Document and Entity Information
Document and Entity Information - $ / shares | May 17, 2021 | Mar. 31, 2021 |
Details | ||
Registrant CIK | 0001276531 | |
Fiscal Year End | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 000-50559 | |
Entity Registrant Name | SCIENTIFIC ENERGY, INC. | |
Entity Incorporation, State or Country Code | UT | |
Entity Tax Identification Number | 87-0680657 | |
Entity Address, Address Line One | 27 Weldon Street | |
Entity Address, City or Town | Jersey City | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07306 | |
Entity Address, Address Description | Address of principal executive offices | |
City Area Code | 852 | |
Local Phone Number | 2530-2089 | |
Phone Fax Number Description | Registrant's telephone number, including area code | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 114,915,852 | |
Entity Listing, Par Value Per Share | $ 0.01 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Document Quarterly Report | true |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (March 31, 2021 unaudited) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 20,983 | $ 14,468 |
Prepaid expense and other receivables | 19 | 0 |
Total current assets | 21,002 | 14,468 |
Non-current assets: | ||
Property, plant and equipment, net | 609 | 854 |
Operating lease right to use assets | 38,467 | 50,786 |
Deposits | 14,705 | 14,743 |
Total non-current assets | 53,781 | 66,383 |
Total assets | 74,783 | 80,851 |
Current liabilities: | ||
Accounts payable and accrued expenses | 1,162,865 | 1,164,395 |
Operating lease liability | 38,467 | 50,786 |
Note payable | 233,936 | 233,936 |
Stock subscription payables | 1,087,180 | 1,041,539 |
Total current liabilities | 2,522,448 | 2,490,656 |
Commitments and contingencies | 0 | 0 |
Stockholders' deficit: | ||
Preferred Stock, Value | 0 | 0 |
Common Stock, Value | 1,149,159 | 1,149,159 |
Additional paid in capital | 5,734,030 | 5,734,030 |
Accumulated deficit | (9,339,390) | (9,301,091) |
Accumulated other comprehensive loss | 8,536 | 8,097 |
Total stockholders' deficit | (2,447,665) | (2,409,805) |
Total liabilities and stockholders' deficit | $ 74,783 | $ 80,851 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (March 31, 2021 unaudited) - Parenthetical - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Details | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 25,000,000 | 25,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 |
Common Stock, Shares, Issued | 114,915,852 | 114,915,852 |
Common Stock, Shares, Outstanding | 114,915,852 | 114,915,852 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Details | ||
REVENUE | $ 0 | $ 0 |
COST OF REVENUE | 0 | 0 |
GROSS PROFIT | 0 | 0 |
OPERATING EXPENSES: | ||
Selling, general and administrative expenses | 35,130 | 120,402 |
Depreciation | 245 | 245 |
Total operating expenses | 35,375 | 120,647 |
NET LOSS FROM OPERATIONS | (35,375) | (120,647) |
Other income (expense): | ||
Interest (expense) income, net | (2,924) | (2,785) |
Net loss before provision for income taxes | (38,299) | (123,432) |
Income taxes | 0 | 0 |
NET LOSS | (38,299) | (123,432) |
OTHER COMPREHENIVE LOSS: | ||
Foreign translation gain (loss) | 439 | (743) |
Comprehensive loss | $ (37,860) | $ (124,175) |
Net loss per common share, basic and diluted | $ 0 | $ (0.001) |
Weighted average common shares outstanding, basic and diluted | 114,915,852 | 114,915,852 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT (unaudited) - USD ($) | Common Stock | Additional Paid-in Capital | Retained Earnings | AOCI Including Portion Attributable to Noncontrolling Interest | Total |
Equity Balance, Starting at Dec. 31, 2019 | $ 1,149,159 | $ 5,734,030 | $ (8,839,572) | $ 6,368 | $ (1,950,015) |
Shares Outstanding, Starting at Dec. 31, 2019 | 114,915,852 | ||||
Foreign currency transaction gain (loss) | $ 0 | 0 | 0 | (743) | (743) |
Net Income (Loss) | $ 0 | 0 | (123,432) | 0 | (123,432) |
Shares Outstanding, Ending at Mar. 31, 2020 | 114,915,852 | ||||
Equity Balance, Ending at Mar. 31, 2020 | $ 1,149,159 | 5,734,030 | (8,963,004) | 5,625 | (2,074,190) |
Equity Balance, Starting at Dec. 31, 2020 | $ 1,149,159 | 5,734,030 | (9,301,091) | 8,097 | (2,409,805) |
Shares Outstanding, Starting at Dec. 31, 2020 | 114,915,852 | ||||
Foreign currency transaction gain (loss) | $ 0 | 0 | 0 | 439 | 439 |
Net Income (Loss) | $ 0 | 0 | (38,299) | 0 | (38,299) |
Shares Outstanding, Ending at Mar. 31, 2021 | 114,915,852 | ||||
Equity Balance, Ending at Mar. 31, 2021 | $ 1,149,159 | $ 5,734,030 | $ (9,339,390) | $ 8,536 | $ (2,447,665) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (38,299) | $ (123,432) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 245 | 245 |
Prepaid expenses and other receivables | (19) | (200) |
Deposits | 38 | (71) |
Accounts payable and accrued expenses | (1,531) | 3,265 |
Net cash used in operating activities | (39,566) | (120,193) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from subscription received | 45,641 | 109,175 |
Net cash provided by financing activity | 45,641 | 109,175 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Sale proceeds from disposal of subsidiary | 1 | 0 |
Net cash provided by investing activity | 1 | 0 |
Effect of currency rate changes on cash | 439 | (743) |
Net increase (decrease) in cash and cash equivalents | 6,515 | (11,761) |
Cash and Cash Equivalents, at Carrying Value, Beginning Balance | 14,468 | 84,629 |
Cash and Cash Equivalents, at Carrying Value, Ending Balance | 20,983 | 72,868 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Interest paid | 2,924 | 2,785 |
Income taxes paid | 0 | 0 |
Non cash financing activities: | ||
Record right to use assets upon adoption of ASC 842 | 38,467 | 91,900 |
Record lease liabilities upon adoption of ASC 842 | $ 38,467 | $ 91,900 |
NOTE 1 - ORGANIZATION AND PRINC
NOTE 1 - ORGANIZATION AND PRINCIPAL ACTIVITIES | 3 Months Ended |
Mar. 31, 2021 | |
Notes | |
