Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 10, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | CAT9 Group Inc. | |
Entity Central Index Key | 0001632275 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | true | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Jun. 30, 2021 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2021 | |
Entity Ex Transition Period | false | |
Entity Common Stock Shares Outstanding | 102,166,400 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Entity File Number | 333-222288 | |
Entity Incorporation State Country Code | DE | |
Entity Tax Identification Number | 47-2912810 | |
Entity Address Address Line 1 | Room 2001, Dading Century Square | |
Entity Address Postal Zip Code | 610000 | |
Security 12b Title | Common | |
Trading Symbol | CATN | |
Entity Address Address Line 2 | No 387, Tianren Road | |
City Area Code | 86 | |
Local Phone Number | 028-85594777 | |
Entity Address Address Line 3 | Wuhou District | |
Entity Address City Or Town | Chengdu | |
Entity Address Country | CN |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash | $ 283,401 | $ 7,000 |
Accounts receivable, net | 40,887 | 12,824 |
Inventories | 244,395 | 306,973 |
Other receivables, related party | 1,149 | |
Advances to suppliers | 117,233 | 167,235 |
Other current assets | 9,759 | 6,165 |
Total current assets | 695,675 | 501,346 |
Property & equipment, net | 7,284 | 12,227 |
Capitalized software costs, net | 4,294 | 4,248 |
Total assets | 707,253 | 517,821 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 430,597 | 511,011 |
Customer deposits | 60,750 | 1,673 |
Loan payable | 95,222 | 114,113 |
Loan payable, related parties | 37,480 | 183,709 |
Other payables | 150,607 | 1,051 |
Other payables, related party | 423,095 | 426,027 |
Total current liabilities | 1,197,751 | 1,237,584 |
Total liabilities | 1,197,751 | 1,237,584 |
Shareholders' Deficit: | ||
Preferred stock $0.0001 par value, 5,000,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock $0.0001 par value, 500,000,000 shares authorized; 102,166,400 shares issued and outstanding | 10,217 | 10,217 |
Additional paid-in capital | 497,573 | 497,573 |
Accumulated deficit | (966,400) | (1,198,730) |
Accumulated other comprehensive loss | (31,888) | (28,823) |
Total Stockholders' Deficit | (490,498) | (719,763) |
Total liabilities and stockholders' deficit | $ 707,253 | $ 517,821 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Consolidated Balance Sheets | ||
Preferred stock, par value per share | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 102,166,400 | 102,166,400 |
Common stock, shares outstanding | 102,166,400 | 102,166,400 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) | ||||
Revenue | $ 694,929 | $ 227,423 | $ 951,119 | $ 1,281,438 |
Cost of revenue | 249,861 | 96,866 | 343,065 | 606,458 |
Gross margin | 445,068 | 130,557 | 608,054 | 674,980 |
Operating expenses: | ||||
Professional fees | 4,730 | 13,441 | 29,559 | 71,231 |
Consulting | 16,101 | 10,899 | 23,538 | 117,297 |
Selling, general and administrative | 203,432 | 360,120 | 307,190 | 1,004,017 |
Total operating expenses | 224,263 | 384,460 | 360,287 | 1,192,545 |
Income (Loss) from operations | 220,805 | (253,903) | 247,767 | (517,565) |
Other income (expense): | ||||
Other income | 788 | 2,296 | 5,334 | 2,620 |
Interest expense | (2,592) | (2,181) | (4,971) | (2,181) |
Other expenses | (14,326) | (11,780) | (15,799) | (24,738) |
Total other expense | (16,130) | (11,665) | (15,436) | (24,299) |
Income (loss) before income taxes | 204,675 | (265,568) | 232,331 | (541,864) |
Provision for income taxes | ||||
Net Income (Loss) | 204,675 | (265,568) | 232,331 | (541,864) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | (15,574) | 9,165 | (3,065) | 37,635 |
Comprehensive income (loss) | $ 189,101 | $ (256,403) | $ 229,265 | $ (504,229) |
Basic and diluted net income (loss) per share | $ 0 | $ 0 | $ 0 | $ (0.01) |
Weighted average number of common shares outstanding, basic and diluted | 102,166,400 | 102,166,400 | 102,166,400 | 102,166,400 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Deficit (Unaudited) - USD ($) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated other comprehensive loss |
