Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 01, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-55053 | |
Entity Registrant Name | LEET TECHNOLOGY INC. | |
Entity Central Index Key | 0001586495 | |
Entity Tax Identification Number | 46-3590850 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 805, 8th Floor | |
Entity Address, Address Line Two | Menara Mutiara Majestic | |
Entity Address, Address Line Three | Jalan Othman, Petaling Jaya | |
Entity Address, City or Town | Selangor | |
Entity Address, Country | MY | |
Entity Address, Postal Zip Code | 46000 | |
City Area Code | 603 | |
Local Phone Number | 7783 1636 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Bankruptcy Proceedings, Reporting Current | true | |
Entity Common Stock, Shares Outstanding | 152,899,640 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Current asset: | ||
Cash and cash equivalents | $ 18,958 | $ 38,985 |
Accounts receivable | 171,769 | 20,630 |
Deposit and other receivables | 11,051 | 2,897 |
Right of use assets | 9,288 | 0 |
Total current assets | 211,066 | 62,512 |
Non-current asset: | ||
Plant and equipment, net | 147,241 | 8,034 |
Intangible assets | 403,328 | 540,126 |
Right of use assets | 0 | 3,018 |
TOTAL ASSETS | 761,635 | 613,690 |
Current liabilities: | ||
Accounts payable | 537,741 | 540,126 |
Accrued liabilities and other payables | 453,522 | 366,331 |
Amounts due to related parties | 3,306,447 | 2,234,433 |
Operating lease liabilities | 6,313 | 3,075 |
Total current liabilities | 4,304,023 | 3,143,965 |
Non-current liabilities | ||
Operating lease liabilities | 2,959 | 0 |
TOTAL LIABILITIES | 4,306,982 | 3,143,965 |
Commitments and contingencies | ||
STOCKHOLDERS’ DEFICIT | ||
Preferred stock, Series A, $0.001 par value, 20,000,000 shares authorized, 1,000,000 issued and outstanding as of September 30, 2021 and December 31, 2020 | 1,000 | 1,000 |
Common stock, $0.0001 par value; 10,000,000,000 shares authorized; 151,896,262 and 140,397,289 shares issued and outstanding as of September 30, 2021 and December 31, 2020 | 15,190 | 14,040 |
Additional paid-in capital | 2,761,862 | 9,000 |
Accumulated other comprehensive loss | (33,842) | (76,196) |
Accumulated deficit | (6,289,557) | (2,478,119) |
Total stockholders’ deficit | (3,545,347) | (2,530,275) |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | $ 761,635 | $ 613,690 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 1,000,000 | 1,000,000 |
Preferred stock, shares outstanding | 1,000,000 | 1,000,000 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 10,000,000,000 | 10,000,000,000 |
Common stock, shares issued | 151,896,262 | 140,397,289 |
Common stock, shares outstanding | 151,896,262 | 140,397,289 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenue, net | $ 75,051 | $ 17,387 | $ 203,539 | $ 64,464 |
Operating expenses: | ||||
IT operating expenses | (161,001) | (26,221) | (365,551) | (102,472) |
Research and development | (9,087) | (26,975) | (27,219) | (26,975) |
Stock based compensation | (2,754,012) | 0 | (2,754,012) | 0 |
General and administrative expenses | (358,698) | (82,059) | (869,291) | (278,158) |
Total operating expenses | (3,282,798) | (135,255) | (4,016,073) | (407,605) |
Loss from operations | (3,207,747) | (117,868) | (3,812,534) | (343,141) |
Other income: | ||||
Sundry income | 564 | 5,211 | 1,096 | 15,257 |
LOSS BEFORE INCOME TAXES | (3,207,183) | (112,657) | (3,811,438) | (327,884) |
Income tax expense | 0 | 0 | 0 | 0 |
NET LOSS | (3,207,183) | (112,657) | (3,811,438) | (327,884) |
Other comprehensive loss: | ||||
Foreign currency translation income (loss) | 12,030 | (20,629) | 42,354 | (6,832) |
COMPREHENSIVE LOSS | $ (3,195,153) | $ (133,286) | $ (3,769,084) | $ (334,716) |
Loss per share | ||||
- Basic and diluted | $ (0.02) | $ (0.01) | $ (0.03) | $ (0.03) |
Weighted average common shares outstanding | ||||
- Basic | 144,881,810 | 10,000,000 | 141,908,556 | 10,000,000 |
- Diluted | 145,881,810 | 10,000,000 | 142,908,556 | 10,000,000 |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (3,811,438) | $ (327,884) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization | 148,637 | 3,100 |
Stock based compensation | 2,754,012 | 0 |
Change in operating assets and liabilities: | ||
Accounts receivable | (152,081) | 65,749 |
Deposit and other receivables | (8,364) | 26,831 |
Accounts payable | (30) | 33,289 |
Accrued liabilities and other payables | 101,308 | 8,873 |
Operating lease liabilities | (71) | (32) |
Net cash used in operating activities | (968,027) | (190,074) |
Cash flows from investing activities: | ||
Purchase of plant and equipment | (153,760) | (2,286) |
Net cash used in investing activities | (153,760) | (2,286) |
Cash flows from financing activities: | ||
Advances from related parties | 1,093,456 | 252,234 |
Net cash provided by financing activities | 1,093,456 | 252,234 |
Effect of exchange rate on cash and cash equivalents | 8,304 | (96,818) |
Net change in cash and cash equivalents | (20,027) | (36,944) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 38,985 | 42,526 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 18,958 | 5,582 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash paid for tax | 0 | 0 |
Cash paid for interest | $ 0 | $ 0 |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S DEFICIT - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2019 | $ 10,000,000 | $ (21,113) | $ (1,618,839) | $ (1,638,952) | ||
Beginning Balance, shares at Dec. 31, 2019 | 1,000 | |||||
Foreign currency translation adjustment | ||||||
Net loss for the period | (114,478) | (114,478) | ||||
Ending balance, value at Mar. 31, 2020 | $ 10,000,000 | (21,113) | (1,733,317) | (1,753,430) | ||
Ending Balance, shares at Mar. 31, 2020 | 1,000 | |||||
Beginning balance, value at Dec. 31, 2019 | $ 10,000,000 | (21,113) | (1,618,839) | (1,638,952) | ||
Beginning Balance, shares at Dec. 31, 2019 | 1,000 | |||||
Net loss for the period | (327,884) | |||||
Ending balance, value at Sep. 30, 2020 | $ 1,000,000 | (27,945) | (1,946,723) | (1,973,668) | ||
Ending Balance, shares at Sep. 30, 2020 | 1,000 | |||||
Beginning balance, value at Mar. 31, 2020 | $ 10,000,000 | (21,113) | (1,733,317) | (1,753,430) | ||
Beginning Balance, shares at Mar. 31, 2020 | 1,000 | |||||
Foreign currency translation adjustment | 13,797 | 13,797 | ||||
Net loss for the period | (100,749) | (100,749) | ||||
Ending balance, value at Jun. 30, 2020 | $ 1,000,000 | (7,316) | (1,834,066) | (1,840,382) | ||
Ending Balance, shares at Jun. 30, 2020 | 1,000 | |||||
Foreign currency translation adjustment | (20,629) | (20,629) | ||||
Net loss for the period | (112,657) | (112,657) | ||||
Ending balance, value at Sep. 30, 2020 | $ 1,000,000 | (27,945) | (1,946,723) | (1,973,668) | ||
Ending Balance, shares at Sep. 30, 2020 | 1,000 | |||||
Beginning balance, value at Dec. 31, 2020 | $ 1,000,000 | $ 140,397,289 | 9,000 | (76,196) | (2,478,119) | (2,530,275) |
Beginning Balance, shares at Dec. 31, 2020 | 1,000 | 14,040 | ||||
Foreign currency translation adjustment | 35,050 | 35,050 | ||||
Net loss for the period | (306,002) | (306,002) | ||||
Ending balance, value at Mar. 31, 2021 | $ 1,000,000 | $ 140,397,289 | 9,000 | (41,146) | (2,784,121) | (2,801,227) |
Ending Balance, shares at Mar. 31, 2021 | 1,000 | 14,040 | ||||
Beginning balance, value at Dec. 31, 2020 | $ 1,000,000 | $ 140,397,289 | 9,000 | (76,196) | (2,478,119) | (2,530,275) |
Beginning Balance, shares at Dec. 31, 2020 | 1,000 | 14,040 | ||||
Net loss for the period | (3,811,438) | |||||
Ending balance, value at Sep. 30, 2021 | $ 1,000,000 | $ 151,896,262 | 2,761,862 | (33,842) | (6,289,557) | (3,545,347) |
Ending Balance, shares at Sep. 30, 2021 | 1,000 | 15,190 | ||||
Beginning balance, value at Mar. 31, 2021 | $ 1,000,000 | $ 140,397,289 | 9,000 | (41,146) | (2,784,121) | (2,801,227) |
Beginning Balance, shares at Mar. 31, 2021 | 1,000 | 14,040 | ||||
Foreign currency translation adjustment | (4,726) | (4,726) | ||||
Net loss for the period | (298,253) | (298,253) | ||||
Ending balance, value at Jun. 30, 2021 | $ 1,000,000 | $ 140,397,289 | 9,000 | (45,872) | (3,082,374) | (3,104,206) |
Ending Balance, shares at Jun. 30, 2021 | 1,000 | 14,040 | ||||
Shares issued for services | $ 1,403,973 | 392,972 | 393,112 | |||
Shares issued for services, shares | 140 | |||||
Shares issued for employees compensation | $ 10,095,000 | 2,359,890 | 2,360,900 | |||
Shares issued for employees compensation, shares | 1,010 | |||||
Foreign currency translation adjustment | 12,030 | 12,030 | ||||
Net loss for the period | (3,207,183) | (3,207,183) | ||||
Ending balance, value at Sep. 30, 2021 | $ 1,000,000 | $ 151,896,262 | $ 2,761,862 | $ (33,842) | $ (6,289,557) | $ (3,545,347) |
Ending Balance, shares at Sep. 30, 2021 | 1,000 | 15,190 |
DESCRIPTION OF BUSINESS AND ORG
DESCRIPTION OF BUSINESS AND ORGANIZATION | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND ORGANIZATION | 1. DESCRIPTION OF BUSINESS AND ORGANIZATION Leet Technology Inc. (Formerly Blow & Drive Interlock Corporation, “the Company” or “LTES”) was incorporated on July 2, 2013 under the laws of the State of Delaware. The Company currently operates an eSports platform in Malaysia. On August 23, 2021, the Company was approved to change its current name to Leet Technology Inc. and the trading symbol of LTES. Description of subsidiaries Schedule of description of subsidiaries Name Place of incorporation and kind of legal entity Principal activities Particulars of registered/ paid up share capital Effective interest held Leet Technology Limited Labuan, Malaysia Investment holding 10,000 ordinary shares at par value of US$1 100 Leet Entertainment Group Limited Hong Kong Provision of information technology and mobile application development and digital content publishing service 1 ordinary share at par value of HK$1 100 Leet Entertainment Sdn. Bhd. Malaysia Provision of information technology and mobile application development and digital content publishing service 1,000 ordinary shares at par value of MYR1 100 The Company and its subsidiaries are hereinafter referred to as (the “Company”). |
