Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 01, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q/A | |
Amendment Flag | true | |
Amendment Description | Amended financials | |
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 | |
Title of 12(g) Security | Common Stock Par value, $0.0001 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 152,899,640 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Current asset: | ||
Cash | $ 18,958 | $ 38,985 |
Accounts receivable | 12,085 | 20,630 |
Deposit and other receivables | 11,051 | 2,897 |
Total current assets | 42,094 | 62,512 |
Non-current asset: | ||
Plant and equipment, net | 147,241 | 8,034 |
Intangible assets, net | 403,328 | 540,126 |
Right of use assets | 9,288 | 3,018 |
TOTAL ASSETS | 601,951 | 613,690 |
Current liabilities: | ||
Accounts payable | 537,741 | 540,126 |
Accrued liabilities and other payables | 89,644 | 53,720 |
Accrued compensation payable to officers and directors | 344,373 | 293,020 |
Amounts due to related parties | 3,353,679 | 2,254,023 |
Operating lease liabilities | 6,313 | 3,075 |
Total current liabilities | 4,331,750 | 3,143,964 |
Non-current liabilities | ||
Operating lease liabilities | 2,959 | 0 |
TOTAL LIABILITIES | 4,334,709 | 3,143,964 |
STOCKHOLDERS’ DEFICIT | ||
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 | 2,762,762 | 9,900 |
Accumulated other comprehensive loss | (33,433) | (76,195) |
Accumulated deficit | (6,477,377) | (2,478,119) |
Total stockholders’ deficit | (3,732,758) | (2,530,274) |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | 601,951 | 613,690 |
Series A Preferred Stock [Member] | ||
STOCKHOLDERS’ DEFICIT | ||
Preferred Stock, Value, Issued | 100 | 100 |
Series B Preferred Stock [Member] | ||
STOCKHOLDERS’ DEFICIT | ||
Preferred Stock, Value, Issued | $ 0 | $ 0 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
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 |
Series A Preferred Stock [Member] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
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 |
Series B Preferred Stock [Member] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenue | $ 14,980 | $ 17,387 | $ 43,446 | $ 64,464 |
Cost of revenue (includes related party expenses, $152,922 and $292,969 in 2021, for the 3 and 9 months, and includes related party expenses of $19,737 and $59,214 in 2020 for the 3 and 9 months) | (188,728) | (26,221) | (393,278) | (102,472) |
Gross loss | (173,748) | (8,834) | (349,832) | (38,008) |
Operating expenses: | ||||
Research and development (includes related party expenses, $9,064 and $27,170 in 2021, for the 3 and 9 months, and includes related party expenses of $23,978 and $23,978 in 2020 for the 3 and 9 months) | (9,087) | (26,975) | (27,219) | (26,975) |
General and administrative expenses | (3,112,710) | (82,059) | (3,623,303) | (278,158) |
Total operating expenses | (3,121,797) | (109,034) | (3,650,522) | (305,133) |
Loss from operations | (3,295,545) | (117,868) | (4,000,354) | (343,141) |
Other income: | ||||
Interest income | 0 | 0 | 76 | 0 |
Sundry income | 564 | 5,211 | 1,020 | 15,257 |
Total other income | 564 | 5,211 | 1,096 | 15,257 |
LOSS BEFORE INCOME TAXES | (3,294,981) | (112,657) | (3,999,258) | (327,884) |
Income tax expense | 0 | 0 | 0 | 0 |
NET LOSS | (3,294,981) | (112,657) | (3,999,258) | (327,884) |
Other comprehensive income (loss): | ||||
Foreign currency translation income (loss) | 12,387 | (20,629) | 42,762 | (6,832) |
COMPREHENSIVE LOSS | $ (3,282,594) | $ (133,286) | $ (3,956,496) | $ (334,716) |
Loss per common share, basic and diluted | $ (0.02) | $ (0.01) | $ (0.03) | $ (0.03) |
Weighted average number of common shares outstanding, basic and diluted | 144,881,810 | 10,000,000 | 141,908,556 | 10,000,000 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) (Parenthetical) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Cost of revenue related party expenses | $ 152,922 | $ 19,737 | $ 292,969 | $ 59,214 |
Research and developmentv related party expenses | $ 9,064 | $ 23,978 | $ 27,170 | $ 23,978 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (3,999,258) | $ (327,884) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation on plant and equipment | 13,850 | 3,100 |
Amortization on intangible assets | 134,787 | 0 |
Right of use amortization | 3,801 | 3,693 |
Stock based compensation | 2,754,012 | 0 |
Change in operating assets and liabilities: | ||
Accounts receivable | 7,603 | 65,749 |
Deposit and other receivables | (8,364) | 26,831 |
Accounts payable | (30) | 33,289 |
Accrued liabilities and other payables | 38,080 | (52,769) |
Accrued compensation payable to officers and directors | 63,228 | 61,642 |
Operating lease liabilities | (3,872) | (3,725) |
Net cash used in operating activities | (996,163) | (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: | ||
Repayment to a related party | (316) | 0 |
Advances from related parties | 1,121,499 | 252,234 |
Net cash provided by financing activities | 1,121,183 | 252,234 |
Effect on exchange rate change on cash | 8,713 | (96,818) |
Net decrease in cash | (20,027) | (36,944) |
CASH, BEGINNING OF PERIOD | 38,985 | 42,526 |
CASH, 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 |
Right-of-use assets and lease liabilities | $ 10,271 | $ 0 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S DEFICIT (Unaudited) - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Balance as of June 30, 2021 (restated) 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 (restated) | 15,908 | 15,908 | ||||
Net loss for the period (restated) | (114,478) | (114,478) | ||||
Balance as of September 30, 2021 (restated) at Mar. 31, 2020 | $ 10,000,000 | (5,205) | (1,733,317) | (1,737,522) | ||
Ending Balance, shares at Mar. 31, 2020 | 1,000 | |||||
Foreign currency translation adjustment (restated) | (2,111) | (2,111) | ||||
Net loss for the period (restated) | (100,749) | (100,749) | ||||
Balance as of September 30, 2021 (restated) 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 (restated) | (20,629) | (20,629) | ||||
Net loss for the period (restated) | (112,657) | (112,657) | ||||
Balance as of September 30, 2021 (restated) at Sep. 30, 2020 | $ 1,000,000 | (27,945) | (1,946,723) | (1,973,668) | ||
Ending Balance, shares at Sep. 30, 2020 | 1,000 | |||||
Balance as of June 30, 2021 (restated) at Dec. 31, 2020 | $ 1,000,000 | $ 140,397,289 | 9,900 | (76,195) | (2,478,119) | (2,530,274) |
Beginning Balance, shares at Dec. 31, 2020 | 100 | 14,040 | ||||
Foreign currency translation adjustment (restated) | 35,050 | 35,050 | ||||
Net loss for the period (restated) | (306,002) | (306,002) | ||||
Balance as of September 30, 2021 (restated) at Mar. 31, 2021 | $ 1,000,000 | $ 140,397,289 | 9,900 | (41,145) | (2,784,121) | (2,801,226) |
Ending Balance, shares at Mar. 31, 2021 | 100 | 14,040 | ||||
Foreign currency translation adjustment (restated) | (4,675) | (4,675) | ||||
Net loss for the period (restated) | (398,275) | (398,275) | ||||
Balance as of September 30, 2021 (restated) at Jun. 30, 2021 | $ 1,000,000 | $ 140,397,289 | 9,900 | (45,820) | (3,182,396) | (3,204,176) |
Ending Balance, shares at Jun. 30, 2021 | 100 | 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 (restated) | 12,387 | 12,387 | ||||
Net loss for the period (restated) | (3,294,981) | (3,294,981) | ||||
Balance as of September 30, 2021 (restated) at Sep. 30, 2021 | $ 1,000,000 | $ 151,896,262 | $ 2,762,762 | $ (33,433) | $ (6,477,377) | $ (3,732,758) |
Ending Balance, shares at Sep. 30, 2021 | 100 | 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 October 2, 2020, The Doheny Group, LLC, the former shareholder of the Company, agreed to sell its 110,617,521 1,000,000 84.83 A Preferred Stock, and 91.41% of the voting power of all securities of the Company, which resulted in a change in control of BDIC On November 18, 2020, the Company executed a Share Exchange Agreement (the “Share Exchange Agreement”) with Leet Technology Limited (“LTL”) and its shareholders. Pursuant to the Share Exchange Agreement, The shareholders of LTL agreed to sell its aggregate of 10,000 ordinary shares representing 100 10,000,000 Because the Company was a shell company, LTL will comprise the ongoing operations of the combined entity and its senior management will serve as the senior management of the combined entity, LTL is deemed to be the accounting acquirer for accounting purposes. The transaction will be treated as a recapitalization of the Company. Accordingly, the consolidated assets, liabilities and results of operations of the Company will become the historical financial statements of LTL, and the Company’s assets, liabilities and results of operations will be consolidated with LTL beginning on the acquisition date. LTL was the legal acquiree but deemed to be the accounting acquirer. The Company was the legal acquirer but deemed to be the accounting acquiree in the reverse merger. The historical financial statements prior to the acquisition are those of the accounting acquirer (LTL). 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”). |
RESTATEMENT AND REVISION OF PRE
RESTATEMENT AND REVISION OF PREVIOUSLY REPORTED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | 9 Months Ended |
Sep. 30, 2021 | |
Restatement And Revision Of Previously Reported Condensed Consolidated Financial Statements | |
