Merion (EWLU) 10-Q13 Aug 202020 Q2 Quarterly reportFinancial data

Company Profile

Cover

Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2020	Aug. 12, 2020
Cover [Abstract]
Entity Registrant Name	Merion, Inc.
Entity Central Index Key	0001517498
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Jun. 30, 2020
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2020
Entity Common Stock Shares Outstanding		177,566,608
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes

CONDENSED BALANCE SHEETS

CONDENSED BALANCE SHEETS - USD ($)	Jun. 30, 2020	Dec. 31, 2019
CURRENT ASSETS:
Cash	$ 11,095	$ 9,237
Accounts receivable, net	31,523	39,781
Inventories	150,914	165,744
Prepaid expenses	178,739	23,350
TOTAL CURRENT ASSETS	372,271	238,112
PROPERTY AND EQUIPMENT, net	432,019	336,000
OPERATING RIGHT-OF-USE ASSETS	715,311	522,884
DEPOSITS	15,410	15,410
TOTAL ASSETS	1,535,011	1,112,406
CURRENT LIABILITIES:
Accounts payable and accrued expenses	1,337,403	1,208,257
Deferred revenue	503,729	6,693
Operating lease liabilities - current	189,773	113,857
Loan payable	121,100	0
Long term debt - current	16,250	0
Due to shareholder, non-interest bearing	439,024	438,055
Due to third parties, interest bearing	1,480,000	1,480,000
Due to third parties, non-interest bearing	60,000	50,000
TOTAL CURRENT LIABILITIES	4,147,279	3,296,862
NON-CURRENT LIABILITIES:
Operating lease liabilities - non-current	519,943	417,564
Long term debt	86,398	0
Loan payable	10,000	0
Due to shareholder, non-interest bearing	2,000,000	2,000,000
Advances from related parties, interest bearing	30,000	30,000
Advances from related parties, non-interest bearing	518,839	518,839
Due to employee	95,000	95,000
Due to third parties, interest bearing	20,000	20,000
Due to third parties, non-interest bearing	50,000	50,000
TOTAL NON-CURRENT LIABILITIES	3,330,180	3,131,403
TOTAL LIABILITIES	7,477,459	6,428,265
COMMITMENTS AND CONTINGENCIES	0	0
SHAREHOLDERS' DEFICIT:
Common stock, $0.001 par value, 200,000,000 shares authorized, 177,566,608 and 177,404,608 shares issued and outstanding, as of June 30, 2020 and December 31, 2019, respectively	177,566	177,404
Stock subscription receivable	(1,110,695)	(1,140,695)
Additional paid-in capital	19,334,233	19,184,395
Deferred stock compensation	(348,793)	(601,093)
Deficit	(23,994,759)	(22,935,870)
TOTAL SHAREHOLDERS' DEFICIT	(5,942,448)	(5,315,859)
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT	$ 1,535,011	$ 1,112,406

CONDENSED BALANCE SHEETS (Paren

CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2020	Dec. 31, 2019
SHAREHOLDERS' DEFICIT
Common stock, shares par value	$ 0.001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	177,566,608	177,404,608
Common stock, shares outstanding	177,566,608	177,404,608

CONDENSED STATEMENTS OF OPERATI

CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended		6 Months Ended
CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
SALES
Direct Sales	$ 8,777	$ 1,359,018	$ 29,754	$ 1,472,347
OEM and Packaging	20,347	118,631	65,358	153,679
TOTAL SALES	29,124	1,477,649	95,112	1,626,026
COST OF SALES
Direct Sales	8,521	32,570	15,051	44,552
OEM and Packaging	11,517	41,607	29,177	69,986
Idle Capacity	52,942	0	76,441	0
TOTAL COST OF SALES	72,980	74,177	120,669	114,538
GROSS PROFIT (LOSS)	(43,856)	1,403,472	(25,557)	1,511,488
OPERATING EXPENSES
Selling expenses	17,742	15,552	31,173	39,470
General and administrative expenses	309,188	352,239	692,796	742,660
Stock compensation expense	63,650	253,650	252,300	428,392
Gain on disposal of equipment	0	0	(16,000)	0
Total operating expenses	390,580	621,441	960,269	1,210,522
(LOSS) INCOME FROM OPERATIONS	(434,436)	782,031	(985,826)	300,966
OTHER (EXPENSE) INCOME, net
Other income	11,610	11,346	11,817	44,187
Finance expenses	(43,293)	(16,122)	(84,880)	(31,448)
Gain on debt settlement	0	0	0	241,426
Total other income (expense), net	(31,683)	(4,776)	(73,063)	254,165
(LOSS) INCOME BEFORE INCOME TAXES	(466,119)	777,255	(1,058,889)	555,131
PROVISION FOR INCOME TAXES	0	0	0	0
NET (LOSS) INCOME	$ (466,119)	$ 777,255	$ (1,058,889)	$ 555,131
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
Basic	177,566,608	177,251,571	177,547,678	176,158,993
Diluted	177,566,608	178,291,586	177,547,678	177,451,005
INCOME (LOSS) PER SHARE
Basic	$ 0	$ 0	$ (0.01)	$ 0
Diluted	$ 0	$ 0	$ (0.01)	$ 0

CONDENSED STATEMENTS OF CHANGES

CONDENSED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT - USD ($)	Total	Common Stock	Stock Subscription Receivable	Additional Paid-In Capital	Deferred Stock Compensation	Deficit
Balance, shares at Dec. 31, 2018		174,792,364
Balance, amount at Dec. 31, 2018	$ (6,402,959)	$ 174,792	$ (1,200,000)	$ 17,573,900	$ (738,185)	$ (22,213,466)
Net loss	(222,124)	$ 0	0	0	0	(222,124)
Issuance of common stock for consulting services, shares		1,150,000
Issuance of common stock for consulting services, amount	0	$ 1,150	0	1,078,850	(1,080,000)	0
Amortization of deferred stock compensation	174,742	$ 0	0	0	174,742	0
Issuance of common stock for debt settlement, shares		1,271,844
Issuance of common stock for debt settlement, amount	763,107	$ 1,272	0	761,835	0	0
Collection of stock subscription	62,500	$ 0	62,500	0	0	0
Balance, shares at Mar. 31, 2019		177,214,208
Balance, amount at Mar. 31, 2019	(5,624,734)	$ 177,214	(1,137,500)	19,414,585	(1,643,443)	(22,435,590)
Balance, shares at Dec. 31, 2018		174,792,364
Balance, amount at Dec. 31, 2018	(6,402,959)	$ 174,792	(1,200,000)	17,573,900	(738,185)	(22,213,466)
Net loss	555,131
Balance, shares at Jun. 30, 2019		177,264,208
Balance, amount at Jun. 30, 2019	(4,567,024)	$ 177,264	(1,110,695)	19,054,535	(1,029,793)	(21,658,335)
Balance, shares at Mar. 31, 2019		177,214,208
Balance, amount at Mar. 31, 2019	(5,624,734)	$ 177,214	(1,137,500)	19,414,585	(1,643,443)	(22,435,590)
Net loss	777,255	$ 0	0	0	0	777,255
Issuance of common stock for consulting services, shares		50,000
Issuance of common stock for consulting services, amount	0	$ 50	0	(50)	0	0
Amortization of deferred stock compensation	253,650	0	0	0	253,650	0
Collection of stock subscription	26,805	0	26,805	0	0	0
Cancellation of common stock for consulting services	0	$ 0	0	(360,000)	360,000	0
Balance, shares at Jun. 30, 2019		177,264,208
Balance, amount at Jun. 30, 2019	(4,567,024)	$ 177,264	(1,110,695)	19,054,535	(1,029,793)	(21,658,335)
Balance, shares at Dec. 31, 2019		177,404,608
Balance, amount at Dec. 31, 2019	(5,315,859)	$ 177,404	(1,140,695)	19,184,395	(601,093)	(22,935,870)
Net loss	(592,770)	0	0	0	0	(592,770)
Amortization of deferred stock compensation	188,650	0	0	0	188,650	0
Collection of stock subscription	50,000	$ 0	50,000	0	0	0
Issuance of common stock for cash and financing related services, shares		162,000
Issuance of common stock for cash and financing related services, amount	130,000	$ 162	(20,000)	149,838	0	0
Balance, shares at Mar. 31, 2020		177,566,608
Balance, amount at Mar. 31, 2020	(5,539,979)	$ 177,566	(1,110,695)	19,334,233	(412,443)	(23,528,640)
Balance, shares at Dec. 31, 2019		177,404,608
Balance, amount at Dec. 31, 2019	(5,315,859)	$ 177,404	(1,140,695)	19,184,395	(601,093)	(22,935,870)
Net loss	(1,058,889)
Balance, shares at Jun. 30, 2020		177,566,608
Balance, amount at Jun. 30, 2020	(5,942,448)	$ 177,566	(1,110,695)	19,334,233	(348,793)	(23,994,759)
Balance, shares at Mar. 31, 2020		177,566,608
Balance, amount at Mar. 31, 2020	(5,539,979)	$ 177,566	(1,110,695)	19,334,233	(412,443)	(23,528,640)
Net loss	(466,119)	0	0	0	0	(466,119)
Amortization of deferred stock compensation	63,650	$ 0	0	0	63,650	0
Balance, shares at Jun. 30, 2020		177,566,608
Balance, amount at Jun. 30, 2020	$ (5,942,448)	$ 177,566	$ (1,110,695)	$ 19,334,233	$ (348,793)	$ (23,994,759)