NOTE 1 - ORGANIZATION AND PRINCIPAL ACTIVITIES | NOTE 1 ORGANIZATION AND PRINCIPAL ACTIVITIES Scientific Energy, Inc., (the "Company") was incorporated under the laws of the State of Utah on May 30, 2001. Prior to August 2011, the Company was principally devoted to the buying and selling of various types and grades of graphite, such as medium- and high-carbon graphite, high-purity graphite, micro-powder graphite and expandable graphite. In August 2011, the Company decided to engage in a business of e-commerce platform. Currently the Company is in the process of developing a website, which provides an e-commerce platform, where registered members can exchange goods and services. On March 28, 2006, the Company set up a wholly owned subsidiary, PDI Global Limited (PDI), which was incorporated in the British Virgin Islands in order to engage in a business of e-commerce platform. In January 2008, the Company entered into a joint venture agreement with China Resources Development Group Ltd., a Hong Kong company. Under the agreement, a joint venture company, Kabond Investments Ltd (the JVC), was established in Hong Kong, and the Company invested $39.6 million Hong Kong dollars (approximately $5.09 million) into the JVC for 72% of the JVCs capital shares, and China Resources Development Group Ltd., jointly with its partner, invested $15.4 million Hong Kong dollars (approximately $1.98 million) into the JVC to receive 28% of the JVCs capital shares. In December 2008, all equity interest of the JVC owned by the Company was sold to a third party for $39.6 million Hong Kong dollars (approximately $5,109,743). In January 2009, the Company through its wholly-owned subsidiary, PDI, entered into a joint venture agreement with China Resources Development Group Ltd. Under the agreement, the Company agreed to invest $43,040,000 Hong Kong dollars (approximately $5.55 million) into a joint venture company Sinoforte Ltd. in Hong Kong (Sinoforte). The Company got 80% of Sinoforte's capital shares, and China Resources invested $10,222,000 Hong Kong dollars, approximately $1,318,967, and another investor invested $538,000 Hong Kong dollars, or approximately $69,419, into Sinoforte for 19% and 1% of Sinoforte's capital shares, respectively. The main business of Sinoforte was trading mineral products such as graphite produced in China. In June 2009 and September 2009, respectively, China Resources and the other minority investor cancelled their investments in Sinoforte, and the full amount of their original investments was returned. As a result, Sinoforte became a wholly-owned subsidiary of PDI. On December 8, 2020, PDI sold all the shares of Sinoforte to the Company at consideration of HK$10. On February 28, 2012, the Company set up a wholly owned subsidiary, Makeliving Ltd., which was incorporated in the Cayman Islands in order to engage in a business of e-commerce platform. On January 23, 2018, the Company entered into an agreement with Cityhill Limited, a wholly owned subsidiary of South Sea Petroleum Holdings Limited, a Hong Kong listed public company, pursuant to which parties agreed to establish a joint venture (the Joint Venture). Each party owns 50% equity interest in the Joint Venture respectively On February 8, 2021, the Company acquired an entire shares of a Hong Kong company, Qwestro Limited, for HK$1,000 without any goodwill and bargaining purchase. On March 24, 2021, the Company disposed of its wholly-owned dormant subsidiary, PDI Global Limited, with a positive net worth of $1 to an unaffiliated third party purchaser for $1. |
NOTE 2 - SUMMARY OF SIGNIFICANT
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2021 | |
Notes | |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying audited consolidated financial statements of the Company are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America (US GAAP) and pursuant to the accounting and disclosure rules and regulations of the U.S. Securities and Exchange Commission (the SEC). In the opinion of management, all adjustments (consisting of normal recurring adjustments) have been made that are necessary to present fairly the financial position, and the results of its operations and its cash flows. Operating results as presented are not necessarily indicative of the results to be expected for a full year. The Company's 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. The Company has not generated significant revenues since 2011 and is unlikely to generate significant earnings in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the ability of the Company to obtain necessary equity financing to continue operations and the attainment of profitable operations. The management will seek to raise funds from shareholders. The accompanying consolidated financial statements present the financial position and the results of operations of the Company and its 100% owned subsidiaries, Makeliving, Ltd. and Sinoforte Limited. Qwestro Limited, in turn, is the 100% owned subsidiary and consolidates with Sinoforte Limited. All significant intercompany transactions and balances have been eliminated in consolidation. Interim Financial Statements The following (a) condensed consolidated balance sheet as of December 31, 2020, which has been derived from audited financial statements, and (b) the unaudited condensed consolidated interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2021 are not necessarily indicative of results that may be expected for the year ending December 31, 2021. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2020 included in the Companys Annual Report on Form 10-K, filed with the Securities and Exchange Commission (SEC) on April 15, 2021. The Company recognizes revenue when: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed or determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on managements judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related revenue is recorded. The Company defers any revenue for which the product has not been delivered or services have not been rendered or are subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or services have been rendered or no refund will be required. Revenues on the sale of products, net of estimated costs of returns and allowance, are recognized at the time products are shipped to customers, legal title has passed, and all significant contractual obligations of the Company have been satisfied. Products are generally sold on open accounts under credit terms customary to the geographic region of distribution. The Company performs ongoing credit evaluations of the customers and generally does not require collateral to secure the accounts receivable. The Company is exploring web based e-commerce to bring buyers and sellers together recognizing revenue as commissions on closed transactions. Segment information ASC 280-10 establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information for those segments to be presented in interim financial reports issued to stockholders. ASC 280-10 also establishes standards for related disclosures about products and services and geographic areas. Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision-making group, in making decisions how to allocate resources and assess performance. All sales and substantial assets of the Company are in China. The Company applies the management approach to the identification of our reportable operating segments as provided in accordance with ASC 280-10. The information disclosed herein materially represents all of the financial information related to the Companys principal operating segment. Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Concentration of Credit Risk The Companys financial instruments that are exposed to a concentration of credit risk are cash and accounts receivable. Generally, the Companys cash and cash equivalents in interest-bearing accounts may exceed FDIC insurance limits. The financial stability of these institutions is periodically reviewed by senior management. As of March 31, 2021, and December 31, 2020, the Company maintained $3,106 and Nil in foreign bank accounts not subject to FDIC coverage. The Company has no significant off-balance-sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign hedging arrangements. Cash and Cash Equivalents For purposes of the statements of cash flows, cash and cash equivalents include cash on hand and demand deposits held by banks. Comprehensive Income (Loss) The Company adopted Accounting Standards Codification subtopic 220-10, Comprehensive Income (ASC 220-10) which establishes standards for the reporting and displaying of comprehensive income and its components. Comprehensive income is defined as the change in equity of a business during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. ASC 220-10 requires other comprehensive income (loss) to include foreign currency translation adjustments. Foreign Currency Translation The Company translates the foreign currency consolidated financial statements into US Dollars (USD) using the year or reporting period-end or average exchange rates in accordance with the requirements of Accounting Standards Codification subtopic 830-10, Foreign Currency Matters (ASC 830-10). Assets and liabilities of these subsidiaries were translated at exchange rates as of the balance sheet date. Revenues and expenses are translated at average rates in effect for the periods presented. The consolidated financial statements were presented in US Dollars except as other specified. The cumulative translation adjustment is included in the accumulated other comprehensive gain (loss) within stockholders equity (deficit). Foreign currency transaction gains and losses arising from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the consolidated results of operations. The exchange rates used to translate amounts in HKD into US Dollars for the purposes of preparing the consolidated financial statements were as follows: March 31, December 31, 2021 2020 Exchange rate on balance sheet dates USD : HKD exchange rate 7.7743 7.7536 For the three months ended March 31, 2021 2020 Average exchange rate for the period USD : HKD exchange rate 7.7576 7.7706 Property, plant and equipment The estimated useful lives of property, plant and equipment are as follows: Office equipment 3 years Furniture and fixtures 3 years Vehicles 4 years The Company evaluates the carrying value of items of property, plant and equipment to be held and used whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The carrying value of an item of property, plant and equipment is considered impaired when the projected undiscounted future cash flows related to the asset are less than its carrying value. The Company measures impairment based on the amount by which the carrying value of the respective asset exceeds its fair value. Fair value is determined primarily using the projected future cash flows discounted at a rate commensurate with the risk involved. Fair Value Measurements ASC Topic 820 defines fair value, establishes a framework for measuring fair value and enhances disclosure requirements for fair value measurements. This topic does not require any new fair value measurements. ASC Topic 820 defines fair value as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, ASC Topic 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1 Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 Other inputs that is directly or indirectly observable in the marketplace. Level 3 Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Earnings (Loss) Per Share Earnings Per Share (EPS) is computed by dividing net income available to common stockholders by the weighted average number of common stock shares outstanding during the year. Diluted EPS is computed by dividing net income available to common stockholders by the weighted average number of common stock shares outstanding during the year plus potential dilutive instruments such as stock options and warrants. The effect of stock options on diluted EPS is determined through the application of the treasury stock method, whereby proceeds received by the Company based on assumed exercises are hypothetically used to repurchase the Company's common stock at the average market price during the period. The Company has no stock options, warrants or other potentially dilutive instruments outstanding at March 31, 2021 and December 31, 2020. Investment in Unconsolidated Joint Ventures The Company entered into a JV agreement with an independent third party, to form a JV company. The joint venture agreement provides the Company with only the rights to the assets and obligation for the liabilities of the joint arrangement resting primarily with the JV. In adopting ASC Topic 323, Investments - Equity Method and Joint Ventures (Topic 323), the Companys investment in joint venture is accounted for using the equity method. Recent Accounting Pronouncements The Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on results of operations, financial condition, or cash flows, based on current information. |
NOTE 3 - GOING CONCERN
NOTE 3 - GOING CONCERN | 3 Months Ended |
Mar. 31, 2021 | |
Notes | |
NOTE 3 - GOING CONCERN | NOTE 3 GOING CONCERN As shown in the accompanying consolidated financial statements, the Company has generated a net loss of $38,299 and an accumulated deficit of $9,339,390 as of March 31, 2021. The Company also experienced insufficient cash flows from operations and will be required continuous financial support from the shareholders. The Company will need to raise capital to fund its operations until it is able to generate sufficient revenue to support the future development. Moreover, the Company may be continuously raising capital through the sale of debt and equity securities. The Companys ability to achieve these objectives cannot be determined at this stage. If the Company is unsuccessful in its endeavors, it may be forced to cease operations. These consolidated financial statements do not include any adjustments that might result from this uncertainty which may include adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern. These factors have raised substantial doubt about the Companys ability to continue as a going concern. There can be no assurances that the Company will be able to obtain adequate financing or achieve profitability. These consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
