Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Oct. 31, 2016 | Dec. 20, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Gushen, Inc | |
Entity Central Index Key | 1,639,327 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --04-30 | |
Document Type | 10-Q | |
Document Period End Date | Oct. 31, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 29,018,750 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Oct. 31, 2016 | Apr. 30, 2016 |
NON-CURRENT ASSETS | ||
Plant and equipment, net | $ 141,396 | $ 308 |
CURRENT ASSETS | ||
Loans receivables | 34,985 | 41,719 |
Prepayments | 28,609 | 30,667 |
Deposits | 105,787 | 28,196 |
Cash and cash equivalents | 56,042 | 1,691,079 |
TOTAL ASSETS | 366,819 | 1,791,969 |
CURRENT LIABILITIES | ||
Other payables and accrued liabilities | 17,406 | 18,255 |
Amount due to a director | 837,578 | 1,911,576 |
TOTAL LIABILITIES | 854,984 | 1,929,831 |
STOCKHOLDERS’ DEFICIT | ||
Preferred stock, $0.0001 par value; 200,000,000 shares authorized; None issued and outstanding | ||
Common stock, $ 0.0001 par value; 600,000,000 shares authorized; 29,018,750 shares issued and outstanding as of October 31, 2016 and April 30, 2016 | 2,902 | 2,902 |
Additional paid-in capital | 113,948 | 113,948 |
Accumulated deficit | (605,015) | (254,712) |
TOTAL STOCKHOLDERS’ DEFICIT | (488,165) | (137,862) |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | $ 366,819 | $ 1,791,969 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Oct. 31, 2016 | Apr. 30, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 200,000,000 | 200,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 600,000,000 | 600,000,000 |
Common stock, shares issued | 29,018,750 | 29,018,750 |
Common stock, shares outstanding | 29,018,750 | 29,018,750 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2016 | Oct. 31, 2015 | |
Income Statement [Abstract] | ||||
REVENUE | ||||
Loan interest income | 10,079 | 14,134 | ||
Service income | 3,800 | 3,800 | ||
Total income | 10,079 | 3,800 | 14,134 | 3,800 |
COST OF REVENUE | ||||
Cost of service | (3,484) | (1,800) | (3,484) | (1,800) |
GROSS PROFIT | 6,595 | 2,000 | 10,650 | 2,000 |
OPERATING EXPENSES: | ||||
General and administrative | (176,347) | (47,662) | (360,953) | (60,223) |
LOSS BEFORE INCOME TAX | (169,752) | (45,662) | (350,303) | (58,223) |
Income tax expense | ||||
NET LOSS | $ (169,752) | $ (45,662) | $ (350,303) | $ (58,223) |
Net loss per share, basic and diluted: | $ (0.01) | $ 0 | $ (0.01) | $ 0 |
Weighted average number of common shares outstanding, basic and diluted | 29,018,750 | 28,930,000 | 29,018,750 | 28,930,000 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Oct. 31, 2016 | Oct. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (350,303) | $ (58,223) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation | 15,720 | 38 |
Changes in operating assets and liabilities | ||
Loans receivables | 6,734 | |
Prepayments | 2,058 | |
Deposits | (77,591) | (27,030) |
Other payables and accrued liabilities | (849) | 8,500 |
Net cash used in operating activities | (404,231) | (76,715) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of plant and equipment | (156,808) | (385) |
Net cash used in investing activities | (156,808) | (385) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
(Repayment to) advances from a director, net | (1,073,998) | 69,964 |
Net cash (used in) provided from financing activities | (1,073,998) | 69,964 |
Net changes in cash and cash equivalents | (1,635,037) | (7,136) |
Cash and cash equivalents, beginning of period | 1,691,079 | 59,649 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 56,042 | 52,513 |
SUPPLEMENTAL CASH FLOWS INFORMATION | ||
Income taxes paid | ||
Interest paid |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Oct. 31, 2016 | |
Basis of Presentation [Abstract] | |
BASIS OF PRESENTATION | NOTE 1 - BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared by management in accordance with both accounting principles generally accepted in the United States (“GAAP”), and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and note disclosures normally included in audited financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) necessary for the fair presentation of the financial information for the interim periods reported have been made. Results of operations for the six months ended October 31, 2016 are not necessarily indicative of the results for the year ending April 30, 2017 or any period thereafter. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the Management’s Discussion and the audited financial statements and notes thereto included in the Annual Report on Form 10-K for the fiscal year ended April 30, 2016. |
