Document Entity Information
Document Entity Information | 6 Months Ended |
Jun. 30, 2019 | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | EOS INC. |
Entity Central Index Key | 0001651958 |
Entity Filer Category | Non-accelerated Filer |
Document Type | S-1 |
Document Period End Date | Jun. 30, 2019 |
Amendment Flag | false |
Entity Small Business | true |
Entity Emerging Growth Company | false |
Entity Ex Transition Period | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets | |||
Cash and cash equivalents | $ 7,622 | $ 36,130 | $ 24,610 |
Accounts receivable | 351,268 | 464,937 | |
Accounts receivable - related parties | 1,146,045 | 1,365,321 | 786,181 |
Inventory | 2,084 | 7,211 | 88 |
Advance to suppliers | 76,541 | 25,879 | 4,150 |
Prepaid expenses | 28,162 | 28,060 | 18,604 |
Total current assets | 1,611,722 | 1,927,538 | 833,633 |
Property and equipment, net | 7,574 | 7,650 | 7,536 |
Operating lease right-of-use assets | 41,778 | ||
Security deposit | 6,615 | 2,693 | 7,842 |
Long-term investment | 30,000 | ||
Total Assets | 1,697,689 | 1,937,881 | 849,011 |
Current Liabilities | |||
Accounts payable | 715 | 46,400 | 37,248 |
Accrued expenses | 56,660 | 66,466 | 44,677 |
Due to shareholders | 76,435 | 147,281 | 97,573 |
Income tax payable | 30,262 | 38,945 | 36,030 |
Operating lease liabilities - current | 21,398 | ||
Total current liabilities | 185,470 | 299,092 | 215,528 |
Operating lease liabilities - noncurrent | 20,380 | ||
Total liabilities | 205,850 | 299,092 | 215,528 |
Stockholders' Equity | |||
Common stock, $0.001 par value; 75,000,000 shares authorized, 74,122,997 shares issued and outstanding for June 30, 2019 and 64,122,997 shares issued and outstanding for December 2018 and 2017 | 74,123 | 64,123 | 64,123 |
Additional paid-in capital | 112,425 | 90,000 | 90,000 |
Retained earnings | 1,325,699 | 1,496,131 | 466,806 |
Accumulated other comprehensive income (loss) | (20,408) | (11,465) | 12,554 |
Total stockholders' equity | 1,491,839 | 1,638,789 | 633,483 |
Total Liabilities and Stockholders' Equity | $ 1,697,689 | $ 1,937,881 | $ 849,011 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | |||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 75,000,000 | 75,000,000 | 75,000,000 |
Common stock shares issued | 74,122,997 | 64,122,997 | 64,122,997 |
Common stock, shares outstanding | 74,122,997 | 64,122,997 | 64,122,997 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Sales | ||||||
Net sales | $ 28,751 | $ 28,107 | $ 57,805 | $ 28,107 | $ 536,616 | $ 3,783 |
Net sales - related parties | 9,309 | 295,528 | 180,367 | 397,065 | 1,241,329 | 1,506,097 |
Total | 38,060 | 323,635 | 238,172 | 425,172 | 1,777,945 | 1,509,880 |
Cost of sales | 6,766 | 34,163 | 44,821 | 51,400 | 216,505 | 277,707 |
Gross profit | 31,294 | 289,472 | 193,351 | 373,772 | 1,561,440 | 1,232,173 |
Selling, general and administrative expenses | 187,379 | 132,744 | 373,930 | 263,296 | 547,680 | 351,040 |
Income (loss) from operations | (156,085) | 156,728 | (180,579) | 110,476 | 1,013,760 | 881,133 |
Other income (expense) | ||||||
Interest income | 48 | 39 | 48 | 39 | 81 | 41 |
Other income | 2,032 | 2,032 | 1,991 | 24 | ||
Other income - related parties | 60,138 | |||||
Gain (loss) on foreign currency exchange | 5,003 | 44,529 | 12,525 | 28,923 | 31,288 | (10,656) |
Gain (loss) on investment in equity securities | (2,426) | (2,426) | ||||
Total other income (expense) | 2,625 | 46,600 | 10,147 | 30,994 | 33,360 | 49,547 |
Income (loss) before income tax provision | (153,460) | 203,328 | (170,432) | 141,470 | 1,047,120 | 930,680 |
Income tax provision | 25,295 | 0 | 25,295 | 17,795 | 39,708 | |
Net income (loss) | (153,460) | 178,033 | (170,432) | 116,175 | 1,029,325 | 890,972 |
Comprehensive Income: | ||||||
Net income (loss) | (153,460) | 178,033 | (170,432) | 116,175 | 1,029,325 | 890,972 |
Foreign currency translation adjustment, net of tax | (1,853) | (32,668) | (8,943) | (21,007) | (24,019) | 12,014 |
Comprehensive Income (Loss) | $ (155,313) | $ 145,365 | $ (179,375) | $ 95,168 | $ 1,005,306 | $ 902,986 |
Net loss per share: | ||||||
Basic and diluted (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0.02 | $ 0.01 |
Weighted average number of common shares: | ||||||
Basic and diluted (in shares) | 68,298,821 | 64,122,997 | 66,222,445 | 64,122,997 | 64,122,997 | 64,122,997 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) | Common Stock | Additional paid-in capital | Retained Earnings (Accumulated Deficit) | Accumulated other comprehensive income | Total |
Balance at Dec. 31, 2016 | $ 64,123 | $ 90,000 | $ (424,166) | $ 540 | $ (269,503) |
Balance (in shares) at Dec. 31, 2016 | 64,122,997 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Foreign currency translation adjustment | 12,014 | 12,014 | |||
Net Income (loss) | 890,972 | 890,972 | |||
Balance at Dec. 31, 2017 | $ 64,123 | 90,000 | 466,806 | 12,554 | 633,483 |
Balance (in shares) at Dec. 31, 2017 | 64,122,997 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Foreign currency translation adjustment | 11,661 | 11,661 | |||
Net Income (loss) | (61,858) | (61,858) | |||
Balance at Mar. 31, 2018 | $ 64,123 | 90,000 | 404,948 | 24,215 | 583,286 |
Balance (in shares) at Mar. 31, 2018 | 64,122,997 | ||||
Balance at Dec. 31, 2017 | $ 64,123 | 90,000 | 466,806 | 12,554 | 633,483 |
Balance (in shares) at Dec. 31, 2017 | 64,122,997 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Foreign currency translation adjustment | (21,007) | ||||
Net Income (loss) | 116,175 | ||||
Balance at Jun. 30, 2018 | $ 64,123 | 90,000 | 582,981 | (8,453) | 728,651 |
Balance (in shares) at Jun. 30, 2018 | 64,122,997 | ||||
Balance at Dec. 31, 2017 | $ 64,123 | 90,000 | 466,806 | 12,554 | 633,483 |
Balance (in shares) at Dec. 31, 2017 | 64,122,997 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Foreign currency translation adjustment | (24,019) | (24,019) | |||
Net Income (loss) | 1,029,325 | 1,029,325 | |||
Balance at Dec. 31, 2018 | $ 64,123 | 90,000 | 1,496,131 | (11,465) | 1,638,789 |
Balance (in shares) at Dec. 31, 2018 | 64,122,997 | ||||
Balance at Mar. 31, 2018 | $ 64,123 | 90,000 | 404,948 | 24,215 | 583,286 |
Balance (in shares) at Mar. 31, 2018 | 64,122,997 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Foreign currency translation adjustment | (32,668) | (32,668) | |||
Net Income (loss) | 178,033 | 178,033 | |||
Balance at Jun. 30, 2018 | $ 64,123 | 90,000 | 582,981 | (8,453) | 728,651 |
Balance (in shares) at Jun. 30, 2018 | 64,122,997 | ||||
Balance at Dec. 31, 2018 | $ 64,123 | 90,000 | 1,496,131 | (11,465) | 1,638,789 |
Balance (in shares) at Dec. 31, 2018 | 64,122,997 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Foreign currency translation adjustment | (7,090) | (7,090) | |||
Net Income (loss) | (16,972) | (16,972) | |||
Balance at Mar. 31, 2019 | $ 64,123 | 90,000 | 1,479,159 | (18,555) | 1,614,727 |
Balance (in shares) at Mar. 31, 2019 | 64,122,997 | ||||
Balance at Dec. 31, 2018 | $ 64,123 | 90,000 | 1,496,131 | (11,465) | 1,638,789 |
Balance (in shares) at Dec. 31, 2018 | 64,122,997 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Foreign currency translation adjustment | (8,943) | ||||
Net Income (loss) | (170,432) | ||||
Balance at Jun. 30, 2019 | $ 74,123 | 112,425 | 1,325,699 | (20,408) | 1,491,839 |
Balance (in shares) at Jun. 30, 2019 | 74,122,997 | ||||
Balance at Mar. 31, 2019 | $ 64,123 | 90,000 | 1,479,159 | (18,555) | 1,614,727 |
Balance (in shares) at Mar. 31, 2019 | 64,122,997 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common shares issued in exchange for investment in equity securities | $ 10,000 | 22,425 | 32,425 | ||
Common shares issued in exchange for investment in equity securities (in shares) | 10,000,000 | ||||
Foreign currency translation adjustment | (1,853) | (1,853) | |||
Net Income (loss) | (153,460) | (153,460) | |||
Balance at Jun. 30, 2019 | $ 74,123 | $ 112,425 | $ 1,325,699 | $ (20,408) | $ 1,491,839 |
Balance (in shares) at Jun. 30, 2019 | 74,122,997 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities | ||||
Net income (loss) | $ (170,432) | $ 116,175 | $ 1,029,325 | $ 890,972 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ||||
Depreciation | 902 | 1,383 | 2,510 | 1,143 |
Loss on investment in equity securities | 2,426 | |||
(Gain) loss on foreign currency exchange | (12,525) | (28,923) | (31,288) | 10,656 |
Changes in assets and liabilities: | ||||
Decrease (increase) in accounts receivable | 332,296 | (217,633) | (1,042,657) | (777,143) |
Decrease (increase) in inventory | 1,073 | 88 | (7,240) | 1,959 |
Decrease (increase) in advance to suppliers | (51,192) | (19,549) | (22,210) | (4,046) |
Decrease (increase) in prepaid expense and other assets | (507) | 11,778 | (5,226) | (16,346) |
Increase (decrease) in accounts payable | (45,683) | (23,260) | 9,757 | 33,354 |
Increase (decrease) in accrued expenses | (9,043) | 38,346 | 23,147 | 19,125 |
Increase (decrease) in income tax payable | (8,149) | 16,520 | 4,122 | 35,127 |
Increase (decrease) in advance from customers | (37,085) | |||
Increase (decrease) in due to shareholders | (69,312) | 137,547 | 53,265 | (141,928) |
Net cash provided by (used in) operating activities | (30,146) | 32,472 | 13,505 | 15,788 |
Cash flows from investing activities | ||||
Purchase of equipment | (935) | (1,809) | (2,869) | (5,102) |
Acquisition of subsidiary equity interest | (30,562) | |||
Net cash used in investing activities | (935) | (1,809) | (2,869) | (35,664) |
Effect of exchange rate changes on cash and cash equivalents | 2,573 | (960) | 884 | 2,400 |
Net increase (decrease) in cash and cash equivalents | (28,508) | 29,703 | 11,520 | (17,476) |
Cash and Cash Equivalents | ||||
Beginning | 36,130 | 24,610 | 24,610 | 42,086 |
Ending | 7,622 | 54,313 | 36,130 | 24,610 |
Cash paid during the year for: | ||||
Interest | 0 | 0 | 0 | 0 |
Income taxes | 0 | $ 0 | $ 13,673 | $ 1,528 |
Non-cash financing and investing activities | ||||
Common shares issued in exchange for investment in equity securities | $ 32,425 |
NATURE OF OPERATIONS AND SUMMAR
NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Nature Of Operations And Summary Of Accounting Policies [Abstract] | ||
NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES | Note 1. NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial reporting and in accordance with instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, the unaudited consolidated financial statements contained in this report reflect all adjustments that are normal and recurring in nature and considered necessary for a fair presentation of the financial position and the results of operations for the interim periods presented. The year-end balance sheet data were derived from audited consolidated financial statements, but does not include all disclosures required by GAAP. The results of operations for the interim period are not necessarily indicative of the results expected for the full year. These unaudited consolidated financial statements, footnote disclosures, and other information should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. Organization EOS Inc. was incorporated on April 3, 2015 in the State of Nevada. The Company’s business plan is to market and distribute skin care products, including masks and serums. On November 18, 2016, the Company has set up a wholly-owned subsidiary in Taiwan to assist the Company to promote the business in Taiwan. Emperor Star International Trade Co., Ltd., (“Emperor Star”), was incorporated on November 16, 2015 under the laws of Taiwan. Emperor Star is in the business of marketing and distribution of various products, including nutrition supplements, skin care products, and water purifying machines. On May 3, 2017, the Company entered into and closed a Share Purchase and Sale Agreement (the “Purchase Agreement”) with Emperor Star and the shareholder of Emperor Star to acquire all issued and outstanding shares of Emperor Star in consideration of $30,562 in cash. As a result of the Purchase, Emperor Star becomes the Company’s wholly owned subsidiary. Upon consummation of the Purchase, the Company has assumed the business of Emperor Star and ceased to be a shell company. On September 20, 2018, the Company set up another wholly-owned subsidiary, EOS International Inc. (“EOS(BVI)”), under the laws of British Virgin Islands. EOS(BVI) is in the business of marketing and distribution of various products, including nutrition supplements, skin care products, and water purifying machines. On March 1, 2019, EOS(BVI) set up a wholly-owned subsidiary, Shanghai Maosong Co., Ltd (“Maosong”), under the laws of People’s Republic of China. Maosong is in the business of marketing and distribution of various products, including nutrition supplements, skin care products, and water purifying machines in China. As of the date of this report, Maosong has a registered capital of USD $100,000, but no capital has actually been paid into Maosong. Principles of Consolidation The accompanying unaudited consolidated financial statements, including the accounts of EOS Inc. and its wholly owned subsidiaries in Taiwan, British Virgin Islands, and People’s Republic of China, have been prepared in conformity with accounting principles generally accepted in the United States of America. Since the Company and Emperor Star are entities under common control prior to the acquisition of Emperor Star, the transaction is accounted for as a restructuring transaction. All the assets and liabilities of Emperor Star were transferred to the Company at their respective carrying amounts on the date of transaction. The Company has recast prior period financial statements to reflect the conveyance of Emperor Star’s common shares as if the restructuring transaction had occurred as of the earliest date of the financial statements. All material intercompany accounts, transactions, and profits have been eliminated in consolidation. The nature of and effects on earnings per share (EPS) of nonrecurring intra-entity transactions involving long-term assets and liabilities is not required to be eliminated and EPS amounts have been recast to include the earnings (or losses) of the transferred net assets. The functional currency of the subsidiaries in Taiwan is the New Taiwan dollars and the subsidiary in People’s Republic of China is the Chinese Yuan, or Renminbi, however the accompanying unaudited consolidated financial statements have been translated and presented in United States Dollars ($). In the accompanying unaudited consolidated financial statements and notes, “$”, “US$” and “U.S. dollars” mean United States dollars, “NT$” and “NT dollars” mean New Taiwan dollars, and “RMB” means Chinese Yuan, or Renminbi. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Classification Certain classifications have been made to the prior year financial statements to conform to the current year presentation. The reclassification had no impact on previously reported net income nor retained earnings. Cash and Cash Equivalents Cash and cash equivalents include cash and all highly liquid instruments with original maturities of three months or less. Accounts Receivable Accounts receivable are stated at carrying value less estimates made for doubtful receivables. An allowance for impairment of trade receivables is established if the collection of a receivable becomes doubtful. Such receivable becomes doubtful when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter into bankruptcy or financial reorganization, and default or delinquency in payments are considered indicators that the receivable is impaired. The amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. An impairment loss is recognized in the statement of income, as are subsequent recoveries of previous impairments. Inventory Inventory is stated at the lower of cost and net realizable value. Net realizable value (NRV) is defined as estimated selling prices less costs of completion, disposal, and transportation. Inventory consists mainly of finished goods held for resale. Cost is determined on a weighted average cost method. The Company periodically reviews the age and turnover of its inventory to determine whether any inventory has become obsolete or has declined in value, and incurs a charge to operations for known and anticipated inventory obsolescence. Property and Equipment Property and equipment is carried at cost net of accumulated depreciation. Repairs and maintenance are expensed as incurred. Expenditures that improve the functionality of the related asset or extend the useful life are capitalized. When property and equipment is retired or otherwise disposed of, the related gain or loss is included in operating income. Leasehold improvements are depreciated on the straight-line method over the shorter of the remaining lease term or estimated useful life of the asset. Depreciation is calculated on the straight-line method, including property and equipment under capital leases, generally is five years. Depreciation expense is $902 and $1,383 for the six months ended June 30, 2019 and 2018, respectively. Impairment of Long-Lived Assets The Company has adopted Accounting Standards Codification subtopic 360-10, Property, Plant and Equipment (“ASC 360-10”). ASC 360-10 requires that long-lived assets and certain identifiable intangibles held and used by the Company be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company evaluates its long-lived assets for impairment annually or more often if events and circumstances warrant. