Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Oct. 31, 2018 | Feb. 13, 2019 | Apr. 28, 2018 | |
Document And Entity Information | |||
Entity Registrant Name | Advanced Biomedical Technologies Inc. | ||
Entity Central Index Key | 1,385,799 | ||
Document Type | 10-K | ||
Document Period End Date | Oct. 31, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --10-31 | ||
Entity a Well-known Seasoned Issuer | No | ||
Entity a Voluntary Filer | No | ||
Entity's Reporting Status Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business Flag | true | ||
Entity Emerging Growth Company | false | ||
Entity Ex Transition Period | false | ||
Entity Public Float | $ 11,983,373 | ||
Entity Common Stock, Shares Outstanding | 69,624,850 | ||
Entity Shell Company | false | ||
Trading Symbol | ABMT | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,018 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Oct. 31, 2018 | Oct. 31, 2017 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 6,860 | $ 7,463 |
Other receivables and prepaid expenses | 32,649 | 17,469 |
Total Current Assets | 39,509 | 24,932 |
Property and equipment, cost | 521,120 | 483,482 |
Less: Accumulated depreciation | (418,225) | (422,967) |
PROPERTY AND EQUIPMENT, NET | 102,895 | 60,515 |
LONG-TERM PREPAID EXPENSES, NET | ||
DEPOSIT FOR PURCHASE OF PROPERTY AND EQUIPMENT | ||
TOTAL ASSETS | 142,404 | 85,447 |
CURRENT LIABILITIES | ||
Other payables and accrued expenses | 443,163 | 409,079 |
Due to directors | 273,874 | 321,420 |
Due to a stockholder | 718,808 | 582,795 |
Due to related parties | 4,325,571 | 3,767,180 |
Total Current Liabilities | 5,761,416 | 5,080,474 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' DEFICIT | ||
Common stock, $0.00001 par value, 100,000,000 shares authorized, 69,624,850 issued and outstanding as of October 31, 2018 and October 31, 2017 | 696 | 694 |
Additional paid-in capital | 2,740,183 | 2,673,620 |
Accumulated deficit | (8,632,618) | (7,679,298) |
Accumulated other comprehensive income/(loss) | 272,727 | 9,957 |
Total Deficit | (5,619,012) | (4,995,027) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 142,404 | $ 85,447 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Oct. 31, 2018 | Oct. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 69,624,850 | 69,624,850 |
Common stock, shares outstanding | 69,624,850 | 69,624,850 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 12 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
OPERATING EXPENSES | ||
General and administrative expenses | $ 561,210 | $ 341,956 |
Depreciation | 16,295 | 13,604 |
Research and development | 56,512 | 48,053 |
Total Operating Expenses | 634,017 | 403,613 |
LOSS FROM OPERATIONS | (634,017) | (403,613) |
OTHER (EXPENSES) INCOME | ||
Interest income | 36 | 36 |
Interest paid to a stockholder and related parties | (286,756) | (242,144) |
Interest paid to a third party | ||
Imputed interest | (13,815) | (15,623) |
Other, net | (18,768) | (30,256) |
Total Other (Expenses) Income, net | (319,303) | (287,987) |
LOSS BEFORE TAXES | (953,320) | (691,600) |
Income tax expense | ||
NET LOSS | (953,320) | (691,600) |
Net loss attributable to non-controlling interests | ||
NET LOSS ATTRIBUTABLE TO ABMT COMMON STOCKHOLDERS | (953,320) | (691,600) |
OTHER COMPREHENSIVE INCOME | ||
Foreign currency translation income | 262,770 | (94,255) |
Total other comprehensive gain/(loss) | 262,770 | (94,255) |
COMPREHENSIVE GAIN/(LOSS) ATTRIBUTABLE TO ABMT COMMON STOCKHOLDERS | $ (690,550) | $ (785,855) |
Net loss per share-basic and diluted - basic and diluted | $ (0.01) | $ (0.01) |
Weighted average number of shares outstanding during the year - basic and diluted | 69,381,015 | 68,277,590 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Stockholders' Deficit - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
Balance at Oct. 31, 2015 | $ 569 | $ 1,949,132 | $ (6,262,961) | $ (148,227) | $ (4,461,487) |
Balance, shares at Oct. 31, 2015 | 56,874,850 | ||||
Stock issued for debt conversion at 0.05 per share | $ 100 | 499,900 | 500,000 | ||
Stock issued for debt conversion at 0.05 per share, shares | 10,000,000 | ||||
Stock issued for services | $ 2 | 52,498 | 52,500 | ||
Stock issued for services, shares | 250,000 | ||||
Imputed interest on advances from directors | 18,990 | 18,990 | |||
Net loss for the period | (724,737) | (724,737) | |||
Foreign currency translation loss | 252,439 | 252,439 | |||
Balance at Oct. 31, 2016 | $ 671 | 2,520,520 | (6,987,698) | 104,212 | (4,362,295) |
Balance, shares at Oct. 31, 2016 | 67,124,850 | ||||
Stock issued for debt conversion at 0.05 per share | $ 20 | 99,980 | 100,000 | ||
Stock issued for debt conversion at 0.05 per share, shares | 2,000,000 | ||||
Stock issued for services | $ 3 | 37,497 | 37,500 | ||
Stock issued for services, shares | 250,000 | ||||
Imputed interest on advances from directors | 15,623 | 15,623 | |||
Net loss for the period | (691,600) | (691,600) | |||
Foreign currency translation loss | (94,255) | (94,255) | |||
Balance at Oct. 31, 2017 | $ 694 | 2,673,620 | (7,679,298) | 9,957 | (4,995,027) |
Balance, shares at Oct. 31, 2017 | 69,374,850 | ||||
Stock issued for services | $ 2 | 52,748 | 52,750 | ||
Stock issued for services, shares | 250,000 | ||||
Imputed interest on advances from directors | 13,815 | 13,815 | |||
Net loss for the period | (953,320) | (953,320) | |||
Foreign currency translation loss | 262,770 | 262,770 | |||
Balance at Oct. 31, 2018 | $ 696 | $ 2,740,183 | $ (8,632,618) | $ 272,727 | $ (5,619,012) |
Balance, shares at Oct. 31, 2018 | 69,624,850 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Deficit (Parenthetical) - $ / shares | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | Nov. 13, 2015 |
Statement of Stockholders' Equity [Abstract] | ||||
Debt conversion price, per share | $ 0.05 | $ 0.05 | $ 0.05 | |
Shares issued for service, per share | $ 0.211 | $ 0.15 | $ 1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net loss attributable to ABMT common stockholders | $ (953,320) | $ (691,600) | $ (724,737) |
Adjustments to reconcile net loss to cash used in operating activities: | |||
Depreciation | 16,295 | 13,604 | |
Loss on disposal of property and equipment | 37,500 | ||
Stock issued for services | 52,750 | ||
Imputed interest | 13,815 | 15,623 | |
Decrease (increase) in: | |||
Other receivables and prepaid expenses | (16,861) | 3,291 | |
Increase in: | |||
Other payables and accrued expenses | 54,900 | 63,870 | |
Net cash used in operating activities | (832,421) | (557,712) | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of property and equipment | (64,405) | (453) | |
(Increase) decrease in deposit for purchase of property and equipment | 1,213 | ||
Net cash used in investing activities | (64,405) | 760 | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Due to a stockholder | 136,441 | 89,444 | |
Due to directors | (34,932) | (48,351) | |
Due to related parties | 794,771 | 516,658 | |
Net cash provided by financing activities | 896,280 | 557,751 | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (57) | 105 | |
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS | (603) | 904 | |
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF YEAR | 7,463 | 6,559 | |
CASH AND CASH EQUIVALENTS AT THE END OF YEAR | 6,860 | 7,463 | $ 6,559 |
Supplemental of cash flow information | |||
Interest income | 36 | 36 | |
Income tax | |||
Other non cash items | |||
Interest expenses | $ 286,756 | $ 242,144 |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Organization | 12 Months Ended |