Balance, shares at Dec. 31, 2019 | 102,166,400 | ||||
Balance, amount at Dec. 31, 2019 | $ (330,300) | $ 10,217 | $ 497,573 | $ (825,752) | $ (12,338) |
Foreign currency translation adjustment | 28,470 | 0 | 0 | 0 | 28,470 |
Net loss | (276,295) | $ 0 | 0 | (276,295) | 0 |
Balance, shares at Mar. 31, 2020 | 102,166,400 | ||||
Balance, amount at Mar. 31, 2020 | (578,125) | $ 10,217 | 497,573 | (1,102,047) | 16,132 |
Balance, shares at Dec. 31, 2019 | 102,166,400 | ||||
Balance, amount at Dec. 31, 2019 | (330,300) | $ 10,217 | 497,573 | (825,752) | (12,338) |
Net loss | (541,864) | ||||
Balance, shares at Jun. 30, 2020 | 102,166,400 | ||||
Balance, amount at Jun. 30, 2020 | (834,528) | $ 10,217 | 497,573 | (1,367,615) | 25,297 |
Balance, shares at Mar. 31, 2020 | 102,166,400 | ||||
Balance, amount at Mar. 31, 2020 | (578,125) | $ 10,217 | 497,573 | (1,102,047) | 16,132 |
Foreign currency translation adjustment | 9,165 | 0 | 0 | 0 | 9,165 |
Net loss | (265,568) | $ 0 | 0 | (265,568) | 0 |
Balance, shares at Jun. 30, 2020 | 102,166,400 | ||||
Balance, amount at Jun. 30, 2020 | (834,528) | $ 10,217 | 497,573 | (1,367,615) | 25,297 |
Balance, shares at Dec. 31, 2020 | 102,166,400 | ||||
Balance, amount at Dec. 31, 2020 | (719,763) | $ 10,217 | 497,573 | (1,198,730) | (28,823) |
Foreign currency translation adjustment | 12,509 | 0 | 0 | 0 | 12,509 |
Net loss | 27,655 | $ 0 | 0 | 27,655 | 0 |
Balance, shares at Mar. 31, 2021 | 102,166,400 | ||||
Balance, amount at Mar. 31, 2021 | (679,599) | $ 10,217 | 497,573 | (1,171,075) | (16,314) |
Balance, shares at Dec. 31, 2020 | 102,166,400 | ||||
Balance, amount at Dec. 31, 2020 | (719,763) | $ 10,217 | 497,573 | (1,198,730) | (28,823) |
Net loss | 232,331 | ||||
Balance, shares at Jun. 30, 2021 | 102,166,400 | ||||
Balance, amount at Jun. 30, 2021 | (490,498) | $ 10,217 | 497,573 | (966,400) | (31,888) |
Balance, shares at Mar. 31, 2021 | 102,166,400 | ||||
Balance, amount at Mar. 31, 2021 | (679,599) | $ 10,217 | 497,573 | (1,171,075) | (16,314) |
Foreign currency translation adjustment | (15,574) | 0 | 0 | 0 | (15,574) |
Net loss | 204,675 | $ 0 | 0 | 204,675 | 0 |
Balance, shares at Jun. 30, 2021 | 102,166,400 | ||||
Balance, amount at Jun. 30, 2021 | $ (490,498) | $ 10,217 | $ 497,573 | $ (966,400) | $ (31,888) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net Income (Loss) | $ 232,331 | $ (541,864) |
Adjustments to reconcile net income (loss0 to net cash used in operating activities: | ||
Foreign currency translation adjustment | (3,235) | 38,085 |
Bad debt expense | 0 | 498,758 |
Depreciation and amortizations expense | 11,493 | 13,880 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (28,063) | (206,173) |
Prepaid expenses | 0 | 22 |
Inventories | 62,578 | (129,616) |
Other assets, related party | 1,149 | (2,099) |
Advances to suppliers | 50,003 | (217,331) |
Other current assets | (3,594) | (5,690) |
Accounts payable and accrued liabilities | (80,414) | 158,122 |
Customer deposit | 59,077 | 99,248 |
Other payables | 149,556 | (2,011) |
Net cash provided by (used in) operating activities | 450,881 | (296,669) |
Cash flows from investing activities: | ||
Purchase of software | (6,428) | 0 |
Net cash used in investing activities | (6,428) | 0 |
Cash flows from financing activities: | ||
Proceeds from loan payable | 0 | 109,039 |
Repayment of loan payable | (165,120) | 0 |
Loans from related parties | 755 | |
Repayment of related party loans | (2,932) | |
Net cash (used) provided by financing activities | (168,052) | 109,794 |
Net change in cash | 276,401 | (186,875) |
Cash, beginning of period | 7,000 | 189,429 |
Cash, end of period | 283,401 | $ 2,554 |
SUPPLEMENTAL DISCLOSURES: | ||
Cash paid for interest | $ 5,029 |
DESCRIPTION OF BUSINESS AND HIS
DESCRIPTION OF BUSINESS AND HISTORY | 6 Months Ended |
Jun. 30, 2021 | |
DESCRIPTION OF BUSINESS AND HISTORY | |
