Document Entity Information
Document Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Apr. 12, 2021 | Jun. 29, 2020 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | EOS INC. | ||
Entity Central Index Key | 0001651958 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 74,122,997 | ||
Entity Public Float | $ 45 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2020 | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | No | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Interactive Data Current | Yes | ||
Entity Voluntary Filers | No | ||
Entity Ex Transition Period | false | ||
Entity Shell Company | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 122,482 | $ 295,594 |
Accounts receivable | 175,766 | 2,177,124 |
Inventory, net | 449,227 | 10,541 |
Advance to suppliers | 191,633 | 317,280 |
Prepaid expenses and other current assets | 26,459 | 19,149 |
Total current assets | 965,567 | 2,819,688 |
Property and equipment, net | 8,175 | 7,719 |
Operating lease right-of-use assets | 34,979 | |
Security deposits | 1,113,010 | 127,534 |
Long-term investment | 20,751 | |
Total Assets | 2,086,752 | 3,010,671 |
Current Liabilities | ||
Accounts payable | 18,415 | 2,045 |
Accrued expenses | 81,359 | 74,281 |
Due to shareholders | 107,791 | 96,114 |
Income tax payable | 105,969 | 25,837 |
Other current liabilities | 250,000 | |
Operating lease liabilities - current | 0 | 23,417 |
Total current liabilities | 563,534 | 221,694 |
Long-term loan | 166,985 | |
Operating lease liabilities - noncurrent | 0 | 11,562 |
Total liabilities | 730,519 | 233,256 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Common stock, $0.001 par value; 75,000,000 shares authorized, 74,122,997 shares issued and outstanding as of December 31, 2020 and December 31, 2019 | 74,123 | 74,123 |
Additional paid-in capital | 112,425 | 112,425 |
Retained earnings | 1,058,090 | 2,577,898 |
Accumulated other comprehensive income | 87,051 | 12,969 |
Total stockholders' equity | 1,331,689 | 2,777,415 |
Noncontrolling Interest | 24,544 | |
Total Equity | 1,356,233 | 2,777,415 |
Total Liabilities and Stockholders' Equity | $ 2,086,752 | $ 3,010,671 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 1 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock shares issued | 74,122,997 | 74,122,997 |
Common stock, shares outstanding | 74,122,997 | 74,122,997 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||
Net sales | $ 563,751 | $ 2,289,543 |
Cost of sales | 81,717 | 275,463 |
Gross profit | 482,034 | 2,014,080 |
Selling, general and administrative expenses | 1,913,683 | 905,822 |
Income (loss) from operations | (1,431,649) | 1,108,258 |
Other income (expense) | ||
Interest income (expense) | (339) | 74 |
Other income (expense) | 2,428 | 18 |
Gain (loss) on foreign currency exchange | 11,152 | (14,908) |
Gain (loss) on investment in equity securities | (20,750) | (11,675) |
Total other income (expense) | (7,509) | (26,491) |
Income (loss) before income tax provision | (1,439,158) | 1,081,767 |
Income tax provision | 92,357 | 0 |
Net income (loss) | (1,531,515) | 1,081,767 |
Other Comprehensive Income (Loss): | ||
Net income (loss) attributable to non-controlling interests | (11,707) | |
Net income (loss) attributable to EOS and subsidiaries | (1,519,808) | 1,081,767 |
Foreign currency translation adjustment, net of tax | 76,381 | 24,434 |
Comprehensive income (loss) | $ (1,455,134) | $ 1,106,201 |
Net income per share: | ||
Basic and diluted (in dollars per share) | $ 0 | $ 0.02 |
Weighted average number of common shares: | ||
Basic and diluted (in shares) | 74,122,997 | 70,177,792 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling interest | Total |
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] | ||||||
Common shares issued in exchange for investment in equity securities (Shares) | 10,000,000 | |||||
Common shares issued in exchange for investment in equity securities | $ 10,000 | 22,425 | 32,425 | |||
Foreign currency translation adjustment | 24,434 | 24,434 | ||||
Net Income (loss) | 1,081,767 | 1,081,767 | ||||
Balance at Dec. 31, 2019 | $ 74,123 | 112,425 | 2,577,898 | 12,969 | 2,777,415 | |
Balance (in shares) at Dec. 31, 2019 | 74,122,997 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | ||||||
Contributions from noncontrolling interests | $ 33,952 | 33,952 | ||||
Foreign currency translation adjustment | 74,082 | 2,299 | 76,381 | |||
Net Income (loss) | (1,519,808) | (11,707) | (1,531,515) | |||
Balance at Dec. 31, 2020 | $ 74,123 | $ 112,425 | $ 1,058,090 | $ 87,051 | $ 24,544 | $ 1,356,233 |
Balance (in shares) at Dec. 31, 2020 | 74,122,997 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flows from Operating Activities | ||
Net income (loss) | $ (1,531,515) | $ 1,081,767 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation | 2,269 | 1,916 |
Loss on investment in equity securities | 20,750 | 11,675 |
Loss (gain) on foreign currency exchange | (11,152) | 14,908 |
Stock-based compensation | 0 | 0 |
Changes in assets and liabilities: | ||
Decrease (increase) in accounts receivable | 2,021,794 | (344,219) |
Decrease (increase) in inventory | (420,468) | (3,074) |
Decrease (increase) in advance to suppliers | 139,772 | (282,115) |
Decrease (increase) in security deposits and other assets | (937,531) | (111,794) |
Increase (decrease) in accounts payable | 15,483 | (44,417) |
Increase (decrease) in accrued expenses | 2,208 | 6,273 |
Increase (decrease) in income tax payable | 74,792 | (13,561) |
Increase (decrease) in due to shareholders | (52,183) | |
Increase (decrease) in other current liabilities | 250,000 | |
Net cash used in operating activities | (373,598) | 265,176 |
Cash flows from Investing activities | ||