CONDENSED STATEMENTS OF CASH FL

CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	6 Months Ended
CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	Jun. 30, 2020	Jun. 30, 2019
Cash Flows from Operating Activities:
Net loss	$ (1,058,889)	$ 555,131
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	27,883	33,361
Gain on disposal of equipment	(16,000)	0
Stock compensation expense	252,300	428,392
Gain on debt settlement	0	(241,426)
Amortization of operating right-of-use assets	86,455	46,382
Bad debt expense	26,665	11,134
Changes in operating assets and liabilities
Accounts receivable	(18,407)	(59,875)
Inventories	14,830	(111,635)
Prepaid expenses	(155,389)	51,033
Deposits	0	(15,410)
Accounts payable and accrued expenses	129,147	329,334
Deferred revenue	497,036	(1,418,976)
Operating lease liabilities	(100,588)	(52,650)
Net Cash Used in Operating Activities	(314,957)	(445,205)
Cash Flows from Financing Activities:
Proceeds from issuance of common stock and stock subscription	180,000	89,305
Advances from shareholder, non-interest bearing	11,604	142,860
Repayment of shareholder loan, non-interest bearing	(10,635)	(62,048)
Repayment of advances from third parties, non-interest bearing	0	(19,666)
Advances from third parties, non-interest bearing	10,000	0
Proceeds from loan payable	131,100
Principal payments of long-term debt	(5,254)	0
Net Cash Provided by Financing Activities	316,815	150,451
Net Change in Cash	1,858	(294,754)
Cash, beginning of period	9,237	295,521
Cash, end of period	11,095	767
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest	409	0
Cash paid for income tax	0	0
Non-cash Transactions of Investing and Financing Activities:
Stock issued for debt settlement	0	763,107
Stock issued on deferred stock compensation	0	720,000
Initial recognition of operating right-of-use assets and lease liabilities	278,883	618,226
Nonmonetary exchange of equipment and issuance of debt for equipment	$ 123,902	$ 0

Organization

Organization	6 Months Ended
Organization	Jun. 30, 2020
Organization
Note 1 - Organization	Merion, Inc. (the “Company”), a Nevada corporation, was formed on February 4, 2011. Its predecessor, E-World USA Holding, Inc., was a California company incorporated in 2007 (“E-World CA”). In April 2011, E-World CA entered into a merger agreement with its wholly-owned subsidiary, E-World USA Holding, Inc., a Nevada corporation (“E-World NV”) that was the survivor of the merger and became the Company. Under the Merger Agreement, the Company issued 90,000,000 shares of its common stock on a one for one basis for each share of E-World CA’s common stock issued and outstanding at the date of the merger. In addition, the Company issued Type A Warrants and Type B Warrants in exchange for comparable warrants issued and outstanding of E-World CA at the date of the merger. On June 27, 2017, the Company filed an amendment to its Articles of Incorporation with the Secretary of State for the State of Nevada to change its name from E-World NV to Merion, Inc. The Company is a manufacturer and provider of health and nutritional supplements and personal care products currently sold on the internet through our websites, www.dailynu.com and www.merionus.com, and to wholesale distributors. The Company also provides Original Equipment Manufacturer (“OEM”) and packaging services of hard capsules, tablets, solid beverage (sachet packaging), teabags, powder, granules, dietary supplements for export, softgel capsules and health food.

