Median 10-Q 22 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	3 Months Ended
	Mar. 31, 2017	Apr. 15, 2017
Document And Entity Information
Entity Registrant Name	Median Group Inc
Entity Central Index Key	1,211,211
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	No
Entity Filer Category	Smaller Reporting Company
Entity Public Float		$ 16,502,609
Entity Common Stock, Shares Outstanding		11,427,232,960
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,017

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 169,041	$ 797,230
Accounts receivables	5,873
Prepayments and deposits	115,498	113,981
Amount due from a related party	880,332	2,229
Total current assets	1,170,744	913,440
Current liabilities:
Other payables and accruals	837,839	651,880
Amounts due to related parties	949,578	806,812
Total current liabilities	1,787,417	1,458,692
Long-term debts:
Shareholder loan	2,000,000	2,000,000
Total non-current liabilities	2,000,000	2,000,000
Total liabilities	3,787,417	3,458,692
Stockholders' deficits:
Common stock, no par value, 85,000,000,000 shares authorized, 11,427,232,960 (2016: 11,427,232,960) shares issued and outstanding	4,095,230	4,095,230
Accumulated deficits	(6,578,613)	(6,519,665)
Accumulated other comprehensive losses	(133,290)	(120,817)
Total Median Group Inc. stockholders' deficits	(2,616,673)	(2,545,252)
Non-controlling interest
Total stockholders' deficits	(2,616,673)	(2,545,252)
Total liabilities and stockholders' deficits	$ 1,170,744	$ 913,440

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Common stock, shares authorized	85,000,000,000	85,000,000,000
Common stock, shares issued	11,427,232,960	11,427,232,960
CommonStockSharesOutstanding	11,427,232,960	11,427,232,960
CommonStockValue	$ 4,095,230	$ 4,095,230

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Net revenue	$ 5,866	$ 20,897
Cost of revenue	(3,407)	(13,618)
Gross profit	2,459	7,279
Operating expenses:
Administration expenses	(42,486)	(141,048)
Selling and distribution expenses
Total operating expenses	(42,486)	(141,048)
Operating loss from continuing operations	(40,027)	(133,769)
Other income / (expenses)
Other income	21,122	465
Finance charges	(43)	(80)
Interest expenses	(40,000)	(40,000)
Net loss	(58,948)	(173,384)
Less: Net loss attributable to non-controlling interests		(26,135)
Net loss attributable to Median Group Inc.	$ (58,948)	$ (147,249)
Net loss per share attributable to Median Group Inc. shareholders - Basic and diluted	$ 0	$ 0
Basic and diluted weighted average number of common shares *	11,427,232,960	11,307,232,960

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Net loss	$ (58,948)	$ (173,384)
Other comprehensive (loss)/income, net of tax
Foreign currency translation (loss)/gain	(12,473)	6,539
Total comprehensive loss	(71,421)	(166,845)
Less: Net loss attributable to non-controlling interests		(26,135)
Less: Other comprehensive income attributable to non-controlling interests - foreign currency translation gain		10,207
Total comprehensive loss attributable to Median Group Inc.	$ (71,421)	$ (150,917)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) - 3 months ended Mar. 31, 2017 - USD ($)	Common Stock	Accumulated Other Comprehensive Loss	Accumulated Deficits	Total
Beginning Balance (in shares) (Audited) at Dec. 31, 2016	11,427,232,960
Beginning Balance (Audited) at Dec. 31, 2016	$ 4,095,230	$ (120,817)	$ (6,519,665)	$ (2,545,252)
Other comprehensive loss - foreign currency translation loss		(12,473)		(12,473)
Net loss for the period			(58,948)	(58,948)
Ending Balance (in shares) at Mar. 31, 2017	11,427,232,960
Ending Balance at Mar. 31, 2017	$ 4,095,230	$ (133,290)	$ (6,578,613)	$ (2,616,673)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net loss	$ (58,948)	$ (173,384)
Decrease/(increase) in assets:
Accounts receivables	(5,873)	6,970
Prepayments and deposits	(1,517)	34,879
Amounts due from related parties	(200,458)	(93,918)
(Decrease)/ increase in liabilities:
Accounts payables		(6,273)
Other payables and accruals	185,959	18,088
Net cash used in operating activities	(80,837)	(213,638)
Cash flows from investing activities
Master distributor deposit	(677,645)
Net cash used in investing activities	(677,645)
Cash flows from financing activities :
Advances from related parties	142,766	143,043
Cash flows from financing activities :	142,766	143,043
Effect of exchange rate in comprehensive (loss)/income	(12,473)	6,539
Net decrease in cash and cash equivalents	(628,189)	(64,056)
Cash and cash equivalents - net, beginning	797,230	77,164
Cash and cash equivalents - net, ending	169,041	13,108
Supplemental disclosure of cash flow information:
Interests paid
Income tax paid