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve breakeven operating results over an extended period. The Company evaluates the recoverability of long-lived assets based upon forecasted undiscounted cash flows. Should impairment in value be indicated, the carrying value of intangible assets will be adjusted, based on estimates of future discounted cash flows resulting from the use and ultimate disposition of the asset. ASC 360-10 also requires assets to be disposed of be reported at the lower of the carrying amount or the fair value less costs to sell. Management has determined that no impairments of long-lived assets currently exist as of June 30, 2019 and December 31, 2018. Long-term Equity Investment The Company acquires equity investment to promote business and strategic objectives. The Company accounts for non-marketable equity and other equity investments for which the Company does not have control over the investees as: · Equity method investments when the Company has the ability to exercise significant influence, but not control, over the investee. Its proportionate share of the income or loss is recognized monthly and is recorded in gain (loss) on equity investments. · Non-marketable cost method investments when the equity method does not apply. Significant judgment is required to identify whether an impairment exists in the valuation of the Company’s non-marketable equity investments, and therefore the Company considers this a critical accounting estimate. Its yearly analysis considers both qualitative and quantitative factors that may have a significant impact on the investee's fair value. Qualitative analysis of its investments involves understanding the financial performance and near-term prospects of the investee, changes in general market conditions in the investee’s industry or geographic area, and the management and governance structure of the investee. Quantitative assessments of the fair value of its investments are developed using the market and income approaches. The market approach includes the use of comparable financial metrics of private and public companies and recent financing rounds. The income approach includes the use of a discounted cash flow model, which requires significant estimates regarding the investees' revenue, costs, and discount rates. The Company’s assessment of these factors in determining whether an impairment exists could change in the future due to new developments or changes in applied assumptions. Other-Than-Temporary Impairment The Company’s long-term equity investments are subject to a periodic impairment review. Impairments affect earnings as follows: · Marketable equity securities include the consideration of general market conditions, the duration and extent to which the fair value is below cost, and our ability and intent to hold the investment for a sufficient period of time to allow for recovery of value in the foreseeable future. The Company also considers specific adverse conditions related to the financial health of, and the business outlook for, the investee, which may include industry and sector performance, changes in technology, operational and financing cash flow factors, and changes in the investee’s credit rating. The Company records other-than-temporary impairments on marketable equity securities and marketable equity method investments in gain (loss) on equity investments. · Non-marketable equity investments based on the Company’s assessment of the severity and duration of the impairment, and qualitative and quantitative analysis of the operating performance of the investee; adverse changes in market conditions and the regulatory or economic environment; changes in operating structure or management of the investee; additional funding requirements; and the investee’s ability to remain in business. A series of operating losses of an investee or other factors may indicate that a decrease in value of the investment has occurred that is other than temporary and that shall be recognized even though the decrease in value is in excess of what would otherwise be recognized by application of the equity method. A loss in value of an investment that is other than a temporary decline shall be recognized. Evidence of a loss in value might include, but would not necessarily be limited to, absence of an ability to recover the carrying amount of the investment or inability of the investee to sustain an earnings capacity that would justify the carrying amount of the investment. The Company records other-than-temporary impairments for non-marketable cost method investments and equity method investments in gain (loss) on equity investments. Revenue Recognition During the fiscal year 2018, the Company has adopted FASB Accounting Standards Codification (“ASC”), Topic 606 (“ASC 606”), Revenue from Contracts with Customers, using the modified retrospective method to all contracts that were not completed as of January 1, 2018. The Company recognized the cumulative effect of applying the new revenue standard as an adjustment to the opening balance of accumulated deficit at the beginning of 2018. The results for the Company’s reporting periods beginning on and after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period. Based on the Company’s review of existing sales contracts as of January 1, 2018, the Company concluded that the adoption of the new guidance did not have a significant change on the Company’s revenue during all periods presented. Pursuant to ASC 606, the Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines is within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration the Company is entitled to in exchange for the goods or services the Company transfers to the customers. At inception of the contract, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract, determines those that are performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Merchandise Sales: The Company recognizes sales revenues from merchandise sales when customers obtain control of the Company’s products, which typically occurs upon delivery to customer. Merchandise sales revenues are recorded at the sales price, or “transaction price”. Trade discount and allowances: The Company generally does not provide invoice discounts on product sales to its customers for prompt payment. Product returns : To date, product allowance and returns have been minimal and, based on its experience, the Company believes that returns of its products will continue to be minimal. The following tables provide details of revenue by major products and by geography. Revenue by Major Products For the six months ended June 30, 2019: Nutrition supplement $ 61,668 Skin care product 130,190 Water purifying machine 41,799 Software 4,515 Total $ 238,172 Revenue by Geography For the six months ended June 30, 2019: Asia Pacific $ 238,172 Total $ 238,172 Leases - The Company applied the following practical expedients in the transition to the new standard and allowed under ASC 842: Practical Expedient Description Reassessment of expired or existing contracts The Company elected not to reassess, at the application date, whether any expired or existing contracts contained leases, the lease classification for any expired or existing leases, and the accounting for initial direct costs for any existing leases. Use of hindsight The Company elected to use hindsight in determining the lease term (that is, when considering options to extend or terminate the lease and to purchase the underlying asset) and in assessing impairment of right-to-use assets. Reassessment of existing or expired land easements The Company elected not to evaluate existing or expired land easements that were not previously accounted for as leases under ASC 840, as allowed under the transition practical expedient. Going forward, new or modified land easements will be evaluated under ASU No. 2016-02. Separation of lease and non-lease components Lease agreements that contain both lease and non-lease components are generally accounted for separately. Short-term lease recognition exemption The Company also elected the short-term lease recognition exemption and will not recognize ROU assets or lease liabilities for leases with a term less than 12 months. The new leasing standard requires recognition of leases on the consolidated balance sheets as right-of-use (“ROU”) assets and lease liabilities. ROU assets represent the Company’s right to use underlying assets for the lease terms and lease liabilities represent the Company’s obligation to make lease payments arising from the leases. Operating lease ROU assets and operating lease liabilities are recognized based on the present value and future minimum lease payments over the lease term at commencement date. The Company’s future minimum based payments used to determine the Company’s lease liabilities mainly include minimum based rent payments. As most of Company’s leases do not provide an implicit rate, the Company uses its estimated incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The adoption of ASC 842 had no substantial impact on the Company’s consolidated balance sheets. The most significant impact was the recognition of the operating lease right-of-use assets and the liability for operating leases. Accordingly, adoption of this standard resulted in the recognition of operating lease right-of-use assets of $8,235 and operating lease liabilities of $8,235 on the condensed consolidated balance sheet as of January 1, 2019. The adoption of ASC 842 did not result in a cumulative-effect adjustment to the opening balance of accumulated deficit. In addition, the adoption of the standard did not have a material impact on the Company's results of operations or cash flows. Operating lease cost is recognized as a single lease cost on a straight-line basis over the lease term and is recorded in Selling, general and administrative expenses. Variable lease payments for common area maintenance, property taxes and other operating expenses are recognized as expense in the period when the changes in facts and circumstances on which the variable lease payments are based occur. Advertising Costs Advertising costs are expensed at the time such advertising commences. Advertising expenses were $22,321 and $1,958 for the six months ended June 30, 2019 and 2018, respectively. Post-retirement and Post-employment Benefits The Company’s subsidiaries in Taiwan adopted the government mandated defined contribution plan pursuant to the Taiwan Labor Pension Act (the “Act”). Such labor regulations require that the rate of contribution made by an employer to the Labor Pension Fund per month shall not be less than 6% of the worker's monthly salaries. Pursuant to the Act, the Company makes monthly contribution equal to 6% of employees’ salaries to the employees’ pension fund. The Company has no legal obligation for the benefits beyond the contributions made. The total amounts for such employee benefits, which were expensed as incurred, were $4,000 and $3,965 for the six months ended June 30, 2019 and 2018, respectively. Other than the above, the Company does not provide any other post-retirement or post-employment benefits. Fair Value Measurements FASB ASC 820, “Fair Value Measurements” defines fair value for certain financial and nonfinancial assets and liabilities that are recorded at fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. It requires that an entity measure its financial instruments to base fair value on exit price, maximize the use of observable units and minimize the use of unobservable inputs to determine the exit price. It establishes a hierarchy which prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy increases the consistency and comparability of fair value measurements and related disclosures by maximizing the use of observable inputs and minimizing the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the assets or liabilities based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy prioritizes the inputs into three broad levels based on the reliability of the inputs as follows: · Level 1 – Inputs are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Valuation of these instruments does not require a high degree of judgment as the valuations are based on quoted prices in active markets that are readily and regularly available. · Level 2 – Inputs other than quoted prices in active markets that are either directly or indirectly observable as of the measurement date, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. · Level 3 – Valuations based on inputs that are unobservable and not corroborated by market data. The fair value for such assets and liabilities is generally determined using pricing models, discounted cash flow methodologies, or similar techniques that incorporate the assumptions a market participant would use in pricing the asset or liability. The carrying values of certain assets and liabilities of the Company, such as cash and cash equivalents, accounts receivable, inventory, advance to suppliers, prepaid expenses, accounts payable, accrued expenses, and due to shareholders, approximate fair value because of to their relatively short maturities. Net Income (Loss) Per Share Basic income (loss) per share is computed by dividing net income by weighted average number of shares of common stock outstanding during each period. Diluted income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock, common stock equivalents, and potentially dilutive securities outstanding during each period. For the six months ended June 30, 2019 and 2018, the Company does not have any outstanding common stock equivalents; therefore, a separate computation of diluted loss per share is not presented. Income Taxes The Company accounts for income taxes in accordance with ASC 740, Income Taxes, which requires that the Company recognize deferred tax liabilities and assets based on the differences between the financial statement carrying amounts and the tax basis of assets and liabilities, using enacted tax rates in effect in the years the differences are expected to reverse. Deferred income tax benefit (expense) results from the change in net deferred tax assets or deferred tax liabilities. A valuation allowance is recorded when, in the opinion of management, it is more likely than not that some or all of any deferred tax assets will not be realized. Concentration of Credit Risk Cash and cash equivalents Customers For the six months ended June 30, 2019, one customer, a related party, accounted for more than 10% of the Company’s total revenues, representing approximately 76% of its total revenues, and 76% of accounts receivable in aggregate at June 30, 2019. Customer Net sales for the six months ended June 30, 2019 Accounts receivable balance as of June 30, 2019 A $ 180,367 * $ 1,143,557 For the six months ended June 30, 2018, one customer, a related party, accounted for more than 10% of the Company’s total revenues, represented approximately 93% of its total revenues and 83% of accounts receivable in aggregate at June 30, 2018, respectively. Customer Net sales for the six months ended June 30, 2018 Accounts receivable balance as of June 30, 2018 A $ 394,016 * $ 831,810 *Related party transactions (See Note 4). Suppliers For the six months ended June 30, 2019, two suppliers accounted for more than 10% of the Company’s total net purchase, representing approximately 87% and 10% of total net purchase, and 0% and 100% of accounts payable in aggregate at June 30, 2019, respectively: Supplier Net purchase for the six months ended June 30, 2019 Accounts payable balance as of June 30, 2019 A $ 34,561 $ - B $ 3,821 $ 715 For the six months ended June 30, 2018, three suppliers accounted for more than 10% of the Company’s total net purchase, representing approximately 46%, 20% and 19% of total net purchase, and 57%, 0% and 0% of accounts payable in aggregate at June 30, 2018, respectively: Supplier Net purchase for the six months ended June 30, 2018 Accounts payable balance as of June 30, 2018 A $ 23,799 $ 7,821 C $ 10,158 $ - D $ 9,548 $ - Foreign-currency Transactions Foreign-currency transactions are recorded in New Taiwan dollars (“NTD”) and Renminbi (“RMB”) at the rates of exchange in effect when the transactions occur. Gains or losses resulting from the application of different foreign exchange rates when cash in foreign currency is converted into New Taiwan dollars and Renminbi, or when foreign-currency receivables or payables are settled, are credited or charged to income in the