Purchase of equipment | (2,218) | (1,818) |
Net cash used in investing activities | (2,218) | (1,818) |
Cash flows from Financing activities | ||
Proceeds from (Repayment to) related party payable | 6,772 | |
Proceeds from (Repayment to) borrowings | 159,242 | |
Proceeds from investments by noncontrolling interests in subsidiary | 0 | |
Net cash provided by financing activities | 166,014 | |
Effect of exchange rate changes on cash and cash equivalents | 36,690 | (3,894) |
Net decrease in cash and cash equivalents | (173,112) | 259,464 |
Cash and Cash Equivalents | ||
Beginning | 295,594 | 36,130 |
Ending | 122,482 | 295,594 |
Cash paid during the periods for: | ||
Interest | $ 0 | 0 |
Income taxes | 8,125 | |
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 | 12 Months Ended |
Dec. 31, 2020 | |
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 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. 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 purifiers in China. As of the date of this report, Maosong has a registered capital of USD $100,000, but no capital has actually been paid into Maosong. Principles of Consolidation The accompanying consolidated financial statements, including the accounts of EOS Inc. and its wholly owned subsidiaries in Taiwan, British Virgin Islands, and People’s Republic of China, have been prepared in conformity with accounting principles generally accepted in the United States of America. Since the Company and Emperor Star are entities under common control prior to the acquisition of Emperor Star, the transaction is accounted for as a restructuring transaction. All assets and liabilities of Emperor Star were transferred to the Company at their respective carrying amounts on the date of transaction. The Company has recast prior period financial statements to reflect the conveyance of Emperor Star’s common shares as if the restructuring transaction had occurred as of the earliest date of the consolidated financial statements. All material intercompany accounts, transactions, and profits have been eliminated in consolidation. The nature of and effects on earnings per share (EPS) of nonrecurring intra-entity transactions involving long-term assets and liabilities is not required to be eliminated and EPS amounts have been recast to include the earnings (or losses) of the transferred net assets. The functional currency of the subsidiaries in Taiwan is the New Taiwan dollars and the subsidiary in People’s Republic of China is the Chinese Yuan, or Renminbi; however, the accompanying consolidated financial statements have been translated and presented in United States Dollars ($). In the accompanying 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 $2,269 and $1,916 for the years ended December 31, 2020 and 2019, 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 December 31, 2020 and 2019. 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 the Company’s 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”. Software sales: The Company does not develop the software products on its own. When the Company receives a purchase order from the customer, the Company would engage with the third-party software company to customize and develop the software products. The Company recognizes software revenues upon completion of the installation and testing, and transfer the control of the software products to the customer. Software revenues are recorded at the fixed sales price, or “transaction price”, pursuant to the sales contracts. The Company may also charge the customer maintenance service fees on a straight-line basis over the service period pursuant to the sales contract. The Company concluded that the performance obligation for the maintenance service is distinct. Therefore, such maintenance service revenue can be separated from other elements in the arrangement. 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, 2020: Nutrition supplement $ 57,154 Water purifier machine 321,808 Automobile carbon reduction machine 143,987 Software 40,802 Total $ 563,751 Revenue by Geography For the year ended December 31, 2020: Asia Pacific $ 563,751 Total $ 563,751 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 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 retained earnings. As of December 31, 2020, there was no operating lease right-of-use assets and operating lease liabilities. 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 $22,840 and $39,645 for the year ended December 31, 2020 and 2019, 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 $5,377 and $7,051 for the years ended December 31, 2020 and 2019, 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 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 year ended December 31, 2020 and 2019, the Company does not have any outstanding common stock equivalents; therefore, a separate computation of diluted income 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, 2020, two customers accounted for more than 10% of the Company’s total revenues, representing approximately 67% and 18% of its total revenues, and 55% and 30% of accounts receivable in aggregate at December 31, 2020. Customer Net sales for the year ended December 31, 2020 Accounts receivable balance as of December 31, 2020 A $ 378,458 $ 79,206 B 100,478 — C — 43,177 For the year ended December 31, 2019, one customer accounted for more than 10% of the Company’s total revenues, representing approximately 95% of its total revenues, and 99% of accounts receivable in aggregate at December 31, 2019. Customer Net sales for the year ended December 31, 2019 Accounts receivable balance as of December, 2019 A $ 2,171,766 $ 2,151,192 Suppliers For the year ended December 31, 2020, four