Fintech Scion (FINR) 10-Q 14 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 09, 2019
Document And Entity Information
Entity Registrant Name	Vitaxel Group Ltd
Entity Central Index Key	0001623590
Document Type	10-Q
Trading Symbol	VXEL
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity's Reporting Status Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Common Stock, Shares Outstanding		54,087,903
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2019

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Current assets
Cash and cash equivalents	$ 90,756	$ 1,004,397
Account receivable, net	14,302	82
Amount due from related parties	5,147	4,928
Inventories	31,291	32,585
Other receivables, prepayments and other current assets	39,624	55,954
Total current assets	181,120	1,097,946
Non-current assets
Property, plant and equipment, net	141,970	141,730
Total non-current assets	141,970	141,730
TOTAL ASSETS	323,090	1,239,676
CURRENT LIABILITIES
Amounts due to related parties	4,182,530	4,862,363
Commission payables	137,569	138,118
Accounts payable	1,091	10,414
Accrued expense and other payables	359,288	381,514
Total current liabilities	4,680,478	5,392,409
TOTAL LIABILITIES	4,680,478	5,392,409
STOCKHOLDERS' EQUITY
Preferred stock par value $0.0001: 1,000,000 shares authorized; and 0 outstanding
Common stock par value $0.0001: 70,000,000 shares authorized; 54,087,903 and 54,087,903 shares issued and outstanding, respectively	5,409	5,409
Additional paid-in capital	4,749,798	4,749,798
Accumulated deficit	(9,268,227)	(9,111,400)
Accumulated other comprehensive income	155,632	203,460
Total stockholders' equity	(4,357,388)	(4,152,733)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 323,090	$ 1,239,676

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, authorized	70,000,000	70,000,000
Common stock, issued	54,087,903	54,087,903
Common stock, outstanding	54,087,903	54,087,903
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, authorized	1,000,000	1,000,000
Preferred stock, outstanding	0	0

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
REVENUE	$ 14,515	$ 12,715
COST OF REVENUE	(9,457)	(2,542)
GROSS PROFIT	5,058	10,173
OPERATING EXPENSES
Selling expense	(34)	(681)
General and administrative expenses	(286,844)	(306,936)
Total Operating Expenses	(286,878)	(307,617)
LOSS FROM OPERATIONS	(281,820)	(297,444)
OTHER INCOME/(EXPENSE), NET
Other Income	126,495
Other Expense	(1,502)	(105,285)
Total Other Income / (Expense), net	124,993	(105,285)
Net loss	(156,827)	(402,729)
OTHER COMPREHENSIVE LOSS
Foreign currency translation adjustment	(47,828)	(85,637)
TOTAL COMPREHENSIVE LOSS	$ (204,655)	$ (488,366)
Weighted average number of common shares outstanding - basic and diluted	54,087,903	54,087,903
Net loss per share - Basic and diluted	$ 0	$ (0.01)

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (156,827)	$ (402,729)
Items not involving cash:
Depreciation property and equipment	8,766	10,032
Property, plant and equipment written off	2,224
Changes in operating assets and liabilities
Accounts receivable	(14,220)
Other receivables, prepayments and other current assets	16,330	21,999
Inventories	1,294	1,730
Amount due from associated company		11,379
Accounts Payable	(9,323)	(31,406)
Commission payables	(549)	5,769
Accrued expense and other payables	(22,226)	(94,434)
Net cash used in operating activities	(174,531)	(477,660)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of long term investments		(638,786)
Purchase of property and equipment	(11,230)	(14,836)
Net cash used in investing activities	(11,230)	(653,622)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments to directors		(40,491)
(Repayments to) / Proceeds from related parties	(737,114)	1,979,653
Net cash provided by (used in) financing activities	(737,114)	1,939,162
EFFECT OF EXCHANGE RATES ON CASH	9,234	(85,637)
NET CHANGE IN CASH AND CASH EQUIVALENTS	(913,641)	722,243
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	1,004,397	691,199
CASH AND CASH EQUIVALENTS, END OF PERIOD	90,756	1,413,442
SUPPLEMENTAL OF CASH FLOW INFORMATION
Cash paid for interest expenses
Cash paid for income tax

ORGANIZATION AND BUSINESS

ORGANIZATION AND BUSINESS	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND BUSINESS	1. ORGANIZATION AND BUSINESS Vitaxel Group Limited (the “Company” or “Vitaxel”), incorporated in Nevada, is engaged in direct selling industry and online shopping platform primarily through its operating entities in Malaysia. Vitaxel SDN BHD (“Vitaxel SB”), was incorporated in Malaysia on August 10, 2012. Vitaxel SB is primarily engaged in the direct selling industry utilizing a multi-level marketing model with an emphasis on travel, entertainment and lifestyle products and services. Vitaxel Online Mall SDN BHD (“Vionmall”), was incorporated in Malaysia on September 22, 2015. Vionmall is primarily engaged in developing online shopping platforms geared to Vitaxel and its members and the third-party suppliers of products and services.