RESTATEMENT AND REVISION OF PREVIOUSLY REPORTED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | 2. RESTATEMENT AND REVISION OF PREVIOUSLY REPORTED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS As previously disclosed in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on March 28, 2022, the Board of Directors and the management of the Company concluded that it is appropriate to correct the Company’s previously issued unaudited condensed consolidated financial statements as of and for the three and nine months ended September 30, 2021, included in the Company’s Quarterly Report on Form 10-Q filed with the SEC on November 12, 2021, should be restated because of certain material errors and should no longer be relied upon. The Company has restated its previously reported unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2021 due to improper recognition of revenue and under accrued cost of revenue. The correction of the error reduced revenue recognized during the three and nine months ended September 30, 2021 by $60,071 and $160,093. respectively, as a result of the corrected transaction the accounts receivable was decreased by $159,684 correspondingly. In addition, the correction of the error increased the cost of revenue for the three and nine months ended September 30, 2021 by $27,727 and $27,727, respectively, as a result of the corrected transaction the accrued liabilities and other payables was increased by $ 27,727 The following table presents the effect of the error correction on the Company’s unaudited condensed consolidated balance sheet as of September 30, 2021, unaudited condensed consolidated statement of operations for the three and nine months ended September 30, 2021, and unaudited condensed consolidated statement of cash flows for the nine months ended September 30, 2021. Schedule Of Condensed Balance Sheet As of September 30, 2021 (unaudited) As Reported Adjustments As Restated ASSETS Current asset: Accounts receivable $ 171,769 (159,684 ) (a) $ 12,085 Total current assets 201,778 (159,684 ) (a) 42,094 TOTAL ASSETS $ 761,635 (159,684 ) $ 601,951 LIABILITIES AND STOCKHOLDERS’ DEFICIT Current liabilities: Accrued liabilities and other payables $ 453,522 (363,878 ) (b) $ 89,644 Accrued compensation payable to officers and directors – 344,373 (b) 344,373 Amounts due to related parties 3,306,447 47,232 (d) 3,353,679 Total current liabilities 4,304,023 27,727 (c) 4,331,750 TOTAL LIABILITIES $ 4,306,982 27,727 (c) $ 4,334,709 STOCKHOLDERS’ DEFICIT Accumulated other comprehensive loss $ (33,842 ) 409 (e) $ (33,433 ) Accumulated deficit (6,289,557 ) (187,820 ) (a), (c), (e) (6,477,377 ) Total stockholders’ deficit (3,545,347 ) (187,411 ) (3,732,758 ) TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT $ 761,635 (159,684 ) $ 601,951 Summary of Adjustments and Reclassifications: (a) Entry represents the adjustment on overstated accounts receivable due to improper recognition of revenue. (b) Entry represents the reclassification of certain accrued liabilities and other payables to accrued compensation payable to officers and directors. (c) Entry represents the adjustment on under accrued cost of revenue payable to a related party. (d) Entry represents the reclassification of certain accrued liabilities and other payables to amounts due to related parties plus item (c) above. (e) Entry represents the exchange currency translation adjustment Schedule Of Operation Three months ended September 30, 2021 (unaudited) Nine months ended September 30, 2021 (unaudited) As Reported Adjustments and Reclassifications As Restated As Reported Adjustments and Reclassifications As Restated Revenue $ 75,051 (60,071 ) (f) $ 14,980 $ 203,539 (160,093 ) (f) $ 43,446 Cost of revenue – (188,728 ) (g) (188,728 ) – (393,278 ) (g) (393,278 ) Gross profit (loss) 75,051 (248,799 ) (173,748 ) 203,539 (553,371 ) (349,832 ) Operating expenses: IT operating expenses (161,001 ) 161,001 (g) – (365,551 ) 365,551 (g) – Total operating expenses (3,282,798 ) 161,001 (g) (3,121,797 ) (4,016,073 ) 365,551 (g) (3,650,522 ) Loss from operations (3,207,747 ) (87,798 ) (f), (g) (3,295,545 ) (3,812,534 ) (187,820 ) (f), (g) (4,000,354 ) Other income: Interest income – – – – 76 (h) 76 Sundry income 564 – 564 1,096 (76 ) (h) 1,020 Total other income 564 – 564 1,096 – 1,096 LOSS BEFORE INCOME TAXES (3,207,183 ) (87,798 ) (3,294,981 ) (3,811,438 ) (187,820 ) (3,999,258 ) NET LOSS (3,207,183 ) (87,798 ) (3,294,981 ) (3,811,438 ) (187,820 ) (3,999,258 ) Other comprehensive income (loss): Foreign currency translation (loss) income 12,030 357 12,387 42,354 408 42,762 COMPREHENSIVE LOSS $ (3,195,153 ) $ (87,441 ) $ (3,282,594 ) $ (3,769,084 ) $ (187,412 ) $ (3,956,496 ) Summary of Adjustments and Reclassifications: (f) Entry represents the adjustment on improper recognition of revenue. (g) Entry represents the reclassification of IT operating expenses to cost of revenue plus item (c) above. (h) Entry represents the reclassification of sundry income to interest income. Schedule Of Condensed Cash Flow Statement Nine months ended September 30, 2021 (unaudited) As Reported Adjustments and Reclassifications (i) As Restated Cash flow from operating activities: Net loss $ (3,811,438 ) $ (187,820 ) $ (3,999,258 ) Adjustments to reconcile net loss to net cash used in operating activities Depreciation on plant and equipment 148,637 (134,787 ) 13,850 Amortization on intangible assets – 134,787 134,787 Right of use amortization – 3,801 3,801 Change in operating assets and liabilities: Accounts receivable (152,081 ) 159,684 7,603 Accrued liabilities and other payables 101,308 (63,228 ) 38,080 Accrued compensation payable to officers and directors – 63,228 63,228 Operating lease liabilities (71 ) (3,801 ) (3,872 ) Net cash used in operating activities (968,027 ) (28,136 ) (996,163 ) Cash flows from financing activities: Repayment to a related party – (316 ) (316 ) Advances from related parties 1,093,456 28,043 1,121,499 Net cash provided by financing activities 1,093,456 27,727 1,121,183 Effect on exchange rate change on cash $ 8,304 $ 409 $ 8,713 Summary of Adjustments and Reclassifications: (i) Adjustments and reclassifications were a result of the activity summarized in the restatement tables above. |
LIQUIDITY GOING CONCERN UNCERTA
LIQUIDITY GOING CONCERN UNCERTAINTIES | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
LIQUIDITY GOING CONCERN UNCERTAINTIES | 3. LIQUIDITY GOING CONCERN UNCERTAINTIES The accompanying unaudited 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 determined that certain factors raise substantial doubt about its ability to continue as a going concern for a least one year from the date of issuance of these consolidated financial statements. As of September 30, 2021, the Company had $ 18,958 4,289,656 6,477,377 3,999,258 The continuation of the Company as a going concern through the next twelve months is dependent upon the continued financial support from its stockholders and related parties. 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 for one year from the date of the filing of the financial statements. These and other factors raise substantial doubt about the Company’s ability to continue as a going concern. These unaudited 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 | 4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited condensed consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying unaudited condensed consolidated financial statements and notes. 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 (“US 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. Use of estimates and assumptions In preparing these unaudited condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements during the period reported. Actual results may differ from these estimates. Basis of consolidation The unaudited condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All inter-company balances and transactions within the Company have been eliminated upon consolidation. Cash Cash 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 Accounts receivable are recorded in accordance with ASC 310, “Receivables.” 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 creditworthiness 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 each quarter, 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. 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 Plant and equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses, if any. Leasehold improvements are amortized over the lessor of the based term of the lease or 5 years of the leasehold improvement. 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 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 and development costs Costs incurred to develop software for internal use are capitalized and amortized over the useful life of the software. Amortization of capitalized software development costs begin when the application is substantially complete and ready for its intended use. Capitalization ceases when the software has been tested and is ready for its intended use. Amortization is computed using the straight-line method over the estimated economic life of the product, which is estimated to be three years. Costs incurred during the planning, training and post-implementation stages of the software development life cycle are expensed as incurred. Research and development costs Research and development costs are expensed as incurred and consist of development work associated with our existing technology, customer solutions and processes. Our research and development expenses relate primarily to payroll costs for personnel, costs associated with various projects, including testing, development and other related expenses. 