suppliers accounted for more than 10% of the Company’s total net purchase, representing approximately 39%, 24%, 23% and 10% of total net purchase, and 0%, 98%, 0% and 0% of accounts payable in aggregate at December 31, 2020, respectively: Supplier Net purchase for the year ended December 31, 2020 Accounts payable balance as of December 31, 2020 A $ 191,514 $ — B $ 119,514 $ 18,079 C $ 114,395 $ — D $ 51,623 $ — For the year ended December 31, 2019, four suppliers accounted for more than 10% of the Company’s total net purchase, representing approximately 34%, 27%, 19% and 10% of total net purchase, and 0% of accounts payable in aggregate at December 31, 2019, respectively: Supplier Net purchase for the year ended December 31, 2019 Accounts payable balance as of December 31, 2019 A $ 96,743 $ — B $ 74,819 $ — C $ 52,505 $ — D $ 28,400 $ — * Related party transactions (See Note 5). 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 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 consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes, as part of its initiative to reduce complexity in accounting standards. The amendments in the ASU are effective for fiscal years beginning after December 15, 2020, including interim periods therein. Early adoption of the standard is permitted, including adoption in interim or annual periods for which financial statements have not yet been issued. The Company is currently evaluating the effect, if any, that the ASU will have on its consolidated financial statements. |
LEASE
LEASE | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
LEASE | Note 2. LEASE The Company has no finance leases. The Company has terminated an office facility lease with Wanhong Enterprise Co., Ltd on September 28, 2020. The Company has entered into new lease agreement with Xiuling Huang on September 29, 2020 for the period of approximately 9 months. As of 31 December, 2020, operating lease expense was $24,304. Future lease payable was $1,969. |
LONG-TERM INVESTMENT
LONG-TERM INVESTMENT | 12 Months Ended |
Dec. 31, 2020 | |
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 “Investment Cooperation 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. On March 2, 2020, the Company, A-Best, and Ing-Ming Lai, (collectively, the “Parties”) entered into a strategic alliance agreement (the “Strategic Alliance Agreement”), pursuant to which the Parties redefined their cooperation with respect to the sales and distribution of A-Best’s micro-ceramic speakers. In accordance with the Strategic Alliance Agreement, A-Best, Mr. Ing-Ming Lai and the Company terminated the Investment Cooperation Agreement dated January 15, 2019 entered by and among the Parties and as a result the Company agreed to return 20% of the equity interest in A-Best to Mr. Ing-Ming Lai, which was valued at approximately $33,411 by the Parties. Furthermore, subject to the terms and conditions of the Strategic Alliance Agreement, A-Best has granted the Company the exclusive sale and distribution right of A-Best’s micro-ceramic speakers in the world for one (1) year (the “Term”), which may be renewed with mutual consent of the Parties two months prior to the expiration of the Term, while A-Best retains its own right to sell and distribute the micro-ceramic speakers on its own. In consideration for the exclusive distribution right of A-Best’s speakers under the Strategic Alliance Agreement, the Company agreed to have A-Best keep the Company’s 10,000,000 shares of common stock issued under the Investment Cooperation Agreement and the Company may keep the revenue and profits generated from the sale of A-Best speakers until the total revenue from such speakers reaches $15 million U.S. dollars. On April 22, 2020, the Company returned 20% equity interest in A-Best to Mr. Ing-Ming Lai pursuant to the Strategic Alliance Agreement. As of April 22, 2020, the Company holds 20% equity interest in A-Best and uses equity method to account 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. For the period from January 1, 2020, to April 22, 2020, the share of loss from investment accounted for using equity method was $2,848. As a result of the return of equity interest, the Company also recognized loss on investment in equity securities of $17,902 for the same period. Summarized financial information for the Company’s equity method investee, A-Best, is as follows: Balance Sheets April 22, December 31, 2020 2019 Current assets $ 38,303 $ 42,818 Noncurrent assets 779 857 Current liabilities 1,406,166 1,372,351 Shareholders' deficit (1,367,084 ) (1,328,676 ) Statement of Operation For the period from January 1, 2020 to April 22, 2020. Net sales $ 854 Gross profit 498 Net loss (14,240 ) Share of loss from investment accounted for using equity method (2,848 ) On May 26, 2020, EOS Inc. increased its investment in Emperor Star by $134,004 (NTD$4,000,000). The Company also received the contributions to Emperor Star from non-controlling interests in the amount of $33,398 (NTD$1,000,000). As a result, the Company owns 83% equity interest of Emperor Star as of December 31, 2020 , which is no longer a wholly-owned subsidiary. |
SECURITY DEPOSITS
SECURITY DEPOSITS | 12 Months Ended |
Dec. 31, 2020 | |
Security Deposits [Abstract] | |