Oct. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Organization | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION (A) Organization Advanced Biomedical Technologies, Inc. (fka “Geostar Mineral Corporation” or “Geostar”) (“ABMT”) was incorporated in Nevada on September 12, 2006. Shenzhen Changhua Biomedical Engineering Co., Ltd. (“Shenzhen Changhua”) was incorporated in the People’s Republic of China (“PRC”) on September 25, 2002 as a limited liability company with a registered capital of $724,017. Shenzhen Changhua is owned by two stockholders in the proportion of 70% and 30% respectively. Shenzhen Changhua has been involved in the development of polymer screws, rods and binding wires for fixation on human fractured bones. The Company is currently involved in researching, manufacturing and conducting clinical trials on its products and intends to raise additional capital to produce and market its products commercially. The Company holds one Class III permit and one Class II permit from the China Food and Drug Administration (“CFDA”), formally the State Food and Drug Administration (“SFDA”) of the PRC. The Company holds two patents issued by the State Intellectual Property Office of the P.R.C. (“SIPO”). The Company has no revenue since its inception and, in accordance with Accounting Standards Codification (“ASC”) Topic 915, “Development Stage Entities”, is considered a Development Stage Company. Masterise Holdings Limited (“Masterise”) was incorporated in the British Virgin Islands on 31 May, 2007 as an investment holding company. Masterise is owned as to 63% by the spouse of Shenzhen Changhua’s 70% majority stockholder and 37% by a third party corporation. On January 29, 2008, Masterise entered into a Share Purchase Agreement (“the Agreement”) with a stockholder of Shenzhen Changhua whereupon Masterise acquired 70% of Shenzhen Changhua for US$64,100 in cash. The acquisition was completed on February 25, 2008. As both Masterise and Shenzhen Changhua are under common control and management, the acquisition was accounted for as a reorganization of entities under common control. Accordingly, the operations of Shenzhen Changhua were included in the consolidated financial statements as if the transactions had occurred retroactively. On December 31, 2008, ABMT consummated a Share Exchange Agreement (“the Exchange Agreement”) with the stockholders of Masterise pursuant to which Geostar issued 50,000 shares of Common Stock to the stockholders of Masterise for 100% equity interest in Masterise. Concurrently, on December 31, 2008, a major stockholder of ABMT also consummated an Affiliate Stock Purchase Agreement (the “Affiliate Agreement”) with thirteen individuals including all the stockholders of Masterise, pursuant to which the major stockholder sold a total of 5,001,000 shares of ABMT’s common stock for a total aggregate consideration of $5,000, including 4,438,250 shares to the stockholders of Masterise. On consummation of the Exchange Agreement and the Affiliate Agreement, the 70% majority stockholder of Masterise became an 80.7% stockholder of ABMT. On March 13, 2009, the name of the Company was changed from Geostar Mineral Corporation to Advanced Biomedical Technologies, Inc. The merger of ABMT and Masterise was treated for accounting purposes as a capital transaction and recapitalization by Masterise (“the accounting acquirer”) and a re-organization by ABMT (“the accounting acquiree”). The financial statements have been prepared as if the re-organization had occurred retroactively. Accordingly, these financial statements include the following: (1) The balance sheet consisting of the net assets of the acquirer at historical cost and the net assets of the acquiree at historical cost. (2) The statement of operations including the operations of the acquirer for the periods presented and the operations of the acquiree from the date of the transaction. ABMT, Masterise and Shenzhen Changhua are hereinafter referred to as (“the Company”). (B) Principles of consolidation The accompanying consolidated financial statements include the financial statements of ABMT and its wholly owned subsidiaries, Masterise and its 70% owned subsidiary, Shenzhen Changhua. The noncontrolling interests represent the noncontrolling stockholders’ 30% proportionate share of the results of Shenzhen Changhua. All significant inter-company balances and transactions have been eliminated in consolidation. (C) Use of estimates The preparation of the financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. (D) Cash and cash equivalents For purpose of the statements of cash flows, cash and cash equivalents include cash on hand and demand deposits with a bank with a maturity of less than three months. As of October 31, 2018 and 2017, all the cash and cash equivalents were denominated in United States Dollars (“US$”), Hong Kong Dollars (“HK$”) and Renminbi (“RMB”) and were placed with banks in the United States of America, Hong Kong and PRC. Balances at financial institutions or state-owned banks within the PRC are not freely convertible into foreign currencies and the remittance of these funds out of the PRC is subject to exchange control restrictions imposed by the PRC government. (E) Property and equipment Property and equipment are stated at cost, less accumulated depreciation. Expenditures for additions, major renewals and betterments are capitalized and expenditures for maintenance and repairs are charged to expense as incurred. Depreciation is provided on a straight-line basis, less estimated residual value over the assets estimated useful lives. The estimated useful lives of the assets are 5 years. (F) Long-lived assets The Company accounts for long-lived assets under the FASB Codification Topic 360 (ASC 360) “Accounting for Impairment or Disposal of Long-Lived Assets”. In accordance with ASC Topic 360, long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For purposes of evaluating the recoverability of long-lived assets, when undiscounted future cash flows will not be sufficient to recover an asset’s carrying amount, the asset is written down to its fair value. The long-lived assets of the Company, which are subject to evaluation, consist primarily of property and equipment. For the years ended October 31, 2018 and 2017, the Company has not recognized any allowances for impairment. (G) Fair value of financial instruments FASB Codification Topic 825 (ASC Topic 825), “Disclosure About Fair Value of Financial Instruments,” requires certain disclosures regarding the fair value of financial instruments. The carrying amounts of other receivables and prepaid expenses other payables and accrued liabilities and due to directors, a stockholder and related parties approximate their fair values because of the short-term nature of the instruments. The management of the Company is of the opinion that the Company is not exposed to significant interest or credit risks arising from these financial statements. (H) Income taxes The Company accounts for income taxes under the FASB Codification Topic 740-10-25 (“ASC 740-10-25”). Under ASC 740-10-25, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740-10-25, the effect on deferred tax assets and liabilities of a change in tax rates is recognized as income in the period included the enactment date. We assess our income tax positions and record tax benefits for all years subject to examination based upon our evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where there is greater than 50% likelihood that a tax benefit will be sustained, we have recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is a 50% or less likelihood that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. (I) Research and development Research and development costs related to both present and future products are expensed as incurred. Total expenditure on research and development charged to general and administrative expenses for the years ended October 31, 2018 and 2017 were $56,512 and $48,053 respectively. (J) Foreign currency translation The reporting currency of the Company is the US dollar. ABMT, Masterise