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, intangible assets, and right of use (“ROU”) 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 The revenue of the Company is currently generated from the provision of white label solutions and esports event management and team services. The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606 – Revenue from Contracts with Customers (“ASC 606”) when control of a product or service is transferred to a customer. 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. White Label Solutions Revenue The Company derives revenue from the provision of white label solutions. The Company offers white label, contracted licensed, solutions primarily to their information & communications technology (“ICT”) partners. The Company engages its ICT partners to utilize its Matchroom.net Platform. For customers who have their own platforms and apps being used, the Company will customize the design of Matchroom.net to meet the customer’s need and integrate, a customized solution into the customer’s system. The Matchroom.net platform and software solution is customizable to the specific needs of each customer and can be integrated across multiple platforms. On average it will take the Company three months to complete the customization of the platform for a customers use. The Company’s typical arrangement involves customizing the Matchroom.net platform solution, which requires technical programming support to build out the platform to its customers specifications. As a result, in analyzing the performance obligations being provided to the customer the Company considers the software license and customization services as a single performance obligation as required by ASC 606. In carrying out the services under these arrangements, the Company is often provided with upfront payment which is deferred and recognized into revenue over the duration of the contract. Esports Tournament Management and Team Services Revenue The Company derives revenue from esports tournament management and team services. The Company offers tournament management services to their customers, whereby they are engaged to provide the service of managing and hosting a tournament of the customer’s choice. The Company provides the required manpower and skills to host and manage an esports tournament on their own Matchroom.net platform or on the platform of the customer. The hosting and management of these tournaments on behalf of the customer is deemed to be one performance obligation and is met over the period of performance (couple of days) in which the tournament is held. The amount to be recognized as revenue equals the predetermined event management fee as per the agreement in place between the Company and the customer. The Company fulfils its performance obligation through the execution and completion of hosting the tournament, over the period of performance that being the multi-day tournament. The amount per the contract is based on the needs of the customer and the required level of manpower or skills needed for the relevant tournament. Apart from hosting the tournaments of other customers, the Company also hosts and managed their own internally held tournaments. The Company will obtain sponsorship agreements with other third-party entities whereby the Company commits to deliver certain sponsor and promotional services in exchange for consideration. Upon completion of the tournament a work completion report will be generated and communicated to the customer. Revenue will be recording pro rata during the duration of the tournament. The Company invoices its promotional partners based on the contracted services within the agreement. Disaggregation of Revenue The Company has disaggregated its revenue from contracts with customers into categories based on the nature of the revenue. The following table presents the revenue streams by segments, with the presentation revenue categories presented on the statements of operation for the periods indicated: Schedule of Disaggregation Of Revenue Nine months ended September 30, 2021 2020 White label solutions $ 15,469 $ 45,798 Esport tournament management and team services 16,491 18,315 Matchroom Mini-app solutions 11,486 351 $ 43,446 $ 64,464 Income taxes Income taxes are determined in accordance with the provisions of ASC Topic 740, Income Taxes (“ASC 740”). Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. For the three and nine months ended September 30, 2021 and 2020, the Company did no no The Company is subject to tax in local and foreign jurisdiction. As a result of its business activities, the Company files tax returns that are subject to examination by the relevant tax authorities. 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$") and the accompanying condensed consolidated financial statements have been expressed in US$. The functional currencies of the Company’s operating subsidiaries are their local currencies (Hong Kong Dollars (“HKD”) and Malaysian Ringgit (“MYR”)). HKD-denominated assets and liabilities are translated into the United States Dollar using the exchange rate at the balance sheet date ( 0.12843 0.12899 0.12876 0.12891 0.23898 0.24832 0.24226 0.23632 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 unaudited 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 The Company adopted Topic 842, “Leases” (“ASC 842”) and determines if an arrangement is a lease at inception. Operating leases are included in operating ROU assets, other current liabilities, and operating lease liabilities in our unaudited condensed consolidated balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in our unaudited 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. Stock based compensation The Company accounts for non-employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, Compensation—Stock Compensation, which requires all share-based payments to non-employees to be recognized in the financial statements based on their fair values. The fair value of the equity instrument is charged directly to compensation expense and credited to additional paid-in capital over the period during which services are rendered. 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 net income and net loss per share is the same as basic net income and net loss per share when their inclusion would have an anti-dilutive effect due to the continuing net losses. The following anti-dilutive equity and debt securities were excluded from the computation of net loss per share. Schedule of Earnings Per Share, Basic and Diluted As of September 30, 2021 2020 (Shares) (Shares) Warrants 1,650,288 4,130,160 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 unaudited 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 unaudited 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 any 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 The Carrying amounts for cash, accounts receivable, deposits receivable, accounts payable, accrued liabilities, and other payables approximate their fair value because of their short-term maturity. The Company determined that the carrying amount of accrued compensation payable to officers and directors and amounts due to related parties approximates fair value as these amounts are indicative of the amounts the company would expect to settle in current market exchange. Recent accounting pronouncements Accounting Standards Adopted 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 intra period 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. The Company is currently evaluating the impact and applicability of this new standard. Accounting Standards Issued, Not Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments 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. 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. |
PLANT AND EQUIPMENT
PLANT AND EQUIPMENT | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
PLANT AND EQUIPMENT | 5. PLANT AND EQUIPMENT Plant and equipment consisted of the following: Schedule of plant and equipment As of September 30, 2021 December 31, 2020 Computer equipment $ 165,028 $ 11,136 Furniture and fixtures 992 992 Leasehold improvements 12,618 12,618 Foreign currency translation difference (1,194 ) 364 177,444 25,110 Less: accumulated depreciation and amortization (30,591 ) (16,716 ) Less: foreign currency translation difference 388 (360 ) $ 147,241 $ 8,034 During the nine months ended September 30, 2021, the Company purchased computers and equipment of approximately $ 145,883 Depreciation and amortization expense for the three months ended September 30, 2021 and 2020 were $ 8,763 3,100 Depreciation and amortization 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 | 6. INTANGIBLE ASSETS Intangible assets consisted of the following: Schedule of intangible assets September 30, 2021 December 31, 2020 At cost: Developed software $ 539,899 $ 539,899 Foreign currency translation difference (2,128 ) 227 537,771 540,126 Less: accumulated amortization (134,851 ) – Less: foreign currency translation difference 408 – $ 403,328 $ 540,126 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 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 |
STOCKHOLDERS_ DEFICIT