Organization and Business Backg
Organization and Business Background | 6 Months Ended |
Oct. 31, 2016 | |
Organization and Business Background [Abstract] | |
ORGANIZATION AND BUSINESS BACKGROUND | NOTE 2 - ORGANIZATION AND BUSINESS BACKGROUND Gushen, Inc. (the “Company”) was incorporated on March 9, 2015 in the state of Nevada. The Company is a development stage company with nominal operations. The principal activities of the Company are the provision of managerial assistance services including funding, administrative and IT support services for small and medium enterprises (“SMEs”) and money lending service in Hong Kong through its wholly-owned subsidiaries, Gushen Holding Limited (“Gushen Holding”), a company incorporated in the Republic of Seychelles, and Gushen Credit Limited (“Gushen Credit), a company incorporated in Hong Kong. The Company attempts to assist the SMEs which are recently established and at an early stage of operations, but will not participate in board of the SMEs or making business decision. The primary purpose behind focusing on providing services to companies at this early stage of development will be for the Company to establish and nurture long-term relationships with clients during their growth and development. On August 5, 2016, Gushen Holding acquired 100% equity interest of Gushen Credit Limited, a company incorporated in Hong Kong, for a cash consideration of $0.13. Gushen Credit Limited has obtained a Money Lender License by Hong Kong Licensing Court for a period of 12 months commencing from December 3, 2015 and is authorized to carry on money lending business in Hong Kong under the Hong Kong Money Lender Ordinance (Chapter 163 of the Laws of Hong Kong). Mr. Huang Pin Lung, the director of the Company, is the sole stockholder and director of Gushen Credit. The merger of Gushen Credit into Gushen Holding, which has nominal net assets, is considered to be acquisition transactions under common control. For accounting purpose, Gushen, Inc., the holding company of Gushen Holding, presents consolidated financial statements as of the beginning of the period as though the acquisition had occurred at the beginning of the period. Financial statements of all prior periods are retrospectively adjusted to furnish comparative information. No goodwill was recognized for these acquisition transactions under common control. Gushen, Inc. and its subsidiaries are herein after referred to as the “Company”. |
Going Concern Uncertainties
Going Concern Uncertainties | 6 Months Ended |
Oct. 31, 2016 | |
Going Concern Uncertainties [Abstract] | |
GOING CONCERN UNCERTAINTIES | NOTE 3 - GOING CONCERN UNCERTAINTIES The accompanying unaudited condensed 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. As of October 31, 2016, the Company suffered an accumulated deficit of $605,015 and incurred a continuous net operating loss of $350,303 for the six months ended October 31, 2016. Although the Company has generated revenues from its money lending services, the Company’s cash position may not be significant enough to support the Company’s daily operations. The continuation of the Company as a going concern through April 30, 2017 is dependent upon improving the profitability and the continuing financial support from its stockholders. Management believes the existing shareholders or external financing will provide the additional cash to meet the Company’s obligations as they become due. These and other factors raise substantial doubt about the Company’s ability to continue as a going concern. These condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of 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 | 6 Months Ended |
Oct. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 4 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying condensed consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying consolidated financial statements and notes. Basis of presentation The accompanying condensed consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). Basis of consolidation The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. Use of estimates Management uses estimates and assumptions in preparing these condensed consolidated financial statements in accordance with US GAAP. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities in the balance sheet, and the reported revenue and expenses during the periods reported. Actual results may differ from these estimates. Plant and equipment Categories Expected useful life Furniture, fixtures, and office equipment 5 years Leasehold improvement 5 years Cash and cash equivalents Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. Loans receivables Loans receivables primarily represent loan amount due from customers. Loans receivables are recorded at unpaid principal balances and net of an allowance that reflects the Company’s best estimate of the amounts that will not be collected. As of October 31, 2016, the loans receivables portfolio consists of personal loans. Allowance for loan losses Management’s policy is to maintain the allowance for loan losses at a level sufficient to absorb estimated probable incurred losses in the loan portfolio. The loan loss allowance is a valuation allowance established to provide for estimated incurred credit losses in the portfolio of loans at the balance sheet. The Company may incur losses in connection with loans if borrowers fail to pay their monthly loan payments. The allowance for loan losses is increased by the provision for loan losses and recoveries and is decreased by charged-off loans. When the loans become uncollectible, a charge-off will be recorded by reducing both loan balance (credit) and allowance for loan losses (debit). The Company provides for incurred losses on loans with an allowance for loan losses in accordance with Accounting Standards Codification 310-10 “Receivables” An insignificant delay or insignificant shortfall in amount of payments does not require application of this Statement. A loan is not impaired during a period of delay in payment if the creditor expects to collect all amounts due including interest accrued at the contractual interest rate for the period of delay. The allowance for loan losses, which management evaluates on a periodic basis, represents an estimate of potential credit losses inherent in the portfolio and is based on a variety of factors, including the composition and quality of the loan portfolio, delinquency levels and trends, indication of credit deterioration, deterioration of the fair value of the loan collateral and the inability of the borrower to provide additional collateral to make up for the shortfall. Determining the adequacy of the allowance for loan losses is subjective, complex and requires judgment by management about the effect of matters that are inherently uncertain. For the six months ended October 31, 2016, there was no provision for allowance for loan losses. Revenue recognition In accordance with the Accounting Standard Codification Topic 605 “Revenue Recognition” (“ASC 605”), the Company recognizes revenue when the following four criteria are met: (1) delivery has occurred or services rendered; (2) persuasive evidence of an arrangement exists; (3) there are no continuing obligations to the customer; and (4) the collection of related accounts receivable is probable. (a) Loan interest income The Company uses the effective interest method to recognize income on loans. Interest on loans is comprised largely of interest and late fees on loans. Interest income is recognized based upon the amount of loans outstanding and their contractual interest rate. Late fees are recognized when billable to the customer. Interest income is accrued and recorded in the consolidated statement of operations as earned. Loans are placed on non-accrual status when any portion of scheduled loan principal or interest payments is impaired, or earlier, when concern exists as to the ultimate collectability of outstanding principal or interest. When loans are placed on non-accrual status, all interest previously accrued but not collected is reversed against current period interest income. Income on non-accrual loans is subsequently recognized only to the extent cash is received. Loans are written off when deemed uncollectible. Loans return to accrual status when principal and interest become current and are anticipated to be fully collectible on a timely basis. (b) Service income Revenue from the provision of IT consulting and support service based upon the customer’s specifications. The services are billed either on a fixed-fee basis or on a time-and-material basis. Generally, the Company recognizes revenue when services are performed and accepted by the customers. Cost of revenues Cost of revenues represented the purchase costs of computer hardware for re-sale to customer and subcontractor fee for loans collection Income taxes Income taxes are determined in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC Topic 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 periods 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. The Company did not have any unrecognized tax positions or benefits and there was no effect on the financial condition or results of operations for the six months ended October 31, 2016. The Company and its subsidiary are subject to local and foreign tax jurisdictions. The Company’s tax returns remain open subject to examination by major tax jurisdictions. Net loss per share The Company calculates net loss per share in accordance with ASC Topic 260 “Earnings per share”. Basic loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted loss per share is computed similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive. 