Going Concern

Going Concern	6 Months Ended
Going Concern	Jun. 30, 2020
Going Concern
Note 2 - Going Concern	Management has determined there is substantial doubt about our ability to continue as a going concern as a result of our lack of significant revenues, significant recurring losses, and negative working capital. If we are unable to generate significant revenue or secure additional financing, we may be required to cease or curtail our operations. Our financial statements do not include adjustments that might result from the outcome of this uncertainty. Management is trying to alleviate the going concern risk by: engaging external sales representatives to sell the Company’s products, investigating and securing various financing resources, including but not limited to borrowing from the Company’s major shareholder, private placements, and the possibility of raising funds through a future public offering.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
Summary of Significant Accounting Policies	Jun. 30, 2020
Summary of Significant Accounting Policies
Note 3 - Summary of Significant Accounting Policies	Basis of Presentation These unaudited condensed financial statements have been presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In the opinion of management, all adjustments consisting of normal recurring adjustments considered necessary for a fair presentation of the financial statements, have been included. Interim results are not necessarily indicative of results to be expected for the full year. The information included in this Form 10-Q should be read in conjunction with information included in the Company’s annual report on Form 10-K for the year ended December 31, 2019, filed with the Securities and Exchange Commission on April 8, 2020. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant accounting estimates reflected in the Company’s financial statements include the useful lives of property and equipment, the collectability of receivables and impairment on long-lived assets. The inputs into the Company’s judgments and estimates consider the economic implications of COVID-19 on the Company’s critical and significant accounting estimates. Actual results could differ from those estimates. Cash and cash equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are comprised primarily of money market accounts and foreign and domestic bank accounts. To reduce its credit risk, the Company monitors the credit standing of the financial institutions that hold the Company’s cash and cash equivalents. Accounts Receivable Trade accounts receivable are periodically evaluated for collectability based on credit history with customers and their current financial condition. Bad debt expense or write-offs of receivables are determined on the basis of loss experience, known and inherent risks in the receivable portfolio, and current economic conditions. The accounts receivable balance and allowance for doubtful accounts are as follows: June 30 , 2020 December 31, 2019 (Unaudited) Accounts receivable $ 99,199 $ 80,792 Allowance for doubtful accounts (67,676 ) (41,011 ) Accounts receivable, net $ 31,523 $ 39,781 Movement of the allowance for doubtful accounts is as follows: Six Months Ended June 30 , 2020 Year Ended December 31, 2019 (Unaudited) Beginning balance $ 41,011 $ - Provision for doubtful accounts 26,665 41,011 Less: write-offs - - Ending balance $ 67,676 $ 41,011 Inventories Inventories are valued at the lower of cost (determined on a first-in, first-out basis) or net realizable value. Inventory consists of nutritional products, beauty products, and raw materials in our manufacturing facility. Management reviews inventory on hand for estimated obsolescence or unmarketable items, as compared to future demand requirements and the shelf life of the various products. Based on the review, the Company records inventory write-downs, when necessary, when costs exceed expected net realizable value. The inventories’ shelf lives are approximately 3 years. As of June 30, 2020 and December 31, 2019, there were no inventory obsolescence reserves or write-downs. Property and Equipment, net Property and equipment are stated at cost, net of accumulated depreciation. Upon disposition, the cost and related accumulated depreciation and amortization is removed from the books, and any resulting gain or loss is included in operations. The Company provides depreciation and amortization using the straight-line method over the estimated useful lives of various classes as follows: Machinery 10 years Computer and software 3 to 5 years Furniture and fixtures 5 to 10 years Vehicles 5 to 7 years Leasehold improvements over the lesser of the remaining lease term or the expected life of the improvement Repairs and maintenance are charged to operations when incurred while betterments and renewals are capitalized. Operating Right-of-use Asset and Lease Liabilities In February 2016, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02 “Leases (Topic 842).” The new standard requires lessees to recognize lease assets (“right of use”) and related lease obligations (“lease liabilities”) for leases previously classified as operating leases under generally accepted accounting principles on the balance sheet for leases with terms in excess of 12 months. The standard is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted this standard as of January 1, 2019 utilizing the practical expedients approach. Impairment of Long-Lived Assets Long-lived assets, including property, equipment and intangible assets with finite lives, are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognizes an impairment loss when estimated discounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When the Company identifies an impairment, the Company reduces the carrying amount of the asset to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, to comparable market values. Management reviewed the potential impact of COVID-19 and the related disruptions on the Company’s operating results, and based upon potential orders believes that currently there was no impairment during the six months ended June 30, 2020. Deferred Revenue Deferred revenue represents product deposits advanced by customers on specified product orders or on future orders that have not been shipped as of the balance sheet date. Deferred revenue also represents shipping fee deposits advanced by customers in relation to the unshipped product orders. Deferred revenue is reduced when the related sale is recognized in accordance with the Company’s revenue recognition policy. Fair Value of Financial Instruments The FASB accounting standards codification (“ASC”), FASB ASC 825 Financial Instruments As defined in ASC 820 Fair Value Measurement The three levels of the fair value hierarchy are as follows: Level 1 – Quoted prices that are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 – Pricing inputs, other than quoted prices in active markets included in level 1, which are either directly or indirectly observable as of the reporting date and includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. Revenue Recognition The Company’s revenue is recognized based on the amount of consideration the Company expects to receive in exchange for satisfying the performance obligations in accordance with ASC 606 Revenue from Contracts with Customers The core principle underlying the revenue recognition is that the Company will recognize revenue to represent the transfer of goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. This will require the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. The Company’s revenue streams are recognized at a point in time, based on when control of goods and services transfers to a customer and there are no remaining performance obligations under the contract. ASC 606 requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies each performance obligation. The Company accounts for a contract with a customer when the contract is committed in writing, the rights of the parties, including payment terms, are identified, the contract has commercial substance and consideration is probable of collection. The Company derives its revenues from sales contracts with its customers with revenues being recognized upon delivery of products. Persuasive evidence of an arrangement is demonstrated via sales contracts and invoices; and the sales price to the customer is fixed upon acceptance of the sales contract. Sales rebates or discounts are recognized as a reduction of revenue when the sale is made. The Company recognizes revenue when control of the goods is transferred upon shipment to the customer by the Company and collectability of payment is reasonably assured. These revenues are recognized at a point in time after all performance obligations are satisfied. The Company also recognizes revenue on shipping and handling fees charged to the Company’s customers. Shipping and handling fee revenue is recognized when products have been delivered at a point in time. Shipping and handling fee revenues totaled $198 and $23,615 for the three months ended June 30, 2020 and 2019, respectively, and totaled $897 and $26,424 for the six months ended June 30, 2020 and 2019, respectively. Product returns are allowed for unopened products purchased under regular sales terms within 60 days. Allowances for product returns are provided at the time the sale is recorded using historic return rates for each country and the relevant return pattern. Historically the Company has a return rate of nearly zero. Accordingly, the allowance as of June 30, 2020 and December 31, 2019 is estimated at $0. In addition to the Company’s 60-day return policy, the Company, at its discretion, may accept a customer’s application for a buy-back of products previously sold within one year at 90% of the original product’s cost less commissions and shipping costs. To date, the Company has not received any buy-back applications. As a result, no allowance for buy-backs had been recorded as of June 30, 2020 and December 31, 2019. The majority of the Company’s product sales are generated from China and all of the Company’s OEM and packaging sales are generated from the United States. While all products are priced in U.S. currency, the Company accepts payments in both U.S. dollars and Hong Kong dollars. Shipping and Handling Expenses Shipping and handling costs incurred by the Company are included in selling expenses and totaled $2,691 and $9,261 for the three months ended June 30, 2020 and 2019, respectively, and totaled $6,157 and $19,963 for the six months ended June 30, 2020 and 2019, respectively. Income Taxes The Company utilizes ASC 740 Income Taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Deferred taxes are also recognized for net operating losses that can be carried forward. A valuation allowance is established, when necessary, to reduce net deferred tax assets to the amount expected to be realized. Basic and Diluted Earnings (Loss) Per Share Generally accepted accounting principles regarding earnings per share (“EPS”) require presentation of basic and diluted earnings (loss) per share in conjunction with the disclosure of the methodology used in computing such earnings (loss) per share. Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average of common shares outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. These common stock equivalents are not included when the Company has a loss because they would be anti-dilutive. 2,300,000 shares of restricted common stock are excluded in the diluted EPS calculation for the three and six months ended June 30, 2020, due to its anti-dilutive nature. There were no other potential dilutive securities outstanding for the three and six months ended June 30, 2020 and 2019. Concentration of Credit Risk Financial instruments Financial instruments that potentially subject the Company to concentrations of credit risk are cash and accounts receivable arising from its normal business activities. The Company maintains balances at financial institutions which, from time to time, may exceed Federal Deposit Insurance Corporation (FDIC) insured limits for the banks located in the United States, or may exceed Hong Kong Deposit Protection Board (HKDPB) insured limits for the banks located in Hong Kong. The Company had no uninsured balances as of June 30, 2020 and December 31, 2019. Major Customers and Suppliers For the three months ended June 30, 2020, three customers accounted for approximately 82% (61%, 11% and 10%) of the Company’s sales and for the three months ended June 30, 2019, no customer accounted for more than 10% of the Company’s sales. For the six months ended June 30, 2020, three customers accounted for approximately 56% (20%, 19% and 17%) of the Company’s sales and for the six months ended June 30, 2019, no customer accounted for more than 10% of the Company’s sales. As of June 30, 2020, two customers accounted for approximately 73% (55% and 18%) of the Company’s accounts receivable. As of December 31, 2019, three customers accounted for approximately 88% (67%, 11% and 10%) of the Company’s accounts receivable. For the three months ended June 30, 2020, four suppliers accounted for 75% (27%, 22%, 14%, and 12%) of the Company’s product purchases and for the three months ended June 30, 2019, two suppliers accounted for approximately 81% (64% and 17%) of the Company’s product purchases. For the six months ended June 30, 2020, four suppliers accounted for 74% (27%, 21%, 14%, and 12%) of the Company’s product purchases and for the six months ended June 30, 2019, four suppliers accounted for approximately 69% (23%, 19%, 17% and 10%) of the Company’s product purchases. Risk and Uncertainties In March 2020, the World Health Organization declared the COVID-19 as a pandemic. Given the rapidly expanding nature of the COVID-19 pandemic, and because substantially all of the Company’s business operations and its major customers are concentrated in China and United States, its business, results of operations, and financial condition could be materially adversely affected for the rest of fiscal year 2020 and beyond. Our total revenues in July of 2020 were lower as compared to the same period of 2019. Although the Company expects to generate $920,000 of revenues before the end of August for an OEM order that is currently in process, there is no guarantee that our total revenues will grow or remain at a similar level year over year for the remainder of 2020. Related Parties A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party. New Accounting Pronouncements In May 2019, the FASB issued ASU 2019-05, which is an update to ASU Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The amendments in Update 2016-13 added Topic 326, Financial Instruments—Credit Losses, and made several consequential amendments to the Codification. Update 2016-13 also modified the accounting for available-for-sale debt securities, which must be individually assessed for credit losses when fair value is less than the amortized cost basis, in accordance with Subtopic 326-30, Financial Instruments— Credit Losses—Available-for-Sale Debt Securities. The amendments in this update address those stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. In November 2019, the FASB issued ASU No. 2019-10, which to update the effective date of ASU No. 2016-13 for private companies, not-for-profit organizations and certain smaller reporting companies applying for credit losses standard. The new effective date for these preparers is for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company has not early adopted this update and it will become effective on January 1, 2023 assuming the Company will remain eligible to be smaller reporting company. The Company is currently evaluating the impact of this new standard on Company’s unaudited condensed financial statements and related disclosures. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”. The amendments in this Update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 is effective for the Company for annual and interim reporting periods beginning January 1, 2021. Early adoption of the amendments is permitted, including adoption in any interim period for public business entities for periods for which financial statements have not yet been issued. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. The Company is currently evaluating the impact of this new standard on Company’s unaudited condensed financial statements and related disclosures The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s unaudited condensed financial statements. Reclassifications Certain prior period amounts have been reclassified to conform to the current year presentation. These reclassifications have no effect on the accompanying statements of operations and cash flows.

Inventories

Inventories	6 Months Ended
Inventories	Jun. 30, 2020
Inventories
Note 4 - Inventories	Inventories consist of the following: June 30 , 2020 December 31, 2019 (Unaudited) Raw materials $ 99,260 $ 101,102 Work-in-progress 16,976 6,776 Finished goods 34,678 57,866 Inventories $ 150,914 $ 165,744

Property and Equipment

Property and Equipment	6 Months Ended
Property and Equipment	Jun. 30, 2020
Property and Equipment
Note 5 - Property and Equipment	Property and equipment consist of the following: June 30 , 2020 December 31, 2019 (Unaudited) Computer equipment and software $ 114,953 $ 114,953 Furniture and fixtures 26,686 26,686 Automobiles 123,902 179,677 Leasehold improvements 40,053 40,053 Machinery 420,000 420,000 Total 725,594 781,369 Less: accumulated depreciation and amortization (293,575 ) (445,369 ) Property and equipment, net $ 432,019 $ 336,000 Depreciation expense totaled $15,662 and $16,150 for the three months ended June 30, 2020 and 2019, respectively. Depreciation expense totaled $27,883 and $33,361 for the six months ended June 30, 2020 and 2019, respectively.

Debt

Debt	6 Months Ended
Debt	Jun. 30, 2020
Debt
Note 6 - Debt	Loan payable - Paycheck Protection Program (“PPP”) On April 17, 2020, the Company received loan proceeds in the amount of approximately $131,100 under the U.S. Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”). The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), provides for loans to qualifying businesses for amounts up to 2.5 times of the average monthly payroll expenses of the qualifying business. The loans and accrued interest are forgivable after eight weeks (or an extended 24-week covered period) as long as the borrower uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. The loan forgiveness amount will be reduced for any Economic Injury Disaster Loan (“EIDL”) advance of $10,000 that the Company received on April 28, 2020. The amount of loan forgiveness will be further reduced if the borrower terminates employees or reduces salaries during the eight-week period by more than 25%. The Company intends to use the proceeds for purposes consistent with the PPP. While the Company currently believes that its use of the loan proceeds of $121,100, net of EIDL advances, will meet the conditions for forgiveness of the loan and interest and intends to file for loan forgiveness before the end of 2020. There can be no assurance that the full amount of the loan will be forgiven. The estimated unforgiven amount of $10,000 is expected to be due on April 16, 2022. Interest expense for the three and six months ended June 30, 2020 amounted to $20. Due to third parties, interest bearing The Company has borrowed money from third parties to fund operations. These third parties consist of the Chief Executive and Financial Officer’s friends and the spouse of a former board member of the Company. These advances have weighted average annual interest rates of 10% and 6% for both the three and six months ended June 30, 2020 and 2019, respectively, are unsecured, and are due on demand or March 30, 2024. As of June 30, 2020 and December 31, 2019, the Company owed $1,500,000 to these third parties, among which, $20,000 are due on March 20, 2024. Interest expense for the three months ended June 30, 2020 and 2019 for the above loans amounted to $37,198 and $299, respectively. Interest expense for the six months ended June 30, 2020 and 2019 for the above loans amounted to $74,396 and $1,722, respectively. Due to third parties, non-interest bearing The Company has borrowed money from third parties to fund operations. These third parties consist of the Chief Executive and Financial Officer’s friends and a former board member of the Company. These advances do not bear interest, are unsecured, and are due on demand or March 30, 2024. As of June 30, 2020 and December 31, 2019, the Company owed $110,000 and $100,000 to these third parties, respectively, of which, $50,000 is due on March 20, 2024 Long term debt In March 2020, the Company purchased and financed a vehicle with a six year loan for a total of approximately$124,000. The Company traded in a fully depreciated vehicle and received a credit of $16,000. The monthly payments are $1,715 from March 2020 to February 2026, with interest at 4.56% per annum. As of June 30, 2020, $102,648 of loan payments remained outstanding, of which $16,250 are due within one year from June 30, 2020. The obligation is payable as follows: Twelve months ended June 30 , Amount (Unaudited) 2021 $ 16,250 2022 17,004 2023 17,795 2024 18,621 2025 19,487 Thereafter 13,491 Total long-term debt payment 102,648 Current portion of long-term debt (16,250 ) Long term debt $ 86,398 Interest expense for the three months ended June 30, 2020 for the above loan amounted to $1,198. Interest expense for the six months ended June 30, 2020 for the above loan amounted to $1,607.