and Shenzhen Changhua maintain their accounting records in their functional currencies of US$, HK$ and RMB respectively. Foreign currency transactions during the year are translated to the functional currency at the approximate rates of exchange on the dates of transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the approximate rates of exchange at that date. Non-monetary assets and liabilities are translated at the rates of exchange prevailing at the time the asset or liability was acquired. Exchange gains or losses are recorded in the statement of operations. The financial statements of Masterise and Shenzhen Changhua (whose functional currency is HK$ and RMB respectively) are translated into US$ using the closing rate method. The balance sheet items are translated into US$ using the exchange rates at the respective balance sheet dates. The capital and various reserves are translated at historical exchange rates prevailing at the time of the transactions while income and expenses items are translated at the average exchange rate for the year. All exchange differences are recorded within equity. The exchange rates used to translate amounts in HK$ and RMB into US$ for the purposes of preparing the financial statements were as follows: October 31, 2018 October 31, 2017 Balance sheet items, except for share capital, additional paid-in capital and accumulated deficits, as of year end US$1=HK$7.8393=RMB6.9737 US$1= HK$7.8015=RMB6.6328 Amounts included in the statements of operations and cash flows for the year US$1=HK$7.8351=RMB6.5629 US$1= HK$7.7842=RMB6.8013 The translation gain and loss recorded for the years ended October 31, 2018 and 2017 were $262,770 and $94,255 respectively. No presentation is made that RMB amounts have been, or would be, converted into US$ at the above rates. Although the Chinese government regulations now allow convertibility of RMB for current account transactions, significant restrictions still remain. Hence, such translations should not be construed as representations that RMB could be converted into US$ at that rate or any other rate. The value of RMB against US$ and other currencies may fluctuate and is affected by, among other things, changes in China’s political and economic conditions. Any significant revaluation of RMB may materially affect the Company’s financial condition in terms of US$ reporting. (K) Other comprehensive loss The foreign currency translation gain or loss resulting from translation of the financial statements expressed in RMB and HK$ to US$ is reported as other comprehensive gain or loss in the statements of operations and stockholders’ deficit. Other comprehensive gain and loss for the years ended October 31, 2018 and 2017 were $262,770 and $94,255 respectively. (L) Loss per share Basic loss per share are computed by dividing income available to stockholders by the weighted average number of shares outstanding during the year. Diluted loss per share is computed similar to basic loss per share except that the denominator is increased to include the number of additional shares that would have been outstanding if the potential shares had been issued and if the additional shares were diluted. There are no potentially dilutive securities as at October 31, 2018 and October 31, 2017. (M) Segments The Company operates in only one segment, thereafter segment disclosure is not presented. (N) Recent Accounting Pronouncements Business Combination: Clarifying the Definition of a Business In January 2017, the FASB issued ASU No. 2017-1 “Topic 805, Business Combinations: Clarifying the Definition of a Business”. The amendments in this update provide a screen to determine when a set is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. The amendments in this update affect all reporting entities that must determine whether they have acquired or sold a business. Public business entities should apply the amendments in this update to annual periods beginning after December 15, 2017, including interim periods within those periods. All other entities should apply the amendments to annual periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. The Company does not expect the adoption of ASU 2017-1 to have a material impact on its consolidated financial statements. Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU No. 2017-4 “Topic 350: Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment.” The amendments in this update eliminate step two of the goodwill impairment test and specifies that goodwill impairment should be measured by comparing the fair value of a reporting unit with its carrying amount. Additionally, the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets should be disclosed. The amendments in this update are effective for annual or interim goodwill impairment tests performed in fiscal years beginning after December 15, 2019; early adoption is permitted. The Company does not expect the adoption of ASU 2017-4 to have a material impact on its consolidated financial statements. Share-based Compensation In May 2017, the FASB issued guidance on changes to terms and conditions of share-based payment awards. The amendment provides guidance about which changes to terms or conditions of a share-based payment award require an entity to apply modification accounting. The guidance is effective for the fiscal year beginning on January 1, 2018, including interim periods within that year. In June 2018, the scope of Topic 718 has been expanded to include sharebased payment transactions for acquiring goods and services from nonemployees. An entity should apply the requirements of Topic 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost (that is, the period of time over which share-based payment awards vest and the pattern of cost recognition over that period). The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2018 and after December 15, 2019 for all other entities. Early adoption is permitted, but no earlier than an entity’s adoption date of Topic 606. The Company does not anticipate that adoption of these guidances will have a material impact on its consolidated financial statements. Revenue Recognition In May 2014, the FASB issued guidance on revenue from contracts with customers that will supersede most current revenue recognition guidance, including industry-specific guidance. Under the new standard, a good or service is transferred to the customer when (or as) the customer obtains control of the good or service, which differs from the risk and rewards approach under current guidance. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of the time value of money in the transaction price and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. In March, April and May 2016, the FASB issued three additional updates regarding identifying performance obligations and licensing, certain principal versus agent considerations and various narrow scope improvements based on practical questions raised by users. In September 2017, the FASB issued additional amendments providing clarification and implementation guidance. The guidance may be adopted through either retrospective application to all periods presented in the financial statements (full retrospective approach) or through a cumulative effect adjustment to retained earnings at the effective date (modified retrospective approach). The guidance is effective for the fiscal periods beginning on January 1, 2018. Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which modifies lease accounting for lessees to increase transparency and comparability by recording lease assets and liabilities for operating leases and disclosing key information about leasing arrangements. The new standard, as amended by ASU 2018-01 and ASU 2018-11, is effective for annual periods beginning after December 15, 2018 on a modified retrospective basis. The Company will adopt ASU 2016-02 in its first quarter of the year ending October 31 2020. The Company expects its leases designated as operating leases in Note 6, “Commitments and Contingencies,” will be reported on the consolidated balance sheets upon adoption. However, the ultimate impact of adopting ASU 2016-02 will depend on the lease terms as of the adoption date. The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoptions of any such pronouncements may be expected to cause a material impact on the financial condition or the results of operations. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Oct. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 2. PROPERTY AND EQUIPMENT The following is a summary of property and equipment at October 31, 2018 and 2017: October 31, 2018 2017 Plant and machinery $ 296,517 $ 280,871 Motor vehicles 39,534 41,566 Office equipment 34,572 34,902 Computer software 5,017 5,017 Office improvements 145,480 121,126 521,120 483,482 Less: accumulated depreciation 418,225 422,967 Property and equipment, net $ 102,895 $ 60,515 Depreciation expense for the year ended October 31, 2018 and 2017 was $16,295 and $13,604 respectively. |
Other Payables and Accrued Expe
Other Payables and Accrued Expenses | 12 Months Ended |
Oct. 31, 2018 | |
Payables and Accruals [Abstract] | |
Other Payables and Accrued Expenses | 3. OTHER PAYABLES AND ACCRUED EXPENSES Other payables and accrued expenses at October 31, 2018 and 2017 consisted of the followings: October 31, 2018 2017 Other payables $ 215,095 $ 223,437 Accrued expenses 228,068 185,642 $ 443,163 $ 409,079 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Oct. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 4. RELATED PARTY TRANSACTIONS As of October 31, 2018 and 2017, the Company owed $718,808 and $582,795 respectively to Titan Technology Development Limited, a stockholder. As of October 31, 2018 and 2017, advances from related parties were as follows: October 31, 2018 2017 Yu Chi Fung $ 1,715,840 $ 1,710,759 Que Feng 36,040 35,782 Chen Tie Jun 2,344,849 1,800,541 Shenzhen Hygeian Medical Device Co., Ltd. 228,842 220,098 Amount due to related parties $ 4,325,571 $ 3,767,180 Advances from a stockholder and related parties are unsecured, repayable on demand and bearing interest at 7% per annum. Interest expenses on advances from a stockholder and the related parties accrued for the years ended October 31, 2018 and 2017 were as follows: October 31, 2018 2017 Titan Technology Development Limited, a stockholder $ 42,884 $ 37,379 Related parties: Que Feng 2,133 2,059 Yu Chi Fang 98,431 93,951 Chen Tie Jun 128,680 97,045 Shenzhen Hygeian Medical Device Co., Ltd. 14,628 11,710 Interest expenses to a stockholder and related parties $ 286,756 $ 242,144 As of October 31, 2018 and 2017, advances from directors were as follows: October 31, 2018 2017 Wang Wei $ 252,377 $ 298,818 Gui Kai 567 - Yu Chi Ming 20,930 22,602 Amount due to directors $ 273,874 $ 321,420 Advances from directors were unsecured, repayable on demand and interest free. Imputed interests on the amounts owed to Wang Wei, a director, were $13,815 and $15,623 for the years ended October 31, 2018, and 2017 respectively. |
Stockholders' Deficiency
Stockholders' Deficiency | 12 Months Ended |
Oct. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Deficiency | 5. STOCKHOLDERS’ DEFICIENCY Common stock On December 8, 2011, the Company issued 100,000 shares of restricted common stock at $0.2 to Dr. John Lynch, the Company’s chief officer of dental technologies, for services for a term of twelve months. The shares were valued at the closing price on the date of grant yielding an aggregate fair value of $20,000, fully recognised in prior years as consultancy fees included in general and administrative expenses. On 28 October 2013, the Company issued 150,000 shares of restricted common stock as directors’ services compensation for past services to each of Mr. Chi Ming Yu and Kai Gui, directors of the Company. The shares were valued at the closing price of $0.71 per share on the date of grant, yielding an aggregate fair value of $213,000. On 13 November 2015, $106,506 of the interest payable to a Company’s stockholder and $393,494 of the interest payable to two related parties, totaled $500,000, were converted into 10,000,000 shares of common stock at a conversion price of $0.05 per share and which were issued to the said stockholder. On 31 March 2016, the Company issued 100,000 and 150,000 shares of restricted common stock as directors’ compensation for past services to Mr. Chi Ming Yu and Mr. Kai Gui, directors of the Company respectively. The shares were valued at the closing price of $0.21 per share on the date of grant, yielding an aggregate fair value of $52,500. On 28 April 2017, the Company issued 100,000 and 150,000 shares of restricted common stock as directors’ compensation for past services to Mr. Chi Ming Yu and Mr. Kai Gui, directors of the Company respectively. The shares were valued at the closing price of $0.15 per share on the date of grant, yielding an aggregate fair value of $37,500. On 23 October 2018, the Company issued 100,000 and 150,000 shares of restricted common stock as directors’ compensation for past services to Mr. Chi Ming Yu and Mr. Kai Gui, directors of the Company respectively. The shares were valued at the closing price of $0.211 per share on the date of grant, yielding an aggregate fair value of $52,750. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Oct. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. COMMITMENTS AND CONTINGENCIES (A) Employee benefits The full time employees of the Company are entitled to employee benefits including medical care, welfare subsidies, unemployment insurance and pension benefits through a Chinese government mandated multi-employer defined contribution plan. The Company is required to accrue for these benefits based on certain percentages of the employees’ salaries and make contributions to the plans out of the amounts accrued for medical and pension benefits. The total provisions and contributions made for such employee benefits was $58,469 and $37,440 for the years ended October 31, 2018 and 2017 respectively. The Chinese government is responsible for the medical benefits and the pension liability to be paid to these employees. (B) Lease commitments As of October 31, 2018, the Company had outstanding commitments with respect to operating leases, which are due as follows: 2018 $ 41,298 2019 34,415 2020 14,340 Total $ 90,053 The Company leased from a third party office space at monthly rent prevailing at October 31, 2018 of $1,867 (2017: $1,963). This operating lease expired on July 20, 2015. The Company continues to lease this premises at same monthly rent pending a formal renewal of the lease. (C) Capital commitments The Company has no outstanding commitments contracted for, net of deposit paid, in respect of acquisitions of plant and machineries as of October 31, 2018 (2017: Nil). |
Income Tax
Income Tax | 12 Months Ended |
Oct. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax | 7. INCOME TAX ABMT was incorporated in the United States and has incurred net operating loss for income tax purposes for 2018 and 2017. ABMT has net operating loss carry forwards for income taxes amounting to approximately $2,082,118 and $1,915,159 as of October 31, 2018 and 2017 respectively which may be available to reduce future years’ taxable income. These carry forwards, will expire, if not utilized, commencing in 2029. Management believes that the realization of the benefits from these losses appears uncertain due to the Company’s limited operating history and continuing losses. Accordingly, a full, deferred tax asset valuation allowance has been provided and no deferred tax asset valuation allowance has been provided and no deferred tax asset benefit has been recorded. The valuation allowance at October 31, 2018 and 2017 was $707,920 and $651,154 respectively. The net change in the valuation allowance for 2018 was an increase of $56,766. Masterise was incorporated in the BVI and under current law of the BVI, is not subject to tax on income. Shenzhen Changhua was incorporated in the PRC and is subject to PRC income tax which is computed according to the relevant laws and regulations in the PRC. The income tax rate has been 25%. No income tax expense has been provided by Shenzhen Changhua as it has incurred losses. The losses cannot be carried forward as Shenzhen Changhua has not yet commenced operation. |
