| SUMMARY OF SIGNIFICANT POLICIES | 2.
SUMMARY OF SIGNIFICANT POLICES Basis of
Presentation Use of estimates Cash and cash equivalents Accounts receivable
Revenue recognition The Company also enters into
arrangements with multiple deliverables that generally include web design and software development, domain and hosting, and maintenance
and other services, with the term ranging from one month to two years. The Company analyzes its agreements to determine whether
the elements can be separated and accounted for individually or as a single unit of accounting in accordance with the Financial
Accounting Standards Board's (the “FASB”) Accounting Standards Codification (“ASC”) 605-25, “Revenue
Arrangements with Multiple Deliverables,” and Staff Accounting Bulletin (“SAB”) 104, “Revenue Recognition”.
Allocation of revenue to individual elements that qualify for separate accounting is based on the element’s fair value in
accordance with ASC 605 and related revenues are recognized pursuant to the criteria described above. During the year ended December
31, 2015, in one of the arrangements that contain multiple deliverables, the Company acted as an agent in the transaction. As the
agent, it records revenues on a net basis. Customer payments received in advance of the performance of services are recorded as
deferred revenues in the balance sheets, and are recognized as revenue when the web and IT services are rendered. Cost of revenues Earnings (loss) per share Stock-based compensation Related parties Income taxes The Company recorded valuation
allowances on the net deferred tax assets. Management will reassess the realization of deferred tax assets based on the accounting
standards for income taxes each reporting period. To the extent that the financial results of operations improve and it becomes
more likely than not that the deferred tax assets are realizable, the Company will be able to reduce the valuation allowance. Significant judgment is required
in evaluating the Company’s tax positions and determining its provision for income taxes. During the ordinary course of business,
there are many transactions and calculations for which the ultimate tax determination is uncertain. Accounting standards regarding
uncertainty in income taxes provides a two-step approach to recognizing and measuring uncertain tax positions. The first step is
to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than
not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The
second step is to measure the tax benefit as the largest amount which is more than 50% likely, based solely on the technical merits,
of being sustained on examinations. The Company considers many factors when evaluating and estimating its tax positions and tax
benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes. Fair value of financial
instruments Level 1 – Inputs are
quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at
the measurement date. Level 2 – Inputs are
inputs other than quoted prices included within Level 1 that are observable for the assets or liability, either directly or indirectly. Level 3 – Inputs are
unobservable inputs for the asset or liability. The Company does not have
any financial assets or liabilities that are required to be fair valued on a recurring basis. For certain of the Company's
financial instruments, including cash and cash equivalents, accounts receivables, accounts payable and accrued liabilities, amounts
due to related parties and income tax payable, the carrying amounts approximate fair values due to their short maturities. Transactions involving related
parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free market
dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party
transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations
can be substantiated. It is not, however, practical to determine the fair value of amounts due from/to related parties due to their
related party nature. Foreign currency transactions
and translation Accounting standards note yet adopted In
August 2015, FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date”.
The amendments in ASU 2015-14 defer the effective date of ASU 2014-09 for all entities by one year. Public business entities, certain
not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods
beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted
only as of annual reporting periods beginning after December 15,
2016, including interim reporting periods within that reporting
period. The Company is currently in the process of evaluating the impact of the adoption on its financial statements. In November 2015 the
FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes”, which changes how deferred taxes are classified
on the Company’s balance sheets and is effective for financial statements issued for annual periods beginning after December
15, 2016, with early adoption permitted. ASU 2015-17 requires all deferred tax assets and liabilities to be classified as non-current.