Related Party Transactions

Related Party Transactions	6 Months Ended
Related Party Transactions	Jun. 30, 2020
Related Party Transactions
Note 7 - Related Party Transactions	Due to shareholder, interest bearing In January 2016, Mr. Dinghua Wang, a major shareholder, director, Chief Executive and Financial Officer of the Company, pledged certain of his personal assets and obtained a personal loan from which he provided funds for the operations of the Company. In consideration for the funds the Company received, the Company agreed to pay the interest on this loan on Mr. Wang’s behalf. This loan has an annual borrowing rate of 9.99%. The full balance of $471,603 was repaid in October 2019. Interest expense for the three months ended June 30, 2020 and 2019 for the above loan amounted to $0 and $12,487. Interest expense for the six months ended June 30, 2020 and 2019 for the above loan amounted to $0 and $24,975. Due to shareholder, non-interest bearing From time to time, Mr. Dinghua Wang, a major shareholder, director, Chief Executive and Financial Officer of the Company, advances monies to the Company and the Company repays such advances. Such business transactions are recorded as due to or from Mr. Wang at the time of the transaction. During the six months ended June 30, 2020 and 2019, advances totaled $11,604 and $142,860, respectively, and payments to Mr. Wang totaled $10,635 and $62,048, respectively. As of June 30, 2020 and December 31, 2019, the balance due to Mr. Wang, non-interest bearing, amounted to $2,439,024 and $2,438,055, respectively, of which, $2,000,000 is due on March 20, 2024. This balance is unsecured and is due on demand. Due to employee The Company has borrowed money from Vickie Ho, Executive Vice President of the Company, to fund operations. These advances do not bear interest, are unsecured, and are due on March 20, 2024. As of June 30, 2020 and December 31, 2019, the Company owed $95,000 to such employee. Advances from related parties, interest bearing The Company borrowed $30,000 from a related party to fund operations in July 2016. This related party is the son of the Company’s Chief Executive and Financial Officer. The advance has an annual interest rate of 10%, is unsecured and is due on March 20, 2024. As of June 30, 2020 and December 31, 2019, the Company owed $30,000 to this related party. Interest expense for the three months ended June 30, 2020 and 2019 for the above loans amounted to $748 and $748, respectively. Interest expense for the six months ended June 30, 2020 and 2019 for the above loans amounted to $1,496 and $1,488, respectively. Advances from related parties, non-interest bearing The Company has borrowed money from certain related parties to fund operations. The related parties consist of the Chief Executive and Financial Officer’s immediate family members and relatives. These advances do not bear interest, are unsecured and are due on March 20, 2024. As of June 30, 2020 and December 31, 2019, the Company owed $518,839 to these related parties.

Income Taxes

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2020
Income Taxes
Note 8 - Income Taxes	The following table reconciles the U.S. statutory rates to the Company’s effective tax rate for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 Six Month Ended June 30, 2020 Six Months Ended June 30, 2019 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Federal statutory rate 21.0 % 21.0 % 21.0 % 21.0 % State statutory rate 7.0 % 7.0 % 7.0 % 7.0 % Valuation allowance (24.0 )% (37.7 )% (20.9 )% (51.0 )% Permanent difference * (4.0 )% 9.7 % (7.1 )% 23.0 % Effective tax rate 0.0 % 0.0 % 0.0 % 0.0 % *Represents 50% of meal and entertainment expenses and stock compensation expenses that are not deductible. The Company uses the asset and liability method, where deferred tax assets and liabilities are determined based on the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities for financial and income tax reporting purposes. Deferred taxes are also recognized for net operating loss carry forwards which can be utilized to offset taxable income in the future. The cumulative net operating loss carryforwards that may be applied against future taxable income is approximately $9.1 million for federal and state income taxes as of June 30, 2020. The cumulative net operating loss carry forward that may be applied against future taxable income is approximately $8.3 million for federal and state as of December 31, 2019. Net operating loss for the years ended 2017 through 2019 will not expire but limited to 80% of income until utilized. Net operating loss for the years ended 2016 and prior will expire in the years 2031 to 2036. As deferred tax assets may not be fully realizable due to potential recurring losses, management has provided a 100% valuation allowance for the deferred tax assets. The components of the deferred tax assets are as follows: June 30 , 2020 December 31, 2019 (Unaudited) Allowance for doubtful accounts $ 18,938 $ 11,476 Amortization of intangible assets 188,889 196,445 Net operating losses 2,345,956 2,125,102 Total deferred tax assets 2,553,783 2,333,023 Valuation allowance (2,553,783 ) (2,333,023 ) Deferred tax assets, net $ - $ - Changes in the value allowance for deferred tax assets increased by $220,760 from $2,333,023 at December 31, 2019 to $2,553,783 at June 30, 2020. During the six months ended June 30, 2020, the Company did not utilized any deferred tax assets from the prior period. As of June 30, 2020, federal tax returns filed for 2017, 2018 and 2019 remain subject to examination by the taxing authorities. As of June 30, 2020, California tax returns filed for 2016, 2017, 2018 and 2019 remain subject to examination by the taxing authorities.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2020
Commitments and Contingencies
Note 9 - Commitments and Contingencies	Commitments Operating lease Effective January 1, 2019, the Company adopted ASU 2016-02, “Leases” (Topic 842), and elected the practical expedients that do not require us to reassess: (1) whether any expired or existing contracts are, or contain, leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. The Company adopted the practical expedient that allows lessees to treat the lease and non-lease components of a lease as a single lease component. There is no impact from the adoption of ASC 842 as of January 1, 2019, as the Company did not have any existing leases with a lease term in excess of twelve months on January 1, 2019. In January 2019, the Company entered an office lease agreement with a 5-year lease term starting in March 2019 and ending in February 2024. The Company recognized lease liabilities of approximately $618,000, with a corresponding right-of-use (“ROU”) asset in the same amount based on the present value of the future minimum rental payments of the lease, using an effective interest rate of 4.78%, which was determined using the Company’s estimated incremental borrowing rate. The remaining term of the lease is 3.67 years. In March 2020, the Company entered another new office lease agreement with 3-year lease term starting in March 2020 and ending in February 2023. The Company recognized lease liabilities of approximately $279,000, with a corresponding right-of-use (“ROU”) asset in the same amount based on the present value of the future minimum rental payments of the new lease, using an effective interest rate of 4.78%, which was determined using the Company’s incremental borrowing rate. The remaining term of the lease is 2.67 years The Company also leases factory space on a month-to-month basis, which it classifies as an operating lease. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. For the three months ended June 30, 2020 and 2019, lease expenses amounted to $70,286 and $45,287, respectively, of which, $10,500 and $10,500 are short-term lease expenses, respectively. For the six months ended June 30, 2020 and 2019, lease expenses amounted to $123,906 and $67,382, respectively, of which, $21,000 and $21,000 are short-term lease expenses, respectively. The five-year maturity of the Company’s lease obligations is presented below: Twelve months ended June 30, Operating lease amount (Unaudited) 2021 $ 220,073 2022 240,844 2023 211,731 2024 98,624 Total lease payments 771,272 Less: interest (61,556 ) Present value of lease liabilities $ 709,716 Contingencies Coronavirus (COVID-19) In January 2020, there was an outbreak of a novel strain of coronavirus (COVID-19) which has spread rapidly to many parts of China and other parts of the world, including the United States. The epidemic has resulted in quarantines, travel restrictions, and the temporary closure of stores and facilities in China, United States, and elsewhere around the world. Substantially all of the Company’s revenues are concentrated in China and the United States. Consequently, the COVID-19 outbreak has and may continue to materially adversely affect the Company’s business operations, financial condition and operating results for 2020, including but not limited to the material negative impact to the Company’s production and delivery, total revenues, slower collection of accounts receivables and additional allowance for doubtful accounts. The impact of COVID-19 led the Company to the second temporary closure of its offices beginning from July 16, 2020 and the Company has implemented work-from-home policy. Because of the uncertainty surrounding the COVID-19 outbreak, the financial impact cannot be reasonably estimated at this time. Our total revenues in July of 2020 were lower as compared to the same period of 2019. Although the Company expects to generate $920,000 of revenue before the end of August for an OEM order that is currently in process, there is no guarantee that its total revenues will grow or remain at a similar level year over year for the remainder of 2020.