UNAUDITED INTERIM FINANCIAL STA

UNAUDITED INTERIM FINANCIAL STATEMENTS	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
UNAUDITED INTERIM FINANCIAL STATEMENTS	2. UNAUDITED INTERIM FINANCIAL STATEMENTS The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information under Article 8 of Regulation S-X. They do not include all information and foot notes required by U.S. GAAP for complete financial statements. Except as disclosed herein, there have been no material changes in the information disclosed in the notes to the consolidated financial statement for the year ended December 31, 2018, included in the Company’s Form 10-K filed with the Security and Exchange Commission (“SEC”). The interim unaudited consolidated financial statements should be read in conjunction with those audited consolidated financial statements included in Form10-K. In the opinion of management, the Company has made all adjustments necessary to present a fair statements of the financial position as of March 31, 2019, results of operations for the three months ended March 31, 2019 and 2018, and cash flows for the three months ended March 31, 2019 and 2018. All significant intercompany transactions and balances are eliminated on consolidation. The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results of operations for the entire fiscal year. Recently issued accounting pronouncements In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the SEC did not, or are not believed by management, to have a material impact on the Company’s present and future consolidated financial statements. Reclassification:

GOING CONCERN

GOING CONCERN	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
GOING CONCERN	3. GOING CONCERN These unaudited consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future. For the period ended March 31, 2019, the Company reported a net loss of $156,827 and had negative working capital of $4,499,358. The Company had an accumulated deficit of $9,268,227 as of March 31, 2019 due to the fact that the Company incurred losses during the years prior to March 31, 2019. The continuation of the Company as a going concern is dependent upon improving the profitability and the continuing financial support from its stockholders or other capital sources. Management believes that the continuing financial support from the existing shareholders or external debt financing will provide the additional cash to meet the Company’s obligations as they become due. These consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of the Company’s ability to continue as a going concern.

OTHER RECEIVABLES, PREPAYMENTS

OTHER RECEIVABLES, PREPAYMENTS AND OTHER CURRENT ASSETS	3 Months Ended
	Mar. 31, 2019
Other Receivables And Other Assets
OTHER RECEIVABLES, PREPAYMENTS AND OTHER CURRENT ASSETS	4. OTHER RECEIVABLES, PREPAYMENTS AND OTHER CURRENT ASSETS Other receivables, prepayments and other current assets consist of the following: March 31, 2019 December 31, 2018 Deposits (1) $ 33,755 $ 47,161 Prepayments (2) 5,309 8,555 Others (3) 560 238 $ 39,624 $ 55,954 (1) Deposits represented payments for rental, utilities, construction funds to government department and deposit payment to product suppliers. (2) Prepayments mainly consists of prepayment for insurance and IT related fees. (3) Others mainly consists other miscellaneous payments

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	3 Months Ended
	Mar. 31, 2019
Property, Plant and Equipment, Net [Abstract]
PROPERTY, PLANT AND EQUIPMENT, NET	5. PROPERTY AND EQUIPMENT, NET Property and equipment, net consist of the following: March 31, 2019 December 31, 2018 Office equipment $ 34,620 $ 36,163 Computer equipment 80,426 72,123 Furniture and fittings 7,649 7,557 Software and websit 13,649 12,757 Renovations 104,300 103,038 240,644 231,638 Less: Accumulated depreciation (98,674 ) (89,908 ) Balance at end of period/year $ 141,970 $ 141,730 Depreciation expenses charged to the statements of operations and comprehensive loss for the periods ended March 31, 2019 and 2018 were $8,766 and $10,032 respectively.

ACCRUED EXPENSE AND OTHER PAYAB

ACCRUED EXPENSE AND OTHER PAYABLES	3 Months Ended
	Mar. 31, 2019
Payables and Accruals [Abstract]
ACCRUED EXPENSE AND OTHER PAYABLES	6. ACCRUED EXPENSE AND OTHER PAYABLES March 31, 2019 December 31, 2018 Provisions and accruals $ 45,426 $ 67,989 Others (1) 313,862 313,525 Balance at end of period/year $ 359,288 $ 381,514 (1) Other payables mainly consist of members allocated redemption points for commissions.

