Xian Yunchuang Space Information Technology Co., Ltd, BaiYin Branch PRC/May 7, 2020 Provision of digital marketing consultation services COVID-19 In early January of 2020, a novel coronavirus (“COVID-19”) outbreak took place in Wuhan, China. Subsequently, it has spread rapidly to Asia and other parts of the world. The COVID-19 outbreak has resulted in widespread economic disruptions in China, as well as stringent government measures by the Chinese government to contain its transmissions including quarantines, travel restrictions, and temporary closures of non-essential businesses in China and elsewhere. The outbreak in China mainly occurred in the first quarter of 2020, and it gradually stabilized and business activities started to resume under the guidance and support of the government since late second quarter of 2020. As of December 31, 2020, the COVID-19 outbreak in China appears to be generally under control and business activities have recovered on the whole. In addition, the Company resumed contacting potential customers as of June 2020, and the aforementioned negative impact has been further mitigated since the third quarter of 2020, when the outbreak became more stabilized in China and other regions in the world. However, sporadic cases continue to be found during the first half year of 2021 in China. For example, a new Delta variant of COVID-19 had been found in certain cities in China in the second quarter of 2021, which may cause another outbreak, thus increasing risks and possible further disruption to businesses. Therefore, certain of the Company’s consulting services were suspended from April 2021 to August 2021. We have resumed these consulting businesses from August 2021 in order to maintain diversified services for the Company’s customers. As of December 31, 2021, the COVID-19 pandemic continues to be dynamic, and near-term challenges across the economy remain. Although vaccines are now being distributed and administered across many parts of the world, new variants of the virus have emerged and may continue to emerge that have shown to be more contagious. We continue to adhere to applicable governmental and commercial restrictions and to work to mitigate the impact of COVID-19 on our employees, customers, communities, liquidity and financial position. The extent to which the COVID-19 outbreak may impact the company’s business, operations and financial results from this point forward will depend on numerous evolving factors that the company cannot accurately predict. Those factors include the following: the duration and scope of the pandemic; governmental, business and individuals’ actions in response to the pandemic in the future; and any other further development of the COVID-19 outbreak. Substantially all of the Company’s revenues and operations are concentrated in China. Consequently, our results of operations and financial performances have been affected since 2020 and into the first quarter of 2022. Due to the government measures taken to contain COVID-19, the offline activities of the Company’s PRC subsidiary were restricted from late January to May 2020, resulting in cancellations or postponements of the marketing efforts of our customers. In addition, due to widespread economic disruptions during the outbreak, demand for the Company’s consulting services by small and medium-sized enterprises were also adversely affected. Specifically, as a result of government mandated closures of non-essential business in China, many of the Company’s customers’ business were suspended while others permanently closed their businesses. From December 22, 2021 to January 24, 2022, Xian city, the PRC, went into lockdown following a coronavirus outbreak that officials attributed to the delta variant. This affected both the Company’s digital marketing consulting services and our KOL Training Related Services. The Company achieved an operating revenue of $5,637,396 and $9,187,023 for the years ended December 31, 2021 and 2020, respectively, representing a decrease of approximately 38.6% from the prior year. COVID-19 has and may continue to adversely affect the Company’s financial and business performance. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States of America generally accepted accounting principles (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The interim condensed consolidated financial information as of September 30, 2022 and for the three and nine months periods ended September 30, 2022 and 2021 have been prepared without audit, pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures, which are normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The interim condensed consolidated financial information should be read in conjunction with the Financial Statements and the notes thereto, included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, previously filed with the SEC on April 15, 2022. In the opinion of management, all adjustments (which include all significant normal and recurring adjustments) necessary to present a fair statement of the Company’s interim condensed consolidated financial position as of September 30, 2022, its interim condensed consolidated results of operations and cash flows for the three and nine months period ended September 30, 2022 and 2021, as applicable, have been made. The interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods. During the nine months ended September 30, 2022, the Company experienced (and continues to experience) adverse impacts of novel coronavirus (COVID-19) and the related public health orders. The Company expects that the impact of the COVID-19 outbreak on China and world economies will continue to have a material adverse impact on the demand for the Company’s business. Because of the significant uncertainties surrounding the COVID-19 pandemic, the extent of the business interruption and the related financial impact cannot be reasonably estimated at this time. Use of Estimates The preparation of these financial statements in conformity with U.S. GAAP requires management of the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, costs and expenses, and related disclosures. On an ongoing basis, the Company evaluates its estimates based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Identified below are the accounting policies that reflect the Company’s most significant estimates and judgments, and those that the Company believes are the most critical to fully understanding and evaluating its condensed consolidated financial statements. The COVID-19 pandemic has created and may continue to create significant uncertainty in macroeconomic conditions, which may cause further business slowdowns or shutdowns, depress demand for the Company’s business, and adversely impact its results of operations. During the nine months ended September 30, 2022, the Company faced increasing uncertainties around its estimates of revenue collectability and accounts receivable credit losses. The Company expects uncertainties around its key accounting estimates to continue to evolve depending on the duration and degree of impact associated with the COVID-19 pandemic. Its estimates may change as new events occur and additional information emerges, and such changes are recognized or disclosed in its condensed consolidated financial statements. Recently Adopted Accounting Standards In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt — Modifications and Extinguishments (Subtopic 470-50), Compensation — Stock Compensation (Topic 718), and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (“ASU 2021-04”). ASU 2021-04 provides guidance as to how an issuer should account for a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option (i.e., a warrant) that remains classified after modification or exchange as an exchange of the original instrument for a new instrument. An issuer should measure the effect of a modification or exchange as the difference between the fair value of the modified or exchanged warrant and the fair value of that warrant immediately before modification or exchange and then apply a recognition model that comprises four categories of transactions and the corresponding accounting treatment for each category (equity issuance, debt origination, debt modification, and modifications unrelated to equity issuance and debt origination or modification). The Company applied the new standard beginning January 1, 2022. The adoption of ASU 2021-04 did not have any impact on the Company’s condensed consolidated financial statement presentation or disclosures. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. This update requires certain annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. The Company applied the new standard beginning January 1, 2022. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. Recently Issued Accounting Standards In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326) (“ASU 2016-13”), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. ASU 2016-13 replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. ASU 2016-13 is to be adopted on a modified retrospective basis. As a smaller reporting company, ASU 2016-13 will be effective for the Company for interim and annual reporting periods beginning after December 15, 2022. The Company is currently evaluating the impact that the adoption of ASU 2016-13 will have on its condensed consolidated financial statement presentations and disclosures. In March 2022, the FASB issued ASU 2022-02, Topic 326. The ASU eliminates the accounting guidance for trouble debt restructurings by creditors in Subtopic 310-40, and enhances the disclosure requirements for modifications of loans to borrowers experiencing financial difficulty. Additionally, the ASU requires disclosure of gross writeoffs of receivables by year of origination for receivables within the scope of Subtopic 326-20, Financial Instruments - Credit Losses - Measured at Amortized Cost. This ASU is effective for periods beginning after December 15, 2022. The Company is currently evaluating the impact that the adoption of ASU 2016-13 and ASU 2022-02 will have on its condensed consolidated financial statement presentations and disclosures. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s condensed consolidated financial statements upon adoption. Basis of Consolidation and Noncontrolling Interests The condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation. A subsidiary is an entity in which (i) the Company directly or indirectly controls more than 50% of the voting power; or (ii) the Company has the power to appoint or remove the majority of the members of the board of directors or to cast a majority of votes at the meeting of the board of directors or to govern the financial and operating policies of the investee pursuant to a statute or under an agreement among the shareholders or equity holders. Leases The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease liabilities are recognized based on the present value of the remaining lease payments, discounted using the discount rate for the lease at the commencement date. As the rate implicit in the lease is not readily determinable for the operating lease, the Company generally uses an incremental borrowing rate based on information available at the commencement date to determine the present value of future lease payments. Operating lease right-of-use (“ROU assets”) assets represent the Company’s right to control the use of an identified asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets are generally recognized based on the amount of the initial measurement of the lease liability. Lease expense is recognized on a straight-line basis over the lease term. The Company elected the package of practical expedients permitted under the transition guidance to combine the lease and non-lease components as a single lease component for operating leases associated with the Company’s office space lease, and to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the condensed consolidated statements of income on a straight-line basis over the lease term. ROU assets are reviewed for impairment when indicators of impairment are present. ROU assets from operating and finance leases are subject to the impairment guidance in ASC 360, Property, Plant, and Equipment, as ROU assets are long-lived nonfinancial assets. ROU assets are tested for impairment individually or as part of an asset group if the cash flows related to the ROU asset are not independent from the cash flows of other assets and liabilities. An asset group is the unit of accounting for long-lived assets to be held and used, which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. The Company recognized no impairment of ROU assets as of September 30, 2022 and December 31, 2021. The operating lease is included in operating lease right-of-use assets, operating lease liabilities-current and operating lease liabilities-non-current on the Company’s condensed consolidated balance sheets. Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers cash, money market funds, investments in interest bearing demand deposit accounts, time deposits and all highly liquid investments placed with banks or other financial institutions with an original maturity of three months or less to be cash equivalents. As of September 30, 2022, cash held in accounts managed by online payment platforms such as Alipay and WeChat Pay amounted to $599 (as at December 31, 2021: $161,188), which have been classified as cash and cash equivalents in the condensed consolidated balance sheets. Accounts receivable Accounts receivable are recorded at the invoiced amount, net of allowances for doubtful accounts and sales returns. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company determines the allowance based on historical write-off experience, customer specific facts and economic conditions. Outstanding accounts receivable balances are reviewed individually for collectability. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Plant and equipment Plant and equipment are recorded at cost less accumulated depreciation and accumulated impairment. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Estimated Motor vehicle 4 – 5 Office equipment 3 The gain or loss on the disposal of plant and equipment is the difference between the net sales proceeds and the lower of the carrying value or fair value less cost to sell the relevant assets and is recognized in general and administrative expenses in the condensed consolidated statements of comprehensive income. Impairment of Long-lived Assets In accordance with ASC 360-10-35, we review the carrying values of long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The Company assesses the recover-ability of the assets based on the non-discounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated discounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. No impairment has been recorded by the Company for the three and nine months ended September 30, 2022 and 2021. Revenue Recognition The Company recognizes revenues when its customer obtains control of promised goods or services, in an amount that reflects the consideration which it expects to receive in exchange for those goods. The Company recognizes revenues following the five step model prescribed under ASU No. 2014-09: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) we satisfy the performance obligation. The Company evaluates if it is a principal or an agent in a transaction to determine whether revenue should be recorded on a gross or net basis. The Company is acting as the principal if it obtains control over the goods and services before they are transferred to customers. When the Company is primarily obligated in a transaction, is generally subject to inventory risk, has latitude in establishing prices, or has several but not all of these indicators, the Company acts as the principal and revenue is recorded on a gross basis. When the Company is not primarily obligated in a transaction, does not generally bear the inventory risk and does not have the ability to establish the price, the Company acts as the agent and revenue is recorded on a net basis The Company derives its revenue primarily from net transaction services, including consultancy services, sourcing and marketing services, and digital training related services. Consultancy services The Company generates the majority of its revenues by providing consulting services to its clients. Most of its consulting service contracts are based on one of the following types of arrangements: Performance-based arrangements Fixed-fee arrangements Sourcing and marketing services The Company provides agency-based sourcing and digital marketing services to connect marketplace operators and merchants. Most of its sourcing and marketing services are based on one of the following types of arrangements: Agency-based sourcing services Digital marketing services The post-sale services, goods return and other kinds of product issue are responsibilities of the merchants. Upon successful delivery to ultimate customers by the merchants, there is no unfulfilled obligation that could affect the marketplace operators’ and merchants’ acceptance of the services provided. The acceptance provisions have lapsed, or the Company has objective evidence that all criteria for acceptance have been satisfied. Digital training related services Fixed-fee digital training related services The Company derived services revenues of $702,371 and $1,515,371 for the three months ended September 30, 2022 and 2021, respectively; and $2,207,029 and $4,268,054 for the nine months ended September 30, 2022 and 2021, respectively, from provision of certain consultancy services and sourcing and marketing services through the program application (“App”) platform managed by a related company, Xi’an Chuangyetianxia Network Technology Co., Ltd. (“Xian CNT”). The Company CEO, Mr. Tao, has significant influence over Xian CNT. Practical expedients and exemption The Company has not occurred any costs to obtain contracts, and does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. Other service income is earned when services have been rendered. Revenue by major service line Three months ended Nine months ended 2022 2021 2022 2021 Consultancy services 699,257 1,554,834 2,211,307 4,362,581 Sourcing and marketing services 102,527 67,637 372,475 116,834 Digital training related services - - 267,874 - $ 801,784 $ 1,622,471 $ 2,851,656 $ 4,479,415 Revenue by recognition over time vs point in time Three months ended Nine months ended 2022 2021 2022 2021 Revenue recognized at a point in time 801,784 1,622,471 2,851,656 4,479,415 Revenue recognized over time - - - - $ 801,784 $ 1,622,471 $ 2,851,656 $ 4,479,415 Revenue recorded on a gross vs net basis Three months ended Nine months ended 2022 2021 2022 2021 Revenue recorded on a gross basis 699,257 1,554,834 2,479,181 4,362,581 Revenue recorded on a net basis 102,527 67,637 372,475 116,834 $ 801,784 $ 1,622,471 $ 2,851,656 $ 4,479,415 Contract liabilities The Company’s contract liabilities consist of deferred revenue associated with consultancy fees and provision of fixed-fee training related services. The table below presents the activity of the deferred consultancy services revenue during the nine months ended September 30, 2022 and December 31, 2021, respectively: September 30, December 31, Balance at beginning of period $ 216,142 $ - Service fees collected 224,435 1,377,349 Refunded (152,888 ) - Service revenue earned (267,874 ) (1,176,515 ) Exchange realignment (19,815 ) 15,308 Balance at end of period $ - $ 216,142 Cost of revenue Cost of revenues consists primarily of employee compensation, service fees, agency fees, and the related IT expenses, which are directly attributable to the revenues Employee benefits Full time employees of the Company in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to the employees. Chinese labor regulations require that the PRC subsidiary of the Company make contributions to the government for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Company has no legal obligation for the benefits beyond the contributions made. Total amounts of such employee benefit expenses, which were expensed as incurred, were approximately $17,744 and $31,273 for the three months ended September 30, 2022 and 2021, respectively; and $47,963 and $78,957 for the nine months ended September 30, 2022 and 2021, respectively. Foreign Currency and Foreign Currency Translation The reporting currency of the Company is the United States dollar (“US dollar”). The financial records of the Company’s PRC operating subsidiaries are maintained in their local currency, the Renminbi (“RMB”), which is the functional currency. The financial records of the Company’s Hong Kong operating subsidiary are maintained in its local currency, the Hong Kong Dollar (“HKD”), which is the functional currency. Assets and liabilities of the subsidiaries are translated into the reporting currency at the exchange rates at the balance sheet date, equity accounts are translated at historical exchange rates, and income and expense items are translated using the average rate for the period. The translation adjustments are recorded in accumulated other comprehensive loss under shareholders’ equity. Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated into the functional currencies at the prevailing rates of exchange at the balance sheet date. Nonmonetary assets and liabilities are remeasured into the applicable functional currencies at historical exchange rates. Transactions in currencies other than the applicable functional currencies during the period are converted into the functional currencies at the applicable rates of exchange prevailing at the transaction dates. Transaction gains and losses are recognized in the condensed consolidated statements of operations. RMB is not a fully convertible currency. All foreign exchange transactions involving RMB must take place either through the People’s Bank of China (the “PBOC”) or other institutions authorized to buy and sell foreign exchange. The exchange rates adopted for the foreign exchange transactions are the rates of exchange quoted by the PBOC, which are determined largely by supply and demand. Translation of amounts from RMB into US dollars has been made at the following exchange rates for the respective periods: Nine months ended September 30, 2022 Balance sheet, except for equity accounts RMB 7.1160 to US$1.00 Income statement and cash flows RMB 6.6013 to US$1.00 Nine months ended September 30, 2021 Balance sheet, except for equity accounts RMB 6.4466 to US$1.00 Income statement and cash flows RMB 6.4714 to US$1.00 During the periods presented, HKD is pegged to the U.S. dollar within a narrow range. Income Taxes Income taxes are accounted for using an asset and liability approach which requires the recognition of income taxes payable or refundable for the current period and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. Deferred income taxes are determined based on the differences between the accounting basis and the tax basis of assets and liabilities and are measured using the currently enacted tax rates and laws. Deferred tax assets are reduced by a valuation allowance, if based on available evidence, it is considered that it is more likely than not that some portion of or all of the deferred tax assets will not be realized. In making such determination, the Company considers factors including future reversals of existing taxable temporary differences, future profitability, and tax planning strategies. If events were to occur in the future that would allow the Company to realize more of its deferred tax assets than the presently recorded net amount, an adjustment would be made to the deferred tax assets that would increase income for the period when those events occurred. If events were to occur in the future that would require the Company to realize less of its deferred tax assets than the presently recorded net amount, an adjustment would be made to the valuation allowance against deferred tax assets that would decrease income for the period when those events occurred. Significant management judgment is required in determining income tax expense and deferred tax assets and liabilities. The Company conducts business in the PRC and Hong Kong and 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 respective tax authorities. Uncertain Tax Positions Management reviews regularly the adequacy of the provisions for taxes as they relate to the Company’s income and transactions. In order to assess uncertain tax positions, the Company applies a more likely than not threshold and a two-step approach for tax position measurement and financial statement recognition. For the two-step approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon settlement. As of September 30, 2022 and December 31, 2021, the Company had not recorded any liability for uncertain tax positions. In subsequent periods, any interest and penalties related to uncertain tax positions will be recognized as a component of income tax expense. Net (loss) income per Share of Common Stock The Company has adopted ASC Topic 260, “Earnings per Share,” (“EPS”) which requires presentation of basic EPS on the face of the income statement for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation. In the accompanying financial statements, basic earnings (loss) per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Three months ended Nine months ended 2022 2021 2022 2021 Net (loss) income $ (31,999 ) $ 207,551 $ 625,024 $ 1,296,228 Weighted average number of common stock outstanding - basic and diluted 1,701,181,423 1,701,181,423 1,701,181,423 1,701,181,423 Net (loss) income per share - basic and diluted $ 0.00 * $ 0.00 * $ 0.00 * $ 0.00 * * Less than $0.01 per share The calculation of basic net (loss) income per share of common stock is based on the net (loss) income for the three and nine months ended September 30, 2022 and 2021 and the weighted average number of ordinary shares outstanding. For the three and nine months ended September 30, 2022 and 2021, the Company has no potentially dilutive securities, such as options or warrants, currently issued and outstanding. Segments The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. Management, including the chief operating decision maker, reviews operating results solely by monthly revenue of marketing consultation services and operating results of the Company and, as such, the Company has determined that the Company has one operating segment (provision of consulting, sourcing and marketing services, and digital training related services in China) as defined by ASC Topic 280 “Segment Reporting”. Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents. As of September 30, 2022 and December 31, 2021, $6,330,431 and $7,649,129 of the Company’s cash and cash equivalents, respectively were held at financial institutions and online payment platforms located in the PRC and Hong Kong that management believes to be of high credit quality. The Company has not experienced any losses on cash and cash equivalents to date. The Company does not require collateral or other securities to support financial instruments that are subject to credit risk. The Company operates principally in the PRC and Hong Kong and grants credit to its customers in these geographic regions. Although the PRC is economically stable, it is always possible that unanticipated events in foreign countries could disrupt the Company’s operations. Fair Value of Financial Instruments ASC Topic 820, Fair Value Measurement and Disclosures ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. Valuation of debt products depends upon a number of factors, including prevailing interest rates for like securities, expected volatility in future interest rates, and other relevant terms of the debt. Other factors that may be considered include the borrower’s ability to adequately service its debt, the fair market value of the borrower in relation to the face amount of its outstanding debt and the quality of collateral securing the Company’s debt investments. The fair value of these debt products classified as Level 2 are established by reference to the prices quoted by respective fund administrators. The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, accounts receivable, other receivables, loan to a related company, accounts payable and other payables, amounts due to a director and a shareholder and borrowings approximate their fair values because of the short maturity of these instruments or the rate of interest of these instruments approximate the market rate of interest. Comprehensive Income Comprehensive income is defined as the change in equity of a company during a period from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. Accumulated other comprehensive income includes cumulative foreign currency translation adjustment. | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with United States of America generally accepted accounting principles (“U.S. GAAP”). After the close of the year to which these financial statements relate, the Company experienced (and continues to experience) adverse impacts of novel coronavirus (COVID-19) and the related public health orders. In December 2021, there was a COVID-19 outbreak in Xian city, the PRC. Finally, the Company expects that the impact of the COVID-19 outbreak on the United States and world economies will continue to have a material adverse impact on the demand for the Company’s business. Because of the significant uncertainties surrounding the COVID-19 pandemic, the extent of the business interruption and the related financial impact cannot be reasonably estimated at this time. Use of Estimates The preparation of these financial statements in conformity with U.S. GAAP requires management of the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, costs and expenses, and related disclosures. On an ongoing basis, the Company evaluates its estimates based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Identified below are the accounting policies that reflect the Company’s most significant estimates and judgments, and those that the Company believes are the most critical to fully understanding and evaluating its consolidated financial statements. The COVID-19 pandemic has created and may continue to create significant uncertainty in macroeconomic conditions, which may cause further business slowdowns or shutdowns, depress demand for the Company’s business, and adversely impact its results of operations. During the year ended December 31, 2021, the Company faced increasing uncertainties around its estimates of revenue collectability and accounts receivable credit losses. The Company expects uncertainties around its key accounting estimates to continue to evolve depending on the duration and degree of impact associated with the COVID-19 pandemic. Its estimates may change as new events occur and additional information emerges, and such changes are recognized or disclosed in its consolidated financial statements. Recently Adopted Accounting Standards In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistent application among reporting entities. Upon adoption, the Company must apply certain aspects of this standard retrospectively for all periods presented while other aspects are applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The Company applied the new standard beginning January 1, 2021. The adoption of ASU 2019-12 did not have any impact on the Company’s consolidated financial statement presentation or disclosures. In August 2020, the FASB issued ASU No. 2020-06 (“ASU 2020-06”) “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40).” ASU 2020-06 reduces the number of accounting models for convertible debt instruments by eliminating the cash conversion and beneficial conversion models. As a result, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost as long as no other features require bifurcation and recognition as derivatives. For contracts in an entity’s own equity, the type of contracts primarily affected by this update are freestanding and embedded features that are accounted for as derivatives under the current guidance due to a failure to meet the settlement conditions of the derivative scope exception. This update simplifies the related settlement assessment by removing the requirements to (i) consider whether the contract would be settled in registered shares, (ii) consider whether collateral is required to be posted, and (iii) assess shareholder rights. ASU 2020-06 is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, and only if adopted as of the beginning of such fiscal year. The Company adopted ASU 2020-06 effective January 1, 2021. The adoption of ASU 2020-06 did not have any impact on the Company’s consolidated financial statement presentation or disclosures. The adoption of ASU 2020-06 did not have any impact on the Company’s consolidated financial statement presentation or disclosures. Recently Issued Accounting Standards In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326) (“ASU 2016-13”), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. ASU 2016-13 replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. ASU 2016-13 is to be adopted on a modified retrospective basis. As a smaller reporting company, ASU 2016-13 will be effective for the Company for interim and annual reporting periods beginning after December 15, 2022. The Company is currently evaluating the impact that the adoption of ASU 2016-13 will have on its consolidated financial statement presentations and disclosures. In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt — Modifications and Extinguishments (Subtopic 470-50), Compensation — Stock Compensation (Topic 718), and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (“ASU 2021-04”). ASU 2021-04 provides guidance as to how an issuer should account for a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option (i.e., a warrant) that remains classified after modification or exchange as an exchange of the original instrument for a new instrument. An issuer should measure the effect of a modification or exchange as the difference between the fair value of the modified or exchanged warrant and the fair value of that warrant immediately before modification or exchange and then apply a recognition model that comprises four categories of transactions and the corresponding accounting treatment for each category (equity issuance, debt origination, debt modification, and modifications unrelated to equity issuance and debt origination or modification). ASU 2021-04 is effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. An entity should apply the guidance provided in ASU 2021-04 prospectively to modifications or exchanges occurring on or after the effective date. Early adoption is permitted for all entities, including adoption in an interim period. If an entity elects to early adopt ASU 2021-04 in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes that interim period. The adoption of ASU 2021-04 is not expected to have any impact on the Company’s consolidated financial statement presentation or disclosures. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. This update requires certain annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. This update is effective for annual periods beginning after December 15, 2021, and early application is permitted. This guidance should be applied either prospectively to all transactions that are reflected in financial statements at the date of initial application and new transactions that are entered into after the date of initial application or retrospectively to those transactions. The Company does not expect the impact of this guidance to have a material impact on the Company’s consolidated financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption. Basis of Consolidation and Noncontrolling Interests The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation. A subsidiary is an entity in which (i) the Company directly or indirectly controls more than 50% of the voting power; or (ii) the Company has the power to appoint or remove the majority of the members of the board of directors or to cast a majority of votes at the meeting of the board of directors or to govern the financial and operating policies of the investee pursuant to a statute or under an agreement among the shareholders or equity holders. Leases The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease liabilities are recognized based on the present value of the remaining lease payments, discounted using the discount rate for the lease at the commencement date. As the rate implicit in the lease is not readily determinable for the operating lease, the Company generally uses an incremental borrowing rate based on information available at the commencement date to determine the present value of future lease payments. Operating lease right-of-use (“ROU assets”) assets represent the Company’s right to control the use of an identified asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets are generally recognized based on the amount of the initial measurement of the lease liability. Lease expense is recognized on a straight-line basis over the lease term. The Company elected the package of practical expedients permitted under the transition guidance to combine the lease and non-lease components as a single lease component for operating leases associated with the Company’s office space lease, and to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term. ROU assets are reviewed for impairment when indicators of impairment are present. ROU assets from operating and finance leases are subject to the impairment guidance in ASC 360, Property, Plant, and Equipment, as ROU assets are long-lived nonfinancial assets. ROU assets are tested for impairment individually or as part of an asset group if the cash flows related to the ROU asset are not independent from the cash flows of other assets and liabilities. An asset group is the unit of accounting for long-lived assets to be held and used, which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. The Company recognized no impairment of ROU assets as of December 31, 2021 and December 31, 2020. The operating lease is included in operating lease right-of-use assets, operating lease liabilities-current and operating lease liabilities-non-current on the Company’s consolidated balance sheets. Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers cash, money market funds, investments in interest bearing demand deposit accounts, time deposits and all highly liquid investments placed with banks or other financial institutions with an original maturity of three months or less to be cash equivalents. As of December 31, 2021, cash held in accounts managed by online payment platforms such as Alipay and WeChat Pay amounted to $161,188 (as at December 31, 2020: Nil Accounts receivable Accounts receivable are recorded at the invoiced amount, net of allowances for doubtful accounts and sales returns. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company determines the allowance based on historical write-off experience, customer specific facts and economic conditions. Outstanding accounts receivable balances are reviewed individually for collectability. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Debt products All debt products are carried at fair value at the end of each reporting period. Changes in the carrying amount of debt products relating to interest income calculated using the effective interest method are recognized in consolidated statement of profit or loss. Other changes in the carrying amount of these products, net of any related tax effects, are excluded form earnings and are included in other comprehensive income or loss and reported as a separate component of stockholders’ equity or deficit until realized. Realized gains and losses and declines in value judged to be other than temporary, if any, on debt products are included in other income (expense), net. The Company regularly reviews all of its investments for other-than-temporary declines in estimated fair value. Its review includes the consideration of the cause of the impairment, including the creditworthiness of the security issuers, the number of securities in an unrealized loss position, the severity and duration of the unrealized losses, whether the Company has the intent to sell the securities and whether it is more likely than not that the Company will be required to sell the securities before the recovery of their amortized cost basis. When the Company determines that the decline in estimated fair value of an investment is below the amortized cost basis and the decline is other-than-temporary, it reduces the carrying value of the security and record a loss for the amount of such decline. The Company has not recorded any declines in value judged to be other than temporary on its investments in debt securities. Plant and equipment Plant and equipment are recorded at cost less accumulated depreciation and accumulated impairment. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Estimated Motor vehicle 4 - 5 The gain or loss on the disposal of plant and equipment is the difference between the net sales proceeds and the lower of the carrying value or fair value less cost to sell the relevant assets and is recognized in general and administrative expenses in the consolidated statements of comprehensive income. Impairment of Long-lived Assets In accordance with ASC 360-10-35, we review the carrying values of long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The Company assesses the recover-ability of the assets based on the non-discounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated discounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. No impairment has been recorded by the Company for the years ended December 31, 2021 and 2020. Revenue Recognition The Company recognizes revenues when its customer obtains control of promised goods or services, in an amount that reflects the consideration which it expects to receive in exchange for those goods. The Company recognizes revenues following the five step model prescribed under ASU No. 2014-09: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) we satisfy the performance obligation. The Company evaluates if it is a principal or an agent in a transaction to determine whether revenue should be recorded on a gross or net basis. The Company is acting as the principal if it obtains control over the goods and services before they are transferred to customers. When the Company is primarily obligated in a transaction, is generally subject to inventory risk, has latitude in establishing prices, or has several but not all of these indicators, the Company acts as the principal and revenue is recorded on a gross basis. When the Company is not primarily obligated in a transaction, does not generally bear the inventory risk and does not have the ability to establish the price, the Company acts as the agent and revenue is recorded on a net basis The Company derives its revenue primarily from net transaction services, including consultancy services, sourcing and marketing services, and digital training related services. Consultancy services The Company generates the majority of its revenues by providing consulting services to its clients. Most of its consulting service contracts are based on one of the following types of arrangements: Performance-based arrangements Fixed-fee arrangements Sourcing and marketing services The Company provides agency-based sourcing and digital marketing services to connect marketplace operators and merchants. Most of its sourcing and marketing services are based on one of the following types of arrangements: Agency-based sourcing services Digital marketing services The post-sale services, goods return and other kinds of product issue are responsibilities of the merchants. Upon successful delivery to ultimate customers by the merchants, there is no unfulfilled obligation that could affect the marketplace operators’ and merchants’ acceptance of the services provided. The acceptance provisions have lapsed, or the Company has objective evidence that all criteria for acceptance have been satisfied. Digital training related services Fixed-fee digital training related services The Company derived services revenues of $4,152,617 and $8,592,970 for the years ended December 31, 2021 and 2020, respectively, from provision of certain consultancy services and sourcing and marketing services through the program application (“App”) platform managed by a related company, Xi’an Chuangyetianxia Network Technology Co., Ltd. (“Xian CNT”). The Company CEO, Mr. Tao, has significant influence over Xian CNT. During the years ended December 31, 2021 and 2020, revenues generated from Xian CNT are disclosed in note 5 of the consolidated financial statements. Practical expedients and exemption The Company has not occurred any costs to obtain contracts, and does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. Other service income is earned when services have been rendered. Revenue by major service line 2021 2020 Consultancy services 4,237,261 8,984,967 Sourcing and marketing services 223,620 202,056 Digital training related services 1,176,515 - $ 5,637,396 $ 9,187,023 Revenue by recognition over time vs point in time 2021 2020 Revenue recognized at a point in time 5,637,396 9,100,334 Revenue recognized over time - 86,689 $ 5,637,396 $ 9,187,023 Revenue recorded on a gross vs net basis 2021 2020 Revenue recorded on a gross basis 5,413,776 8,984,967 Revenue recorded on a net basis 223,620 202,056 $ 5,637,396 $ 9,187,023 Contract liabilities The Company’s contract liabilities consist of deferred revenue associated with consultancy fees and provision of fixed-fee training related services. The table below presents the activity of the deferred consultancy services revenue during the years ended December 31, 2021 and 2020, respectively: 2021 2020 Balance at beginning of year $ - $ 87,136 Service fees collected 1,377,349 - Service revenue earned (1,176,515 ) (86,689 ) Exchange realignment 15,308 (447 ) Balance at end of year $ 216,142 $ - Cost of revenue Cost of revenues consists primarily of employee compensation, service fees, agency fees, and the related IT expenses, which are directly attributable to the revenues Employee benefits Full time employees of the Company in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to the employees. Chinese labor regulations require that the PRC subsidiary of the Company make contributions to the government for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Company has no legal obligation for the benefits beyond the contributions made. Total amounts of such employee benefit expenses, which were expensed as incurred, were approximately $124,386 (including prior years housing funds of $11,014) and $4,911 for the years ended December 31, 2021 and 2020, respectively. Foreign Currency and Foreign Currency Translation The reporting currency of the Company is the United States dollar (“US dollar”). The financial records of the Company’s PRC operating subsidiaries are maintained in their local currency, the Renminbi (“RMB”), which is the functional currency. The financial records of the Company’s Hong Kong operating subsidiary are maintained in its local currency, the Hong Kong Dollar (“HKD”), which is the functional currency. Assets and liabilities of the subsidiaries are translated into the reporting currency at the exchange rates at the balance sheet date, equity accounts are translated at historical exchange rates, and income and expense items are translated using the average rate for the year. The translation adjustments are recorded in accumulated other comprehensive loss under shareholders’ equity. Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated into the functional currencies at the prevailing rates of exchange at the balance sheet date. Nonmonetary assets and liabilities are remeasured into the applicable functional currencies at historical exchange rates. Transactions in currencies other than the applicable functional currencies during the year are converted into the functional currencies at the applicable rates of exchange prevailing at the transaction dates. Transaction gains and losses are recognized in the consolidated statements of operations. RMB is not a fully convertible currency. All foreign exchange transactions involving RMB must take place either through the People’s Bank of China (the “PBOC”) or other institutions authorized to buy and sell foreign exchange. The exchange rates adopted for the foreign exchange transactions are the rates of exchange quoted by the PBOC, which are determined largely by supply and demand. Translation of amounts from RMB into US dollars has been made at the following exchange rates for the respective periods: Year ended December 31, 2020 Balance sheet, except for equity accounts RMB 6.5401 to US$1.00 Income statement and cash flows RMB 6.9021 to US$1.00 Year ended December 31, 2021 Balance sheet, except for equity accounts RMB 6.3559 to US$1.00 Income statement and cash flows RMB 6.4519 to US$1.00 During the years presented, HKD is pegged to the U.S. dollar within a narrow range. Income Taxes Income taxes are accounted for using an asset and liability approach which requires the recognition of income taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. Deferred income taxes are determined based on the differences between the accounting basis and the tax basis of assets and liabilities and are measured using the currently enacted tax rates and laws. Deferred tax assets are reduced by a valuation allowance, if based on available evidence, it is considered that it is more likely than not that some portion of or all of the deferred tax assets will not be realized. In making such determination, the Company considers factors including future reversals of existing taxable temporary differences, future profitability, and tax planning strategies. If events were to occur in the future that would allow the Company to realize more of its deferred tax assets than the presently recorded net amount, an adjustment would be made to the deferred tax assets that would increase income for the period when those events occurred. If events were to occur in the future that would require the Company to realize less of its deferred tax assets than the presently recorded net amount, an adjustment would be made to the valuation allowance against deferred tax assets that would decrease income for the period when those events occurred. Significant management judgment is required in determining income tax expense and deferred tax assets and liabilities. The Company conducts business in the PRC and Hong Kong and 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 respective tax authorities. Uncertain Tax Positions Management reviews regularly the adequacy of the provisions for taxes as they relate to the Company’s income and transactions. In order to assess uncertain tax positions, the Company applies a more likely than not threshold and a two-step approach for tax position measurement and financial statement recognition. For the two-step approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon settlement. As of December 31, 2021 and 2020, the Company had not recorded any liability for uncertain tax positions. In subsequent periods, any interest and penalties related to uncertain tax positions will be recognized as a component of income tax expense. Net income per Share of Common Stock The Company has adopted ASC Topic 260, “Earnings per Share,” (“EPS”) which requires presentation of basic EPS on the face of the income statement for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation. In the accompanying financial statements, basic earnings (loss) per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the year. 2021 2020 Net income $ 1,086,400 $ 4,968,070 Weighted average number of common stock outstanding - basic and diluted 1,701,181,423 1,701,181,423 Net income per share - basic and diluted $ 0.00 * $ 0.00 * * Less than $0.01 per share The calculation of basic net income per share of common stock is based on the net income for the years ended December 31, 2021 and 2020 and the weighted average number of ordinary shares outstanding. For the years ended December 31, 2021 and 2020, the Company has no potentially dilutive securities, such as options or warrants, currently issued and outstanding. Segments The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. Management, including the chief operating decision maker, reviews operating results solely by monthly revenue of marketing consultation services and operating results of the Company and, as such, the Company has determined that the Company has one operating segment (provision of consulting, sourcing and marketing services, and digital training related services in China) as defined by ASC Topic 280 “Segment Reporting”. Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents. As of December 31, 2021 and 2020, $7,649,129 and $3,846,470 of the Company’s cash and cash equivalents, respectively were held at financial institutions and online payment platforms located in the PRC and Hong Kong that management believes to be of high credit quality. The Company has not experienced any losses on cash and cash equivalents to date. The Company does not require collateral or other securities to support financial instruments that are subject to credit risk. The Company operates principally in the PRC and Hong Kong and grants credit to its customers in these geographic regions. Although the PRC is economically stable, it is always possible that unanticipated events in foreign countries could disrupt the Company’s operations. Fair Value of Financial Instruments ASC Topic 820, Fair Value Measurement and Disclosures ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. Valuation of debt products depends upon a number of factors, including prevailing interest rates for like securities, expected volatility in future interest rates, and other relevant terms of the debt. Other factors that may be considered include the borrower’s ability to adequately service its debt, the fair market value of the borrower in relation to the face amount of its outstanding debt and the quality of collateral securing the Company’s debt investments. The fair value of these debt products classified as Level 2 are established by reference to the prices quoted by respective fund administrators. The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, accounts receivable, other receivables, loan to a related company, accounts payable and other payables, amounts due to a director and a shareholder and borrowings approximate their fair values because of the short maturity of these instruments or the rate of interest of these instruments approximate the market rate of interest. Comprehensive Income Comprehensive income is defined as the change in equity of a company during a period from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. Accumulated other comprehensive income includes cumulative foreign currency translation adjustment. |
Debt Products
Debt Products | 12 Months Ended |
Dec. 31, 2021 | |
Debt Products [Abstract] | |
DEBT PRODUCTS | NOTE 3 – DEBT PRODUCTS 2021 2020 Debt products issued by bank, at fair value $ - $ 3,058,041 Debt products include financial products issued and managed by banks in the PRC. The fair value of these debt products classified as Level 2 are established by reference to the prices quoted by the bank. As at December 31, 2020, the debt products have no maturity date, and bear variable interest rate, currently at 2.35% per annum. No fair value change has been recognized for the year ended December 31, 2020. The debt products have been subsequently redeemed on February 2, 2021. During the year ended December 31, 2021, the Company further acquired debt products of $2,789,855, which had no maturity date, and bear variable interest rate with a range from 2.45% to 3.02% per annum. All these newly acquired debt products had been redeemed on July 15, 2021 with a gain of $2,059. |
Plant and Equipment
Plant and Equipment | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
PLANT AND EQUIPMENT | NOTE 3 – PLANT AND EQUIPMENT Plant and equipment as of September 30, 2022 and December 31, 2021 are summarized below: September 30, December 31, Motor vehicle $ 357,927 $ 400,732 Office equipment 9,041 - 366,968 400,732 Less: Accumulated depreciation (164,537 ) (119,284 ) Plant and equipment, net $ 202,431 $ 281,448 Depreciation expenses, classified as operating expenses, were $20,194 and $20,743 for the three months ended September 30, 2022 and 2021, respectively; and $62,516 and $62,222 for the nine months ended September 30, 2022 and 2021, respectively. | NOTE 4 – PLANT AND EQUIPMENT Plant and equipment as of December 31, 2021 and December 31, 2020 are summarized below: 2021 2020 Motor vehicle $ 400,732 $ 389,443 Less: Accumulated depreciation (119,284 ) (33,834 ) Plant and equipment, net $ 281,448 $ 355,609 Depreciation expenses, classified as operating expenses, were $83,212 and $32,059 for the years ended December 31, 2021 and 2020, respectively. |
Related Party Transactions
Related Party Transactions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Related Party Transactions [Abstract] | ||
RELATED PARTY TRANSACTIONS | NOTE 4 – RELATED PARTY TRANSACTIONS The following is the list of the related parties with which the Company had transactions for the three and nine months ended September 30, 2022 and 2021: (a) Baiyin Wujinxia Cultural Communication Co., Ltd. (“Baiyin Wujinxia”) – a company incorporated in the PRC, the Company CEO, Mr Tao held 60% equity interest from October 31, 2019 to January 25, 2021 and on January 26, 2021 fully transferred to Ms. Hanye Chang, spouse of Mr. Guolin Tao. (b) Xian Yuanchuang Tribe Technology Co., Ltd. (“Yuanchuang Tribe”)– a company incorporated in the PRC, Ms. Hanyu Chang, spouse of Mr. Guolin Tao, indirectly held 29.99% equity interest from November 29, 2019 to February 10, 2021. (c) Xian Yuanchuang Federation Information Technology Co., Ltd. (“Yuanchuang Federation”)- a company incorporated in the PRC, Yuanchuang Tribe held 100% equity interest December 30, 2019 to September 10, 2021. Related party transaction Three months ended Nine months ended 2022 2021 2022 2021 Interest income Baiyin Wujinxia $ - $ - $ - $ 5,777 On November 1, 2019, the Company entered into a loan agreement with Baiyin Wujinxia to loan a total amount of $305,804 (RMB2,000,000) for a period from November 1, 2019 to September 30, 2021. The loan was unsecured and bears fixed interest at 4.75% per annum. The outstanding amount (including loan interest) of $186,796 as at December 31, 2020 was fully repaid on June 18, 2021 and the loan agreement was early terminated on the same date. Interest income was charged at an interest rate agreed by both parties in accordance with a loan agreement. Related party balances September 30, December 31, Amount due to a director - Mr. Guolin Tao $ 167,935 $ 171,443 Accounts payable - Yuanchuang Tribe $ - $ 16,135 - Yuanchuang Federation - 21,390 The amount due to director as of September 30, 2022 and December 31, 2021 is unsecured, non-interest bearing and repayable on demand. On June 1, 2021, the Company entered into IT consultation agreements with Yuanchuang Tribe and Yuanchuang Federation, respectively. The outstanding amounts as at December 31, 2021 are subsequently settled in January 2022. | NOTE 5 – RELATED PARTY TRANSACTIONS The following is the list of the related parties with which the Company had transactions for the years ended December 31, 2021 and 2020: (a) Xian CNT – a company incorporated in the PRC, Xian. As of December 31, 2021, the shareholders of Xian CNT are 90% owned by certain family members of Mr. Guolin Tao, among them - 45% is owned by the sister of Mr. Tao, Ms. Tao Zhiyan and 45% is owned by the brother-in-law of Mr. Guolin Tao, Mr. Pan Chang. (b) Baiyin Wujinxia Cultural Communication Co., Ltd. (“Baiyin Wujinxia”) – a company incorporated in the PRC, the Company CEO, Mr Tao held 60% equity interest from October 31, 2019 to January 25, 2021 and on January 26, 2021 fully transferred to Ms. Hanye Chang, spouse of Mr. Guolin Tao. (c) Ms. Hanye Chang, spouse of Mr. Guolin Tao. (d) Mr. Yong Chang, father in law of Mr. Guolin Tao (e) Mr. Jianyong Li, a director of the Company. (f) New Finance Consultants Limited, a shareholder of the Company, holding 8.3% equity interest as of December 31, 2021 and 2020. (g) Xian Yuanchuang Tribe Technology Co., Ltd. (“Yuanchuang Tribe”)– a company incorporated in the PRC, Ms. Hanyu Chang, spouse of Mr. Guolin Tao, indirectly held 29.99% equity interest from November 29, 2019 to February 10, 2021. (h) Xian Yuanchuang Federation Information Technology Co., Ltd. (“Yuanchuang Federation”)- a company incorporated in the PRC, Yuanchuang Tribe held 100% equity interest December 30, 2019 to September 10, 2021. Related party transaction 2021 2020 Sourcing and marketing services income generated from - Xian CNT $ - $ 49,259 Purchase of motor vehicles from - Ms. Hanye Chang - 86,931 - Mr. Yong Chang - 45,639 - Mr. Jianyong Li - 28,977 Interest income - Baiyin Wujinxia 5,794 3,888 IT expenses - Yuanchuang Tribe 60,718 - - Yuanchuang Federation 86,718 - Sourcing and marketing income were received by the Company at fees agreed by both parties in accordance with the relevant agreements. Interest income was charged at an interest rate agreed by both parties in accordance with a loan agreement. IT expenses were charged at fees agreed by both parties in accordance with the relevant services agreements. Related party balances 2021 2020 Loan to a related company - Baiyin Wujinxia $ - $ 186,796 Amount due to a director - Mr. Guolin Tao $ 171,443 $ 51,309 Amount due to a shareholder - New Finance Consultants Limited $ - $ 53,000 Accounts payable - Yuanchuang Tribe $ 16,135 $ - - Yuanchuang Federation 21,390 - On November 1, 2019, the Company entered into a loan agreement with Baiyin Wujinxia to loan a total amount of $305,804 (RMB2,000,000) for a period from November 1, 2019 to September 30, 2021. The loan is unsecured and bears fixed interest at 4.75% per annum. The outstanding amount (including loan interest) as at December 31, 2020 was fully repaid on June 18, 2021 and the loan agreement was early terminated on the same date. The amounts due to director/shareholder as of December 31, 2021 and 2020 are unsecured, non-interest bearing and repayable on demand. On June 1, 2021, the Company entered into IT consultation agreements with Yuanchuang Tribe and Yuanchuang Federation, respectively. The outstanding amounts as at December 31, 2021 are subsequently settled in January 2022. |
Accounts Receivable, Net
Accounts Receivable, Net | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Accounts Receivable, Net [Abstract] | ||
ACCOUNTS RECEIVABLE, NET | NOTE 5 – ACCOUNTS RECEIVABLE, NET Accounts receivable as of September 30, 2022 and December 31, 2021: September 30, December 31, Account receivables $ 287,436 $ 67,940 Less: Allowance for doubtful accounts - - $ 287,436 $ 67,940 | NOTE 6 – ACCOUNTS RECEIVABLE, NET Accounts receivable as of December 31, 2021 and 2020: 2021 2020 Account receivables $ 67,940 $ 202,183 Less: Allowance for doubtful accounts - - $ 67,940 $ 202,183 |
Other Receivables and Prepaymen
Other Receivables and Prepayments | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | ||
OTHER RECEIVABLES AND PREPAYMENTS | NOTE 6 – OTHER RECEIVABLES AND PREPAYMENTS Other receivables and prepayments consisted of the following as of September 30, 2022 and December 31, 2021: September 30, December 31, Deposits and other receivables $ 25,297 $ 18,430 Prepayments 15,771 37,495 $ 41,068 $ 55,925 | NOTE 7 – OTHER RECEIVABLES AND PREPAYMENTS Other receivables and prepayments consisted of the following as of December 31, 2021 and December 31, 2020: 2021 2020 Deposits and other receivables $ 18,430 $ 19,027 Prepayments 37,495 31,279 $ 55,925 $ 50,306 |
Loan Receivables
Loan Receivables | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Loan Receivables [Abstract] | ||
LOAN RECEIVABLES | NOTE 7 – LOAN RECEIVABLES On September 29, 2022, the Company has provided loans of $983,699 to two independent vendors of the Company’s consultancy business. The loans were interest-bearing at 7% per annum, repayable on October 28, 2022 and secured by the personal guarantee of these customers. On October 18, 2022, the borrowers fully repaid the loan principal and interest. On February 8, 2021, the Company has provided a $500,000 loan to an independent customer of the Company’s consultancy business. The loan was interest-bearing at 10% per annum, repayable on February 7, 2022 and secured by the corporate guarantee of the customer. On August 5, 2021, the customer fully repaid the loan principal and interest. Loan interest income were $0 and $4,093 for the three months ended September 30, 2022 and 2021, respectively; and $0 and $23,678 for the nine months ended September 30, 2022 and 2021, respectively. | NOTE 8 – LOAN RECEIVABLES On February 8, 2021, the Company has provided a $500,000 loan to an independent customer of the Company’s consultancy business. The loan was interest-bearing at 10% per annum, repayable on February 7, 2022 and secured by the corporate guarantee of the customer. On August 5, 2021, the customer fully repaid the loan principal and interest. Loan interest income was $23,660 for the year ended December 31, 2021. |
Other payables and accrued liab
Other payables and accrued liabilities | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Disclosure Text Block Supplement [Abstract] | ||
OTHER PAYABLES AND ACCRUED LIABILITIES | NOTE 8 –OTHER PAYABLES AND ACCRUED LIABILITIES Other payables and accrued liabilities and consisted of the following as of September 30, 2022 and December 31, 2021: September 30, December 31, Other payables $ 84,350 $ 83,494 Salary payable 64,757 105,294 Accrued audit fees 25,000 130,000 Other accrued expenses 51,012 83,370 $ 225,119 $ 402,158 | NOTE 9 – ACCRUED LIABILITIES AND OTHER PAYABLES Accrued liabilities and other payables consisted of the following as of December 31, 2021 and 2020: 2021 2020 Other payables 83,494 110,599 Salary payable 105,294 229,010 Accrued audit fees 130,000 221,000 Other accrued expenses 83,370 57,899 $ 402,158 $ 618,508 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2021 | |
Subordinated Borrowings [Abstract] | |
BORROWINGS | NOTE 10 – BORROWINGS On April 20, 2020, the Company borrowed a loan of $128,927 (HK$1,000,000) from an unrelated individual. The loan was interest-free, unsecured, and repayable on April 2021. The Company repaid the borrowing on February 2, 2021. |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2021 | |
Common Stock [Abstract] | |
COMMON STOCK | NOTE 11 – COMMON STOCK The Company was incorporated on April 21, 1999 with an authorized share capital of 25,000,000 common stock with a par value of $0.001 per share. On March 5, 2019, the total number of authorized shares were increased to 1,800,000,000 common stock with a par value of $0.0001 per share. |
Statutory Reserves
Statutory Reserves | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Insurance [Abstract] | ||
STATUTORY RESERVES | NOTE 9 – STATUTORY RESERVES As stipulated by the relevant laws and regulations in the PRC, company established in the PRC (the “PRC subsidiary”) is required to maintain a statutory reserve made out of profit for the year based on the PRC subsidiary’ statutory financial statements which are prepared in accordance with the accounting principles generally accepted in the PRC. The amount and allocation basis are decided by the director of the PRC subsidiary annually and is not to be less than 10% of the profit for the year of the PRC subsidiary. The aggregate amount allocated to the reserves will be limited to 50% of registered capital for certain subsidiaries. Statutory reserve can be used for expanding the capital base of the PRC subsidiary by means of capitalization issue. In addition, as a result of the relevant PRC laws and regulations which impose restriction on distribution or transfer of assets out of the PRC statutory reserve, $65,911 representing the PRC statutory reserve of the subsidiary as of September 30, 2022 and December 31, 2021, are also considered under restriction for distribution. | NOTE 12 – STATUTORY RESERVES As stipulated by the relevant laws and regulations in the PRC, company established in the PRC (the “PRC subsidiary”) is required to maintain a statutory reserve made out of profit for the year based on the PRC subsidiary’ statutory financial statements which are prepared in accordance with the accounting principles generally accepted in the PRC. The amount and allocation basis are decided by the director of the PRC subsidiary annually and is not to be less than 10% of the profit for the year of the PRC subsidiary. The aggregate amount allocated to the reserves will be limited to 50% of registered capital for certain subsidiaries. Statutory reserve can be used for expanding the capital base of the PRC subsidiary by means of capitalization issue. In addition, as a result of the relevant PRC laws and regulations which impose restriction on distribution or transfer of assets out of the PRC statutory reserve, $65,911 representing the PRC statutory reserve of the subsidiary as of December 31, 2021 and 2020, are also considered under restriction for distribution. |
Income Taxes
Income Taxes | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
INCOME TAXES | NOTE 10 – INCOME TAXES (a) The local (United States) and foreign components of income (loss) before income taxes were comprised of the following: Three months ended Nine months ended 2022 2021 2022 2021 Tax jurisdictions from: - Local $ (228,524 ) $ (156,168 ) $ (481,680 ) $ (344,756 ) - Foreign, representing: HK (175,426 ) (3,278 ) (195,339 ) (26,845 ) PRC 507,735 568,786 1,897,199 2,539,892 Income before income taxes $ 103,785 $ 409,340 $ 1,220,180 $ 2,168,291 Income is subject to tax in the various countries in which the Company operates. The Company is incorporated in the State of Nevada and is subject to the U.S. federal tax and state tax. The Tax Cuts and Jobs Act of (“TCJ Act”) was signed into law in December 2017, and among its many provisions, it imposed a mandatory one-time transition tax on undistributed international earnings and reduced the U.S. corporate income tax rate to 21%, effective January 1, 2019. No provision for income taxes in the United States has been made as the Company had no taxable income for the three and nine months ended September 30, 2022 and 2021. The Company mainly conducts its operating business through its subsidiaries in China, including Hong Kong. The subsidiary incorporated in Hong Kong is subject to Hong Kong taxation on income derived from their activities conducted in Hong Kong. Hong Kong Profits Tax has been calculated at 16.5% of the estimated assessable profit for the three and nine months ended September 30, 2022 and 2021. The provision for Hong Kong Profits Tax is calculated at 8.25% on assessable profits up to $281,057 (HK$2,000,000) for the three and nine months ended September 30, 2022 and 2021 and subject to a waiver of 100% of the profits tax under a cap of $1,405 (HK$10,000) for the three and nine months ended September 30, 2022 and 2021, respectively. The subsidiary incorporated in mainland China is governed by the Income Tax Law of the PRC concerning foreign invested enterprises and foreign enterprises and various local income tax laws (the Income Tax Laws), and are subject to 25% tax rate throughout the periods presented. Under the PRC EIT law, withholding income tax, normally at a rate of 10%, is imposed on dividend paid by PRC entities out of its profits earned since January 1, 2008 to its overseas investors (including Hong Kong investors). Deferred taxation on the undistributed profits of the PRC subsidiaries has been provided in the condensed consolidated financial statements to the extent that in the opinion of the directors such profits will be distributed in the foreseeable future. Total undistributed profits of the Company’s PRC subsidiary at September 30, 2022 and December 31, 2021 were $3,123,352 and $3,579,288, respectively. At September 30, 2022 and December 31, 2021, the Company recognized deferred tax liabilities of $312,335 and $357,929, respectively, in respect of the undistributed profits. Income tax (credit) expense consists of the following: Three months ended Nine months ended 2022 2021 2022 2021 Current tax: Hong Kong - (841 ) - (841 ) China $ 127,727 $ 154,923 $ 463,206 $ 676,433 Deferred tax Hong Kong 8,641 55,683 133,454 206,359 China (584 ) (7,976 ) (1,504 ) (9,888 ) Total $ 135,784 $ 201,789 $ 595,156 $ 872,063 The provision for income taxes consisted of the following: Three months ended Nine months ended 2022 2021 2022 2021 Income before income tax $ 103,785 $ 409,340 $ 1,220,180 $ 2,168,291 Statutory income tax rate 21 % 21 % 21 % 21 % Income tax credit computed at statutory income rate 21,795 85,962 256,238 455,342 Reconciling items: Non-deductible expenses 75,971 37,816 134,157 106,185 Rate differential in different tax jurisdictions 28,203 23,169 84,678 105,018 Deferred tax provided on dividends withholding tax of PRC subsidiaries 9,561 55,683 133,454 206,359 Over-provision in prior year 254 (841 ) (13,371 ) (841 ) Income tax (credit) expense $ 135,784 $ 201,789 $ 595,156 $ 872,063 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of September 30, 2022 and December 31, 2021 are presented below: September 30, December 31, Deferred tax assets: Accelerated depreciation $ 2,984 $ 1,778 Deductible temporarily difference arising from other payable 12,151 13,605 Less: Net off with deferred tax liabilities for financial reporting purposes (15,135 ) (15,383 ) Net total deferred tax assets $ - $ - Deferred tax liabilities: Undistributed profits of a PRC subsidiary $ 312,335 $ 357,929 Less: Net off with deferred tax assets for financial reporting purposes (15,135 ) (15,383 ) Net total deferred tax liabilities $ 297,200 $ 342,546 | NOTE 13 – INCOME TAXES (a) The local (United States) and foreign components of income (loss) before income taxes were comprised of the following: 2021 2020 Tax jurisdictions from: - Local (791,930 ) (365,055 ) - Foreign, representing: HK (53,508 ) 45,181 PRC 2,920,754 7,792,789 Income before income taxes $ 2,075,316 $ 7,472,915 Income is subject to tax in the various countries in which the Company operates. The Company is incorporated in the State of Nevada and is subject to the U.S. federal tax and state tax. The Tax Cuts and Jobs Act of (“TCJ Act”) was signed into law in December 2017, and among its many provisions, it imposed a mandatory one-time transition tax on undistributed international earnings and reduced the U.S. corporate income tax rate to 21%, effective January 1, 2019. No provision for income taxes in the United States has been made as the Company had no taxable income for the years ended December 31, 2021 and 2020. The Company mainly conducts its operating business through its subsidiaries in China, including Hong Kong. The subsidiary incorporated in Hong Kong is subject to Hong Kong taxation on income derived from their activities conducted in Hong Kong. Hong Kong Profits Tax has been calculated at 16.5% of the estimated assessable profit for the years ended December 31, 2021 and 2020. The provision for Hong Kong Profits Tax is calculated at 8.25% on assessable profits up to $257,313 (HK$2,000,000) for the years ended December 31, 2021 and 2020 and subject to a waiver of 100% of the profits tax under a cap of $1,287 (HK$10,000) for the years ended December 31, 2021 and 2020, respectively. The subsidiary incorporated in mainland China is governed by the Income Tax Law of the PRC concerning foreign invested enterprises and foreign enterprises and various local income tax laws (the Income Tax Laws), and are subject to 25% tax rate throughout the periods presented. Under the PRC EIT law, withholding income tax, normally at a rate of 10%, is imposed on dividend paid by PRC entities out of its profits earned since January 1, 2008 to its overseas investors (including Hong Kong investors). Deferred taxation on the undistributed profits of the PRC subsidiaries has been provided in the consolidated financial statements to the extent that in the opinion of the directors such profits will be distributed in the foreseeable future. Total undistributed profits of the Company’s PRC subsidiary at December 31, 2021 and 2020 were $3,579,288 and $6,269,752, respectively. At December 31, 2021 and 2020, the Company recognized deferred tax liabilities of $357,929 and $626,975, respectively, in respect of the undistributed profits. Income tax expense consists of the following: 2021 2020 Current tax: Hong Kong (840 ) 2,433 China 768,717 1,950,407 Deferred tax China 221,039 552,005 Total $ 988,916 $ 2,504,845 The provision for income taxes consisted of the following: 2021 2020 Income before income tax 2,075,316 7,472,915 Statutory income tax rate 21 % 21 % Income tax credit computed at statutory income rate 435,816 1,569,312 Reconciling items: Non-deductible expenses (income), net 186,907 78,866 Effect of tax reliefs granted to Hong Kong subsidiary - (1,289 ) Under-provision in prior period 11,198 - Rate differential in different tax jurisdictions 119,238 305,951 Deferred tax provided on dividends withholding tax of PRC subsidiaries 235,757 552,005 Income tax expense $ 988,916 $ 2,504,845 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2021 and 2020 are presented below: 2021 2020 Deferred tax assets: Accelerated depreciation $ 1,778 $ 429 Deductible temporarily difference arising from other payable 13,605 - Less: Net off with deferred tax liabilities for financial reporting purposes (15,383 ) (429 ) Net total deferred tax assets - - Deferred tax liabilities: Undistributed profits of a PRC subsidiary 357,929 626,975 Less: Net off with deferred tax assets for financial reporting purposes (15,383 ) (429 ) Net total deferred tax liabilities $ 342,546 $ 626,546 |