NOTE 4 - PROPERTY, PLANT AND EQ
NOTE 4 - PROPERTY, PLANT AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2021 | |
Notes | |
NOTE 4 - PROPERTY, PLANT AND EQUIPMENT | NOTE 4 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment as of March 31, 2021 and December 31, 2020 is summarized as follows: Schedule of Property and Equipment March 31, 2021 December 31, 2020 (unaudited) Office furniture and fixtures $ 678 $ 679 Office equipment 9,959 9,968 Vehicles 164,827 165,267 Less: accumulated depreciation (174,855 ) (175,060) Property, plant and equipment, net $ 609 $ 854 Depreciation expense for the three months ended March 31, 2021 and 2020 was $245 and $245, respectively. |
NOTE 5 - RIGHT TO USE ASSETS AN
NOTE 5 - RIGHT TO USE ASSETS AND LEASE LIABILITY | 3 Months Ended |
Mar. 31, 2021 | |
Notes | |
NOTE 5 - RIGHT TO USE ASSETS AND LEASE LIABILITY | NOTE 5 RIGHT TO USE ASSETS AND LEASE LIABILITY In January 2020, the Company entered a two-year lease for office space of approximately 770 square feet in Hong Kong, expiring January 10, 2022, with monthly payments of approximately $4,418 per month. At lease commencement date, the Company estimated the lease liability and the right of use assets at present value using the Companys estimated incremental borrowing rate of 8% and determined the initial present value, at inception, of $98,331. Right to use assets is summarized below: March 31, 2021 December 31, 2020 New York $ - $ 62,322 Hong Kong 98,331 98,331 Subtotal 98,331 160,653 Less accumulated depreciation (59,864) (109,867) Right to use assets, net $ 38,467 $ 50,786 During the three months ended March 31, 2021 and 2020, the Company recorded $15,201 and $22,241 as lease expense to current period operations. Lease liability is summarized below: March 31, 2021 December 31, 2020 Hong Kong $ 38,467 $ 50,786 Less: short term portion (38,467) (50,786) Long term portion $ - $ - Maturity analysis under these lease agreements are as follows: March 31, 2021 December 31, 2020 Year ended December 31, 2021 $ 39,760 $ 53,014 Less: Present value discount (1,293) (2,228) Lease liability $ 38,467 $ 50,786 Lease expense for the three months ended March 31, 2021 was comprised of the following: Operating lease expense $ 13,251 Short-term lease expense 1,950 $ 15,201 Lease expense for the three months ended March 31, 2020 was comprised of the following: Operating lease expense $ 21,661 Short-term lease expense 580 $ 22,241 |
NOTE 6 - NOTE PAYABLE
NOTE 6 - NOTE PAYABLE | 3 Months Ended |
Mar. 31, 2021 | |
Notes | |
NOTE 6 - NOTE PAYABLE | NOTE 6 NOTE PAYABLE In May 2018, the Company issued an unsecured note payable for $35,000 bearing interest at 5.0% per annum, payable monthly and due on July 1, 2019. The Company entered into an Extension Agreement in order to extend the due date of the note payable for all outstanding principal and accrued and unpaid interest due to November 18, 2020. In November 2018, the Company issued an unsecured note payable for $65,000 bearing interest at 5.0% per annum, payable monthly and due on November 18, 2020. In July 2019, the Company issued an unsecured note payable for $123,000 bearing interest at 5.0% per annum, payable monthly and due on July 9, 2021. In November 2020, upon maturity of the May 2018 and November 2018 unsecured notes in aggregate of $100,000, the Company issued an unsecured note payable of $110,936 as payment of the maturing notes payable and accrued interest of $10,936. The note payable bears interest of 5% and is due on December 31, 2022. The above accrued interests are included in accrued expenses and payable on the maturity date. |
NOTE 7 - STOCK SUBCRIPTION PAYA
NOTE 7 - STOCK SUBCRIPTION PAYABLES | 3 Months Ended |
Mar. 31, 2021 | |
Notes | |
NOTE 7 - STOCK SUBCRIPTION PAYABLES | NOTE 7 STOCK SUBCRIPTION PAYABLES During the three months ended March 31, 2021, the Company received deposits of $45,641 (HK$356,000) from non-related parties with intentions to purchase the Companys common stock. However, the transactions have not yet completed and therefore have been classified outside of equity for financial statement presentation. The deposits received are non-interest bearing and due on demand, if the transaction does not consummate. |
NOTE 8 - CAPITAL STOCK
NOTE 8 - CAPITAL STOCK | 3 Months Ended |
Mar. 31, 2021 | |
Notes | |
NOTE 8 - CAPITAL STOCK | NOTE 8 CAPITAL STOCK The Company is authorized to issue 500,000,000 shares of common stock, $0.01 par value, and 25,000,000 shares of preferred stock, $0.01 par value. As of March 31, 2021 and December 31, 2020, there were 114,915,852 shares of the Companys common stock issued and outstanding, and none of the preferred shares were issued and outstanding. As of March 31, 2021, Kelton Capital Group Ltd. owned 31,190,500 shares or 27.2% of the Companys common stock, and Aspect Group Limited owned 20,000,000 shares, or 17.4% of the Companys common stock. Other than Kelton Capital Group Ltd and Aspect Group Ltd, no person owns 5% or more of the Companys issued and outstanding shares. |
NOTE 9 - LOSS PER SHARE
NOTE 9 - LOSS PER SHARE | 3 Months Ended |
Mar. 31, 2021 | |
Notes | |
NOTE 9 - LOSS PER SHARE | NOTE 9 LOSS PER SHARE The following table sets forth the computation of basic and diluted loss per common share for the three months ended March 31, 2021 and 2020, respectively: March 31, 2021 March 31, 2020 (unaudited) (unaudited) Numerator - basic and diluted Net loss $ (38,299) $ (123,432) Denominator Weighted average number of common shares outstanding basic and diluted 114,915,852 114,915,852 Loss per common share basic and diluted $ (0.000) $ (0.001) |
NOTE 10 - JOINT VENTURE
NOTE 10 - JOINT VENTURE | 3 Months Ended |
Mar. 31, 2021 | |
Notes | |
