Microalliance (MALG) 10-Q 24 May 21 2021 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 24, 2021
Document Information Line Items
Entity Registrant Name	FOUNTAIN HEALTHY AGING, INC.
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		600,034,500
Amendment Flag	false
Entity Central Index Key	0001309251
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Mar. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Shell Company	false
Entity Ex Transition Period	false
Entity Incorporation, State or Country Code	NV
Entity Interactive Data Current	Yes
Entity File Number	333-123774

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 48,599	$ 61,517
Accounts receivable	3,509,406
Other receivables	104,013	101,432
Inventory	67,629	66,037
Prepayment	140,446	133,646
Amount due from related parties	57,453	142,450
Total current assets	3,927,546	505,082
Non-current assets:
Leasehold improvements and equipment, net	88,434	87,333
Intangible assets	32,964
Operating lease right-of-use assets	305,041	383,203
Total non-current assets	426,439	470,536
Total assets	4,353,985	975,618
Current liabilities:
Accounts payable	896,561	134,842
Income tax payables	798,120	31,774
Other payables and accruals	505,105	336,604
Advance from customers	8,967	27,648
Amount due to related parties	505,062	1,097,152
Current operating lease liabilities	273,700	319,697
Total current liabilities	2,987,515	1,947,717
Non-current liabilities:
Non-current operating lease liabilities	31,341	63,506
Total non-current liabilities	31,341	63,506
Total liabilities	3,018,856	2,011,223
COMMITMENTS AND CONTINGENCIES
EQUITY (DEFICIT)
Common stock	6,000	6,000
Additional paid in capital	(15,146)	(15,146)
Foreign currency translation reserves	(75,620)	(54,091)
Retained earnings (Accumulated deficit)	1,418,895	(973,368)
Total equity (deficit)	1,335,129	(1,035,605)
Total liabilities and equity	4,353,985	975,618
Series A preferred Stock
EQUITY (DEFICIT)
Series A Preferred Stock	$ 1,000	$ 1,000

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
Common Stock, shares authorized	750,000,000	750,000,000
Common Stock, par value (in Dollars per share)	$ 0.00001	$ 0.00001
Common Stock, shares issued	600,034,500	600,034,500
Common Stock, shares outstanding	600,034,500	600,034,500
Series A preferred Stock
Series A Preferred Stock, shares authorized	100,000,000	100,000,000
Series A Preferred Stock, par value (in Dollars per share)	$ 0.00001	$ 0.00001
Series A preferred Stock, shares issued	100,000,000	100,000,000
Series A preferred Stock, shares outstanding	100,000,000	100,000,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Loss and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Statement [Abstract]
Revenue	$ 4,411,258	$ 319,530
Cost of revenue	(935,165)	(48,390)
Gross profit	3,476,093	271,140
Selling and marketing expenses	(36,479)	(22,280)
General and administrative expense	(267,800)	(193,749)
Total operating expenses	(304,279)	(216,029)
Operating profit	3,171,814	53,111
Other (expenses) income, net	(179)	154
Profit before income taxes	3,171,635	53,265
Income taxes	(779,372)	(17,615)
Net profit for the year	2,392,263	35,650
Foreign currency translation differences	(21,529)	5,189
Total comprehensive loss for the year	$ 2,370,734	$ 40,839
Earnings per share:
- Basic (in Dollars per share)	$ 0.004	$ 0
- Diluted (in Dollars per share)	$ 0.004	$ 0
Weighted average number of shares used in computation:
- Basic (in Shares)	600,034,500	600,034,500
- Diluted (in Shares)	600,034,500	600,034,500