SECURITY DEPOSITS | Note 4. SECURITY DEPOSITS On November 21, 2019, the Company and Shuang Hua International Culture Media Co, Ltd. (“Shuang Hua”), a corporation formed under laws of Taiwan, entered into an exclusive copyright and distribution agreement (the “Agreement”), pursuant to which, subject to the terms and condition therein, Shuang Hua granted the Company an exclusive right to produce, market, distribute and sell the bilingual films and electronic books of which the copyrights owned by Shuang Hua. In accordance to the agreement, the Company shall pay Shuang Hua a refundable deposit of in the aggregate amount of $2,894,000, before December 31, 2021. As of December 31, 2020 and December 31, 2019, the Company has paid $1,030,000 and $120,000 to Shuang Hua, respectively, and are recorded as security deposits. Due to Covid-19 in 2020, the Company has not started its business plan with the exclusive copyright and distribution agreement. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | Note 5. RELATED PARTY TRANSACTIONS Related party – Sales The Company had sales to Fortune King (HK) Trading Limited, (“Fortune King”), a Hong Kong company. As of June 30, 2019, Fortune King had been a related party of the Company because the founder and officer of Fortune King was a shareholder of the Company. On or about June 30, 2019, the founder and officer of Fortune King transferred her equity interest in the Company and therefore Fortune King is no longer a related party to the Company. Sales to Fortune King amounted to $378,458 and $ 2,171,766 for the years ended December 31, 2020 and 2019, respectively. As of December 31, 2020 and December 31, 2020, accounts receivable from Fortune King was $79,206 and $ 2,151,192, respectively. Due to shareholders The Company has advanced funds from its directors and shareholders for working capital purposes. As of December 31, 2020 and December 31, 2019 there were $107,791 and $96,114 advance outstanding, respectively. The Company has agreed that the outstanding balances bear 0% interest rate and are due upon demand after thirty days of written notice by the director and shareholder. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders Equity Note Abstract | |
STOCKHOLDERS' EQUITY | Note 6. STOCKHOLDERS’ EQUITY On June 1, 2020, the Company and Fortune King entered into a sales collaboration agreement (the “Sales Collaboration Agreement”), pursuant to which, subject to the terms and condition therein, Fortune King agreed to provide promotional and marketing service of the Company’s products within six years from January 2020, to December 2025. Fortune King is obligated to perform such service regardless of whether the Company sells products to Fortune King during the designated period. In accordance with the Sales Collaboration Agreement and in consideration for the service provided by Fortune King, the Company shall issue 3,000,000 shares of common stock to Fortune King for the promotional and marketing service of $1,500,000. The shares were issued on December 29, 2020. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Note 7. 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, 2020, the Company had net operating loss carry forwards of $1,531,515 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 year ended December 31, 2020. Provision for income tax consists of the following: For the Years Ended December 31, 2020 2019 Current income tax U.S. $ — $ — Taiwan 92,357 — PRC — — Sub total 92,357 — Deferred income tax U.S. Deferred tax assets for NOL carryforwards (59,256 ) (4,521 ) Valuation allowance 59,256 4,521 Net changes in deferred income tax (benefit) — — Total income tax provision $ 92,357 $ — The following is a reconciliation of the statutory tax rate to the effective tax rate: For the Year s Ended December 31, 2020 2019 U.S. statutory income tax rate 21 % 21 % Taiwan unified income tax rate 20 % 20 % PRC standard EIT rate 25 % 25 % Changes in valuation allowance (46 )% (66 )% Other (20 )% — % Effective combined income tax rate 0 % 0 % Significant components of the Company’s deferred taxes as of December 31, 2020 and December 31, 2019 were as follows: December 31, December 31, 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 177,784 $ 116,077 Less: Valuation allowance (177,784 ) (116,077 ) Deferred tax assets, net $ — $ — |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure Abstract | |
COMMITMENTS AND CONTINGENCIES | Note 8. COMMITMENTS AND CONTINGENCIES Sales Collaboration Agreement On June 1, 2020, the Company and Fortune King entered into a sales collaboration agreement (the “Sales Collaboration Agreement”), pursuant to which, subject to the terms and condition therein, Fortune King agreed to provide promotional and marketing service of the Company’s products within six years from January 2020, to December 2025. Fortune King is obligated to perform such service regardless of whether the Company sells products to Fortune King during the designated period. In accordance with the Sales Collaboration Agreement and in consideration for the service provided by Fortune King, the Company shall issue 3,000,000 shares of common stock to Fortune King for the promotional and marketing service of $1,500,000. The shares were issued on December 29, 2020. The Company recognized the stock-based compensation of marketing expenses based on quarterly basis, with a quarterly marketing expenses of $62,500, total up have 24 quarters. Copyright and Distribution Agreement On November 21, 2019, the Company and Shuang Hua International Culture Media Co, Ltd. (“Shuang Hua”), a corporation formed under laws of Taiwan, entered into an exclusive copyright and distribution agreement (the “Agreement”), pursuant to which, subject to the terms and condition therein, Shuang Hua granted the Company an exclusive right to produce, market, distribute and sell the bilingual films and electronic books of which the copyrights owned by Shuang Hua. In accordance to the agreement, the Company shall pay Shuang Hua a refundable deposit of in the aggregate amount of $2,894,000, before December 31, 2021. As of December 31, 2020, the Company has paid $1,030,000 to Shuang Hua. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Note 9. SUBSEQUENT EVENTS Reversed stock split The Company's board of directors and stockholders authorized a reverse stock split of its outstanding common stock at a ratio of 1-for-1000 without any change in the par value per share which will become effective upon approval by FINRA. Return of EOSS shares On April 12, 2021, the Company, A-Best, and Ing-Ming Lai, a Taiwanese individual and the majority shareholder of A-Best, entered into a termination agreement (the “Termination Agreement”) to terminate the agreement of Strategic Alliance Agreement (the “Strategic Alliance Agreement”) dated March 2, 2020. In the agreement, Ing-Ming Lai has proceed to effect a return of a total of 10,000,000 shares in EOS Inc, back to the Company. 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, 2020 have been incorporated into these consolidated financial statements and there are no other 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) | 12 Months Ended |
Dec. 31, 2020 | |
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |
Organization | 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. 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 purifiers in China. As of the date of this report, Maosong has a registered capital of USD $100,000, but no capital has actually been paid into Maosong. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements, including the accounts of EOS Inc. and its wholly owned subsidiaries in Taiwan, British Virgin Islands, and People’s Republic of China, have been prepared in conformity with accounting principles generally accepted in the United States of America. Since the Company and Emperor Star are entities under common control prior to the acquisition of Emperor Star, the transaction is accounted for as a restructuring transaction. All assets and liabilities of Emperor Star were transferred to the Company at their respective carrying amounts on the date of transaction. The Company has recast prior period financial statements to reflect the conveyance of Emperor Star’s common shares as if the restructuring transaction had occurred as of the earliest date of the consolidated financial statements. All material intercompany accounts, transactions, and profits have been eliminated in consolidation. The nature of and effects on earnings per share (EPS) of nonrecurring intra-entity transactions involving long-term assets and liabilities is not required to be eliminated and EPS amounts have been recast to include the earnings (or losses) of the transferred net assets. The functional currency of the subsidiaries in Taiwan is the New Taiwan dollars and the subsidiary in People’s Republic of China is the Chinese Yuan, or Renminbi; however, the accompanying consolidated financial statements have been translated and presented in United States Dollars ($). In the accompanying 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 | 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. |
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. |
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. |
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. |
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 $2,269 and $1,916 for the years ended December 31, 2020 and 2019, 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 December 31, 2020 and 2019. |
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 the Company’s 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”. Software sales: The Company does not develop the software products on its own. When the Company receives a purchase order from the customer, the Company would engage with the third-party software company to customize and develop the software products. The Company recognizes software revenues upon completion of the installation and testing, and transfer the control of the software products to the customer. Software revenues are recorded at the fixed sales price, or “transaction price”, pursuant to the sales contracts. The Company may also charge the customer maintenance service fees on a straight-line basis over the service period pursuant to the sales contract. The Company concluded that the performance obligation for the maintenance service is distinct. Therefore, such maintenance service revenue can be separated from other elements in the arrangement. 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, 2020: Nutrition supplement $ 57,154 Water purifier machine 321,808 Automobile carbon reduction machine 143,987 Software 40,802 Total $ 563,751 Revenue by Geography For the year ended December 31, 2020: Asia Pacific $ 563,751 Total $ 563,751 |
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 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 retained earnings. As of December 31, 2020, there was no operating lease right-of-use assets and operating lease liabilities. 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 $22,840 and $39,645 for the year ended December 31, 2020 and 2019, 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 $5,377 and $7,051 for the years ended December 31, 2020 and 2019, 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. |
Net Income Per Share | 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 year ended December 31, 2020 and 2019, the Company does not have any outstanding common stock equivalents; therefore, a separate computation of diluted income 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. |