NOTE 10 - JOINT VENTURE | NOTE 10 - JOINT VENTURE Gold Gold Gold Limited (JV) was created in February 2018. The Company entered into a JV agreement with primary activity of trading of gold. The Company injected $12,839 (HK$100,000) to the JV during the year ended December 31, 2019. The Company shared the operating loss from JV of $12,839 during the year. Summarized financial information for joint venture is as follows: Balance Sheets: March 31, 2021 December 31, 2020 (unaudited) (audited) Property, plant and equipment, net $ 4,510 $ 4,797 Account receivables - - Other receivables and prepaid 8,875 8,938 Inventory 799,523 496,015 Cash and cash equivalents 517,783 402,880 Total assets 1,330,691 912,630 Other payable to shareholder (3,277,591) (3,286,343) Customer deposit (1,280,857) (627,966) Total liabilities (4,558,448) (3,914,309) Net liabilities $ (3,227,757) $ (3,001,679) Statement of Operations: Three months ended March 31, 2021 (unaudited) Revenue $ 460,560 Less: Cost of sales (439,934) 20,626 Operating expense (213,868) Depreciation (275) Net loss from operations (193,517) Other income (expense): Interest (expense) income, net (41,058) Net loss $ (234,575) |
NOTE 11 - COMMITMENTS AND CONTI
NOTE 11 - COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2021 | |
Notes | |
NOTE 11 - COMMITMENTS AND CONTINGENCIES | NOTE 11 - COMMITMENTS AND CONTINGENCIES Legal proceedings As of March 31, 2021, the Company is not aware of any material outstanding claim and litigation against them. |
NOTE 12 - SUBSEQUENT EVENTS
NOTE 12 - SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2021 | |
Notes | |
NOTE 12 - SUBSEQUENT EVENTS | NOTE 12 - SUBSEQUENT EVENTS On May 10, 2021, Scientific Energy, Inc. (the Company) entered into a stock purchase agreement with multiple accredited investors to sell and issue to the purchasers in reliance on Section 4(2) of the Securities Act of 1933, as amended and Rule 506 promulgated thereunder, an aggregate of 17,084,148 shares of the Companys common stock, par value $0.01 per share (Shares) at a price of $0.50 per Share. Proceeds to the Company from the sale of the Shares were $8,542,074. On May 10, 2021, the Company entered into a share purchase agreement, by and among the Company, Macao E-Media Development Company Limited, a company registered in Macao (MED), and the shareholders of MED (the MED Shareholders and, together with MED, the Sellers), whereby the Company acquired from the Sellers 98.75% of the issued and outstanding share capital of MED (the MED Shares). As consideration for the MED Shares, the Company agreed to issue the Sellers in a total of 131,337,500 shares of the Companys restricted common stock, par value $0.01 per share, at a consideration of $0.50 per share, in the aggregate consideration of $65,668,750. |
NOTE 2 - SUMMARY OF SIGNIFICA_2
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
Basis of Presentation | Basis of Presentation The accompanying audited consolidated financial statements of the Company are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America (US GAAP) and pursuant to the accounting and disclosure rules and regulations of the U.S. Securities and Exchange Commission (the SEC). In the opinion of management, all adjustments (consisting of normal recurring adjustments) have been made that are necessary to present fairly the financial position, and the results of its operations and its cash flows. Operating results as presented are not necessarily indicative of the results to be expected for a full year. The Company's 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. The Company has not generated significant revenues since 2011 and is unlikely to generate significant earnings in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the ability of the Company to obtain necessary equity financing to continue operations and the attainment of profitable operations. The management will seek to raise funds from shareholders. The accompanying consolidated financial statements present the financial position and the results of operations of the Company and its 100% owned subsidiaries, Makeliving, Ltd. and Sinoforte Limited. Qwestro Limited, in turn, is the 100% owned subsidiary and consolidates with Sinoforte Limited. All significant intercompany transactions and balances have been eliminated in consolidation. |
NOTE 2 - SUMMARY OF SIGNIFICA_3
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Interim Financial Statements (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
Interim Financial Statements | Interim Financial Statements The following (a) condensed consolidated balance sheet as of December 31, 2020, which has been derived from audited financial statements, and (b) the unaudited condensed consolidated interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2021 are not necessarily indicative of results that may be expected for the year ending December 31, 2021. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2020 included in the Companys Annual Report on Form 10-K, filed with the Securities and Exchange Commission (SEC) on April 15, 2021. The Company recognizes revenue when: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed or determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on managements judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related revenue is recorded. The Company defers any revenue for which the product has not been delivered or services have not been rendered or are subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or services have been rendered or no refund will be required. Revenues on the sale of products, net of estimated costs of returns and allowance, are recognized at the time products are shipped to customers, legal title has passed, and all significant contractual obligations of the Company have been satisfied. Products are generally sold on open accounts under credit terms customary to the geographic region of distribution. The Company performs ongoing credit evaluations of the customers and generally does not require collateral to secure the accounts receivable. The Company is exploring web based e-commerce to bring buyers and sellers together recognizing revenue as commissions on closed transactions. |
NOTE 2 - SUMMARY OF SIGNIFICA_4
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Segment information (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
Segment information | Segment information ASC 280-10 establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information for those segments to be presented in interim financial reports issued to stockholders. ASC 280-10 also establishes standards for related disclosures about products and services and geographic areas. Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision-making group, in making decisions how to allocate resources and assess performance. All sales and substantial assets of the Company are in China. The Company applies the management approach to the identification of our reportable operating segments as provided in accordance with ASC 280-10. The information disclosed herein materially represents all of the financial information related to the Companys principal operating segment. |