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Changes in Equity (Deficit) (Unaudited) - USD ($)	Series A preferred Stock	Common Stock	Additional paid in Capital	Foreign Currency Translation Reserve	(Accumulated Deficit) Retain Earnings Unrestricted	(Accumulated Deficit) Retain Earnings Statutory Reserve	Total
Balance at Dec. 31, 2019	$ 1,000	$ 6,000	$ (15,146)	$ 4,547	$ (352,392)	$ 6,894	$ (349,097)
Profit for the period					37,650		37,650
Other comprehensive income				5,189			5,189
Balance at Mar. 31, 2020	1,000	6,000	(15,146)	9,736	(314,742)	6,894	306,258
Balance at Dec. 31, 2020	1,000	6,000	(15,146)	(54,091)	(980,262)	6,894	(1,035,605)
Profit for the period					2,392,263		2,392,263
Other comprehensive income				(21,529)			(21,529)
Balance at Mar. 31, 2021	$ 1,000	$ 6,000	$ (15,146)	$ (75,620)	$ 1,412,001	$ 6,894	$ 1,335,129

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 profit	$ 2,392,263	$ 37,650
Adjustments for:
Depreciation and amortization	14,266	8,296
Impairment of intangible assets		76,365
Changes in:
Accounts receivable	(3,546,989)
Other receivables and prepayment	(10,359)	(133,766)
Inventory	(1,855)	18,870
Accounts payable, other payables and accruals	941,940	173,427
Income tax payables	774,671	22,183
Advance from customers	(18,777)	(244,836)
Amount due from/to related parties	(508,965)	57,333
Net cash provided by operating activities	36,195	15,522
Cash flows from investing activities:
Additions to leasehold improvements and equipment	(15,424)	(26,715)
Additions to intangible assets	(33,597)
Net cash used in investing activities	(49,021)	(26,715)
Effect of exchange rate changes on cash and cash equivalents	(92)	(222)
Net decrease in cash and cash equivalents	(12,918)	(11,415)
Cash and cash equivalents at the beginning of year	61,517	23,046
Cash and cash equivalents at the end of the year	48,599	11,631
Supplemental disclosure of non-cash investing and financing activities:
Right-of-use assets obtained in exchange for operating lease obligations	$ 301,093	$ 302,725

Description of Business

Description of Business	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
DESCRIPTION OF BUSINESS	1. DESCRIPTION OF BUSINESS Fountain Healthy Aging, Inc. and its subsidiaries (the “Company” or “FHAI”) are engaged in the business of wholesale distribution of “coffee tea” products to retail partners and corporate customers, selling “coffee tea” products to individual consumers and providing pre-opening assistance to retail partners to operate coffee stores

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
BASIS OF PRESENTATION	2. BASIS OF PRESENTATION In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. All significant intercompany transactions and balances are eliminated in consolidation. However, the results of operations included in such financial statements may not necessarily be indicative of annual results. The Company uses the same accounting policies in preparing quarterly and annual financial statements. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the Securities and Exchange Commission (“SEC”) on April 15, 2021 (“2020 Form 10-K”). The Company incurred net profit of $2,413,216 and $37,650 for the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021 and December 31, 2020, the Company had net current assets (liabilities) of $960,763 and $(1,442,635), respectively, and a surplus (deficit) on total equity of $ 1,355,861 and $(1,035,605), respectively. The accompanying unaudited condensed consolidated financial statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Use of estimates The preparation of the consolidated financial statements in conformity with US GAAP 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. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ materially from those estimates. There is no change on the accounting policies from the year ended December 31, 2020. (b) Accounts Receivable Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of accounts receivable. The Company assesses the probability of collection from each customer at the outset of the arrangement based on a number of factors, including the customer’s payment history and its current creditworthiness. If in management’s judgment collection is not probable, the Company does not record revenue until the uncertainty is removed. Management performs ongoing credit evaluations, and the Company maintains an allowance for potential credit losses based upon its loss history and its aging analysis. The allowance for doubtful accounts is the Company’s best estimate of the amount of credit losses in existing accounts receivable. Management reviews the allowance for doubtful accounts each reporting period based on a detailed analysis of trade receivables. In the analysis, management primarily considers the age of the customer’s receivable and also considers the creditworthiness of the customer, the economic conditions of the customer’s industry, general economic conditions and trends, and the business relationship and history with its customers, among other factors. If any of these factors change, the Company may also change its original estimates, which could impact the level of the Company’s future allowance for doubtful accounts. If judgments regarding the collectability of receivables were incorrect, adjustments to the allowance may be required, which would reduce profitability. Accounts receivable are recognized and carried at the original invoice amount less an allowance for any uncollectible amounts. An estimate for doubtful accounts receivable is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. No allowance for doubtful accounts was made for the three months ended March 31, 2021. The following customers had an accounts receivable balance greater than 10% of total accounts receivable at March 31, 2021. Amount % Customer A $ 723,412 21% Customer B 365,189 10% $ 1,088,601 31% (c) Recently issued accounting pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. This standard requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This standard will be effective for the Company on April 1, 2023. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s consolidated financial statements.