GOING CONCERN UNCERTAINTIES
GOING CONCERN UNCERTAINTIES | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN UNCERTAINTIES | 2. GOING CONCERN UNCERTAINTIES The accompanying condensed consolidated financial statements have been prepared using the going concern basis of accounting, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has suffered from a working capital deficit and accumulated deficit of $ 4,092,957 6,289,557 3,811,438 The continuation of the Company as a going concern through the next twelve months is dependent upon the continued financial support from its stockholders. Management believes the Company is currently pursuing additional financing for its operations. However, there is no assurance that the Company will be successful in securing sufficient funds to sustain the operations. These and other factors raise substantial doubt about the Company’s ability to continue as a going concern. These condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets and liabilities that may result in the Company not being able to continue as a going concern. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying condensed consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying condensed consolidated financial statements and notes. l Basis of presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial reporting, and in accordance with instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, the unaudited consolidated financial statements contained in this report reflect all adjustments that are normal and recurring in nature and considered necessary for a fair presentation of the financial position and the results of operations for the interim periods presented. The year-end balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. The results of operations for the interim period are not necessarily indicative of the results expected for the full year. These unaudited consolidated financial statements, footnote disclosures and other information should be read in conjunction with the financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. These accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). l Use of estimates and assumptions In preparing these condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheet and revenues and expenses during the years reported. Actual results may differ from these estimates. l Basis of consolidation The condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation. l Cash and cash equivalents Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. l Accounts receivable Accounts receivable are recorded at the invoiced amount and do not bear interest, which are due within contractual payment terms, generally 30 to 90 days from completion of service. Credit is extended based on evaluation of a customer's financial condition, the customer credit-worthiness and their payment history. Accounts receivable outstanding longer than the contractual payment terms are considered past due. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. At the end of fiscal year, the Company specifically evaluates individual customer’s financial condition, credit history, and the current economic conditions to monitor the progress of the collection of accounts receivables. The Company will consider the allowance for doubtful accounts for any estimated losses resulting from the inability of its customers to make required payments. For the receivables that are past due or not being paid according to payment terms, the appropriate actions are taken to exhaust all means of collection, including seeking legal resolution in a court of law. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. As of September 30, 2021 and December 31, 2020, there were no l Plant and equipment Plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values: Schedule of useful lives of plant and equipment Expected useful lives Computer equipment 5 years Furniture and fixtures 5 years Leasehold improvements 5 years or over the shorter of the remaining term of the lease Expenditures for repairs and maintenance are expensed as incurred. When assets have been retired or sold, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the results of operations. l Software costs In accordance with the relevant FASB accounting guidance regarding the development of software to be sold, leased, or marketed, the Company expenses such costs as they are incurred until technological feasibility has been established, at and after which time these costs are capitalized until the product is available for general release to customers. Once the technological feasibility is established per ASC 985-20, the Company capitalizes costs associated with the acquisition or development of major software for internal and external use in the balance sheet. Costs incurred to enhance the Company’s software products, after general market release of the services using the products, is expensed in the period they are incurred. The Company only capitalizes subsequent additions, modifications or upgrades to internally developed software to the extent that such changes allow the software to perform a task it previously did not perform. The Company also expenses website costs as incurred. Research and development expenditures in the development of its own software are charged to operations as incurred. Based on the software development process, technological feasibility is established upon completion of a working model, which also requires certification and extensive testing. Costs incurred by the Company between completion of the working model and the point at which the product is ready for general release are immaterial. l Impairment of long-lived assets In accordance with the provisions of ASC Topic 360, “Impairment or Disposal of Long-Lived Assets”, all long-lived assets such as plant and equipment and intangible assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is evaluated by a comparison of the carrying amount of an asset to its estimated future undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amounts of the assets exceed the fair value of the assets. There has been no l Revenue recognition The Company adopted Accounting Standards Codification (“ASC”) 606 – Revenue from Contracts with Customers” (“ASC 606”). Under ASC 606, a performance obligation is a promise within a contract to transfer a distinct good or service, or a series of distinct goods and services, to a customer. Revenue is recognized when performance obligations are satisfied and the customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for goods or services. Under the standard, a contract’s transaction price is allocated to each distinct performance obligation. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: • identify the contract with a customer; • identify the performance obligations in the contract; • determine the transaction price; • allocate the transaction price to performance obligations in the contract; and • recognize revenue as the performance obligation is satisfied. Revenue of the Company is derived from the organization of competitions using video games. Most commonly, esports takes the form of organized, single player and multiplayer video game competitions. Revenues are recognized when the competition is completed, and prize money is awarded. Revenues are earned through sponsorship fees on a per tournament basis. l Income taxes The Company adopted the ASC 740 Income tax provisions of paragraph 740-10-25-13, which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the condensed consolidated financial statements. Under paragraph 740-10-25-13, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the condensed consolidated financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. Paragraph 740-10-25-13 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. The Company had no material adjustments to its liabilities for unrecognized income tax benefits according to the provisions of paragraph 740-10-25-13. The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its balance sheets and provides valuation allowances as management deems necessary. l Foreign currencies translation Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the condensed consolidated statement of operations. The reporting currency of the Company is United States Dollar ("US$") and the accompanying condensed consolidated financial statements have been expressed in US$. In addition, the Company’s subsidiaries are operating in Hong Kong and Malaysia and maintain their books and record in its local currency, Hong Kong Dollars (“HKD”) and Malaysian Ringgit (“MYR”), which are their functional currencies, being the primary currency of the economic environment in which their operations are conducted. In general, for consolidation purposes, assets and liabilities of the subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “Translation of Financial Statement”, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the year. The gains and losses resulting from translation of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income within the statements of changes in stockholder’s equity. Translation of amounts from HKD into US$ and MYR into US$ have been made at the following exchange rates for the period ended September 30, 2021 and 2020: Schedule of foreign currencies translation September 30, 2021 September 30, 2020 Period-end HKD:US$ exchange rate 0.12843 0.12903 Period average HKD:US$ exchange rate 0.12876 0.12891 Period-end MYR:US$ exchange