NOTE 2 - SUMMARY OF SIGNIFICA_5
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Use of Estimates (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
NOTE 2 - SUMMARY OF SIGNIFICA_6
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Concentration of Credit Risk (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
Concentration of Credit Risk | Concentration of Credit Risk The Companys financial instruments that are exposed to a concentration of credit risk are cash and accounts receivable. Generally, the Companys cash and cash equivalents in interest-bearing accounts may exceed FDIC insurance limits. The financial stability of these institutions is periodically reviewed by senior management. As of March 31, 2021, and December 31, 2020, the Company maintained $3,106 and Nil in foreign bank accounts not subject to FDIC coverage. The Company has no significant off-balance-sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign hedging arrangements. |
NOTE 2 - SUMMARY OF SIGNIFICA_7
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Cash and Cash Equivalents (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the statements of cash flows, cash and cash equivalents include cash on hand and demand deposits held by banks. |
NOTE 2 - SUMMARY OF SIGNIFICA_8
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Comprehensive Income (Loss) (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
Comprehensive Income (Loss) | Comprehensive Income (Loss) The Company adopted Accounting Standards Codification subtopic 220-10, Comprehensive Income (ASC 220-10) which establishes standards for the reporting and displaying of comprehensive income and its components. Comprehensive income is defined as the change in equity of a business during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. ASC 220-10 requires other comprehensive income (loss) to include foreign currency translation adjustments. |
NOTE 2 - SUMMARY OF SIGNIFICA_9
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Foreign Currency Translation (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
Foreign Currency Translation | Foreign Currency Translation The Company translates the foreign currency consolidated financial statements into US Dollars (USD) using the year or reporting period-end or average exchange rates in accordance with the requirements of Accounting Standards Codification subtopic 830-10, Foreign Currency Matters (ASC 830-10). Assets and liabilities of these subsidiaries were translated at exchange rates as of the balance sheet date. Revenues and expenses are translated at average rates in effect for the periods presented. The consolidated financial statements were presented in US Dollars except as other specified. The cumulative translation adjustment is included in the accumulated other comprehensive gain (loss) within stockholders equity (deficit). Foreign currency transaction gains and losses arising from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the consolidated results of operations. The exchange rates used to translate amounts in HKD into US Dollars for the purposes of preparing the consolidated financial statements were as follows: March 31, December 31, 2021 2020 Exchange rate on balance sheet dates USD : HKD exchange rate 7.7743 7.7536 For the three months ended March 31, 2021 2020 Average exchange rate for the period USD : HKD exchange rate 7.7576 7.7706 |
NOTE 2 - SUMMARY OF SIGNIFIC_10
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Property, plant and equipment (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
Property, plant and equipment | Property, plant and equipment The estimated useful lives of property, plant and equipment are as follows: Office equipment 3 years Furniture and fixtures 3 years Vehicles 4 years The Company evaluates the carrying value of items of property, plant and equipment to be held and used whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The carrying value of an item of property, plant and equipment is considered impaired when the projected undiscounted future cash flows related to the asset are less than its carrying value. The Company measures impairment based on the amount by which the carrying value of the respective asset exceeds its fair value. Fair value is determined primarily using the projected future cash flows discounted at a rate commensurate with the risk involved. |
NOTE 2 - SUMMARY OF SIGNIFIC_11
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Fair Value Measurements (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
Fair Value Measurements | Fair Value Measurements ASC Topic 820 defines fair value, establishes a framework for measuring fair value and enhances disclosure requirements for fair value measurements. This topic does not require any new fair value measurements. ASC Topic 820 defines fair value as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, ASC Topic 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1 Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 Other inputs that is directly or indirectly observable in the marketplace. Level 3 Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. |
NOTE 2 - SUMMARY OF SIGNIFIC_12
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Earnings (Loss) Per Share (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Earnings Per Share (EPS) is computed by dividing net income available to common stockholders by the weighted average number of common stock shares outstanding during the year. Diluted EPS is computed by dividing net income available to common stockholders by the weighted average number of common stock shares outstanding during the year plus potential dilutive instruments such as stock options and warrants. The effect of stock options on diluted EPS is determined through the application of the treasury stock method, whereby proceeds received by the Company based on assumed exercises are hypothetically used to repurchase the Company's common stock at the average market price during the period. The Company has no stock options, warrants or other potentially dilutive instruments outstanding at March 31, 2021 and December 31, 2020. |
NOTE 2 - SUMMARY OF SIGNIFIC_13
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Investment in Unconsolidated Joint Ventures (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