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 statements of operations. The reporting currency of the Company is United States Dollars (“US$”) and the accompanying condensed consolidated financial statements have been expressed in US$. In addition, the Company’s subsidiary in Seychelles and Hong Kong also maintain its books and record in US$. Related parties Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence. Fair value of financial instruments: The carrying value of the Company's financial instruments: cash and cash equivalents, loans receivables, prepayment, deposits, accounts payable and accrued liabilities and amount due to a director approximate at their fair values because of the short-term nature of these financial instruments. The Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” ("ASC 820-10"), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own Recent accounting pronouncements The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations. |
Loans Receivables
Loans Receivables | 6 Months Ended |
Oct. 31, 2016 | |
Loans Receivables [Abstract] | |
LOANS RECEIVABLES | NOTE 5 - LOANS RECEIVABLES For the three months ended October 31, 2016 and 2015, the Company generated loan interest income of $10,079 and $0, respectively. For the six months ended October 31, 2016 and 2015, the Company generated loan interest income of $14,134 and $0, respectively. |
Plant and Equipment
Plant and Equipment | 6 Months Ended |
Oct. 31, 2016 | |
Plant and Equipment [Abstract] | |
PLANT AND EQUIPMENT | NOTE 6 - PLANT AND EQUIPMENT As of October 31, April 30, Furniture, fixtures, and office equipment $ 3,045 $ 385 Leasehold improvement 154,147 - 157,192 385 Less: Accumulated depreciation (15,796 ) (77 ) Total $ 141,396 $ 308 Depreciation expense was $7,859 and $19 for the three months ended October 31, 2016 and 2015, respectively. Depreciation expense was $15,719 and $38 for the six months ended October 31, 2016 and 2015, respectively. |
Amount Due to a Director
Amount Due to a Director | 6 Months Ended |
Oct. 31, 2016 | |
Amount Due to a Director [Abstract] | |
AMOUNT DUE TO A DIRECTOR | NOTE 7 - AMOUNT DUE TO A DIRECTOR As of October 31, 2016 and April 30, 2016, the director of the Company advanced $837,578 and $1,911,576, respectively to the Company, which is unsecured, interest-free and is payable upon demand, for working capital purpose. Imputed interest is considered insignificant. |
Income Taxes
Income Taxes | 6 Months Ended |
Oct. 31, 2016 | |
Income Taxes [Abstract] | |
INCOME TAXES | NOTE 8 - INCOME TAXES For the six months ended October 31, 2016 and 2015, the local (United States) and foreign components of loss before income taxes were comprised of the following: For the six months ended October 31, 2016 2015 Tax jurisdictions from: - Local $ (14,348 ) $ (9,904 ) - Foreign, representing Seychelles (316 ) 808 Hong Kong (335,639 ) (49,127 ) Loss before income tax $ (350,303 ) $ (58,223 ) The provision for income taxes consisted of the following: For the six months ended October 31, 2016 2015 Current: - Local $ - $ - - Foreign - - Deferred: - Local - - - Foreign - - Income tax expense $ - $ - The effective tax rate in the periods presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rates. The Company and its subsidiary that operate in various countries: United States, Seychelles and Hong Kong that are subject to taxes in the jurisdictions in which they operate, as follows: United States of America The Company is registered in the State of Nevada and is subject to the tax laws of the United States of America. As of October 31, 2016, the operations in the United States of America incurred $48,123 of cumulative net operating losses which can be carried forward to offset future taxable income. The net operating loss carryforwards begin to expire in 2035, if unutilized. The Company has provided for a full valuation allowance of $16,843 against the deferred tax assets on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future. Seychelles Under the current laws of the Republic of Seychelles (“Seychelles”), Gushen Holding is registered as an international business company which governs by the International Business Companies Act of Seychelles. A company is subject to Seychelles