rate 0.23898 0.24067 Period average MYR:US$ exchange rate 0.24226 0.23632 l Comprehensive income ASC Topic 220, “Comprehensive Income”, establishes standards for reporting and display of comprehensive income, its components and accumulated balances. Comprehensive income as defined includes all changes in equity during a period from non-owner sources. Accumulated other comprehensive income, as presented in the accompanying condensed consolidated statements of changes in stockholders’ equity, consists of changes in unrealized gains and losses on foreign currency translation. This comprehensive income is not included in the computation of income tax expense or benefit. l Leases The Company adopted Topic 842, “Leases” (“ASC 842”) and determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and operating lease liabilities in our condensed consolidated balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in our condensed consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company generally use the incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. In accordance with the guidance in ASC 842, components of a lease should be split into three categories: lease components (e.g. land, building, etc.), non-lease components (e.g. common area maintenance, consumables, etc.), and non-components (e.g. property taxes, insurance, etc.). Subsequently, the fixed and in-substance fixed contract consideration (including any related to non-components) must be allocated based on the respective relative fair values to the lease components and non-lease components. l Net loss per share The Company calculates net income or loss per share in accordance with ASC Topic 260, “Earnings per Share.” Basic income or loss per share is computed by dividing the net income or loss by the weighted-average number of common shares outstanding during the year. Diluted income per share is computed similar to basic income per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive. l Related parties The Company follows the ASC 850-10, Related Party for the identification of related parties and disclosure of related party transactions. Pursuant to section 850-10-20 the related parties include a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of section 825–10–15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and Income-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company may deal if one party controls or can significantly influence the 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; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have 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. The condensed consolidated financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d) amount due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. l Commitments and contingencies The Company follows the ASC 450-20, Commitments to report accounting for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s condensed consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time that these matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. l Fair value of financial instruments The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and has adopted paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by paragraph 820-10-35-37 of the FASB Accounting Standards Codification are described below: Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. 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. Level 3 Pricing inputs that are generally observable inputs and not corroborated by market data. Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The carrying amounts of the Company’s financial assets and liabilities, such as cash and cash equivalents, accounts receivable, deposits, other receivables and amount due from a director approximate their fair values because of the short maturity of these instruments. l Recent accounting pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standard Board (“FASB”) or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. Accounting Standards Adopted In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”) in order to increase transparency and comparability among organizations by recognizing right-of-use assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous generally accepted accounting principles. ASU 2016-02 requires a lessee to recognize a lease liability for future lease payments and a right-of-use asset representing the right to use the underlying asset for the lease term on the balance sheet for most lease arrangements. The new standard also changes many key definitions, including the definition of a lease. The new standard includes a short-term lease exception for leases with a term of 12 months or less, as part of which a lessee can make an accounting policy election not to recognize right-of-use assets and lease liabilities. Lessees will continue to differentiate between finance leases (previously referred to as capital leases) and operating leases using classification criteria that are substantially similar to the previous guidance in ASC 840. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 (including interim periods within those periods) and early adoption is permitted. In August 2018, the FASB issued ASU 2018-11, Leases, Targeted Improvements, which provides a new transition option in which an entity initially applies ASU 2016-02 at the adoption date and recognizes a cumulative-effect adjustment in the period of adoption. Prior period comparative balances will not be adjusted. The Company used the new transition option and was also utilizing the package of practical expedients that allows it to not 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 existing leases. We also used the short-term lease exception for leases with a term of 12 months or less. Additionally, the Company used the practical expedient that allowed each separate lease component of a contract and the associated non-lease components to be treated as a single lease component. The exercise of lease renewal options is at our discretion and the renewal to extend the lease terms are not included in the Company’s Right-Of-Use assets and lease liabilities as they are not reasonably certain of exercise. The Company will evaluate the renewal options and when they are reasonably certain of exercise, the Company will include the renewal period in its lease term. As of January 1, 2020, effective date the Company identified one finance lease arrangement in which it is a lessee. In calculating the present value of the lease payments, the Company applied an individual discount rate for each of its leases, and determined the appropriate discount rate based on the remaining lease terms at the date of adoption. As the lessee to several lease agreements, the Company did not have insight into the relevant information that would be required to arrive at the rate implicit in the lease. Therefore, the Company utilized its outstanding borrowings as a benchmark to determine the incremental borrowing rate for its leases. The benchmark rate was adjusted to arrive at an appropriate discount rate for each lease. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). This ASU requires measurement and recognition of expected credit losses for financial assets. ASU 2016-13 also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale debt securities. ASU 2016-13 is effective for interim and fiscal periods within those fiscal years beginning after December 15, 2019. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. Adopting the standard did not have a material impact on the condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (“ASU 2018-13”), which eliminates, adds and modifies certain disclosure requirements for fair value measurements. The amendment is effective for interim and annual reporting periods beginning after December 15, 2020. Adopting the standard did not have a material impact on the condensed consolidated financial statements. In November 2018, the FASB issued ASU No. 2018-18, Collaborative Arrangements (“ASU 2018-18”), which clarifies the interaction between ASC 808, Collaborative Arrangements and ASC 606, Revenue from Contracts with Customers. Certain transactions between participants in a collaborative arrangement should be accounted for under ASC 606 when the counterparty is a customer. In addition, ASU 2018-18 precludes an entity from presenting consideration from a transaction in a collaborative arrangement as revenue if the counterparty is not a customer for that transaction. ASU 2018-18 should be applied retrospectively to the date of initial application of ASC 606. This guidance is effective for interim and fiscal periods beginning after December 15, 2020. Adopting the standard did not have a material impact on the condensed consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes: Simplifying the Accounting for Income Taxes (“ASU 2020-12”), which eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2020, with early adoption permitted. Adoption of the standard requires certain changes to be made prospectively, with some changes to be made retrospectively. Adopting the standard did not have a material impact on the condensed consolidated financial statements. Accounting Standards Issued, Not Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform – Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848), which provides temporary optional expedients and exceptions to the GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates such as the Secured Overnight Financing Rate (SOFR). This guidance is effective upon issuance and generally can be applied through the end of calendar year 2022. The Company is currently evaluating the impact and applicability of this new standard. |
PLANT AND EQUIPMENT
PLANT AND EQUIPMENT | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