Concentrations and Risks
Concentrations and Risks | 12 Months Ended |
Oct. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Concentrations and Risks | 8. CONCENTRATIONS AND RISKS As at October 31, 2018 and 2017, 94% and 6% of the Company’s assets were located in the P.R.C. and the United States respectively. |
Going Concern
Going Concern | 12 Months Ended |
Oct. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | 9. GOING CONCERN As reflected in the accompanying consolidated financial statements, the Company has an accumulated deficit of $8,632,618 as of October 31, 2018 that includes a net loss of $953,320 for the year ended October 31, 2018. The Company’s total current liabilities exceed its total current assets by $5,721,907 and the Company used cash in operations of $832,421. These factors raise substantial doubt about its ability to continue as a going concern. In view of the matters described above, recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheet is dependent upon continued operations of the Company, which in turn is dependent upon the Company’s ability to raise additional capital, obtain financing and succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. To continue as a going concern, the Company is actively pursuing additional funding and strategic partners to enable it to implement its business plan. Management believes that these actions, if successful, will allow the Company to continue its operations through the next fiscal year. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Oct. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | 10. SUBSEQUENT EVENT The Company has evaluated the existence of significant events subsequent to the balance sheet date through the date the financial statements were issued and has determined that there were no subsequent events or transactions which would require recognition or disclosure in the financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Organization (Policies) | 12 Months Ended |
Oct. 31, 2018 | |
Accounting Policies [Abstract] | |
Organization | (A) Organization Advanced Biomedical Technologies, Inc. (fka “Geostar Mineral Corporation” or “Geostar”) (“ABMT”) was incorporated in Nevada on September 12, 2006. Shenzhen Changhua Biomedical Engineering Co., Ltd. (“Shenzhen Changhua”) was incorporated in the People’s Republic of China (“PRC”) on September 25, 2002 as a limited liability company with a registered capital of $724,017. Shenzhen Changhua is owned by two stockholders in the proportion of 70% and 30% respectively. Shenzhen Changhua has been involved in the development of polymer screws, rods and binding wires for fixation on human fractured bones. The Company is currently involved in researching, manufacturing and conducting clinical trials on its products and intends to raise additional capital to produce and market its products commercially. The Company holds one Class III permit and one Class II permit from the China Food and Drug Administration (“CFDA”), formally the State Food and Drug Administration (“SFDA”) of the PRC. The Company holds two patents issued by the State Intellectual Property Office of the P.R.C. (“SIPO”). The Company has no revenue since its inception and, in accordance with Accounting Standards Codification (“ASC”) Topic 915, “Development Stage Entities”, is considered a Development Stage Company. Masterise Holdings Limited (“Masterise”) was incorporated in the British Virgin Islands on 31 May, 2007 as an investment holding company. Masterise is owned as to 63% by the spouse of Shenzhen Changhua’s 70% majority stockholder and 37% by a third party corporation. On January 29, 2008, Masterise entered into a Share Purchase Agreement (“the Agreement”) with a stockholder of Shenzhen Changhua whereupon Masterise acquired 70% of Shenzhen Changhua for US$64,100 in cash. The acquisition was completed on February 25, 2008. As both Masterise and Shenzhen Changhua are under common control and management, the acquisition was accounted for as a reorganization of entities under common control. Accordingly, the operations of Shenzhen Changhua were included in the consolidated financial statements as if the transactions had occurred retroactively. On December 31, 2008, ABMT consummated a Share Exchange Agreement (“the Exchange Agreement”) with the stockholders of Masterise pursuant to which Geostar issued 50,000 shares of Common Stock to the stockholders of Masterise for 100% equity interest in Masterise. Concurrently, on December 31, 2008, a major stockholder of ABMT also consummated an Affiliate Stock Purchase Agreement (the “Affiliate Agreement”) with thirteen individuals including all the stockholders of Masterise, pursuant to which the major stockholder sold a total of 5,001,000 shares of ABMT’s common stock for a total aggregate consideration of $5,000, including 4,438,250 shares to the stockholders of Masterise. On consummation of the Exchange Agreement and the Affiliate Agreement, the 70% majority stockholder of Masterise became an 80.7% stockholder of ABMT. On March 13, 2009, the name of the Company was changed from Geostar Mineral Corporation to Advanced Biomedical Technologies, Inc. The merger of ABMT and Masterise was treated for accounting purposes as a capital transaction and recapitalization by Masterise (“the accounting acquirer”) and a re-organization by ABMT (“the accounting acquiree”). The financial statements have been prepared as if the re-organization had occurred retroactively. Accordingly, these financial statements include the following: (1) The balance sheet consisting of the net assets of the acquirer at historical cost and the net assets of the acquiree at historical cost. (2) The statement of operations including the operations of the acquirer for the periods presented and the operations of the acquiree from the date of the transaction. ABMT, Masterise and Shenzhen Changhua are hereinafter referred to as (“the Company”). |
Principles of Consolidation | (B) Principles of consolidation The accompanying consolidated financial statements include the financial statements of ABMT and its wholly owned subsidiaries, Masterise and its 70% owned subsidiary, Shenzhen Changhua. The noncontrolling interests represent the noncontrolling stockholders’ 30% proportionate share of the results of Shenzhen Changhua. All significant inter-company balances and transactions have been eliminated in consolidation. |
Use of Estimates | (C) Use of estimates The preparation of the financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | (D) Cash and cash equivalents For purpose of the statements of cash flows, cash and cash equivalents include cash on hand and demand deposits with a bank with a maturity of less than three months. As of October 31, 2018 and 2017, all the cash and cash equivalents were denominated in United States Dollars (“US$”), Hong Kong Dollars (“HK$”) and Renminbi (“RMB”) and were placed with banks in the United States of America, Hong Kong and PRC. Balances at financial institutions or state-owned banks within the PRC are not freely convertible into foreign currencies and the remittance of these funds out of the PRC is subject to exchange control restrictions imposed by the PRC government. |