STOCKHOLDERS’ DEFICIT | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS’ DEFICIT | 7. STOCKHOLDERS’ DEFICIT Preferred Stock The Company’s articles of incorporation authorize the Company to issue up to 20,000,000 0.0001 Series A Preferred Stock The Company has been authorized to issue 1,000,000 shares of Series A Preferred Stock. The Series A shares have the following preferences: no dividend rights; no liquidation preference over the Company’s common stock; no conversion rights; no redemption rights; no call rights by the Company; each share of Series A Preferred stock will have one hundred (100) votes on all matters validly brought to the Company’s common stockholders. Series B Convertible Preferred Stock The Company has authorized 10,000,000 each share of Series B Convertible Preferred Stock will have 1,000 votes on all matters validly brought to the Company’s common stock holders As of September 30, 2021 and December 31, 2020, the total number of Series A preferred shares issued or issuable was 1,000,000 0 As of September 30, 2021 and December 31, 2020, there was no 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 | 8. WARRANTS The Company issued common stock 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 follow: Schedule of warrant activity Weighted average Warrants for common shares Exercise price Remaining Outstanding as of December 31, 2019 4,130,160 0.70 1.78 Forfeited, cancelled, expired (50,000 ) 0.01 ( 0.99 ) Outstanding as of December 31, 2020 4,080,160 $ 0.71 0.79 Forfeited, cancelled, expired (2,429,872 ) 0.09 ( 0.43 ) Outstanding as of September 30, 2021 1,650,288 $ 0.80 0.36 There were 1,650,288 warrants exercisable at September 30, 2021 with a weighted average exercise price of $0.80. The intrinsic value of the warrants exercisable during the nine months ended September 30, 2021 and 2020 was $ 0 0 |
INCOME TAX
INCOME TAX | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | 9. INCOME TAX The Company recorded $ 0 At December 31, 2020, the Company has U.S. federal operating loss carryforwards of $ 4,127,053 3,421,796 1,480,887 At December 31, 2020, the Company’s subsidiary operating in Hong Kong has net operating loss carryforwards of $ 698,685 At December 31, 2020, the Company’s subsidiary operating in Malaysia has net operating loss of $ 1,551,826 The Company follows the provision of ASC 740 which prescribes a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements uncertain tax positions that the Company has taken or expects to take on a tax return. The Company did not have any unrecognized tax positions or benefits as of September 30, 2021 and December 31, 2020. The Company recognizes interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. We do not expect any material changes in our unrecognized tax benefits over the next 12 months. The Company’s ability to utilize U.S. net operating loss carryforwards to offset future taxable income may be deferred or limited significantly if the Company were to experience an “ownership change” as defined in section 382 of the Internal Revenue Code of 1986, as amended, and corresponding provisions of state law. In general, an ownership change occurs when the ownership of the Company’s stock by 5 percent or more shareholders “5-percent shareholders” exceeds 50 percentage points within a three-year period. We have not conducted a Section 382 study to determine whether the use of our U.S. net operating losses is limited. We may have experienced ownership changes in the past, and we may experience ownership changes in the future, some of which are outside our control. This could limit the amount of net operating losses that we can utilize annually to offset future taxable income or tax liabilities. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 10. RELATED PARTY TRANSACTIONS Related party balances consisted of the following: Schedule of Related Party Transactions As of September 30, 2021 December 31, 2020 Due to Porta Capital Limited (“Porta Capital”) $ 2,027,456 $ 1,868,833 Due to Bru Haas (B) Sdn Bhd (“Bru Haas (B)”) 1,144,140 326,665 Due to Bru Haas Sdn Bhd (“Bru Haas”) 150,562 26,910 Due to Tila Network Limited (“Tila Network”) 19,505 19,590 Due to Mr. Song Dai (“Mr. Song”) 12,016 12,025 $ 3,353,679 $ 2,254,023 Mr. Song is the director and major shareholder of the Company, and he is also the major shareholder of Porta Capital, Bru Haas (B), Bru Haas, and Tila Network. Amount due to these related companies are those trade and nontrade payables arising from transactions between the Company and the related companies, such as advances made by the related companies on behalf of the Company, and advances made by the Company on behalf of the related companies. Those advances are unsecured, non-interest bearing and have no fixed terms of repayment. The advances from Mr. Song is mainly for working capital purpose. The advances are unsecured, non-interest bearing and have no fixed terms of repayment. In the ordinary course of business, during the three and nine months ended September 30, 2021 and 2020, the Company involved with certain transactions, either at cost or current market prices and on the normal commercial terms among related parties. For the three months ended September 30, 2021 and 2020, the Company paid research and development consulting fee to Porta Capital of $ 9,064 23,978 For the three months ended September 30, 2021 and 2020, the Company paid Matchroom platform server rent expense to Porta Capital of $ 36,097 19,737 For the nine months ended September 30, 2021 and 2020, the Company paid research and development consulting fee to Porta Capital of $ 27,170 23,978 For the nine months ended September 30, 2021 and 2020, the Company paid Matchroom platform server rent expense to Porta Capital of $ 87,849 59,214 For the three months ended September 30, 2021 and 2020, the Company paid $ 116,825 0 For the nine months ended September 30, 2021 and 2020, the Company paid $ 205,120 0 Both platform server rent expense and network bandwidth expense are recorded in the cost of revenue. |
CONCENTRATIONS OF RISK (RESTATE
CONCENTRATIONS OF RISK (RESTATED) | 9 Months Ended |
Sep. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS OF RISK (RESTATED) | 11. CONCENTRATIONS OF RISK (RESTATED) The Company is exposed to the following concentrations of risk: (a) Major customers For the three months ended September 30, 2021, 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, 2021 September 30, 2021 Customers Revenues Percentage Accounts Customer A $ 5,149 34 $ 3,538 Customer B 5,514 37 8,547 Total: $ 10,663 71 Total: $ 12,085 For the nine months ended September 30, 2021, 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: Nine months ended September 30, 2021 September 30, 2021 Customers Revenues Percentage Accounts Customer A $ 15,469 36 $ 3,538 Customer B 8,508 19 8,547 Total: $ 23,977 55 Total: $ 12,085 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: Three months ended September 30, 2020 September 30, 2020 Customers Revenues Percentage Accounts Customer A $ 5,250 30 $ 1,724 Customer B 12,064 69 15,257 Total: $ 17,314 99 Total: $ 16,981 Nine months ended September 30, 2020 September 30, 2020 Customers Revenues Percentage Accounts Customer A $ 35,807 56 $ 1,724 Customer B 15,101 23 15,257 Customer C 9,991 15 – Total: $ 60,899 94 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. (d) Concentration of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash. The Company maintains cash with various financial institutions in Hong Kong and Malaysia. Cash are maintained with high credit quality institutions, the composition and maturities of which are regularly monitored by management. The Hong Kong Deposit Protection Board and Perbadanan Insurans Deposit Malaysia (“PIDM”) pays compensation up to a limit of HK$ 500,000 250,000 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 12. COMMITMENTS AND CONTINGENCIES The Company from time to time may be involved in legal proceedings and disputes arising in the normal course of business. The Company believes that there are no material claims or actions pending or threatened against the Company. On April 28, 2021, the Company entered into a financial advisory agreement, (“the agreement”) with Maxim Group, LLC (“Maxim”), a leading full-service investment banking, securities and wealth management firm, pursuant to which Maxim will provide certain advisory services including strategic corporate planning, capitalization, and marketing. Additionally, Maxim, will advise the Company with respect to its objective to list on a national securities exchange. As consideration for Maxim’s services pursuant to the agreement, the Company agreed to issue restricted shares of the Company’s common stock to Maxim equal to 2% of the outstanding shares of the Company’s Common Stock. As mentioned in Note 7, the Company issued 1,403,973 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 13. SUBSEQUENT EVENTS 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. The right of the Company to commence sales under the Purchase Agreement is subject to the satisfaction of certain conditions including but not limited to a Registration Statement covering the resale of the shares being declared effective under the Securities Act by the SEC, and no stop order with respect to the Registration Statement shall be pending or threatened by the SEC. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | 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 (“US 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. |