PLANT AND EQUIPMENT | 4. PLANT AND EQUIPMENT Plant and equipment consisted of the following: Schedule of plant and equipment As of September 30, 2021 December 31, 2020 (Audited) Computer equipment $ 165,028 $ 11,136 Furniture and fixtures 992 992 Leasehold improvements 12,618 12,618 Foreign translation difference (1,194 ) 364 177,444 25,110 Less: accumulated depreciation (30,591 ) (16,716 ) Less: foreign translation difference 388 (360 ) $ 147,241 $ 8,034 Depreciation expense for the three months ended September 30, 2021 and 2020 were $ 8,763 3,100 Depreciation expense for the nine months ended September 30, 2021 and 2020 were $ 13,850 3,100 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | 5. INTANGIBLE ASSETS Intangible assets consisted of the following: Schedule of intangible assets Useful life September 30, 2021 December 31, 2020 (Audited) At cost: Software platform 3 $ 539,899 $ 539,899 Foreign translation difference (2,128 ) 227 537,771 540,126 Less: accumulated amortization (134,851 ) – Less: foreign translation difference 408 – $ 403,328 $ 540,126 Amortization of intangible assets attributable to the future periods is as follows: Schedule of amortization of intangible assets Year ending September 30: 2022 $ 179,716 2023 179,716 2024 43,896 Total $ 403,328 Amortization for the three months ended September 30, 2021 and 2020 were $ 44,865 0 Amortization for the nine months ended September 30, 2021 and 2020 were $ 134,787 0 |
LEASE LIABILITY
LEASE LIABILITY | 9 Months Ended |
Sep. 30, 2021 | |
Lease Liability | |
LEASE LIABILITY | 6. LEASE LIABILITY The Company entered into operating leases primarily for office premises. The renewed lease terms are generally 2 1.75 The Company excludes short-term leases (those with lease terms of less than one year at inception) from the measurement of lease liabilities or right-of-use assets. As of September 30, 2021 and December 31, 2020, right-of-use assets were $ 9,288 3,018 9,272 3,075 For the three months ended September 30, 2021 and 2020, the Company charged its lease expenses of $ 1,287 1,286 For the nine months ended September 30, 2021 and 2020, the Company charged its lease expenses of $ 3,925 3,828 The maturity of the Company’s lease obligations is presented below: Schedule of lease obligations Operating lease amount Period ended September 30, 2022 $ 5,066 2023 4,258 Total lease 9,324 Less: interest (52 ) Present value of lease liabilities $ 9,272 |
AMOUNTS DUE TO RELATED PARTIES
AMOUNTS DUE TO RELATED PARTIES | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
AMOUNTS DUE TO RELATED PARTIES | 7. AMOUNTS DUE TO RELATED PARTIES As of September 30, 2021 and December 31, 2020, the Company’s director and major shareholder, Mr. Song Dai and companies under his control, made temporary advances to the Company for its working capital, which is unsecured, interest-free and has no fixed terms of repayment. |
STOCKHOLDERS_ DEFICIT
STOCKHOLDERS’ DEFICIT | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS’ DEFICIT | 8. STOCKHOLDERS’ DEFICIT Preferred Stock The Company’s articles of incorporation authorize the Company to issue up to 20,000,000 0.001 Series A Preferred Stock The Company has been authorized to issue 1,000,000 Series A Preferred stock will have one hundred (100) votes on all matters validly brought to the Company’s common stockholders As of September 30, 2021 and December 31, 2020, the total number of preferred shares issued or issuable was 1,000,000 Common Stock The Company has authorized 10,000,000,000 0.0001 On August 6, 2021, the Company issued 3,095,000 shares of common stock to four employees for incentive compensation at the current market value of $0.22 per share, and charged $680,900 as stock-based compensation expense. On August 23, 2021, the Company issued 1,403,973 shares of common stock to an independent advisory company for advisory service rendered at the current market value of $0.28 per share, and charged $393,112 as stock-based compensation expense. On September 3, 2021, the Company issued 7,000,000 shares of common stock to four employees for incentive compensation at the current market value of $0.24 per share, and charged $1,680,000 as stock-based compensation expense. As of September 30, 2021 and December 31, 2020, the Company had 151,896,262 140,397,289 |
WARRANTS
WARRANTS | 9 Months Ended |
Sep. 30, 2021 | |
Warrants | |
WARRANTS | 9. WARRANTS The Company issued warrants in individual sales and in connection with common stock purchase agreements. The warrants have expiration dates ranging from three 3 4 0.10 1.00 A summary of warrant activity for the periods presented is as follows: Schedule of warrant activity Weighted average Warrants for common shares Exercise price Remaining Aggregate intrinsic value Outstanding as of December 31, 2020 4,130,160 $ 0.60 1.81 $ 621,497 Forfeited, cancelled, expired (136,668 ) – ( 0.30 ) – Outstanding as of September 30, 2021 3,993,492 $ 0.60 1.31 $ 621,497 |
INCOME TAX
INCOME TAX | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | 10. INCOME TAX The Company is subject to taxes in the governing jurisdictions in which its subsidiaries operate. The effective tax rate in the period presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rate, as follows: United States The Company is registered in the State of Delaware and is subject to the tax laws of United States. As of September 30, 2021, the operation in the United States incurred $ 3,132,098 657,741 Labuan Under the current laws of the Labuan, LTL is governed under the Labuan Business Activity Act, 1990 (“LBATA”) and being an investment company is not subject to tax if the Labuan Substance Requirement Rules are met, failing which, it will be taxed at 24% of the audited net profit under the LBATA with no carry forward of losses to offset any future income. Hong Kong The Company’s subsidiary operating in Hong Kong is subject to the Hong Kong Profits Tax at the two-tiered profits tax rates from 8.25 16.5 no As of September 30, 2021, the operation in Hong Kong incurred $ 529,270 87,330 Malaysia The Company’s subsidiary operating in Malaysia is subject to the Malaysia Corporate Tax Laws at a progressive income tax rate of 17 The reconciliation of income tax rate to the effective income tax rate for the nine months ended September 30, 2021 and 2020 is as follows: Schedule of effective income tax rate reconciliation Nine months ended September 30, 2021 2020 Loss before income taxes $ (671,495 ) $ (395,519 ) Statutory income tax rate 17 17 Income tax expense at statutory rate (114,154 ) (67,238 ) Tax effect of non-deductible items 426 1,172 Timing differences and net operating loss 113,728 66,066 Income tax expense $ – $ – As of September 30, 2021, the operation in Malaysia incurred $ 2,239,372 The Company has provided for a full valuation allowance against the deferred tax assets of $380,693 on the expected future tax benefits as the management believes it is more likely than not that these assets will not be realized in the future. The following table sets forth the significant components of the deferred tax assets and liabilities of the Company as of September 30, 2021 and December 31, 2020: Schedule of tax credit carryforwards September 30, 2021 December 31, 2020 (Audited) Deferred tax assets: Net operating loss carryforwards - $ 657,741 $ 39,462 - 87,330 55,550 - 380,693 275,835 1,125,764 370,847 Less: valuation allowance (1,125,764 ) (370,847 ) Deferred tax assets, net $ – $ – |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 11. RELATED PARTY TRANSACTIONS From time to time, the director of the Company and his related companies under his control advanced funds to the Company for working capital purpose. Those advances are unsecured, non-interest bearing and have no fixed terms of repayment. For the three months ended September 30, 2021 and 2020, the Company paid $ 45,161 46,712 For the nine months ended September 30, 2021 and 2020, the Company paid $ 115,019 86,189 For the three months ended September 30, 2021 and 2020, the Company paid $ 89,098 0 For the nine months ended September 30, 2021 and 2020, the Company paid $ 177,393 0 For the nine months ended September 30, 2021 and 2020, the Company received $ 1,182 0 No For the three months ended September 30, 2021 and 2020, one of the Company’s directors and executive officers received remuneration in aggregate of $ 40,034 40,007 For the nine months ended September 30, 2021 and 2020, one of the Company’s directors and executive officers received remuneration in aggregate of $ 122,097 119,102 Apart from the transactions and balances detailed elsewhere in these accompanying condensed consolidated financial statements, the Company has no other significant or material related party transactions during the periods presented. |
CONCENTRATIONS OF RISK
CONCENTRATIONS OF RISK | 9 Months Ended |