Property and Equipment | (E) Property and equipment Property and equipment are stated at cost, less accumulated depreciation. Expenditures for additions, major renewals and betterments are capitalized and expenditures for maintenance and repairs are charged to expense as incurred. Depreciation is provided on a straight-line basis, less estimated residual value over the assets estimated useful lives. The estimated useful lives of the assets are 5 years. |
Long-lived Assets | (F) Long-lived assets The Company accounts for long-lived assets under the FASB Codification Topic 360 (ASC 360) “Accounting for Impairment or Disposal of Long-Lived Assets”. In accordance with ASC Topic 360, long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For purposes of evaluating the recoverability of long-lived assets, when undiscounted future cash flows will not be sufficient to recover an asset’s carrying amount, the asset is written down to its fair value. The long-lived assets of the Company, which are subject to evaluation, consist primarily of property and equipment. For the years ended October 31, 2018 and 2017, the Company has not recognized any allowances for impairment. |
Fair Value of Financial Instruments | (G) Fair value of financial instruments FASB Codification Topic 825 (ASC Topic 825), “Disclosure About Fair Value of Financial Instruments,” requires certain disclosures regarding the fair value of financial instruments. The carrying amounts of other receivables and prepaid expenses other payables and accrued liabilities and due to directors, a stockholder and related parties approximate their fair values because of the short-term nature of the instruments. The management of the Company is of the opinion that the Company is not exposed to significant interest or credit risks arising from these financial statements. |
Income Taxes | (H) Income taxes The Company accounts for income taxes under the FASB Codification Topic 740-10-25 (“ASC 740-10-25”). Under ASC 740-10-25, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740-10-25, the effect on deferred tax assets and liabilities of a change in tax rates is recognized as income in the period included the enactment date. We assess our income tax positions and record tax benefits for all years subject to examination based upon our evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where there is greater than 50% likelihood that a tax benefit will be sustained, we have recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is a 50% or less likelihood that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. |
Research and Development | (I) Research and development Research and development costs related to both present and future products are expensed as incurred. Total expenditure on research and development charged to general and administrative expenses for the years ended October 31, 2018 and 2017 were $56,512 and $48,053 respectively. |
Foreign Currency Translation | (J) Foreign currency translation The reporting currency of the Company is the US dollar. ABMT, Masterise and Shenzhen Changhua maintain their accounting records in their functional currencies of US$, HK$ and RMB respectively. Foreign currency transactions during the year are translated to the functional currency at the approximate rates of exchange on the dates of transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the approximate rates of exchange at that date. Non-monetary assets and liabilities are translated at the rates of exchange prevailing at the time the asset or liability was acquired. Exchange gains or losses are recorded in the statement of operations. The financial statements of Masterise and Shenzhen Changhua (whose functional currency is HK$ and RMB respectively) are translated into US$ using the closing rate method. The balance sheet items are translated into US$ using the exchange rates at the respective balance sheet dates. The capital and various reserves are translated at historical exchange rates prevailing at the time of the transactions while income and expenses items are translated at the average exchange rate for the year. All exchange differences are recorded within equity. The exchange rates used to translate amounts in HK$ and RMB into US$ for the purposes of preparing the financial statements were as follows: October 31, 2018 October 31, 2017 Balance sheet items, except for share capital, additional paid-in capital and accumulated deficits, as of year end US$1=HK$7.8393=RMB6.9737 US$1= HK$7.8015=RMB6.6328 Amounts included in the statements of operations and cash flows for the year US$1=HK$7.8351=RMB6.5629 US$1= HK$7.7842=RMB6.8013 The translation gain and loss recorded for the years ended October 31, 2018 and 2017 were $262,770 and $94,255 respectively. No presentation is made that RMB amounts have been, or would be, converted into US$ at the above rates. Although the Chinese government regulations now allow convertibility of RMB for current account transactions, significant restrictions still remain. Hence, such translations should not be construed as representations that RMB could be converted into US$ at that rate or any other rate. The value of RMB against US$ and other currencies may fluctuate and is affected by, among other things, changes in China’s political and economic conditions. Any significant revaluation of RMB may materially affect the Company’s financial condition in terms of US$ reporting. |
Other Comprehensive Loss | (K) Other comprehensive loss The foreign currency translation gain or loss resulting from translation of the financial statements expressed in RMB and HK$ to US$ is reported as other comprehensive gain or loss in the statements of operations and stockholders’ deficit. Other comprehensive gain and loss for the years ended October 31, 2018 and 2017 were $262,770 and $94,255 respectively. |
Loss Per Share | (L) Loss per share Basic loss per share are computed by dividing income available to stockholders by the weighted average number of shares outstanding during the year. Diluted loss per share is computed similar to basic loss per share except that the denominator is increased to include the number of additional shares that would have been outstanding if the potential shares had been issued and if the additional shares were diluted. There are no potentially dilutive securities as at October 31, 2018 and October 31, 2017. |
Segments | (M) Segments The Company operates in only one segment, thereafter segment disclosure is not presented. |
Recent Accounting Pronouncements | (N) Recent Accounting Pronouncements Business Combination: Clarifying the Definition of a Business In January 2017, the FASB issued ASU No. 2017-1 “Topic 805, Business Combinations: Clarifying the Definition of a Business”. The amendments in this update provide a screen to determine when a set is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. The amendments in this update affect all reporting entities that must determine whether they have acquired or sold a business. Public business entities should apply the amendments in this update to annual periods beginning after December 15, 2017, including interim periods within those periods. All other entities should apply the amendments to annual periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. The Company does not expect the adoption of ASU 2017-1 to have a material impact on its consolidated financial statements. Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU No. 2017-4 “Topic 350: Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment.” The amendments in this update eliminate step two of the goodwill impairment test and specifies that goodwill impairment should be measured by comparing the fair value of a reporting unit with its carrying amount. Additionally, the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets should be disclosed. The amendments in this update are effective for annual or interim goodwill impairment tests performed in fiscal years beginning after December 15, 2019; early adoption is permitted. The Company does not expect the adoption of ASU 2017-4 to have a material impact on its consolidated financial statements. Share-based Compensation In May 2017, the FASB issued guidance on changes to terms and conditions of share-based payment awards. The amendment provides guidance about which changes to terms or conditions of a share-based payment award require an entity to apply modification accounting. The guidance is effective for the fiscal year beginning on January 1, 2018, including interim periods within that year. In June 2018, the scope of Topic 718 has been expanded to include sharebased payment transactions for acquiring goods and services from nonemployees. An entity should apply the requirements of Topic 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost (that is, the period of time over which share-based payment awards vest and the pattern of cost recognition over that period). The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2018 and after December 15, 2019 for all other entities. Early adoption is permitted, but no earlier than an entity’s adoption date of Topic 606. The Company does not anticipate that adoption of these guidances will have a material impact on its consolidated financial statements. Revenue Recognition In May 2014, the FASB issued guidance on revenue from contracts with customers that will supersede most current revenue recognition guidance, including industry-specific guidance. Under the new standard, a good or service is transferred to the customer when (or as) the customer obtains control of the good or service, which differs from the risk and rewards approach under current guidance. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of the time value of money in the transaction price and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. In March, April and May 2016, the FASB issued three additional updates regarding identifying performance obligations and licensing, certain principal versus agent considerations and various narrow scope improvements based on practical questions raised by users. In September 2017, the FASB issued additional amendments providing clarification and implementation guidance. The guidance may be adopted through either retrospective application to all periods presented in the financial statements (full retrospective approach) or through a cumulative effect adjustment to retained earnings at the effective date (modified retrospective approach). The guidance is effective for the fiscal periods beginning on January 1, 2018. Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which modifies lease accounting for lessees to increase transparency and comparability by recording lease assets and liabilities for operating leases and disclosing key information about leasing arrangements. The new standard, as amended by ASU 2018-01 and ASU 2018-11, is effective for annual periods beginning after December 15, 2018 on a modified retrospective basis. The Company will adopt ASU 2016-02 in its first quarter of the year ending October 31 2020. The Company expects its leases designated as operating leases in Note 6, “Commitments and Contingencies,” will be reported on the consolidated balance sheets upon adoption. However, the ultimate impact of adopting ASU 2016-02 will depend on the lease terms as of the adoption date. The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoptions of any such pronouncements may be expected to cause a material impact on the financial condition or the results of operations. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Organization (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Exchange Rates Used in Translation | The exchange rates used to translate amounts in HK$ and RMB into US$ for the purposes of preparing the financial statements were as follows: October 31, 2018 October 31, 2017 Balance sheet items, except for share capital, additional paid-in capital and accumulated deficits, as of year end US$1=HK$7.8393=RMB6.9737 US$1= HK$7.8015=RMB6.6328 Amounts included in the statements of operations and cash flows for the year US$1=HK$7.8351=RMB6.5629 US$1= HK$7.7842=RMB6.8013 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | The following is a summary of property and equipment at October 31, 2018 and 2017: October 31, 2018 2017 Plant and machinery $ 296,517 $ 280,871 Motor vehicles 39,534 41,566 Office equipment 34,572 34,902 Computer software 5,017 5,017 Office improvements 145,480 121,126 521,120 483,482 Less: accumulated depreciation 418,225 422,967 Property and equipment, net $ 102,895 $ 60,515 |
Other Payables and Accrued Ex_2
Other Payables and Accrued Expenses (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Other Payables and Accrued Expenses | Other payables and accrued expenses at October 31, 2018 and 2017 consisted of the followings: October 31, 2018 2017 Other payables $ 215,095 $ 223,437 Accrued expenses 228,068 185,642 $ 443,163 $ 409,079 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Advances from Related Parties | As of October 31, 2018 and 2017, advances from related parties were as follows: October 31, 2018 2017 Yu Chi Fung $ 1,715,840 $ 1,710,759 Que Feng 36,040 35,782 Chen Tie Jun 2,344,849 1,800,541 Shenzhen Hygeian Medical Device Co., Ltd. 228,842 220,098 Amount due to related parties $ 4,325,571 $ 3,767,180 Advances from a stockholder and related parties are unsecured, repayable on demand and bearing interest at 7% per annum. Interest expenses on advances from a stockholder and the related parties accrued for the years ended October 31, 2018 and 2017 were as follows: October 31, 2018 2017 Titan Technology Development Limited, a stockholder $ 42,884 $ 37,379 Related parties: Que Feng 2,133 2,059 Yu Chi Fang 98,431 93,951 Chen Tie Jun 128,680 97,045 Shenzhen Hygeian Medical Device Co., Ltd. 14,628 11,710 Interest expenses to a stockholder and related parties $ 286,756 $ 242,144 As of October 31, 2018 and 2017, advances from directors were as follows: October 31, 2018 2017 Wang Wei $ 252,377 $ 298,818 Gui Kai 567 - Yu Chi Ming 20,930 22,602 Amount due to directors $ 273,874 $ 321,420 Advances from directors were unsecured, repayable on demand and interest free. Imputed interests on the amounts owed to Wang Wei, a director, were $13,815 and $15,623 for the years ended October 31, 2018, and 2017 respectively. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Obligations of Operating Leases | As of October 31, 2018, the Company had outstanding commitments with respect to operating leases, which are due as follows: 2018 $ 41,298 2019 34,415 2020 14,340 Total $ 90,053 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Organization (Details Narrative) | Dec. 31, 2008USD ($)shares | Jan. 29, 2008USD ($) | May 31, 2007 | Sep. 25, 2002USD ($) | Oct. 31, 2018USD ($)Segmentshares | Oct. 31, 2017USD ($)shares | Dec. 31, 2018 |
Estimated useful lives of property and equipment | 5 years | ||||||
Long-lived assets, allowances for impairment | |||||||
Likelyhood that tax benefit sustained | 50.00% | ||||||
Research and development costs | $ 56,512 | 48,053 | |||||
Foreign currency translation gain (loss) | 262,770 | (94,255) | |||||
Other comprehensive gain (loss) | $ 262,770 | $ (94,255) | |||||
Potentially dilutive securities | shares | |||||||
Number of operating segment | Segment | 1 | ||||||
Majority Shareholders [Member] | Masterise [Member] | |||||||
Ownership acquired | 70.00% | ||||||
Stock sold per affiliate agreement, shares | shares | 4,438,250 | ||||||
ABMT [Member] | |||||||
Stock issued in acquisition, shares | shares | 50,000 | ||||||