Lease
Lease | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Lease [Abstract] | ||
LEASE | NOTE 11 – LEASE On June 10, 2021, the Company entered into a lease agreement for office space in Xian, the PRC with a non-cancellable lease term, commencing on July 16, 2021 and expiring on July 15, 2024. The monthly rental payment is approximately $4,992 (RMB32,951) per month. Operating lease expense for the three and nine months ended September 30, 2022 and 2021 were as follows: Three months ended Nine months ended 2022 2021 2022 2021 Operating lease cost – straight line 14,406 15,277 44,925 41,462 Total lease expense $ 14,406 15,277 $ 44,925 $ 41,462 The following is a schedule, by years, of maturities of lease liabilities as of September 30, 2022: Operating Remainder of 2022 $ 13,892 2023 55,567 2024 27,784 2025 - Thereafter - Total undiscounted cash flows 97,243 Less: imputed interest (4,096 ) Present value of lease liabilities $ 93,147 Lease term and discount rate September 30, Weighted-average remaining lease term - year 1.75 Weighted-average discount rate (%) 4.90 % Supplemental cash flow information related to lease where the Company was the lessee for the nine months ended September 30, 2022 and 2021 was as follows: Nine months ended 2022 2021 Operating cash outflows from operating lease $ 44,925 $ 45,827 | NOTE 14 – LEASE On May 13, 2020, the Company entered into a lease agreement for office space in Xian, the PRC with a non-cancellable lease term, commencing on May 13, 2020 and expiring on July 15, 2021. The monthly rental payment is approximately $4,092 (RMB28,244) per month. On June 10, 2021, the Company entered into a lease agreement for office space in Xian, the PRC with a non-cancellable lease term, commencing on July 16, 2021 and expiring on July 15, 2024. The monthly rental payment is approximately $5,107 (RMB32,951) per month. Operating lease expense for the years ended December 31, 2021 and 2020 were as follows: 2021 2020 Operating lease cost – straight line $ 39,367 $ 31,350 Total lease expense $ 39,367 $ 31,350 The following is a schedule, by years, of maturities of lease liabilities as of December 31, 2021: Operating 12 months ending December 31, 2022 $ 62,212 2023 62,212 2024 31,106 2025 - Thereafter - Total undiscounted cash flows 155,530 Less: imputed interest (8,832 ) Present value of lease liabilities $ 146,698 Lease term and discount rate December 31, Weighted-average remaining lease term - year 2.5 Weighted-average discount rate (%) 4.90 % |
Contingenies and Commitments
Contingenies and Commitments | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
CONTINGENIES AND COMMITMENTS | NOTE 12 – CONTINGENIES AND COMMITMENTS Contingencies Certain conditions may exist as of the date the condensed consolidated financial statements are issued, which may 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 and legal counsel assess 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 legal counsel 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. There was no contingency of this type as of September 30, 2022 and December 31, 2021. 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 would be 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. There was no contingency of this type as of September 30, 2022 and December 31, 2021. Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed. | NOTE 15 – CONTINGENIES AND COMMITMENTS Contingencies Certain conditions may exist as of the date the consolidated financial statements are issued, which may 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 and legal counsel assess 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 legal counsel 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. There was no contingency of this type as of December 31, 2021 and 2020. 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 would be 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. There was no contingency of this type as of December 31, 2021 and 2020. Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed. |
Certain Risks and Concentration
Certain Risks and Concentrations | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | ||
CERTAIN RISKS AND CONCENTRATIONS | NOTE 13 – CERTAIN RISKS AND CONCENTRATIONS (a) Concentrations The Company had the following customers that individually comprised 10% or more of net revenue for the three and nine months ended September 30, 2022 and 2021: Three months ended 2022 2021 Customer A (note) $ 437,679 55 % $ * * % Customer B * * % 210,337 13 % Customer C * * % 170,019 10 % Customer D * * % 172,765 11 % * Comprised less than 10% of net revenue for the respective period. Nine months ended 2022 2021 Customer A (note) $ 1,284,209 45 % $ * * % Customer B * * % 1,321,937 30 % Customer C * * % 905,215 20 % Customer D * * % 627,321 14 % * Comprised less than 10% of net revenue for the respective period. The Company had the following customers that individually comprised 10% or more of net accounts receivable as of September 30, 2022 and December 31, 2021: September 30, December 31, Customer A (note i) $ 128,779 45 % $ 15,864 23 % Customer E 59,413 21 % * * % Customer F 46,347 16 % * * % Customer G * * % 18,408 27 % Customer H * * % 20,272 30 % The Company had the following service vendor that individually comprised 10% or more of cost of revenue for the nine months ended September 30, 2022 and 2021: Nine months ended 2022 2021 Service vendor A (note) $ 135,223 24 % $ 400,105 31 % The Company had the following service vendors that individually comprised 10% or more of accounts payable as of September 30, 2022 and December 31, 2021: September 30, December 31, Service vendor B $ * * % $ 49,560 43 % Service vendor C * * % 21,390 18 % Service vendor D * * % 19,308 17 % Service vendor E * * % 16,135 14 % * Comprised less than 10% of accounts payable for the respective period. Note: Customer A and Service vendor A disclosed above is the same Company. (b) Credit risk At September 30, 2022 and December 31, 2021, the Company’s cash and cash equivalents included bank deposits in accounts maintained in China and Hong Kong and liquid funds in online payment platforms. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. For the credit risk related to trade accounts receivable, the Company performs ongoing credit evaluations of its customers and, if necessary, maintains reserves for potential credit losses. | NOTE 16 – CERTAIN RISKS AND CONCENTRATIONS (a) Concentrations The Company had the following customers that individually comprised 10% or more of net revenue for the years ended December 31, 2021 and 2020: 2021 2020 Customer A $ 1,438,514 26 % $ 4,995,641 54 % Customer B (Note) 1,008,417 18 % 1,586,867 17 % Customer C 730,829 13 % * * * Comprised less than 10% of net revenue for the respective period. The Company had the following customers that individually comprised 10% or more of net accounts receivable as of December 31, 2021 and 2020: 2021 2020 Customer A $ * * % $ 57,608 28 % Customer B (Note) * * % 39,291 19 % Customer C * * % * * % Customer D 20,272 30 % * * % Customer E 18,408 27 % 31,379 16 % Customer F 15,864 23 % * * % * Comprised less than 10% of net account receivable for the respective period. Note : Customer B is an ultimate shareholder of Service Vendor C and Service Vendor E disclosed below. The Company had the following service vendors that individually comprised 10% or more of cost of revenue for the years ended December 31, 2021 and 2020: 2021 2020 Service vendor $ 579,959 32 % $ * * Service vendor B 186,934 10 % * * * Comprised less than 10% of cost of revenue for the respective period. The Company had the following service vendors that individually comprised 10% or more of accounts payable as of December 31, 2021 and December 31, 2020: 2021 2020 Service vendor B $ 49,560 43 % $ * * Service vendor C (Note) 21,390 18 % * * Service vendor D 19,308 17 % * * Service vendor E (Note) 16,135 14 % * * * Comprised less than 10% of accounts payable for the respective period. Note: Customer B disclosed above is an ultimate shareholder of Service Vendor C and Service Vendor E. (b) Credit risk At December 31, 2021 and 2020, the Company’s cash and cash equivalents included bank deposits in accounts maintained in China and Hong Kong and liquid funds in online payment platforms. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. For the credit risk related to trade accounts receivable, the Company performs ongoing credit evaluations of its customers and, if necessary, maintains reserves for potential credit losses. |
Subsequent Events
Subsequent Events | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Subsequent Events [Abstract] | ||
SUBSEQUENT EVENTS | NOTE 14 – SUBSEQUENT EVENTS The Company has evaluated the existence of events and transactions subsequent to the balance sheet date through the date the unaudited consolidated financial statements were issued and has determined that there were no significant subsequent events or transactions which would require recognition or disclosure in the financial statements. | NOTE 18 – SUBSEQUENT EVENTS On March 22, 2022, the PRC subsidiary learned that Beijing Jade Bird Culture and Art Research Institute (“Jade Bird”), the KOL agency that the PRC subsidiary works with to coordinate digital training related service, suspended its service after receiving a notice from China National Personal Talent Training Network (“CNPTTN”), a PRC regulatory agency for the talent training, that until further notice CNPTTN has suspended all recruitment services using its CNPTTN’s name. As a result of the suspension, the PRC subsidiary has also suspended its digital training related services with Jade Bird from March 22, 2022 until further notice. Jade Bird is an authorized licensee of CNPTTN. The management of the Company consider that it is not practicable to provide a reasonable estimate of that effect until a detailed review have been completed. For the years ended December 31, 2021 and 2020, the digital training related services with Jade Bird represented 20.9% and 0% of our total revenue, or $1,176,515 and $0, respectively. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States of America generally accepted accounting principles (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The interim condensed consolidated financial information as of September 30, 2022 and for the three and nine months periods ended September 30, 2022 and 2021 have been prepared without audit, pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures, which are normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The interim condensed consolidated financial information should be read in conjunction with the Financial Statements and the notes thereto, included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, previously filed with the SEC on April 15, 2022. In the opinion of management, all adjustments (which include all significant normal and recurring adjustments) necessary to present a fair statement of the Company’s interim condensed consolidated financial position as of September 30, 2022, its interim condensed consolidated results of operations and cash flows for the three and nine months period ended September 30, 2022 and 2021, as applicable, have been made. The interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods. During the nine months ended September 30, 2022, the Company experienced (and continues to experience) adverse impacts of novel coronavirus (COVID-19) and the related public health orders. The Company expects that the impact of the COVID-19 outbreak on China and world economies will continue to have a material adverse impact on the demand for the Company’s business. Because of the significant uncertainties surrounding the COVID-19 pandemic, the extent of the business interruption and the related financial impact cannot be reasonably estimated at this time. | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with United States of America generally accepted accounting principles (“U.S. GAAP”). After the close of the year to which these financial statements relate, the Company experienced (and continues to experience) adverse impacts of novel coronavirus (COVID-19) and the related public health orders. In December 2021, there was a COVID-19 outbreak in Xian city, the PRC. Finally, the Company expects that the impact of the COVID-19 outbreak on the United States and world economies will continue to have a material adverse impact on the demand for the Company’s business. Because of the significant uncertainties surrounding the COVID-19 pandemic, the extent of the business interruption and the related financial impact cannot be reasonably estimated at this time. |
Use of Estimates | Use of Estimates The preparation of these financial statements in conformity with U.S. GAAP requires management of the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, costs and expenses, and related disclosures. On an ongoing basis, the Company evaluates its estimates based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Identified below are the accounting policies that reflect the Company’s most significant estimates and judgments, and those that the Company believes are the most critical to fully understanding and evaluating its condensed consolidated financial statements. The COVID-19 pandemic has created and may continue to create significant uncertainty in macroeconomic conditions, which may cause further business slowdowns or shutdowns, depress demand for the Company’s business, and adversely impact its results of operations. During the nine months ended September 30, 2022, the Company faced increasing uncertainties around its estimates of revenue collectability and accounts receivable credit losses. The Company expects uncertainties around its key accounting estimates to continue to evolve depending on the duration and degree of impact associated with the COVID-19 pandemic. Its estimates may change as new events occur and additional information emerges, and such changes are recognized or disclosed in its condensed consolidated financial statements. | Use of Estimates The preparation of these financial statements in conformity with U.S. GAAP requires management of the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, costs and expenses, and related disclosures. On an ongoing basis, the Company evaluates its estimates based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Identified below are the accounting policies that reflect the Company’s most significant estimates and judgments, and those that the Company believes are the most critical to fully understanding and evaluating its consolidated financial statements. The COVID-19 pandemic has created and may continue to create significant uncertainty in macroeconomic conditions, which may cause further business slowdowns or shutdowns, depress demand for the Company’s business, and adversely impact its results of operations. During the year ended December 31, 2021, the Company faced increasing uncertainties around its estimates of revenue collectability and accounts receivable credit losses. The Company expects uncertainties around its key accounting estimates to continue to evolve depending on the duration and degree of impact associated with the COVID-19 pandemic. Its estimates may change as new events occur and additional information emerges, and such changes are recognized or disclosed in its consolidated financial statements. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt — Modifications and Extinguishments (Subtopic 470-50), Compensation — Stock Compensation (Topic 718), and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (“ASU 2021-04”). ASU 2021-04 provides guidance as to how an issuer should account for a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option (i.e., a warrant) that remains classified after modification or exchange as an exchange of the original instrument for a new instrument. An issuer should measure the effect of a modification or exchange as the difference between the fair value of the modified or exchanged warrant and the fair value of that warrant immediately before modification or exchange and then apply a recognition model that comprises four categories of transactions and the corresponding accounting treatment for each category (equity issuance, debt origination, debt modification, and modifications unrelated to equity issuance and debt origination or modification). The Company applied the new standard beginning January 1, 2022. The adoption of ASU 2021-04 did not have any impact on the Company’s condensed consolidated financial statement presentation or disclosures. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. This update requires certain annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. The Company applied the new standard beginning January 1, 2022. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. | Recently Adopted Accounting Standards In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistent application among reporting entities. Upon adoption, the Company must apply certain aspects of this standard retrospectively for all periods presented while other aspects are applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The Company applied the new standard beginning January 1, 2021. The adoption of ASU 2019-12 did not have any impact on the Company’s consolidated financial statement presentation or disclosures. In August 2020, the FASB issued ASU No. 2020-06 (“ASU 2020-06”) “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40).” ASU 2020-06 reduces the number of accounting models for convertible debt instruments by eliminating the cash conversion and beneficial conversion models. As a result, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost as long as no other features require bifurcation and recognition as derivatives. For contracts in an entity’s own equity, the type of contracts primarily affected by this update are freestanding and embedded features that are accounted for as derivatives under the current guidance due to a failure to meet the settlement conditions of the derivative scope exception. This update simplifies the related settlement assessment by removing the requirements to (i) consider whether the contract would be settled in registered shares, (ii) consider whether collateral is required to be posted, and (iii) assess shareholder rights. ASU 2020-06 is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, and only if adopted as of the beginning of such fiscal year. The Company adopted ASU 2020-06 effective January 1, 2021. The adoption of ASU 2020-06 did not have any impact on the Company’s consolidated financial statement presentation or disclosures. The adoption of ASU 2020-06 did not have any impact on the Company’s consolidated financial statement presentation or disclosures. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326) (“ASU 2016-13”), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. ASU 2016-13 replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. ASU 2016-13 is to be adopted on a modified retrospective basis. As a smaller reporting company, ASU 2016-13 will be effective for the Company for interim and annual reporting periods beginning after December 15, 2022. The Company is currently evaluating the impact that the adoption of ASU 2016-13 will have on its condensed consolidated financial statement presentations and disclosures. In March 2022, the FASB issued ASU 2022-02, Topic 326. The ASU eliminates the accounting guidance for trouble debt restructurings by creditors in Subtopic 310-40, and enhances the disclosure requirements for modifications of loans to borrowers experiencing financial difficulty. Additionally, the ASU requires disclosure of gross writeoffs of receivables by year of origination for receivables within the scope of Subtopic 326-20, Financial Instruments - Credit Losses - Measured at Amortized Cost. This ASU is effective for periods beginning after December 15, 2022. The Company is currently evaluating the impact that the adoption of ASU 2016-13 and ASU 2022-02 will have on its condensed consolidated financial statement presentations and disclosures. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s condensed consolidated financial statements upon adoption. | Recently Issued Accounting Standards In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326) (“ASU 2016-13”), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. ASU 2016-13 replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. ASU 2016-13 is to be adopted on a modified retrospective basis. As a smaller reporting company, ASU 2016-13 will be effective for the Company for interim and annual reporting periods beginning after December 15, 2022. The Company is currently evaluating the impact that the adoption of ASU 2016-13 will have on its consolidated financial statement presentations and disclosures. In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt — Modifications and Extinguishments (Subtopic 470-50), Compensation — Stock Compensation (Topic 718), and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (“ASU 2021-04”). ASU 2021-04 provides guidance as to how an issuer should account for a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option (i.e., a warrant) that remains classified after modification or exchange as an exchange of the original instrument for a new instrument. An issuer should measure the effect of a modification or exchange as the difference between the fair value of the modified or exchanged warrant and the fair value of that warrant immediately before modification or exchange and then apply a recognition model that comprises four categories of transactions and the corresponding accounting treatment for each category (equity issuance, debt origination, debt modification, and modifications unrelated to equity issuance and debt origination or modification). ASU 2021-04 is effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. An entity should apply the guidance provided in ASU 2021-04 prospectively to modifications or exchanges occurring on or after the effective date. Early adoption is permitted for all entities, including adoption in an interim period. If an entity elects to early adopt ASU 2021-04 in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes that interim period. The adoption of ASU 2021-04 is not expected to have any impact on the Company’s consolidated financial statement presentation or disclosures. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. This update requires certain annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. This update is effective for annual periods beginning after December 15, 2021, and early application is permitted. This guidance should be applied either prospectively to all transactions that are reflected in financial statements at the date of initial application and new transactions that are entered into after the date of initial application or retrospectively to those transactions. The Company does not expect the impact of this guidance to have a material impact on the Company’s consolidated financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption. |