Equity

Equity	6 Months Ended
Equity	Jun. 30, 2020
Equity
Note 10 - Equity	Private placements During the six months ended June 30, 2020, the Company entered into a series of Securities Purchase Agreements with various unrelated third party purchasers, pursuant to which the Company sold to these purchasers in private placements an aggregate of 162,000 shares of the Company’s common stock, par value $0.001 per share, at a purchase price of $1.00 per share for an aggregate offering price of $162,000. The sales were completed pursuant to the exemption from registration provided by Regulation S promulgated under the Securities Act of 1933, as amended As of June 30, 2020 and December 31, 2019, $1,110,695 and $1,140,695, respectively, were unpaid and recognized as stock subscription receivables in the accompanying statements of changes in shareholders’ deficit. During the six months ended June 30, 2020 and 2019, the Company received $50,000 and $89,305 of the stock subscription receivables, respectively. Settlement of debt On March 19, 2019, the Company entered into two Debt Repayment Agreements with two creditors of the Company (the “Creditors”), pursuant to which the Company agreed to repay $135,851 owed to the Creditors in the form of 295,480 shares of Company’s common stock at an average debt conversion rate of $0.46 per share (the “Debt Repayment”). The Debt Repayment was completed pursuant to the exemption from registration provided by Regulation S promulgated under the Securities Act of 1933, as amended. The closing price of the Company’s common stock on March 19, 2019 was $0.60 per share, which resulted in a loss on settlement of debt of $41,437. On March 30, 2019, the Company entered into four Debt Repayment Agreements with four creditors of the Company (the “Creditors”), pursuant to which the Company agreed to repay $868,682 owed to the Creditors in the form of 976,364 shares of Company’s common stock at an average debt conversion rate of $0.89 per share (the “Debt Repayment”). The Debt Repayment was completed pursuant to the exemption from registration provided by Regulation S promulgated under the Securities Act of 1933, as amended. The closing price of the Company’s common stock on March 30, 2019 was $0.60 per share, which resulted in a gain on settlement of debt of $282,863. Common stock issued for consulting services On August 30, 2018, the Company entered into two advisory agreements with two advisors (the “Financial Advisors”), pursuant to which the Company engaged the Financial Advisors to provide certain financial advisory services for a service period of six months. As compensation for the services, the Company agreed to issue the Financial Advisors an aggregate of 67,916 shares of its common stock, par value $0.001. These shares are valued at $20,375, determined using the closing price of the Company’s common stock on August 30, 2018 of $0.30 per share. For the three months ended June 30, 2020 and 2019, amortization of deferred stock compensation of these shares amounted to $0 and $0, respectively. For the six months ended June 30, 2020 and 2019, amortization of deferred stock compensation of these shares amounted to $0 and $6,792, respectively. On January 23, 2019, the Company entered into a consulting agreement with Redfield Management Service limited for business, finance and investor relations services. The consultant is due a monthly consulting fee of $7,000 and 50,000 shares, to be paid every three months. The term of the agreement was for one year. The service agreement was terminated at the end of April 2019 and the Company issued a total of 200,000 shares of its common stock. For the three months ended June 30, 2020 and 2019, amortization of deferred stock compensation of these shares amounted to $0 and $40,000, respectively. For the six months ended June 30, 2020 and 2019, amortization of deferred stock compensation of these shares amounted to $0 and $120,000, respectively. On March 13, 2019, the Company entered into a consulting agreement with Global Merchants Union (“GMU”), pursuant to which GMU was to provide business and financial operation and planning consultation services to the Company for consideration of $7,500 per month and a one-time stock payment of 1,000,000 shares of common stock of the Company (the “Share Payment”). Shares subject to the Share Payment were to be issued to GMU within 30 days after the agreement was signed. The term of the agreement was for one year but the cash consideration and payment obligation by the Company under this agreement was terminated in May 2019. For the three months ended June 30, 2020 and 2019, amortization of deferred compensation of these shares amounted to $0 and $150,000, respectively. For the six months ended June 30, 2020 and 2019, amortization of deferred compensation of these shares amounted to $125,000 and $175,000, respectively. Issuance of restricted common stock On July 13, 2018, the Board of Directors of the Company approved the grant of 2,300,000 restricted stock units (the “RSUs”) to three employees of the Company, pursuant to the Merion, Inc. 2018 Omnibus Equity Plan. Thirty percent of the RSUs vested on July 13, 2019, thirty percent of the RSUs will vest on July 13, 2020, and the remaining forty percent of the RSUs will vest on July 13, 2021, in each case provided that the employee remains employed, in good standing, by the Company. These shares were valued at $851,000, determined using the closing price of the Company’s common stock on July 13, 2018 of $0.37 per share, and are being amortized ratably over the term of the vesting periods of three years on a straight line basis. The Company accounts for the restricted common stock as equity-settled awards in accordance with ASC 718. For the three months ended June 30, 2020 and 2019, amortization of deferred stock compensation of these shares amounted to $63,650 and $63,650, respectively. For the six months ended June 30, 2020 and 2019, amortization of deferred stock compensation of these shares amounted to $127,300 and $126,601, respectively. Deferred stock compensation of $348,793 and $476,093 has been recognized as a reduction of shareholders’ deficit as the services have not been performed as of June 30, 2020 and December 31, 2019, respectively. The following table summarizes unvested restricted common stock activity for the six months ended June 30, 2020 and for the year ended December 31, 2019: Number of shares Weighted average grant-date fair value per share Outstanding as of December 31, 2018 2,300,000 $ 0.37 Granted - - Vested 690,000 - Forfeited - - Outstanding as of December 31, 2019 1,610,000 $ 0.37 Granted - - Vested - - Forfeited - - Outstanding as of June 30, 2020 1,610,000 $ 0.37