Sep. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS OF RISK | 12. CONCENTRATIONS OF RISK The Company is exposed to the following concentrations of risk: (a) Major customers For the three and nine months ended September 30, 2021, there was one customer (Customer C) who accounts for more than 10% of the Company’s revenues and its outstanding receivable balances as at period-end dates was $ 159,684 For the three and nine months ended September 30, 2020, the individual customer who accounts for 10% or more of the Company’s revenues and its outstanding receivable balances as at period-end dates, are presented as follows: Schedule of concentrations of risk Three months ended September 30, 2020 September 30, 2020 Customers Revenues Percentage Accounts Customer A $ 18,039 59 $ 1,724 Customer B 12,064 39 15,257 Total: $ 30,103 98 Total: $ 16,981 Nine months ended September 30, 2020 September 30, 2020 Customers Revenues Percentage Accounts Customer A $ 48,596 63 $ 1,724 Customer B 15,101 19 15,257 Customer C 9,991 13 – Total: $ 73,688 95 Total: $ 16,981 (b) Economic and political risk The Company’s major operations are conducted in Hong Kong and Malaysia. Accordingly, the political, economic, and legal environments in Hong Kong and Malaysia, as well as the general state of Hong Kong and Malaysia’s economy may influence the Company’s business, financial condition, and results of operations. (c) Exchange rate risk The Company cannot guarantee that the current exchange rate will remain steady; therefore, there is a possibility that the Company could post the same amount of profit for two comparable periods and because of the fluctuating exchange rate actually post higher or lower profit depending on exchange rate of HKD and MYR converted to US$ on that date. The exchange rate could fluctuate depending on changes in political and economic environments without notice. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 13. COMMITMENTS AND CONTINGENCIES As of September 30, 2021, the Company has neither material commitments nor contingencies. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 14. SUBSEQUENT EVENTS In accordance with ASC Topic 855, “Subsequent Events”, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before condensed consolidated financial statements are issued, the Company has evaluated all events or transactions that occurred after September 30, 2021, up through the date the Company issued the audited condensed consolidated financial statements. The Company determined that there are no further events to disclose. On October 6, 2021, the Company entered into an agreement with Lincoln Park Capital Fund, LLC (“Lincoln Park”), in which the Company has the right, but not the obligation, to direct Lincoln Park to purchase up to $15,000,000 of common stock, with 100,000 shares of Common Stock on such business day, at a purchase price per share that will be determined and fixed in accordance with the Purchase Agreement at the time we deliver such written notice to Lincoln Park (each, a “Regular Purchase”), provided, however, that the maximum number of shares we may sell to Lincoln Park in a Regular Purchase may be increased to (i) up to 150,000 shares, provided that the closing sale price of the Common Stock on the applicable purchase date is not below $0.50, (ii) up to 200,000 shares, provided that the closing sale price of the Common Stock on the applicable purchase date is not below $0.75, and (iii) up to 250,000 shares, provided that the closing sale price of the Common Stock on the applicable purchase date is not below $1.00, in each case, subject to adjustment for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction as provided in the Purchase Agreement; provided, however, that Lincoln Park’s maximum purchase commitment in any single Regular Purchase may not exceed $25,000, unless the daily median dollar volume of the Common Stock for the 20 trading-day period preceding the applicable purchase date exceeds $50,000, at which time Lincoln Park’s maximum purchase commitment in any single Regular Purchase may not exceed $500,000. The purchase price per share of Common Stock sold in each such Regular Purchase, if any, will be based on prevailing market prices of the Common Stock immediately preceding the time of sale as computed under the Purchase Agreement. As consideration for Lincoln Park’s irrevocable commitment to purchase shares of the Company’s Common Stock upon the terms of and subject to satisfaction of the conditions set forth in the Purchase Agreement, the Company agreed to issue 1,003,378 shares of its Common Stock to Lincoln Park as commitment shares, and up to 1,003,378 additional shares of Common Stock on a pro rata basis as Lincoln Park purchases up to its $15,000,000 total aggregate dollar amount purchase commitment under the Purchase Agreement. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | l Basis of presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial reporting, and in accordance with instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, the unaudited consolidated financial statements contained in this report reflect all adjustments that are normal and recurring in nature and considered necessary for a fair presentation of the financial position and the results of operations for the interim periods presented. The year-end balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. The results of operations for the interim period are not necessarily indicative of the results expected for the full year. These unaudited consolidated financial statements, footnote disclosures and other information should be read in conjunction with the financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. These accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). |
Use of estimates and assumptions | l Use of estimates and assumptions In preparing these condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheet and revenues and expenses during the years reported. Actual results may differ from these estimates. |
Basis of consolidation | l Basis of consolidation The condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation. |
Cash and cash equivalents | l Cash and cash equivalents Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. |
Accounts receivable | l Accounts receivable Accounts receivable are recorded at the invoiced amount and do not bear interest, which are due within contractual payment terms, generally 30 to 90 days from completion of service. Credit is extended based on evaluation of a customer's financial condition, the customer credit-worthiness and their payment history. Accounts receivable outstanding longer than the contractual payment terms are considered past due. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. At the end of fiscal year, the Company specifically evaluates individual customer’s financial condition, credit history, and the current economic conditions to monitor the progress of the collection of accounts receivables. The Company will consider the allowance for doubtful accounts for any estimated losses resulting from the inability of its customers to make required payments. For the receivables that are past due or not being paid according to payment terms, the appropriate actions are taken to exhaust all means of collection, including seeking legal resolution in a court of law. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. As of September 30, 2021 and December 31, 2020, there were no |
Plant and equipment | l Plant and equipment Plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values: Schedule of useful lives of plant and equipment Expected useful lives Computer equipment 5 years Furniture and fixtures 5 years Leasehold improvements 5 years or over the shorter of the remaining term of the lease Expenditures for repairs and maintenance are expensed as incurred. When assets have been retired or sold, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the results of operations. |
Software costs | l Software costs In accordance with the relevant FASB accounting guidance regarding the development of software to be sold, leased, or marketed, the Company expenses such costs as they are incurred until technological feasibility has been established, at and after which time these costs are capitalized until the product is available for general release to customers. Once the technological feasibility is established per ASC 985-20, the Company capitalizes costs associated with the acquisition or development of major software for internal and external use in the balance sheet. Costs incurred to enhance the Company’s software products, after general market release of the services using the products, is expensed in the period they are incurred. The Company only capitalizes subsequent additions, modifications or upgrades to internally developed software to the extent that such changes allow the software to perform a task it previously did not perform. The Company also expenses website costs as incurred. Research and development expenditures in the development of its own software are charged to operations as incurred. Based on the software development process, technological feasibility is established upon completion of a working model, which also requires certification and extensive testing. Costs incurred by the Company between completion of the working model and the point at which the product is ready for general release are immaterial. |
Impairment of long-lived assets | l Impairment of long-lived assets In accordance with the provisions of ASC Topic 360, “Impairment or Disposal of Long-Lived Assets”, all long-lived assets such as plant and equipment and intangible assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is evaluated by a comparison of the carrying amount of an asset to its estimated future undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amounts of the assets exceed the fair value of the assets. There has been no |
Revenue recognition | l Revenue recognition The Company adopted Accounting Standards Codification (“ASC”) 606 – Revenue from Contracts with Customers” (“ASC 606”). Under ASC 606, a performance obligation is a promise within a contract to transfer a distinct good or service, or a series of distinct goods and services, to a customer. Revenue is recognized when performance obligations are satisfied and the customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for goods or services. Under the standard, a contract’s transaction price is allocated to each distinct performance obligation. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: • identify the contract with a customer; • identify the performance obligations in the contract; • determine the transaction price; • allocate the transaction price to performance obligations in the contract; and • recognize revenue as the performance obligation is satisfied. Revenue of the Company is derived from the organization of competitions using video games. Most commonly, esports takes the form of organized, single player and multiplayer video game competitions. Revenues are recognized when the competition is completed, and prize money is awarded. Revenues are earned through sponsorship fees on a per tournament basis. |