NOTE 1 - ORGANIZATION

NOTE 1 - ORGANIZATION	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
NOTE 1 - ORGANIZATION	NOTE 1 ORGANIZATION Median Group Inc. (the "Company") is a Texas corporation, incorporated on October 1, 2002. In January 2006, the Company established a wholly owned subsidiary Ren Ren Media Group Limited, a company incorporated in Hong Kong, as its operating company in Hong Kong. In March 2007, the Company acquired all the outstanding shares of Good World Investments Limited, a British Virgin Islands corporation that holds 50% of Beijing Ren Ren Health Culture Promotion Limited, a company incorporated in China in the advertising and media business in China. In May 2009, the Group established a 50/50 joint venture company, ATC Marketing Limited, which is to be in the business of marketing and distributing of convergent multimedia communication and internet devices. In June 2012, the Company acquired 100% equity interests of A-Team Resources Sdn. Bhd. (“A-Team”), a distributor of electronics and light appliances, at a consideration price of $2,011,607 by the issuance of 558,779,837 shares, at a price of $0.0036 per share. On January 15, 2014, the Company sold its subsidiaries namely Ren Ren Media Group Limited, A-Team Resources Sdn Bhd, Good World Investments Limited and Beijing Ren Ren Health Culture Promotion Limited (the “Disposed Subsidiaries”) containing its light appliances distribution business and advertising business in China. On January 31, 2014, the Group closed the transaction to acquire 63.2% of Clixster Mobile Sdn. Bhd. (“CMSB”), a company incorporated in Malaysia in exchange of 10,193,609,664 shares of common stock of the Company. CMSB is a mobile virtual network provider and principally engaged in providing cellular and mobile broadband services in Malaysia. CMSB was treated as the acquirer for accounting purpose since the original stockholders of CMSB owned a majority (85%) of the shares of the Company’s common stock immediately following the completion of the transaction. CMSB was the legal acquiree but deemed to be the accounting acquirer. The Company was the legal acquirer but deemed to be the accounting acquiree in the reverse merger. The historical financial statements prior to the acquisition are those of the accounting acquirer (CMSB). Historical stockholders’ equity of the acquirer prior to the merger are retroactively restated (a recapitalization) for the equivalent number of shares received in the merger. Operations prior to the merger are those of the acquirer. After completion of the transaction, the Company’s consolidated financial statements include the assets and liabilities, the operations and cash flow of the Company and its subsidiaries. During the year, on July 28, 2015, the Company disposed of its 63.2% of CMSB to refocus the business of the Group to sell post-paid rather than prepaid telecom services for the mobile network virtual operator (“MNVO”) operation, with a gain of approximately $5 million. As announced in a Form 8-K on December 16, 2015 on December 11, 2015 the Company acquired a 51% interests in Naim Indah Mobile Communication Sdn. Bhd. (“NIMC”), a company engaged in providing mobile communication services through MVNO platform. NIMC has a registered capital of RM2,000,001 (or about US$480,000) of which the Company is required to pay RM1,000,001 (or about US$240,000) for its 51% interests. NIMC has an exclusive agreement with MyAngkasa Holdings Sdn. Bhd. (“MyAngkasa”) for the provision of telecom services to members of the National Cooperative Malaysia Bhd and known as Angkatan Koperasi Kebangsaan Malaysia Berhad (“Angkasa”). Further details can be found in Note 13 of the financial statements enclosed herein this report. The Company intends to focus on post-paid customers in working with Angkasa. Our director Ahmad Shukri Abudl Ghani is a 30% shareholder of NIMC. MyAngkasa is a shareholder of the Company holding 50 million shares or about 0.44% of the issued share capital of the Company. In October 2016, the Company raised $1,320,000 from independent third parties by issuing 120,000,000 shares at $0.011 per share. This money raised was used for working capital. On December 2, 2016, the Company disposed its 51% interest in NIMC for a fair market value of RM1,000,001 or about US$224,574 to a company owned by directors of the Company, and realized a gain of $194,947. On or about the same date, our subsidiary company, Median Digital Sdn. Bhd (formerly Grid Mobile Sdn. Bhd.) (“MDSB”) entered into a Master Distribution Agreement with NIMC whereby NIMC would appoint MDSB to be its preferred distributor of its mobile products and services in Malaysia for two years. Under this Master Distribution Agreement, MDSB would need to pay a refundable deposits of RM3,000,000 or about $668,747 to NIMC and MDSB would not procure, engage or appoint any other company that offers the same services as NIMC.