Use of estimates and assumptions | Use of estimates and assumptions In preparing these unaudited condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements during the period reported. Actual results may differ from these estimates. |
Basis of consolidation | Basis of consolidation The unaudited condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All inter-company balances and transactions within the Company have been eliminated upon consolidation. |
Cash | Cash Cash 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 | Accounts receivable Accounts receivable are recorded in accordance with ASC 310, “Receivables.” 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 creditworthiness 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 each quarter, 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. 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 | Plant and equipment Plant and equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses, if any. Leasehold improvements are amortized over the lessor of the based term of the lease or 5 years of the leasehold improvement. 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 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 and development costs | Software and development costs Costs incurred to develop software for internal use are capitalized and amortized over the useful life of the software. Amortization of capitalized software development costs begin when the application is substantially complete and ready for its intended use. Capitalization ceases when the software has been tested and is ready for its intended use. Amortization is computed using the straight-line method over the estimated economic life of the product, which is estimated to be three years. Costs incurred during the planning, training and post-implementation stages of the software development life cycle are expensed as incurred. |
Research and development costs | Research and development costs Research and development costs are expensed as incurred and consist of development work associated with our existing technology, customer solutions and processes. Our research and development expenses relate primarily to payroll costs for personnel, costs associated with various projects, including testing, development and other related expenses. |
Impairment of long-lived assets | 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, intangible assets, and right of use (“ROU”) 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 | Revenue recognition The revenue of the Company is currently generated from the provision of white label solutions and esports event management and team services. The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606 – Revenue from Contracts with Customers (“ASC 606”) when control of a product or service is transferred to a customer. 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. White Label Solutions Revenue The Company derives revenue from the provision of white label solutions. The Company offers white label, contracted licensed, solutions primarily to their information & communications technology (“ICT”) partners. The Company engages its ICT partners to utilize its Matchroom.net Platform. For customers who have their own platforms and apps being used, the Company will customize the design of Matchroom.net to meet the customer’s need and integrate, a customized solution into the customer’s system. The Matchroom.net platform and software solution is customizable to the specific needs of each customer and can be integrated across multiple platforms. On average it will take the Company three months to complete the customization of the platform for a customers use. The Company’s typical arrangement involves customizing the Matchroom.net platform solution, which requires technical programming support to build out the platform to its customers specifications. As a result, in analyzing the performance obligations being provided to the customer the Company considers the software license and customization services as a single performance obligation as required by ASC 606. In carrying out the services under these arrangements, the Company is often provided with upfront payment which is deferred and recognized into revenue over the duration of the contract. Esports Tournament Management and Team Services Revenue The Company derives revenue from esports tournament management and team services. The Company offers tournament management services to their customers, whereby they are engaged to provide the service of managing and hosting a tournament of the customer’s choice. The Company provides the required manpower and skills to host and manage an esports tournament on their own Matchroom.net platform or on the platform of the customer. The hosting and management of these tournaments on behalf of the customer is deemed to be one performance obligation and is met over the period of performance (couple of days) in which the tournament is held. The amount to be recognized as revenue equals the predetermined event management fee as per the agreement in place between the Company and the customer. The Company fulfils its performance obligation through the execution and completion of hosting the tournament, over the period of performance that being the multi-day tournament. The amount per the contract is based on the needs of the customer and the required level of manpower or skills needed for the relevant tournament. Apart from hosting the tournaments of other customers, the Company also hosts and managed their own internally held tournaments. The Company will obtain sponsorship agreements with other third-party entities whereby the Company commits to deliver certain sponsor and promotional services in exchange for consideration. Upon completion of the tournament a work completion report will be generated and communicated to the customer. Revenue will be recording pro rata during the duration of the tournament. The Company invoices its promotional partners based on the contracted services within the agreement. Disaggregation of Revenue The Company has disaggregated its revenue from contracts with customers into categories based on the nature of the revenue. The following table presents the revenue streams by segments, with the presentation revenue categories presented on the statements of operation for the periods indicated: Schedule of Disaggregation Of Revenue Nine months ended September 30, 2021 2020 White label solutions $ 15,469 $ 45,798 Esport tournament management and team services 16,491 18,315 Matchroom Mini-app solutions 11,486 351 $ 43,446 $ 64,464 |
Income taxes | Income taxes Income taxes are determined in accordance with the provisions of ASC Topic 740, Income Taxes (“ASC 740”). Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. For the three and nine months ended September 30, 2021 and 2020, the Company did no no The Company is subject to tax in local and foreign jurisdiction. As a result of its business activities, the Company files tax returns that are subject to examination by the relevant tax authorities. |
Foreign currencies translation | 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$") and the accompanying condensed consolidated financial statements have been expressed in US$. The functional currencies of the Company’s operating subsidiaries are their local currencies (Hong Kong Dollars (“HKD”) and Malaysian Ringgit (“MYR”)). HKD-denominated assets and liabilities are translated into the United States Dollar using the exchange rate at the balance sheet date ( 0.12843 0.12899 0.12876 0.12891 0.23898 0.24832 0.24226 0.23632 |
Comprehensive income | 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 unaudited 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 | 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 ROU assets, other current liabilities, and operating lease liabilities in our unaudited condensed consolidated balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in our unaudited 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. |
Stock based compensation | Stock based compensation The Company accounts for non-employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, Compensation—Stock Compensation, which requires all share-based payments to non-employees to be recognized in the financial statements based on their fair values. The fair value of the equity instrument is charged directly to compensation expense and credited to additional paid-in capital over the period during which services are rendered. |
Net loss per share | 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 net income and net loss per share is the same as basic net income and net loss per share when their inclusion would have an anti-dilutive effect due to the continuing net losses. The following anti-dilutive equity and debt securities were excluded from the computation of net loss per share. Schedule of Earnings Per Share, Basic and Diluted As of September 30, 2021 2020 (Shares) (Shares) Warrants 1,650,288 4,130,160 |