NOTE 1 - DESCRIPTION OF BUSINESS AND HISTORY | NOTE 1 - DESCRIPTION OF BUSINESS AND HISTORY Description of business CAT9 Group Inc., (the “Company”) formerly known as ANDES 4 Inc. ("ANDES 4"), was incorporated under the laws of the State of Delaware on January 26, 2015. On December 27, 2016, the Company and its wholly-owned subsidiary, CAT9 Holdings Ltd, a company organized under the laws of the Cayman Islands, ("CAT9 Cayman"); CAT9 Cayman's wholly-owned subsidiary, CAT9 Investment China Limited, a company organized under the laws of Hong Kong ("CAT9 HK"); and its wholly-owned subsidiary, Chongqing CAT9 Industry Company Ltd, a company organized under the laws of the People's Republic of China closed a share exchange transaction pursuant to which CAT9 became the 100% parent of CAT9 Cayman, assumed the operations of CAT9 Cayman and its subsidiaries, including CAT9 Investment China, and Chongqing CAT9 Industrial Company Ltd. CAT9 Cayman is a holding company incorporated on August 20, 2015, under the laws of the Cayman Islands. CAT9 Investment China Limited was incorporated on September 10, 2015, under the laws of Hong Kong. CAT9 Investment China is a window for the group to handle the business operations outside of China. Chongqing CAT9 Industrial Company Ltd. is located in Chongqing, PRC and was incorporated under the laws of the PRC on June 26, 2014. Chongqing Field Industrial Company Ltd. operates through strategic alliance and distribution rights agreements in the PRC, the Company is engaged in the marketing and sales of (1) fresh fruits, vegetables meats (including primarily organic and non-organic from both domestically grown and imported (2) Acquisition of land for the planting of Acer Truncatum trees and harvesting of Acer Truncatum seeds to produce edible oil, (3) providing Hi-Tech cooperative farm management services in the PRC and overseas and (4) farm machinery sales. Prior to the events above, the Company on July 31, 2015, the sole officer and director of the Company entered into a Share Purchase Agreement (the “SPA”) pursuant to which he entered into an agreement to sell an aggregate of 10,000,000 shares of his shares of the Company’s common stock to Chongqing Field Industrial Company Ltd. at an aggregate purchase price of $40,000. These shares represent 100% of the Company’s issued and outstanding common stock. Effective upon the closing date of the Share Purchase Agreement, August 12, 2015, the sole officer and director of the Company executed the agreement and owned no shares of the Company’s stock and Chongqing Field Industrial Company Ltd. was the sole stockholder of the Company. On May 2, 2016, the Company entered into Employee Agreements with Wenfa "Simon" Sun, its President, Chief Executive Officer, and Chairman of the Board of Directors, and MeiHong "Sanya" Qian, its Chief Financial Officer and Secretary. Pursuant to the Employment Agreement, the Company issued 6,000,000 shares of restricted common stock to Wenfa "Simon" Sun, and 4,000,000 shares of restricted common stock to MeiHong "Sanya" Qian. On May 3, 2016, the sole shareholder of the Company, Chongqing Field Industrial Ltd., ("CQFI") consented to a redemption of its 10,000,000 shares of common stock at a price of $0.0001 per share for an aggregate redemption price of $1,000. As a result of this action by CQFI, management of the Company now control 100% of the issued and outstanding shares. With the redemption and subsequent issuance of the10,000,000 shares of restricted common stock, the Company effected a change in its control and the new majority shareholders are the current members of management of the Company. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
NOTE 2- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESs | NOTE 2- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Interim Financial Statements The accompanying unaudited financial statements have been prepared in accordance with the instructions from Regulation S-X and do not include all of the information and disclosures required by generally accepted accounting principles for complete financial statements. All adjustments which are, in the opinion of management, necessary for a fair presentation of the results of operations for the interim period(s), and to make the financial statements not misleading, have been made and are of a recurring nature unless otherwise disclosed herein. The results of operations for such interim period(s) are not necessarily indicative of operations for a full year. Basis of Presentation The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accompanying unaudited condensed financial statements reflect all adjustments, consisting of only normal recurring items, which, in the opinion of management, are necessary for a fair statement of the results of operations for the periods shown and are not necessarily indicative of the results to be expected for the full year ending December 31, 2021. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The Company's functional currency for Chongqing CAT9 is the Chinese Renminbi (“RMB”); however, the accompanying financial statements have been translated and presented in the United States Dollars (“USD”). Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, CAT9 Cayman, and its subsidiaries, including CAT9 Investment China, Chongqing CAT9 Industrial Co., Ltd: Chongqing Yubei Branch Company of Chongqing CAT9 Industrial Co., Ltd; Chengdu First Branch Company of Chongqing CAT9 Industrial Co., Ltd; Chengdu Second Branch Company of Chongqing CAT9 Industrial Co., Ltd; and Chongqing CAT9 Bio-tech Co., Ltd. All financial information has been prepared in conformity with accounting principles generally accepted in the United States of America. All significant intercompany transactions and balances have been eliminated in consolidation. Translation Adjustment For the three and six months ended June 30, 2021 and 2020, the accounts of the Chongqing CAT9 were maintained, and its financial statements were expressed, in RMB. Such financial statements were translated into USD in accordance with the Foreign Currency Matters Topic of the Codification (ASC 830), with the RMB as the functional currency. According to the Codification, all assets and liabilities were translated at the current exchange rate at respective balance sheets dates, members’ capital are translated at the historical rates and income statement items are translated at the average exchange rate for the period. The resulting translation adjustments are reported under other comprehensive income in accordance with the Comprehensive Income Topic of the Codification (ASC 220), as a component of members’ capital. Transaction gains and losses are reflected in the income statement. Comprehensive Income The Company uses SFAS 130 “Reporting Comprehensive Income” (ASC Topic 220). Comprehensive income is comprised of net income and all changes to the statements of members’ capital, except those due to investments by members, changes in paid-in capital and distributions to members. Comprehensive income for the three and six months ended June 30, 2021 and 2020 is included net income and foreign currency translation adjustments. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. These estimates and judgments are based on historical information, information that is currently available to the Company and on various other assumptions that the Company believes to be reasonable under the circumstances. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents include cash in hand and cash in time deposits, certificates of deposit and all highly liquid instruments with original maturities of three months or less. |
SIGNIFICANT CONCENTRATION
SIGNIFICANT CONCENTRATION | 6 Months Ended |
Jun. 30, 2021 | |
SIGNIFICANT CONCENTRATION | |
NOTE 3 -SIGNIFICANT CONCENTRATION | NOTE 3 –SIGNIFICANT CONCENTRATION Credit Risk Financial instruments which potentially expose the Company to concentrations of credit risk consist of cash and accounts receivable as of June 30, 2021 and December 31, 2020. The Company performs ongoing evaluations of its cash position and credit evaluations to ensure collections and minimize losses. The major part of the Company’s cash at June 30, 2021 and December 31, 2020 is maintained at financial institutions in the PRC which provide insurance on deposit for no more than 500,000 yuan for each depositor in a bank. The Company has not experienced any losses in such accounts and believes it is not exposed to significant credit risk in this area. Geographic Concentration