Investment in Unconsolidated Joint Ventures | Investment in Unconsolidated Joint Ventures The Company entered into a JV agreement with an independent third party, to form a JV company. The joint venture agreement provides the Company with only the rights to the assets and obligation for the liabilities of the joint arrangement resting primarily with the JV. In adopting ASC Topic 323, Investments - Equity Method and Joint Ventures (Topic 323), the Companys investment in joint venture is accounted for using the equity method. |
NOTE 2 - SUMMARY OF SIGNIFIC_14
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on results of operations, financial condition, or cash flows, based on current information. |
NOTE 2 - SUMMARY OF SIGNIFIC_15
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Foreign Currency Translation: Schedule of Exchange Rates used for preparing the consolidated financial statements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Schedule of Exchange Rates used for preparing the consolidated financial statements | March 31, December 31, 2021 2020 Exchange rate on balance sheet dates USD : HKD exchange rate 7.7743 7.7536 For the three months ended March 31, 2021 2020 Average exchange rate for the period USD : HKD exchange rate 7.7576 7.7706 |
NOTE 2 - SUMMARY OF SIGNIFIC_16
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Property, plant and equipment: Schedule of Property, plant and equipment Useful Lives (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Schedule of Property, plant and equipment Useful Lives | Office equipment 3 years Furniture and fixtures 3 years Vehicles 4 years |
NOTE 4 - PROPERTY, PLANT AND _2
NOTE 4 - PROPERTY, PLANT AND EQUIPMENT: Schedule of Property and Equipment (March 31, 2019 Unaudited) (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Schedule of Property and Equipment (March 31, 2019 Unaudited) | March 31, 2021 December 31, 2020 (unaudited) Office furniture and fixtures $ 678 $ 679 Office equipment 9,959 9,968 Vehicles 164,827 165,267 Less: accumulated depreciation (174,855 ) (175,060) Property, plant and equipment, net $ 609 $ 854 |
NOTE 5 - RIGHT TO USE ASSETS _2
NOTE 5 - RIGHT TO USE ASSETS AND LEASE LIABILITY: Schedule of Right to Use Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Schedule of Right to Use Assets | March 31, 2021 December 31, 2020 New York $ - $ 62,322 Hong Kong 98,331 98,331 Subtotal 98,331 160,653 Less accumulated depreciation (59,864) (109,867) Right to use assets, net $ 38,467 $ 50,786 |
NOTE 5 - RIGHT TO USE ASSETS _3
NOTE 5 - RIGHT TO USE ASSETS AND LEASE LIABILITY: Schedule of Lease Liability (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Schedule of Lease Liability | March 31, 2021 December 31, 2020 Hong Kong $ 38,467 $ 50,786 Less: short term portion (38,467) (50,786) Long term portion $ - $ - |
NOTE 5 - RIGHT TO USE ASSETS _4
NOTE 5 - RIGHT TO USE ASSETS AND LEASE LIABILITY: Schedule of Maturity Analysis under the Lease Agreements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Schedule of Maturity Analysis under the Lease Agreements | March 31, 2021 December 31, 2020 Year ended December 31, 2021 $ 39,760 $ 53,014 Less: Present value discount (1,293) (2,228) Lease liability $ 38,467 $ 50,786 |
NOTE 5 - RIGHT TO USE ASSETS _5
NOTE 5 - RIGHT TO USE ASSETS AND LEASE LIABILITY: Schedule of Lease Expenses (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Schedule of Lease Expenses | Operating lease expense $ 13,251 Short-term lease expense 1,950 $ 15,201 Lease expense for the three months ended March 31, 2020 was comprised of the following: Operating lease expense $ 21,661 Short-term lease expense 580 $ 22,241 |
NOTE 9 - LOSS PER SHARE_ Schedu
NOTE 9 - LOSS PER SHARE: Schedule of Computation of basic and diluted loss per common share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Schedule of Computation of basic and diluted loss per common share | March 31, 2021 March 31, 2020 (unaudited) (unaudited) Numerator - basic and diluted Net loss $ (38,299) $ (123,432) Denominator Weighted average number of common shares outstanding basic and diluted 114,915,852 114,915,852 Loss per common share basic and diluted $ (0.000) $ (0.001) |
NOTE 10 - JOINT VENTURE_ Schedu
NOTE 10 - JOINT VENTURE: Schedule of Summarized Balance Sheet information for joint venture (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Schedule of Summarized Balance Sheet information for joint venture | Balance Sheets: March 31, 2021 December 31, 2020 (unaudited) (audited) Property, plant and equipment, net $ 4,510 $ 4,797 Account receivables - - Other receivables and prepaid 8,875 8,938 Inventory 799,523 496,015 Cash and cash equivalents 517,783 402,880 Total assets 1,330,691 912,630 Other payable to shareholder (3,277,591) (3,286,343) Customer deposit (1,280,857) (627,966) Total liabilities (4,558,448) (3,914,309) Net liabilities $ (3,227,757) $ (3,001,679) |
NOTE 10 - JOINT VENTURE_ Sche_2
NOTE 10 - JOINT VENTURE: Schedule of Summarized Statement of Operations information for joint venture (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Schedule of Summarized Statement of Operations information for joint venture | Statement of Operations: Three months ended March 31, 2021 (unaudited) Revenue $ 460,560 Less: Cost of sales (439,934) 20,626 Operating expense (213,868) Depreciation (275) Net loss from operations (193,517) Other income (expense): Interest (expense) income, net (41,058) Net loss $ (234,575) |
NOTE 1 - ORGANIZATION AND PRI_2
NOTE 1 - ORGANIZATION AND PRINCIPAL ACTIVITIES (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Details | |
Entity Incorporation, State or Country Code | UT |
Entity Incorporation, Date of Incorporation | May 30, 2001 |
NOTE 2 - SUMMARY OF SIGNIFIC_17
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Concentration of Credit Risk (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Details | ||
Deposits in foreign bank accounts not subject to FDIC coverage | $ 3,106 | $ 0 |
NOTE 2 - SUMMARY OF SIGNIFIC_18
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Foreign Currency Translation: Schedule of Exchange Rates used for preparing the consolidated financial statements (Details) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Details | |||
USD to HKD exchange rate on balance sheet date | 7.7743 | 7.7536 | |
Average exchange rate for the period | 7.7576 | 7.7706 |
NOTE 2 - SUMMARY OF SIGNIFIC_19
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Property, plant and equipment: Schedule of Property, plant and equipment Useful Lives (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Office Equipment | |
Property, Plant and Equipment, Useful Life | 3 years |
Furniture and Fixtures | |