year of conversion or settlement. On the balance sheet dates, the balances of foreign-currency assets and liabilities are restated at the prevailing exchange rates and the resulting differences are charged to current income except for those foreign currencies denominated investments in shares of stock where such differences are accounted for as translation adjustments under stockholders’ equity. Translation Adjustment The accounts of the Company’s subsidiaries were maintained, and their financial statements were expressed in New Taiwan Dollar (“NTD”) and Renminbi (“RMB”). Such financial statements were translated into U.S. Dollars (“$” or “USD”) in accordance ASC 830, "Foreign Currency Matters", with the NTD and RMB as the functional currency. According to the Statement, all assets and liabilities are translated at the current exchange rate, common stock and additional paid-in capital are translated at the historical rates, and income statement items are translated at an average exchange rate for the period. The resulting translation adjustments are reported under accumulated other comprehensive income (loss) as a component of stockholders’ equity. Comprehensive Income (loss) Comprehensive income (loss) includes accumulated foreign currency translation gains and losses. The Company has reported the components of comprehensive income (loss) on its consolidated statements of operations and other comprehensive income (loss). Recent Accounting Pronouncements The Company has implemented all new pronouncements that are in effect and that may impact its consolidated financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its consolidated financial statements or results of operations. | Note 1. NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES Organization EOS Inc. was incorporated on April 3, 2015 in the State of Nevada. The Company’s business plan is to market and distribute skin care products, including masks and serums. On November 18, 2016, the Company has set up a wholly-owned subsidiary in Taiwan to assist the Company to promote the business in Taiwan. Emperor Star International Trade Co., Ltd., (“Emperor Star”), was incorporated on November 16, 2015 under the laws of Taiwan. Emperor Star is in the business of marketing and distribution of various products, including nutrition supplements, skin care products, and water purifiers. On May 3, 2017, the Company entered into and closed a Share Purchase and Sale Agreement (the “Purchase Agreement”) with Emperor Star and the shareholder of Emperor Star to acquire all issued and outstanding shares of Emperor Star in consideration of $30,562 in cash. As a result of the Purchase, Emperor Star becomes the Company’s wholly owned subsidiary. Upon consummation of the Purchase, the Company has assumed the business of Emperor Star and ceased to be a shell company. On September 20, 2018, the Company set up another wholly-owned subsidiary, EOS International Inc. (“EOS(BVI)”), under the laws of British Virgin Islands. EOS(BVI) is in the business of marketing and distribution of various products, including nutrition supplements, skin care products, and water purifiers. Principles of Consolidation The accompanying unaudited consolidated financial statements, including the accounts of EOS Inc. and its wholly owned subsidiaries in Taiwan and British Virgin Islands, have been prepared in conformity with accounting principles generally accepted in the United States of America. Since the Company and Emperor Star are entities under common control prior to the acquisition of Emperor Star, the transaction is accounted for as a restructuring transaction. All the assets and liabilities of Emperor Star were transferred to the Company at their respective carrying amounts on the date of transaction. The Company has recast prior period financial statements to reflect the conveyance of Emperor Star’s common shares as if the restructuring transaction had occurred as of the earliest date of the financial statements. All material intercompany accounts, transactions, and profits have been eliminated in consolidation. The nature of and effects on earnings per share (EPS) of nonrecurring intra-entity transactions involving long-term assets and liabilities is not required to be eliminated and EPS amounts have been recast to include the earnings (or losses) of the transferred net assets. The functional currency of the subsidiaries in Taiwan is the New Taiwan dollars, however the accompanying unaudited consolidated financial statements have been translated and presented in United States Dollars ($). In the accompanying unaudited consolidated financial statements and notes, “$”, “US$” and “U.S. dollars” mean United States dollars, and “NT$” and “NT dollars” mean New Taiwan dollars. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Classification Certain classifications have been made to the prior year financial statements to conform to the current year presentation. The reclassification had no impact on previously reported net income nor retained earnings. Cash and Cash Equivalents Cash and cash equivalents include cash and all highly liquid instruments with original maturities of three months or less. Accounts Receivable Accounts receivable are stated at carrying value less estimates made for doubtful receivables. An allowance for impairment of trade receivables is established if the collection of a receivable becomes doubtful. Such receivable becomes doubtful when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter into bankruptcy or financial reorganization, and default or delinquency in payments are considered indicators that the receivable is impaired. The amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. An impairment loss is recognized in the statement of income, as are subsequent recoveries of previous impairments. Inventory Inventory is stated at the lower of cost and net realizable value. Net realizable value (NRV) is defined as estimated selling prices less costs of completion, disposal, and transportation. Inventory consists mainly of finished goods held for resale. Cost is determined on a weighted average cost method. The Company periodically reviews the age and turnover of its inventory to determine whether any inventory has become obsolete or has declined in value, and incurs a charge to operations for known and anticipated inventory obsolescence. Property and Equipment Property and equipment is carried at cost net of accumulated depreciation. Repairs and maintenance are expensed as incurred. Expenditures that improve the functionality of the related asset or extend the useful life are capitalized. When property and equipment is retired or otherwise disposed of, the related gain or loss is included in operating income. Leasehold improvements are depreciated on the straight-line method over the shorter of the remaining lease term or estimated useful life of the asset. Depreciation is calculated on the straight-line method, including property and equipment under capital leases, generally is five years. Depreciation expense is $2,510 and $1,143 for the years ended December 31, 2018 and 2017, respectively. Impairment of Long-Lived Assets The Company has adopted Accounting Standards Codification subtopic 360-10, Property, Plant and Equipment (“ASC 360-10”). ASC 360-10 requires that long-lived assets and certain identifiable intangibles held and used by the Company be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company evaluates its long lived assets for impairment annually or more often if events and circumstances warrant. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve breakeven operating results over an extended period. The Company evaluates the recoverability of long-lived assets based upon forecasted undiscounted cash flows. Should impairment in value be indicated, the carrying value of intangible assets will be adjusted, based on estimates of future discounted cash flows resulting from the use and ultimate disposition of the asset. ASC 360-10 also requires assets to be disposed of be reported at the lower of the carrying amount or the fair value less costs to sell. Management has determined that no impairments of long lived assets currently exist. Revenue Recognition During the fiscal year 2018, the Company has adopted Accounting Standards Codification (“ASC”), Topic 606 (ASC 606), Revenue from Contracts with Customers, using the modified retrospective method to all contracts that were not completed as of January 1, 2018. The Company recognized the cumulative effect of applying the new revenue standard as an adjustment to the opening balance of accumulated deficit at the beginning of 2018. The results for the Company’s reporting periods beginning on and after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period. Based on the Company’s review of existing sales contracts as of January 1, 2018, the Company concluded that the adoption of the new guidance did not have a significant change on the Company’s revenue during all periods presented. Pursuant to ASC 606, the Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines is within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration the Company is entitled to in exchange for the goods or services the Company transfers to the customers. At inception of the contract, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract, determines those that are performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Merchandise Sales: The Company recognizes sales revenues from merchandise sales when customers obtain control of the Company’s products, which typically occurs upon delivery to customer. Merchandise sales revenues are recorded at the sales price, or “transaction price”. Trade discount and allowances: The Company generally does not provide invoice discounts on product sales to its customers for prompt payment. Product returns : To date, product allowance and returns have been minimal and, based on its experience, the Company believes that returns of its products will continue to be minimal. The following tables provide details of revenue by major products and by geography. Revenue by Major Products For the year ended December 31, 2018: Nutrition supplement $ 503,049 Skin care product 630,796 Water purifier 556,600 Software 86,320 Other s 1,180 Total $ 1,777,945 Revenue by Geography For the year ended December 31, 2018: Asia Pacific $ 1,777,945 Total $ 1,777,945 Advertising Costs Advertising costs are expensed at the time such advertising commences. Advertising expenses were $13,299 and $50 for the years ended December 31, 2018 and 2017, respectively. Post-retirement and Post-employment Benefits The Company’s subsidiaries in Taiwan adopted the government mandated defined contribution plan pursuant to the Taiwan Labor Pension Act (the “Act”). Such labor regulations require that the rate of contribution made by an employer to the Labor Pension Fund per month shall not be less than 6% of the worker’s monthly salaries. Pursuant to the Act, the Company makes monthly contribution equal to 6% of employees’ salaries to the employees’ pension fund. The Company has no legal obligation for the benefits beyond the contributions made. The total amounts for such employee benefits, which were expensed as incurred, were $7,958 and $1,629 for the years ended December 31, 2018 and 2017, respectively. Other than the above, the Company does not provide any other post-retirement or post-employment benefits. Fair Value Measurements FASB ASC 820, “Fair Value Measurements” defines fair value for certain financial and nonfinancial assets and liabilities that are recorded at fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. It requires that an entity measure its financial instruments to base fair value on exit price, maximize the use of observable units and minimize the use of unobservable inputs to determine the exit price. It establishes a hierarchy which prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy increases the consistency and comparability of fair value measurements and related disclosures by maximizing the use of observable inputs and minimizing the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the assets or liabilities based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy prioritizes the inputs into three broad levels based on the reliability of the inputs as follows: · Level 1 – Inputs are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Valuation of these instruments does not require a high degree of judgment as the valuations are based on quoted prices in active markets that are readily and regularly available. · Level 2 – Inputs other than quoted prices in active markets that are either directly or indirectly observable as of the measurement date, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. · Level 3 – Valuations based on inputs that are unobservable and not corroborated by market data. The fair value for such assets and liabilities is generally determined using pricing models, discounted cash flow methodologies, or similar techniques that incorporate the assumptions a market participant would use in pricing the asset or liability. The carrying values of certain assets and liabilities of the Company, such as cash and cash equivalents, accounts receivable, advance to suppliers, prepaid expenses, accounts payable, accrued expenses, and due to shareholders, approximate fair value because of to their relatively short maturities. Net Income Per Share Basic income per share is computed by dividing net income by weighted average number of shares of common stock outstanding during each period. Diluted income per share is computed by dividing net income by the weighted average number of shares of common stock, common stock equivalents, and potentially dilutive securities outstanding during each period. For the years ended December 31, 2018 and 2017, the Company does not have any outstanding common stock equivalents; therefore, a separate computation of diluted loss per share is not presented. Income Taxes The Company accounts for income taxes in accordance with ASC 740, Income Taxes, which requires that the Company recognize deferred tax liabilities and assets based on the differences between the financial statement carrying amounts and the tax basis of assets and liabilities, using enacted tax rates in effect in the years the differences are expected to reverse. Deferred income tax benefit (expense) results from the change in net deferred tax assets or deferred tax liabilities. A valuation allowance is recorded when, in the opinion of management, it is more likely than not that some or all of any deferred tax assets will not be realized. Concentration of Credit Risk Cash and cash equivalents Customers For the year ended December 31, 2018, two customers accounted for more than 10% of the Company’s total revenues, representing approximately 69% and 16% of its total revenues, and 69% and 13% of accounts receivable in aggregate at December 31, 2018 Customer Net sales for the year ended December 31, 2018 Accounts receivable balance as of December 31, 2018 A $ 1,235,203 * $ 1,263,833 B 279,405 237,980 For the year ended December 31, 2017, four customers accounted for more than 10% of the Company’s total revenues, represented approximately 39%, 25%, 24% and 12% of its total revenues, and 71%, 0%, 27% and 0% of accounts receivable in aggregate at December 31, 2017, respectively. Customer Net sales for the year ended December 31, 2017 Accounts receivable balance as of December 31, 2017 A $ 582,973 * $ 561,978 C $ 371,043 * $ - D $ 365,815 * $ 224,203 E $ 186,266 * $ - *Related party transactions (See Note 2). Suppliers Supplier Net purchase for the year ended December 31, 2018 Accounts payable balance as of December 31, 2018 A $ 50,529 $ - B $ 28,371 $ - C $ 19,620 $ - For the year ended December, 2017, three suppliers accounted for more than 10% of the Company’s total net purchase, representing approximately 45%, 33% and 17% of total net purchase, and 0%, 92% and 0% of accounts payable in aggregate at December 31, 2017, respectively: Supplier Net purchase for the year ended December 31, 2017 Accounts payable balance as of December 31, 2017 B $ 123,878 $ - D $ 92,046 $ 34,221 E $ 45,941 $ - Foreign-currency Transactions Foreign-currency transactions are recorded in New Taiwan dollars (“NTD”) at the rates of exchange in effect when the transactions occur. Gains or losses resulting from the application of different foreign exchange rates when cash in foreign currency is converted into New Taiwan dollars, or when foreign-currency receivables or payables are settled, are credited or charged to income in the year of conversion or settlement. On the balance sheet dates, the balances of foreign-currency assets and liabilities are restated at the prevailing exchange rates and the resulting differences are charged to current income except for those foreign currencies denominated investments in shares of stock where such differences are accounted for as translation adjustments under Equity. Translation Adjustment The accounts of the Company’s subsidiaries were maintained, and their financial statements were expressed, in New Taiwan Dollar (“NTD”). Such financial statements were translated into U.S. Dollars (“$” or “USD”) in accordance ASC 830, “Foreign Currency Matters”, with the NTD as the functional currency. According to the Statement, all assets and liabilities are translated at the current exchange rate, Equity’s deficit are translated at the historical rates and income statement items are translated at an average exchange rate for the period. The resulting translation adjustments are reported under accumulated other comprehensive income (loss) as a component of stockholders’ equity (deficit). Comprehensive Income (loss) Comprehensive income (loss) includes accumulated foreign currency translation gains and losses. The Company has reported the components of comprehensive income (loss) on its consolidated statements of operations and other comprehensive income (loss). Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-02, Leases (ASC 842), which was amended by ASU 2018-11, Leases (ASC 842): Targeted Improvements. The new guidance requires lessee recognition on the balance sheet of a right-of-use (ROU) asset and a lease liability, initially measured at the present value of the lease payments. It further requires recognition in the income statement of a single lease cost, calculated so that the cost of the lease is allocated over the lease term generally on a straight-line basis. Finally, it requires classification of all cash payments within operating activities in the statement of cash flows. The standard is effective for public companies for fiscal years beginning after December 15, 2018 and early adoption is permitted. The standard requires a transition adoption election using either 1) a modified retrospective approach with periods prior to the adoption date being recast or 2) a prospective adoption approach with a cumulative-effect adjustment recognized to the opening balance of retained earnings on the adoption date with prior periods not recast. The Company anticipates adopting this standard with an effective date of January 1, 2019 using the prospective adoption approach. The Company has evaluated the changes from this standard to its future financial reporting and disclosures, and has designed and implemented related processes and controls to address these changes. The Company believes the most significant effects relate to (1) the recognition of new ROU assets and lease liabilities on its balance sheet for its office operating lease; and (2) providing significant new disclosures about its leasing activities related to the amount, timing and uncertainty of cash flows arising from leases. The Company is continuing its assessment, which may identify additional impacts this guidance will have on its financial statements and disclosures. In December 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin (“SAB”) No. 118 (as further clarified by FASB ASU 2018-05, Income Taxes (Topic 740): “Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118”) to provide guidance for companies that may not have completed their accounting for the income tax effects of the Tax Cut and Jobs Act (“Tax Act”) in the period of enactment, which is the period that includes December 22, 2017. SAB No. 118 provides for a provisional one year measurement period for entities to finalize their accounting for certain income tax effects related to the Tax Act. SAB No. 118 provides guidance where: (i) the accounting for the income tax effect of the Tax Act is complete and reported in the Tax Act’s enactment period, (ii) the accounting for the income tax effect of the Tax Act is incomplete and reported as provisional amounts based on reasonable estimates (to the extent determinable) subject to adjustments during a limited measurement period until complete, and (iii) accounting for the income tax effect of the Tax Act is not reasonably estimable (no related provisional amounts are reported in the enactment period) and entities would continue to apply accounting based on tax law provisions in effect prior to the Tax Act enactment until provisional amounts are reasonably estimable. SAB No. 118 requires disclosure of the reasons for incomplete accounting additional information or analysis needed, among other relevant information. The Company is continuing to gather additional information to determine the final impact. In February 2018, the FASB issued ASU No, 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”. The amendments in this Update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users. However, because the amendments only relate to the reclassification of the income tax effects of the Tax Cuts and Jobs Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. The amendments in this Update also require certain disclosures about stranded tax effects. The amendments in this Update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company is currently evaluating the impact of adopting this new guidance on its financial position, results of operations, statement of comprehensive income, and cash flows. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (“Topic 820”): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The ASU modifies the disclosure requirements in Topic 820, Fair Value Measurement, by removing certain disclosure requirements related to the fair value hierarchy, modifying existing disclosure requirements related to measurement uncertainty and adding new disclosure requirements, such as disclosing the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and disclosing the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. This ASU is effective for public companies for annual reporting periods and interim periods within those annual periods beginning after December 15, 2019. The Company is currently evaluating the effect, if any, that the ASU will have on its financial statements. |
LEASE
LEASE | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
LEASE | Note 2. LEASE The Company has no finance leases. The Company’s leases primarily include office facility and copy machine under the operating lease arrangements. The Company’s operating leases have remaining lease terms for two years as of June 30, 2019. Balance sheet information related to the Company’s leases is presented below: June 30, 2019 Operating Leases: Operating lease – right of use (“ROU”) assets $ 41,778 Operating lease liability, current portion 21,398 Operating lease liability, noncurrent portion 20,380 Total operating lease liabilities $ 41,778 The following provides details of the Company's lease expenses: Six Months Ended June 30, 2019 Operating lease expenses, net $ 8,704 $ 8,704 Other information related to leases is presented below: Six Months Ended June 30, 2019 Cash Paid For Amounts Included In Measurement of Liabilities: Operating cash flows from operating leases 8,704 Weighted Average Remaining Lease Term: Operating leases 2 years Weighted Average Discount Rate: Operating leases 4 % The minimum future annual payments under non-cancellable leases during the remainder of 2019, at rates now in force, are as follows: Operating leases 2019 (excluding the six months ended June 30, 2019) $ 11,302 2020 22,605 2021 9,418 Total future minimum lease payments, undiscounted 43,325 Less: Imputed interest (1,547 ) Present value of future minimum lease payments $ 41,778 |
LONG-TERM INVESTMENT
LONG-TERM INVESTMENT | 6 Months Ended |
Jun. 30, 2019 | |
Long-term Investments [Abstract] | |
LONG-TERM INVESTMENT | Note 3. LONG-TERM INVESTMENT On January 15, 2019, the Company, A-Best Wire Harness & Components Co., Ltd. (“A-Best” or the “Investee”), a company formed under the laws of Taiwan, and Mr. Ing-Ming Lai, a Taiwanese individual and the majority shareholder of A-Best, entered into an investment cooperation agreement (the “A-Best Investment Agreement”), pursuant to which the Company issued 10 million shares of its common stock to Mr. Ing-Ming Lai to purchase twenty percent (20%) of the issued and outstanding equity in A-Best. On May 24, 2019, the Company consummated the shareholder registration of A-Best with the Investment Commission of Ministry of Economic Affairs of Taiwan and issued 10 million shares of its common stock to Mr. Ing-Ming Lai to acquire 20% of the issued and outstanding equity in A-Best. As of June 30, 2019, the Company owns 20% equity of A-Best. The Company holds an equity interest in A-Best accounting for its equity interest using the equity method to accounts for its equity investment as prescribed in ASC 323, Investments—Equity Method and Joint Ventures (“ASC 323”). Equity method adjustments include the Company’s proportionate share of investee’s income or loss and other adjustments required by the equity method. Summarized financial information for the Company's equity method investee, A-Best, is as follows: Balance Sheets (Unaudited) June 30, December 31, 2019 2018 Current Assets $ 33,254 $ 20,997 Noncurrent Assets 1,004 - Current Liabilities 1,269,350 1,238,711 Shareholders’ Equity (Deficit) (1,235,092 ) (1,217,714 ) Statement of Operation (Unaudited) From the period from May 24, 2019 to June 30, 2019 Net Sales $ 524 Gross profit 64 Net loss (12,128 ) Share of profit (losses) from investment accounted for using the equity method (2,426 ) |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Related Party Transactions [Abstract] | ||
RELATED PARTY TRANSACTIONS | Note 4. RELATED PARTY TRANSACTIONS Related party – Sales (1) The Company had sales to EOS Venture International Pte Ltd., (the “EOS Venture”), a Singapore company. The EOS Trading provides financial aids to EOS Venture. In addition, Mr. He-Siang Yang, the officer, director, and shareholder of the Company, is the key person who can significantly affect the economic performance of EOS Venture. The sales amounted to $0 and $3,049 for six months ended June 30, 2019 and 2018, respectively. As of June 30, 2019 and December 31, 2018, accounts receivable balance was $2,488 and $101,488, respectively. (2) The Company had sales to Fortune King (HK) Trading Limited, (the “Fortune King”), a Hong Kong company. The founder and officer of Fortune King is also one of the shareholders of EOS, Inc. The sales amounted to $180,367 and $394,016 for the six months ended June 30, 2019 and 2018, respectively. As of June 30, 2019 and December 31, 2018, accounts receivable balance was $1,143,557 and $1,263,833, respectively. Due to shareholders The Company has advanced funds from one of its directors and shareholder for working capital purposes. As of June 30, 2019 and December 31, 2018, there were $76,435 and $147,281 advances outstanding, respectively. The Company has agreed that the outstanding balances bear 0% interest rate and are due upon demand after 30 days written notice by the director and shareholder. | Note 2. RELATED PARTY TRANSACTIONS Related party - Sales (1) The Company had sales to EOS Trading Co., Ltd., (the “EOS Trading”), a Hong Kong company owned by the officer, director, and shareholder of the Company, in an aggregate amount of $0 and $371,043 for the years ended December 31, 2018 and 2017, respectively. As of December 31, 2018 and 2017, accounts receivable balance was $0. (2) The Company had sales to EOS Venture International Pte Ltd., (the “EOS Venture”), a Singapore company. The EOS Trading provides financial aids to EOS Venture. In addition, Mr. He-Siang Yang, the officer, director, and shareholder of the Company, is the key person who can significantly affect the economic performance of EOS Venture. The sales amounted to $4,010 and $365,815 for years ended December 31, 2018 and 2017, respectively. As of December 31, 2018 and 2017, accounts receivable balance was $101,488 and $224,203, respectively. (3) The Company had sales to Fortune King (HK) Trading Limited, (the “Fortune King”), a Hong Kong company. The founder and officer of Fortune King is also one of the shareholders of EOS Inc. The sales amounted to $1,235,203 and $582,973 for the years ended December 31, 2018 and 2017, respectively. As of December 31, 2018 and 2017, accounts receivable balance was $1,263,833 and $561,978, respectively. (4) The Company had sales to Able Vision Ltd., (“ABLE Vision”), a Seychelles corporation owned by one of shareholders of the Company, in an aggregate amount of $0 and $186,266 for the years ended December 31, 2018 and 2017, respectively. As of December 31, 2018 and 2017, accounts receivable balance was $0. Due to shareholders The Company has advanced funds from one of its directors and shareholder for working capital purposes. As of December 31, 2018 and 2017, there were $147,281 and $97,573 advances outstanding, respectively. The Company has agreed that the outstanding balances bear 0% interest rate and are due upon demand after 30 days written notice by the officer and shareholder. |
INCOME TAXES
INCOME TAXES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
INCOME TAXES | Note 5. INCOME TAXES United States EOS, Inc. is incorporated in the United States of America and is subject to United States federal taxation. No provisions for income taxes have been made as the Company has no taxable income for the period. As of June 30, 2019, the Company had net operating loss carry forwards of $545,566 that may be available to reduce future years’ taxable income. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements as their realization is determined not likely to occur and, accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards. No tax benefit has been realized since a 100 % valuation allowance has offset deferred tax asset resulting from the net operating losses. British Virgin Islands EOS International Inc. is incorporated in British Virgin Islands and are not required to pay income tax. Taiwan The subsidiary of EOS Inc. and Emperor Star are incorporated in Taiwan. According to the amendments to the “Taiwan Income Tax Act” enacted by the office of the President of Taiwan on February 7, 2018, an increase in the statutory income tax rate from 17% to 20% and decrease in the undistributed earning tax from 10% to 5% are effective from January 1, 2018. People’s Republic of China (“PRC”) Under the Enterprise Income Tax (“EIT”) Law of the PRC, the standard EIT rate is 25%. The PRC subsidiary of the Company is subject to PRC income taxes on an entity basis on income arising in or derived from the tax jurisdiction in which they operate. No provision for income taxes have been made as Maosong had no taxable income as of and for the six months ended June 30, 2019. Provision for income tax consists of the following: For the Six Months Ended June 30, 2019 2018 Current income tax U.S. $ - $ - Taiwan - 25,295 PRC - - Sub total - 25,295 Deferred income tax U.S. Deferred tax assets for NOL carryforwards (3,523 ) (25,320 ) Valuation allowance 3,523 25,320 Net changes in deferred income tax (benefit) - - Total income tax provision $ - $ 25,295 The following is a reconciliation of the statutory tax rate to the effective tax rate: For the Six Months Ended June 30, 2019 2018 U.S. statutory income tax rate 21 % 21 % Taiwan unified income tax rate 20 % 20 % PRC standard EIT rate 25 % N/A Changes in valuation allowance (66 )% (41 )% Other - % - % Effective combined income tax rate - % - % Significant components of the Company’s deferred taxes as of June 30, 2019 and December 31, 2018 were as follows: June 30, December 31, 2019 2018 Deferred tax assets: (Unaudited) Net operating loss carryforwards $ 114,569 $ 111,556 Less: Valuation allowance (114,569 ) (111,556 ) Deferred tax assets, net $ - $ - | Note 3. INCOME TAXES United States EOS, Inc. is incorporated in the United States of America and is subject to United States federal taxation. No provisions for income taxes have been made as the Company has no taxable income for the period. As of December 31, 2018, the Company had net operating loss carry forwards of $531,218 that may be available to reduce future years’ taxable income through 2038. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements as their realization is determined not likely to occur and, accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards. No tax benefit has been realized since a 100 % valuation allowance has offset deferred tax asset resulting from the net operating losses. On December 22, 2017 H.R. 1 , . British Virgin Islands EOS International Inc. is incorporated in British Virgin Islands and are not required to pay income tax. Taiwan The subsidiary of EOS Inc. and Emperor Star are incorporated in Taiwan. According to the amendments to the “Taiwan Income Tax Act” enacted by the office of the President of Taiwan on February 7, 2018, an increase in the statutory income tax rate from 17% to 20% and decrease in the undistributed earning tax from 10% to 5% are effective from January 1, 2018. This increase in the statutory income tax rate will affect the amounts of the current and deferred taxes recognized as of December 31, 2018. The Company is continuing to gather additional information to determine the final impact. Provision for income tax consists of the following: For the Years Ended December 31, 2018 2017 Current income tax U.S. $ - $ - Taiwan 17,795 39,708 Sub total 17,795 39,708 Deferred income tax U.S. Deferred tax assets for NOL carryforwards (30,245 ) (17,096 ) Valuation allowance 30,245 17,096 Net changes in deferred income tax (benefit) - - Total provision income tax $ 17,795 $ 39,708 The following is a reconciliation of the statutory tax rate to the effective tax rate: For the Years Ended December31, 2018 2017 U.S. statutory income tax rate 21 % 34 % Taiwan unified income tax rate 20 % 17 % Provisional remeasurement of deferred taxes (U.S.) - (13 )% Changes in valuation allowance (21 )% (21 )% Other (18 )% (13 )% Effective combined income tax rate 2 % 4 % Significant components of the Company’s deferred taxes as of December 31, 2018 and 2017 were as follows: December 31, December 31, 2018 2017 Deferred tax assets: Net operating loss carryforwards $ 111,556 $ 81,311 Less: Valuation allowance (111,556 ) (81,311 ) Deferred tax assets, net $ - $ - |