Risks and Uncertainties

Risks and Uncertainties	3 Months Ended
	Mar. 31, 2021
Risks and Uncertainties [Abstract]
RISKS AND UNCERTAINTIES	4. RISKS AND UNCERTAINTIES (a) Economic and Political Risks The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation. (b) Foreign Currency Translation The Company’s reporting currency is the U.S. dollar. The functional currency of the parent company is the U.S. dollar and the functional currency of the Company’s operating subsidiaries is the Chinese Renminbi (“RMB”). For the subsidiaries whose functional currencies are the RMB, all assets and liabilities are translated at exchange rates at the balance sheet date and revenue and expenses are translated at the average yearly exchange rates and equity is translated at historical exchange rates. Any translation adjustments resulting are not included in determining net income but are included in foreign exchange adjustments to other comprehensive loss, a component of equity. (c) Concentration of credit risk Financial instruments that potentially expose the Company to significant concentration of credit risk consist primarily of cash and cash equivalents and accounts receivable, other receivables and amounts due from related parties. As of March 31, 2021 and December 31, 2020, substantially all of the Company’s cash and cash equivalents were deposited with financial institutions with high-credit ratings and quality. The Company did not have any customers constituting 10% or more of the net revenue in the three months ended March 31, 2020. The Company had two customers constituting 10% or more of the net revenues in the three months ended March 31, 2021as follows: Amount % Customer A $ 867,850 20% Customer B 435,070 10% $ 1,302,920 30%

Other Receivables

Other Receivables	3 Months Ended
	Mar. 31, 2021
Receivables [Abstract]
OTHER RECEIVABLES	5. OTHER RECEIVABLES As of March 31, 2021 and December 31, 2020, other receivables mainly consist of employees advance to be spent for company purposes and refundable rental deposits. The balances are unsecured, non-interest bearing and repayable on demand.

Inventory

Inventory	3 Months Ended
	Mar. 31, 2021
Inventory Disclosure [Abstract]
INVENTORY	6. INVENTORY March 31, December 31, 2021 2020 Raw materials (1) $ 50,126 $ 51,521 Finished goods 17,503 14,516 $ 67,629 $ 66,037 (1) Raw materials mainly consist of unprocessed coffee tea beans and packaging materials

Prepayment

Prepayment	3 Months Ended
	Mar. 31, 2021
Other Income and Expenses [Abstract]
PREPAYMENT	7. PREPAYMENT As of March 31, 2021 and December 31, 2020, prepayment mainly consists of prepaid administrative expenses that have been utilized subsequently.

Leasehold Improvement and Equip

Leasehold Improvement and Equipment, Net	3 Months Ended
	Mar. 31, 2021
Property, Plant and Equipment [Abstract]
LEASEHOLD IMPROVEMENT AND EQUIPMENT, NET	8. LEASEHOLD IMPROVEMENT AND EQUIPMENT, NET March 31, December 31, 2021 2020 Leasehold improvement $ 63,954 $ 64,191 Equipment 16,591 16,653 Machinery 32,443 32,563 Computer equipment and software 35,541 20,355 Motor vehicle 7,218 7,245 $ 155,747 $ 141,007 Less: accumulated depreciation (67,313 ) (53,673 ) $ 88,434 $ 87,333 Depreciation expense for the three months ended March 31, 2021 and 2020 was $13,986 and $8,296 respectively.