Concentration of Credit Risk | Concentration of Credit Risk Cash and cash equivalents Customers For the year ended December 31, 2020, two customers accounted for more than 10% of the Company’s total revenues, representing approximately 67% and 18% of its total revenues, and 55% and 30% of accounts receivable in aggregate at December 31, 2020. Customer Net sales for the year ended December 31, 2020 Accounts receivable balance as of December 31, 2020 A $ 378,458 $ 79,206 B 100,478 — C — 43,177 For the year ended December 31, 2019, one customer accounted for more than 10% of the Company’s total revenues, representing approximately 95% of its total revenues, and 99% of accounts receivable in aggregate at December 31, 2019. Customer Net sales for the year ended December 31, 2019 Accounts receivable balance as of December, 2019 A $ 2,171,766 $ 2,151,192 Suppliers For the year ended December 31, 2020, four suppliers accounted for more than 10% of the Company’s total net purchase, representing approximately 39%, 24%, 23% and 10% of total net purchase, and 0%, 98%, 0% and 0% of accounts payable in aggregate at December 31, 2020, respectively: Supplier Net purchase for the year ended December 31, 2020 Accounts payable balance as of December 31, 2020 A $ 191,514 $ — B $ 119,514 $ 18,079 C $ 114,395 $ — D $ 51,623 $ — For the year ended December 31, 2019, four suppliers accounted for more than 10% of the Company’s total net purchase, representing approximately 34%, 27%, 19% and 10% of total net purchase, and 0% of accounts payable in aggregate at December 31, 2019, respectively: Supplier Net purchase for the year ended December 31, 2019 Accounts payable balance as of December 31, 2019 A $ 96,743 $ — B $ 74,819 $ — C $ 52,505 $ — D $ 28,400 $ — * Related party transactions (See Note 5). |
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. |
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. |
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 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 consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes, as part of its initiative to reduce complexity in accounting standards. The amendments in the ASU are effective for fiscal years beginning after December 15, 2020, including interim periods therein. Early adoption of the standard is permitted, including adoption in interim or annual periods for which financial statements have not yet been issued. The Company is currently evaluating the effect, if any, that the ASU will have on its consolidated financial statements. |
NATURE OF OPERATIONS AND SUMM_3
NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |
Schedule of revenue by major products | Revenue by Major Products For the year ended December 31, 2020: Nutrition supplement $ 57,154 Water purifier machine 321,808 Automobile carbon reduction machine 143,987 Software 40,802 Total $ 563,751 |
Schedule of revenue by geography | Revenue by Geography For the year ended December 31, 2020: Asia Pacific $ 563,751 Total $ 563,751 |
Customer concentration risk | |
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |
Schedule of concentration of credit risk | Customer Net sales for the year ended December 31, 2020 Accounts receivable balance as of December 31, 2020 A $ 378,458 $ 79,206 B 100,478 — C — 43,177 Customer Net sales for the year ended December 31, 2019 Accounts receivable balance as of December, 2019 A $ 2,171,766 $ 2,151,192 |
Supplier concentration risk | |
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |
Schedule of concentration of credit risk | Supplier Net purchase for the year ended December 31, 2020 Accounts payable balance as of December 31, 2020 A $ 191,514 $ — B $ 119,514 $ 18,079 C $ 114,395 $ — D $ 51,623 $ — Supplier Net purchase for the year ended December 31, 2019 Accounts payable balance as of December 31, 2019 A $ 96,743 $ — B $ 74,819 $ — C $ 52,505 $ — D $ 28,400 $ — |
LONG-TERM INVESTMENT (Tables)
LONG-TERM INVESTMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Long-term Investments [Abstract] | |
Schedule of summarized financial information of equity method investee | Balance Sheets April 22, December 31, 2020 2019 Current assets $ 38,303 $ 42,818 Noncurrent assets 779 857 Current liabilities 1,406,166 1,372,351 Shareholders' deficit (1,367,084 ) (1,328,676 ) Statement of Operation For the period from January 1, 2020 to April 22, 2020. Net sales $ 854 Gross profit 498 Net loss (14,240 ) Share of loss from investment accounted for using equity method (2,848 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of provision for income tax | For the Years Ended December 31, 2020 2019 Current income tax U.S. $ — $ — Taiwan 92,357 — PRC — — Sub total 92,357 — Deferred income tax U.S. Deferred tax assets for NOL carryforwards (59,256 ) (4,521 ) Valuation allowance 59,256 4,521 Net changes in deferred income tax (benefit) — — Total income tax provision $ 92,357 $ — |
Schedule of reconciliation of statutory tax rate to effective tax rate | For the Year s Ended December 31, 2020 2019 U.S. statutory income tax rate 21 % 21 % Taiwan unified income tax rate 20 % 20 % PRC standard EIT rate 25 % 25 % Changes in valuation allowance (46 )% (66 )% Other (20 )% — % Effective combined income tax rate 0 % 0 % |
Schedule of components of the deferred taxes | December 31, December 31, 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 177,784 $ 116,077 Less: Valuation allowance (177,784 ) (116,077 ) Deferred tax assets, net $ — $ — |
NATURE OF OPERATIONS AND SUMM_4
NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Revenue by Major Products | |
Revenue | $ 563,751 |
Nutrition supplement | |
Revenue by Major Products | |
Revenue | 57,154 |
Water purifier machine | |
Revenue by Major Products | |
Revenue | 321,808 |
Automobile carbon reduction machine | |
Revenue by Major Products | |
Revenue | 143,987 |
Software | |
Revenue by Major Products | |
Revenue | $ 40,802 |
NATURE OF OPERATIONS AND SUMM_5
NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES (Details 1) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Revenue by Geography | |
Revenue | $ 563,751 |
Asia Pacific | |
Revenue by Geography | |
Revenue | $ 563,751 |
NATURE OF OPERATIONS AND SUMM_6
NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES (Details 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Nature Of Operations And Summary Of Accounting Policies [Line Items] | ||
Net sales | $ 563,751 | $ 2,289,543 |
Customer A | ||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | ||
Net sales | 378,458 | 2,171,766 |
Accounts receivable | 79,206 | $ 2,151,192 |
Customer B | ||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | ||
Net sales | 100,478 | |
Accounts receivable | 0 | |
Customer C | ||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | ||
Net sales | 0 | |
Accounts receivable | $ 43,177 |
NATURE OF OPERATIONS AND SUMM_7
NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES (Details 3) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Supplier A | ||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | ||
Purchase | $ 191,514 | $ 96,743 |
Accounts Payable | 0 | 0 |
Supplier B | ||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | ||
Purchase | 119,514 | 74,819 |
Accounts Payable | 18,079 | 0 |
Supplier C | ||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | ||
Purchase | 114,395 | 52,505 |
Accounts Payable | 0 | 0 |
Supplier D | ||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | ||
Purchase | 51,623 | 28,400 |
Accounts Payable | $ 0 | $ 0 |
NATURE OF OPERATIONS AND SUMM_8
NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES (Detail Textuals) | May 03, 2017USD ($) | Dec. 31, 2020USD ($)CustomerSupplier | Dec. 31, 2019USD ($)CustomerSupplier | Mar. 01, 2019USD ($) | Jan. 31, 2019USD ($) |
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||
Cash consideration to acquire equity interest | $ 30,562 | ||||
Depreciation expense | $ 2,269 | $ 1,916 | |||
Methods of depreciation | straight-line method | ||||
Estimated useful life of property and equipment | five years | ||||
Operating lease right-of-use assets | 34,979 | ||||
Advertising cost | $ 22,840 | 39,645 | |||
Amount of employee benefits | 5,377 | $ 7,051 | |||
Cash TCDIC insured limits | $ 13,916 | ||||
Shanghai Maosong Co., Ltd ("Maosong") | |||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||
Registered capital | $ 100,000 | ||||
Adoption of ASC 842 | |||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||
Operating lease right-of-use assets | $ 8,235 | ||||
Operating lease liabilities | $ 8,235 | ||||
Customers concentration risk | |||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||
Number of customers | Customer | 2 | 1 | |||
Customers concentration risk | Revenue | Customer A | |||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 67.00% | 95.00% | |||
Customers concentration risk | Revenue | Customer B | |||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 18.00% | ||||
Customers concentration risk | Accounts receivable | Customer A | |||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 55.00% | 99.00% | |||
Customers concentration risk | Accounts receivable | Customer B | |||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 30.00% | ||||
Supplier concentration risk | |||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||
Number of suppliers | Supplier | 4 | 4 | |||
Supplier concentration risk | Supplier A | Purchase | |||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 39.00% | 34.00% | |||
Supplier concentration risk | Supplier A | Accounts payable | |||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 0.00% | 0.00% | |||
Supplier concentration risk | Supplier B | Purchase | |||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 24.00% | 27.00% | |||
Supplier concentration risk | Supplier B | Accounts payable | |||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 98.00% | 0.00% | |||
Supplier concentration risk | Supplier C | Purchase | |||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 23.00% | 19.00% | |||
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 | 10.00% | 10.00% | |||
Supplier concentration risk | Supplier D | Accounts payable | |||||
Nature Of Operations And Summary Of Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 0.00% | 0.00% |
LEASE (Details Textuals)
LEASE (Details Textuals) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Leases [Abstract] | |
Operating lease expenses | $ 24,304 |
Future lease payable | $ 1,969 |
LONG-TERM INVESTMENT (Details)
LONG-TERM INVESTMENT (Details) - USD ($) | Dec. 31, 2020 | Apr. 22, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | |||
Current assets | $ 965,567 | $ 2,819,688 | |
Current liabilities | 563,534 | 221,694 | |
Shareholders' deficit | $ 1,331,689 | 2,777,415 | |
A-Best Wire Harness & Components Co., Ltd. | |||
Related Party Transaction [Line Items] | |||
Current assets | $ 38,303 | 42,818 | |
Noncurrent assets | 779 | 857 | |
Current liabilities | 1,406,166 | 1,372,351 | |
Shareholders' deficit | $ (1,367,084) | $ (1,328,676) |
LONG-TERM INVESTMENT (Details 1
LONG-TERM INVESTMENT (Details 1) - USD ($) | 4 Months Ended | 12 Months Ended | |
Apr. 22, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Net sales | $ 563,751 | $ 2,289,543 | |
Gross profit | 482,034 | 2,014,080 | |
Net income | (1,531,515) | $ 1,081,767 | |
A-Best Wire Harness & Components Co., Ltd. | |||
Related Party Transaction [Line Items] | |||
Net sales | $ 854 | ||
Gross profit | 498 | ||
Net income | (14,240) | ||
Share of loss from investment accounted for using equity method | $ 2,848 | $ (2,848) |
LONG-TERM INVESTMENT (Detail Te