Commitments and contingencies | 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 unaudited 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 unaudited 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 any 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 | Fair value of financial instruments The Carrying amounts for cash, accounts receivable, deposits receivable, accounts payable, accrued liabilities, and other payables approximate their fair value because of their short-term maturity. The Company determined that the carrying amount of accrued compensation payable to officers and directors and amounts due to related parties approximates fair value as these amounts are indicative of the amounts the company would expect to settle in current market exchange. |
Recent accounting pronouncements | Recent accounting pronouncements Accounting Standards Adopted 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 intra period 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. The Company is currently evaluating the impact and applicability of this new standard. Accounting Standards Issued, Not Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments 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. 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. |
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 |
RESTATEMENT AND REVISION OF P_2
RESTATEMENT AND REVISION OF PREVIOUSLY REPORTED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Restatement And Revision Of Previously Reported Condensed Consolidated Financial Statements | |
Schedule Of Condensed Balance Sheet | Schedule Of Condensed Balance Sheet As of September 30, 2021 (unaudited) As Reported Adjustments As Restated ASSETS Current asset: Accounts receivable $ 171,769 (159,684 ) (a) $ 12,085 Total current assets 201,778 (159,684 ) (a) 42,094 TOTAL ASSETS $ 761,635 (159,684 ) $ 601,951 LIABILITIES AND STOCKHOLDERS’ DEFICIT Current liabilities: Accrued liabilities and other payables $ 453,522 (363,878 ) (b) $ 89,644 Accrued compensation payable to officers and directors – 344,373 (b) 344,373 Amounts due to related parties 3,306,447 47,232 (d) 3,353,679 Total current liabilities 4,304,023 27,727 (c) 4,331,750 TOTAL LIABILITIES $ 4,306,982 27,727 (c) $ 4,334,709 STOCKHOLDERS’ DEFICIT Accumulated other comprehensive loss $ (33,842 ) 409 (e) $ (33,433 ) Accumulated deficit (6,289,557 ) (187,820 ) (a), (c), (e) (6,477,377 ) Total stockholders’ deficit (3,545,347 ) (187,411 ) (3,732,758 ) TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT $ 761,635 (159,684 ) $ 601,951 |
Schedule Of Operation | Schedule Of Operation Three months ended September 30, 2021 (unaudited) Nine months ended September 30, 2021 (unaudited) As Reported Adjustments and Reclassifications As Restated As Reported Adjustments and Reclassifications As Restated Revenue $ 75,051 (60,071 ) (f) $ 14,980 $ 203,539 (160,093 ) (f) $ 43,446 Cost of revenue – (188,728 ) (g) (188,728 ) – (393,278 ) (g) (393,278 ) Gross profit (loss) 75,051 (248,799 ) (173,748 ) 203,539 (553,371 ) (349,832 ) Operating expenses: IT operating expenses (161,001 ) 161,001 (g) – (365,551 ) 365,551 (g) – Total operating expenses (3,282,798 ) 161,001 (g) (3,121,797 ) (4,016,073 ) 365,551 (g) (3,650,522 ) Loss from operations (3,207,747 ) (87,798 ) (f), (g) (3,295,545 ) (3,812,534 ) (187,820 ) (f), (g) (4,000,354 ) Other income: Interest income – – – – 76 (h) 76 Sundry income 564 – 564 1,096 (76 ) (h) 1,020 Total other income 564 – 564 1,096 – 1,096 LOSS BEFORE INCOME TAXES (3,207,183 ) (87,798 ) (3,294,981 ) (3,811,438 ) (187,820 ) (3,999,258 ) NET LOSS (3,207,183 ) (87,798 ) (3,294,981 ) (3,811,438 ) (187,820 ) (3,999,258 ) Other comprehensive income (loss): Foreign currency translation (loss) income 12,030 357 12,387 42,354 408 42,762 COMPREHENSIVE LOSS $ (3,195,153 ) $ (87,441 ) $ (3,282,594 ) $ (3,769,084 ) $ (187,412 ) $ (3,956,496 ) |
Schedule Of Condensed Cash Flow Statement | Schedule Of Condensed Cash Flow Statement Nine months ended September 30, 2021 (unaudited) As Reported Adjustments and Reclassifications (i) As Restated Cash flow from operating activities: Net loss $ (3,811,438 ) $ (187,820 ) $ (3,999,258 ) Adjustments to reconcile net loss to net cash used in operating activities Depreciation on plant and equipment 148,637 (134,787 ) 13,850 Amortization on intangible assets – 134,787 134,787 Right of use amortization – 3,801 3,801 Change in operating assets and liabilities: Accounts receivable (152,081 ) 159,684 7,603 Accrued liabilities and other payables 101,308 (63,228 ) 38,080 Accrued compensation payable to officers and directors – 63,228 63,228 Operating lease liabilities (71 ) (3,801 ) (3,872 ) Net cash used in operating activities (968,027 ) (28,136 ) (996,163 ) Cash flows from financing activities: Repayment to a related party – (316 ) (316 ) Advances from related parties 1,093,456 28,043 1,121,499 Net cash provided by financing activities 1,093,456 27,727 1,121,183 Effect on exchange rate change on cash $ 8,304 $ 409 $ 8,713 |
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 |
Schedule of Disaggregation Of Revenue | Schedule of Disaggregation Of Revenue Nine months ended September 30, 2021 2020 White label solutions $ 15,469 $ 45,798 Esport tournament management and team services 16,491 18,315 Matchroom Mini-app solutions 11,486 351 $ 43,446 $ 64,464 |
Schedule of Earnings Per Share, Basic and Diluted | Schedule of Earnings Per Share, Basic and Diluted As of September 30, 2021 2020 (Shares) (Shares) Warrants 1,650,288 4,130,160 |
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 Computer equipment $ 165,028 $ 11,136 Furniture and fixtures 992 992 Leasehold improvements 12,618 12,618 Foreign currency translation difference (1,194 ) 364 177,444 25,110 Less: accumulated depreciation and amortization (30,591 ) (16,716 ) Less: foreign currency 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 September 30, 2021 December 31, 2020 At cost: Developed software $ 539,899 $ 539,899 Foreign currency translation difference (2,128 ) 227 537,771 540,126 Less: accumulated amortization (134,851 ) – Less: foreign currency 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 |
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 Outstanding as of December 31, 2019 4,130,160 0.70 1.78 Forfeited, cancelled, expired (50,000 ) 0.01 ( 0.99 ) Outstanding as of December 31, 2020 4,080,160 $ 0.71 0.79 Forfeited, cancelled, expired (2,429,872 ) 0.09 ( 0.43 ) Outstanding as of September 30, 2021 1,650,288 $ 0.80 0.36 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Schedule of Related Party Transactions As of September 30, 2021 December 31, 2020 Due to Porta Capital Limited (“Porta Capital”) $ 2,027,456 $ 1,868,833 Due to Bru Haas (B) Sdn Bhd (“Bru Haas (B)”) 1,144,140 326,665 Due to Bru Haas Sdn Bhd (“Bru Haas”) 150,562 26,910 Due to Tila Network Limited (“Tila Network”) 19,505 19,590 Due to Mr. Song Dai (“Mr. Song”) 12,016 12,025 $ 3,353,679 $ 2,254,023 |
CONCENTRATIONS OF RISK (RESTA_2
CONCENTRATIONS OF RISK (RESTATED) (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, 2021 September 30, 2021 Customers Revenues Percentage Accounts Customer A $ 5,149 34 $ 3,538 Customer B 5,514 37 8,547 Total: $ 10,663 71 Total: $ 12,085 For the nine months ended September 30, 2021, 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: Nine months ended September 30, 2021 September 30, 2021 Customers Revenues Percentage Accounts Customer A $ 15,469 36 $ 3,538 Customer B 8,508 19 8,547 Total: $ 23,977 55 Total: $ 12,085 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: Three months ended September 30, 2020 September 30, 2020 Customers Revenues Percentage Accounts Customer A $ 5,250 30 $ 1,724 Customer B 12,064 69 15,257 Total: $ 17,314 99 Total: $ 16,981 Nine months ended September 30, 2020 September 30, 2020 Customers Revenues Percentage Accounts Customer A $ 35,807 56 $ 1,724 Customer B 15,101 23 15,257 Customer C 9,991 15 – Total: $ 60,899 94 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% |
DESCRIPTION OF BUSINESS AND O_4
DESCRIPTION OF BUSINESS AND ORGANIZATION (Details Narrative) - shares | Oct. 02, 2020 | Sep. 30, 2021 | Nov. 18, 2020 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Preferred stock voting rights | A Preferred Stock, and 91.41% of the voting power of all securities of the Company, which resulted in a change in control of BDIC | ||
Series A Preferred Stock [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Preferred stock voting rights | A Preferred stock will have one hundred (100) votes on all matters validly brought to the Company’s common stockholders. | ||
Doheny Group L L C [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Number of shares sold | 110,617,521 | ||
Doheny Group L L C [Member] | Series A Preferred Stock [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Number of shares sold | 1,000,000 | ||
Leet Technology Limited [Member] | Share Exchange Agreement [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Ownership percent | 84.83% | 100.00% | |
Stock issued for acquisition, shares | 10,000,000 |
RESTATEMENT AND REVISION OF P_3
RESTATEMENT AND REVISION OF PREVIOUSLY REPORTED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Details - Balance Sheet) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Current asset: | ||||||||
Accounts receivable | $ 12,085 | $ 20,630 | ||||||
Total current assets | 42,094 | 62,512 | ||||||
TOTAL ASSETS | 601,951 | 613,690 | ||||||
Current liabilities: | ||||||||
Accrued liabilities and other payables | 89,644 | 53,720 | ||||||
Accrued compensation payable to officers and directors | 344,373 | 293,020 | ||||||
Amounts due to related parties | 3,353,679 | 2,254,023 | ||||||
Total current liabilities | 4,331,750 | 3,143,964 | ||||||