For the three and six months ended June 30, 2021 and 2020, the Company’s sales were mainly made to customers located in the PRC. Major parts of net assets of the Company are also located in the PRC. Customer Concentration The following table sets forth information as to the revenue derived from those customers that accounted for more than 10% of our revenue for the year ended June 30, 2020: Amount % Zhejiang Quku Supply Chain Management Co., Ltd 346,975 36 Sichuan Songxiang Times Science and Technology Co., Ltd 194,574 20 Chongqing Zhongdao Bio-tech Co., Ltd. 220,188 36 The following table sets forth information as to the accounts receivable derived from those customers that accounted for more than 10% of our accounts receivable as of June 30, 2020: Amount % Chongqing Zhongdao Bio-tech Co., Ltd. 11,212 27 Mingtong Chongqing Agricultural Technology Development Co., Ltd 10,516 26 |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 6 Months Ended |
Jun. 30, 2021 | |
ACCOUNTS RECEIVABLE | |
NOTE 4 -ACCOUNTS RECEIVABLE | NOTE 4 –ACCOUNTS RECEIVABLE Accounts receivables consist of the following: June 30, 2021 December 31, 2020 Accounts receivable $ 40,887 $ 12,824 Less: allowance for doubtful accounts - - Accounts receivable, net $ 40,887 $ 12,824 |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2021 | |
INVENTORIES | |
NOTE 5 -INVENTORIES | NOTE 5 –INVENTORIES Inventories consist of the following: June 30, 2021 December 31, 2020 Raw materials and parts $ 84,202 $ 66,089 Finished goods 160,193 248,571 Total 244,395 314,660 Less: allowance for inventory reserve - (7,687 ) Total inventory, net $ 244,395 $ 306,973 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2021 | |
PROPERTY AND EQUIPMENT | |
NOTE 6 - PROPERTY AND EQUIPMENT | NOTE 6 — PROPERTY AND EQUIPMENT Property and equipment are summarized as follows: June 30, 2021 December 31, 2020 Equipment $ 15,238 $ 15,074 Automobile 36,761 36,366 Acer Truncatum saplings 232 230 Total property and equipment 52,231 51,670 Less accumulated depreciation (44,947 ) (39,443 ) Property and equipment, net $ 7,284 $ 12,227 Depreciation expense was $5,065 and $5,932 for the six months ended June 30, 2021 and 2020, respectively. |
CAPITALIZED SOFTWARE COSTS
CAPITALIZED SOFTWARE COSTS | 6 Months Ended |
Jun. 30, 2021 | |
CAPITALIZED SOFTWARE COSTS | |
NOTE 7 - CAPITALIZED SOFTWARE COSTS | NOTE 7 – CAPITALIZED SOFTWARE COSTS Capitalized software costs consist of the following as of: June 30, 2021 December 31, 2020 Software $ 30,192 $ 23,495 Less accumulated amortization (25,898 ) (19,247 ) Software costs, net $ 4,294 $ 4,248 Amortization expense was $6,428 and $7,948 for the six months ended June 30, 2021 and 2020, respectively. |
LOAN PAYABLE
LOAN PAYABLE | 6 Months Ended |
Jun. 30, 2021 | |
LOAN PAYABLE | |
NOTE 8 - LOAN PAYABLE | NOTE 8 – LOAN PAYABLE As of June 30, 2021, the Company had outstanding loan agreements with some individuals in the amount of $95,222 (RMB $615,000). The Company’s vehicle with net value of $7,548 is pledged as security for a loan in the amount of $15,483 (RMB $100,000). During the six months ended June 30, 2020, the Company repaid two loans in full in the total amount of $18,891 (RMB $130,000). $34,063 (RMB220,000) of the loans are past due as of June 30, 2021. The annual interest rates for the loans are from 0% to 30%. For the six months ended June 30, 2021, the interest expense is $5,029. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2021 | |
RELATED PARTY TRANSACTIONS | |
NOTE 9 - RELATED PARTY TRANSACTIONS | NOTE 9 - RELATED PARTY TRANSACTIONS Loan payable, related parties On January 1, 2020, the Company entered into a loan agreement with Sichuan CAT9 Technology, the company under control of Wenfa Sun, the Company’s President, Chief Executive Officer and Chairman. The loan agreement offers the Company $644,544 (RMB 5,000,000) credit line. The maturity date is December 31, 2020. The loan is unsecured, non-interest bearing. As of June 30, 2021, the balance of the loan is $37,480. As of June 30, 2021, this loan is past due. Due to related parties During the normal course of business, affiliated companies, members, and/or officers may advance the Company funds to pay for certain operating expenses. All advances are unsecured, non-interest bearing and due on demand. As of June 30, 2021 and December 31, 2020, the Company was indebted to related parties that advanced loans to the Company without any formal repayment terms. As of June 30, 2021 and December 31, 2020, the Company owed the aforementioned related parties $423,095and $426,027, respectively. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 6 Months Ended |