Property, Plant and Equipment, Useful Life | 3 years |
Vehicles | |
Property, Plant and Equipment, Useful Life | 4 years |
NOTE 3 - GOING CONCERN (Details
NOTE 3 - GOING CONCERN (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Net Income (Loss) | $ (38,299) | $ (123,432) | |
Accumulated deficit | (9,339,390) | $ (9,301,091) | |
Retained Earnings | |||
Net Income (Loss) | $ (38,299) | $ (123,432) |
NOTE 4 - PROPERTY, PLANT AND _3
NOTE 4 - PROPERTY, PLANT AND EQUIPMENT: Schedule of Property and Equipment (March 31, 2019 Unaudited) (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Details | ||
Office furniture and fixtures | $ 678 | $ 679 |
Office equipment | 9,959 | 9,968 |
Vehicles | 164,827 | 165,267 |
Less: accumulated depreciation | (174,855) | (175,060) |
Property, plant and equipment, net | $ 609 | $ 854 |
NOTE 5 - RIGHT TO USE ASSETS _6
NOTE 5 - RIGHT TO USE ASSETS AND LEASE LIABILITY (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Details | |||
Right-to-use Asset, Subtotal | $ 98,331 | $ 160,653 | |
Recorded lease expense | $ 15,201 | $ 22,241 |
NOTE 5 - RIGHT TO USE ASSETS _7
NOTE 5 - RIGHT TO USE ASSETS AND LEASE LIABILITY: Schedule of Right to Use Assets (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Details | ||
Right-to-use Asset, New York | $ 0 | $ 62,322 |
Right-to-use Asset, Hong Kong | 98,331 | 98,331 |
Right-to-use Asset, Subtotal | 98,331 | 160,653 |
Right to use assets - Less accumulated depreciation | (59,864) | (109,867) |
Right to use assets, net | $ 38,467 | $ 50,786 |
NOTE 5 - RIGHT TO USE ASSETS _8
NOTE 5 - RIGHT TO USE ASSETS AND LEASE LIABILITY: Schedule of Lease Liability (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Details | ||
Lease Liability - Hong Kong | $ 38,467 | $ 50,786 |
Lease Liability - Less: short term portion | (38,467) | (50,786) |
Lease Liability - Long term portion | $ 0 | $ 0 |
NOTE 5 - RIGHT TO USE ASSETS _9
NOTE 5 - RIGHT TO USE ASSETS AND LEASE LIABILITY: Schedule of Maturity Analysis under the Lease Agreements (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Details | ||
Lease Liability - Year ended December 31, 2020 | $ 39,760 | $ 53,014 |
Lease Liability - Less: Present value discount | (1,293) | (2,228) |
Lease liability | $ 38,467 | $ 50,786 |
NOTE 5 - RIGHT TO USE ASSETS_10
NOTE 5 - RIGHT TO USE ASSETS AND LEASE LIABILITY: Schedule of Lease Expenses (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Details | ||
Operating lease expense | $ 13,251 | $ 21,661 |
Short-term lease expense | 1,950 | 580 |
Operating Leases, Rent Expense | $ 15,201 | $ 22,241 |
NOTE 6 - NOTE PAYABLE (Details)
NOTE 6 - NOTE PAYABLE (Details) | 3 Months Ended |
Mar. 31, 2021USD ($) | |
In May 2018 | |
Debt Instrument, Issuer | Company |
Debt Instrument, Collateral | unsecured |
Debt Instrument, Description | note payable |
Debt Instrument, Face Amount | $ 35,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.00% |
Debt Instrument, Payment Terms | payable monthly |
Debt Instrument, Maturity Date | Jul. 1, 2019 |
In November 2018 | |
Debt Instrument, Issuer | Company |
Debt Instrument, Collateral | unsecured |
Debt Instrument, Description | note payable |
Debt Instrument, Face Amount | $ 65,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.00% |
Debt Instrument, Payment Terms | payable monthly |
Debt Instrument, Maturity Date | Nov. 18, 2020 |
In July 2019 | |
Debt Instrument, Issuer | Company |
Debt Instrument, Collateral | unsecured |
Debt Instrument, Description | note payable |
Debt Instrument, Face Amount | $ 123,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.00% |
Debt Instrument, Payment Terms | payable monthly |
Debt Instrument, Maturity Date | Jul. 9, 2021 |
In November 2020 | |
Debt Instrument, Issuer | Company |
Debt Instrument, Collateral | unsecured |
Debt Instrument, Face Amount | $ 110,936 |
Debt Instrument, Interest Rate, Stated Percentage | 5.00% |
Debt Instrument, Maturity Date | Dec. 31, 2022 |
NOTE 7 - STOCK SUBCRIPTION PA_2
NOTE 7 - STOCK SUBCRIPTION PAYABLES (Details) | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Details | |
Revenue from Related Parties | $ 45,641 |
NOTE 8 - CAPITAL STOCK (Details
NOTE 8 - CAPITAL STOCK (Details) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Details | ||
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 25,000,000 | 25,000,000 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares, Outstanding | 114,915,852 | 114,915,852 |
NOTE 9 - LOSS PER SHARE_ Sche_2
NOTE 9 - LOSS PER SHARE: Schedule of Computation of basic and diluted loss per common share (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Details | ||
NET LOSS | $ (38,299) | $ (123,432) |
Weighted average common shares outstanding, basic and diluted | 114,915,852 | 114,915,852 |
Net loss per common share, basic and diluted | $ 0 | $ (0.001) |
NOTE 10 - JOINT VENTURE_ Sche_3
NOTE 10 - JOINT VENTURE: Schedule of Summarized Balance Sheet information for joint venture (Details) - Joint Venture - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Property, plant and equipment, net | $ 4,510 | $ 4,797 |
Account receivables | 0 | 0 |
Other receivables and prepaid | 8,875 | 8,938 |
Inventory | 799,523 | 496,015 |
Cash and cash equivalents | 517,783 | 402,880 |
Total assets | 1,330,691 | 912,630 |
Other payable to shareholder | (3,277,591) | (3,286,343) |
Customer deposit | (1,280,857) | (627,966) |
Liabilities | (4,558,448) | (3,914,309) |
Net liabilities | $ (3,227,757) | $ (3,001,679) |
NOTE 10 - JOINT VENTURE_ Sche_4
NOTE 10 - JOINT VENTURE: Schedule of Summarized Statement of Operations information for joint venture (Details) - Joint Venture | 3 Months Ended |
Mar. 31, 2021USD ($) | |
REVENUE | $ 460,560 |
COST OF REVENUE | (439,934) |
GROSS PROFIT | 20,626 |
Operating expense | (213,868) |
Depreciation | (275) |
NET LOSS FROM OPERATIONS | (193,517) |
Other income (expense): | |
Interest (expense) income, net | (41,058) |
NET LOSS | $ (234,575) |
NOTE 12 - SUBSEQUENT EVENTS (De
NOTE 12 - SUBSEQUENT EVENTS (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Purchase Agreement #1 | |
Subsequent Event, Date | May 10, 2021 |
Subsequent Event, Description | Scientific Energy, Inc. (the “Company”) entered into a stock purchase agreement with multiple accredited investors |
Purchase Agreement #2 | |
Subsequent Event, Date | May 10, 2021 |
Subsequent Event, Description | Company entered into a share purchase agreement, by and among the Company, Macao E-Media Development Company Limited, a company registered in Macao (“MED”), and the shareholders of MED (the “MED Shareholders” and, together with MED, the “Sellers”) |