LONG-TERM INVESTMENT (Detail Textuals) | 1 Months Ended | 2 Months Ended | 4 Months Ended | 12 Months Ended | |||||
May 26, 2020TWD ($) | May 26, 2020USD ($) | Mar. 02, 2020USD ($) | Apr. 22, 2020USD ($) | Dec. 31, 2020USD ($)shares | May 26, 2020USD ($) | Dec. 31, 2019shares | May 24, 2019shares | Jan. 15, 2019shares | |
Related Party Transaction [Line Items] | |||||||||
Common stock shares issued | shares | 74,122,997 | 74,122,997 | |||||||
Revenue | $ 563,751 | ||||||||
Contributions From Noncontrolling Interests | 33,952 | ||||||||
A-Best Wire Harness & Components Co., Ltd. | |||||||||
Related Party Transaction [Line Items] | |||||||||
Share of loss from investment accounted for using equity method | $ (2,848) | $ 2,848 | |||||||
Equity Securities, FV-NI, Realized Loss | $ 17,902 | ||||||||
A-Best Wire Harness & Components Co., Ltd. | Mr. Ing-Ming Lai | |||||||||
Related Party Transaction [Line Items] | |||||||||
Common stock shares issued | shares | 10,000,000 | 10,000,000 | |||||||
Percentage of equity method investment | 20.00% | 20.00% | |||||||
Emperor Star | |||||||||
Related Party Transaction [Line Items] | |||||||||
Percentage of equity method investment | 83.00% | 83.00% | |||||||
Equity Method Investments | $ 4,000,000 | $ 134,004 | |||||||
Contributions From Noncontrolling Interests | $ 1,000,000 | $ 33,398 | |||||||
Strategic Alliance Agreement | A-Best Wire Harness & Components Co., Ltd. | |||||||||
Related Party Transaction [Line Items] | |||||||||
Revenue | $ 15,000,000 | ||||||||
Strategic Alliance Agreement | A-Best Wire Harness & Components Co., Ltd. | Mr. Ing-Ming Lai | |||||||||
Related Party Transaction [Line Items] | |||||||||
Returned percentage of equity method investment | 20.00% | ||||||||
Agree to return amount of equity interest | $ 33,411 | ||||||||
Percentage of equity method investment | 20.00% | 20.00% |
SECURITY DEPOSITS (Detail Textu
SECURITY DEPOSITS (Detail Textuals) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 21, 2019 |
Security Deposits [Line Items] | |||
Security Deposit | $ 1,113,010 | $ 127,534 | |
Shuang Hua International Culture Media Co, Ltd | |||
Security Deposits [Line Items] | |||
Security Deposit | $ 1,030,000 | $ 120,000 | |
Exclusive copyright and distribution agreement | Shuang Hua International Culture Media Co, Ltd | |||
Security Deposits [Line Items] | |||
Security Deposit | $ 2,894,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Detail Textuals) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | ||
Advances outstanding to shareholders | $ 107,791 | $ 96,114 |
Fortune King (HK) Trading Limited | ||
Related Party Transaction [Line Items] | ||
Net sales to related parties | 378,458 | 2,171,766 |
Accounts receivable - related parties | $ 79,206 | $ 2,151,192 |
STOCKHOLDERS' EQUITY (Detail Te
STOCKHOLDERS' EQUITY (Detail Textuals) - Sales Collaboration Agreement - Fortune King (HK) Trading Limited | Jun. 01, 2020USD ($)shares |
Class of Stock [Line Items] | |
Number of common stock issued for promotional and marketing service | shares | 3,000,000 |
Amount of common stock issued for promotional and marketing service | $ | $ 1,500,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Current income tax | ||
U.S. | $ 0 | $ 0 |
Taiwan | 92,357 | 0 |
PRC | 0 | 0 |
Sub total | 92,357 | 0 |
Deferred income tax - U.S. | ||
Deferred tax assets for NOL carryforwards | (59,256) | (4,521) |
Valuation allowance | 59,256 | 4,521 |
Deferred tax assets, net | 0 | 0 |
Total income tax provision | $ 92,357 | $ 0 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
U.S. statutory income tax rate | 21.00% | 21.00% |
Taiwan unified income tax rate | 20.00% | 20.00% |
PRC standard EIT rate | 25.00% | 25.00% |
Changes in valuation allowance | (46.00%) | (66.00%) |
Other | (20.00%) | 0.00% |
Effective combined income tax rate | 0.00% | 0.00% |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 177,784 | $ 116,077 |
Less: Valuation allowance | (177,784) | (116,077) |
Deferred tax assets, net | $ 0 | $ 0 |
INCOME TAXES (Detail Textuals)
INCOME TAXES (Detail Textuals) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax [Line Items] | ||
Operating loss carryforwards | $ 1,531,515 | |
Valuation allowance percentage | 100.00% | |
Foreign statutory income tax rate | 20.00% | 20.00% |
Standard EIT rate | 25.00% | 25.00% |
Taiwan | ||
Income Tax [Line Items] | ||
Foreign statutory income tax rate | 20.00% | 17.00% |
Decrease in the undistributed earning tax | 5.00% | 10.00% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Detail Textuals) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 29, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 21, 2019 | |
Commitments And Contingencies [Line Items] | ||||
Security deposits | $ 1,113,010 | $ 127,534 | ||
Sales Collaboration Agreement | Fortune King (HK) Trading Limited | ||||
Commitments And Contingencies [Line Items] | ||||
Value of shares issued | $ 1,500,000 | |||
Number of shares issued | 3,000,000 | |||
Sales Collaboration Agreement | Fortune King (HK) Trading Limited | Marketing expense | ||||
Commitments And Contingencies [Line Items] | ||||
stock-based compensation of marketing expenses | 62,500 | |||
Shuang Hua International Culture Media Co, Ltd | ||||
Commitments And Contingencies [Line Items] | ||||
Security deposits | $ 1,030,000 | $ 120,000 | ||
Shuang Hua International Culture Media Co, Ltd | Copyright and Distribution Agreement | ||||
Commitments And Contingencies [Line Items] | ||||
Security deposits | $ 2,894,000 |
SUBSEQUENT EVENTS (Detail Textu
SUBSEQUENT EVENTS (Detail Textuals) - Subsequent event | Apr. 12, 2021shares |
Subsequent Event [Line Items] | |
Reversed stock split ratio | 1-for-1000 |
Number of share buy back in Ing-Ming Lai | 10,000,000 |