NOTE 2 - SUMMARY OF SIGNIFICANT

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES & REALIZATION OF ASSETS	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES & REALIZATION OF ASSETS	NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES & REALIZATION OF ASSETS Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the U.S. Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2016. As permitted under the rules of the SEC for interim reporting, they do not include all information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the notes to the financial statements for the year ended December 31, 2016 included in the Company Form 10-K filed with the Securities and Exchange Commission. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of financial position and results of operations for the interim period presented have been included. Operating results for the interim period are not necessary indicative of the results that may be expected for the respective full year. Principles of Consolidation The condensed consolidated financial statements for the period ended March 31, 2017 include the financial statements of the Company and its wholly owned subsidiaries Alpha Sunray Sdn. Bhd and Median Digital Sdn. Bhd (formerly Grid Mobile Sdn. Bhd.) The results of subsidiaries acquired or sold during the period are consolidated from their effective dates of acquisition or through their effective dates of disposition, respectively. All significant inter-company transactions and balances have been eliminated on consolidation. Use of Estimates The preparation of condensed consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Net Loss Per Share Basic earnings per share were computed by dividing net loss by the weighted average number of shares of common stock outstanding during the year. Diluted loss per common share for the period ended March 31, 2017 and 2016 respectively, are not presented as it would be anti-dilutive. Fair Value Measurements and Disclosures ASC 820 "Fair Value Measurements and Disclosures" codified SFAS No. 107, "Disclosures about Fair Value of Financial Instruments". ASC 820 applies to all entities, transactions, and instruments that require or permit fair value measurements, with specific exceptions and qualifications. The Company is required to disclose estimated fair values of financial instruments. Unless otherwise indicated, the fair values of all reported assets and liabilities, which represent financial instruments, none of which are held for trading purposes, approximate their respective carrying values of such amounts. Cash and Cash Equivalents The Company considers all liquid investments with a maturity of three months or less from the date of purchase that are readily convertible into cash to be cash equivalents. Impairment of long-lived assets In accordance with the provisions of ASC Topic 360, “ Impairment or Disposal of Long-Lived Assets Revenue The Company recognizes its revenue in accordance with the Securities and Exchange Commissions ("SEC") Staff Accounting Bulletin No. 104, "Revenue Recognition in Financial Statements" ("SAB 104"). Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collectability is reasonably assured. The recognition of revenues involves certain management judgments. The amount and timing of our revenues could be materially different for any period if management made different judgments or utilized different estimates. Revenue is measured at the fair value of the consideration received or receivable, net of discounts and taxes applicable to the revenue. Prepaid telecom revenues are collected by its distributors and/or resellers through the sale of our branded prepaid or reload cards, which are sold in a form of SIM/reload cards to its final customers through its distributors and/or resellers. The sale of Sim, prepaid or reload cards is recognized as revenue when the products are delivered to its distributors and/or resellers, based upon their request. Prepaid cards will expire two years after the date of card production if they have never been activated. The proceeds from the expired cards are recognized as revenue upon expiration of cards. Cost of revenue Cost of revenue consists primarily of cost of SIM and prepaid/reload cards, telecommunication services and traffic charges which are directly attributable to the delivery of telecom service upon the activation of prepaid and/or reload cards. Comprehensive Income ASC Topic 220, “Comprehensive Income” establishes standards for reporting and display of comprehensive income, its components and accumulated balances. Comprehensive income as defined includes all changes in equity during a period from non-owner sources. Accumulated comprehensive income, as presented in the accompanying statements of stockholders’ equity consists of changes in unrealized gains and losses on foreign currency translation. This comprehensive income is not included in the computation of income tax expense or benefit. Segment Reporting ASC Topic 280, “Segment Reporting” establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organization structure as well as information about geographical areas, business segments and major customers in financial statements. The Company operates in one reportable operating segment in Malaysia during the period ended March 31, 2017. Related Parties Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence. Income Taxes The Company accounts for income taxes under ASC 740 “Income Taxes”. Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations. ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. (a) Current Tax Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the reporting date. Current taxes are recognized in the statement of income except to the extent that the tax relates to items recognized outside the statement of income, either in other income or directly in equity. (b) Deferred Tax Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company records a valuation allowance for deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Foreign Currency Translation The accounts of the Company's Hong Kong and Malaysia subsidiaries are maintained in Hong Kong dollars (HK) and Malaysia Ringgit (RM), respectively. Such financial statements are translated into U.S. Dollars (USD) in accordance with ASC 830 “Foreign Currency Translation” which codified Statement of Financial Accounts Standards ("SFAS") No. 52, "Foreign Currency Translation," with the respective currency as the functional currency. According to the Statement, all assets and liabilities were translated at the exchange rate on the balance sheet date, stockholder's equity are translated at the historical rates and statement of operations items are translated at the weighted average exchange rate for the year. The resulting translation adjustments are reported under other comprehensive income in accordance with SFAS No. 130, “Reporting Comprehensive Income”. As of March 31, 2017, the comprehensive loss was $133,290. Recently Issued Accounting Pronouncements The Company does not expect the adoption of any recently issued accounting pronouncements to have a significant impact to its financial position, results of operations or cash flows . Reclassifications Certain comparative amounts have been reclassified to conform to the current period’s presentation.