TOTAL LIABILITIES | 4,334,709 | 3,143,964 | ||||||
STOCKHOLDERS’ DEFICIT | ||||||||
Accumulated other comprehensive loss | (33,433) | (76,195) | ||||||
Accumulated deficit | (6,477,377) | (2,478,119) | ||||||
Total stockholders’ deficit | (3,732,758) | $ (3,204,176) | $ (2,801,226) | (2,530,274) | $ (1,973,668) | $ (1,840,382) | $ (1,737,522) | $ (1,638,952) |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | 601,951 | $ 613,690 | ||||||
As Reported [Member] | ||||||||
Current asset: | ||||||||
Accounts receivable | 171,769 | |||||||
Total current assets | 201,778 | |||||||
TOTAL ASSETS | 761,635 | |||||||
Current liabilities: | ||||||||
Accrued liabilities and other payables | 453,522 | |||||||
Accrued compensation payable to officers and directors | 0 | |||||||
Amounts due to related parties | 3,306,447 | |||||||
Total current liabilities | 4,304,023 | |||||||
TOTAL LIABILITIES | 4,306,982 | |||||||
STOCKHOLDERS’ DEFICIT | ||||||||
Accumulated other comprehensive loss | (33,842) | |||||||
Accumulated deficit | (6,289,557) | |||||||
Total stockholders’ deficit | (3,545,347) | |||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | 761,635 | |||||||
Revision of Prior Period, Adjustment [Member] | ||||||||
Current asset: | ||||||||
Accounts receivable | (159,684) | |||||||
Total current assets | (159,684) | |||||||
TOTAL ASSETS | (159,684) | |||||||
Current liabilities: | ||||||||
Accrued liabilities and other payables | (363,878) | |||||||
Accrued compensation payable to officers and directors | 344,373 | |||||||
Amounts due to related parties | 47,232 | |||||||
Total current liabilities | 27,727 | |||||||
TOTAL LIABILITIES | 27,727 | |||||||
STOCKHOLDERS’ DEFICIT | ||||||||
Accumulated other comprehensive loss | 409 | |||||||
Accumulated deficit | (187,820) | |||||||
Total stockholders’ deficit | (187,411) | |||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | (159,684) | |||||||
As Restated [Member] | ||||||||
Current asset: | ||||||||
Accounts receivable | 12,085 | |||||||
Total current assets | 42,094 | |||||||
TOTAL ASSETS | 601,951 | |||||||
Current liabilities: | ||||||||
Accrued liabilities and other payables | 89,644 | |||||||
Accrued compensation payable to officers and directors | 344,373 | |||||||
Amounts due to related parties | 3,353,679 | |||||||
Total current liabilities | 4,331,750 | |||||||
TOTAL LIABILITIES | 4,334,709 | |||||||
STOCKHOLDERS’ DEFICIT | ||||||||
Accumulated other comprehensive loss | (33,433) | |||||||
Accumulated deficit | (6,477,377) | |||||||
Total stockholders’ deficit | (3,732,758) | |||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | $ 601,951 |
RESTATEMENT AND REVISION OF P_4
RESTATEMENT AND REVISION OF PREVIOUSLY REPORTED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Details- Operation) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue | $ 14,980 | $ 17,387 | $ 43,446 | $ 64,464 |
Cost of revenue | (188,728) | (26,221) | (393,278) | (102,472) |
Gross profit (loss) | (173,748) | (8,834) | (349,832) | (38,008) |
Operating expenses: | ||||
Total operating expenses | (3,121,797) | (109,034) | (3,650,522) | (305,133) |
Loss from operations | (3,295,545) | (117,868) | (4,000,354) | (343,141) |
Other income: | ||||
Interest income | 0 | 0 | 76 | 0 |
Sundry income | 564 | 5,211 | 1,020 | 15,257 |
Total other income | 564 | 5,211 | 1,096 | 15,257 |
LOSS BEFORE INCOME TAXES | 0 | 0 | 0 | 0 |
NET LOSS | (3,294,981) | (112,657) | (3,999,258) | (327,884) |
Other comprehensive income (loss): | ||||
Foreign currency translation (loss) income | 12,387 | (20,629) | 42,762 | (6,832) |
COMPREHENSIVE LOSS | (3,282,594) | $ (133,286) | (3,956,496) | $ (334,716) |
As Reported [Member] | ||||
Revenue | 75,051 | 203,539 | ||
Cost of revenue | 0 | 0 | ||
Gross profit (loss) | 75,051 | 203,539 | ||
Operating expenses: | ||||
IT operating expenses | (161,001) | (365,551) | ||
Total operating expenses | (3,282,798) | (4,016,073) | ||
Loss from operations | (3,207,747) | (3,812,534) | ||
Other income: | ||||
Interest income | 0 | 0 | ||
Sundry income | 564 | 1,096 | ||
Total other income | 564 | 1,096 | ||
LOSS BEFORE INCOME TAXES | (3,207,183) | (3,811,438) | ||
NET LOSS | (3,207,183) | (3,811,438) | ||
Other comprehensive income (loss): | ||||
Foreign currency translation (loss) income | 12,030 | 42,354 | ||
COMPREHENSIVE LOSS | (3,195,153) | (3,769,084) | ||
Revision of Prior Period, Adjustment [Member] | ||||
Revenue | (60,071) | (160,093) | ||
Cost of revenue | (188,728) | (393,278) | ||
Gross profit (loss) | (248,799) | (553,371) | ||
Operating expenses: | ||||
IT operating expenses | 161,001 | 365,551 | ||
Total operating expenses | 161,001 | 365,551 | ||
Loss from operations | (87,798) | (187,820) | ||
Other income: | ||||
Interest income | 0 | 76 | ||
Sundry income | 0 | (76) | ||
Total other income | 0 | 0 | ||
LOSS BEFORE INCOME TAXES | (87,798) | (187,820) | ||
NET LOSS | (87,798) | (187,820) | ||
Other comprehensive income (loss): | ||||
Foreign currency translation (loss) income | 357 | 408 | ||
COMPREHENSIVE LOSS | (87,441) | (187,412) | ||
As Restated [Member] | ||||
Revenue | 14,980 | 43,446 | ||
Cost of revenue | (188,728) | (393,278) | ||
Gross profit (loss) | (173,748) | (349,832) | ||
Operating expenses: | ||||
IT operating expenses | 0 | 0 | ||
Total operating expenses | (3,121,797) | (3,650,522) | ||
Loss from operations | (3,295,545) | (4,000,354) | ||
Other income: | ||||
Interest income | 0 | 76 | ||
Sundry income | 564 | 1,020 | ||
Total other income | 564 | 1,096 | ||
LOSS BEFORE INCOME TAXES | (3,294,981) | (3,999,258) | ||
NET LOSS | (3,294,981) | (3,999,258) | ||
Other comprehensive income (loss): | ||||
Foreign currency translation (loss) income | 12,387 | 42,762 | ||
COMPREHENSIVE LOSS | $ (3,282,594) | $ (3,956,496) |
RESTATEMENT AND REVISION OF P_5
RESTATEMENT AND REVISION OF PREVIOUSLY REPORTED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Details - Cash Flow) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flow from operating activities: | ||||
Net loss | $ (3,294,981) | $ (112,657) | $ (3,999,258) | $ (327,884) |
Adjustments to reconcile net loss to net cash used in operating activities | ||||
Amortization on intangible assets | 44,865 | $ 0 | 134,787 | 0 |
Right of use amortization | 3,801 | 3,693 | ||
Change in operating assets and liabilities: | ||||
Accounts receivable | 7,603 | 65,749 | ||
Accrued liabilities and other payables | 38,080 | (52,769) | ||
Accrued compensation payable to officers and directors | 63,228 | 61,642 | ||
Operating lease liabilities | (3,872) | (3,725) | ||
Net cash used in operating activities | (996,163) | (190,074) | ||
Cash flows from financing activities: | ||||
Repayment to a related party | (316) | 0 | ||
Advances from related parties | 1,121,499 | 252,234 | ||
Net cash provided by financing activities | 1,121,183 | 252,234 | ||
Effect on exchange rate change on cash | 8,713 | $ (96,818) | ||
As Reported [Member] | ||||
Cash flow from operating activities: | ||||
Net loss | (3,207,183) | (3,811,438) | ||
Adjustments to reconcile net loss to net cash used in operating activities | ||||
Depreciation on plant and equipment | 148,637 | |||
Amortization on intangible assets | 0 | |||
Right of use amortization | 0 | |||
Change in operating assets and liabilities: | ||||
Accounts receivable | 152,081 | |||
Accrued liabilities and other payables | 101,308 | |||
Accrued compensation payable to officers and directors | 0 | |||
Operating lease liabilities | (71) | |||
Net cash used in operating activities | (968,027) | |||
Cash flows from financing activities: | ||||
Repayment to a related party | 0 | |||
Advances from related parties | 1,093,456 | |||
Net cash provided by financing activities | 1,093,456 | |||
Effect on exchange rate change on cash | 8,304 | |||
Revision of Prior Period, Adjustment [Member] | ||||
Cash flow from operating activities: | ||||
Net loss | (87,798) | (187,820) | ||
Adjustments to reconcile net loss to net cash used in operating activities | ||||
Depreciation on plant and equipment | (134,787) | |||
Amortization on intangible assets | 134,787 | |||
Right of use amortization | 3,801 | |||
Change in operating assets and liabilities: | ||||
Accounts receivable | (159,684) | |||
Accrued liabilities and other payables | (63,228) | |||
Accrued compensation payable to officers and directors | 63,228 | |||
Operating lease liabilities | (3,801) | |||
Net cash used in operating activities | (28,136) | |||
Cash flows from financing activities: | ||||
Repayment to a related party | (316) | |||
Advances from related parties | 28,043 | |||
Net cash provided by financing activities | 27,727 | |||
Effect on exchange rate change on cash | 409 | |||
As Restated [Member] | ||||
Cash flow from operating activities: | ||||
Net loss | $ (3,294,981) | (3,999,258) | ||
Adjustments to reconcile net loss to net cash used in operating activities | ||||
Depreciation on plant and equipment | 13,850 | |||
Amortization on intangible assets | 134,787 | |||
Right of use amortization | 3,801 | |||
Change in operating assets and liabilities: | ||||
Accounts receivable | (7,603) | |||
Accrued liabilities and other payables | 38,080 | |||
Accrued compensation payable to officers and directors | 63,228 | |||
Operating lease liabilities | (3,872) | |||
Net cash used in operating activities | (996,163) | |||
Cash flows from financing activities: | ||||