Basis of Consolidation and Noncontrolling Interests | Basis of Consolidation and Noncontrolling Interests The condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation. A subsidiary is an entity in which (i) the Company directly or indirectly controls more than 50% of the voting power; or (ii) the Company has the power to appoint or remove the majority of the members of the board of directors or to cast a majority of votes at the meeting of the board of directors or to govern the financial and operating policies of the investee pursuant to a statute or under an agreement among the shareholders or equity holders. | Basis of Consolidation and Noncontrolling Interests The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation. A subsidiary is an entity in which (i) the Company directly or indirectly controls more than 50% of the voting power; or (ii) the Company has the power to appoint or remove the majority of the members of the board of directors or to cast a majority of votes at the meeting of the board of directors or to govern the financial and operating policies of the investee pursuant to a statute or under an agreement among the shareholders or equity holders. |
Leases | Leases The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease liabilities are recognized based on the present value of the remaining lease payments, discounted using the discount rate for the lease at the commencement date. As the rate implicit in the lease is not readily determinable for the operating lease, the Company generally uses an incremental borrowing rate based on information available at the commencement date to determine the present value of future lease payments. Operating lease right-of-use (“ROU assets”) assets represent the Company’s right to control the use of an identified asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets are generally recognized based on the amount of the initial measurement of the lease liability. Lease expense is recognized on a straight-line basis over the lease term. The Company elected the package of practical expedients permitted under the transition guidance to combine the lease and non-lease components as a single lease component for operating leases associated with the Company’s office space lease, and to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the condensed consolidated statements of income on a straight-line basis over the lease term. ROU assets are reviewed for impairment when indicators of impairment are present. ROU assets from operating and finance leases are subject to the impairment guidance in ASC 360, Property, Plant, and Equipment, as ROU assets are long-lived nonfinancial assets. ROU assets are tested for impairment individually or as part of an asset group if the cash flows related to the ROU asset are not independent from the cash flows of other assets and liabilities. An asset group is the unit of accounting for long-lived assets to be held and used, which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. The Company recognized no impairment of ROU assets as of September 30, 2022 and December 31, 2021. The operating lease is included in operating lease right-of-use assets, operating lease liabilities-current and operating lease liabilities-non-current on the Company’s condensed consolidated balance sheets. | Leases The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease liabilities are recognized based on the present value of the remaining lease payments, discounted using the discount rate for the lease at the commencement date. As the rate implicit in the lease is not readily determinable for the operating lease, the Company generally uses an incremental borrowing rate based on information available at the commencement date to determine the present value of future lease payments. Operating lease right-of-use (“ROU assets”) assets represent the Company’s right to control the use of an identified asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets are generally recognized based on the amount of the initial measurement of the lease liability. Lease expense is recognized on a straight-line basis over the lease term. The Company elected the package of practical expedients permitted under the transition guidance to combine the lease and non-lease components as a single lease component for operating leases associated with the Company’s office space lease, and to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term. ROU assets are reviewed for impairment when indicators of impairment are present. ROU assets from operating and finance leases are subject to the impairment guidance in ASC 360, Property, Plant, and Equipment, as ROU assets are long-lived nonfinancial assets. ROU assets are tested for impairment individually or as part of an asset group if the cash flows related to the ROU asset are not independent from the cash flows of other assets and liabilities. An asset group is the unit of accounting for long-lived assets to be held and used, which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. The Company recognized no impairment of ROU assets as of December 31, 2021 and December 31, 2020. The operating lease is included in operating lease right-of-use assets, operating lease liabilities-current and operating lease liabilities-non-current on the Company’s consolidated balance sheets. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers cash, money market funds, investments in interest bearing demand deposit accounts, time deposits and all highly liquid investments placed with banks or other financial institutions with an original maturity of three months or less to be cash equivalents. As of September 30, 2022, cash held in accounts managed by online payment platforms such as Alipay and WeChat Pay amounted to $599 (as at December 31, 2021: $161,188), which have been classified as cash and cash equivalents in the condensed consolidated balance sheets. | Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers cash, money market funds, investments in interest bearing demand deposit accounts, time deposits and all highly liquid investments placed with banks or other financial institutions with an original maturity of three months or less to be cash equivalents. As of December 31, 2021, cash held in accounts managed by online payment platforms such as Alipay and WeChat Pay amounted to $161,188 (as at December 31, 2020: Nil |
Accounts receivable | Accounts receivable Accounts receivable are recorded at the invoiced amount, net of allowances for doubtful accounts and sales returns. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company determines the allowance based on historical write-off experience, customer specific facts and economic conditions. Outstanding accounts receivable balances are reviewed individually for collectability. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. | Accounts receivable Accounts receivable are recorded at the invoiced amount, net of allowances for doubtful accounts and sales returns. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company determines the allowance based on historical write-off experience, customer specific facts and economic conditions. Outstanding accounts receivable balances are reviewed individually for collectability. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. |
Debt products | Debt products All debt products are carried at fair value at the end of each reporting period. Changes in the carrying amount of debt products relating to interest income calculated using the effective interest method are recognized in consolidated statement of profit or loss. Other changes in the carrying amount of these products, net of any related tax effects, are excluded form earnings and are included in other comprehensive income or loss and reported as a separate component of stockholders’ equity or deficit until realized. Realized gains and losses and declines in value judged to be other than temporary, if any, on debt products are included in other income (expense), net. The Company regularly reviews all of its investments for other-than-temporary declines in estimated fair value. Its review includes the consideration of the cause of the impairment, including the creditworthiness of the security issuers, the number of securities in an unrealized loss position, the severity and duration of the unrealized losses, whether the Company has the intent to sell the securities and whether it is more likely than not that the Company will be required to sell the securities before the recovery of their amortized cost basis. When the Company determines that the decline in estimated fair value of an investment is below the amortized cost basis and the decline is other-than-temporary, it reduces the carrying value of the security and record a loss for the amount of such decline. The Company has not recorded any declines in value judged to be other than temporary on its investments in debt securities. | |
Plant and equipment | Plant and equipment Plant and equipment are recorded at cost less accumulated depreciation and accumulated impairment. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Estimated Motor vehicle 4 – 5 Office equipment 3 The gain or loss on the disposal of plant and equipment is the difference between the net sales proceeds and the lower of the carrying value or fair value less cost to sell the relevant assets and is recognized in general and administrative expenses in the condensed consolidated statements of comprehensive income. | Plant and equipment Plant and equipment are recorded at cost less accumulated depreciation and accumulated impairment. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Estimated Motor vehicle 4 - 5 The gain or loss on the disposal of plant and equipment is the difference between the net sales proceeds and the lower of the carrying value or fair value less cost to sell the relevant assets and is recognized in general and administrative expenses in the consolidated statements of comprehensive income. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets In accordance with ASC 360-10-35, we review the carrying values of long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The Company assesses the recover-ability of the assets based on the non-discounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated discounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. No impairment has been recorded by the Company for the three and nine months ended September 30, 2022 and 2021. | Impairment of Long-lived Assets In accordance with ASC 360-10-35, we review the carrying values of long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The Company assesses the recover-ability of the assets based on the non-discounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated discounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. No impairment has been recorded by the Company for the years ended December 31, 2021 and 2020. |
Revenue Recognition | Revenue Recognition The Company recognizes revenues when its customer obtains control of promised goods or services, in an amount that reflects the consideration which it expects to receive in exchange for those goods. The Company recognizes revenues following the five step model prescribed under ASU No. 2014-09: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) we satisfy the performance obligation. The Company evaluates if it is a principal or an agent in a transaction to determine whether revenue should be recorded on a gross or net basis. The Company is acting as the principal if it obtains control over the goods and services before they are transferred to customers. When the Company is primarily obligated in a transaction, is generally subject to inventory risk, has latitude in establishing prices, or has several but not all of these indicators, the Company acts as the principal and revenue is recorded on a gross basis. When the Company is not primarily obligated in a transaction, does not generally bear the inventory risk and does not have the ability to establish the price, the Company acts as the agent and revenue is recorded on a net basis The Company derives its revenue primarily from net transaction services, including consultancy services, sourcing and marketing services, and digital training related services. Consultancy services The Company generates the majority of its revenues by providing consulting services to its clients. Most of its consulting service contracts are based on one of the following types of arrangements: Performance-based arrangements Fixed-fee arrangements Sourcing and marketing services The Company provides agency-based sourcing and digital marketing services to connect marketplace operators and merchants. Most of its sourcing and marketing services are based on one of the following types of arrangements: Agency-based sourcing services Digital marketing services The post-sale services, goods return and other kinds of product issue are responsibilities of the merchants. Upon successful delivery to ultimate customers by the merchants, there is no unfulfilled obligation that could affect the marketplace operators’ and merchants’ acceptance of the services provided. The acceptance provisions have lapsed, or the Company has objective evidence that all criteria for acceptance have been satisfied. Digital training related services Fixed-fee digital training related services The Company derived services revenues of $702,371 and $1,515,371 for the three months ended September 30, 2022 and 2021, respectively; and $2,207,029 and $4,268,054 for the nine months ended September 30, 2022 and 2021, respectively, from provision of certain consultancy services and sourcing and marketing services through the program application (“App”) platform managed by a related company, Xi’an Chuangyetianxia Network Technology Co., Ltd. (“Xian CNT”). The Company CEO, Mr. Tao, has significant influence over Xian CNT. Practical expedients and exemption The Company has not occurred any costs to obtain contracts, and does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. Other service income is earned when services have been rendered. Revenue by major service line Three months ended Nine months ended 2022 2021 2022 2021 Consultancy services 699,257 1,554,834 2,211,307 4,362,581 Sourcing and marketing services 102,527 67,637 372,475 116,834 Digital training related services - - 267,874 - $ 801,784 $ 1,622,471 $ 2,851,656 $ 4,479,415 Revenue by recognition over time vs point in time Three months ended Nine months ended 2022 2021 2022 2021 Revenue recognized at a point in time 801,784 1,622,471 2,851,656 4,479,415 Revenue recognized over time - - - - $ 801,784 $ 1,622,471 $ 2,851,656 $ 4,479,415 Revenue recorded on a gross vs net basis Three months ended Nine months ended 2022 2021 2022 2021 Revenue recorded on a gross basis 699,257 1,554,834 2,479,181 4,362,581 Revenue recorded on a net basis 102,527 67,637 372,475 116,834 $ 801,784 $ 1,622,471 $ 2,851,656 $ 4,479,415 Contract liabilities The Company’s contract liabilities consist of deferred revenue associated with consultancy fees and provision of fixed-fee training related services. The table below presents the activity of the deferred consultancy services revenue during the nine months ended September 30, 2022 and December 31, 2021, respectively: September 30, December 31, Balance at beginning of period $ 216,142 $ - Service fees collected 224,435 1,377,349 Refunded (152,888 ) - Service revenue earned (267,874 ) (1,176,515 ) Exchange realignment (19,815 ) 15,308 Balance at end of period $ - $ 216,142 | Revenue Recognition The Company recognizes revenues when its customer obtains control of promised goods or services, in an amount that reflects the consideration which it expects to receive in exchange for those goods. The Company recognizes revenues following the five step model prescribed under ASU No. 2014-09: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) we satisfy the performance obligation. The Company evaluates if it is a principal or an agent in a transaction to determine whether revenue should be recorded on a gross or net basis. The Company is acting as the principal if it obtains control over the goods and services before they are transferred to customers. When the Company is primarily obligated in a transaction, is generally subject to inventory risk, has latitude in establishing prices, or has several but not all of these indicators, the Company acts as the principal and revenue is recorded on a gross basis. When the Company is not primarily obligated in a transaction, does not generally bear the inventory risk and does not have the ability to establish the price, the Company acts as the agent and revenue is recorded on a net basis The Company derives its revenue primarily from net transaction services, including consultancy services, sourcing and marketing services, and digital training related services. Consultancy services The Company generates the majority of its revenues by providing consulting services to its clients. Most of its consulting service contracts are based on one of the following types of arrangements: Performance-based arrangements Fixed-fee arrangements Sourcing and marketing services The Company provides agency-based sourcing and digital marketing services to connect marketplace operators and merchants. Most of its sourcing and marketing services are based on one of the following types of arrangements: Agency-based sourcing services Digital marketing services The post-sale services, goods return and other kinds of product issue are responsibilities of the merchants. Upon successful delivery to ultimate customers by the merchants, there is no unfulfilled obligation that could affect the marketplace operators’ and merchants’ acceptance of the services provided. The acceptance provisions have lapsed, or the Company has objective evidence that all criteria for acceptance have been satisfied. Digital training related services Fixed-fee digital training related services The Company derived services revenues of $4,152,617 and $8,592,970 for the years ended December 31, 2021 and 2020, respectively, from provision of certain consultancy services and sourcing and marketing services through the program application (“App”) platform managed by a related company, Xi’an Chuangyetianxia Network Technology Co., Ltd. (“Xian CNT”). The Company CEO, Mr. Tao, has significant influence over Xian CNT. During the years ended December 31, 2021 and 2020, revenues generated from Xian CNT are disclosed in note 5 of the consolidated financial statements. Practical expedients and exemption The Company has not occurred any costs to obtain contracts, and does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. Other service income is earned when services have been rendered. Revenue by major service line 2021 2020 Consultancy services 4,237,261 8,984,967 Sourcing and marketing services 223,620 202,056 Digital training related services 1,176,515 - $ 5,637,396 $ 9,187,023 Revenue by recognition over time vs point in time 2021 2020 Revenue recognized at a point in time 5,637,396 9,100,334 Revenue recognized over time - 86,689 $ 5,637,396 $ 9,187,023 Revenue recorded on a gross vs net basis 2021 2020 Revenue recorded on a gross basis 5,413,776 8,984,967 Revenue recorded on a net basis 223,620 202,056 $ 5,637,396 $ 9,187,023 Contract liabilities The Company’s contract liabilities consist of deferred revenue associated with consultancy fees and provision of fixed-fee training related services. The table below presents the activity of the deferred consultancy services revenue during the years ended December 31, 2021 and 2020, respectively: 2021 2020 Balance at beginning of year $ - $ 87,136 Service fees collected 1,377,349 - Service revenue earned (1,176,515 ) (86,689 ) Exchange realignment 15,308 (447 ) Balance at end of year $ 216,142 $ - |
Cost of revenue | Cost of revenue Cost of revenues consists primarily of employee compensation, service fees, agency fees, and the related IT expenses, which are directly attributable to the revenues | Cost of revenue Cost of revenues consists primarily of employee compensation, service fees, agency fees, and the related IT expenses, which are directly attributable to the revenues |
Employee benefits | Employee benefits Full time employees of the Company in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to the employees. Chinese labor regulations require that the PRC subsidiary of the Company make contributions to the government for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Company has no legal obligation for the benefits beyond the contributions made. Total amounts of such employee benefit expenses, which were expensed as incurred, were approximately $17,744 and $31,273 for the three months ended September 30, 2022 and 2021, respectively; and $47,963 and $78,957 for the nine months ended September 30, 2022 and 2021, respectively. | Employee benefits Full time employees of the Company in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to the employees. Chinese labor regulations require that the PRC subsidiary of the Company make contributions to the government for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Company has no legal obligation for the benefits beyond the contributions made. Total amounts of such employee benefit expenses, which were expensed as incurred, were approximately $124,386 (including prior years housing funds of $11,014) and $4,911 for the years ended December 31, 2021 and 2020, respectively. |
Foreign Currency and Foreign Currency Translation | Foreign Currency and Foreign Currency Translation The reporting currency of the Company is the United States dollar (“US dollar”). The financial records of the Company’s PRC operating subsidiaries are maintained in their local currency, the Renminbi (“RMB”), which is the functional currency. The financial records of the Company’s Hong Kong operating subsidiary are maintained in its local currency, the Hong Kong Dollar (“HKD”), which is the functional currency. Assets and liabilities of the subsidiaries are translated into the reporting currency at the exchange rates at the balance sheet date, equity accounts are translated at historical exchange rates, and income and expense items are translated using the average rate for the period. The translation adjustments are recorded in accumulated other comprehensive loss under shareholders’ equity. Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated into the functional currencies at the prevailing rates of exchange at the balance sheet date. Nonmonetary assets and liabilities are remeasured into the applicable functional currencies at historical exchange rates. Transactions in currencies other than the applicable functional currencies during the period are converted into the functional currencies at the applicable rates of exchange prevailing at the transaction dates. Transaction gains and losses are recognized in the condensed consolidated statements of operations. RMB is not a fully convertible currency. All foreign exchange transactions involving RMB must take place either through the People’s Bank of China (the “PBOC”) or other institutions authorized to buy and sell foreign exchange. The exchange rates adopted for the foreign exchange transactions are the rates of exchange quoted by the PBOC, which are determined largely by supply and demand. Translation of amounts from RMB into US dollars has been made at the following exchange rates for the respective periods: Nine months ended September 30, 2022 Balance sheet, except for equity accounts RMB 7.1160 to US$1.00 Income statement and cash flows RMB 6.6013 to US$1.00 Nine months ended September 30, 2021 Balance sheet, except for equity accounts RMB 6.4466 to US$1.00 Income statement and cash flows RMB 6.4714 to US$1.00 During the periods presented, HKD is pegged to the U.S. dollar within a narrow range. | Foreign Currency and Foreign Currency Translation The reporting currency of the Company is the United States dollar (“US dollar”). The financial records of the Company’s PRC operating subsidiaries are maintained in their local currency, the Renminbi (“RMB”), which is the functional currency. The financial records of the Company’s Hong Kong operating subsidiary are maintained in its local currency, the Hong Kong Dollar (“HKD”), which is the functional currency. Assets and liabilities of the subsidiaries are translated into the reporting currency at the exchange rates at the balance sheet date, equity accounts are translated at historical exchange rates, and income and expense items are translated using the average rate for the year. The translation adjustments are recorded in accumulated other comprehensive loss under shareholders’ equity. Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated into the functional currencies at the prevailing rates of exchange at the balance sheet date. Nonmonetary assets and liabilities are remeasured into the applicable functional currencies at historical exchange rates. Transactions in currencies other than the applicable functional currencies during the year are converted into the functional currencies at the applicable rates of exchange prevailing at the transaction dates. Transaction gains and losses are recognized in the consolidated statements of operations. RMB is not a fully convertible currency. All foreign exchange transactions involving RMB must take place either through the People’s Bank of China (the “PBOC”) or other institutions authorized to buy and sell foreign exchange. The exchange rates adopted for the foreign exchange transactions are the rates of exchange quoted by the PBOC, which are determined largely by supply and demand. Translation of amounts from RMB into US dollars has been made at the following exchange rates for the respective periods: Year ended December 31, 2020 Balance sheet, except for equity accounts RMB 6.5401 to US$1.00 Income statement and cash flows RMB 6.9021 to US$1.00 Year ended December 31, 2021 Balance sheet, except for equity accounts RMB 6.3559 to US$1.00 Income statement and cash flows RMB 6.4519 to US$1.00 During the years presented, HKD is pegged to the U.S. dollar within a narrow range. |