Subsequent Events

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2020
Subsequent Events
Note 11 - Subsequent Events	The Company evaluated all events and transactions that occurred after June 30, 2020 up through the date the Company issued these unaudited condensed financial statements on August 13, 2020. Small Business Administration (“SBA”) On July 17, 2020, the Company received a loan in the amount of $150,000 from the SBA EIDL program administered by the SBA pursuant to the CARES Act. In accordance with the requirements of the CARES Act, the Company will use proceeds from the SBA loans primarily for working capital to alleviate economic injury caused by the disaster occurring in the month of January 2020 and continuing thereafter. The SBA loans are scheduled to mature on July 17, 2050 and have a 3.75% interest rate and are subject to the terms and conditions applicable to loans administered by the SBA under the CARES Act. The monthly payable including principal and interest, of $731 commences on July 17, 2021, to be payable in 30 years from the date of July 17, 2020.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2020
Summary of Significant Accounting Policies (Policies)
Basis of Presentation	These unaudited condensed financial statements have been presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In the opinion of management, all adjustments consisting of normal recurring adjustments considered necessary for a fair presentation of the financial statements, have been included. Interim results are not necessarily indicative of results to be expected for the full year. The information included in this Form 10-Q should be read in conjunction with information included in the Company’s annual report on Form 10-K for the year ended December 31, 2019, filed with the Securities and Exchange Commission on April 8, 2020.
Use of Estimates	The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant accounting estimates reflected in the Company’s financial statements include the useful lives of property and equipment, the collectability of receivables and impairment on long-lived assets. The inputs into the Company’s judgments and estimates consider the economic implications of COVID-19 on the Company’s critical and significant accounting estimates. Actual results could differ from those estimates.
Cash and cash equivalents	The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are comprised primarily of money market accounts and foreign and domestic bank accounts. To reduce its credit risk, the Company monitors the credit standing of the financial institutions that hold the Company’s cash and cash equivalents.
Accounts Receivable	Trade accounts receivable are periodically evaluated for collectability based on credit history with customers and their current financial condition. Bad debt expense or write-offs of receivables are determined on the basis of loss experience, known and inherent risks in the receivable portfolio, and current economic conditions. The accounts receivable balance and allowance for doubtful accounts are as follows: June 30 , 2020 December 31, 2019 (Unaudited) Accounts receivable $ 99,199 $ 80,792 Allowance for doubtful accounts (67,676 ) (41,011 ) Accounts receivable, net $ 31,523 $ 39,781 Movement of the allowance for doubtful accounts is as follows: Six Months Ended June 30 , 2020 Year Ended December 31, 2019 (Unaudited) Beginning balance $ 41,011 $ - Provision for doubtful accounts 26,665 41,011 Less: write-offs - - Ending balance $ 67,676 $ 41,011
Inventories	Inventories are valued at the lower of cost (determined on a first-in, first-out basis) or net realizable value. Inventory consists of nutritional products, beauty products, and raw materials in our manufacturing facility. Management reviews inventory on hand for estimated obsolescence or unmarketable items, as compared to future demand requirements and the shelf life of the various products. Based on the review, the Company records inventory write-downs, when necessary, when costs exceed expected net realizable value. The inventories’ shelf lives are approximately 3 years. As of June 30, 2020 and December 31, 2019, there were no inventory obsolescence reserves or write-downs.
Property and Equipment, net	Property and equipment are stated at cost, net of accumulated depreciation. Upon disposition, the cost and related accumulated depreciation and amortization is removed from the books, and any resulting gain or loss is included in operations. The Company provides depreciation and amortization using the straight-line method over the estimated useful lives of various classes as follows: Machinery 10 years Computer and software 3 to 5 years Furniture and fixtures 5 to 10 years Vehicles 5 to 7 years Leasehold improvements over the lesser of the remaining lease term or the expected life of the improvement Repairs and maintenance are charged to operations when incurred while betterments and renewals are capitalized.
Operating Right-of-use Asset and Lease Liabilities	In February 2016, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02 “Leases (Topic 842).” The new standard requires lessees to recognize lease assets (“right of use”) and related lease obligations (“lease liabilities”) for leases previously classified as operating leases under generally accepted accounting principles on the balance sheet for leases with terms in excess of 12 months. The standard is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted this standard as of January 1, 2019 utilizing the practical expedients approach.
Impairment of Long-Lived Assets	Long-lived assets, including property, equipment and intangible assets with finite lives, are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognizes an impairment loss when estimated discounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When the Company identifies an impairment, the Company reduces the carrying amount of the asset to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, to comparable market values. Management reviewed the potential impact of COVID-19 and the related disruptions on the Company’s operating results, and based upon potential orders believes that currently there was no impairment during the six months ended June 30, 2020.
Deferred Revenue	Deferred revenue represents product deposits advanced by customers on specified product orders or on future orders that have not been shipped as of the balance sheet date. Deferred revenue also represents shipping fee deposits advanced by customers in relation to the unshipped product orders. Deferred revenue is reduced when the related sale is recognized in accordance with the Company’s revenue recognition policy.
Fair Value of Financial Instruments	The FASB accounting standards codification (“ASC”), FASB ASC 825 Financial Instruments As defined in ASC 820 Fair Value Measurement The three levels of the fair value hierarchy are as follows: Level 1 – Quoted prices that are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 – Pricing inputs, other than quoted prices in active markets included in level 1, which are either directly or indirectly observable as of the reporting date and includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value.
Revenue Recognition	The Company’s revenue is recognized based on the amount of consideration the Company expects to receive in exchange for satisfying the performance obligations in accordance with ASC 606 Revenue from Contracts with Customers The core principle underlying the revenue recognition is that the Company will recognize revenue to represent the transfer of goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. This will require the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. The Company’s revenue streams are recognized at a point in time, based on when control of goods and services transfers to a customer and there are no remaining performance obligations under the contract. ASC 606 requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies each performance obligation. The Company accounts for a contract with a customer when the contract is committed in writing, the rights of the parties, including payment terms, are identified, the contract has commercial substance and consideration is probable of collection. The Company derives its revenues from sales contracts with its customers with revenues being recognized upon delivery of products. Persuasive evidence of an arrangement is demonstrated via sales contracts and invoices; and the sales price to the customer is fixed upon acceptance of the sales contract. Sales rebates or discounts are recognized as a reduction of revenue when the sale is made. The Company recognizes revenue when control of the goods is transferred upon shipment to the customer by the Company and collectability of payment is reasonably assured. These revenues are recognized at a point in time after all performance obligations are satisfied. The Company also recognizes revenue on shipping and handling fees charged to the Company’s customers. Shipping and handling fee revenue is recognized when products have been delivered at a point in time. Shipping and handling fee revenues totaled $198 and $23,615 for the three months ended June 30, 2020 and 2019, respectively, and totaled $897 and $26,424 for the six months ended June 30, 2020 and 2019, respectively. Product returns are allowed for unopened products purchased under regular sales terms within 60 days. Allowances for product returns are provided at the time the sale is recorded using historic return rates for each country and the relevant return pattern. Historically the Company has a return rate of nearly zero. Accordingly, the allowance as of June 30, 2020 and December 31, 2019 is estimated at $0. In addition to the Company’s 60-day return policy, the Company, at its discretion, may accept a customer’s application for a buy-back of products previously sold within one year at 90% of the original product’s cost less commissions and shipping costs. To date, the Company has not received any buy-back applications. As a result, no allowance for buy-backs had been recorded as of June 30, 2020 and December 31, 2019. The majority of the Company’s product sales are generated from China and all of the Company’s OEM and packaging sales are generated from the United States. While all products are priced in U.S. currency, the Company accepts payments in both U.S. dollars and Hong Kong dollars.
Shipping and Handling Expenses	Shipping and handling costs incurred by the Company are included in selling expenses and totaled $2,691 and $9,261 for the three months ended June 30, 2020 and 2019, respectively, and totaled $6,157 and $19,963 for the six months ended June 30, 2020 and 2019, respectively.
Income Taxes	The Company utilizes ASC 740 Income Taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Deferred taxes are also recognized for net operating losses that can be carried forward. A valuation allowance is established, when necessary, to reduce net deferred tax assets to the amount expected to be realized.
Basic and Diluted Earnings (Loss) Per Share	Generally accepted accounting principles regarding earnings per share (“EPS”) require presentation of basic and diluted earnings (loss) per share in conjunction with the disclosure of the methodology used in computing such earnings (loss) per share. Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average of common shares outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. These common stock equivalents are not included when the Company has a loss because they would be anti-dilutive. 2,300,000 shares of restricted common stock are excluded in the diluted EPS calculation for the three and six months ended June 30, 2020, due to its anti-dilutive nature. There were no other potential dilutive securities outstanding for the three and six months ended June 30, 2020 and 2019.
Concentration of Credit Risk	Financial instruments Financial instruments that potentially subject the Company to concentrations of credit risk are cash and accounts receivable arising from its normal business activities. The Company maintains balances at financial institutions which, from time to time, may exceed Federal Deposit Insurance Corporation (FDIC) insured limits for the banks located in the United States, or may exceed Hong Kong Deposit Protection Board (HKDPB) insured limits for the banks located in Hong Kong. The Company had no uninsured balances as of June 30, 2020 and December 31, 2019. Major Customers and Suppliers For the three months ended June 30, 2020, three customers accounted for approximately 82% (61%, 11% and 10%) of the Company’s sales and for the three months ended June 30, 2019, no customer accounted for more than 10% of the Company’s sales. For the six months ended June 30, 2020, three customers accounted for approximately 56% (20%, 19% and 17%) of the Company’s sales and for the six months ended June 30, 2019, no customer accounted for more than 10% of the Company’s sales. As of June 30, 2020, two customers accounted for approximately 73% (55% and 18%) of the Company’s accounts receivable. As of December 31, 2019, three customers accounted for approximately 88% (67%, 11% and 10%) of the Company’s accounts receivable. For the three months ended June 30, 2020, four suppliers accounted for 75% (27%, 22%, 14%, and 12%) of the Company’s product purchases and for the three months ended June 30, 2019, two suppliers accounted for approximately 81% (64% and 17%) of the Company’s product purchases. For the six months ended June 30, 2020, four suppliers accounted for 74% (27%, 21%, 14%, and 12%) of the Company’s product purchases and for the six months ended June 30, 2019, four suppliers accounted for approximately 69% (23%, 19%, 17% and 10%) of the Company’s product purchases.
Risk and Uncertainties	In March 2020, the World Health Organization declared the COVID-19 as a pandemic. Given the rapidly expanding nature of the COVID-19 pandemic, and because substantially all of the Company’s business operations and its major customers are concentrated in China and United States, its business, results of operations, and financial condition could be materially adversely affected for the rest of fiscal year 2020 and beyond. Our total revenues in July of 2020 were lower as compared to the same period of 2019. Although the Company expects to generate $920,000 of revenues before the end of August for an OEM order that is currently in process, there is no guarantee that our total revenues will grow or remain at a similar level year over year for the remainder of 2020.
Related Parties	A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party.
New Accounting Pronouncements	In May 2019, the FASB issued ASU 2019-05, which is an update to ASU Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The amendments in Update 2016-13 added Topic 326, Financial Instruments—Credit Losses, and made several consequential amendments to the Codification. Update 2016-13 also modified the accounting for available-for-sale debt securities, which must be individually assessed for credit losses when fair value is less than the amortized cost basis, in accordance with Subtopic 326-30, Financial Instruments— Credit Losses—Available-for-Sale Debt Securities. The amendments in this update address those stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. In November 2019, the FASB issued ASU No. 2019-10, which to update the effective date of ASU No. 2016-13 for private companies, not-for-profit organizations and certain smaller reporting companies applying for credit losses standard. The new effective date for these preparers is for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company has not early adopted this update and it will become effective on January 1, 2023 assuming the Company will remain eligible to be smaller reporting company. The Company is currently evaluating the impact of this new standard on Company’s unaudited condensed financial statements and related disclosures. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”. The amendments in this Update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 is effective for the Company for annual and interim reporting periods beginning January 1, 2021. Early adoption of the amendments is permitted, including adoption in any interim period for public business entities for periods for which financial statements have not yet been issued. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. The Company is currently evaluating the impact of this new standard on Company’s unaudited condensed financial statements and related disclosures The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s unaudited condensed financial statements.
Reclassifications	Certain prior period amounts have been reclassified to conform to the current year presentation. These reclassifications have no effect on the accompanying statements of operations and cash flows.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
Summary of Significant Accounting Policies (Tables)	Jun. 30, 2020
Summary of Significant Accounting Policies (Policies)
Accounts receivable balance and allowance for doubtful accounts	June 30 , 2020 December 31, 2019 (Unaudited) Accounts receivable $ 99,199 $ 80,792 Allowance for doubtful accounts (67,676 ) (41,011 ) Accounts receivable, net $ 31,523 $ 39,781
Schedule of Movement of the allowance for doubtful accounts	Six Months Ended June 30, 2020 Year Ended December 31, 2019 (Unaudited) Beginning balance $ 41,011 $ - Provision for doubtful accounts 26,665 41,011 Less: write-offs - - Ending balance $ 67,676 $ 41,011
Summary of estimated useful lives	Machinery 10 years Computer and software 3 to 5 years Furniture and fixtures 5 to 10 years Vehicles 5 to 7 years Leasehold improvements over the lesser of the remaining lease term or the expected life of the improvement