Upon adoption, we anticipate no effect on our balances sheets as the Company has no deferred tax assets and liabilities at September
30, 2016 and recorded a valuation allowance reducing our net deferred tax assets and liabilities to zero at December 31, 2015. In February 2016, the FASB
issued ASU 2016-02, Leases (Topic 842), which supersedes ASC 840, Leases. This ASU is based on the principle that entities
should recognize assets and liabilities arising from leases. The ASU does not significantly change the lessees’
recognition, measurement and presentation of expenses and cash flows from the previous accounting standard. Leases are
classified as finance or operating. The ASU’s primary change is the requirement for entities to recognize a lease
liability for payments and a right of use asset representing the right to use the leased asset during the term on operating lease
arrangements. Lessees are permitted to make an accounting policy election to not recognize the asset and liability for
leases with a term of twelve months or less. Lessors’ accounting under the ASC is largely unchanged from the previous
accounting standard. In addition, the ASU expands the disclosure requirements of lease arrangements. Lessees and
lessors will use a modified retrospective transition approach, which includes a number of practical expedients. The
effective date will be the first quarter of fiscal year 2020 with early adoption permitted. Management continues to
assess the overall impact the adoption of ASU 2016-02 will have on the Company’s financial statements. In March 2016, the FASB issued
ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue
Gross versus Net)”. The amendments in this ASU are intended to improve the operability and understandability of the implementation
guidance on principal versus agent considerations by amending certain existing illustrative examples and adding additional illustrative
examples to assist in the application of the guidance. The effective date and transition of these amendments is the same as the
effective date and transition of ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”. Public entities
should apply the amendments in ASU 2014-09 for annual reporting periods beginning after December 15, 2017, including interim reporting
periods therein. The Company is currently in the process of evaluating the impact of the adoption on its financial statements. In March 2016, the FASB issued
ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”.
The amendments are effective for public companies for annual periods beginning after December 15, 2016, and interim periods within
those annual periods. Several aspects of the accounting for share-based payment award transactions are simplified, including: (a)
income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement
of cash flows. The Company is currently in the process of evaluating the impact of the adoption on its financial statements. In April 2016, the
FASB issued ASU 2016-10, “Revenue from Contracts with Customer (Topic 606): Identifying Performance Obligations and Licensing.”
The amendments in this ASU clarify the following two aspects of Topic 606: identifying performance obligations and the licensing
implementation guidance, while retaining the related principles for those areas. The effective date and transition of these amendments
is the same as the effective date and transition of ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”.
Public entities should apply the amendments in ASU 2014-09 for annual reporting periods beginning after December 15, 2017, including
interim reporting periods therein. The Company is currently in the process of evaluating the impact of the adoption on its financial
statements. In May 2016, the FASB issued
ASU 2016-12, “Revenue from Contracts with Customer (Topic 606): Narrow-Scope Improvements and Practical Expedients.”
The amendments in this ASU affect only the narrow aspects of Topic 606. The effective date and transition of these amendments is
the same as the effective date and transition of ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”.
Public entities should apply the amendments in ASU 2014-09 for annual reporting periods beginning after December 15, 2017, including
interim reporting periods therein. The Company is currently in the process of evaluating the impact of the adoption on its financial
statements. In June 2016, the FASB issued
ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.”
The amendments in this ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected
credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates.
The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those
fiscal years. The Company is currently in the process of evaluating the impact of the adoption on its financial statements. In August 2016, the FASB
issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus
of the Emerging Issues Task Force). ASU 2016-15 reduces diversity in practice in how certain transactions are classified in the
statement of cash flows. The effective date will be the first quarter of fiscal year 2018 with early adoption permitted. Management
continues to assess the overall impact the adoption of ASU 2016-15 will have on the Company’s financial statements. The Company has implemented
all new accounting pronouncements that are in effect and that may impact its consolidated financial statements and does not believe
that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial
position or results of operations. 3. GOING
CONCERN The accompanying unaudited
financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction
of liabilities in the normal course of business. The Company has retained earnings of $14,116 as of September 30, 2016. The Company
requires capital for its contemplated operational and marketing activities. The Company’s ability to raise additional capital
through the future issuances of common stock is unknown. The obtainment of additional financing, the successful development of
the Company’s contemplated plan of operations, and its transition, ultimately, to the attainment of profitable operations
are necessary for the Company to continue operations. The ability to successfully resolve these factors raise substantial doubt
about the Company’s ability to continue as a going concern. The financial statements of the Company do not include any adjustments
that may result from the outcome of these aforementioned uncertainties. 4.