Income Taxes | Income Taxes Income taxes are accounted for using an asset and liability approach which requires the recognition of income taxes payable or refundable for the current period and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. Deferred income taxes are determined based on the differences between the accounting basis and the tax basis of assets and liabilities and are measured using the currently enacted tax rates and laws. Deferred tax assets are reduced by a valuation allowance, if based on available evidence, it is considered that it is more likely than not that some portion of or all of the deferred tax assets will not be realized. In making such determination, the Company considers factors including future reversals of existing taxable temporary differences, future profitability, and tax planning strategies. If events were to occur in the future that would allow the Company to realize more of its deferred tax assets than the presently recorded net amount, an adjustment would be made to the deferred tax assets that would increase income for the period when those events occurred. If events were to occur in the future that would require the Company to realize less of its deferred tax assets than the presently recorded net amount, an adjustment would be made to the valuation allowance against deferred tax assets that would decrease income for the period when those events occurred. Significant management judgment is required in determining income tax expense and deferred tax assets and liabilities. The Company conducts business in the PRC and Hong Kong and 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 respective tax authorities. | Income Taxes Income taxes are accounted for using an asset and liability approach which requires the recognition of income taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. Deferred income taxes are determined based on the differences between the accounting basis and the tax basis of assets and liabilities and are measured using the currently enacted tax rates and laws. Deferred tax assets are reduced by a valuation allowance, if based on available evidence, it is considered that it is more likely than not that some portion of or all of the deferred tax assets will not be realized. In making such determination, the Company considers factors including future reversals of existing taxable temporary differences, future profitability, and tax planning strategies. If events were to occur in the future that would allow the Company to realize more of its deferred tax assets than the presently recorded net amount, an adjustment would be made to the deferred tax assets that would increase income for the period when those events occurred. If events were to occur in the future that would require the Company to realize less of its deferred tax assets than the presently recorded net amount, an adjustment would be made to the valuation allowance against deferred tax assets that would decrease income for the period when those events occurred. Significant management judgment is required in determining income tax expense and deferred tax assets and liabilities. The Company conducts business in the PRC and Hong Kong and 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 respective tax authorities. |
Uncertain Tax Positions | Uncertain Tax Positions Management reviews regularly the adequacy of the provisions for taxes as they relate to the Company’s income and transactions. In order to assess uncertain tax positions, the Company applies a more likely than not threshold and a two-step approach for tax position measurement and financial statement recognition. For the two-step approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon settlement. As of September 30, 2022 and December 31, 2021, the Company had not recorded any liability for uncertain tax positions. In subsequent periods, any interest and penalties related to uncertain tax positions will be recognized as a component of income tax expense. | Uncertain Tax Positions Management reviews regularly the adequacy of the provisions for taxes as they relate to the Company’s income and transactions. In order to assess uncertain tax positions, the Company applies a more likely than not threshold and a two-step approach for tax position measurement and financial statement recognition. For the two-step approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon settlement. As of December 31, 2021 and 2020, the Company had not recorded any liability for uncertain tax positions. In subsequent periods, any interest and penalties related to uncertain tax positions will be recognized as a component of income tax expense. |
Net (loss) income per Share of Common Stock | Net (loss) income per Share of Common Stock The Company has adopted ASC Topic 260, “Earnings per Share,” (“EPS”) which requires presentation of basic EPS on the face of the income statement for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation. In the accompanying financial statements, basic earnings (loss) per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Three months ended Nine months ended 2022 2021 2022 2021 Net (loss) income $ (31,999 ) $ 207,551 $ 625,024 $ 1,296,228 Weighted average number of common stock outstanding - basic and diluted 1,701,181,423 1,701,181,423 1,701,181,423 1,701,181,423 Net (loss) income per share - basic and diluted $ 0.00 * $ 0.00 * $ 0.00 * $ 0.00 * * Less than $0.01 per share The calculation of basic net (loss) income per share of common stock is based on the net (loss) income for the three and nine months ended September 30, 2022 and 2021 and the weighted average number of ordinary shares outstanding. For the three and nine months ended September 30, 2022 and 2021, the Company has no potentially dilutive securities, such as options or warrants, currently issued and outstanding. | Net income per Share of Common Stock The Company has adopted ASC Topic 260, “Earnings per Share,” (“EPS”) which requires presentation of basic EPS on the face of the income statement for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation. In the accompanying financial statements, basic earnings (loss) per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the year. 2021 2020 Net income $ 1,086,400 $ 4,968,070 Weighted average number of common stock outstanding - basic and diluted 1,701,181,423 1,701,181,423 Net income per share - basic and diluted $ 0.00 * $ 0.00 * * Less than $0.01 per share The calculation of basic net income per share of common stock is based on the net income for the years ended December 31, 2021 and 2020 and the weighted average number of ordinary shares outstanding. For the years ended December 31, 2021 and 2020, the Company has no potentially dilutive securities, such as options or warrants, currently issued and outstanding. |
Segments | Segments The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. Management, including the chief operating decision maker, reviews operating results solely by monthly revenue of marketing consultation services and operating results of the Company and, as such, the Company has determined that the Company has one operating segment (provision of consulting, sourcing and marketing services, and digital training related services in China) as defined by ASC Topic 280 “Segment Reporting”. | Segments The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. Management, including the chief operating decision maker, reviews operating results solely by monthly revenue of marketing consultation services and operating results of the Company and, as such, the Company has determined that the Company has one operating segment (provision of consulting, sourcing and marketing services, and digital training related services in China) as defined by ASC Topic 280 “Segment Reporting”. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents. As of September 30, 2022 and December 31, 2021, $6,330,431 and $7,649,129 of the Company’s cash and cash equivalents, respectively were held at financial institutions and online payment platforms located in the PRC and Hong Kong that management believes to be of high credit quality. The Company has not experienced any losses on cash and cash equivalents to date. The Company does not require collateral or other securities to support financial instruments that are subject to credit risk. The Company operates principally in the PRC and Hong Kong and grants credit to its customers in these geographic regions. Although the PRC is economically stable, it is always possible that unanticipated events in foreign countries could disrupt the Company’s operations. | Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents. As of December 31, 2021 and 2020, $7,649,129 and $3,846,470 of the Company’s cash and cash equivalents, respectively were held at financial institutions and online payment platforms located in the PRC and Hong Kong that management believes to be of high credit quality. The Company has not experienced any losses on cash and cash equivalents to date. The Company does not require collateral or other securities to support financial instruments that are subject to credit risk. The Company operates principally in the PRC and Hong Kong and grants credit to its customers in these geographic regions. Although the PRC is economically stable, it is always possible that unanticipated events in foreign countries could disrupt the Company’s operations. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments ASC Topic 820, Fair Value Measurement and Disclosures ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. Valuation of debt products depends upon a number of factors, including prevailing interest rates for like securities, expected volatility in future interest rates, and other relevant terms of the debt. Other factors that may be considered include the borrower’s ability to adequately service its debt, the fair market value of the borrower in relation to the face amount of its outstanding debt and the quality of collateral securing the Company’s debt investments. The fair value of these debt products classified as Level 2 are established by reference to the prices quoted by respective fund administrators. The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, accounts receivable, other receivables, loan to a related company, accounts payable and other payables, amounts due to a director and a shareholder and borrowings approximate their fair values because of the short maturity of these instruments or the rate of interest of these instruments approximate the market rate of interest. | Fair Value of Financial Instruments ASC Topic 820, Fair Value Measurement and Disclosures ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. Valuation of debt products depends upon a number of factors, including prevailing interest rates for like securities, expected volatility in future interest rates, and other relevant terms of the debt. Other factors that may be considered include the borrower’s ability to adequately service its debt, the fair market value of the borrower in relation to the face amount of its outstanding debt and the quality of collateral securing the Company’s debt investments. The fair value of these debt products classified as Level 2 are established by reference to the prices quoted by respective fund administrators. The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, accounts receivable, other receivables, loan to a related company, accounts payable and other payables, amounts due to a director and a shareholder and borrowings approximate their fair values because of the short maturity of these instruments or the rate of interest of these instruments approximate the market rate of interest. |
Comprehensive Income | Comprehensive Income Comprehensive income is defined as the change in equity of a company during a period from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. Accumulated other comprehensive income includes cumulative foreign currency translation adjustment. | Comprehensive Income Comprehensive income is defined as the change in equity of a company during a period from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. Accumulated other comprehensive income includes cumulative foreign currency translation adjustment. |
Organization and Business (Tabl
Organization and Business (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
Schedule of provision of digital marketing consultation services | Company name Place/date of incorporation Principal activities 1. Entrepreneurship World Technology Holding Group Company Limited Hong Kong/May 15, 2019 Provision of consulting and promotional services 2. Xian Yunchuang Space Information Technology Co., Ltd. The People’s Republic of China (“PRC”)/October 18, 2019 Provision of digital marketing consultation services 3. Xian Yunchuang Space Information Technology Co., Ltd, BaiYin Branch PRC/May 7, 2020 Provision of digital marketing consultation services | Company name Place/date of incorporation Principal activities 1. Entrepreneurship World Technology Holding Group Company Limited Hong Kong/May 15, 2019 Provision of consulting and promotional services 2. Xian Yunchuang Space Information Technology Co., Ltd. The People’s Republic of China (“PRC”)/October 18, 2019 Provision of digital marketing consultation services 3. Xian Yunchuang Space Information Technology Co., Ltd, BaiYin Branch PRC/May 7, 2020 Provision of digital marketing consultation services |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
Schedule of plant and equipment estimated useful lives | Estimated Motor vehicle 4 – 5 Office equipment 3 | Estimated Motor vehicle 4 - 5 |
Schedule of revenue by major service line | Three months ended Nine months ended 2022 2021 2022 2021 Consultancy services 699,257 1,554,834 2,211,307 4,362,581 Sourcing and marketing services 102,527 67,637 372,475 116,834 Digital training related services - - 267,874 - $ 801,784 $ 1,622,471 $ 2,851,656 $ 4,479,415 | 2021 2020 Consultancy services 4,237,261 8,984,967 Sourcing and marketing services 223,620 202,056 Digital training related services 1,176,515 - $ 5,637,396 $ 9,187,023 |
Schedule of revenue by recognition over time vs point in time | Three months ended Nine months ended 2022 2021 2022 2021 Revenue recognized at a point in time 801,784 1,622,471 2,851,656 4,479,415 Revenue recognized over time - - - - $ 801,784 $ 1,622,471 $ 2,851,656 $ 4,479,415 | 2021 2020 Revenue recognized at a point in time 5,637,396 9,100,334 Revenue recognized over time - 86,689 $ 5,637,396 $ 9,187,023 |
Schedule of revenue recorded on a gross vs net basis | Three months ended Nine months ended 2022 2021 2022 2021 Revenue recorded on a gross basis 699,257 1,554,834 2,479,181 4,362,581 Revenue recorded on a net basis 102,527 67,637 372,475 116,834 $ 801,784 $ 1,622,471 $ 2,851,656 $ 4,479,415 | 2021 2020 Revenue recorded on a gross basis 5,413,776 8,984,967 Revenue recorded on a net basis 223,620 202,056 $ 5,637,396 $ 9,187,023 |
Schedule of contract liabilities consist of deferred revenue | September 30, December 31, Balance at beginning of period $ 216,142 $ - Service fees collected 224,435 1,377,349 Refunded (152,888 ) - Service revenue earned (267,874 ) (1,176,515 ) Exchange realignment (19,815 ) 15,308 Balance at end of period $ - $ 216,142 | 2021 2020 Balance at beginning of year $ - $ 87,136 Service fees collected 1,377,349 - Service revenue earned (1,176,515 ) (86,689 ) Exchange realignment 15,308 (447 ) Balance at end of year $ 216,142 $ - |
Schedule of foreign exchange transactions | Nine months ended September 30, 2022 Balance sheet, except for equity accounts RMB 7.1160 to US$1.00 Income statement and cash flows RMB 6.6013 to US$1.00 Nine months ended September 30, 2021 Balance sheet, except for equity accounts RMB 6.4466 to US$1.00 Income statement and cash flows RMB 6.4714 to US$1.00 | Year ended December 31, 2020 Balance sheet, except for equity accounts RMB 6.5401 to US$1.00 Income statement and cash flows RMB 6.9021 to US$1.00 Year ended December 31, 2021 Balance sheet, except for equity accounts RMB 6.3559 to US$1.00 Income statement and cash flows RMB 6.4519 to US$1.00 |
Schedule of basic earnings (loss) per share | Three months ended Nine months ended 2022 2021 2022 2021 Net (loss) income $ (31,999 ) $ 207,551 $ 625,024 $ 1,296,228 Weighted average number of common stock outstanding - basic and diluted 1,701,181,423 1,701,181,423 1,701,181,423 1,701,181,423 Net (loss) income per share - basic and diluted $ 0.00 * $ 0.00 * $ 0.00 * $ 0.00 * | 2021 2020 Net income $ 1,086,400 $ 4,968,070 Weighted average number of common stock outstanding - basic and diluted 1,701,181,423 1,701,181,423 Net income per share - basic and diluted $ 0.00 * $ 0.00 * |
Debt Products (Tables)
Debt Products (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Products [Abstract] | |
Schedule of debt products | 2021 2020 Debt products issued by bank, at fair value $ - $ 3,058,041 |
Plant and Equipment (Tables)
Plant and Equipment (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Schedule of plant and equipment | September 30, December 31, Motor vehicle $ 357,927 $ 400,732 Office equipment 9,041 - 366,968 400,732 Less: Accumulated depreciation (164,537 ) (119,284 ) Plant and equipment, net $ 202,431 $ 281,448 | 2021 2020 Motor vehicle $ 400,732 $ 389,443 Less: Accumulated depreciation (119,284 ) (33,834 ) Plant and equipment, net $ 281,448 $ 355,609 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Related Party Transactions [Abstract] | ||
Schedule of related party transaction | 2021 2020 Sourcing and marketing services income generated from - Xian CNT $ - $ 49,259 Purchase of motor vehicles from - Ms. Hanye Chang - 86,931 - Mr. Yong Chang - 45,639 - Mr. Jianyong Li - 28,977 Interest income - Baiyin Wujinxia 5,794 3,888 IT expenses - Yuanchuang Tribe 60,718 - - Yuanchuang Federation 86,718 - | |
Schedule of related party balances | Three months ended Nine months ended 2022 2021 2022 2021 Interest income Baiyin Wujinxia $ - $ - $ - $ 5,777 September 30, December 31, Amount due to a director - Mr. Guolin Tao $ 167,935 $ 171,443 Accounts payable - Yuanchuang Tribe $ - $ 16,135 - Yuanchuang Federation - 21,390 | 2021 2020 Loan to a related company - Baiyin Wujinxia $ - $ 186,796 Amount due to a director - Mr. Guolin Tao $ 171,443 $ 51,309 Amount due to a shareholder - New Finance Consultants Limited $ - $ 53,000 Accounts payable - Yuanchuang Tribe $ 16,135 $ - - Yuanchuang Federation 21,390 - |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Accounts Receivable, Net [Abstract] | ||
Schedule of accounts receivable net | September 30, December 31, Account receivables $ 287,436 $ 67,940 Less: Allowance for doubtful accounts - - $ 287,436 $ 67,940 | 2021 2020 Account receivables $ 67,940 $ 202,183 Less: Allowance for doubtful accounts - - $ 67,940 $ 202,183 |
Other Receivables and Prepaym_2
Other Receivables and Prepayments (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | ||
Schedule of other receivables and prepayments | September 30, December 31, Deposits and other receivables $ 25,297 $ 18,430 Prepayments 15,771 37,495 $ 41,068 $ 55,925 | 2021 2020 Deposits and other receivables $ 18,430 $ 19,027 Prepayments 37,495 31,279 $ 55,925 $ 50,306 |
Other payables and accrued li_2
Other payables and accrued liabilities (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Disclosure Text Block Supplement [Abstract] | ||
Schedule of accrued liabilities and other payables | September 30, December 31, Other payables $ 84,350 $ 83,494 Salary payable 64,757 105,294 Accrued audit fees 25,000 130,000 Other accrued expenses 51,012 83,370 $ 225,119 $ 402,158 | 2021 2020 Other payables 83,494 110,599 Salary payable 105,294 229,010 Accrued audit fees 130,000 221,000 Other accrued expenses 83,370 57,899 $ 402,158 $ 618,508 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Schedule of income (loss) before income taxes | Three months ended Nine months ended 2022 2021 2022 2021 Tax jurisdictions from: - Local $ (228,524 ) $ (156,168 ) $ (481,680 ) $ (344,756 ) - Foreign, representing: HK (175,426 ) (3,278 ) (195,339 ) (26,845 ) PRC 507,735 568,786 1,897,199 2,539,892 Income before income taxes $ 103,785 $ 409,340 $ 1,220,180 $ 2,168,291 | 2021 2020 Tax jurisdictions from: - Local (791,930 ) (365,055 ) - Foreign, representing: HK (53,508 ) 45,181 PRC 2,920,754 7,792,789 Income before income taxes $ 2,075,316 $ 7,472,915 |
Schedule of income tax expense | Three months ended Nine months ended 2022 2021 2022 2021 Current tax: Hong Kong - (841 ) - (841 ) China $ 127,727 $ 154,923 $ 463,206 $ 676,433 Deferred tax Hong Kong 8,641 55,683 133,454 206,359 China (584 ) (7,976 ) (1,504 ) (9,888 ) Total $ 135,784 $ 201,789 $ 595,156 $ 872,063 | 2021 2020 Current tax: Hong Kong (840 ) 2,433 China 768,717 1,950,407 Deferred tax China 221,039 552,005 Total $ 988,916 $ 2,504,845 |
Schedule of provision for income taxes | Three months ended Nine months ended 2022 2021 2022 2021 Income before income tax $ 103,785 $ 409,340 $ 1,220,180 $ 2,168,291 Statutory income tax rate 21 % 21 % 21 % 21 % Income tax credit computed at statutory income rate 21,795 85,962 256,238 455,342 Reconciling items: Non-deductible expenses 75,971 37,816 134,157 106,185 Rate differential in different tax jurisdictions 28,203 23,169 84,678 105,018 Deferred tax provided on dividends withholding tax of PRC subsidiaries 9,561 55,683 133,454 206,359 Over-provision in prior year 254 (841 ) (13,371 ) (841 ) Income tax (credit) expense $ 135,784 $ 201,789 $ 595,156 $ 872,063 | 2021 2020 Income before income tax 2,075,316 7,472,915 Statutory income tax rate 21 % 21 % Income tax credit computed at statutory income rate 435,816 1,569,312 Reconciling items: Non-deductible expenses (income), net 186,907 78,866 Effect of tax reliefs granted to Hong Kong subsidiary - (1,289 ) Under-provision in prior period 11,198 - Rate differential in different tax jurisdictions 119,238 305,951 Deferred tax provided on dividends withholding tax of PRC subsidiaries 235,757 552,005 Income tax expense $ 988,916 $ 2,504,845 |
Schedule of deferred tax assets and liabilities | September 30, December 31, Deferred tax assets: Accelerated depreciation $ 2,984 $ 1,778 Deductible temporarily difference arising from other payable 12,151 13,605 Less: Net off with deferred tax liabilities for financial reporting purposes (15,135 ) (15,383 ) Net total deferred tax assets $ - $ - Deferred tax liabilities: Undistributed profits of a PRC subsidiary $ 312,335 $ 357,929 Less: Net off with deferred tax assets for financial reporting purposes (15,135 ) (15,383 ) Net total deferred tax liabilities $ 297,200 $ 342,546 | 2021 2020 Deferred tax assets: Accelerated depreciation $ 1,778 $ 429 Deductible temporarily difference arising from other payable 13,605 - Less: Net off with deferred tax liabilities for financial reporting purposes (15,383 ) (429 ) Net total deferred tax assets - - Deferred tax liabilities: Undistributed profits of a PRC subsidiary 357,929 626,975 Less: Net off with deferred tax assets for financial reporting purposes (15,383 ) (429 ) Net total deferred tax liabilities $ 342,546 $ 626,546 |
