Median 10-Q 29 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	3 Months Ended
	Mar. 31, 2018	May 01, 2018
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, 2018
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?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float		$ 8,409,003
Entity Common Stock, Shares Outstanding		11,593,899,627
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,018

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 45,355	$ 10,131
Accounts receivables	15,706	32,237
Prepayments and deposits	74,449	69,666
Amounts due from related parties	1,035,172	1,019,760
Total current assets	1,170,682	1,131,794
Non-current assets:
Intangible assets - goodwill	541,307	541,307
Property and equipment	42,073	40,964
Non-current assets	583,380	582,271
Total assets	1,754,062	1,714,065
Current liabilities:
Accounts payable	9,842	9,400
Other payables and accruals	778,725	776,370
Amounts due to related parties	1,054,851	1,014,223
Total current liabilities	1,843,418	1,799,993
Long-term debts:
Shareholder loan	2,000,000	2,000,000
Total non-current liabilities	2,000,000	2,000,000
Total liabilities	3,843,418	3,799,993
Stockholders' equity:
Common stock, no par value, 85,000,000,000 shares authorized, 11,593,899,627 (2017: 11,593,899,627) shares issued and outstanding	4,728,563	4,728,563
Accumulated deficits	(6,786,273)	(6,742,570)
Accumulated other comprehensive losses	(157,749)	(189,230)
Total Median Group Inc. stockholders' deficits	(2,215,459)	(2,203,237)
Non-controlling interest	126,103	117,309
Total stockholders' deficits	(2,089,356)	(2,085,928)
Total liabilities and stockholders' deficits	$ 1,754,062	$ 1,714,065

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Common stock, shares authorized	85,000,000,000	85,000,000,000
Common stock, shares issued	11,593,899,627	11,593,899,627
Common stock shares outstanding	11,593,899,627	11,593,899,627
Common stock value	$ 4,728,563	$ 4,728,563

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Net revenue	$ 96,707	$ 5,866
Cost of revenue	15,486	3,407
Gross profit	81,221	2,459
Operating expenses:
Administration expenses	103,527	42,486
Total operating expenses	(103,527)	(42,486)
Operating loss from continuing operations	(22,306)	(40,027)
Other income (expenses)
Other income	27,876	21,122
Finance charges	(56)	(43)
Interest expenses	40,000	40,000
Net loss	(34,486)	(58,948)
Less: net income attributable to non-controlling interests	(9,217)
Net loss attributable to Median Group Inc.	$ (43,703)	$ (58,948)
Net loss per share attributable to Median Group Inc. shareholders - Basic and diluted	$ 0	$ 0
Basic and diluted weighted average number of common shares *	11,593,899,627	11,427,232,960

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Net loss	$ (34,486)	$ (58,948)
Other comprehensive income (loss), net of tax
Foreign currency translation gain (loss)	31,058	(12,473)
Total comprehensive loss	(3,428)	(71,421)
Less: net income attributable to non-controlling interests	(9,217)
Less: other comprehensive income attributable to non-controlling interests - foreign currency translation gain	423
Total comprehensive loss attributable to Median Group Inc.	$ (12,222)	$ (71,421)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICITS (Unaudited) - 3 months ended Mar. 31, 2018 - USD ($)	Common Stock	Accumulated Other Comprehensive Loss	Accumulated Deficits	Noncontrolling Interest	Total
Balance at January 1, 2018 (in shares) (Audited) at Dec. 31, 2017	11,593,899,627				11,593,899,627
Balance at January 1, 2018 (Audited) at Dec. 31, 2017	$ 4,728,563	$ (189,230)	$ (6,742,570)	$ 117,309	$ (2,085,928)
Other comprehensive income (loss)
Foreign currency translation gain (loss)		31,481		(423)	31,058
Net (loss) income for the period			(43,703)	9,217	$ (34,486)
Balance at March 31, 2018 (in shares) at Mar. 31, 2018	11,593,899,627				11,593,899,627
Balance at March 31, 2018 at Mar. 31, 2018	$ 4,728,563	$ (157,749)	$ (6,786,273)	$ 126,103	$ (2,089,356)