Intangible Assets

Intangible Assets	3 Months Ended
	Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	9. INTANGIBLE ASSETS March 31, December 31, 2021 2020 APP Platform $ 33,241 $ - Less: accumulated amortization (277 ) - $ 32,964 $ - Amortization expense for the three months ended March 31, 2021 and 2020 was $280 and $nil, respectively. The Company recorded an impairment loss on intangible assets of $76,365 to write off the old APP Platform during the year ended December 31, 2020.

Other Payables and Accruals

Other Payables and Accruals	3 Months Ended
	Mar. 31, 2021
Payables and Accruals [Abstract]
OTHER PAYABLES AND ACCRUALS	10. OTHER PAYABLES AND ACCRUALS March 31, December 31, 2021 2020 Accrued payroll and welfare payable $ 210,700 $ 180,878 VAT and other taxes payable 238,318 92,608 Others (1) 56,087 63,118 $ 505,105 $ 336,604 (1) As of March 31, 2021 and December 31, 2020, others mainly consist of the outstanding refundable balance upon termination of the cooperative agreement with one customer and payables for rental expenses.

Advance from Customers

Advance from Customers	3 Months Ended
	Mar. 31, 2021
Revenue from Contract with Customer [Abstract]
ADVANCE FROM CUSTOMERS	11. ADVANCE FROM CUSTOMERS The Company requires retail partners to sign cooperative agreement and to pay in advance for the supply of goods. Such advance is appropriated against future sales orders. These advances are interest free, unsecured and short-term in nature.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2021
Income Tax Disclosure [Abstract]
INCOME TAXES	12. INCOME TAXES Fountain Healthy Aging, Inc. (“FHAI”) was incorporated in the State of Nevada. FHAI is an U.S. entity and is subject to the United States federal income tax. No provision for income taxes in the United States has been made as FHAI had no United States taxable income for the three months ended March 31, 2021 and 2020. Wei Lian Jin Meng Group Limited (“WLJM Cayman”) was incorporated in Cayman Islands . Under the current tax laws of Cayman Islands, WLJM Cayman is not subject to tax on their income or capital gains. In addition, upon of dividends by WLJM Cayman to its shareholders, no Cayman Islands withholding tax will be imposed. Wei Lian Jin Meng (Hong Kong) Co., Ltd. (“WLJM HK”) was incorporated in Hong Kong and is subject to an income tax rate of 16.5% for taxable income generated from operations in Hong Kong. Jin You Wei Meng (Shenzhen) Consulting Co., Ltd. (“JYWM WFOE”), Shenzhen Wei Lian Jin Meng Electronic Commerce Limited (“Shenzhen Wei Lian”), Dongguan Dishi Coffee Limited (“Dongguan Dishi”) and Shenzhen Nainiang Coffee Art Museum Limited (“Shenzhen Nainiang”) were incorporated in the PRC and they are subject to profits tax rate at 25% for income generated and operation in the country. The full realization of the tax benefit associated with the losses carried forward depends predominantly upon the Company’s ability to generate taxable income during the carry forward period. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility is uncertain. The Company did not record deferred tax assets as of March 31, 2021 and December 31, 2020. A reconciliation of tax expense from 25% statutory tax rates for the three months ended March 31, 2021 and 2020 is as follows: For the three months ended March 31, 2021 2020 Profit before tax $ 3,171,635 $ 55,265 Tax benefit calculated at statutory tax rate 25 % 25 % Computed expected tax expense 792,909 13,816 Others (13,537 ) 3,799 $ 779,372 $ 17,615