COMMITMENT
COMMITMENT | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENT | Note 4. COMMITMENT Operating lease commitments consist of leases for office space and copy machines under various operating lease agreements which expire in December 2019. Operating lease agreements generally contain renewal options that may be exercised at the Company’s discretion after the completion of the terms. Future minimum lease payments under the operating leases are summarized as follows: As of December 31, Amount 2019 $ 8,515 Total $ 8,515 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Subsequent Events [Abstract] | ||
SUBSEQUENT EVENTS | Note 6. SUBSEQUENT EVENTS Management has evaluated subsequent events through the date which the financial statements are available to be issued. All subsequent events requiring recognition as of June 30, 2019 have been incorporated into these consolidated financial statements and there are no subsequent events that require disclosure in accordance with FASB ASC Topic 855, “Subsequent Events.” | Note 5. SUBSEQUENT EVENTS Management has evaluated subsequent events through the date which the financial statements are available to be issued. All subsequent events requiring recognition as of December 31, 2018 have been incorporated into these consolidated financial statements and there are no subsequent events that require disclosure in accordance with FASB ASC Topic 855, “Subsequent Events.” |
NATURE OF OPERATIONS AND SUMM_2
NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Nature Of Operations And Summary Of Accounting Policies [Abstract] | ||
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial reporting and in accordance with instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, the unaudited consolidated financial statements contained in this report reflect all adjustments that are normal and recurring in nature and considered necessary for a fair presentation of the financial position and the results of operations for the interim periods presented. The year-end balance sheet data were derived from audited consolidated financial statements, but does not include all disclosures required by GAAP. The results of operations for the interim period are not necessarily indicative of the results expected for the full year. These unaudited consolidated financial statements, footnote disclosures, and other information should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. | |
Principles of Consolidation | Principles of Consolidation The accompanying unaudited consolidated financial statements, including the accounts of EOS Inc. and its wholly owned subsidiaries in Taiwan, British Virgin Islands, and People’s Republic of China, have been prepared in conformity with accounting principles generally accepted in the United States of America. Since the Company and Emperor Star are entities under common control prior to the acquisition of Emperor Star, the transaction is accounted for as a restructuring transaction. All the assets and liabilities of Emperor Star were transferred to the Company at their respective carrying amounts on the date of transaction. The Company has recast prior period financial statements to reflect the conveyance of Emperor Star’s common shares as if the restructuring transaction had occurred as of the earliest date of the financial statements. All material intercompany accounts, transactions, and profits have been eliminated in consolidation. The nature of and effects on earnings per share (EPS) of nonrecurring intra-entity transactions involving long-term assets and liabilities is not required to be eliminated and EPS amounts have been recast to include the earnings (or losses) of the transferred net assets. The functional currency of the subsidiaries in Taiwan is the New Taiwan dollars and the subsidiary in People’s Republic of China is the Chinese Yuan, or Renminbi, however the accompanying unaudited consolidated financial statements have been translated and presented in United States Dollars ($). In the accompanying unaudited consolidated financial statements and notes, “$”, “US$” and “U.S. dollars” mean United States dollars, “NT$” and “NT dollars” mean New Taiwan dollars, and “RMB” means Chinese Yuan, or Renminbi. | Principles of Consolidation The accompanying unaudited consolidated financial statements, including the accounts of EOS Inc. and its wholly owned subsidiaries in Taiwan and British Virgin Islands, have been prepared in conformity with accounting principles generally accepted in the United States of America. Since the Company and Emperor Star are entities under common control prior to the acquisition of Emperor Star, the transaction is accounted for as a restructuring transaction. All the assets and liabilities of Emperor Star were transferred to the Company at their respective carrying amounts on the date of transaction. The Company has recast prior period financial statements to reflect the conveyance of Emperor Star’s common shares as if the restructuring transaction had occurred as of the earliest date of the financial statements. All material intercompany accounts, transactions, and profits have been eliminated in consolidation. The nature of and effects on earnings per share (EPS) of nonrecurring intra-entity transactions involving long-term assets and liabilities is not required to be eliminated and EPS amounts have been recast to include the earnings (or losses) of the transferred net assets. The functional currency of the subsidiaries in Taiwan is the New Taiwan dollars, however the accompanying unaudited consolidated financial statements have been translated and presented in United States Dollars ($). In the accompanying unaudited consolidated financial statements and notes, “$”, “US$” and “U.S. dollars” mean United States dollars, and “NT$” and “NT dollars” mean New Taiwan dollars. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Classification | Classification Certain classifications have been made to the prior year financial statements to conform to the current year presentation. The reclassification had no impact on previously reported net income nor retained earnings. | Classification Certain classifications have been made to the prior year financial statements to conform to the current year presentation. The reclassification had no impact on previously reported net income nor retained earnings. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash and all highly liquid instruments with original maturities of three months or less. | Cash and Cash Equivalents Cash and cash equivalents include cash and all highly liquid instruments with original maturities of three months or less. |
Accounts Receivable | Accounts Receivable Accounts receivable are stated at carrying value less estimates made for doubtful receivables. An allowance for impairment of trade receivables is established if the collection of a receivable becomes doubtful. Such receivable becomes doubtful when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter into bankruptcy or financial reorganization, and default or delinquency in payments are considered indicators that the receivable is impaired. The amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. An impairment loss is recognized in the statement of income, as are subsequent recoveries of previous impairments. | Accounts Receivable Accounts receivable are stated at carrying value less estimates made for doubtful receivables. An allowance for impairment of trade receivables is established if the collection of a receivable becomes doubtful. Such receivable becomes doubtful when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter into bankruptcy or financial reorganization, and default or delinquency in payments are considered indicators that the receivable is impaired. The amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. An impairment loss is recognized in the statement of income, as are subsequent recoveries of previous impairments. |
Inventory | Inventory Inventory is stated at the lower of cost and net realizable value. Net realizable value (NRV) is defined as estimated selling prices less costs of completion, disposal, and transportation. Inventory consists mainly of finished goods held for resale. Cost is determined on a weighted average cost method. The Company periodically reviews the age and turnover of its inventory to determine whether any inventory has become obsolete or has declined in value, and incurs a charge to operations for known and anticipated inventory obsolescence. | Inventory Inventory is stated at the lower of cost and net realizable value. Net realizable value (NRV) is defined as estimated selling prices less costs of completion, disposal, and transportation. Inventory consists mainly of finished goods held for resale. Cost is determined on a weighted average cost method. The Company periodically reviews the age and turnover of its inventory to determine whether any inventory has become obsolete or has declined in value, and incurs a charge to operations for known and anticipated inventory obsolescence. |
Property and Equipment | Property and Equipment Property and equipment is carried at cost net of accumulated depreciation. Repairs and maintenance are expensed as incurred. Expenditures that improve the functionality of the related asset or extend the useful life are capitalized. When property and equipment is retired or otherwise disposed of, the related gain or loss is included in operating income. Leasehold improvements are depreciated on the straight-line method over the shorter of the remaining lease term or estimated useful life of the asset. Depreciation is calculated on the straight-line method, including property and equipment under capital leases, generally is five years. Depreciation expense is $902 and $1,383 for the six months ended June 30, 2019 and 2018, respectively. | Property and Equipment Property and equipment is carried at cost net of accumulated depreciation. Repairs and maintenance are expensed as incurred. Expenditures that improve the functionality of the related asset or extend the useful life are capitalized. When property and equipment is retired or otherwise disposed of, the related gain or loss is included in operating income. Leasehold improvements are depreciated on the straight-line method over the shorter of the remaining lease term or estimated useful life of the asset. Depreciation is calculated on the straight-line method, including property and equipment under capital leases, generally is five years. Depreciation expense is $2,510 and $1,143 for the years ended December 31, 2018 and 2017, respectively. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company has adopted Accounting Standards Codification subtopic 360-10, Property, Plant and Equipment (“ASC 360-10”). ASC 360-10 requires that long-lived assets and certain identifiable intangibles held and used by the Company be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company evaluates its long-lived assets for impairment annually or more often if events and circumstances warrant. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve breakeven operating results over an extended period. The Company evaluates the recoverability of long-lived assets based upon forecasted undiscounted cash flows. Should impairment in value be indicated, the carrying value of intangible assets will be adjusted, based on estimates of future discounted cash flows resulting from the use and ultimate disposition of the asset. ASC 360-10 also requires assets to be disposed of be reported at the lower of the carrying amount or the fair value less costs to sell. Management has determined that no impairments of long-lived assets currently exist as of June 30, 2019 and December 31, 2018. | Impairment of Long-Lived Assets The Company has adopted Accounting Standards Codification subtopic 360-10, Property, Plant and Equipment (“ASC 360-10”). ASC 360-10 requires that long-lived assets and certain identifiable intangibles held and used by the Company be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company evaluates its long lived assets for impairment annually or more often if events and circumstances warrant. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve breakeven operating results over an extended period. The Company evaluates the recoverability of long-lived assets based upon forecasted undiscounted cash flows. Should impairment in value be indicated, the carrying value of intangible assets will be adjusted, based on estimates of future discounted cash flows resulting from the use and ultimate disposition of the asset. ASC 360-10 also requires assets to be disposed of be reported at the lower of the carrying amount or the fair value less costs to sell. Management has determined that no impairments of long lived assets currently exist. |
Long-term Equity Investment | Long-term Equity Investment The Company acquires equity investment to promote business and strategic objectives. The Company accounts for non-marketable equity and other equity investments for which the Company does not have control over the investees as: · Equity method investments when the Company has the ability to exercise significant influence, but not control, over the investee. Its proportionate share of the income or loss is recognized monthly and is recorded in gain (loss) on equity investments. · Non-marketable cost method investments when the equity method does not apply. Significant judgment is required to identify whether an impairment exists in the valuation of the Company’s non-marketable equity investments, and therefore the Company considers this a critical accounting estimate. Its yearly analysis considers both qualitative and quantitative factors that may have a significant impact on the investee's fair value. Qualitative analysis of its investments involves understanding the financial performance and near-term prospects of the investee, changes in general market conditions in the investee’s industry or geographic area, and the management and governance structure of the investee. Quantitative assessments of the fair value of its investments are developed using the market and income approaches. The market approach includes the use of comparable financial metrics of private and public companies and recent financing rounds. The income approach includes the use of a discounted cash flow model, which requires significant estimates regarding the investees' revenue, costs, and discount rates. The Company’s assessment of these factors in determining whether an impairment exists could change in the future due to new developments or changes in applied assumptions. | |
Other-Than-Temporary Impairment | Other-Than-Temporary Impairment The Company’s long-term equity investments are subject to a periodic impairment review. Impairments affect earnings as follows: · Marketable equity securities include the consideration of general market conditions, the duration and extent to which the fair value is below cost, and our ability and intent to hold the investment for a sufficient period of time to allow for recovery of value in the foreseeable future. The Company also considers specific adverse conditions related to the financial health of, and the business outlook for, the investee, which may include industry and sector performance, changes in technology, operational and financing cash flow factors, and changes in the investee’s credit rating. The Company records other-than-temporary impairments on marketable equity securities and marketable equity method investments in gain (loss) on equity investments. · Non-marketable equity investments based on the Company’s assessment of the severity and duration of the impairment, and qualitative and quantitative analysis of the operating performance of the investee; adverse changes in market conditions and the regulatory or economic environment; changes in operating structure or management of the investee; additional funding requirements; and the investee’s ability to remain in business. A series of operating losses of an investee or other factors may indicate that a decrease in value of the investment has occurred that is other than temporary and that shall be recognized even though the decrease in value is in excess of what would otherwise be recognized by application of the equity method. A loss in value of an investment that is other than a temporary decline shall be recognized. Evidence of a loss in value might include, but would not necessarily be limited to, absence of an ability to recover the carrying amount of the investment or inability of the investee to sustain an earnings capacity that would justify the carrying amount of the investment. The Company records other-than-temporary impairments for non-marketable cost method investments and equity method investments in gain (loss) on equity investments. | |