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net loss	$ (34,486)	$ (58,948)
Adjust for non-cash items:
Depreciation	2,174
Total	(32,312)	(58,948)
Decrease (increase) in assets:
Accounts receivables	16,531	(5,873)
Prepayments and deposits	(4,783)	(1,517)
Amounts due from related parties	(15,412)	(200,458)
(Decrease) increase in liabilities:
Accounts payables	442
Other payables and accruals	2,355	185,959
Net cash used in operating activities	(33,179)	(80,837)
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	40,628	142,766
Cash flows from financing activities :	40,628	142,766
Effect of exchange rate in comprehensive income (loss)	27,775	(12,473)
Net increase (decrease) in cash and cash equivalents	35,224	(628,189)
Cash and cash equivalents - net, beginning	10,131	797,230
Cash and cash equivalents - net, ending	45,355	169,041
Supplemental disclosure of cash flow information:
Interests paid
Income tax paid

NOTE 1 - ORGANIZATION

NOTE 1 - ORGANIZATION	3 Months Ended
	Mar. 31, 2018
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 Abdul 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, Grid Mobile Sdn. Bhd. ("Grid Mobile") entered into a Master Distribution Agreement with NICM whereby NIMC would appoint Grid Mobile to be its preferred distributor of its mobile products and services in Malaysia for two years. Under this Master Distribution Agreement, Grid Mobile has a refundable deposits of RM3,000,000 or about $738,000 to NIMC and Grid Mobile would not procure, engage or appoint any other company that offers the same services as NIMC. To date the project has not started and it is expected that the deposits shall be returned later on during the year. On June 15, 2017 the Company acquired 51% equity interest in GNS Technology (M) Sdn. Bhd. ("GNS Malaysia") by the issuance of 166,666,667 new shares in the Company. GNS is engaged in the provision of network design, construction and maintenance services for fibre optics backbone and Fiber-to-the-Home (FTTH") broadband services. Pursuant to the acquisition agreement, the Vendors are entitled to an additional consideration of US$1,500,000 provided that GNS Malaysia accumulated audited profits record at least US$3,000,000 for the 5 year period from December 31, 2017 to December 31, 2022. The additional consideration shall be paid by the issuance of new shares in the Company at a price equal to the higher of (i) US$0.006 per share and (ii) the 20 days average closing share price immediately prior to the parties agreeing on the accumulated audited profits stated above. At the date of this report, the Group will mainly concentrate on its Telecommunications and Mobile Business Unit and the network design and construction business. The Group will terminate and streamline its advertising business unit and product services unit until a viable business opportunity is available. The revenue generated from the network design, construction and maintenance service for broadband services during the period ended March 31, 2018 was $96,707.

NOTE 2 - SUMMARY OF SIGNIFICANT

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES & REALIZATION OF ASSETS	3 Months Ended
	Mar. 31, 2018
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, 2017. 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, 2017 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. F-7 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES & REALIZATION OF ASSETS (Continued) Principles of Consolidation The condensed consolidated financial statements for the period ended March 31, 2018 include the financial statements of the Company and its wholly owned subsidiaries Alpha Sunray Sdn. Bhd and Median Digital Sdn. Bhd and its 51% interest subsidiary in GNS Technology (M) 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, 2018 and 2017 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. Trade Receivables Trade receivable are recorded at the invoiced amount and do not bear interest. The Company extends unsecured credit to its customers in the ordinary course of business but mitigates the associated risks by performing credit checks and actively pursuing past due accounts. An allowance for doubtful accounts is established and determined based on managements' assessment of known requirements, aging of receivables, payment history, the customer's current credit worthiness and the economic environment. The Company recorded no allowance for doubtful accounts for the years presented. Property and Equipment Property and equipment is stated at costs. Depreciation are computed using the straight-line method over the estimated economic useful lives as follows: Office equipment and computers 5 years Motor vehicle 5 years Expenditure for maintenance and repairs is expensed as incurred. The gain or loss on the disposal of plant and equipment is the difference Intangible Assets The Company evaluates intangible assets for impairment, at least on an annual basis and whenever events or changes in circumstances indicate that the carrying value may not be recoverable from its estimated future cash flows. Recoverability of intangible assets, other long-lived assets and, goodwill is measured by comparing their net book value to the related projected undiscounted cash flows from these assets, considering a number of factors including past operating results, budgets, economic projections, market trends and product development cycles. If the net book value of the asset exceeds the related undiscounted cash flows, the asset is considered impaired, and a second test is performed to measure the amount of impairment loss Impairment of long-lived assets In accordance with the provisions of ASC Topic 360, " Impairment or Disposal of Long-Lived Assets F-8 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES & REALIZATION OF ASSETS (Continued) 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. Network design services income is recognized as revenue when the services has been substantially provided. 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, 2018. 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. F-9 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES & REALIZATION OF ASSETS (Continued) 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 Malaysia subsidiaries are maintained in Malaysia Ringgit (RM). 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, 2018, the comprehensive loss was $157,749. 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, 2018
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, 2018, the Company has incurred an accumulated deficits totaling $6,786,273 and its current liabilities exceed its current assets by $672,736. 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, 2018
Notes to Financial Statements
NOTE 4 - STOCKHOLDERS' EQUITY	NOTE 4 STOCKHOLDERS' EQUITY Common Stock On June 15, 2017, the Company issued 166,666,667 shares of the Company at the then market price of $0.0038 per share for a total share consideration of $633,333 to satisfy the consideration for acquiring 51% equity interest in GNS Technology (M) Sdn. Bhd. As of March 31, 2018, the Company had a total of 11,593,899,627 shares of its common stock issued and outstanding.