Income taxes | l Income taxes The Company adopted the ASC 740 Income tax provisions of paragraph 740-10-25-13, which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the condensed consolidated financial statements. Under paragraph 740-10-25-13, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the condensed consolidated financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. Paragraph 740-10-25-13 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. The Company had no material adjustments to its liabilities for unrecognized income tax benefits according to the provisions of paragraph 740-10-25-13. The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its balance sheets and provides valuation allowances as management deems necessary. |
Foreign currencies translation | l Foreign currencies translation Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the condensed consolidated statement of operations. The reporting currency of the Company is United States Dollar ("US$") and the accompanying condensed consolidated financial statements have been expressed in US$. In addition, the Company’s subsidiaries are operating in Hong Kong and Malaysia and maintain their books and record in its local currency, Hong Kong Dollars (“HKD”) and Malaysian Ringgit (“MYR”), which are their functional currencies, being the primary currency of the economic environment in which their operations are conducted. In general, for consolidation purposes, assets and liabilities of the subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “Translation of Financial Statement”, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the year. The gains and losses resulting from translation of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income within the statements of changes in stockholder’s equity. Translation of amounts from HKD into US$ and MYR into US$ have been made at the following exchange rates for the period ended September 30, 2021 and 2020: Schedule of foreign currencies translation September 30, 2021 September 30, 2020 Period-end HKD:US$ exchange rate 0.12843 0.12903 Period average HKD:US$ exchange rate 0.12876 0.12891 Period-end MYR:US$ exchange rate 0.23898 0.24067 Period average MYR:US$ exchange rate 0.24226 0.23632 |
Comprehensive income | l Comprehensive income ASC Topic 220, “Comprehensive Income”, establishes standards for reporting and display of comprehensive income, its components and accumulated balances. Comprehensive income as defined includes all changes in equity during a period from non-owner sources. Accumulated other comprehensive income, as presented in the accompanying condensed consolidated statements of changes in stockholders’ equity, consists of changes in unrealized gains and losses on foreign currency translation. This comprehensive income is not included in the computation of income tax expense or benefit. |
Leases | l Leases The Company adopted Topic 842, “Leases” (“ASC 842”) and determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and operating lease liabilities in our condensed consolidated balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in our condensed consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company generally use the incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. In accordance with the guidance in ASC 842, components of a lease should be split into three categories: lease components (e.g. land, building, etc.), non-lease components (e.g. common area maintenance, consumables, etc.), and non-components (e.g. property taxes, insurance, etc.). Subsequently, the fixed and in-substance fixed contract consideration (including any related to non-components) must be allocated based on the respective relative fair values to the lease components and non-lease components. |
Net loss per share | l Net loss per share The Company calculates net income or loss per share in accordance with ASC Topic 260, “Earnings per Share.” Basic income or loss per share is computed by dividing the net income or loss by the weighted-average number of common shares outstanding during the year. Diluted income per share is computed similar to basic income per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive. |
Related parties | l Related parties The Company follows the ASC 850-10, Related Party for the identification of related parties and disclosure of related party transactions. Pursuant to section 850-10-20 the related parties include a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of section 825–10–15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and Income-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company may deal if one party controls or can significantly influence the 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; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have 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. The condensed consolidated financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d) amount due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. |
Commitments and contingencies | l Commitments and contingencies The Company follows the ASC 450-20, Commitments to report accounting for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s condensed consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time that these matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. |
Fair value of financial instruments | l Fair value of financial instruments The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and has adopted paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by paragraph 820-10-35-37 of the FASB Accounting Standards Codification are described below: Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. 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. Level 3 Pricing inputs that are generally observable inputs and not corroborated by market data. Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The carrying amounts of the Company’s financial assets and liabilities, such as cash and cash equivalents, accounts receivable, deposits, other receivables and amount due from a director approximate their fair values because of the short maturity of these instruments. |
Recent accounting pronouncements | l Recent accounting pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standard Board (“FASB”) or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. Accounting Standards Adopted In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”) in order to increase transparency and comparability among organizations by recognizing right-of-use assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous generally accepted accounting principles. ASU 2016-02 requires a lessee to recognize a lease liability for future lease payments and a right-of-use asset representing the right to use the underlying asset for the lease term on the balance sheet for most lease arrangements. The new standard also changes many key definitions, including the definition of a lease. The new standard includes a short-term lease exception for leases with a term of 12 months or less, as part of which a lessee can make an accounting policy election not to recognize right-of-use assets and lease liabilities. Lessees will continue to differentiate between finance leases (previously referred to as capital leases) and operating leases using classification criteria that are substantially similar to the previous guidance in ASC 840. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 (including interim periods within those periods) and early adoption is permitted. In August 2018, the FASB issued ASU 2018-11, Leases, Targeted Improvements, which provides a new transition option in which an entity initially applies ASU 2016-02 at the adoption date and recognizes a cumulative-effect adjustment in the period of adoption. Prior period comparative balances will not be adjusted. The Company used the new transition option and was also utilizing the package of practical expedients that allows it to not 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 existing leases. We also used the short-term lease exception for leases with a term of 12 months or less. Additionally, the Company used the practical expedient that allowed each separate lease component of a contract and the associated non-lease components to be treated as a single lease component. The exercise of lease renewal options is at our discretion and the renewal to extend the lease terms are not included in the Company’s Right-Of-Use assets and lease liabilities as they are not reasonably certain of exercise. The Company will evaluate the renewal options and when they are reasonably certain of exercise, the Company will include the renewal period in its lease term. As of January 1, 2020, effective date the Company identified one finance lease arrangement in which it is a lessee. In calculating the present value of the lease payments, the Company applied an individual discount rate for each of its leases, and determined the appropriate discount rate based on the remaining lease terms at the date of adoption. As the lessee to several lease agreements, the Company did not have insight into the relevant information that would be required to arrive at the rate implicit in the lease. Therefore, the Company utilized its outstanding borrowings as a benchmark to determine the incremental borrowing rate for its leases. The benchmark rate was adjusted to arrive at an appropriate discount rate for each lease. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). This ASU requires measurement and recognition of expected credit losses for financial assets. ASU 2016-13 also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale debt securities. ASU 2016-13 is effective for interim and fiscal periods within those fiscal years beginning after December 15, 2019. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. Adopting the standard did not have a material impact on the condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (“ASU 2018-13”), which eliminates, adds and modifies certain disclosure requirements for fair value measurements. The amendment is effective for interim and annual reporting periods beginning after December 15, 2020. Adopting the standard did not have a material impact on the condensed consolidated financial statements. In November 2018, the FASB issued ASU No. 2018-18, Collaborative Arrangements (“ASU 2018-18”), which clarifies the interaction between ASC 808, Collaborative Arrangements and ASC 606, Revenue from Contracts with Customers. Certain transactions between participants in a collaborative arrangement should be accounted for under ASC 606 when the counterparty is a customer. In addition, ASU 2018-18 precludes an entity from presenting consideration from a transaction in a collaborative arrangement as revenue if the counterparty is not a customer for that transaction. ASU 2018-18 should be applied retrospectively to the date of initial application of ASC 606. This guidance is effective for interim and fiscal periods beginning after December 15, 2020. Adopting the standard did not have a material impact on the condensed consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes: Simplifying the Accounting for Income Taxes (“ASU 2020-12”), which eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2020, with early adoption permitted. Adoption of the standard requires certain changes to be made prospectively, with some changes to be made retrospectively. Adopting the standard did not have a material impact on the condensed consolidated financial statements. Accounting Standards Issued, Not Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform – Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848), which provides temporary optional expedients and exceptions to the GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates such as the Secured Overnight Financing Rate (SOFR). This guidance is effective upon issuance and generally can be applied through the end of calendar year 2022. The Company is currently evaluating the impact and applicability of this new standard. |
DESCRIPTION OF BUSINESS AND O_2
DESCRIPTION OF BUSINESS AND ORGANIZATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of description of subsidiaries | Schedule of description of subsidiaries Name Place of incorporation and kind of legal entity Principal activities Particulars of registered/ paid up share capital Effective interest held Leet Technology Limited Labuan, Malaysia Investment holding 10,000 ordinary shares at par value of US$1 100 Leet Entertainment Group Limited Hong Kong Provision of information technology and mobile application development and digital content publishing service 1 ordinary share at par value of HK$1 100 Leet Entertainment Sdn. Bhd. Malaysia Provision of information technology and mobile application development and digital content publishing service 1,000 ordinary shares at par value of MYR1 100 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of useful lives of plant and equipment | Schedule of useful lives of plant and equipment Expected useful lives Computer equipment 5 years Furniture and fixtures 5 years Leasehold improvements 5 years or over the shorter of the remaining term of the lease |
Schedule of foreign currencies translation | Schedule of foreign currencies translation September 30, 2021 September 30, 2020 Period-end HKD:US$ exchange rate 0.12843 0.12903 Period average HKD:US$ exchange rate 0.12876 0.12891 Period-end MYR:US$ exchange rate 0.23898 0.24067 Period average MYR:US$ exchange rate 0.24226 0.23632 |
PLANT AND EQUIPMENT (Tables)
PLANT AND EQUIPMENT (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of plant and equipment | Schedule of plant and equipment As of September 30, 2021 December 31, 2020 (Audited) Computer equipment $ 165,028 $ 11,136 Furniture and fixtures 992 992 Leasehold improvements 12,618 12,618 Foreign translation difference (1,194 ) 364 177,444 25,110 Less: accumulated depreciation (30,591 ) (16,716 ) Less: foreign translation difference 388 (360 ) $ 147,241 $ 8,034 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | Schedule of intangible assets Useful life September 30, 2021 December 31, 2020 (Audited) At cost: Software platform 3 $ 539,899 $ 539,899 Foreign translation difference (2,128 ) 227 537,771 540,126 Less: accumulated amortization (134,851 ) – Less: foreign translation difference 408 – $ 403,328 $ 540,126 |
Schedule of amortization of intangible assets | Schedule of amortization of intangible assets Year ending September 30: 2022 $ 179,716 2023 179,716 2024 43,896 Total $ 403,328 |
LEASE LIABILITY (Tables)
LEASE LIABILITY (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Lease Liability | |
Schedule of lease obligations | Schedule of lease obligations Operating lease amount Period ended September 30, 2022 $ 5,066 2023 4,258 Total lease 9,324 Less: interest (52 ) Present value of lease liabilities $ 9,272 |
WARRANTS (Tables)
WARRANTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Warrants | |
Schedule of warrant activity | Schedule of warrant activity Weighted average Warrants for common shares Exercise price Remaining Aggregate intrinsic value Outstanding as of December 31, 2020 4,130,160 $ 0.60 1.81 $ 621,497 Forfeited, cancelled, expired (136,668 ) – ( 0.30 ) – Outstanding as of September 30, 2021 3,993,492 $ 0.60 1.31 $ 621,497 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of effective income tax rate reconciliation | Schedule of effective income tax rate reconciliation Nine months ended September 30, 2021 2020 Loss before income taxes $ (671,495 ) $ (395,519 ) Statutory income tax rate 17 17 Income tax expense at statutory rate (114,154 ) (67,238 ) Tax effect of non-deductible items 426 1,172 Timing differences and net operating loss 113,728 66,066 Income tax expense $ – $ – |
Schedule of tax credit carryforwards | Schedule of tax credit carryforwards September 30, 2021 December 31, 2020 (Audited) Deferred tax assets: Net operating loss carryforwards - $ 657,741 $ 39,462 - 87,330 55,550 - 380,693 275,835 1,125,764 370,847 Less: valuation allowance (1,125,764 ) (370,847 ) Deferred tax assets, net $ – $ – |
CONCENTRATIONS OF RISK (Tables)
CONCENTRATIONS OF RISK (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
Schedule of concentrations of risk | Schedule of concentrations of risk Three months ended September 30, 2020 September 30, 2020 Customers Revenues Percentage Accounts Customer A $ 18,039 59 $ 1,724 Customer B 12,064 39 15,257 Total: $ 30,103 98 Total: $ 16,981 Nine months ended September 30, 2020 September 30, 2020 Customers Revenues Percentage Accounts Customer A $ 48,596 63 $ 1,724 Customer B 15,101 19 15,257 Customer C 9,991 13 – Total: $ 73,688 95 Total: $ 16,981 |
DESCRIPTION OF BUSINESS AND O_3
DESCRIPTION OF BUSINESS AND ORGANIZATION (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Leet Technology Limited [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Name of subsidiaries | Leet Technology Limited |
Place of incorporation and kind of legal entity | Labuan, Malaysia |
Principal activities | Investment holding |
Particulars of registered/ paid up share capital | 10,000 ordinary shares at par value of US$1 |
Effective interest held | 100.00% |
Leet Entertainment Group Limited [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Name of subsidiaries | Leet Entertainment Group Limited |
Place of incorporation and kind of legal entity | Hong Kong |
Principal activities | Provision of information technology and mobile application development and digital content publishing service |
Particulars of registered/ paid up share capital | 1 ordinary share at par value of HK$1 |
Effective interest held | 100.00% |
Leet Entertainment Sdn. Bhd. [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Name of subsidiaries | Leet Entertainment Sdn. Bhd. |
Place of incorporation and kind of legal entity | Malaysia |
Principal activities | Provision of information technology and mobile application development and digital content publishing service |
Particulars of registered/ paid up share capital | 1,000 ordinary shares at par value of MYR1 |
Effective interest held | 100.00% |
GOING CONCERN UNCERTAINTIES (De
GOING CONCERN UNCERTAINTIES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||
Working capital deficit | $ 4,092,957 | $ 4,092,957 | |||||||
Accumulated deficit | 6,289,557 | 6,289,557 | $ 2,478,119 | ||||||
Net loss | $ 3,207,183 | $ 298,253 | $ 306,002 | $ 112,657 | $ 100,749 | $ 114,478 | $ 3,811,438 | $ 327,884 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Schedule of Plant and Equipment Usefule Lives) | 9 Months Ended |
Sep. 30, 2021 | |
Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Plant and equipment, useful lives | 5 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Plant and equipment, useful lives | 5 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Plant and equipment, useful lives | 5 years or over the shorter of the remaining term of the lease |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Schedule of Exchange Rates) | Sep. 30, 2021 | Sep. 30, 2020 |