EARNINGS (LOSS) PER SHARE A reconciliation of components
of basic and diluted net income per common share is presented in the tables below :
For the Three Months Ended September 30,
2016 2015
Income (Loss) Weighted Average Common Shares Outstanding Per Share Income (Loss) Weighted Average Common Shares Outstanding Per Share
Basic:
Income (loss) attributable to common stock $ (22,816) 12,000,000 $ (0.00) (2,371) 12,000,000 $ (0.00)
Effective of Dilutive Securities:
Stock options and other – – – – – –
Diluted:
Income (loss) attributable to common stock including assumed conversions $ (22,816) 12,000,000 $ (0.00) (2,371) 12,000,000 $ (0.00)
For the Nine Months Ended September 30,
2016 2015
Income (Loss) Weighted Average Common Shares Outstanding Per Share Income (Loss) Weighted Average Common Shares Outstanding Per Share
Basic:
Income (loss) attributable to common stock $ 50,861 12,075,730 $ 0.00 $ (48,561) 10,886,447 $ (0.00)
Effective of Dilutive Securities:
Stock options and other – – – – – –
Diluted:
Income (loss) attributable to common stock including assumed conversions $ 50,861 12,075,730 $ 0.00 $ (48,561) 10,886,447 $ (0.00) 5. RELATED PARTY TRANSACTIONS In February 2015, a Company
stockholder advanced the Company $50,000 and the cash was received in May 2015. The advance is unsecured, bears no interest, contains
no formal repayment terms and is convertible on demand into shares of restricted common stock. Management has not determined the
conversion rate on this potentially dilutive security at September 30, 2016. The Loan is not yet convertible as the shares are
not publicly traded on an exchange. During the quarter ended
September 30, 2015, Mr. Cornelius Ee, Vice President of the Company, advanced the Company $3,331 for general operating expenses.
The advance is unsecured, non-interest bearing and has no specific terms of repayment. As of September 30, 2016, the Company owed
$3,331 (December 31, 2015 - $3,331) to Mr. Cornelius Ee. During 2015, the Company
entered into a six-month service contract with ELITESOFT ASIA PTE LTD, a shareholder of the Company, to provide the Company with
website design, development and integration with the Company’s CRM Program as well as web-based automated tracking system
for the Company’s nationwide operations –customer relation management program. The total contract value is approximately
$414,000. During the nine months ended September 30, 2016, the Company incurred cost of $413,952 under this contract. Included
in accounts payable and accrued expenses – related party is $82,790 (December 31, 2015 - $10,000) related to this contract. 6. STOCKHOLDERS’
EQUITY Preferred Stock Common Stock On March 23, 2016, the Company
cancelled 250,000 shares of common stock of the Company that had been previously issued due to termination of consulting agreement
dated May 1, 2015 and reversed stock-based compensation of $5,000 that was recognized during the year ended December 31, 2015.
The $5,000 was recorded as other income during the nine months ended September 30, 2016. 7. CUSTOMER CONCENTRATION During the nine months ended
September 30, 2016, the Company generated revenues from seven customers and one major customer accounted for 94% of the Company’s
revenue. No other customer accounted for more than 10% of revenues. The accounts receivable from the major customer was 0% of the
total accounts receivable. The accounts receivable from four of the other six customers accounted for more than 96% of total accounts
receivable. The loss of the major customer could have an adverse effect on the Company’s business, operating results, or
financial condition. 8. INCOME TAXES The Company computes the
income tax expense by applying the estimated annual effective tax rate to year-to-date income (loss) from operations and adding
the effects of any discrete income tax items specific to the period. The
Company’s effective tax rate was 0% and 15% for the three and nine months ended September 30, 2016, respectively, which
was lower than the U.S. federal statutory tax rate of 34%. The lower tax rate was primarily attributable to the net operating
loss carry forwards from prior fiscal years being utilized. 9. SUBSEQUENT EVENTS Management has evaluated
subsequent events up to and including November 14, 2016, which is the date the statements were available for issuance and determined
there are no reportable subsequent events. |