Jun. 30, 2021 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
NOTE 10 - ACCUMULATED OTHER COMPREHENSIVE LOSS | NOTE 10 – ACCUMULATED OTHER COMPREHENSIVE LOSS Balance of related after-tax components comprising accumulated other comprehensive loss included members’ capital were as follows: June 30, 2021 December 31, 2020 Accumulated other comprehensive loss, beginning of period $ (28,823 ) $ (12,338 ) Change in cumulative translation adjustment (3,065 ) (16,485 ) Accumulated other comprehensive loss, end of period $ (31,888 ) $ (28,823 ) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2021 | |
SUBSEQUENT EVENTS | |
NOTE 11 - SUBSEQUENT EVENTS | NOTE 11 – SUBSEQUENT EVENTS In accordance with SFAS 165 (ASC 855-10) management has performed an evaluation of subsequent events through the date that the financial statements were issued and has determined that it does not have any material subsequent events to disclose in these financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Interim Financial Statements | The accompanying unaudited financial statements have been prepared in accordance with the instructions from Regulation S-X and do not include all of the information and disclosures required by generally accepted accounting principles for complete financial statements. All adjustments which are, in the opinion of management, necessary for a fair presentation of the results of operations for the interim period(s), and to make the financial statements not misleading, have been made and are of a recurring nature unless otherwise disclosed herein. The results of operations for such interim period(s) are not necessarily indicative of operations for a full year. |
Basis of Presentation | The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accompanying unaudited condensed financial statements reflect all adjustments, consisting of only normal recurring items, which, in the opinion of management, are necessary for a fair statement of the results of operations for the periods shown and are not necessarily indicative of the results to be expected for the full year ending December 31, 2021. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The Company's functional currency for Chongqing CAT9 is the Chinese Renminbi (“RMB”); however, the accompanying financial statements have been translated and presented in the United States Dollars (“USD”). |
Principles of Consolidation | The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, CAT9 Cayman, and its subsidiaries, including CAT9 Investment China, Chongqing CAT9 Industrial Co., Ltd: Chongqing Yubei Branch Company of Chongqing CAT9 Industrial Co., Ltd; Chengdu First Branch Company of Chongqing CAT9 Industrial Co., Ltd; Chengdu Second Branch Company of Chongqing CAT9 Industrial Co., Ltd; and Chongqing CAT9 Bio-tech Co., Ltd. All financial information has been prepared in conformity with accounting principles generally accepted in the United States of America. All significant intercompany transactions and balances have been eliminated in consolidation. |
Translation Adjustment | For the three and six months ended June 30, 2021 and 2020, the accounts of the Chongqing CAT9 were maintained, and its financial statements were expressed, in RMB. Such financial statements were translated into USD in accordance with the Foreign Currency Matters Topic of the Codification (ASC 830), with the RMB as the functional currency. According to the Codification, all assets and liabilities were translated at the current exchange rate at respective balance sheets dates, members’ capital are translated at the historical rates and income statement items are translated at the average exchange rate for the period. The resulting translation adjustments are reported under other comprehensive income in accordance with the Comprehensive Income Topic of the Codification (ASC 220), as a component of members’ capital. Transaction gains and losses are reflected in the income statement. |