Revenue Recognition | Revenue Recognition During the fiscal year 2018, the Company has adopted FASB Accounting Standards Codification (“ASC”), Topic 606 (“ASC 606”), Revenue from Contracts with Customers, using the modified retrospective method to all contracts that were not completed as of January 1, 2018. The Company recognized the cumulative effect of applying the new revenue standard as an adjustment to the opening balance of accumulated deficit at the beginning of 2018. The results for the Company’s reporting periods beginning on and after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period. Based on the Company’s review of existing sales contracts as of January 1, 2018, the Company concluded that the adoption of the new guidance did not have a significant change on the Company’s revenue during all periods presented. Pursuant to ASC 606, the Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines is within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration the Company is entitled to in exchange for the goods or services the Company transfers to the customers. At inception of the contract, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract, determines those that are performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Merchandise Sales: The Company recognizes sales revenues from merchandise sales when customers obtain control of the Company’s products, which typically occurs upon delivery to customer. Merchandise sales revenues are recorded at the sales price, or “transaction price”. Trade discount and allowances: The Company generally does not provide invoice discounts on product sales to its customers for prompt payment. Product returns : To date, product allowance and returns have been minimal and, based on its experience, the Company believes that returns of its products will continue to be minimal. The following tables provide details of revenue by major products and by geography. Revenue by Major Products For the six months ended June 30, 2019: Nutrition supplement $ 61,668 Skin care product 130,190 Water purifying machine 41,799 Software 4,515 Total $ 238,172 Revenue by Geography For the six months ended June 30, 2019: Asia Pacific $ 238,172 Total $ 238,172 | Revenue Recognition During the fiscal year 2018, the Company has adopted Accounting Standards Codification (“ASC”), Topic 606 (ASC 606), Revenue from Contracts with Customers, using the modified retrospective method to all contracts that were not completed as of January 1, 2018. The Company recognized the cumulative effect of applying the new revenue standard as an adjustment to the opening balance of accumulated deficit at the beginning of 2018. The results for the Company’s reporting periods beginning on and after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period. Based on the Company’s review of existing sales contracts as of January 1, 2018, the Company concluded that the adoption of the new guidance did not have a significant change on the Company’s revenue during all periods presented. Pursuant to ASC 606, the Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines is within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration the Company is entitled to in exchange for the goods or services the Company transfers to the customers. At inception of the contract, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract, determines those that are performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Merchandise Sales: The Company recognizes sales revenues from merchandise sales when customers obtain control of the Company’s products, which typically occurs upon delivery to customer. Merchandise sales revenues are recorded at the sales price, or “transaction price”. Trade discount and allowances: The Company generally does not provide invoice discounts on product sales to its customers for prompt payment. Product returns : To date, product allowance and returns have been minimal and, based on its experience, the Company believes that returns of its products will continue to be minimal. The following tables provide details of revenue by major products and by geography. Revenue by Major Products For the year ended December 31, 2018: Nutrition supplement $ 503,049 Skin care product 630,796 Water purifier 556,600 Software 86,320 Other s 1,180 Total $ 1,777,945 Revenue by Geography For the year ended December 31, 2018: Asia Pacific $ 1,777,945 Total $ 1,777,945 |
Leases | Leases - The Company applied the following practical expedients in the transition to the new standard and allowed under ASC 842: Practical Expedient Description Reassessment of expired or existing contracts The Company elected not to reassess, at the application date, whether any expired or existing contracts contained leases, the lease classification for any expired or existing leases, and the accounting for initial direct costs for any existing leases. Use of hindsight The Company elected to use hindsight in determining the lease term (that is, when considering options to extend or terminate the lease and to purchase the underlying asset) and in assessing impairment of right-to-use assets. Reassessment of existing or expired land easements The Company elected not to evaluate existing or expired land easements that were not previously accounted for as leases under ASC 840, as allowed under the transition practical expedient. Going forward, new or modified land easements will be evaluated under ASU No. 2016-02. Separation of lease and non-lease components Lease agreements that contain both lease and non-lease components are generally accounted for separately. Short-term lease recognition exemption The Company also elected the short-term lease recognition exemption and will not recognize ROU assets or lease liabilities for leases with a term less than 12 months. The new leasing standard requires recognition of leases on the consolidated balance sheets as right-of-use (“ROU”) assets and lease liabilities. ROU assets represent the Company’s right to use underlying assets for the lease terms and lease liabilities represent the Company’s obligation to make lease payments arising from the leases. Operating lease ROU assets and operating lease liabilities are recognized based on the present value and future minimum lease payments over the lease term at commencement date. The Company’s future minimum based payments used to determine the Company’s lease liabilities mainly include minimum based rent payments. As most of Company’s leases do not provide an implicit rate, the Company uses its estimated incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The adoption of ASC 842 had no substantial impact on the Company’s consolidated balance sheets. The most significant impact was the recognition of the operating lease right-of-use assets and the liability for operating leases. Accordingly, adoption of this standard resulted in the recognition of operating lease right-of-use assets of $8,235 and operating lease liabilities of $8,235 on the condensed consolidated balance sheet as of January 1, 2019. The adoption of ASC 842 did not result in a cumulative-effect adjustment to the opening balance of accumulated deficit. In addition, the adoption of the standard did not have a material impact on the Company's results of operations or cash flows. Operating lease cost is recognized as a single lease cost on a straight-line basis over the lease term and is recorded in Selling, general and administrative expenses. Variable lease payments for common area maintenance, property taxes and other operating expenses are recognized as expense in the period when the changes in facts and circumstances on which the variable lease payments are based occur. | |
Advertising Costs | Advertising Costs Advertising costs are expensed at the time such advertising commences. Advertising expenses were $22,321 and $1,958 for the six months ended June 30, 2019 and 2018, respectively. | Advertising Costs Advertising costs are expensed at the time such advertising commences. Advertising expenses were $13,299 and $50 for the years ended December 31, 2018 and 2017, respectively. |
Post-retirement and Post-employment Benefits | Post-retirement and Post-employment Benefits The Company’s subsidiaries in Taiwan adopted the government mandated defined contribution plan pursuant to the Taiwan Labor Pension Act (the “Act”). Such labor regulations require that the rate of contribution made by an employer to the Labor Pension Fund per month shall not be less than 6% of the worker's monthly salaries. Pursuant to the Act, the Company makes monthly contribution equal to 6% of employees’ salaries to the employees’ pension fund. The Company has no legal obligation for the benefits beyond the contributions made. The total amounts for such employee benefits, which were expensed as incurred, were $4,000 and $3,965 for the six months ended June 30, 2019 and 2018, respectively. Other than the above, the Company does not provide any other post-retirement or post-employment benefits. | Post-retirement and Post-employment Benefits The Company’s subsidiaries in Taiwan adopted the government mandated defined contribution plan pursuant to the Taiwan Labor Pension Act (the “Act”). Such labor regulations require that the rate of contribution made by an employer to the Labor Pension Fund per month shall not be less than 6% of the worker’s monthly salaries. Pursuant to the Act, the Company makes monthly contribution equal to 6% of employees’ salaries to the employees’ pension fund. The Company has no legal obligation for the benefits beyond the contributions made. The total amounts for such employee benefits, which were expensed as incurred, were $7,958 and $1,629 for the years ended December 31, 2018 and 2017, respectively. Other than the above, the Company does not provide any other post-retirement or post-employment benefits. |
Fair Value Measurements | Fair Value Measurements FASB ASC 820, “Fair Value Measurements” defines fair value for certain financial and nonfinancial assets and liabilities that are recorded at fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. It requires that an entity measure its financial instruments to base fair value on exit price, maximize the use of observable units and minimize the use of unobservable inputs to determine the exit price. It establishes a hierarchy which prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy increases the consistency and comparability of fair value measurements and related disclosures by maximizing the use of observable inputs and minimizing the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the assets or liabilities based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy prioritizes the inputs into three broad levels based on the reliability of the inputs as follows: · Level 1 – Inputs are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Valuation of these instruments does not require a high degree of judgment as the valuations are based on quoted prices in active markets that are readily and regularly available. · Level 2 – Inputs other than quoted prices in active markets that are either directly or indirectly observable as of the measurement date, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. · Level 3 – Valuations based on inputs that are unobservable and not corroborated by market data. The fair value for such assets and liabilities is generally determined using pricing models, discounted cash flow methodologies, or similar techniques that incorporate the assumptions a market participant would use in pricing the asset or liability. The carrying values of certain assets and liabilities of the Company, such as cash and cash equivalents, accounts receivable, inventory, advance to suppliers, prepaid expenses, accounts payable, accrued expenses, and due to shareholders, approximate fair value because of to their relatively short maturities. | Fair Value Measurements FASB ASC 820, “Fair Value Measurements” defines fair value for certain financial and nonfinancial assets and liabilities that are recorded at fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. It requires that an entity measure its financial instruments to base fair value on exit price, maximize the use of observable units and minimize the use of unobservable inputs to determine the exit price. It establishes a hierarchy which prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy increases the consistency and comparability of fair value measurements and related disclosures by maximizing the use of observable inputs and minimizing the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the assets or liabilities based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy prioritizes the inputs into three broad levels based on the reliability of the inputs as follows: · Level 1 – Inputs are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Valuation of these instruments does not require a high degree of judgment as the valuations are based on quoted prices in active markets that are readily and regularly available. · Level 2 – Inputs other than quoted prices in active markets that are either directly or indirectly observable as of the measurement date, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. · Level 3 – Valuations based on inputs that are unobservable and not corroborated by market data. The fair value for such assets and liabilities is generally determined using pricing models, discounted cash flow methodologies, or similar techniques that incorporate the assumptions a market participant would use in pricing the asset or liability. The carrying values of certain assets and liabilities of the Company, such as cash and cash equivalents, accounts receivable, advance to suppliers, prepaid expenses, accounts payable, accrued expenses, and due to shareholders, approximate fair value because of to their relatively short maturities. |
Net Income Per Share | Net Income (Loss) Per Share Basic income (loss) per share is computed by dividing net income by weighted average number of shares of common stock outstanding during each period. Diluted income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock, common stock equivalents, and potentially dilutive securities outstanding during each period. For the six months ended June 30, 2019 and 2018, the Company does not have any outstanding common stock equivalents; therefore, a separate computation of diluted loss per share is not presented. | Net Income Per Share Basic income per share is computed by dividing net income by weighted average number of shares of common stock outstanding during each period. Diluted income per share is computed by dividing net income by the weighted average number of shares of common stock, common stock equivalents, and potentially dilutive securities outstanding during each period. For the years ended December 31, 2018 and 2017, the Company does not have any outstanding common stock equivalents; therefore, a separate computation of diluted loss per share is not presented. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with ASC 740, Income Taxes, which requires that the Company recognize deferred tax liabilities and assets based on the differences between the financial statement carrying amounts and the tax basis of assets and liabilities, using enacted tax rates in effect in the years the differences are expected to reverse. Deferred income tax benefit (expense) results from the change in net deferred tax assets or deferred tax liabilities. A valuation allowance is recorded when, in the opinion of management, it is more likely than not that some or all of any deferred tax assets will not be realized. | Income Taxes The Company accounts for income taxes in accordance with ASC 740, Income Taxes, which requires that the Company recognize deferred tax liabilities and assets based on the differences between the financial statement carrying amounts and the tax basis of assets and liabilities, using enacted tax rates in effect in the years the differences are expected to reverse. Deferred income tax benefit (expense) results from the change in net deferred tax assets or deferred tax liabilities. A valuation allowance is recorded when, in the opinion of management, it is more likely than not that some or all of any deferred tax assets will not be realized. |