Equity method investment ownership percentage | 100.00% | ||||||
ABMT [Member] | Majority Shareholders [Member] | |||||||
Ownership acquired | 80.70% | ||||||
Stock sold per affiliate agreement, shares | shares | 5,001,000 | ||||||
Stock sold per affiliate agreement | $ 5,000 | ||||||
Shenzhen Changhua [Member] | |||||||
Registered capital | $ 724,017 | ||||||
Ownership interest - majority stockholder | 70.00% | ||||||
Ownership interest - minority stockholder | 30.00% | ||||||
Shenzhen Changhua [Member] | ABMT [Member] | |||||||
Ownership by non-controlling stockholders | 30.00% | ||||||
Masterise [Member] | |||||||
Ownership interest - majority stockholder | 63.00% | ||||||
Ownership interest - minority stockholder | 37.00% | ||||||
Ownership acquired | 70.00% | ||||||
Payment for acquisition | $ 64,100 | ||||||
Masterise [Member] | ABMT [Member] | |||||||
Equity method investment ownership percentage | 70.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies and Organization - Schedule of Exchange Rates Used in Translation (Details) | Oct. 31, 2018 | Oct. 31, 2017 |
USD [Member] | Statement of Operations and Cash Flows [Member] | ||
Exchange rate | 1 | 1 |
HKD [Member] | Statement of Operations and Cash Flows [Member] | ||
Exchange rate | 7.8351 | 7.7842 |
RMB [Member] | Statement of Operations and Cash Flows [Member] | ||
Exchange rate | 6.5629 | 6.8013 |
Balance Sheet Items Except for Share Capital, Additional Paid-In Capital and Accumulated Deficits, as of Year End [Member] | USD [Member] | ||
Exchange rate | 1 | 1 |
Balance Sheet Items Except for Share Capital, Additional Paid-In Capital and Accumulated Deficits, as of Year End [Member] | HKD [Member] | ||
Exchange rate | 7.8393 | 7.8015 |
Balance Sheet Items Except for Share Capital, Additional Paid-In Capital and Accumulated Deficits, as of Year End [Member] | RMB [Member] | ||
Exchange rate | 6.9737 | 6.6328 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 12 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 16,295 | $ 13,604 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) | Oct. 31, 2018 | Oct. 31, 2017 |
Property and equipment, gross | $ 521,120 | $ 483,482 |
Less: accumulated depreciation | 418,225 | 422,967 |
Property and equipment, net | 102,895 | 60,515 |
Plant and Machinery [Member] | ||
Property and equipment, gross | 296,517 | 280,871 |
Motor Vehicles [Member] | ||
Property and equipment, gross | 39,534 | 41,566 |
Office Equipment [Member] | ||
Property and equipment, gross | 34,572 | 34,902 |
Computer Software [Member] | ||
Property and equipment, gross | 5,017 | 5,017 |
Office Improvements [Member] | ||
Property and equipment, gross | $ 145,480 | $ 121,126 |
Other Payables and Accrued Ex_3
Other Payables and Accrued Expenses - Schedule of Other Payables and Accrued Expenses (Details) - USD ($) | Oct. 31, 2018 | Oct. 31, 2017 |
Payables and Accruals [Abstract] | ||
Other payables | $ 215,095 | $ 223,437 |
Accrued expenses | 228,068 | 185,642 |
Other payables and accrued expenses | $ 443,163 | $ 409,079 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 12 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Due to stockholder | $ 718,808 | $ 582,795 |
Interest rate | 7.00% | 7.00% |
Imputed interests | $ 13,815 | $ 15,623 |
Titan Technology Development Limited, a Stockholder [Member] | ||
Due to stockholder | $ 718,808 | $ 582,795 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Advances from Related Parties (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Due to related parties | $ 4,325,571 | $ 3,767,180 |
Interest expenses to a stockholder and related parties | 286,756 | 242,144 |
Due to directors | 273,874 | 321,420 |
Yu Chi Fung [Member] | ||
Due to related parties | 1,715,840 | 1,710,759 |
Interest expenses to a stockholder and related parties | 98,431 | 93,951 |
Que Feng [Member] | ||
Due to related parties | 36,040 | 35,782 |
Interest expenses to a stockholder and related parties | 2,133 | 2,059 |
Chen Tie Jun [Member] | ||
Due to related parties | 2,344,849 | 1,800,541 |
Interest expenses to a stockholder and related parties | 128,680 | 97,045 |
Shenzhen Hygeian Medical Device Co., Ltd. [Member] | ||
Due to related parties | 228,842 | 220,098 |
Interest expenses to a stockholder and related parties | 14,628 | 11,710 |
Wang Wei [Member] | ||
Due to directors | 252,377 | 298,818 |
Gui Kai [Member] | ||
Due to directors | 567 | |
Yu Chi Ming [Member] | ||
Due to directors | 20,930 | 22,602 |
Titan Technology Development Limited, a Stockholder [Member] | ||
Interest expenses to a stockholder and related parties | $ 42,884 | $ 37,379 |
Stockholders_ Deficiency (Detai
Stockholders’ Deficiency (Details Narrative) - USD ($) | Oct. 23, 2018 | Apr. 28, 2017 | Mar. 31, 2016 | Nov. 13, 2015 | Oct. 28, 2013 | Dec. 08, 2011 | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 |
Number of restricted common stock for services | $ 52,750 | $ 37,500 | $ 52,500 | ||||||
Common stock price per share | $ 0.211 | $ 0.15 | $ 1 | ||||||
Debt conversion of common stock | $ 500,000 | ||||||||
Debt conversion of common stock shares | 10,000,000 | ||||||||
Debt conversion price per share | $ 0.05 | $ 0.05 | $ 0.05 | ||||||
Company's Stockholder [Member] | |||||||||
Debt conversion of common stock | $ 106,506 | ||||||||
Two Related Parties [Member] | |||||||||
Debt conversion of common stock | $ 393,494 | ||||||||
Restricted Stock [Member] | Dr. John Lynch [Member] | |||||||||
Number of restricted common stock services, shares | 100,000 | ||||||||
Number of restricted common stock for services | $ 20,000 | ||||||||
Common stock price per share | $ 0.20 | ||||||||
Restricted Stock [Member] | Mr. Chi Ming Yu [Member] | |||||||||
Number of restricted common stock services, shares | 100,000 | 100,000 | 100,000 | 150,000 | |||||
Common stock price per share | $ 0.211 | $ 0.15 | $ 0.21 | $ 0.71 | |||||
Restricted Stock [Member] | Mr. Kai Gui [Member] | |||||||||
Number of restricted common stock services, shares | 150,000 | 150,000 | 150,000 | 150,000 | |||||
Common stock price per share | $ 0.211 | $ 0.15 | $ 0.21 | $ 0.71 | |||||
Restricted Stock [Member] | Mr. Chi Ming Yu and Kai Gui [Member] | |||||||||
Number of restricted common stock for services | $ 52,750 | $ 37,500 | $ 52,500 | $ 213,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Details Narrative) - USD ($) | 12 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Contributions under defined contribution plan | $ 58,469 | $ 37,440 |
Lease expiration date | Jul. 20, 2015 | |
Plant and machineries commitments | ||
Office Space [Member] | ||
Rent expense | $ 1,867 | $ 1,963 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Lease Obligations of Operating Leases (Details) | Oct. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 41,298 |
2,019 | 34,415 |
2,020 | 14,340 |
Total | $ 90,053 |
Income Tax (Details Narrative)
Income Tax (Details Narrative) - USD ($) | 12 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Net operating loss carry forwards | $ 2,082,118 | $ 1,915,159 |
Deferred tax asset valuation allowance | 707,920 | $ 651,154 |
Net change in the valuation allowance | $ 56,766 | |
P.R.C [Member] | ||
Income tax rate | 25.00% |
Concentrations and Risks (Detai
Concentrations and Risks (Details Narrative) - Assets [Member] - Geographic Concentration Risk [Member] | 12 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
P.R.C [Member] | ||
Concentration risk, percentage | 94.00% | 94.00% |
UNITED STATES [Member] | ||
Concentration risk, percentage | 6.00% | 6.00% |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | 12 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accumulated deficit | $ (8,632,618) | $ (7,679,298) |
Net loss | (953,320) | (691,600) |
Working capital deficit | 5,721,907 | |
Net cash used in operating activities | $ (832,421) | $ (557,712) |