Comprehensive Income | The Company uses SFAS 130 “Reporting Comprehensive Income” (ASC Topic 220). Comprehensive income is comprised of net income and all changes to the statements of members’ capital, except those due to investments by members, changes in paid-in capital and distributions to members. Comprehensive income for the three and six months ended June 30, 2021 and 2020 is included net income and foreign currency translation adjustments. |
Use of Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. These estimates and judgments are based on historical information, information that is currently available to the Company and on various other assumptions that the Company believes to be reasonable under the circumstances. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and cash equivalents include cash in hand and cash in time deposits, certificates of deposit and all highly liquid instruments with original maturities of three months or less. |
SIGNIFICANT CONCENTRATION (Tabl
SIGNIFICANT CONCENTRATION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
SIGNIFICANT CONCENTRATION | |
Schedule of Concentration of Credit Risk | Amount % Zhejiang Quku Supply Chain Management Co., Ltd 346,975 36 Sichuan Songxiang Times Science and Technology Co., Ltd 194,574 20 Chongqing Zhongdao Bio-tech Co., Ltd. 220,188 36 Amount % Chongqing Zhongdao Bio-tech Co., Ltd. 11,212 27 Mingtong Chongqing Agricultural Technology Development Co., Ltd 10,516 26 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
ACCOUNTS RECEIVABLE | |
Schedule of Accounts Receivable | June 30, 2021 December 31, 2020 Accounts receivable $ 40,887 $ 12,824 Less: allowance for doubtful accounts - - Accounts receivable, net $ 40,887 $ 12,824 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
INVENTORIES | |
Schedule of Inventories | June 30, 2021 December 31, 2020 Raw materials and parts $ 84,202 $ 66,089 Finished goods 160,193 248,571 Total 244,395 314,660 Less: allowance for inventory reserve - (7,687 ) Total inventory, net $ 244,395 $ 306,973 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
PROPERTY AND EQUIPMENT | |
Summary of Property and Equipment | June 30, 2021 December 31, 2020 Equipment $ 15,238 $ 15,074 Automobile 36,761 36,366 Acer Truncatum saplings 232 230 Total property and equipment 52,231 51,670 Less accumulated depreciation (44,947 ) (39,443 ) Property and equipment, net $ 7,284 $ 12,227 |
CAPITALIZED SOFTWARE COSTS (Tab
CAPITALIZED SOFTWARE COSTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
CAPITALIZED SOFTWARE COSTS | |
Summary of Capitalized Software Costs | June 30, 2021 December 31, 2020 Software $ 30,192 $ 23,495 Less accumulated amortization (25,898 ) (19,247 ) Software costs, net $ 4,294 $ 4,248 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
Schedule of Accumulated Other Comprehensive Loss | June 30, 2021 December 31, 2020 Accumulated other comprehensive loss, beginning of period $ (28,823 ) $ (12,338 ) Change in cumulative translation adjustment (3,065 ) (16,485 ) Accumulated other comprehensive loss, end of period $ (31,888 ) $ (28,823 ) |
DESCRIPTION OF BUSINESS AND H_2
DESCRIPTION OF BUSINESS AND HISTORY (Details Narrative) - USD ($) | May 03, 2016 | May 02, 2016 | Jul. 31, 2015 | Jun. 30, 2021 |
Common stock shares redeem | 10,000,000 | |||
Share price | $ 0.0001 | |||
Reedem price of share | $ 1,000 | |||
Issuance of restricted common stock | 10,000,000 | |||
Ownership percentage | 100.00% | |||
Wenfa "Simon" Sun [Member] | ||||
Issuance of restricted common stock | 6,000,000 | |||
MeiHong "Sanya" Qian [Member] | ||||
Issuance of restricted common stock | 4,000,000 | |||
Share Purchase Agreement [Member] | ||||
Ownership percentage | 100.00% | 100.00% | ||
Sale of Common stock, shares | 10,000,000 | |||
Sale of stock consideration received | $ 40,000 | |||
Closing date | Aug. 12, 2015 |