Inventories (Tables)

Inventories (Tables)	6 Months Ended
Inventories (Tables)	Jun. 30, 2020
Inventories
Inventories	June 30 , 2020 December 31, 2019 (Unaudited) Raw materials $ 99,260 $ 101,102 Work-in-progress 16,976 6,776 Finished goods 34,678 57,866 Inventories $ 150,914 $ 165,744

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
Property and Equipment (Tables)	Jun. 30, 2020
Property and Equipment
Property and Equipment	June 30 , 2020 December 31, 2019 (Unaudited) Computer equipment and software $ 114,953 $ 114,953 Furniture and fixtures 26,686 26,686 Automobiles 123,902 179,677 Leasehold improvements 40,053 40,053 Machinery 420,000 420,000 Total 725,594 781,369 Less: accumulated depreciation and amortization (293,575 ) (445,369 ) Property and equipment, net $ 432,019 $ 336,000

Debt (Tables)

Debt (Tables)	6 Months Ended
Debt (Tables)	Jun. 30, 2020
Debt
Schedule of long term debt	Twelve months ended June 30 , Amount (Unaudited) 2021 $ 16,250 2022 17,004 2023 17,795 2024 18,621 2025 19,487 Thereafter 13,491 Total long-term debt payment 102,648 Current portion of long-term debt (16,250 ) Long term debt $ 86,398

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
Income Taxes (Tables)	Jun. 30, 2020
Income Taxes
Reconciliation of statutory tax rate	Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 Six Month Ended June 30, 2020 Six Months Ended June 30, 2019 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Federal statutory rate 21.0 % 21.0 % 21.0 % 21.0 % State statutory rate 7.0 % 7.0 % 7.0 % 7.0 % Valuation allowance (24.0 )% (37.7 )% (20.9 )% (51.0 )% Permanent difference * (4.0 )% 9.7 % (7.1 )% 23.0 % Effective tax rate 0.0 % 0.0 % 0.0 % 0.0 %
Schedule of deferred tax assets	June 30, 2020 December 31, 2019 (Unaudited) Allowance for doubtful accounts $ 18,938 $ 11,476 Amortization of intangible assets 188,889 196,445 Net operating losses 2,345,956 2,125,102 Total deferred tax assets 2,553,783 2,333,023 Valuation allowance (2,553,783 ) (2,333,023 ) Deferred tax assets, net $ - $ -

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
Commitments and Contingencies (Tables)	Jun. 30, 2020
Commitments and Contingencies
Summary of lease obligations	Twelve months ended June 30, Operating lease amount (Unaudited) 2021 $ 220,073 2022 240,844 2023 211,731 2024 98,624 Total lease payments 771,272 Less: interest (61,556 ) Present value of lease liabilities $ 709,716

Equity (Tables)

Equity (Tables)	6 Months Ended
Equity (Tables)	Jun. 30, 2020
Equity
Summary of unvested restricted common stock activity	Number of shares Weighted average grant-date fair value per share Outstanding as of December 31, 2018 2,300,000 $ 0.37 Granted - - Vested 690,000 - Forfeited - - Outstanding as of December 31, 2019 1,610,000 $ 0.37 Granted - - Vested - - Forfeited - - Outstanding as of June 30, 2020 1,610,000 $ 0.37

Organization (Details Narrative

Organization (Details Narrative) - Merger agreement [Member] - E-World USA Holdings, Inc. [Member]	1 Months Ended
	Apr. 30, 2011shares
Common stock issued at merger agreement	90,000,000
Common stock issued at merger agreement, description	One for one basis for each share of E-World CA’s common stock issued and outstanding at the date of the merger.

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Summary of Significant Accounting Policies (Policies)
Accounts receivable	$ 99,199	$ 80,792
Allowance for doubtful accounts	(67,676)	(41,011)
Accounts receivable, net	$ 31,523	$ 39,781

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details 1) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Summary of Significant Accounting Policies (Policies)
Beginning balance	$ 41,011	$ 0
Provision for doubtful accounts	26,665	41,011
Less: write-offs	0	0
Ending balance	$ 67,676	$ 41,011

Summary of Significant Accoun_6

Summary of Significant Accounting Policies (Details 2)	6 Months Ended
Summary of Significant Accounting Policies (Details 2)	Jun. 30, 2020
Machinery [Member]
Estimated useful lives	10 years
Computer and software [Member] \| Minimum [Member]
Estimated useful lives	3 years
Computer and software [Member] \| Maximum [Member]
Estimated useful lives	5 years
Furniture and fixtures [Member] \| Minimum [Member]
Estimated useful lives	5 years
Furniture and fixtures [Member] \| Maximum [Member]
Estimated useful lives	10 years
Vehicles [Member] \| Minimum [Member]
Estimated useful lives	5 years
Vehicles [Member] \| Maximum [Member]
Estimated useful lives	7 years
Leasehold improvement [Member]
Estimated useful lives for leasehold improvement	over the lesser of the remaining lease term or the expected life of the improvement

Summary of Significant Accoun_7

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Aug. 31, 2020	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Product return allowance		$ 0		$ 0		$ 0
Shipping and handling fee revenues		198	$ 23,615	$ 897	$ 26,424
Product warranty description				In addition to the Company’s 60-day return policy, the Company, at its discretion, may accept a customer’s application for a buy-back of products previously sold within one year at 90% of the original product’s cost less commissions and shipping costs
Shipping and handling costs		$ 2,691	$ 9,261	$ 6,157	$ 19,963
Product sales		82.00%		56.00%
Accounts receivable				73.00%		88.00%
Description of sales			No customer accounted for more than 10% of the Company’s sales.
Product purchases		75.00%	81.00%	74.00%	69.00%
Expected revenue	$ 920,000
One Supplier [Member]
Product purchases		27.00%	64.00%	27.00%	23.00%
Two Supplier [Member]
Product purchases		22.00%	17.00%	21.00%	19.00%
Three Supplier [Member]
Product purchases		14.00%		14.00%	17.00%
Four Supplier [Member]
Product purchases		12.00%		12.00%	10.00%
One Customer [Member]
Product sales		61.00%		20.00%
Accounts receivable				55.00%		67.00%
Description of sales					No customer accounted for more than 10% of the Company’s sales.
Two Customer [Member]
Product sales		11.00%		19.00%
Accounts receivable				18.00%		11.00%
Description of sales					No customer accounted for more than 10% of the Company’s sales.
Three Customer [Member]
Product sales		10.00%		17.00%
Accounts receivable						10.00%
Description of sales					No customer accounted for more than 10% of the Company’s sales.
Restricted Common Stock [Member]
Anti-dilutive securities excluded from computation of EPS		2,300,000		2,300,000

Inventories (Details)

Inventories (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Inventories
Raw materials	$ 99,260	$ 101,102
Work-in-progress	16,976	6,776
Finished goods	34,678	57,866
Inventories	$ 150,914	$ 165,744

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Property and equipment, gross	$ 725,594	$ 781,369
Less: accumulated depreciation and amortization	(293,575)	(445,369)
Property and equipment, net	432,019	336,000
Computer equipment and software [Member]
Property and equipment, gross	114,953	114,953
Furniture and fixtures [Member]
Property and equipment, gross	26,686	26,686
Automobiles [Member]
Property and equipment, gross	123,902	179,677
Leasehold improvement [Member]
Property and equipment, gross	40,053	40,053
Machinery [Member]
Property and equipment, gross	$ 420,000	$ 420,000

Property and Equipment (Detai_2

Property and Equipment (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
Property and Equipment (Details Narrative) - USD ($)	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Property and Equipment
Depreciation expense	$ 15,662	$ 16,150	$ 27,883	$ 33,361

Debt (Details)

Debt (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Debt
2021	$ 16,250
2022	17,004
2023	17,795
2024	18,621
2025	19,487
Thereafter	13,491
Total long-term debt payment	102,648
Current portion of long-term debt	(16,250)
Long term debt	$ 86,398	$ 0

Debt (Details Narrative)