RELATED PARTIES TRANSACTIONS

RELATED PARTIES TRANSACTIONS	3 Months Ended
	Mar. 31, 2019
Related Party Transactions [Abstract]
RELATED PARTIES TRANSACTIONS	7. RELATED PARTY BALANCES AND TRANSACTIONS March 31, 2019 December 31, 2018 Amount due from related parties Ho Wah Genting Berhad (1) $ 5,147 $ 4,928 Total Amount due from related parties $ 5,147 $ 4,928 Amount of due to related parties Ho Wah Genting Holiday Sdn Bhd (2) $ 728 $ 170 Grande Legacy Inc. (3) 4,181,802 4,862,193 Total Amount due to related parties $ 4,182,530 $ 4,862,363 The related party balances are unsecured, interest-free and repayable on demand. (1) The President of the Company, Dato’ Lim Hui Boon, is also the Group President of Ho Wah Genting Berhad (“HWGB”), a company listed in Bursa Malaysia Main Market. The Company recognized rent expenses of $5,135 and $5,110 to HWGB for the three months ended March 31, 2019 and 2018 respectively. The Company has a lease commitment under an operating lease for its corporate office facility with HWGB. The lease expires by December 31, 2019 and the remaining commitment as at March 31, 2019 is $15,404. (2) A director of the Company, Lim Wee Kiat, is also a director of Ho Wah Genting Holiday Sdn Bhd. (3) A director of the Company, Leong Yee Ming, is also a director of Grande Legacy Inc. On January 5, 2017, the Company executed a license agreement with Grande Legacy Inc (“GL”). The agreement grants GL exclusive use of Vitaxel Marks to operate a Vitaxel business in countries other than Malaysia, Singapore and Thailand. However, GL is still in the process of obtaining online payment gateway for its credit card sales, GL is currently engaging Vitaxel SB to collect credit card sales proceeds on its behalf. On July 1, 2018, the Company signed an amendment to licensing agreement with GL, providing the revised terms of royalty payment. GL shall pay the Company royalty equal to 55% of net profits on a quarterly basis, commencing July 1, 2018. On July 1, 2018, Vitaxel SB has entered into a management and administrative services agreement with GL. The agreement is to provide certain management and administrative support services for the operation of GL. For these services, Vitaxel SB shall charge a monthly management fee of $40,000 to GL. The Company recognized management fee income of $120,000 charged to GL for the three months ended March 31, 2019. On January 1, 2019, the Company signed an amendment to licensing agreement with GL, providing the revised terms of royalty payment. GL shall pay the Company royalty equal to 4% of revenue on a quarterly basis, commencing January 1, 2019. The Company recognized royalty income of $8,269 for the three months ended March 31, 2019.

OTHER RECEIVABLES, PREPAYMENT_2

OTHER RECEIVABLES, PREPAYMENTS AND OTHER CURRENT ASSETS (Tables)	3 Months Ended
	Mar. 31, 2019
Other Receivables And Other Assets
Schedule of Other receivables, prepayments and other current assets	Other receivables, prepayments and other current assets consist of the following: March 31, 2019 December 31, 2018 Deposits (1) $ 33,755 $ 47,161 Prepayments (2) 5,309 8,555 Others (3) 560 238 $ 39,624 $ 55,954 (1) Deposits represented payments for rental, utilities, construction funds to government department and deposit payment to product suppliers. (2) Prepayments mainly consists of prepayment for insurance and IT related fees. (3) Others mainly consists other miscellaneous payments

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	3 Months Ended
	Mar. 31, 2019
Property, Plant and Equipment, Net [Abstract]
Schedule of property, plant and equipment, net	Property and equipment, net consist of the following: March 31, 2019 December 31, 2018 Office equipment $ 34,620 $ 36,163 Computer equipment 80,426 72,123 Furniture and fittings 7,649 7,557 Software and websit 13,649 12,757 Renovations 104,300 103,038 240,644 231,638 Less: Accumulated depreciation (98,674 ) (89,908 ) Balance at end of period/year $ 141,970 $ 141,730

ACCRUED EXPENSE AND OTHER PAY_2

ACCRUED EXPENSE AND OTHER PAYABLES (Tables)	3 Months Ended
	Mar. 31, 2019
Payables and Accruals [Abstract]
Schedule of Accrued expense and other payables	Accrued expense and other payables consist of the following: March 31, 2019 December 31, 2018 Provisions and accruals $ 45,426 $ 67,989 Others (1) 313,862 313,525 Balance at end of period/year $ 359,288 $ 381,514 (1) Other payables mainly consist of members allocated redemption points for commissions.