income tax if it does business in Seychelles. A company that is incorporated in Seychelles, but that does not do business in Seychelles, is not subject to income tax there. Gushen Holding did not do business in Seychelles for the six months ended October 31, 2016, and it does not intend to do business in Seychelles in the future. For the six months ended October 31, 2016 and 2015, Gushen Holding had a net operating loss of $316 and a net operating income of $808, respectively. Hong Kong Gushen Credit is subject to Hong Kong Profits Tax, which is charged at the statutory income tax rate of 16.5% on its assessable income. For the six months ended October 31, 2016, no provision for income tax is required due to operating loss incurred. As of October 31, 2016, Gushen Credit incurred $555,846 of cumulative net operating losses which can be carried forward to offset future taxable income at no expiration. The Company has provided for a full valuation allowance against the deferred tax assets of $89,108 on the expected future tax benefits from the net operating loss carryforward as the management believes it is more likely than not that these assets will not be realized in the future. The following table sets forth the significant components of the aggregate deferred tax assets of the Company as of October 31, 2016 and April 30, 2016: As of October 31, April 30, Deferred tax assets: (unaudited) (unaudited) Net operating loss carryforwards – United States of America $ 16,843 $ 11,821 – Hong Kong 89,108 36,321 105,951 48,142 Less: valuation allowance (105,951 ) (48,142 ) Deferred tax assets $ - $ - Management believes that it is more likely than not that the deferred tax assets will not be fully realizable in the future. Accordingly, the Company provided for a full valuation allowance against its deferred tax assets of $105,951 as of October 31, 2016. During the six months ended October 31, 2016, the valuation allowance increased by $57,809, primarily relating to net operating loss carryforwards from the various tax regime. |
Concentrations of Risks
Concentrations of Risks | 6 Months Ended |
Oct. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS OF RISKS | NOTE 9 - CONCENTRATIONS OF RISKS (a) Major customers For the three months ended October 31, 2016, there was one customer who accounted for 97% of the Company’s revenues with loans receivables balance of $31,173 at period-end. For the six months ended October 31, 2016, there was one customer who accounted for 94% of the Company’s revenues with loans receivables balance of $31,173 at period-end. For the three and six months ended October 31, 2015, there was one customer who accounted for 100% of the Company’s revenues with no receivable balance at period-end. (b) Major vendors For the three and six months ended October 31, 2016, there was one vendor who accounted for 100% of the Company’s cost of revenues with no accounts payable balance at period-end. For the three and six months ended October 31, 2015, there was one vendor who accounted for 100% of the Company’s cost of revenues with accounts payable balance of $1,800 at period-end. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Oct. 31, 2016 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 10 - COMMITMENTS AND CONTINGENCIES The Company leases an office premises in Hong Kong under a non-cancellable operating lease that expire in April 2018 with an aggregate fixed monthly rent of approximately $20,645. Total rent expense for the six months ended October 31, 2016 and 2015 were $192,881 and $35,683, respectively. As of October 31, 2016, the Company has the aggregate future minimum rental payments due under an operating lease in the next two years, as follows: Period ending October 31: 2017 $ 247,742 2018 123,871 $ 371,613 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Oct. 31, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 11 - SUBSEQUENT EVENTS In accordance with ASC Topic 855, “Subsequent Events”, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued, the Company has evaluated all events or transactions that occurred after October 31, 2016 up through the date the Company presented this condensed consolidated financial statements. During the period, the Company did not have any material recognizable. |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Oct. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying condensed consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). |
Basis of consolidation | Basis of consolidation The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. |