Lease (Tables)
Lease (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Lease [Abstract] | ||
Schedule of operating lease expense | Three months ended Nine months ended 2022 2021 2022 2021 Operating lease cost – straight line 14,406 15,277 44,925 41,462 Total lease expense $ 14,406 15,277 $ 44,925 $ 41,462 | 2021 2020 Operating lease cost – straight line $ 39,367 $ 31,350 Total lease expense $ 39,367 $ 31,350 |
Schedule of maturities of lease liabilities | Operating Remainder of 2022 $ 13,892 2023 55,567 2024 27,784 2025 - Thereafter - Total undiscounted cash flows 97,243 Less: imputed interest (4,096 ) Present value of lease liabilities $ 93,147 | Operating 12 months ending December 31, 2022 $ 62,212 2023 62,212 2024 31,106 2025 - Thereafter - Total undiscounted cash flows 155,530 Less: imputed interest (8,832 ) Present value of lease liabilities $ 146,698 |
Schedule of lease term and discount rate | September 30, Weighted-average remaining lease term - year 1.75 Weighted-average discount rate (%) 4.90 % | December 31, Weighted-average remaining lease term - year 2.5 Weighted-average discount rate (%) 4.90 % |
Schedule of cash flow information | Nine months ended 2022 2021 Operating cash outflows from operating lease $ 44,925 $ 45,827 |
Certain Risks and Concentrati_2
Certain Risks and Concentrations (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | ||
Schedule of customers that individually comprised 10% or more of net accounts receivable | Three months ended 2022 2021 Customer A (note) $ 437,679 55 % $ * * % Customer B * * % 210,337 13 % Customer C * * % 170,019 10 % Customer D * * % 172,765 11 % Nine months ended 2022 2021 Customer A (note) $ 1,284,209 45 % $ * * % Customer B * * % 1,321,937 30 % Customer C * * % 905,215 20 % Customer D * * % 627,321 14 % | 2021 2020 Customer A $ 1,438,514 26 % $ 4,995,641 54 % Customer B (Note) 1,008,417 18 % 1,586,867 17 % Customer C 730,829 13 % * * |
Schedule of customers that individually comprised 10% or more of net accounts receivable | September 30, December 31, Customer A (note i) $ 128,779 45 % $ 15,864 23 % Customer E 59,413 21 % * * % Customer F 46,347 16 % * * % Customer G * * % 18,408 27 % Customer H * * % 20,272 30 % | 2021 2020 Customer A $ * * % $ 57,608 28 % Customer B (Note) * * % 39,291 19 % Customer C * * % * * % Customer D 20,272 30 % * * % Customer E 18,408 27 % 31,379 16 % Customer F 15,864 23 % * * % |
Schedule of the following service vendors that individually comprised 10% or more of cost of revenue | Nine months ended 2022 2021 Service vendor A (note) $ 135,223 24 % $ 400,105 31 % | 2021 2020 Service vendor $ 579,959 32 % $ * * Service vendor B 186,934 10 % * * |
Schedule of service vendors that individually comprised 10% or more of accounts payable | September 30, December 31, Service vendor B $ * * % $ 49,560 43 % Service vendor C * * % 21,390 18 % Service vendor D * * % 19,308 17 % Service vendor E * * % 16,135 14 % | 2021 2020 Service vendor B $ 49,560 43 % $ * * Service vendor C (Note) 21,390 18 % * * Service vendor D 19,308 17 % * * Service vendor E (Note) 16,135 14 % * * |
Organization and Business (Deta
Organization and Business (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | May 15, 2019 | Mar. 05, 2019 | Feb. 27, 2019 | Dec. 28, 2018 | Dec. 18, 2018 | Dec. 11, 2018 | |
Organization and Business (Details) [Line Items] | ||||||||||||
Common shares (in Shares) | 1,000 | 1,000 | ||||||||||
Cash consideration | ||||||||||||
Additional paid-up capital | $ 328,423 | |||||||||||
Common stock, shares authorized (in Shares) | 1,800,000,000 | |||||||||||
Common stock, shares issued (in Shares) | 1,590,605,141 | |||||||||||
Aggregate fair value | $ 135,000 | |||||||||||
Operating revenue | $ 801,784 | $ 1,622,471 | $ 2,851,656 | $ 4,479,415 | $ 5,637,396 | $ 9,187,023 | ||||||
Representing a decrease | 36.30% | 36.30% | 38.60% | |||||||||
Decrease percentage | 50.60% | |||||||||||
Stock Purchase Agreements [Member] | ||||||||||||
Organization and Business (Details) [Line Items] | ||||||||||||
Sale and purchase agreements, description | On May 15, 2019, MXD Inc., a private company incorporated in the State of Colorado, entered into certain Sale and Purchase Agreements (the “Stock Purchase Agreements”), with Tethys Fountain Limited, New Finance Consultants Limited, Jia Wang, Jianyong Li, Haijun Jiang, Xuebin Wu and Fanfan Chen (collectively, the “Purchasers”), to transfer all its 1,590,605,141 shares of common stock of the Company to the Purchasers in exchange for an aggregate purchase price of $135,000. Upon the closing of the Stock Purchase Agreements, the Purchasers collectively owned 93.5% of the issued and outstanding shares of the Company’s common stock, and Tethys Fountain Limited became the controlling shareholder of the Company. | Immediately after the Issuance, MXD entered into certain Sale and Purchase Agreements, dated May 15, 2019 (the “Stock Purchase Agreements”), with Tethys Fountain Limited, New Finance Consultants Limited, Jia Wang, Jianyong Li, Haijun Jiang, Xuebin Wu and Fanfan Chen (collectively, the “Purchasers”), to transfer all its 1,590,605,141 shares of common stock of the Company to the Purchasers in exchange for an aggregate purchase price of $135,000. Upon the closing of the Stock Purchase Agreements, the Purchasers collectively owned 93.5% of the issued and outstanding shares of the Company’s common stock, and Tethys Fountain Limited became the controlling shareholder of the Company. | ||||||||||
Series A Preferred Stock [Member] | ||||||||||||
Organization and Business (Details) [Line Items] | ||||||||||||
Preferred stock, shares issued (in Shares) | 1,000,000 | 1,000,000 | ||||||||||
Series B Preferred Stock [Member] | ||||||||||||
Organization and Business (Details) [Line Items] | ||||||||||||
Preferred stock, shares issued (in Shares) | 50,000 | 50,000 |
Organization and Business (De_2
Organization and Business (Details) - Schedule of provision of digital marketing consultation services | 12 Months Ended |
Dec. 31, 2021 | |
Entrepreneurship World Technology Holding Group Company Limited [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Place/date of incorporation | Hong Kong/May 15, 2019 |
Principal activities | Provision of consulting and promotional services |
Xian Yunchuang Space Information Technology Co., Ltd. [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Place/date of incorporation | The People’s Republic of China (“PRC”)/October 18, 2019 |
Principal activities | Provision of digital marketing consultation services |
Xian Yunchuang Space Information Technology Co., Ltd, BaiYin Branch [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Place/date of incorporation | PRC/May 7, 2020 |
Principal activities | Provision of digital marketing consultation services |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||||||
Voting power percentage | 50% | 50% | ||||
Cash held in accounts | $ 599 | $ 599 | $ 161,188 | |||
Derived services revenues | 702,371 | $ 1,515,371 | 2,207,029 | $ 4,268,054 | 4,152,617 | 8,592,970 |
Employee benefit expense | $ 17,744 | $ 31,273 | $ 47,963 | $ 78,957 | 124,386 | 4,911 |
Husing funds | $ 11,014 | |||||
Tax benefit percentage | 50% | 50% | ||||
Per share price (in Dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||
Cash and cash equivalents | $ 6,330,431 | $ 6,330,431 | $ 7,649,129 | $ 3,846,470 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of plant and equipment estimated useful lives - Motor vehicle [Member] | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Minimum [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of plant and equipment estimated useful lives [Line Items] | ||
Estimated useful lives (years) | 4 years | 4 years |
Maximum [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of plant and equipment estimated useful lives [Line Items] | ||
Estimated useful lives (years) | 5 years | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of revenue by major service line - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Consultancy services [Member] | ||||||
Revenue from External Customer [Line Items] | ||||||
Revenue by major service line | $ 699,257 | $ 1,554,834 | $ 2,211,307 | $ 4,362,581 | $ 4,237,261 | $ 8,984,967 |
Sourcing and Marketing Services [Member] | ||||||
Revenue from External Customer [Line Items] | ||||||
Revenue by major service line | 102,527 | 67,637 | 372,475 | 116,834 | 223,620 | 202,056 |
Digital training related services [Member] | ||||||
Revenue from External Customer [Line Items] | ||||||
Revenue by major service line | 267,874 | 1,176,515 | ||||
Revenue by Major Service Line [Member] | ||||||
Revenue from External Customer [Line Items] | ||||||
Revenue by major service line | $ 801,784 | $ 1,622,471 | $ 2,851,656 | $ 4,479,415 | $ 5,637,396 | $ 9,187,023 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of revenue by recognition over time vs point in time - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||||||
Revenue by recognition over time vs point in time | $ 801,784 | $ 1,622,471 | $ 2,851,656 | $ 4,479,415 | $ 5,637,396 | $ 9,187,023 |
Revenue recognized at a point in time [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue by recognition over time vs point in time | 5,637,396 | 9,100,334 | ||||
Revenue recognized over time [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue by recognition over time vs point in time | $ 86,689 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details) - Schedule of revenue recorded on a gross vs net basis - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Revenue Recorded on AGross Vs Net Basis [Abstract] | ||||||
Revenue recorded on a gross basis | $ 699,257 | $ 1,554,834 | $ 2,479,181 | $ 4,362,581 | $ 5,413,776 | $ 8,984,967 |
Revenue recorded on a net basis | 102,527 | 67,637 | 372,475 | 116,834 | 223,620 | 202,056 |
Total | $ 801,784 | $ 1,622,471 | $ 2,851,656 | $ 4,479,415 | $ 5,637,396 | $ 9,187,023 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Details) - Schedule of contract liabilities consist of deferred revenue - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Contract Liabilities Consist Of Deferred Revenue [Abstract] | |||
Balance at beginning of year | $ 216,142 | $ 87,136 | |
Service fees collected | 224,435 | 1,377,349 | |
Service revenue earned | (267,874) | (1,176,515) | (86,689) |
Exchange realignment | $ (19,815) | 15,308 | (447) |
Balance at end of year | $ 216,142 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Details) - Schedule of foreign exchange transactions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Foreign Exchange Transactions [Abstract] | ||||
Balance sheet, except for equity accounts | RMB 7.1160 to US$1.00 | RMB 6.4466 to US$1.00 | RMB 6.3559 to US$1.00 | RMB 6.5401 to US$1.00 |
Income statement and cash flows | RMB 6.6013 to US$1.00 | RMB 6.4714 to US$1.00 | RMB 6.4519 to US$1.00 | RMB 6.9021 to US$1.00 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Details) - Schedule of basic earnings (loss) per share - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | ||||||
Schedule of Basic Earnings Loss Per Share [Abstract] | |||||||||||||||
Net income (in Dollars) | $ (31,999) | $ 265,850 | $ 391,173 | $ 207,551 | $ 122,041 | $ 966,636 | $ 625,024 | $ 1,296,228 | $ 1,086,400 | $ 4,968,070 | |||||
Weighted average number of common stock outstanding | |||||||||||||||
Weighted average number of common stock outstanding - basic and diluted (in Shares) | 1,701,181,423 | 1,701,181,423 | 1,701,181,423 | 1,701,181,423 | 1,701,181,423 | 1,701,181,423 | |||||||||
Net income per share | |||||||||||||||
Net income per share - basic and diluted | $ 0 | [1] | $ 0 | [1] | $ 0 | [1] | $ 0 | [1] | $ 0 | [1] | $ 0 | ||||
[1] Less than $0.01 per share |
Debt Products (Details)
Debt Products (Details) - USD ($) | Jul. 15, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Products (Details) [Line Items] | |||
Interest rate | 2.35% | ||
Debt product (in Dollars) | $ 2,789,855 | ||
Redeemed assets (in Dollars) | $ 2,059 | ||
Minimum [Member] | |||
Debt Products (Details) [Line Items] | |||
Interest rate | 2.45% | ||
Maximum [Member] | |||
Debt Products (Details) [Line Items] | |||
Interest rate | 3.02% |
Debt Products (Details) - Sched
Debt Products (Details) - Schedule of debt products - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Debt Products [Abstract] | ||
Debt products issued by bank, at fair value | $ 3,058,041 |
Plant and Equipment (Details)
Plant and Equipment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||||||
Depreciation expenses | $ 20,194 | $ 20,743 | $ 62,516 | $ 62,222 | $ 83,212 | $ 32,059 |
Plant and Equipment (Details) -
Plant and Equipment (Details) - Schedule of plant and equipment - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Plant and Equipment [Abstract] | |||
Motor vehicle | $ 357,927 | $ 400,732 | $ 389,443 |
Less: Accumulated depreciation | (164,537) | (119,284) | (33,834) |
Plant and equipment, net | $ 202,431 | $ 281,448 | $ 355,609 |
Related Party Transactions (Det
Related Party Transactions (Details) | 1 Months Ended | 9 Months Ended | 12 Months Ended | 14 Months Ended | 15 Months Ended | 20 Months Ended | |||||||
Nov. 01, 2019 USD ($) | Nov. 01, 2019 CNY (¥) | Nov. 01, 2019 USD ($) | Nov. 01, 2019 CNY (¥) | Jan. 26, 2021 | Sep. 30, 2022 | Dec. 31, 2021 | Feb. 10, 2021 | Jan. 25, 2021 | Sep. 10, 2021 | Dec. 31, 2020 USD ($) | Nov. 29, 2019 | Oct. 31, 2019 | |
Related Party Transactions (Details) [Line Items] | |||||||||||||
Bears fixed interest | 4.75% | 4.75% | 4.75% | ||||||||||
Equity interest percentage | 50% | 50% | |||||||||||
Debt Instrument, Annual Principal Payment (in Dollars) | $ 186,796 | ||||||||||||
Mr. Guolin Tao [Member] | |||||||||||||
Related Party Transactions (Details) [Line Items] | |||||||||||||
Equity interest percentage | 29.99% | ||||||||||||
Xian Yuanchuang Federation Information Technology Co., Ltd. [Member] | |||||||||||||
Related Party Transactions (Details) [Line Items] | |||||||||||||
Equity interest percentage | 100% | ||||||||||||
Business Combination [Member] | Mr. Guolin Tao [Member] | |||||||||||||
Related Party Transactions (Details) [Line Items] | |||||||||||||
Equity interest percentage | 29.99% | ||||||||||||
Business Combination [Member] | Xian Yuanchuang Federation Information Technology Co., Ltd. [Member] | |||||||||||||
Related Party Transactions (Details) [Line Items] | |||||||||||||
Equity interest percentage | 100% | ||||||||||||
Xian CNT [Member] | |||||||||||||
Related Party Transactions (Details) [Line Items] | |||||||||||||
Shareholders percentage | 90% | ||||||||||||
Mr. Tao & Ms. Tao Zhiyan [Member] | |||||||||||||
Related Party Transactions (Details) [Line Items] | |||||||||||||
Shareholders percentage | 45% | ||||||||||||
Mr. Guolin Tao & Mr. Pan Chang [Member] | |||||||||||||
Related Party Transactions (Details) [Line Items] | |||||||||||||
Shareholders percentage | 45% | ||||||||||||
Mr. Tao [Member] | |||||||||||||
Related Party Transactions (Details) [Line Items] | |||||||||||||
Equity interest percentage | 60% | 60% | |||||||||||
Mr. Tao [Member] | Business Combination [Member] | |||||||||||||
Related Party Transactions (Details) [Line Items] | |||||||||||||
Equity interest percentage | 60% | ||||||||||||
New Finance Consultants Limited [Member] | Business Combination [Member] | |||||||||||||
Related Party Transactions (Details) [Line Items] | |||||||||||||
Equity interest percentage | 8.30% | 8.30% | |||||||||||
Baiyin Wujinxia [Member] | |||||||||||||
Related Party Transactions (Details) [Line Items] | |||||||||||||
Total amount of loan | $ 305,804 | ¥ 2,000,000 | $ 305,804 | ¥ 2,000,000 |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of related party transaction - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Xian CNT [Member] | ||
Sourcing and marketing services income generated from | ||
Sourcing and marketing services income | $ 49,259 | |
Ms. Hanye Chang [Member] | ||
Purchase of motor vehicles from | ||
Purchase of motor vehicles | 86,931 | |
Mr. Yong Chang [Member] | ||
Purchase of motor vehicles from | ||
Purchase of motor vehicles | 45,639 | |
Mr. Jianyong Li [Member] | ||
Purchase of motor vehicles from | ||
Purchase of motor vehicles | 28,977 | |
Baiyin Wujinxia [Member] | ||
Interest income | ||
Interest income | 5,794 | 3,888 |
Yuanchuang Tribe [Member] | ||
IT expenses | ||
IT expenses | 60,718 | |
Yuanchuang Federation [Member] | ||
IT expenses | ||
IT expenses | $ 86,718 |
Related Party Transactions (D_3
Related Party Transactions (Details) - Schedule of related party balances - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Baiyin Wujinxia [Member] | |||
Loan to a related company | |||
Loan to a related company | $ 186,796 | ||
Mr. Guolin Tao [Member] | |||
Amount due to a director | |||
Amount due to a director | 171,443 | 51,309 | |
New Finance Consultants Limited [Member] | |||
Amount due to a shareholder | |||
Amount due to a shareholder | $ 53,000 | ||
Yuanchuang Tribe [Member] | |||
Accounts payable | |||
Accounts payable | 16,135 | ||
Yuanchuang Federation [Member] | |||
Accounts payable | |||
Accounts payable | $ 21,390 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - Schedule of accounts receivable net - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of accounts receivable net [Abstract] | |||
Account receivables | $ 287,436 | $ 67,940 | $ 202,183 |
Less: Allowance for doubtful accounts | |||
Total | $ 287,436 | $ 67,940 | $ 202,183 |
Other Receivables and Prepaym_3
Other Receivables and Prepayments (Details) - Schedule of other receivables and prepayments - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Other Receivables and Prepayments [Abstract] | |||
Deposits and other receivables | $ 25,297 | $ 18,430 | $ 19,027 |
Prepayments | 15,771 | 37,495 | 31,279 |
Total other receivables and prepayments | $ 41,068 | $ 55,925 | $ 50,306 |
Loan Receivables (Details)
Loan Receivables (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Feb. 08, 2021 | Sep. 29, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Feb. 07, 2022 | |
Loan Receivables (Details) [Line Items] | ||||||||
Loan amount | $ 500,000 | $ 983,699 | ||||||
Interest bearing percentage | 7% | 10% | ||||||
Loan interest income | $ 0 | $ 4,093 | $ 0 | $ 23,678 | $ 23,660 | |||
Forecast [Member] | ||||||||
Loan Receivables (Details) [Line Items] | ||||||||
Interest bearing percentage | 10% |
Other payables and accrued li_3
Other payables and accrued liabilities (Details) - Schedule of accrued liabilities and other payables - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Accrued Liabilities and Other Payables [Abstract] | |||
Other payables | $ 84,350 | $ 83,494 | $ 110,599 |
Salary payable | 64,757 | 105,294 | 229,010 |
Accrued audit fees | 25,000 | 130,000 | 221,000 |
Other accrued expenses | 51,012 | 83,370 | 57,899 |
Accrued liabilities and other payables | $ 225,119 | $ 402,158 | $ 618,508 |
Borrowings (Details)
Borrowings (Details) - 1 months ended Apr. 20, 2020 | USD ($) | HKD ($) |
Subordinated Borrowings [Abstract] | ||
Borrowings loan | $ 128,927 | $ 1,000,000 |
Common Stock (Details)
Common Stock (Details) - Common Stock [Member] - $ / shares | Mar. 05, 2019 | Apr. 21, 1999 |
Common Stock (Details) [Line Items] | ||
Common stock share authorized | 1,800,000,000 | 25,000,000 |
Common stock, par value | $ 0.0001 | $ 0.001 |
Statutory Reserves (Details)
Statutory Reserves (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Insurance [Abstract] | |||
Percentage of profit | 10% | 10% | |
Registered capital percentage | 50% | 50% | |
Statutory reserve | $ 65,911 | $ 65,911 | $ 65,911 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Jan. 01, 2019 | Sep. 30, 2022 USD ($) | Sep. 30, 2022 HKD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2021 HKD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 HKD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2021 HKD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2020 HKD ($) | |
Income Taxes (Details) [Line Items] | ||||||||||||
Income tax rate | 21% | |||||||||||
Estimated assessable profit | 16.50% | 16.50% | 16.50% | 16.50% | 16.50% | |||||||
Provision tax in percentage | 8.25% | 8.25% | 8.25% | |||||||||
Profits tax | $ 1,405 | $ 10,000 | $ 1,405 | $ 10,000 | $ 1,405 | $ 10,000 | $ 1,405 | $ 10,000 | $ 257,313 | $ 2,000,000 | ||
Operating waiver percent | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | |||
Operating amount | $ 1,287 | $ 10,000 | ||||||||||
Earnings percentage | 25% | 25% | 25% | |||||||||
Income tax percentage | 10% | 10% | 10% | |||||||||
Deferred tax liabilities | $ 312,335 | $ 357,929 | $ 626,975 | |||||||||
Assessable profits | $ 281,057 | $ 2,000,000 | 9 | $ 9 | ||||||||
PRC Subsidiary [Member] | ||||||||||||
Income Taxes (Details) [Line Items] | ||||||||||||
Profits tax | $ 3,123,352 | $ 3,579,288 | $ 6,269,752 |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of income (loss) before income taxes - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Tax jurisdictions from: | ||||||
- Local | $ (228,524) | $ (156,168) | $ (481,680) | $ (344,756) | $ (791,930) | $ (365,055) |
Income before income taxes | 103,785 | 409,340 | 1,220,180 | 2,168,291 | 2,075,316 | 7,472,915 |
HK [Member] | ||||||
Tax jurisdictions from: | ||||||
- Foreign | (175,426) | (3,278) | (195,339) | (26,845) | (53,508) | 45,181 |
PRC [Member] | ||||||
Tax jurisdictions from: | ||||||
- Foreign | $ 507,735 | $ 568,786 | $ 1,897,199 | $ 2,539,892 | $ 2,920,754 | $ 7,792,789 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of income tax expense - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Hong Kong [Member] | ||
Income Taxes (Details) - Schedule of income tax expense [Line Items] | ||
Current tax | $ (840) | $ 2,433 |
China [Member] | ||
Income Taxes (Details) - Schedule of income tax expense [Line Items] | ||
Current tax | 768,717 | 1,950,407 |
Deferred tax | 221,039 | 552,005 |
Total | $ 988,916 | $ 2,504,845 |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of provision for income taxes - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Provision for Income Taxes [Abstract] | ||||||
Income before income tax | $ 103,785 | $ 409,340 | $ 1,220,180 | $ 2,168,291 | $ 2,075,316 | $ 7,472,915 |
Statutory income tax rate | 21% | 21% | 21% | 21% | 21% | 21% |
Income tax credit computed at statutory income rate | $ 21,795 | $ 85,962 | $ 256,238 | $ 455,342 | $ 435,816 | $ 1,569,312 |
Non-deductible expenses (income), net | 75,971 | 37,816 | 134,157 | 106,185 | 186,907 | 78,866 |
Effect of tax reliefs granted to Hong Kong subsidiary | (1,289) | |||||
Under-provision in prior period | 11,198 | |||||
Rate differential in different tax jurisdictions | 28,203 | 23,169 | 84,678 | 105,018 | 119,238 | 305,951 |
Deferred tax provided on dividends withholding tax of PRC subsidiaries | 9,561 | 55,683 | 133,454 | 206,359 | 235,757 | 552,005 |
Income tax expense | $ 135,784 | $ 201,789 | $ 595,156 | $ 872,063 | $ 988,916 | $ 2,504,845 |
Income Taxes (Details) - Sche_4
Income Taxes (Details) - Schedule of deferred tax assets and liabilities - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | |||
Accelerated depreciation | $ 2,984 | $ 1,778 | $ 429 |
Deductible temporarily difference arising from other payable | 12,151 | 13,605 | |
Less: Net off with deferred tax liabilities for financial reporting purposes | (15,135) | (15,383) | (429) |
Net total deferred tax assets | |||
Deferred tax liabilities: | |||
Undistributed profits of a PRC subsidiary | 312,335 | 357,929 | 626,975 |
Less: Net off with deferred tax assets for financial reporting purposes | (15,135) | (15,383) | (429) |
Net total deferred tax liabilities | $ 297,200 | $ 342,546 | $ 626,546 |
Lease (Details)
Lease (Details) | 9 Months Ended | |||||
Jun. 10, 2021 USD ($) | Jun. 10, 2021 CNY (¥) | May 13, 2020 USD ($) | May 13, 2020 CNY (¥) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 CNY (¥) | |
Lease [Abstract] | ||||||
Rental payment | $ 5,107 | ¥ 32,951 | $ 4,092 | ¥ 28,244 | $ 4,992 | ¥ 32,951 |
Description of lease agreement | the Company entered into a lease agreement for office space in Xian, the PRC with a non-cancellable lease term, commencing on July 16, 2021 and expiring on July 15, 2024. | the Company entered into a lease agreement for office space in Xian, the PRC with a non-cancellable lease term, commencing on July 16, 2021 and expiring on July 15, 2024. |
Lease (Details) - Schedule of o
Lease (Details) - Schedule of operating lease expense - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Operating Lease Expense Abstract | ||||||
Operating lease cost – straight line | $ 14,406 | $ 15,277 | $ 44,925 | $ 41,462 | $ 39,367 | $ 31,350 |
Total lease expense | $ 14,406 | $ 15,277 | $ 44,925 | $ 41,462 | $ 39,367 | $ 31,350 |
Lease (Details) - Schedule of m
Lease (Details) - Schedule of maturities of lease liabilities - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule Of Maturities Of Lease Liabilities Abstract | ||
2022 | $ 13,892 | $ 62,212 |
2023 | 55,567 | 62,212 |
2024 | 27,784 | 31,106 |
2025 | ||
Thereafter | ||
Total undiscounted cash flows | 97,243 | 155,530 |
Less: imputed interest | (4,096) | (8,832) |