Leases

Leases	3 Months Ended
	Mar. 31, 2021
Leases [Abstract]
LEASES	13. LEASES The Company has leases for the office, factory and warehouse in the PRC, under operating leases expiring on various dates through September 2023, which is classified as operating leases. There are no residual value guarantees and no restrictions or covenants imposed by the leases. Lease liabilities are measured at present value of the sum of remaining rental payments as of March 31, 2021, with discounted rate of 4.75%. A single lease cost is recognized over the lease term on a generally straight-line basis. All cash payments of operating lease cost are classified within operating activities in the statement of cash flows. Rent expense for the three months ended March 31, 2021 and 2020 were $78,596 and $62,121, respectively. The Company’s future minimum payments under long-term non-cancelable operating leases are as follows: March 31, Within 1 year $ 320,584 After 1 year but within 5 years 35,731 Total lease payments $ 356,315 Less: imputed interest (51,274 ) Total lease obligations 305,041 Less: current obligations (273,700 ) Long-term lease obligations $ 31,341 Other information: For the three months ended March 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating leases $ 78,596 $ 62,121 Right-of-use assets obtained in exchange for operating lease liabilities 301,093 302,725 Remaining lease term for operating leases (years) 2.5 3.5 Weighted average discount rate for operating leases 4.75 % 4.75 %

Related Parties Transactions

Related Parties Transactions	3 Months Ended
	Mar. 31, 2021
Related Party Transactions [Abstract]
RELATED PARTIES TRANSACTIONS	14. RELATED PARTIES TRANSACTIONS The Company had the following balances with related parties: (a) Amount due from related parties March 31, December 31, Relationship 2021 2020 Ye Aiyun Shareholder of the Company 57,453 142,450 Total $ 57,453 $ 142,450 Amount due from related parties represents cash advance to Ye Aiyun, shareholder of the Company. The balance is unsecured, non-interest bearing and repayable on demand. (b) Amount due to related parties March 31, December 31, Relationship 2021 2020 Zhu Hong Shareholder of the Company 450,705 1,059,853 Zhu Jian Yong Shareholder of the Company 1,724 1,731 Shenzhen Weilian Jin Meng Culture Spreading Limited Zhu Hong is the shareholder 23,323 24,800 Shenzhen Nainiang Wine Limited Zhu Hong is the shareholder 29,310 10,768 Total $ 505,062 $ 1,097,152 The balances represent cash advances to related parties, which were offset with the Company’s assets and expenses paid on behalf by the related parties. The balances with a related party are unsecured, non-interest bearing and repayable on demand.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	15. COMMITMENTS AND CONTINGENCIES Commitments consist of a non-cancelable consultancy service agreement entered into with a third-party for the provision of services related to the US listing with a contract sum of $1,200,000. The outstanding committed contract amount is $120,000. The terms of the agreement are for various milestones stages to be completed within two years through 2021. Future commitments within one year as of March 31, 2021 was $120,000. No future commitments more than one year as of March 31, 2021. Except the above commitments and the operating lease commitment as disclosed at Note 13, there are no material commitments.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2021
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	16. SUBSEQUENT EVENTS There is no subsequent events have occurred that would require recognition or disclosure in the financial statements.

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Use of estimates	(a) Use of estimates The preparation of the consolidated financial statements in conformity with US GAAP 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. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ materially from those estimates. There is no change on the accounting policies from the year ended December 31, 2020.
Accounts Receivable	(b) Accounts Receivable Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of accounts receivable. The Company assesses the probability of collection from each customer at the outset of the arrangement based on a number of factors, including the customer’s payment history and its current creditworthiness. If in management’s judgment collection is not probable, the Company does not record revenue until the uncertainty is removed. Management performs ongoing credit evaluations, and the Company maintains an allowance for potential credit losses based upon its loss history and its aging analysis. The allowance for doubtful accounts is the Company’s best estimate of the amount of credit losses in existing accounts receivable. Management reviews the allowance for doubtful accounts each reporting period based on a detailed analysis of trade receivables. In the analysis, management primarily considers the age of the customer’s receivable and also considers the creditworthiness of the customer, the economic conditions of the customer’s industry, general economic conditions and trends, and the business relationship and history with its customers, among other factors. If any of these factors change, the Company may also change its original estimates, which could impact the level of the Company’s future allowance for doubtful accounts. If judgments regarding the collectability of receivables were incorrect, adjustments to the allowance may be required, which would reduce profitability. Accounts receivable are recognized and carried at the original invoice amount less an allowance for any uncollectible amounts. An estimate for doubtful accounts receivable is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. No allowance for doubtful accounts was made for the three months ended March 31, 2021. The following customers had an accounts receivable balance greater than 10% of total accounts receivable at March 31, 2021. Amount % Customer A $ 723,412 21% Customer B 365,189 10% $ 1,088,601 31%
Recently issued accounting pronouncements	(c) Recently issued accounting pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. This standard requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This standard will be effective for the Company on April 1, 2023. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s consolidated financial statements.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Schedule of accounts receivable	Amount % Customer A $ 723,412 21% Customer B 365,189 10% $ 1,088,601 31%