Use of estimates | Use of estimates Management uses estimates and assumptions in preparing these condensed consolidated financial statements in accordance with US GAAP. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities in the balance sheet, and the reported revenue and expenses during the periods reported. Actual results may differ from these estimates. |
Plant and equipment | Plant and equipment Categories Expected useful life Furniture, fixtures, and office equipment 5 years Leasehold improvement 5 years |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. |
Loans receivables | Loans receivables Loans receivables primarily represent loan amount due from customers. Loans receivables are recorded at unpaid principal balances and net of an allowance that reflects the Company’s best estimate of the amounts that will not be collected. As of October 31, 2016, the loans receivables portfolio consists of personal loans. |
Allowance for loan losses | Allowance for loan losses Management’s policy is to maintain the allowance for loan losses at a level sufficient to absorb estimated probable incurred losses in the loan portfolio. The loan loss allowance is a valuation allowance established to provide for estimated incurred credit losses in the portfolio of loans at the balance sheet. The Company may incur losses in connection with loans if borrowers fail to pay their monthly loan payments. The allowance for loan losses is increased by the provision for loan losses and recoveries and is decreased by charged-off loans. When the loans become uncollectible, a charge-off will be recorded by reducing both loan balance (credit) and allowance for loan losses (debit). The Company provides for incurred losses on loans with an allowance for loan losses in accordance with Accounting Standards Codification 310-10 “Receivables” An insignificant delay or insignificant shortfall in amount of payments does not require application of this Statement. A loan is not impaired during a period of delay in payment if the creditor expects to collect all amounts due including interest accrued at the contractual interest rate for the period of delay. The allowance for loan losses, which management evaluates on a periodic basis, represents an estimate of potential credit losses inherent in the portfolio and is based on a variety of factors, including the composition and quality of the loan portfolio, delinquency levels and trends, indication of credit deterioration, deterioration of the fair value of the loan collateral and the inability of the borrower to provide additional collateral to make up for the shortfall. Determining the adequacy of the allowance for loan losses is subjective, complex and requires judgment by management about the effect of matters that are inherently uncertain. For the six months ended October 31, 2016, there was no provision for allowance for loan losses. |
Revenue recognition | Revenue recognition In accordance with the Accounting Standard Codification Topic 605 “Revenue Recognition” (“ASC 605”), the Company recognizes revenue when the following four criteria are met: (1) delivery has occurred or services rendered; (2) persuasive evidence of an arrangement exists; (3) there are no continuing obligations to the customer; and (4) the collection of related accounts receivable is probable. (a) Loan interest income The Company uses the effective interest method to recognize income on loans. Interest on loans is comprised largely of interest and late fees on loans. Interest income is recognized based upon the amount of loans outstanding and their contractual interest rate. Late fees are recognized when billable to the customer. Interest income is accrued and recorded in the consolidated statement of operations as earned. Loans are placed on non-accrual status when any portion of scheduled loan principal or interest payments is impaired, or earlier, when concern exists as to the ultimate collectability of outstanding principal or interest. When loans are placed on non-accrual status, all interest previously accrued but not collected is reversed against current period interest income. Income on non-accrual loans is subsequently recognized only to the extent cash is received. Loans are written off when deemed uncollectible. Loans return to accrual status when principal and interest become current and are anticipated to be fully collectible on a timely basis. (b) Service income Revenue from the provision of IT consulting and support service based upon the customer’s specifications. The services are billed either on a fixed-fee basis or on a time-and-material basis. Generally, the Company recognizes revenue when services are performed and accepted by the customers. |
