Mon Space Net (MSNI) 10-Q 20 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 20, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	MON SPACE NET INC.
Entity Central Index Key	1,670,538
Amendment Flag	false
Trading Symbol	MSNI
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		213,330,000

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 21,426	$ 65,700
Receivables - related party	331,613	1,599
Other current assets	142
Total current assets	353,181	67,299
Total assets	353,181	67,299
Current liabilities
Accounts payable and accrued liabilities	82,779	2,625
Note payable - related party	11,476	11,476
Due to related parties	13,149
Total current liabilities	107,404	14,101
Total liabilities	107,404	14,101
Stockholders' equity
Common stock, $0.001 par value, 1,000,000,000 authorized, 213,330,000 shares issued and outstanding	213,330	213,330
Additional paid-in capital	22,718	18,592
Retained earnings (Accumulated deficit)	2,374	(178,724)
Accumulated other comprehensive income	7,355
Total stockholders' equity	245,777	53,198
Total liabilities and stockholders' equity	$ 353,181	$ 67,299

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	213,330,000	213,330,000
Common stock, shares outstanding	213,330,000	213,330,000

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Revenue - related party	$ 357,547		$ 383,815
Operating expenses
General and administrative	81,778	3,039	126,744	21,256
Total operating expenses	81,778	3,039	126,744	21,256
Income (loss) from operations	275,769	(3,039)	257,071	(21,256)
Other expenses	(19)		(19)
Income before income tax	275,750	(3,039)	257,052	(21,256)
Provision for income tax	75,954		75,954
Net income (loss)	199,796	(3,039)	181,098	(21,256)
Other comprehensive income
Foreign currency translation adjustments	6,913		7,355
Comprehensive income (loss)	$ 206,709	$ (3,039)	$ 188,453	$ (21,256)
Net income (loss) per common share - basic and diluted	$ 0	$ 0	$ 0	$ 0
Weighted average number of common shares outstanding - basic and diluted	213,330,000	213,330,000	213,330,000	173,032,591

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ 181,098	$ (21,256)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Receivables - related party	(330,014)
Other current assets	(142)
Accounts payable	80,154	2,625
Net cash used in operating activities	(68,904)	(18,631)
CASH FLOWS FROM FINANCING ACTIVITIES
Capital contributions	4,126	18,592
Advances from related parties	13,149	201,476
Proceeds from sale of common stock		208,330
Net cash provided by financing activities	17,275	428,398
Effect of exchange rate changes on cash and cash equivalents	7,355
Net change in cash and cash equivalents	(44,274)	409,767
Cash and cash equivalents, beginning of period	65,700
Cash and cash equivalents, end of period	21,426	409,767
SUPPLEMENTAL CASH FLOWS DISCLOSURE
Cash paid for interest
Cash paid for income tax

Nature of Operations and Summar

Nature of Operations and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
Nature of Operations and Summary of Significant Accounting Policies [Abstract]
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company Mon Space Net, Inc (the “Company”) was incorporated in the State of Nevada on December 31, 2015. The Company plans to offer an online marketplace to sell products and services using a business to business to consumer model. On March 28, 2017, the Company incorporated MSNI (M) Sdn. Bhd. (“MSNI Malaysia”), a company formed under the laws of Malaysia, as a wholly owned subsidiary. The Company started generating revenue effective April 1, 2017 from the collaboration with Monspacemall Sdn Bhd for the e-commerce business. On September 25, 2017, the Company incorporated MSNI (HK) Limited (“MSNI HK”), a company formed under the laws of Hong Kong, as a wholly owned subsidiary. The Company had minimal operations since incorporation through the financial statement issuance date. Basis of Presentation The consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) in all material respects. Certain information and note disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been condensed or omitted from these statements pursuant to such rules and regulations and, accordingly, they do not include all the information and notes necessary for comprehensive financial statements and should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2016. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, MSNI (M) Sdn. Bhd., and MSNI (HK) Limited. Intercompany transactions and balances have been eliminated. Use of Estimates and Assumptions The preparation of consolidated financial statements in conformity with GAAP 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and on deposit at banking institutions. Balances held by the Company are not typically in excess of FDIC insured limits. As of September 30, 2017, all of the Company’s cash was deposited in two banks. Revenue Recognition Revenues consist of profit sharing revenues from a collaboration agreement with Monspacemall Sdn Bhd (“MSMSB”). The Company recognizes revenue when it receives the monthly invoice and reconciliation from MSMSB showing products shipped and all risks and rewards of ownership have been transferred to third-party customers. Income (Loss) Per Common Share Basic income (loss) per common share excludes dilution and is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted loss per common share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the net income of the entity. As of September 30, 2017, there are no outstanding dilutive securities. Foreign Currency An entity’s functional currency is the currency of the primary economic environment in which it operates and is generally the currency in which the business generates and expends cash. The Company has determined that the functional currency of the Company is U.S. Dollars. MSNI Malaysia, whose functional currency is the Malaysian Ringgit, and MSNI HK, whose functional currency is the Hong Kong Dollar, translate their assets and liabilities into U.S. dollars at the exchange rates in effect as of the balance sheet date. Revenues and expenses are translated into U.S. dollars at the average exchange rates for the year. Translation adjustments are included in accumulated other comprehensive income (loss), a separate component of equity. Foreign exchange gains and losses included in net income result from foreign exchange fluctuations on transactions denominated in a currency other than an entity’s functional currency. Income taxes An asset and liability approach is used for financial accounting and reporting for income taxes. Deferred income taxes arise from temporary differences between income tax and financial reporting and principally relate to recognition of revenue and expenses in different periods for financial and tax accounting purposes and are measured using currently enacted tax rates and laws. In addition, a deferred tax asset can be generated by net operating loss carry forwards. If it is more likely than not that some portion or all of a deferred tax asset will not be realized, a valuation allowance is recognized. Subsequent Events The Company has evaluated all transactions through the financial statement issuance date for subsequent event disclosure consideration.