NOTE 3 - UNCERTAINTY OF ABILITY

NOTE 3 - UNCERTAINTY OF ABILITY TO CONTINUE AS A GOING CONCERN	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
NOTE 3 - UNCERTAINTY OF ABILITY TO CONTINUE AS A GOING CONCERN	NOTE 3 UNCERTAINTY OF ABILITY TO CONTINUE AS A GOING CONCERN The Company's condensed consolidated financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. As of March 31, 2017, the Company has incurred an accumulated deficits totaling $6,578,613 and its current liabilities exceed its current assets by $616,673. In view of the matters described above, recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheets is dependent upon continued operations of the Company, which in turn is dependent upon the Company's ability to raise additional capital, obtain financing and to succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Management has taken the following steps to revise its operating and financial requirements, which it believes are sufficient to provide the Company with the ability to continue as a going concern. The Company is actively pursuing additional funding and potential merger or acquisition candidates and strategic partners, which would enhance stockholders' investment. Management believes that the above actions will allow the Company to continue operations through the next fiscal year.

NOTE 4 - STOCKHOLDERS' EQUITY

NOTE 4 - STOCKHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
NOTE 4 - STOCKHOLDERS' EQUITY	NOTE 4 STOCKHOLDERS’ EQUITY Common Stock On October 17, 2016, the Company issued 120,000,000 shares of the Company to 3 independent parties at a price of $0.011 per share to raise a total cash proceed of approximately $1,320,000. The proceeds for this placement shall be used for working capital of the Company. As of March 31, 2017, the Company had a total of 11,427,232,960 shares of its common stock issued and outstanding.

NOTE 5 - STOCK OPTIONS

NOTE 5 - STOCK OPTIONS	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
NOTE 5 - STOCK OPTIONS	NOTE 5 STOCK OPTIONS The Company adopted ASC 718 “Compensation – Stock Compensation” and requires companies to measure and recognize the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value. 2007 Stock Incentive Plan On February 19, 2007, the Company adopted the 2007 Stock Incentive Plan (the "2007 Plan") allowing for the awarding of options to acquire shares of common stock. This plan provides for the grant of incentive stock options to key employees, directors and consultants. Options issued under this plan will expire over a maximum term of ten years from the date of grant. On March 8, 2007, the Company registered 38,400,000 shares underlying stock options under the 2007 Stock Incentive Plan with the SEC pursuant to a registration statement on Form S-8. During the years 2007 to 2013, the Company had issued a total of 6,522,309 shares to its staff and consultants for their service provided. During the years from 2014 to 2016, the Company did not issue any share options under the 2007 Plan. As at March 31, 2017 and December 31, 2016, there were i) no outstanding stock options and ii) 31,877,691 shares available to be issued under the 2007 Plan.