Cost of revenues | Cost of revenues Cost of revenues represented the purchase costs of computer hardware for re-sale to customer and subcontractor fee for loans collection |
Income taxes | Income taxes Income taxes are determined in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC Topic 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 periods 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. The Company did not have any unrecognized tax positions or benefits and there was no effect on the financial condition or results of operations for the six months ended October 31, 2016. The Company and its subsidiary are subject to local and foreign tax jurisdictions. The Company’s tax returns remain open subject to examination by major tax jurisdictions. |
Net loss per share | Net loss per share The Company calculates net loss per share in accordance with ASC Topic 260 “Earnings per share”. Basic loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted loss per share is computed similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive. |
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 statements of operations. The reporting currency of the Company is United States Dollars (“US$”) and the accompanying condensed consolidated financial statements have been expressed in US$. In addition, the Company’s subsidiary in Seychelles and Hong Kong also maintain its books and record in US$. |
Related parties | Related parties Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence. |
Fair value of financial instruments: | Fair value of financial instruments: The carrying value of the Company's financial instruments: cash and cash equivalents, loans receivable, prepayment, deposits, accounts payable and accrued liabilities and amount due to a director approximate at their fair values because of the short-term nature of these financial instruments. The Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” ("ASC 820-10"), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. |
Recent accounting pronouncements | Recent accounting pronouncements The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations. |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Oct. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of plant and equipment estimated useful life | Categories Expected useful life Furniture, fixtures, and office equipment 5 years Leasehold improvement 5 years |
Plant and Equipment (Tables)
Plant and Equipment (Tables) | 6 Months Ended |
Oct. 31, 2016 | |
Plant and Equipment [Abstract] | |
Schedule of plant and equipment | As of October 31, 2016 April 30, Furniture, fixtures, and office equipment $ 3,045 $ 385 Leasehold improvement 154,147 - 157,192 385 Less: Accumulated depreciation (15,796 ) (77 ) Total $ 141,396 $ 308 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Oct. 31, 2016 | |
Income Taxes [Abstract] | |
Schedule of local (United States) and foreign components of loss before income taxes | For the six months ended October 31, 2016 2015 Tax jurisdictions from: - Local $ (14,348 ) $ (9,904 ) - Foreign, representing Seychelles (316 ) 808 Hong Kong (335,639 ) (49,127 ) Loss before income tax $ (350,303 ) $ (58,223 ) |
Schedule of provision for income taxes | For the six months ended October 31, 2016 2015 Current: - Local $ - $ - - Foreign - - Deferred: - Local - - - Foreign - - Income tax expense $ - $ - |
Schedule of deferred tax assets | As of October 31, April 30, Deferred tax assets: (unaudited) (unaudited) Net operating loss carryforwards – United States of America $ 16,843 $ 11,821 – Hong Kong 89,108 36,321 105,951 48,142 Less: valuation allowance (105,951 ) (48,142 ) Deferred tax assets $ - $ - |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Oct. 31, 2016 | |
Commitments and Contingencies [Abstract] | |
Schedule of future minimum rental payments | Period ending October 31: 2017 $ 247,742 2018 123,871 $ 371,613 |
Organization and Business Bac22
Organization and Business Background (Details) | Aug. 05, 2016$ / shares |
Organization and Business Background (Textual) | |
Business acquisition equity interest, description | Gushen Holding acquired 100% equity interest of Gushen Credit Limited, a company incorporated in Hong Kong, |
Cash consideration per share | $ 0.13 |
Going Concern Uncertainties (De
Going Concern Uncertainties (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2016 | Oct. 31, 2015 | Apr. 30, 2016 | |
Going Concern Uncertainties (Textual) | |||||
Accumulated deficit | $ (605,015) | $ (605,015) | $ (254,712) | ||
Net loss for the period | $ (169,752) | $ (45,662) | $ (350,303) | $ (58,223) |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Details) | 6 Months Ended |
Oct. 31, 2016 | |