Repayment to a related party | (316) | |||
Advances from related parties | 1,121,499 | |||
Net cash provided by financing activities | 1,121,183 | |||
Effect on exchange rate change on cash | $ 8,713 |
RESTATEMENT AND REVISION OF P_6
RESTATEMENT AND REVISION OF PREVIOUSLY REPORTED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Details Narrative) | Sep. 30, 2021USD ($) |
Restatement And Revision Of Previously Reported Condensed Consolidated Financial Statements | |
Accrued liabilities and other payables | $ 27,727 |
LIQUIDITY GOING CONCERN UNCER_2
LIQUIDITY GOING CONCERN UNCERTAINTIES (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Cash | $ 18,958 | $ 38,985 |
Working capital deficit | 4,289,656 | |
Accumulated deficit | 6,477,377 | $ 2,478,119 |
Net loss | $ 3,999,258 |
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 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Schedule of Disaggregation Of Revenue) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue from contract | $ 43,446 | $ 64,464 |
White Label Solutions [Member] | ||
Revenue from contract | 15,469 | 45,798 |
Esport Tournament [Member] | ||
Revenue from contract | 16,491 | 18,315 |
Matchroom Mini App Solutions [Member] | ||
Revenue from contract | $ 11,486 | $ 351 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Schedule of Net Loss Per Share) - shares | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti dilutive shares | 1,650,288 | 4,130,160 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 9 Months Ended | ||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Intercompany Foreign Currency Balance [Line Items] | |||
Allowance for doubtful accounts | $ 0 | $ 0 | |
Impairment of long-lived assets | 0 | $ 0 | |
Interest and penalties | 0 | 0 | |
Unrecognized uncertain tax positions. | $ 0 | $ 0 | |
Periodend [Member] | Hong Kong, Dollars | |||
Intercompany Foreign Currency Balance [Line Items] | |||
Exchange rate | 0.12843 | 0.12899 | |
Periodend [Member] | Malaysia, Ringgits | |||
Intercompany Foreign Currency Balance [Line Items] | |||
Exchange rate | 0.23898 | 0.24832 | |
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 |
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 | |
Asset Acquisition [Line Items] | ||||
Depreciation expense | $ 8,763 | $ 3,100 | $ 13,850 | $ 3,100 |
Bru Haas Consultant [Member] | ||||
Asset Acquisition [Line Items] | ||||
Property, Plant and Equipment, Additions | $ 145,883 |
INTANGIBLE ASSETS (Details - Sc
INTANGIBLE ASSETS (Details - Schedule of intangible assets) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite lived intangible asset | $ 537,771 | $ 540,126 |
Foreign translation difference | (2,128) | 227 |
Less: accumulated amortization | (134,851) | 0 |
Less: foreign translation difference | 408 | 0 |
Intangible assets, cost | 403,328 | 540,126 |
Developed Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite lived intangible asset | $ 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 |
STOCKHOLDERS_ DEFICIT (Details
STOCKHOLDERS’ DEFICIT (Details Narrative) - $ / shares | Oct. 02, 2020 | Sep. 30, 2021 | Dec. 31, 2020 |
Class of Stock [Line Items] | |||
Preferred stock, voting rights | A Preferred Stock, and 91.41% of the voting power of all securities of the Company, which resulted in a change in control of BDIC | ||
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 | |
Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 20,000,000 | 20,000,000 | |
Preferred stock, par value | $ 0.0001 | $ 0.0001 | |
Series A Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 20,000,000 | 20,000,000 | |
Preferred stock, par value | $ 0.0001 | $ 0.0001 | |
Preferred stock, voting rights | A Preferred stock will have one hundred (100) votes on all matters validly brought to the Company’s common stockholders. | ||
Series B Convertible Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 10,000,000 | ||
Preferred stock, voting rights | each share of Series B Convertible Preferred Stock will have 1,000 votes on all matters validly brought to the Company’s common stock holders | ||
Series B Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | |
Preferred stock, par value | $ 0.0001 | $ 0.0001 | |
Preferred stock issuable | 1,000,000 | 0 | |
Series B Preferred Shares [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 0 | 0 |
WARRANTS (Details - Schedule of
WARRANTS (Details - Schedule of Warrant Activity) - $ / shares | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Remaining Contractual Life | 5 months 4 days | 11 months 26 days | |
Warrant [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Warrants for common shares, outstanding, beginning balance | 4,080,160 | 4,130,160 | |
Warrants for common shares, outstanding, beginning balance | $ 0.71 | $ 0.70 | |
Weighted Average Remaining Contractual Life Warrants Outstanding | 4 months 9 days | 9 months 14 days | 1 year 9 months 10 days |
Warrants for common shares, Forfeited, cancelled, expired | (2,429,872) | (50,000) | |
Weighted average exercise price, Forfeited, cancelled, expired | $ 0.09 | $ 0.01 | |
Warrants for common shares, Outstanding, ending balance | 1,650,288 | 4,080,160 | 4,130,160 |
Weighted average exercise price, ending balance | $ 0.80 | $ 0.71 | $ 0.70 |
WARRANTS (Details Narrative)
WARRANTS (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Intrinsic value of warrant | $ 0 | $ 0 |
Warrant [Member] | Minimum [Member] | ||
Warrant expiration | 3 years | |
Warrants exercise prices | $ 0.10 | |
Warrant [Member] | Maximum [Member] | ||
Warrant expiration | 4 years | |
Warrants exercise prices | $ 1 |
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 | |
Tax provision | $ 0 | $ 0 | $ 0 | $ 0 | |
UNITED STATES | |||||
Operating loss carryforwards | $ 1,480,887 | $ 1,480,887 | $ 4,127,053 | ||
CALIFORNIA | |||||
Operating loss carryforwards | $ 3,421,796 | ||||
HONG KONG | |||||
Operating loss carryforwards | 698,685 | 698,685 | |||
MALAYSIA | |||||
Operating loss carryforwards | $ 1,551,826 | $ 1,551,826 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details-Related Party) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Due to related party | $ 3,353,679 | $ 2,254,023 |
Porta Capital [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related party | 2,027,456 | 1,868,833 |
Bru Haas [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related party | 1,144,140 | 326,665 |
Bru Haas Sdn Bhd [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related party | 150,562 | 26,910 |
Tila Network [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related party | 19,505 | 19,590 |
Mr Song Dai [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related party | $ 12,016 | $ 12,025 |
RELATED PARTY TRANSACTIONS (D_2
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Related Party Transaction [Line Items] | ||||
Related party expenses | $ 152,922 | $ 19,737 | $ 292,969 | $ 59,214 |
Porta Capital Limited [Member] | It Operating Expense [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related party expenses | 9,064 | 23,978 | 27,170 | 23,978 |
Porta Capital Limited [Member] | Matchroom Platform [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related party expenses | 36,097 | 19,737 | 87,849 | 59,214 |
Bru Haas [Member] | Network Bandwith Expense [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related party expenses | $ 116,825 | $ 0 | $ 205,120 | $ 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 | $ 14,980 | $ 17,387 | $ 43,446 | $ 64,464 |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer A [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue | $ 5,149 | $ 5,250 | $ 15,469 | $ 35,807 |
Concentrations of risk, percentage | 34.00% | 30.00% | 36.00% | 56.00% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer B [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue | $ 5,514 | $ 12,064 | $ 8,508 | $ 15,101 |
Concentrations of risk, percentage | 37.00% | 69.00% | 19.00% | 23.00% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Total Customers [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue | $ 10,663 | $ 17,314 | $ 23,977 | $ 60,899 |
Concentrations of risk, percentage | 71.00% | 99.00% | 55.00% | 94.00% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer C [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue | $ 9,991 | |||
Concentrations of risk, percentage | 15.00% | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer A [Member] | ||||
Concentration Risk [Line Items] | ||||
Accounts Receivable | $ 3,538 | $ 1,724 | $ 3,538 | $ 1,724 |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer B [Member] | ||||
Concentration Risk [Line Items] | ||||
Accounts Receivable | 8,547 | 15,257 | 8,547 | 15,257 |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Total Customers [Member] | ||||
Concentration Risk [Line Items] | ||||
Accounts Receivable | $ 12,085 | 16,981 | $ 12,085 | 16,981 |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer C [Member] | ||||
Concentration Risk [Line Items] | ||||
Accounts Receivable | $ 0 | $ 0 |
CONCENTRATIONS OF RISK (RESTA_3
CONCENTRATIONS OF RISK (RESTATED) (Details Narrative) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
HONG KONG | ||
Deposits | $ 500,000 | |
MALAYSIA | ||
Deposits | $ 250,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) | 1 Months Ended |
Apr. 28, 2021shares | |
Financial Advisory Agreement [Member] | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Restricted shares | 1,403,973 |