NOTE 6 - OTHER PAYABLES AND ACC

NOTE 6 - OTHER PAYABLES AND ACCRUALS	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
NOTE 6 - OTHER PAYABLES AND ACCRUALS	NOTE 6 OTHER PAYABLES AND ACCRUALS Other payables and accruals consist of the following: March 31 2017 December 31 2016 US$ US$ Customer deposit 158,117 - Potential tax penalty liability 410,000 410,000 Other payables and accruals 269,722 241,880 837,839 651,880

NOTE 7 - AMOUNTS DUE TO RELATED

NOTE 7 - AMOUNTS DUE TO RELATED PARTIES	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
NOTE 7 - AMOUNTS DUE TO RELATED PARTIES	NOTE 7 AMOUNTS DUE TO RELATED PARTIES March 31 2017 December 31 2016 US$ US$ Amounts due from related parties: - Trade 878,103 - - Non-trade 2,229 2,229 880,332 2,229 Amounts due to related parties: - Trade - - - Non-trade 949,578 806,812 949,578 806,812 The trade receivables due from related parties which the two of our directors have interests, is non-secured, non-interest bearing and repayable on demand. The funds were advanced to the related parties in respect of paying a deposits under the Master Distribution Agreement (Note 9(b)). The non-trade receivable amount due from a related party, a director of the Company, is unsecured, non-interest bearing and repayable on demand. The amounts due to related parties are unsecured, non-interest bearing and repayable on demand. Imputed interest on these amounts is considered insignificant.

NOTE 8 - SHAREHOLDER LOAN

NOTE 8 - SHAREHOLDER LOAN	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
NOTE 8 - SHAREHOLDER LOAN	NOTE 8 SHAREHOLDER LOAN March 31 2017 December 31 2016 US$ US$ Shareholder loan 2,000,000 2,000,000 This long term shareholder loan is due to Central High Limited, a major shareholder of the Company. This loan is unsecured and repayable on November 25, 2018, and bears interest of 8% per annum. The accrued interest for the three months ended March 31, 2017 was $40,000 (2016: $40,000).

NOTE 9 - RELATED PARTY TRANSACT

NOTE 9 - RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
NOTE 9 - RELATED PARTY TRANSACTIONS	NOTE 9 RELATED PARTY TRANSACTIONS (a) For the three months period ended March 31, 2017, the Company paid no remuneration (2016: NIL) to its directors and its officers for their services provided to the Company. (b) In early December 2016, the Company entered into a Master Distribution Agreement with a company beneficially owned by two of our directors. Pursuant to the agreement, the Company would pay a refundable deposit of RM3 million or about US$677,000 to be the preferred distributor of telecom products and services (including access to the MVNO platform) in the territory of Malaysia for a period of two years. The Company may receive certain rebates if it achieves sales of over RM10 million (about US$2,257,000) for each anniversary year, and such rebates shall vary by products and services to be agreed by the parties.

NOTE 10 - INCOME TAXES

NOTE 10 - INCOME TAXES	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
NOTE 10 - INCOME TAXES	NOTE 10 INCOME TAXES No provision was made for income tax for the three months ended March 31, 2017 and 2016, since the Company and its subsidiaries had significant net operating loss. In the three months ended March 31, 2017 and 2016, the Company and its subsidiaries incurred net operating losses for tax purposes of approximately $58,948 and $173,384, respectively. Total net operating losses carry forward as at March 31, 2017 and 2016, (i) for Federal and State purpose were $12,163,959 and $11,761,918, respectively and (ii) for its entities outside of the United States $59,207 and $152,489. The net operating loss carry-forwards may be used to reduce taxable income through the year 2025. The availability of the Company's net operating loss carry-forwards are subject to limitation if there is a 50% or more change in the ownership of the Company's stock. There was no significant difference between reportable income tax and statutory income tax. The gross deferred tax asset balance as at March 31, 2017 and December 31, 2016 was approximately $5,038,671 and $5,170,610 respectively. A full valuation allowance has been established against the deferred tax assets, as the utilization of the loss carry-forwards cannot reasonably be assured. A reconciliation between the income tax computed at the Malaysia statutory rate and the Group's provision for income tax is as follows: 2017 2016 Malaysia statutory rate 24% 25% Tax allowance - - Valuation allowance – Loss carryforward under Malaysia rate (24%) (25%) Provision for income tax - -

NOTE 11 - COMMITMENTS AND CONTI

NOTE 11 - COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
NOTE 11 - COMMITMENTS AND CONTINGENCIES	NOTE 11 COMMITMENTS AND CONTINGENCIES The Company’s commitments and contingencies are set out below as follows:- (a) The Company has operating lease of its corporate office in Malaysia for 3 years ending April 1, 2019. The annual lease is RM406,998 (approximately US$90,720).

NOTE 12 - SUBSEQUENT EVENTS

NOTE 12 - SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
NOTE 12 - SUBSEQUENT EVENTS	NOTE 12 SUBSEQUENT EVENTS The Company evaluated subsequent events through the date the financial statements were issued and filed with this Form 10-Q. There were no subsequent events that required recognition or disclosure.