SIGNIFICANT CONCENTRATION (Deta
SIGNIFICANT CONCENTRATION (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Revenues | $ 694,929 | $ 227,423 | $ 951,119 | $ 1,281,438 | |
Accounts Receivable | 40,887 | $ 40,887 | $ 12,824 | ||
Revenue [Member] | |||||
Concentration risk percentage | 10.00% | ||||
Revenue [Member] | Zhongjun Jilian [Member] | |||||
Concentration risk percentage | 20.00% | ||||
Revenues | $ 194,574 | ||||
Revenue [Member] | Chongqing Zhongdao Bio-tech Co., Ltd. [Member] | |||||
Concentration risk percentage | 36.00% | ||||
Revenues | $ 220,188 | ||||
Revenue [Member] | Shanghai Haan [Member] | |||||
Concentration risk percentage | 36.00% | ||||
Revenues | $ 346,975 | ||||
Accounts Receivable [Member] | |||||
Concentration risk percentage | 10.00% | ||||
Accounts Receivable [Member] | Zhongjun Jilian [Member] | |||||
Concentration risk percentage | 26.00% | ||||
Accounts Receivable | 10,516 | $ 10,516 | |||
Accounts Receivable [Member] | Shanghai Haan [Member] | |||||
Concentration risk percentage | 27.00% | ||||
Accounts Receivable | $ 11,212 | $ 11,212 |
SIGNIFICANT CONCENTRATION (De_2
SIGNIFICANT CONCENTRATION (Details Narrative) | 6 Months Ended |
Jun. 30, 2021 | |
Insurance on deposit , description | more than 500,000 yuan for each depositor in a bank |
Revenue [Member] | |
Concentration risk percentage | 10.00% |
Accounts Receivable [Member] | |
Concentration risk percentage | 10.00% |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
ACCOUNTS RECEIVABLE | ||
Accounts Receivable | $ 40,887 | $ 12,824 |
Less: allowance for doubtful accounts | 0 | 0 |
Accounts receivable, net | $ 40,887 | $ 12,824 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
INVENTORIES | ||
Raw materials and parts | $ 84,202 | $ 66,089 |
Finished goods | 160,193 | 248,571 |
Total | 244,395 | 314,660 |
Less: allowance for inventory reserve | 0 | (7,687) |
Total inventory, net | $ 244,395 | $ 306,973 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Total property and equipment | $ 52,231 | $ 51,670 |
Less accumulated depreciation | (44,947) | (39,443) |
Property and equipment, net | 7,284 | 12,227 |
Equipments [Member] | ||
Total property and equipment | 15,238 | 15,074 |
Automobile [Member] | ||
Total property and equipment | 36,761 | 36,366 |
Acer Truncatum Sapling [Member] | ||
Total property and equipment | $ 232 | $ 230 |
PROPERTY AND EQUIPMENT (Detai_2
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2021 | |
PROPERTY AND EQUIPMENT | ||
Depreciation expense | $ 5,932 | $ 5,065 |
CAPITALIZED SOFTWARE COSTS (Det
CAPITALIZED SOFTWARE COSTS (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
CAPITALIZED SOFTWARE COSTS | ||
Software | $ 30,192 | $ 23,496 |
Less accumulated amortization | (25,898) | (19,248) |
Software costs, net | $ 4,294 | $ 4,248 |
CAPITALIZED SOFTWARE COSTS (D_2
CAPITALIZED SOFTWARE COSTS (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
CAPITALIZED SOFTWARE COSTS | ||
Amortization expense | $ 6,428 | $ 7,948 |
LOAN PAYABLE (Details Narrative
LOAN PAYABLE (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Vehicle value | $ 7,548 | |
Security for loan amount | 15,483 | |
Loan payable | 95,222 | |
Loans payable, past due | 34,063 | |
Interest expenses | $ 5,029 | |
Repayment of loans | $ 18,891 | |
Maximum [Member] | ||
Interst rate | 30.00% | |
Minimum [Member] | ||
Interst rate | 0.00% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Loan payable, related party | $ 37,480 | $ 183,709 |
Other payable, related party | $ 423,095 | 426,027 |
Chief Executive Officer [Member] | January 1, 2020 [Member] | ||
Loan payable maturity date | Dec. 31, 2020 | |
Loan payable face amount | $ 644,544 | |
Loan payable description | The loan is unsecured, non-interest bearing. | |
Loan payable, related party | $ 37,480 | |
Related Parties [Member] | ||
Other payable, related party | $ 423,095 | $ 426,027 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ||
Accumulated other comprehensive loss, beginning of period | $ (28,823) | $ (12,338) |
Change in cumulative translation adjustment | (3,065) | (16,485) |
Accumulated other comprehensive loss, end of period | $ (31,888) | $ (28,823) |