Concentration of Credit Risk | Concentration of Credit Risk Cash and cash equivalents Customers For the six months ended June 30, 2019, one customer, a related party, accounted for more than 10% of the Company’s total revenues, representing approximately 76% of its total revenues, and 76% of accounts receivable in aggregate at June 30, 2019. Customer Net sales for the six months ended June 30, 2019 Accounts receivable balance as of June 30, 2019 A $ 180,367 * $ 1,143,557 For the six months ended June 30, 2018, one customer, a related party, accounted for more than 10% of the Company’s total revenues, represented approximately 93% of its total revenues and 83% of accounts receivable in aggregate at June 30, 2018, respectively. Customer Net sales for the six months ended June 30, 2018 Accounts receivable balance as of June 30, 2018 A $ 394,016 * $ 831,810 *Related party transactions (See Note 4). Suppliers For the six months ended June 30, 2019, two suppliers accounted for more than 10% of the Company’s total net purchase, representing approximately 87% and 10% of total net purchase, and 0% and 100% of accounts payable in aggregate at June 30, 2019, respectively: Supplier Net purchase for the six months ended June 30, 2019 Accounts payable balance as of June 30, 2019 A $ 34,561 $ - B $ 3,821 $ 715 For the six months ended June 30, 2018, three suppliers accounted for more than 10% of the Company’s total net purchase, representing approximately 46%, 20% and 19% of total net purchase, and 57%, 0% and 0% of accounts payable in aggregate at June 30, 2018, respectively: Supplier Net purchase for the six months ended June 30, 2018 Accounts payable balance as of June 30, 2018 A $ 23,799 $ 7,821 C $ 10,158 $ - D $ 9,548 $ - | Concentration of Credit Risk Cash and cash equivalents Customers For the year ended December 31, 2018, two customers accounted for more than 10% of the Company’s total revenues, representing approximately 69% and 16% of its total revenues, and 69% and 13% of accounts receivable in aggregate at December 31, 2018 Customer Net sales for the year ended December 31, 2018 Accounts receivable balance as of December 31, 2018 A $ 1,235,203 * $ 1,263,833 B 279,405 237,980 For the year ended December 31, 2017, four customers accounted for more than 10% of the Company’s total revenues, represented approximately 39%, 25%, 24% and 12% of its total revenues, and 71%, 0%, 27% and 0% of accounts receivable in aggregate at December 31, 2017, respectively. Customer Net sales for the year ended December 31, 2017 Accounts receivable balance as of December 31, 2017 A $ 582,973 * $ 561,978 C $ 371,043 * $ - D $ 365,815 * $ 224,203 E $ 186,266 * $ - ___________ *Related party transactions (See Note 2). Suppliers Supplier Net purchase for the year ended December 31, 2018 Accounts payable balance as of December 31, 2018 A $ 50,529 $ - B $ 28,371 $ - C $ 19,620 $ - For the year ended December, 2017, three suppliers accounted for more than 10% of the Company’s total net purchase, representing approximately 45%, 33% and 17% of total net purchase, and 0%, 92% and 0% of accounts payable in aggregate at December 31, 2017, respectively: Supplier Net purchase for the year ended December 31, 2017 Accounts payable balance as of December 31, 2017 B $ 123,878 $ - D $ 92,046 $ 34,221 E $ 45,941 $ - |
Foreign-currency Transactions | Foreign-currency Transactions Foreign-currency transactions are recorded in New Taiwan dollars (“NTD”) and Renminbi (“RMB”) at the rates of exchange in effect when the transactions occur. Gains or losses resulting from the application of different foreign exchange rates when cash in foreign currency is converted into New Taiwan dollars and Renminbi, or when foreign-currency receivables or payables are settled, are credited or charged to income in the year of conversion or settlement. On the balance sheet dates, the balances of foreign-currency assets and liabilities are restated at the prevailing exchange rates and the resulting differences are charged to current income except for those foreign currencies denominated investments in shares of stock where such differences are accounted for as translation adjustments under stockholders’ equity. | Foreign-currency Transactions Foreign-currency transactions are recorded in New Taiwan dollars (“NTD”) at the rates of exchange in effect when the transactions occur. Gains or losses resulting from the application of different foreign exchange rates when cash in foreign currency is converted into New Taiwan dollars, or when foreign-currency receivables or payables are settled, are credited or charged to income in the year of conversion or settlement. On the balance sheet dates, the balances of foreign-currency assets and liabilities are restated at the prevailing exchange rates and the resulting differences are charged to current income except for those foreign currencies denominated investments in shares of stock where such differences are accounted for as translation adjustments under Equity. |
Translation Adjustment | Translation Adjustment The accounts of the Company’s subsidiaries were maintained, and their financial statements were expressed in New Taiwan Dollar (“NTD”) and Renminbi (“RMB”). Such financial statements were translated into U.S. Dollars (“$” or “USD”) in accordance ASC 830, "Foreign Currency Matters", with the NTD and RMB as the functional currency. According to the Statement, all assets and liabilities are translated at the current exchange rate, common stock and additional paid-in capital are translated at the historical rates, and income statement items are translated at an average exchange rate for the period. The resulting translation adjustments are reported under accumulated other comprehensive income (loss) as a component of stockholders’ equity. | Translation Adjustment The accounts of the Company’s subsidiaries were maintained, and their financial statements were expressed, in New Taiwan Dollar (“NTD”). Such financial statements were translated into U.S. Dollars (“$” or “USD”) in accordance ASC 830, “Foreign Currency Matters”, with the NTD as the functional currency. According to the Statement, all assets and liabilities are translated at the current exchange rate, Equity’s deficit are translated at the historical rates and income statement items are translated at an average exchange rate for the period. The resulting translation adjustments are reported under accumulated other comprehensive income (loss) as a component of stockholders’ equity (deficit). |
Comprehensive Income (loss) | Comprehensive Income (loss) Comprehensive income (loss) includes accumulated foreign currency translation gains and losses. The Company has reported the components of comprehensive income (loss) on its consolidated statements of operations and other comprehensive income (loss). | Comprehensive Income (loss) Comprehensive income (loss) includes accumulated foreign currency translation gains and losses. The Company has reported the components of comprehensive income (loss) on its consolidated statements of operations and other comprehensive income (loss). |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company has implemented all new pronouncements that are in effect and that may impact its consolidated financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its consolidated financial statements or results of operations. | Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-02, Leases (ASC 842), which was amended by ASU 2018-11, Leases (ASC 842): Targeted Improvements. The new guidance requires lessee recognition on the balance sheet of a right-of-use (ROU) asset and a lease liability, initially measured at the present value of the lease payments. It further requires recognition in the income statement of a single lease cost, calculated so that the cost of the lease is allocated over the lease term generally on a straight-line basis. Finally, it requires classification of all cash payments within operating activities in the statement of cash flows. The standard is effective for public companies for fiscal years beginning after December 15, 2018 and early adoption is permitted. The standard requires a transition adoption election using either 1) a modified retrospective approach with periods prior to the adoption date being recast or 2) a prospective adoption approach with a cumulative-effect adjustment recognized to the opening balance of retained earnings on the adoption date with prior periods not recast. The Company anticipates adopting this standard with an effective date of January 1, 2019 using the prospective adoption approach. The Company has evaluated the changes from this standard to its future financial reporting and disclosures, and has designed and implemented related processes and controls to address these changes. The Company believes the most significant effects relate to (1) the recognition of new ROU assets and lease liabilities on its balance sheet for its office operating lease; and (2) providing significant new disclosures about its leasing activities related to the amount, timing and uncertainty of cash flows arising from leases. The Company is continuing its assessment, which may identify additional impacts this guidance will have on its financial statements and disclosures. In December 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin (“SAB”) No. 118 (as further clarified by FASB ASU 2018-05, Income Taxes (Topic 740): “Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118”) to provide guidance for companies that may not have completed their accounting for the income tax effects of the Tax Cut and Jobs Act (“Tax Act”) in the period of enactment, which is the period that includes December 22, 2017. SAB No. 118 provides for a provisional one year measurement period for entities to finalize their accounting for certain income tax effects related to the Tax Act. SAB No. 118 provides guidance where: (i) the accounting for the income tax effect of the Tax Act is complete and reported in the Tax Act’s enactment period, (ii) the accounting for the income tax effect of the Tax Act is incomplete and reported as provisional amounts based on reasonable estimates (to the extent determinable) subject to adjustments during a limited measurement period until complete, and (iii) accounting for the income tax effect of the Tax Act is not reasonably estimable (no related provisional amounts are reported in the enactment period) and entities would continue to apply accounting based on tax law provisions in effect prior to the Tax Act enactment until provisional amounts are reasonably estimable. SAB No. 118 requires disclosure of the reasons for incomplete accounting additional information or analysis needed, among other relevant information. The Company is continuing to gather additional information to determine the final impact. In February 2018, the FASB issued ASU No, 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”. The amendments in this Update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users. However, because the amendments only relate to the reclassification of the income tax effects of the Tax Cuts and Jobs Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. The amendments in this Update also require certain disclosures about stranded tax effects. The amendments in this Update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company is currently evaluating the impact of adopting this new guidance on its financial position, results of operations, statement of comprehensive income, and cash flows. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (“Topic 820”): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The ASU modifies the disclosure requirements in Topic 820, Fair Value Measurement, by removing certain disclosure requirements related to the fair value hierarchy, modifying existing disclosure requirements related to measurement uncertainty and adding new disclosure requirements, such as disclosing the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and disclosing the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. This ASU is effective for public companies for annual reporting periods and interim periods within those annual periods beginning after December 15, 2019. The Company is currently evaluating the effect, if any, that the ASU will have on its financial statements. |
NATURE OF OPERATIONS AND SUMM_3
NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Nature Of Operations And Summary Of Accounting Policies [Line Items] | ||
Schedule of revenue by major products | For the six months ended June 30, 2019: Nutrition supplement $ 61,668 Skin care product 130,190 Water purifying machine 41,799 Software 4,515 Total $ 238,172 | For the year ended December 31, 2018: Nutrition supplement $ 503,049 Skin care product 630,796 Water purifier 556,600 Software 86,320 Other s 1,180 Total $ 1,777,945 |
Schedule of revenue by geography | For the six months ended June 30, 2019: Asia Pacific $ 238,172 Total $ 238,172 | For the year ended December 31, 2018: Asia Pacific $ 1,777,945 Total $ 1,777,945 |
Customer concentration risk | ||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | ||
Schedule of concentration of credit risk | Customer Net sales for the six months ended June 30, 2019 Accounts receivable balance as of June 30, 2019 A $ 180,367 * $ 1,143,557 Customer Net sales for the six months ended June 30, 2018 Accounts receivable balance as of June 30, 2018 A $ 394,016 * $ 831,810 | Customer Net sales for the year ended December 31, 2018 Accounts receivable balance as of December 31, 2018 A $ 1,235,203 * $ 1,263,833 B 279,405 237,980 Customer Net sales for the year ended December 31, 2017 Accounts receivable balance as of December 31, 2017 A $ 582,973 * $ 561,978 C $ 371,043 * $ - D $ 365,815 * $ 224,203 E $ 186,266 * $ - |
Supplier concentration risk | ||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | ||
Schedule of concentration of credit risk | Net purchase for the six months ended June 30, 2019 Accounts payable balance as of June 30, 2019 A $ 34,561 $ - B $ 3,821 $ 715 Supplier Net purchase for the six months ended June 30, 2018 Accounts payable balance as of June 30, 2018 A $ 23,799 $ 7,821 C $ 10,158 $ - D $ 9,548 $ - | Supplier Net purchase for the year ended December 31, 2018 Accounts payable balance as of December 31, 2018 A $ 50,529 $ - B $ 28,371 $ - C $ 19,620 $ - Supplier Net purchase for the year ended December 31, 2017 Accounts payable balance as of December 31, 2017 B $ 123,878 $ - D $ 92,046 $ 34,221 E $ 45,941 $ - |
LEASE (Tables)
LEASE (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Schedule of information about leases expense | June 30, 2019 Operating Leases: Operating lease – right of use (“ROU”) assets $ 41,778 Operating lease liability, current portion 21,398 Operating lease liability, noncurrent portion 20,380 Total operating lease liabilities $ 41,778 Six Months Ended June 30, 2019 Operating lease expenses, net $ 8,704 $ 8,704 |
Schedule of other information related to leases | Six Months Ended June 30, 2019 Cash Paid For Amounts Included In Measurement of Liabilities: Operating cash flows from operating leases 8,704 Weighted Average Remaining Lease Term: Operating leases 2 years Weighted Average Discount Rate: Operating leases 4 % |
Schedule of minimum future annual payments | Operating leases 2019 (excluding the six months ended June 30, 2019) $ 11,302 2020 22,605 2021 9,418 Total future minimum lease payments, undiscounted 43,325 Less: Imputed interest (1,547 ) Present value of future minimum lease payments $ 41,778 |
LONG-TERM INVESTMENT (Tables)
LONG-TERM INVESTMENT (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Long-term Investments [Abstract] | |
Schedule of summarized financial information of equity method investee | Balance Sheets (Unaudited) June 30, December 31, 2019 2018 Current Assets $ 33,254 $ 20,997 Noncurrent Assets 1,004 - Current Liabilities 1,269,350 1,238,711 Shareholders’ Equity (Deficit) (1,235,092 ) (1,217,714 ) Statement of Operation (Unaudited) From the period from May 24, 2019 to June 30, 2019 Net Sales $ 524 Gross profit 64 Net loss (12,128 ) Share of profit (losses) from investment accounted for using the equity method (2,426 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Schedule of provision for income tax | For the Six Months Ended June 30, 2019 2018 Current income tax U.S. $ - $ - Taiwan - 25,295 PRC - - Sub total - 25,295 Deferred income tax U.S. Deferred tax assets for NOL carryforwards (3,523 ) (25,320 ) Valuation allowance 3,523 25,320 Net changes in deferred income tax (benefit) - - Total income tax provision $ - $ 25,295 | For the Years Ended December 31, 2018 2017 Current income tax U.S. $ - $ - Taiwan 17,795 39,708 Sub total 17,795 39,708 Deferred income tax U.S. Deferred tax assets for NOL carryforwards (30,245 ) (17,096 ) Valuation allowance 30,245 17,096 Net changes in deferred income tax (benefit) - - Total provision income tax $ 17,795 $ 39,708 |