Risks and Uncertainties (Tables

Risks and Uncertainties (Tables)	3 Months Ended
	Mar. 31, 2021
Risks and Uncertainties [Abstract]
Schedule of concentration risk	Amount % Customer A $ 867,850 20% Customer B 435,070 10% $ 1,302,920 30%

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Mar. 31, 2021
Inventory Disclosure [Abstract]
Schedule of Inventory	March 31, December 31, 2021 2020 Raw materials (1) $ 50,126 $ 51,521 Finished goods 17,503 14,516 $ 67,629 $ 66,037 (1) Raw materials mainly consist of unprocessed coffee tea beans and packaging materials

Leasehold Improvement and Equ_2

Leasehold Improvement and Equipment, Net (Tables)	3 Months Ended
	Mar. 31, 2021
Property, Plant and Equipment [Abstract]
Schedule of leasehold improvement and equipment, net	March 31, December 31, 2021 2020 Leasehold improvement $ 63,954 $ 64,191 Equipment 16,591 16,653 Machinery 32,443 32,563 Computer equipment and software 35,541 20,355 Motor vehicle 7,218 7,245 $ 155,747 $ 141,007 Less: accumulated depreciation (67,313 ) (53,673 ) $ 88,434 $ 87,333

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible assets	March 31, December 31, 2021 2020 APP Platform $ 33,241 $ - Less: accumulated amortization (277 ) - $ 32,964 $ -

Other Payables and Accruals (Ta

Other Payables and Accruals (Tables)	3 Months Ended
	Mar. 31, 2021
Payables and Accruals [Abstract]
Schedule of other payables and accruals	March 31, December 31, 2021 2020 Accrued payroll and welfare payable $ 210,700 $ 180,878 VAT and other taxes payable 238,318 92,608 Others (1) 56,087 63,118 $ 505,105 $ 336,604 (1) As of March 31, 2021 and December 31, 2020, others mainly consist of the outstanding refundable balance upon termination of the cooperative agreement with one customer and payables for rental expenses.

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Schedule of reconciliation of effective tax rates	For the three months ended March 31, 2021 2020 Profit before tax $ 3,171,635 $ 55,265 Tax benefit calculated at statutory tax rate 25 % 25 % Computed expected tax expense 792,909 13,816 Others (13,537 ) 3,799 $ 779,372 $ 17,615

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2021
ASU 2016-02 Transition [Abstract]
Schedule of future minimum payments under long-term non-cancelable operating leases	March 31, Within 1 year $ 320,584 After 1 year but within 5 years 35,731 Total lease payments $ 356,315 Less: imputed interest (51,274 ) Total lease obligations 305,041 Less: current obligations (273,700 ) Long-term lease obligations $ 31,341
Schedule of other information	For the three months ended March 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating leases $ 78,596 $ 62,121 Right-of-use assets obtained in exchange for operating lease liabilities 301,093 302,725 Remaining lease term for operating leases (years) 2.5 3.5 Weighted average discount rate for operating leases 4.75 % 4.75 %

Related Parties Transactions (T

Related Parties Transactions (Tables)	3 Months Ended
	Mar. 31, 2021
Related Party Transactions [Abstract]
Schedule of amount due from related parties	March 31, December 31, Relationship 2021 2020 Ye Aiyun Shareholder of the Company 57,453 142,450 Total $ 57,453 $ 142,450
Schedule of amount due to related parties	March 31, December 31, Relationship 2021 2020 Zhu Hong Shareholder of the Company 450,705 1,059,853 Zhu Jian Yong Shareholder of the Company 1,724 1,731 Shenzhen Weilian Jin Meng Culture Spreading Limited Zhu Hong is the shareholder 23,323 24,800 Shenzhen Nainiang Wine Limited Zhu Hong is the shareholder 29,310 10,768 Total $ 505,062 $ 1,097,152