Debt (Details Narrative) - USD ($)	1 Months Ended		3 Months Ended		6 Months Ended
Debt (Details Narrative) - USD ($)	Apr. 17, 2020	Mar. 31, 2020	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Apr. 28, 2020	Dec. 31, 2019
Interest expense			$ 37,198	$ 299	$ 74,396	$ 1,722
Loan due within one year			16,250		16,250
Due to third parties, interest bearing			20,000		20,000			$ 20,000
Due to third parties, non-interest bearing			$ 60,000		$ 60,000			50,000
Third party borrowing non interest bearing [Member]
Maturity date			Mar. 30, 2024
Third party borrowing interest bearing [Member]
Interest rate			10.00%	6.00%	10.00%	6.00%
Maturity date			Mar. 30, 2024
Third party borrowing One [Member]
Due to third parties, interest bearing			$ 1,500,000		$ 1,500,000			1,500,000
Description of due to third party, interest bearing			The Company owed $1,500,000 to these third parties, among which, $20,000 are due on March 20, 2024.
Due to third parties, non-interest bearing			$ 110,000		110,000			$ 100,000
Description of due to third parties, non-interest bearing			The Company owed $110,000 and $100,000 to these third parties, respectively, of which, $50,000 is due on March 20, 2024
Vehicles [Member]
Interest expense			$ 1,198		1,607
Long term loan			$ 124,000		$ 124,000
Loan term		6 years
Periodic payment, monthly		$ 1,715
Interest rate			4.56%		4.56%
Periodic payment term		From March 2020 to February 2026
Proceeds from sale of assets		$ 16,000
Loan outstanding			$ 102,648		$ 102,648
Loan due within one year			16,250		16,250
Paycheck Protection Program ("PPP") [Member]
Proceeds from loan	$ 131,100
Advance received							$ 10,000
Description of loan forgiveness	The amount of loan forgiveness will be further reduced if the borrower terminates employees or reduces salaries during the eight-week period by more than 25%.
Loan forgiveness, amount	$ 121,100
Loan payable			10,000		10,000
Interest expense			$ 20		$ 20

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
Related Party Transactions (Details Narrative) - USD ($)	Jul. 31, 2016	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Jan. 31, 2016
Due to employee		$ 95,000		$ 95,000		$ 95,000
Proceeds from related party debt				11,604	$ 142,860
Chief Executive Officer [Member]
Interest expense		748	$ 748	1,496	1,488
Interest rate	10.00%
Maturity date	Mar. 20, 2024
Due to shareholder, interest bearing		$ 30,000		30,000		30,000
Proceeds from related party debt	$ 30,000
Chief Executive Officer [Member] \| Unsecured loan [Member]
Loan extension description		2,000,000 is due on March 20, 2024. This balance is unsecured and is due on demand.
Due to shareholder, non-interest bearing		$ 2,439,024		2,439,024		2,438,055
Advances from shareholder, non-interest bearing				11,604	142,860
Repayment of shareholder loan, non-interest bearing				10,635	62,048
Due to shareholder, interest bearing [Member] \| Chief Executive Officer [Member]
Loan extension description		The full balance of $471,603 was repaid in October 2019.
Interest expense		$ 0	$ 12,487	0	$ 24,975
Interest rate							9.99%
Advances from Related Parties Non-Interest Bearing [Member] \| CEO's immediate family members [Member]
Maturity date		Mar. 20, 2024
Due to shareholder, non-interest bearing		$ 518,839		$ 518,839		$ 518,839

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		6 Months Ended
Income Taxes (Details)	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Taxes
Federal statutory rate	21.00%	21.00%	21.00%	21.00%
State statutory rate	7.00%	7.00%	7.00%	7.00%
Valuation allowance	(24.00%)	(37.70%)	(20.90%)	(51.00%)
Permanent difference	(4.00%)	9.70%	(7.10%)	23.00%
Effective tax rate	0.00%	0.00%	0.00%	0.00%

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Income Taxes
Allowance for doubtful accounts	$ 18,938	$ 11,476
Amortization of intangible assets	188,889	196,445
Net operating losses	2,345,956	2,125,102
Total deferred tax assets	2,553,783	2,333,023
Valuation allowance	(2,553,783)	(2,333,023)
Deferred tax assets, net	$ 0	$ 0

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	6 Months Ended
Income Taxes (Details Narrative) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Cumulative net operating loss carry-forward expiring	Net operating loss for the years ended 2017 through 2019 will not expire but limited to 80% of income until utilized. Net operating loss for the years ended 2016 and prior will expire in the years 2031 to 2036
Deferred tax assets, valuation allowance percentage	100.00%
Deferred tax assets	$ 2,553,783	$ 2,333,023
Change in valuation allowance		220,760
Federal and State [Member]
Cumulative net operating loss carry-forward	$ 9,100,000	$ 8,300,000

Commitments and Contingencies_2

Commitments and Contingencies (Details)	Jun. 30, 2020USD ($)
Twelve months ended March 31,
2021	$ 220,073
2022	240,844
2023	211,731
2024	98,624
Total lease payments	771,272
Less: interest	(61,556)
Present value of lease liabilities	$ 709,716

Commitments and Contingencies_3

Commitments and Contingencies (Details Narrative) - USD ($)	1 Months Ended			3 Months Ended		6 Months Ended
Commitments and Contingencies (Details Narrative) - USD ($)	Aug. 31, 2020	Mar. 31, 2020	Jan. 31, 2019	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Commitments and Contingencies
Operating lease, lease term		3 years	5 years
Operating lease labilities			$ 618,000	$ 279,000		$ 279,000
Effective interest rate			4.78%	4.78%		4.78%
Operating lease, remaining term			3 years 8 months 1 day			2 years 8 months 1 day
Lease expenses				$ 70,286	$ 45,287	$ 123,906	$ 67,382
Expected revenue	$ 920,000
Short-term lease expenses				$ 10,500	$ 10,500	$ 21,000	$ 21,000

Equity (Details)

Equity (Details) - Restricted Common Stock [Member] - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Number of shares, outstanding, beginning	1,610,000	2,300,000
Number of shares, Granted	0	0
Number of shares, Vested	0	690,000
Number of shares, Forfeited	0	0
Number of shares, outstanding, ending	1,610,000	1,610,000
Weighted average grant date fair value per share, beginning	$ 0.37	$ 0.37
Weighted average grant date fair value per share, Granted	0	0
Weighted average grant date fair value per share, Vested	0	0
Weighted average grant date fair value per share, Forfeited	0	0
Weighted average grant date fair value per share, ending	$ 0.37	$ 0.37

Equity (Details Narrative)

Equity (Details Narrative) - USD ($)	Mar. 13, 2019	Jul. 13, 2018	Mar. 30, 2019	Mar. 19, 2019	Jan. 23, 2019	Aug. 30, 2018	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Stock subscription receivable							$ 1,110,695		$ 1,110,695		$ 1,140,695
Stock subscription received									50,000	$ 89,305
Amortization of deferred stock compensation							$ 0	$ 40,000	0	120,000
Stock compensation expense									$ 252,300	428,392
Common stock, shares issued							177,566,608		177,566,608		177,404,608
Financial Advisor [Member]
Stock compensation expense							$ 0	0	$ 0	6,792
Common stock issued on consulting services, value						$ 20,375
Common stock shares issuable under agreement						67,916
Common stock shares issuable under agreement, par value						$ 0.001
Closing price of common stock						$ 0.30
Debt Repayment Agreement [Member] \| Two Creditors [Member]
Issuance of common stock for debt settlement, Shares				295,480
Debt conversion price				$ 0.46
Issuance of common stock for debt settlement, Amount				$ 135,851
Loss on debt extinguishment				$ 41,437
Purchase price per share				$ 0.60
Debt Repayment Agreement [Member] \| Four Creditors [Member]
Issuance of common stock for debt settlement, Shares			976,364
Debt conversion price			$ 0.89
Issuance of common stock for debt settlement, Amount			$ 868,682
Loss on debt extinguishment			$ 282,863
Purchase price per share			$ 0.60
Omnibus Equity Plan [Member] \| Restricted Stock [Member]
Amortization of deferred stock compensation							$ 63,650	63,650	127,300	126,601
Purchase price per share		$ 0.37
Reduction of shareholders deficit									$ 348,793	476,093
Common stock, shares sold, value		851,000
Common stock, shares issued		2,300,000
Securities Purchase Agreement [Member] \| Private Placement [Member]
Purchase price per share							$ 1		$ 1
Common stock, shares sold, value									162,000
Aggregate offering price									$ 162,000
Common stock, par value							$ 0.001		$ 0.001
Consulting Agreement [Member] \| Global Merchants Union [Member]
Amortization of deferred stock compensation							$ 0	$ 150,000	$ 125,000	175,000
Common stock, shares issued	1,000,000
Monthly consulting fee	$ 7,500
Term of agreement	The term of the agreement was for one year but was terminated in May, 2019.
Consulting Agreement [Member] \| Redfield Management Service limited [Member]
Amortization of deferred stock compensation									$ 0	$ 80,000
Monthly consulting fee					$ 7,000
Term of agreement					The term of the agreement is one year.
Common stock issued on consulting services, shares					50,000
Service agreement description					The service agreement was terminated at the end of April 2019 and the Company issued a total of 200,000 shares of its common stock

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - Subsequent Event [Member] - Small Business Administration [Member]	1 Months Ended
	Jul. 17, 2020USD ($)
Proceeds from loan	$ 150,000
Interest rate	3.75%
Monthly payable including principal and interest	$ 731
Term of loan	30 years