Schedule of reconciliation of statutory tax rate to effective tax rate | For the Six Months Ended June 30, 2019 2018 U.S. statutory income tax rate 21 % 21 % Taiwan unified income tax rate 20 % 20 % PRC standard EIT rate 25 % N/A Changes in valuation allowance (66 )% (41 )% Other - % - % Effective combined income tax rate - % - % | For the Years Ended December31, 2018 2017 U.S. statutory income tax rate 21 % 34 % Taiwan unified income tax rate 20 % 17 % Provisional remeasurement of deferred taxes (U.S.) - (13 )% Changes in valuation allowance (21 )% (21 )% Other (18 )% (13 )% Effective combined income tax rate 2 % 4 % |
Schedule of components of the deferred taxes | June 30, December 31, 2019 2018 Deferred tax assets: (Unaudited) Net operating loss carryforwards $ 114,569 $ 111,556 Less: Valuation allowance (114,569 ) (111,556 ) Deferred tax assets, net $ - $ - | December 31, December 31, 2018 2017 Deferred tax assets: Net operating loss carryforwards $ 111,556 $ 81,311 Less: Valuation allowance (111,556 ) (81,311 ) Deferred tax assets, net $ - $ - |
COMMITMENT (Tables)
COMMITMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease receipts under the lease | As of December 31, Amount 2019 $ 8,515 Total $ 8,515 |
NATURE OF OPERATIONS AND SUMM_4
NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Nature Of Operations And Summary Of Accounting Policies [Line Items] | ||||||
Revenue | $ 38,060 | $ 323,635 | $ 238,172 | $ 425,172 | $ 1,777,945 | $ 1,509,880 |
Nutrition supplement | ||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | ||||||
Revenue | 61,668 | 503,049 | ||||
Skin care product | ||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | ||||||
Revenue | 130,190 | 630,796 | ||||
Water purifier machine | ||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | ||||||
Revenue | 41,799 | 556,600 | ||||
Software | ||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | ||||||
Revenue | $ 4,515 | 86,320 | ||||
Others | ||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | ||||||
Revenue | $ 1,180 |
NATURE OF OPERATIONS AND SUMM_5
NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES (Details 1) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Nature Of Operations And Summary Of Accounting Policies [Line Items] | ||||||
Revenue | $ 38,060 | $ 323,635 | $ 238,172 | $ 425,172 | $ 1,777,945 | $ 1,509,880 |
Asia Pacific | ||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | ||||||
Revenue | $ 238,172 | $ 1,777,945 |
NATURE OF OPERATIONS AND SUMM_6
NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES (Details 2) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Nature Of Operations And Summary Of Accounting Policies [Line Items] | ||||||
Net sales | $ 28,751 | $ 28,107 | $ 57,805 | $ 28,107 | $ 536,616 | $ 3,783 |
Customer A | Customer concentration risk | ||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | ||||||
Net sales | 180,367 | 394,016 | 1,235,203 | 582,973 | ||
Accounts receivable | $ 1,143,557 | $ 831,810 | $ 1,143,557 | $ 831,810 | 1,263,833 | 561,978 |
Customer B | Customer concentration risk | ||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | ||||||
Net sales | 279,405 | |||||
Accounts receivable | $ 237,980 | |||||
Customer C | Customer concentration risk | ||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | ||||||
Net sales | 371,043 | |||||
Accounts receivable | 0 | |||||
Customer D | Customer concentration risk | ||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | ||||||
Net sales | 365,815 | |||||
Accounts receivable | 224,203 | |||||
Customer E | Customer concentration risk | ||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | ||||||
Net sales | 186,266 | |||||
Accounts receivable | $ 0 |
NATURE OF OPERATIONS AND SUMM_7
NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES (Details 3) - Supplier concentration risk - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplier A | ||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | ||||
Net Purchase | $ 34,561 | $ 23,799 | $ 50,529 | |
Accounts payable | 0 | 7,821 | 0 | $ 0 |
Supplier B | ||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | ||||
Net Purchase | 3,821 | 28,371 | 123,878 | |
Accounts payable | $ 715 | 0 | 0 | |
Supplier C | ||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | ||||
Net Purchase | 10,158 | 19,620 | ||
Accounts payable | 0 | $ 0 | ||
Supplier D | ||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | ||||
Net Purchase | 9,548 | 92,046 | ||
Accounts payable | $ 0 | 34,221 | ||
Supplier E | ||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | ||||
Net Purchase | 45,941 | |||
Accounts payable | $ 0 |
NATURE OF OPERATIONS AND SUMM_8
NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES (Detail Textuals) | May 03, 2017USD ($) | Jun. 30, 2019USD ($)SupplierCustomer | Jun. 30, 2018USD ($)SupplierCustomer | Dec. 31, 2018USD ($)SupplierCustomer | Dec. 31, 2017USD ($)SupplierCustomer | Mar. 01, 2019USD ($) | Jan. 01, 2019USD ($) |
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||||
Acquisition of subsidiary equity interest | $ 30,562 | $ 30,562 | |||||
Depreciation expense | $ 902 | $ 1,383 | $ 2,510 | 1,143 | |||
Advertising cost | 22,321 | 1,958 | $ 13,299 | 50 | |||
Operating lease right-of-use assets | 41,778 | ||||||
Operating lease liabilities - current | $ 21,398 | ||||||
Rate of contribution made to employees pension fund | 6.00% | 6.00% | |||||
Amount of employee benefits | $ 4,000 | $ 3,965 | $ 7,958 | $ 1,629 | |||
Methods of depreciation | straight-line | straight-line method | |||||
Estimated useful life of property and equipment | five years | five years | |||||
Subsidiary Issuer [Member] | |||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||||
Registered capital | $ 100,000 | ||||||
Customers concentration risk | Revenue | |||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||||
Concentration risk, description | more than 10% | more than 10% | |||||
Number of customers | Customer | 2 | 4 | |||||
Customers concentration risk | Revenue | Customer A | |||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||||
Concentration risk, description | more than 10% | more than 10% | |||||
Number of customers | Customer | 1 | 1 | |||||
Concentration risk, percentage | 76.00% | 93.00% | 69.00% | 39.00% | |||
Customers concentration risk | Revenue | Customer B | |||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||||
Concentration risk, percentage | 16.00% | ||||||
Customers concentration risk | Revenue | Customer C | |||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||||
Concentration risk, percentage | 25.00% | ||||||
Customers concentration risk | Revenue | Customer D | |||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||||
Concentration risk, percentage | 24.00% | ||||||
Customers concentration risk | Revenue | Customer E | |||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||||
Concentration risk, percentage | 12.00% | ||||||
Customers concentration risk | Accounts receivable | Customer A | |||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||||
Concentration risk, percentage | 76.00% | 83.00% | 69.00% | 71.00% | |||
Customers concentration risk | Accounts receivable | Customer B | |||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||||
Concentration risk, percentage | 13.00% | ||||||
Customers concentration risk | Accounts receivable | Customer C | |||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||||
Concentration risk, percentage | 0.00% | ||||||
Customers concentration risk | Accounts receivable | Customer D | |||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||||
Concentration risk, percentage | 27.00% | ||||||
Customers concentration risk | Supplier E | Accounts receivable | |||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||||
Concentration risk, percentage | 0.00% | ||||||
Supplier concentration risk | Purchase | |||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||||
Concentration risk, description | more than 10% | more than 10% | more than 10% | more than 10% | |||
Number of customers | Supplier | 2 | 3 | 3 | 3 | |||
Supplier concentration risk | Supplier A | Purchase | |||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||||
Concentration risk, percentage | 87.00% | 46.00% | 41.00% | ||||
Supplier concentration risk | Supplier A | Accounts payable | |||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||||
Concentration risk, percentage | 0.00% | 57.00% | 0.00% | ||||
Supplier concentration risk | Supplier B | Purchase | |||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||||
Concentration risk, percentage | 10.00% | 23.00% | 45.00% | ||||
Supplier concentration risk | Supplier B | Accounts payable | |||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||||
Concentration risk, percentage | 100.00% | 0.00% | 0.00% | ||||
Supplier concentration risk | Supplier C | Purchase | |||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||||
Concentration risk, percentage | 20.00% | 16.00% | |||||
Supplier concentration risk | Supplier C | Accounts payable | |||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||||
Concentration risk, percentage | 0.00% | 0.00% | |||||
Supplier concentration risk | Supplier D | Purchase | |||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||||
Concentration risk, percentage | 19.00% | 33.00% | |||||
Supplier concentration risk | Supplier D | Accounts payable | |||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||||
Concentration risk, percentage | 0.00% | 92.00% | |||||
Supplier concentration risk | Supplier E | Purchase | |||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||||
Concentration risk, percentage | 17.00% | ||||||
Supplier concentration risk | Supplier E | Accounts payable | |||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||||
Concentration risk, percentage | 0.00% | ||||||
Accounting Standards Update 2016-02 [Member] | |||||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||||
Operating lease right-of-use assets | $ 8,235 | ||||||
Operating lease liabilities - current | $ 8,235 |
LEASE (Details)
LEASE (Details) | Jun. 30, 2019USD ($) |
Operating Leases: | |
Operating lease - right of use ("ROU") assets | $ 41,778 |
Operating lease liability, current portion | 21,398 |
Operating lease liability, noncurrent portion | 20,380 |
Total operating lease liabilities | $ 41,778 |
LEASE (Details 1)
LEASE (Details 1) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating lease expenses, net | $ 8,704 |
Total | $ 8,704 |
LEASE (Details 2)
LEASE (Details 2) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Cash Paid For Amounts Included In Measurement of Liabilities: | |
Operating cash flows from operating leases | $ 8,704 |
Weighted Average Remaining Lease Term: Operating leases | 2 years |
Weighted Average Discount Rate:Operating leases | 4.00% |
LEASE (Details 3)
LEASE (Details 3) | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
2019 (excluding the six months ended June 30, 2019) | $ 11,302 |
2020 | 22,605 |
2021 | 9,418 |
Total future minimum lease payments, undiscounted | 43,325 |
Less: Imputed interest | (1,547) |
Present value of future minimum lease payments | $ 41,778 |
LONG-TERM INVESTMENT (Details)
LONG-TERM INVESTMENT (Details) - USD ($) | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | |||||||
Current Assets | $ 1,611,722 | $ 1,927,538 | $ 833,633 | ||||
Current Liabilities | 185,470 | 299,092 | 215,528 | ||||
Shareholders' Equity (Deficit) | 1,491,839 | $ 1,614,727 | 1,638,789 | $ 728,651 | $ 583,286 | $ 633,483 | $ (269,503) |
A-Best Wire Harness & Components Co., Ltd. | |||||||
Related Party Transaction [Line Items] | |||||||
Current Assets | 33,254 | 20,997 | |||||
Noncurrent Assets | 1,004 | 0 | |||||
Current Liabilities | 1,269,350 | 1,238,711 | |||||
Shareholders' Equity (Deficit) | $ (1,235,092) | $ (1,217,714) |
LONG-TERM INVESTMENT (Details 1
LONG-TERM INVESTMENT (Details 1) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||||||||
Net sales | $ 28,751 | $ 28,107 | $ 57,805 | $ 28,107 | $ 536,616 | $ 3,783 | |||
Gross profit | 31,294 | 289,472 | 193,351 | 373,772 | 1,561,440 | 1,232,173 | |||
Net income (loss) | $ (153,460) | $ (16,972) | $ 178,033 | $ (61,858) | $ (170,432) | $ 116,175 | $ 1,029,325 | $ 890,972 | |
A-Best Wire Harness & Components Co., Ltd. | |||||||||
Related Party Transaction [Line Items] | |||||||||
Net sales | $ 524 | ||||||||
Gross profit | 64 | ||||||||
Net income (loss) | (12,128) | ||||||||
Share of profit (losses) from investment accounted for using the equity method | $ (2,426) |
LONG-TERM INVESTMENT (Detail Te
LONG-TERM INVESTMENT (Detail Textuals) - A-Best Wire Harness & Components Co., Ltd. - USD ($) $ in Millions | Jan. 15, 2019 | May 24, 2019 | Jun. 30, 2019 |
Related Party Transaction [Line Items] | |||
Percentage of equity method investment | 20.00% | ||
Mr. Ing-Ming Lai | |||
Related Party Transaction [Line Items] | |||
Issuance of common stock | $ 10 | $ 10 | |
Percentage of equity method investment | 20.00% | 20.00% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Detail Textuals) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | ||||||
Net sales to related parties | $ 9,309 | $ 295,528 | $ 180,367 | $ 397,065 | $ 1,241,329 | $ 1,506,097 |
Accounts receivable - related parties | 1,146,045 | 1,146,045 | 1,365,321 | 786,181 | ||
Advances outstanding to shareholders | 76,435 | $ 76,435 | $ 147,281 | 97,573 | ||
Interest rate of outstanding balances | 0.00% | 0.00% | ||||
Due of written notice by officer and shareholder | 30 years | 30 days | ||||
EOS Trading Co., Ltd. | ||||||
Related Party Transaction [Line Items] | ||||||
Net sales to related parties | $ 0 | 371,043 | ||||
Accounts receivable - related parties | 0 | 0 | ||||
EOS Venture International Pte Ltd. | ||||||
Related Party Transaction [Line Items] | ||||||
Net sales to related parties | $ 0 | 3,049 | 4,010 | 365,815 | ||
Accounts receivable - related parties | 2,488 | 2,488 | 101,488 | 224,203 | ||
Fortune King (HK) Trading Limited | ||||||
Related Party Transaction [Line Items] | ||||||
Net sales to related parties | 180,367 | $ 394,016 | 1,235,203 | 582,973 | ||
Accounts receivable - related parties | $ 1,143,557 | $ 1,143,557 | 1,263,833 | 561,978 | ||
Able Vision Ltd. | ||||||
Related Party Transaction [Line Items] | ||||||
Net sales to related parties | 0 | 186,266 | ||||
Accounts receivable - related parties | $ 0 | $ 0 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current income tax | |||||
U.S. | $ 0 | $ 0 | $ 0 | $ 0 | |
Taiwan | 0 | 25,295 | 17,795 | 39,708 | |
PRC | 0 | 0 | |||
Sub total | 0 | 25,295 | 17,795 | 39,708 | |
Deferred income tax - U.S. | |||||
Deferred tax assets for NOL carryforwards | $ (25,320) | (3,523) | (25,320) | (30,245) | (17,096) |
Valuation allowance | 25,320 | 3,523 | 25,320 | 30,245 | 17,096 |
Net changes in deferred income tax (benefit) | 0 | 0 | 0 | 0 | 0 |
Total provision income tax | $ 25,295 | $ 0 | $ 25,295 | $ 17,795 | $ 39,708 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
U.S. statutory income tax rate | 21.00% | 21.00% | 21.00% | 34.00% |
Taiwan unified income tax rate | (20.00%) | (20.00%) | 20.00% | 17.00% |
Provisional remeasurement of deferred taxes (U.S.) | 0.00% | (13.00%) | ||
PRC standard EIT rate | 25.00% | |||
Changes in valuation allowance | (66.00%) | (41.00%) | (21.00%) | (21.00%) |
Other | 0.00% | 0.00% | (18.00%) | (13.00%) |
Effective combined income tax rate | 0.00% | 0.00% | 2.00% | 4.00% |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | |||
Net operating loss carryforwards | $ 114,569 | $ 111,556 | $ 81,311 |
Less: Valuation allowance | (114,569) | (111,556) | (81,311) |
Deferred tax assets, net | $ 0 | $ 0 | $ 0 |
INCOME TAXES (Detail Textuals)
INCOME TAXES (Detail Textuals) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax [Line Items] | ||||
Operating loss carryforwards | $ 545,566 | $ 531,218 | ||
Valuation allowance percentage | 100.00% | 100.00% | ||
U.S. statutory income tax rate | 21.00% | 21.00% | 21.00% | 34.00% |
Net effect of discrete tax expenses (benefit) | $ 0 | $ 0 | ||
Taiwan unified income tax rate | (20.00%) | (20.00%) | 20.00% | 17.00% |
Decrease in the undistributed earning tax | 5.00% | 10.00% | ||
PRC standard EIT rate | 25.00% | |||
Previous Tax Year | ||||
Income Tax [Line Items] | ||||
U.S. statutory income tax rate | 35.00% | |||
Current Tax Year | ||||
Income Tax [Line Items] | ||||
U.S. statutory income tax rate | 21.00% |
COMMITMENT (Details)
COMMITMENT (Details) | Dec. 31, 2018USD ($) |
December 31, | |
2019 | $ 8,515 |
Total | $ 8,515 |
COMMITMENT (Detail Textuals)
COMMITMENT (Detail Textuals) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Expiration date of lease agreement | December 2019 |