Present value of lease liabilities | $ 93,147 | $ 146,698 |
Lease (Details) - Schedule of l
Lease (Details) - Schedule of lease term and discount rate | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule Of Lease Term And Discount Rate Abstract | ||
Weighted-average remaining lease term - year | 1 year 9 months | 2 years 6 months |
Weighted-average discount rate (%) | 4.90% | 4.90% |
Certain Risks and Concentrati_3
Certain Risks and Concentrations (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Certain Risks and Concentrations (Details) [Line Items] | |||||
Percentage of net revenue | 10% | 9% | 10% | 10% | 10% |
Percentage of accounts receivable | 10% | 10% | |||
Percentage of cost of revenue | 10% | 10% | |||
Percentage of accounts payable | 10% | 10% | |||
Customer [Member] | |||||
Certain Risks and Concentrations (Details) [Line Items] | |||||
Percentage of net revenue | 10% | 10% | |||
Percentage of accounts receivable | 10% | ||||
Service Vendor [Member] | |||||
Certain Risks and Concentrations (Details) [Line Items] | |||||
Percentage of cost of revenue | 10% | ||||
Percentage of accounts payable | 10% |
Certain Risks and Concentrati_4
Certain Risks and Concentrations (Details) - Schedule of customers that individually comprised 10% or more of net revenue - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | ||||||
Customer A [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Net revenue | $ 437,679 | [1] | $ 1,284,209 | [1] | $ 1,438,514 | $ 4,995,641 | |||||
Net revenue percentage | 45% | [1] | |||||||||
Customer B [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Net revenue | [1] | 210,337 | [1] | $ 1,321,937 | 1,008,417 | 1,586,867 | |||||
Net revenue percentage | [1] | 30% | |||||||||
Customer C [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Net revenue | [1] | $ 170,019 | [1] | $ 905,215 | $ 730,829 | [1] | |||||
Net revenue percentage | [1] | 20% | |||||||||
Customer Concentration Risk [Member] | Customer A [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Net revenue percentage | 55% | [1] | 26% | 54% | |||||||
Customer Concentration Risk [Member] | Customer B [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Net revenue percentage | [1] | 13% | 18% | 17% | |||||||
Customer Concentration Risk [Member] | Customer C [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Net revenue percentage | [1] | 10% | 13% | [1] | |||||||
[1]Comprised less than 10% of net revenue for the respective period. |
Certain Risks and Concentrati_5
Certain Risks and Concentrations (Details) - Schedule of customers that individually comprised 10% or more of net accounts receivable - Previously Reported [Member] - USD ($) | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | ||||
Customer A [Member] | |||||
Certain Risks and Concentrations (Details) - Schedule of customers that individually comprised 10% or more of net accounts receivable [Line Items] | |||||
Accounts receivable | [1] | $ 57,608 | |||
Accounts receivable percentage | [1] | 28% | |||
Customer B [Member] | |||||
Certain Risks and Concentrations (Details) - Schedule of customers that individually comprised 10% or more of net accounts receivable [Line Items] | |||||
Accounts receivable | [1] | $ 39,291 | |||
Accounts receivable percentage | [1] | 19% | |||
Customer C [Member] | |||||
Certain Risks and Concentrations (Details) - Schedule of customers that individually comprised 10% or more of net accounts receivable [Line Items] | |||||
Accounts receivable | [1] | ||||
Accounts receivable percentage | [1] | ||||
Customer D [Member] | |||||
Certain Risks and Concentrations (Details) - Schedule of customers that individually comprised 10% or more of net accounts receivable [Line Items] | |||||
Accounts receivable | $ 20,272 | [1] | |||
Accounts receivable percentage | 30% | [1] | |||
Customer E [Member] | |||||
Certain Risks and Concentrations (Details) - Schedule of customers that individually comprised 10% or more of net accounts receivable [Line Items] | |||||
Accounts receivable | $ 18,408 | $ 31,379 | |||
Accounts receivable percentage | 27% | 16% | |||
Customer F [Member] | |||||
Certain Risks and Concentrations (Details) - Schedule of customers that individually comprised 10% or more of net accounts receivable [Line Items] | |||||
Accounts receivable | $ 15,864 | [1] | |||
Accounts receivable percentage | 23% | [1] | |||
[1]Comprised less than 10% of net account receivable for the respective period. |
Certain Risks and Concentrati_6
Certain Risks and Concentrations (Details) - Schedule of the following service vendors that individually comprised 10% or more of cost of revenue - USD ($) | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | [1] | |
Service vendor A [Member] | Revenue Benchmark [Member] | |||||
Certain Risks and Concentrations (Details) - Schedule of the following service vendors that individually comprised 10% or more of cost of revenue [Line Items] | |||||
Cost of revenue | $ 579,959 | ||||
Cost of revenue percentage | 32% | ||||
Service vendor A [Member] | Revenue, Segment Benchmark [Member] | |||||
Certain Risks and Concentrations (Details) - Schedule of the following service vendors that individually comprised 10% or more of cost of revenue [Line Items] | |||||
Cost of revenue | $ 135,223 | $ 400,105 | |||
Cost of revenue percentage | 24% | 31% | |||
Service vendor B [Member] | Revenue, Segment Benchmark [Member] | |||||
Certain Risks and Concentrations (Details) - Schedule of the following service vendors that individually comprised 10% or more of cost of revenue [Line Items] | |||||
Cost of revenue | $ 186,934 | ||||
Cost of revenue percentage | 10% | ||||
[1]Comprised less than 10% of cost of revenue for the respective period. |
Certain Risks and Concentrati_7
Certain Risks and Concentrations (Details) - Schedule of service vendors that individually comprised 10% or more of accounts payable - USD ($) | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | [1] | Dec. 31, 2021 | Dec. 31, 2020 | [1] | |
Service vendor B [Member] | |||||
Certain Risks and Concentrations (Details) - Schedule of service vendors that individually comprised 10% or more of accounts payable [Line Items] | |||||
Accounts payable | $ 49,560 | ||||
Accounts payable percentage | 43% | ||||
Service Vendor C [Member] | |||||
Certain Risks and Concentrations (Details) - Schedule of service vendors that individually comprised 10% or more of accounts payable [Line Items] | |||||
Accounts payable | $ 21,390 | ||||
Accounts payable percentage | 18% | ||||
Service Vendor D [Member] | |||||
Certain Risks and Concentrations (Details) - Schedule of service vendors that individually comprised 10% or more of accounts payable [Line Items] | |||||
Accounts payable | $ 19,308 | ||||
Accounts payable percentage | 17% | ||||
Service Vendor E [Member] | |||||
Certain Risks and Concentrations (Details) - Schedule of service vendors that individually comprised 10% or more of accounts payable [Line Items] | |||||
Accounts payable | $ 16,135 | ||||
Accounts payable percentage | 14% | ||||
[1]Comprised less than 10% of accounts payable for the respective period. |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Subsequent Events [Abstract] | ||
Digital training services percentage | 20.90% | 0% |
Total revenue | $ 1,176,515 | $ 0 |
Organization and Business (De_3
Organization and Business (Details) - Schedule of provision of digital marketing consultation services | 9 Months Ended |
Sep. 30, 2022 | |
Entrepreneurship World Technology Holding Group Company Limited [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Place/date of incorporation | Hong Kong/May 15, 2019 |
Principal activities | Provision of consulting and promotional services |
Xian Yunchuang Space Information Technology Co., Ltd [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Place/date of incorporation | The People’s Republic of China (“PRC”)/October 18, 2019 |
Principal activities | Provision of digital marketing consultation services |
Xian Yunchuang Space Information Technology Co., Ltd, BaiYin Branch [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Place/date of incorporation | PRC/May 7, 2020 |
Principal activities | Provision of digital marketing consultation services |
Summary of Significant Accou_11
Summary of Significant Accounting Policies (Details) - Schedule of plant and equipment estimated useful lives | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Motor vehicle [Member] | Minimum [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of plant and equipment estimated useful lives [Line Items] | ||
Estimated useful lives (years) | 4 years | 4 years |
Motor vehicle [Member] | Maximum [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of plant and equipment estimated useful lives [Line Items] | ||
Estimated useful lives (years) | 5 years | 5 years |
Office equipment [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of plant and equipment estimated useful lives [Line Items] | ||
Estimated useful lives (years) | 3 years |
Summary of Significant Accou_12
Summary of Significant Accounting Policies (Details) - Schedule of revenue by major service line - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Consultancy Services [Member] | ||||||
Revenue from External Customer [Line Items] | ||||||
Revenue by major service line | $ 699,257 | $ 1,554,834 | $ 2,211,307 | $ 4,362,581 | $ 4,237,261 | $ 8,984,967 |
Sourcing and Marketing Services [Member] | ||||||
Revenue from External Customer [Line Items] | ||||||
Revenue by major service line | 102,527 | 67,637 | 372,475 | 116,834 | 223,620 | 202,056 |
Digital Training Related Services [Member] | ||||||
Revenue from External Customer [Line Items] | ||||||
Revenue by major service line | 267,874 | 1,176,515 | ||||
Revenue by Major Service Line [Member] | ||||||
Revenue from External Customer [Line Items] | ||||||
Revenue by major service line | $ 801,784 | $ 1,622,471 | $ 2,851,656 | $ 4,479,415 | $ 5,637,396 | $ 9,187,023 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies (Details) - Schedule of revenue by recognition over time vs point in time - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||||||
Revenue by recognition over time vs point in time | $ 801,784 | $ 1,622,471 | $ 2,851,656 | $ 4,479,415 | $ 5,637,396 | $ 9,187,023 |
Transferred at Point in Time [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue by recognition over time vs point in time | 801,784 | 1,622,471 | 2,851,656 | 4,479,415 | ||
Transferred Over Time [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue by recognition over time vs point in time |
Summary of Significant Accou_14
Summary of Significant Accounting Policies (Details) - Schedule of revenue recorded on a gross vs net basis - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Revenue Recorded On A Gross Vs Net Basis [Abstract] | ||||||
Revenue recorded on a gross basis | $ 699,257 | $ 1,554,834 | $ 2,479,181 | $ 4,362,581 | $ 5,413,776 | $ 8,984,967 |
Revenue recorded on a net basis | 102,527 | 67,637 | 372,475 | 116,834 | $ 223,620 | $ 202,056 |
Total revenue | $ 801,784 | $ 1,622,471 | $ 2,851,656 | $ 4,479,415 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies (Details) - Schedule of contract liabilities consist of deferred revenue - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Contract Liabilities Consist Of Deferred Revenue Abstract | |||
Balance at beginning of period | $ 216,142 | ||
Service fees collected | 224,435 | 1,377,349 | |
Refunded | (152,888) | ||
Service revenue earned | (267,874) | (1,176,515) | (86,689) |
Exchange realignment | (19,815) | 15,308 | (447) |
Balance at end of period | $ 216,142 |
Summary of Significant Accou_16
Summary of Significant Accounting Policies (Details) - Schedule of foreign exchange transactions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Foreign Exchange Transactions [Abstract] | ||||
Balance sheet, except for equity accounts | RMB 7.1160 to US$1.00 | RMB 6.4466 to US$1.00 | RMB 6.3559 to US$1.00 | RMB 6.5401 to US$1.00 |
Income statement and cash flows | RMB 6.6013 to US$1.00 | RMB 6.4714 to US$1.00 | RMB 6.4519 to US$1.00 | RMB 6.9021 to US$1.00 |
Summary of Significant Accou_17
Summary of Significant Accounting Policies (Details) - Schedule of basic earnings (loss) per share - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Schedule of Basic Earnings Loss Per Share [Abstract] | |||||||
Net (loss) income (in Dollars) | $ (31,999) | $ 207,551 | $ 625,024 | $ 1,296,228 | |||
Weighted average number of common stock outstanding | |||||||
Weighted average number of common stock outstanding basic (in Shares) | 1,701,181,423 | 1,701,181,423 | 1,701,181,423 | 1,701,181,423 | 1,701,181,423 | 1,701,181,423 | |
Net (loss) income per share | |||||||
Net (loss) income per share basic - basic and diluted | [1] | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
[1] Less than $0.01 per share |
Summary of Significant Accou_18
Summary of Significant Accounting Policies (Details) - Schedule of basic earnings (loss) per share (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | ||||||
Schedule of Basic Earnings Loss Per Share [Abstract] | |||||||||||
Weighted average number of common stock outstanding diluted | 1,701,181,423 | 1,701,181,423 | 1,701,181,423 | 1,701,181,423 | 1,701,181,423 | 1,701,181,423 | |||||
Net (loss) income per share diluted | $ 0 | [1] | $ 0 | [1] | $ 0 | [1] | $ 0 | [1] | $ 0 | [1] | $ 0 |
[1] Less than $0.01 per share |
Plant and Equipment (Details)_2
Plant and Equipment (Details) - Schedule of plant and equipment - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Plant and Equipment [Abstract] | |||
Motor vehicle | $ 357,927 | $ 400,732 | $ 389,443 |
Office equipment | 9,041 | ||
Plant and equipment, gross | 366,968 | 400,732 | |
Less: Accumulated depreciation | (164,537) | (119,284) | (33,834) |
Plant and equipment, net | $ 202,431 | $ 281,448 | $ 355,609 |
Related Party Transactions (D_4
Related Party Transactions (Details) - Schedule of related party balances - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Baiyin Wujinxia [Member] | |||||
Interest income | |||||
Interest income | $ 5,777 | ||||
Mr. Guolin Tao [Member] | |||||
Amount due to a director | |||||
Amount due to a director | 167,935 | $ 171,443 | |||
Yuanchuang Tribe [Member] | |||||
Accounts payable | |||||
Accounts payable | 16,135 | ||||
Yuanchuang Federation [Member] | |||||
Accounts payable | |||||
Accounts payable | $ 21,390 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details) - Schedule of accounts receivable - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of accounts receivable net [Abstract] | |||
Account receivables | $ 287,436 | $ 67,940 | $ 202,183 |
Less: Allowance for doubtful accounts | |||
Total | $ 287,436 | $ 67,940 | $ 202,183 |
Other Receivables and Prepaym_4
Other Receivables and Prepayments (Details) - Schedule of other receivables and prepayments - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Other Receivables and Prepayments [Abstract] | |||
Deposits and other receivables | $ 25,297 | $ 18,430 | $ 19,027 |
Prepayments | 15,771 | 37,495 | 31,279 |
Total other receivables and prepayments | $ 41,068 | $ 55,925 | $ 50,306 |
Other payables and accrued li_4
Other payables and accrued liabilities (Details) - Schedule of other payables and accrued liabilities - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Accrued Liabilities and Other Payables [Abstract] | |||
Other payables | $ 84,350 | $ 83,494 | $ 110,599 |
Salary payable | 64,757 | 105,294 | 229,010 |
Accrued audit fees | 25,000 | 130,000 | 221,000 |
Other accrued expenses | 51,012 | 83,370 | 57,899 |
Accrued liabilities and other payables | $ 225,119 | $ 402,158 | $ 618,508 |
Income Taxes (Details) - Sche_5
Income Taxes (Details) - Schedule of income (loss) before income taxes - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Tax jurisdictions from: | ||||||
Local | $ (228,524) | $ (156,168) | $ (481,680) | $ (344,756) | $ (791,930) | $ (365,055) |
- Foreign, representing: | ||||||
Income before income taxes | 103,785 | 409,340 | 1,220,180 | 2,168,291 | 2,075,316 | 7,472,915 |
HK [Member] | ||||||
- Foreign, representing: | ||||||
Foreign | (175,426) | (3,278) | (195,339) | (26,845) | (53,508) | 45,181 |
PRC [Member] | ||||||
- Foreign, representing: | ||||||
Foreign | $ 507,735 | $ 568,786 | $ 1,897,199 | $ 2,539,892 | $ 2,920,754 | $ 7,792,789 |
Income Taxes (Details) - Sche_6
Income Taxes (Details) - Schedule of income tax expense - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Deferred tax | ||||
Deferred tax | $ 135,784 | $ 201,789 | $ 595,156 | $ 872,063 |
Hong Kong [Member] | ||||
Current tax: | ||||
Current tax | (841) | (841) | ||
Deferred tax | ||||
Deferred tax | 8,641 | 55,683 | 133,454 | 206,359 |
China [Member] | ||||
Current tax: | ||||
Current tax | 127,727 | 154,923 | 463,206 | 676,433 |
Deferred tax | ||||
Deferred tax | $ (584) | $ (7,976) | $ (1,504) | $ (9,888) |
Income Taxes (Details) - Sche_7
Income Taxes (Details) - Schedule of provision for income taxes - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Provision For Income Taxes Abstract | ||||||
Income before income tax | $ 103,785 | $ 409,340 | $ 1,220,180 | $ 2,168,291 | $ 2,075,316 | $ 7,472,915 |
Statutory income tax rate | 21% | 21% | 21% | 21% | 21% | 21% |
Income tax credit computed at statutory income rate | $ 21,795 | $ 85,962 | $ 256,238 | $ 455,342 | $ 435,816 | $ 1,569,312 |
Reconciling items: | ||||||
Non-deductible expenses | 75,971 | 37,816 | 134,157 | 106,185 | 186,907 | 78,866 |
Rate differential in different tax jurisdictions | 28,203 | 23,169 | 84,678 | 105,018 | 119,238 | 305,951 |
Deferred tax provided on dividends withholding tax of PRC subsidiaries | 9,561 | 55,683 | 133,454 | 206,359 | 235,757 | 552,005 |
Over-provision in prior year | 254 | (841) | (13,371) | (841) | ||
Income tax (credit) expense | $ 135,784 | $ 201,789 | $ 595,156 | $ 872,063 | $ 988,916 | $ 2,504,845 |
Income Taxes (Details) - Sche_8
Income Taxes (Details) - Schedule of deferred tax assets and liabilities - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | |||
Accelerated depreciation | $ 2,984 | $ 1,778 | $ 429 |
Deductible temporarily difference arising from other payable | 12,151 | 13,605 | |
Less: Net off with deferred tax liabilities for financial reporting purposes | (15,135) | (15,383) | (429) |
Net total deferred tax assets | |||
Deferred tax liabilities: | |||
Undistributed profits of a PRC subsidiary | 312,335 | 357,929 | 626,975 |
Less: Net off with deferred tax assets for financial reporting purposes | (15,135) | (15,383) | (429) |
Net total deferred tax liabilities | $ 297,200 | $ 342,546 | $ 626,546 |
Lease (Details) - Schedule of_2
Lease (Details) - Schedule of operating lease expense - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Operating Lease Expense Abstract | ||||||
Operating lease cost – straight line | $ 14,406 | $ 15,277 | $ 44,925 | $ 41,462 | $ 39,367 | $ 31,350 |
Total lease expense | $ 14,406 | $ 15,277 | $ 44,925 | $ 41,462 | $ 39,367 | $ 31,350 |
Lease (Details) - Schedule of_3
Lease (Details) - Schedule of maturities of lease liabilities - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule Of Maturities Of Lease Liabilities Abstract | ||
Remainder of 2022 | $ 13,892 | $ 62,212 |
2023 | 55,567 | 62,212 |
2024 | 27,784 | 31,106 |
2025 | ||
Thereafter | ||
Total undiscounted cash flows | 97,243 | 155,530 |
Less: imputed interest | (4,096) | (8,832) |
Present value of lease liabilities | $ 93,147 | $ 146,698 |
Lease (Details) - Schedule of_4
Lease (Details) - Schedule of lease term and discount rate | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule Of Lease Term And Discount Rate Abstract | ||
Weighted-average remaining lease term - year | 1 year 9 months | 2 years 6 months |
Weighted-average discount rate (%) | 4.90% | 4.90% |
Lease (Details) - Schedule of c
Lease (Details) - Schedule of cash flow information - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule Of Cash Flow Information Abstract | ||
Operating cash outflows from operating lease | $ 44,925 | $ 45,827 |
Certain Risks and Concentrati_8
Certain Risks and Concentrations (Details) - Schedule of customers that individually comprised 10% or more of net revenue - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | ||||||
Customer A [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Net revenue | $ 437,679 | [1] | $ 1,284,209 | [1] | $ 1,438,514 | $ 4,995,641 | |||||
Net revenue percentage | 45% | [1] | |||||||||
Customer B [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Net revenue | [1] | 210,337 | [1] | $ 1,321,937 | 1,008,417 | 1,586,867 | |||||
Net revenue percentage | [1] | 30% | |||||||||
Customer C [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Net revenue | [1] | 170,019 | [1] | $ 905,215 | $ 730,829 | [1] | |||||
Net revenue percentage | [1] | 20% | |||||||||
Customer D [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Net revenue | [1] | $ 172,765 | [1] | $ 627,321 | |||||||
Net revenue percentage | [1] | 14% | |||||||||
Customer Concentration Risk [Member] | Customer A [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Net revenue percentage | 55% | [1] | 26% | 54% | |||||||
Customer Concentration Risk [Member] | Customer B [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Net revenue percentage | [1] | 13% | 18% | 17% | |||||||
Customer Concentration Risk [Member] | Customer C [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Net revenue percentage | [1] | 10% | 13% | [1] | |||||||
Customer Concentration Risk [Member] | Customer D [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Net revenue percentage | [1] | 11% | |||||||||
[1]Comprised less than 10% of net revenue for the respective period. |
Certain Risks and Concentrati_9
Certain Risks and Concentrations (Details) - Schedule of customers that individually comprised 10% or more of net accounts receivable - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Customer A [Member] | ||
Certain Risks and Concentrations (Details) - Schedule of customers that individually comprised 10% or more of net accounts receivable [Line Items] | ||
Accounts receivable | $ 128,779 | $ 15,864 |
Accounts receivable percentage | 45% | 23% |
Customer E [Member] | ||
Certain Risks and Concentrations (Details) - Schedule of customers that individually comprised 10% or more of net accounts receivable [Line Items] | ||
Accounts receivable | $ 59,413 | |
Accounts receivable percentage | 21% | |
Customer F [Member] | ||
Certain Risks and Concentrations (Details) - Schedule of customers that individually comprised 10% or more of net accounts receivable [Line Items] | ||
Accounts receivable | $ 46,347 | |
Accounts receivable percentage | 16% | |
Customer G [Member] | ||
Certain Risks and Concentrations (Details) - Schedule of customers that individually comprised 10% or more of net accounts receivable [Line Items] | ||
Accounts receivable | $ 18,408 | |
Accounts receivable percentage | 27% | |
Customer H [Member] | ||
Certain Risks and Concentrations (Details) - Schedule of customers that individually comprised 10% or more of net accounts receivable [Line Items] | ||
Accounts receivable | $ 20,272 | |
Accounts receivable percentage | 30% |
Certain Risks and Concentrat_10
Certain Risks and Concentrations (Details) - Schedule of the following service vendor that individually comprised 10% or more of cost of revenue - Service vendor A [Member] - Revenue, Segment Benchmark [Member] - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Certain Risks and Concentrations (Details) - Schedule of the following service vendor that individually comprised 10% or more of cost of revenue [Line Items] | ||
Cost of revenue | $ 135,223 | $ 400,105 |
Cost of revenue percentage | 24% | 31% |
Certain Risks and Concentrat_11
Certain Risks and Concentrations (Details) - Schedule of service vendors that individually comprised 10% or more of accounts payable - USD ($) | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | [1] | Dec. 31, 2021 | Dec. 31, 2020 | [1] | |
Service Vendor B [Member] | |||||
Certain Risks and Concentrations (Details) - Schedule of service vendors that individually comprised 10% or more of accounts payable [Line Items] | |||||
Accounts payable | $ 49,560 | ||||
Accounts payable percentage | 43% | ||||
Service Vendor C [Member] | |||||
Certain Risks and Concentrations (Details) - Schedule of service vendors that individually comprised 10% or more of accounts payable [Line Items] | |||||
Accounts payable | $ 21,390 | ||||
Accounts payable percentage | 18% | ||||
Service Vendor D [Member] | |||||
Certain Risks and Concentrations (Details) - Schedule of service vendors that individually comprised 10% or more of accounts payable [Line Items] | |||||
Accounts payable | $ 19,308 | ||||
Accounts payable percentage | 17% | ||||
Service Vendor E [Member] | |||||
Certain Risks and Concentrations (Details) - Schedule of service vendors that individually comprised 10% or more of accounts payable [Line Items] | |||||
Accounts payable | $ 16,135 | ||||
Accounts payable percentage | 14% | ||||
[1]Comprised less than 10% of accounts payable for the respective period. |