NOTE 5 - PROPERTY AND EQUIPMENT

NOTE 5 - PROPERTY AND EQUIPMENT, NET	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
NOTE 5 - PROPERTY AND EQUIPMENT, NET	NOTE 5 PROPERTY AND EQUIPMENT, NET Property and equipment is summarized as following: March 31 2018 December 31 2017 US$ US$ Cost Furniture, fixtures and equipment 24,040 23,387 Motor vehicle 25,392 25,375 49,432 48,762 Less: Accumulated depreciation (10,155) (7,981) Effect of foreign exchange 2,796 189 Balance at end of period 42,073 40,964

NOTE 6 - OTHER PAYABLES AND ACC

NOTE 6 - OTHER PAYABLES AND ACCRUALS	3 Months Ended
	Mar. 31, 2018
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 2018 December 31 2017 US$ US$ Potential tax penalty liability 410,000 410,000 Other payables and accruals 368,725 366 370 778,725 776,370

NOTE 7 - AMOUNTS DUE FROM_TO RE

NOTE 7 - AMOUNTS DUE FROM/TO RELATED PARTIES	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
NOTE 7 - AMOUNTS DUE FROM/TO RELATED PARTIES	NOTE 7 AMOUNTS DUE FROM/TO RELATED PARTIES March 31 2018 December 31 2017 US$ US$ Amounts due from related parties: - Trade 844,831 826,469 - Non-trade 190,341 193,291 1,035,172 1,019,760 Amounts due to related parties: - Trade - - - Non-trade 1,054,851 1,014,223 1,054,851 1,014,223 The trade receivable due from a related company which the two of our directors have interests, is non-secured, non-interest bearing and repayable on demand. This trade receivable is relates to the Master Distribution Agreement disclosed in 2016 accounts (Note 12(b)) where the Company is required to pay a refundable deposit and other costs for the use of license to commence its telecom service. This trade receivable amount is expected to be refunded later this year. The non-trade receivable amounts are due from related parties, which one of our subsidiary director has an interest. The non-trade receivable amounts are unsecured, non-interest bearing and repayable on demand. The Company also has an option to offset these amounts against certain amounts owed on amounts due to related parties. 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, 2018
Notes to Financial Statements
NOTE 8 - SHAREHOLDER LOAN	NOTE 8 SHAREHOLDER LOAN March 31 2018 December 31 2017 US$ US$ Shareholder loan 2,000,000 2,000,000 This long term shareholder loan is unsecured and repayable on November 25, 2019, and bears interest of 8% per annum. The accrued interest for the three months ended March 31, 2018 was $40,000 (2017: $40,000).

NOTE 9 - RELATED PARTY TRANSACT

NOTE 9 - RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
NOTE 9 - RELATED PARTY TRANSACTIONS	NOTE 9 RELATED PARTY TRANSACTIONS (a) For the three months period ended March 31, 2018, the Company paid no remuneration (2017: 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. This deposit is expected to be refunded late this year.

NOTE 10 - INCOME TAXES

NOTE 10 - INCOME TAXES	3 Months Ended
	Mar. 31, 2018
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, 2018 and 2017, since the Company and its subsidiaries had significant net operating loss. In the three months ended March 31, 2018 and 2017, the Company and its subsidiaries incurred net operating losses for tax purposes of approximately $34,487 and $58,948, respectively. Total net operating losses carry forward as at March 31, 2018 and 2017, (i) for Federal and State purpose were $12,379,959 and $12,163,959, respectively and (ii) for its entities outside of the United States $66,831 and $59,207. 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, 2018 and December 31, 2017 was approximately $5,094,272 and $5,038,671 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: 2018 2017 Malaysia statutory rate 24% 24% Tax allowance - - Valuation allowance – Loss carryforward under Malaysia rate (24%) (24%) Provision for income tax - -

NOTE 11 - COMMITMENTS AND CONTI

NOTE 11 - COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2018
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, 2018
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.