Periodend [Member] | Hong Kong, Dollars | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Exchange rate | 0.12843 | 0.12903 |
Periodend [Member] | Malaysia, Ringgits | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Exchange rate | 0.23898 | 0.24067 |
Period Average [Member] | Hong Kong, Dollars | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Exchange rate | 0.12876 | 0.12891 |
Period Average [Member] | Malaysia, Ringgits | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Exchange rate | 0.24226 | 0.23632 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | |||
Allowance for doubtful accounts | $ 0 | $ 0 | |
Impairment of long-lived assets | $ 0 | $ 0 |
PLANT AND EQUIPMENT (Details -
PLANT AND EQUIPMENT (Details - Schedule of Plant and Equipment) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Foreign translation difference | $ 177,444 | $ 25,110 |
Plant and equipment, gross | (1,194) | 364 |
Less: accumulated depreciation | (30,591) | (16,716) |
Less: foreign translation difference | 388 | (360) |
Plant and equipment, net | 147,241 | 8,034 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Foreign translation difference | 165,028 | 11,136 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Foreign translation difference | 992 | 992 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Foreign translation difference | $ 12,618 | $ 12,618 |
PLANT AND EQUIPMENT (Details Na
PLANT AND EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 8,763 | $ 3,100 | $ 13,850 | $ 3,100 |
INTANGIBLE ASSETS (Details - Sc
INTANGIBLE ASSETS (Details - Schedule of intangible assets - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Less: accumulated amortization | $ 537,771 | $ 540,126 |
Foreign translation difference | (2,128) | 227 |
Less: accumulated amortization | (134,851) | 0 |
Less: accumulated amortization | 134,851 | 0 |
Less: foreign translation difference | 408 | 0 |
Intangible assets, cost | $ 403,328 | 540,126 |
Software Platform [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful lives | 3 years | |
Less: accumulated amortization | $ 539,899 | $ 539,899 |
INTANGIBLE ASSETS (Details - Am
INTANGIBLE ASSETS (Details - Amortization of intangible assets) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 | $ 179,716 | |
2023 | 179,716 | |
2024 | 43,896 | |
Total | $ 403,328 | $ 540,126 |
INTANGIBLE ASSETS (Details Narr
INTANGIBLE ASSETS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 44,865 | $ 0 | $ 134,787 | $ 0 |
LEASE LIABILITY (Details - Matu
LEASE LIABILITY (Details - Maturity of operating lease liability) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Lease Liability | ||
2022 | $ 5,066 | |
2023 | 4,258 | |
Total lease | 9,324 | |
Less: interest | (52) | |
Present value of lease liabilities | $ 9,272 | $ 3,075 |
LEASE LIABILITY (Details Narrat
LEASE LIABILITY (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Right of use assets | $ 9,288 | $ 9,288 | $ 3,018 | ||
Lease liabilities | 9,272 | 9,272 | $ 3,075 | ||
Operating lease payment | $ 1,287 | $ 1,286 | $ 3,925 | $ 3,828 | |
Office Premises [Member] | |||||
Operating lease term | 2 years | 2 years | |||
Operating lease discount rate | 1.75% | 1.75% |
STOCKHOLDERS_ DEFICIT (Details
STOCKHOLDERS’ DEFICIT (Details Narrative) - $ / shares | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | ||
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares issued | 1,000,000 | 1,000,000 |
Common stock, shares authorized | 10,000,000,000 | 10,000,000,000 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares issued | 151,896,262 | 140,397,289 |
Common stock, shares outstanding | 151,896,262 | 140,397,289 |
Series A Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred stock, shares authorized | 1,000,000 | |
Preferred stock, voting rights | Series A Preferred stock will have one hundred (100) votes on all matters validly brought to the Company’s common stockholders |
WARRANTS (Details - Schedule of
WARRANTS (Details - Schedule of Warrant Activity) - Warrant [Member] - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Warrants for common shares, outstanding, beginning balance | 4,130,160 | |
Weighted average exercise price, beginning balance | $ 0.60 | |
Weighted Average Remaining Contractual Life Warrants Outstanding | 1 year 3 months 21 days | 1 year 9 months 21 days |
Aggregate Intrinsic Value Outstanding Beginning | $ 621,497 | |
Warrants for common shares, Forfeited, cancelled, expired | (136,668) | |
Weighted average exercise price, Forfeited, cancelled, expired | ||
Weighted Average Remaining Contractual Life Warrants Outstanding, Forfeited, cancelled, expired | 3 months 18 days | |
Aggregate Intrinsic Value, Forfeited, cancelled, expired | $ 0 | |
Warrants for common shares, Outstanding, ending balance | 3,993,492 | 4,130,160 |
Weighted average exercise price, ending balance | $ 0.60 | $ 0.60 |
Aggregate Intrinsic Value Outstanding Ending | $ 621,497 | $ 621,497 |
WARRANTS (Details Narrative)
WARRANTS (Details Narrative) - Warrant [Member] | Sep. 30, 2021$ / shares |
Minimum [Member] | |
Warrant expiration | 3 years |
Warrants exercise prices | $ 0.10 |
Maximum [Member] | |
Warrant expiration | 4 years |
Warrants exercise prices | $ 1 |
INCOME TAX (Details - Schedule
INCOME TAX (Details - Schedule of effective income tax rate) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Loss before income taxes | $ (671,495) | $ (395,519) | ||
Statutory income tax rate | 17.00% | 17.00% | ||
Income tax expense at statutory rate | $ (114,154) | $ (67,238) | ||
Tax effect of non-deductible items | 426 | 1,172 | ||
Net operating loss | 113,728 | 66,066 | ||
Income tax expense | $ 0 | $ 0 | $ 0 | $ 0 |
INCOME TAX (Details - Schedul_2
INCOME TAX (Details - Schedule of tax credit carryforwards) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Net operating loss carryforwards | $ 1,125,764 | $ 370,847 |
Less: valuation allowance | (1,125,764) | (370,847) |
Deferred tax assets, net | 0 | 0 |
UNITED STATES | ||
Net operating loss carryforwards | 657,741 | 39,462 |
Less: valuation allowance | (657,741) | |
HONG KONG | ||
Net operating loss carryforwards | 87,330 | 55,550 |
Less: valuation allowance | (87,330) | |
MALAYSIA | ||
Net operating loss carryforwards | $ 380,693 | $ 275,835 |
INCOME TAX (Details Narrative)
INCOME TAX (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Deferred tax assets, valuation allowances | $ 1,125,764 | $ 1,125,764 | $ 370,847 | ||
Provision for income tax | 0 | $ 0 | 0 | $ 0 | |
UNITED STATES | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Operating loss carryforwards | 3,132,098 | 3,132,098 | |||
Deferred tax assets, valuation allowances | 657,741 | 657,741 | |||
HONG KONG | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Operating loss carryforwards | 529,270 | 529,270 | |||
Deferred tax assets, valuation allowances | 87,330 | 87,330 | |||
Provision for income tax | $ 0 | $ 0 | |||
HONG KONG | Minimum [Member] | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Income tax rate | 8.25% | ||||
HONG KONG | Maximum [Member] | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Income tax rate | 16.50% | ||||
MALAYSIA | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Operating loss carryforwards | $ 2,239,372 | $ 2,239,372 | |||
Income tax rate | 17.00% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
It Operating Expense [Member] | Director [Member] | ||||
Related Party Transaction [Line Items] | ||||
Officers remuneration | $ 40,034 | $ 40,007 | $ 122,097 | $ 119,102 |
Porta Capital Limited [Member] | It Operating Expense [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related party expenses | 45,161 | 46,712 | 115,019 | 86,189 |
Bru Haas [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related party revenues | 0 | 0 | 1,182 | 0 |
Bru Haas [Member] | Network Bandwith Expense [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related party expenses | $ 89,098 | $ 0 | $ 177,393 | $ 0 |
CONCENTRATIONS OF RISK (Details
CONCENTRATIONS OF RISK (Details - Schedule of concentrations of risk) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Concentration Risk [Line Items] | ||||
Revenue | $ 75,051 | $ 17,387 | $ 203,539 | $ 64,464 |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer A [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue | $ 18,039 | $ 48,596 | ||
Concentrations of risk, percentage | 59.00% | 63.00% | ||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer B [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue | $ 12,064 | $ 15,101 | ||
Concentrations of risk, percentage | 39.00% | 19.00% | ||
Accounts Receivable | $ 159,684 | $ 159,684 | ||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Total Customers [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue | $ 30,103 | $ 73,688 | ||
Concentrations of risk, percentage | 98.00% | 95.00% | ||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer C [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue | $ 9,991 | |||
Concentrations of risk, percentage | 13.00% | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer A [Member] | ||||
Concentration Risk [Line Items] | ||||
Accounts Receivable | $ 1,724 | $ 1,724 | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer B [Member] | ||||
Concentration Risk [Line Items] | ||||
Accounts Receivable | 15,257 | 15,257 | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Total Customers [Member] | ||||
Concentration Risk [Line Items] | ||||
Accounts Receivable | 16,981 | 16,981 | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer C [Member] | ||||
Concentration Risk [Line Items] | ||||
Accounts Receivable | $ 0 | $ 0 |
CONCENTRATIONS OF RISK (Detai_2
CONCENTRATIONS OF RISK (Details Narrative) | Sep. 30, 2021USD ($) |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer B [Member] | |
Concentration Risk [Line Items] | |
Accounts Receivable | $ 159,684 |