Basis of Presentation (Details)

Basis of Presentation (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Accounting Policies [Abstract]
Incurred net profit	$ 2,413,216	$ 37,650
Net current assets (liabilities)	960,763		$ 1,442,635
Surplus deficit on total equity	$ 1,355,861		$ (1,035,605)

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) - Schedule of accounts receivable	3 Months Ended
	Mar. 31, 2021USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable amount	$ 1,088,601
Accounts receivable percentage	31.00%
Customer A [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable amount	$ 723,412
Accounts receivable percentage	21.00%
Customer B [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable amount	$ 365,189
Accounts receivable percentage	10.00%

Risks and Uncertainties (Detail

Risks and Uncertainties (Details)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Net revenue [Member]
Risks and Uncertainties (Details) [Line Items]
Concentration risk percentage	10.00%	10.00%

Risks and Uncertainties (Deta_2

Risks and Uncertainties (Details) - Schedule of concentration risk	3 Months Ended
	Mar. 31, 2021USD ($)
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Concentration of credit risk amount	$ 1,302,920
Concentration of credit risk percentage	30.00%
Customer A [Member]
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Concentration of credit risk amount	$ 867,850
Concentration of credit risk percentage	20.00%
Customer B [Member]
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Concentration of credit risk amount	$ 435,070
Concentration of credit risk percentage	10.00%

Inventory (Details) - Schedule

Inventory (Details) - Schedule of Inventory - USD ($)		Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020
Schedule of Inventory [Abstract]
Raw materials	[1]	$ 50,126		$ 51,521
Finished goods		17,503		14,516
Inventory, total		$ 67,629	$ 66,037	$ 66,037
[1]	Raw materials mainly consist of unprocessed coffee tea beans and packaging materials

Leasehold Improvement and Equ_3

Leasehold Improvement and Equipment, Net (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 13,986	$ 8,296

Leasehold Improvement and Equ_4

Leasehold Improvement and Equipment, Net (Details) - Schedule of leasehold improvement and equipment, net - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Leasehold improvement and equipment, gross	$ 155,747	$ 141,007
Less: accumulated depreciation	(67,313)	(53,673)
Leasehold improvement and equipment, net	88,434	87,333
Leasehold improvement [Member]
Property, Plant and Equipment [Line Items]
Leasehold improvement and equipment, gross	63,954	64,191
Equipment [Member]
Property, Plant and Equipment [Line Items]
Leasehold improvement and equipment, gross	16,591	16,653
Machinery [Member]
Property, Plant and Equipment [Line Items]
Leasehold improvement and equipment, gross	32,443	32,563
Computer equipment and software [Member]
Property, Plant and Equipment [Line Items]
Leasehold improvement and equipment, gross	35,541	20,355
Motor vehicle [Member]
Property, Plant and Equipment [Line Items]
Leasehold improvement and equipment, gross	$ 7,218	$ 7,245

Intangible Assets (Details)

Intangible Assets (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2020	Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense			$ 280
Amortization expense
Impairment loss on intangible assets		$ 76,365

Intangible Assets (Details) - S

Intangible Assets (Details) - Schedule of intangible assets	Mar. 31, 2021USD ($)
Schedule of intangible assets [Abstract]
APP Platform	$ 33,241
Less: accumulated amortization	(277)
Intangible assets, net	$ 32,964

Other Payables and Accruals (De

Other Payables and Accruals (Details)	Mar. 31, 2021	Dec. 31, 2020
Payables and Accruals [Abstract]
Number of customers	1	1

Other Payables and Accruals (_2

Other Payables and Accruals (Details) - Schedule of other payables and accruals - USD ($)		Mar. 31, 2021	Dec. 31, 2020
Schedule of other payables and accruals [Abstract]
Accrued payroll and welfare payable		$ 210,700	$ 180,878
VAT and other taxes payable		238,318	92,608
Others	[1]	56,087	63,118
Other payables and accruals		$ 505,105	$ 336,604
[1]	As of March 31, 2021 and December 31, 2020, others mainly consist of the outstanding refundable balance upon termination of the cooperative agreement with one customer and payables for rental expenses.