Furniture, fixtures, and office equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Expected useful life | 5 years |
Leasehold improvement [Member] | |
Property, Plant and Equipment [Line Items] | |
Expected useful life | 5 years |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Details Textual) | 6 Months Ended |
Oct. 31, 2016 | |
Summary of Significant Accounting Policies (Textual) | |
Tax benefit, description | Greater than 50%. |
Loans Receivables (Details)
Loans Receivables (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2016 | Oct. 31, 2015 | Apr. 30, 2016 | |
Loans Receivables (Textual) | |||||
Acquired total loans receivable | $ 41,719 | $ 41,719 | |||
Loans receivable interest bearing interest rate minimum | 36.00% | ||||
Loans receivable interest bearing interest rate maximum | 51.443% | ||||
Total loans receivable | 34,985 | $ 34,985 | $ 41,719 | ||
Loan interest income | $ 10,079 | $ 14,134 |
Plant and Equipment (Details)
Plant and Equipment (Details) - USD ($) | Oct. 31, 2016 | Apr. 30, 2016 |
Property, Plant and Equipment [Line Items] | ||
Plant and equipment, Gross | $ 157,192 | $ 385 |
Less: Accumulated depreciation | (15,796) | (77) |
Total | 141,396 | 308 |
Furniture, fixtures, and office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Plant and equipment, Gross | 3,045 | 385 |
Leasehold improvement [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Plant and equipment, Gross | $ 154,147 |
Plant and Equipment (Details Te
Plant and Equipment (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2016 | Oct. 31, 2015 | |
Plant and equipment (Textual) | ||||
Depreciation | $ 7,859 | $ 19 | $ 15,720 | $ 38 |
Amount Due to a Director (Detai
Amount Due to a Director (Details) - USD ($) | Oct. 31, 2016 | Apr. 30, 2016 |
Amount Due to a Director (Textual) | ||
Advance due to a director | $ 837,578 | $ 1,911,576 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2016 | Oct. 31, 2015 | |
Tax jurisdictions from: | ||||
Local | $ (14,348) | $ (9,904) | ||
Foreign, representing Seychelles | (316) | 808 | ||
Hong Kong | (335,639) | (49,127) | ||
Loss before income tax | $ (169,752) | $ (45,662) | $ (350,303) | $ (58,223) |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2016 | Oct. 31, 2015 | |
Current: | ||||
Local | ||||
Foreign | ||||
Deferred: | ||||
Local | ||||
Foreign | ||||
Income tax expense |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) | Oct. 31, 2016 | Apr. 30, 2016 |
Deferred tax assets: | ||
Deferred tax assets, gross | $ 105,951 | $ 48,142 |
Less: valuation allowance | (105,951) | (48,142) |
Deferred tax assets | ||
United States of America | ||
Deferred tax assets: | ||
Deferred tax assets, gross | 16,843 | 11,821 |
Hong Kong | ||
Deferred tax assets: | ||
Deferred tax assets, gross | $ 89,108 | $ 36,321 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | 6 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Apr. 30, 2016 | |
Income Taxes (Textual) | |||
Cumulative net operating losses | $ 48,123 | ||
Net operating loss carryforwards expiration date | Expire in 2035. | ||
Deferred tax assets valuation allowance | $ 105,951 | $ 48,142 | |
Net operating loss Seychelles | $ (316) | $ 808 | |
Statutory income tax rate | 16.50% | ||
Deferred tax assets | $ 89,108 | ||
Cumulative net operating losses | 555,846 | ||
Net operating loss carry forward | $ 57,809 |
Concentrations of Risks (Detail
Concentrations of Risks (Details) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2016USD ($)CustomerVendor | Oct. 31, 2015USD ($)CustomerVendor | Oct. 31, 2016USD ($)CustomerVendor | Oct. 31, 2015USD ($)CustomerVendor | |
Accounts Receivable [Member] | ||||
Concentrations of Risks (Textual) | ||||
Number of customer | Customer | 1 | 1 | 1 | 1 |
Concentration risk, Percentage | 97.00% | 100.00% | 94.00% | 100.00% |
Account receivable balance | $ 31,173 | $ 31,173 | ||
Accounts payable [Member] | ||||
Concentrations of Risks (Textual) | ||||
Concentration risk, Percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Number of vendor | Vendor | 1 | 1 | 1 | 1 |
Accounts payable balance | $ 1,800 | $ 1,800 |
Commitments and Contingencies35
Commitments and Contingencies (Details) | Oct. 31, 2016USD ($) |
Commitments and Contingencies [Abstract] | |
2,017 | $ 247,742 |
2,018 | 123,871 |
Total future minimum rental payments | $ 371,613 |
Commitments and Contingencies36
Commitments and Contingencies (Details Textual) - USD ($) | 6 Months Ended | |
Oct. 31, 2016 | Oct. 31, 2015 | |
Commitments and contingencies (Textual) | ||
Operating lease expire | Apr. 30, 2018 | |
Fixed monthly rent | $ 20,645 | |
Total rent expense | $ 192,881 | $ 35,683 |
Operating lease contract term | 2 years |