RELATED PARTIES TRANSCTIONS (Ta

RELATED PARTIES TRANSCTIONS (Tables)	3 Months Ended
	Mar. 31, 2019
Related Party Transactions [Abstract]
Schedule of amount of due from related parties	March 31, 2019 December 31, 2018 Amount due from related parties Ho Wah Genting Berhad (1) $ 5,147 $ 4,928 Total Amount due from related parties $ 5,147 $ 4,928
Schedule of amount of due to related parties	March 31, 2019 December 31, 2018 Amount of due to related parties Ho Wah Genting Holiday Sdn Bhd (2) $ 728 $ 170 Grande Legacy Inc. (3) 4,181,802 4,862,193 Total Amount due to related parties $ 4,182,530 $ 4,862,363

ORGANIZATION AND BUSINESS (Deta

ORGANIZATION AND BUSINESS (Details Narrative)	3 Months Ended
	Mar. 31, 2019
Vitaxel SDN BHD [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Date of incorporation	Aug. 10, 2012
State of incorporation	Malaysia
Vitaxel Online Mall SDN BHD [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Date of incorporation	Sep. 22, 2015
State of incorporation	Malaysia

GOING CONCERN (Details Narrativ

GOING CONCERN (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net loss	$ (156,827)	$ (402,729)
Negative working capital	(4,499,358)
Accumulated deficit	$ (9,268,227)		$ (9,111,400)

OTHER RECEIVABLES, PREPAYMENT_3

OTHER RECEIVABLES, PREPAYMENTS AND OTHER CURRENT ASSETS (Details) - USD ($)		Mar. 31, 2019	Dec. 31, 2018
Other Receivables And Other Assets
Deposits	[1]	$ 33,755	$ 47,161
Prepayments	[2]	5,309	8,555
Others	[3]	560	238
Total other receivables and other assets		$ 39,624	$ 55,954
[1]	Deposits represented payments for rental, utilities, construction funds to government department and deposit payment to product suppliers.
[2]	Prepayments mainly consists of prepayment for insurance and IT related fees.
[3]	Others mainly consists other miscellaneous payments

PROPERTY, PLANT AND EQUIPMENT_2

PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Balance at beginning of period/year	$ 240,644	$ 231,638
Less: Accumulated depreciation	(98,674)	(89,908)
Balance at end of period/year	141,970	141,730
Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Balance at beginning of period/year	34,620	36,163
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Balance at beginning of period/year	80,426	72,123
Furniture and fittings [Member]
Property, Plant and Equipment [Line Items]
Balance at beginning of period/year	7,649	7,557
Software and Website [Member]
Property, Plant and Equipment [Line Items]
Balance at beginning of period/year	13,649	12,757
Renovations [Member]
Property, Plant and Equipment [Line Items]
Balance at beginning of period/year	$ 104,300	$ 103,038

PROPERTY, PLANT AND EQUIPMENT_3

PROPERTY, PLANT AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Property, Plant and Equipment, Net [Abstract]
Depreciation expenses	$ 8,766	$ 10,032

ACCRUED EXPENSE AND OTHER PAY_3

ACCRUED EXPENSE AND OTHER PAYABLES (Details) - USD ($)		Mar. 31, 2019	Dec. 31, 2018
Payables and Accruals [Abstract]
Provisions		$ 45,426	$ 67,989
Others	[1]	313,862	313,525
Balance at end of period/year		$ 359,288	$ 381,514
[1]	Other payables mainly consist of members allocated redemption points for commissions.

RELATED PARTIES TRANSCTIONS (De

RELATED PARTIES TRANSCTIONS (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Amount of due from related parties	$ 5,147	$ 4,928
Ho Wah Genting Berhad [Member]
Amount of due from related parties	$ 5,147	$ 4,928

RELATED PARTIES TRANSCTIONS (_2

RELATED PARTIES TRANSCTIONS (Details 1) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Amount due to related parties	$ 4,182,530	$ 4,862,363
Ho Wah Genting Holiday Sdn. Bhd [Member]
Amount due to related parties	728	170
Grande Legacy Inc [Member]
Amount due to related parties	$ 4,181,802	$ 4,862,193

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	Jan. 02, 2019	Jul. 01, 2018	Mar. 31, 2019	Mar. 31, 2018
Description of debt			Interest-free and repayable on demand.
Ho Wah Genting Berhad [Member]
Rent expenses			$ 5,135	$ 5,110
Lease expiration date			Dec. 31, 2019
Operating lease commitment			$ 15,404
Grande Legacy Inc [Member]
Royalty income			8,269
Monthly management fee		$ 40,000
Management fee income			$ 120,000
Percentage of royality	4.00%	55.00%