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Taxes (Details) [Line Items]
Statutory tax rates	25.00%	25.00%
Hong Kong [Member]
Income Taxes (Details) [Line Items]
Income tax rate	16.50%
PRC [Member]
Income Taxes (Details) [Line Items]
Income tax rate	25.00%

Income Taxes (Details) - Schedu

Income Taxes (Details) - Schedule of reconciliation of effective tax rates - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Schedule of reconciliation of effective tax rates [Abstract]
Profit before tax	$ 3,171,635	$ 55,265
Tax benefit calculated at statutory tax rate	25.00%	25.00%
Computed expected tax expense	$ 792,909	$ 13,816
Others	(13,537)	3,799
Income tax expense (benefits)	$ 779,372	$ 17,615

Leases (Details)

Leases (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
ASU 2016-02 Transition [Abstract]
Debt Instrument, Interest Rate, Effective Percentage	4.75%
Rent expense	$ 78,596	$ 62,121

Leases (Details) - Schedule of

Leases (Details) - Schedule of future minimum payments under long-term non-cancelable operating leases	Mar. 31, 2021USD ($)
Schedule of future minimum payments under long-term non-cancelable operating leases [Abstract]
Within 1 year	$ 320,584
After 1 year but within 5 years	35,731
Total lease payments	356,315
Less: imputed interest	(51,274)
Total lease obligations	305,041
Less: current obligations	(273,700)
Long-term lease obligations	$ 31,341

Leases (Details) - Schedule o_2

Leases (Details) - Schedule of other information - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow from operating leases	$ 78,596	$ 62,121
Right-of-use assets obtained in exchange for operating lease liabilities	$ 301,093	$ 302,725
Remaining lease term for operating leases (years)	2 years 6 months	3 years 6 months
Weighted average discount rate for operating leases	4.75%	4.75%

Related Parties Transactions (D

Related Parties Transactions (Details) - Schedule of amount due from related parties - USD ($)	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Related Parties Transactions (Details) - Schedule of amount due from related parties [Line Items]
Total	$ 57,453	$ 142,450
Ye Aiyun [Member]
Related Parties Transactions (Details) - Schedule of amount due from related parties [Line Items]
Relationship, description	Shareholder of the Company
Total	$ 57,453	$ 142,450

Related Parties Transactions _2

Related Parties Transactions (Details) - Schedule of amount due to related parties - USD ($)	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Related Parties Transactions (Details) - Schedule of amount due to related parties [Line Items]
Total	$ 505,062	$ 1,097,152
Zhu Hong [Member]
Related Parties Transactions (Details) - Schedule of amount due to related parties [Line Items]
Relationship, decription	Shareholder of the Company
Total	$ 450,705	1,059,853
Zhu Jian Yong [Member]
Related Parties Transactions (Details) - Schedule of amount due to related parties [Line Items]
Relationship, decription	Shareholder of the Company
Total	$ 1,724	1,731
Shenzhen Weilian Jin Meng Culture Spreading Limited [Member]
Related Parties Transactions (Details) - Schedule of amount due to related parties [Line Items]
Relationship, decription	Zhu Hong is the shareholder
Total	$ 23,323	24,800
Shenzhen Nainiang Wine Limited [Member]
Related Parties Transactions (Details) - Schedule of amount due to related parties [Line Items]
Relationship, decription	Zhu Hong is the shareholder
Total	$ 29,310	$ 10,768

Commitments and Contingencies (

Commitments and Contingencies (Details)	3 Months Ended
	Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and contingencies, description	the US listing with a contract sum of $1,200,000. The outstanding committed contract amount is $120,000. The terms of the agreement are for various milestones stages to be completed within two years through 2021. Future commitments within one year as of March 31, 2021 was $120,000. No future commitments more than one year as of March 31, 2021.