Liquidity and Going Concern

Liquidity and Going Concern	9 Months Ended
	Sep. 30, 2017
Liquidity And Going Concern [Abstract]
LIQUIDITY AND GOING CONCERN	NOTE 2 – LIQUIDITY AND GOING CONCERN The Company generated revenue from the collaboration arrangement with a related party for the nine months ended September 30, 2017 and had retained earnings of $2,374 as of September 30, 2017. As of September 30, 2017, the Company had cash and cash equivalents of $21,426 and receivables from a related party of $331,613. We estimate that based on current plans and assumptions, our available working capital will be sufficient to satisfy our cash requirements under our present operating expectations for up to 12 months. However, the Company’s working capital resource significantly relies on the operation of a website controlled by a related party from a collaborative arrangement. Accordingly, the Company’s continuation as a going concern is also dependent on its ability to execute its operational plan to diversify its sources of cash flows from operations to meet its obligations and/or obtaining additional financing from its shareholders or other sources, as may be required. There can be no assurance that the necessary debt or equity financing will be available, or will be available on terms acceptable to our company.

Equity

Equity	9 Months Ended
	Sep. 30, 2017
Equity [Abstract]
EQUITY	NOTE 3 – EQUITY The Company is authorized to issue 1,000,000,000 shares of common stock. During March 2017, the Company recorded $4,126 in additional paid in capital for filing expenses paid on behalf of the Company from one of its directors, Low Koon Poh.

Income Tax

Income Tax	9 Months Ended
	Sep. 30, 2017
Income Tax [Abstract]
INCOME TAX	NOTE 4 – INCOME TAX For the nine months ended September 30, 2017 and 2016, the Company had income tax losses from U.S. and Hong Kong entities that may be applied against future taxable income. The potential tax benefit arising from these loss carryforwards are offset by a valuation allowance due to the uncertainty of profitable operations in the future. For the nine months ended September 30, 2017, MSNI Malaysia is subject income taxes under the tax laws of Malaysia. A resident company is taxed at an approximate rate of 24% if the chargeable income is in excess of MYR 500,000 in Malaysia. MSNI Malaysia accrued $75,954 of tax expenses estimated by the net income for the nine months ended September 30, 2017. The effective income tax provision for the nine months ended September 30, 2017 differed from the computed “expected” income tax expense with effective income tax rate of 35% in United States on income before income taxes for the following reasons: For the nine months ended September 30, 2017 Computed income tax provision at statutory tax rate of 35% $ 89,968 Foreign tax rate differential (34,204 ) Changes in allowance on deferred tax assets 20,190 Provision for income tax $ 75,954

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2017
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 5 – RELATED PARTY TRANSACTIONS Collaborative Arrangement In April 2017, the Company, through its wholly-owned subsidiary, MSNI Malaysia, entered into a collaboration agreement with MSMSB to develop, maintain and operate an e-commerce business. Lai Chai Suang, the Company’s Chief Executive Officer and Chief Financial Officer, is also a shareholder and director of MSMSB. MSMSB is responsible for the operation of the e-commerce platform and is also the principal in the end-customer product sales. MSMSB has the primary responsibility for order fulfillment, collection of receivables and handling of sales returns in all territories. MSNI Malaysia contributed a consumer database up to a maximum of 500,000 persons in exchange for the profit sharing arrangement in an amount equal to 50% of the net profits from the collaboration agreement, which is included in net revenue. On November 8, 2017, MSNI Malaysia and MSMSB agreed to revise the profit sharing arrangement to an amount equal to 6.5% of sales and the revision shall take effect retroactively as of August 1, 2017. The agreement is initially valid for a year and automatically renews in one-year increments or whenever both parties agree to terminate it. Net revenue from this collaborative arrangement was $357,547 and $383,815 for the three and nine months ended September 30, 2017, respectively. As of September 30, 2017, the Company had a receivable from MSMSB of $325,014. Acquisition Agreement On April 7, 2017, the Company entered into an acquisition agreement with the shareholders of MSMSB pursuant to which the Company agreed to purchase a 100% equity interest, or 100,000 ordinary shares of MSMSB for an aggregate purchase price of $50,000. The consummation of the acquisition is subject to the completion of an audit of MSMSB. Other Related Party Transactions In January 2017, the Company paid certain general and administrative expenses on behalf of Mon Space Plantation Inc, a company whose directors include Lai Chai Suang, Low Koon Poh and Chan Foo Weng, in the amount of $6,599. The amounts are recorded as a receivable on the accompanying balance sheet. In June 2017, the Company’s director, Low Koon Poh, paid employees’ salaries and deposited cash to open a bank account on behalf of the Company of approximately $8,800. The amounts are recorded as due to related parites on the accompanying balance sheet. During the nine months ended September 30, 2017, two companies, whose directors include Low Koon Poh, provided certain general and administrative services to the Company or paid fees on behalf of the Company for the amount of approximately $4,400. The amounts are recorded as due to related parites on the accompanying balance sheet.

Nature of Operations and Summ11

Nature of Operations and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2017
Nature of Operations and Summary of Significant Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) in all material respects. Certain information and note disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been condensed or omitted from these statements pursuant to such rules and regulations and, accordingly, they do not include all the information and notes necessary for comprehensive financial statements and should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2016.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, MSNI (M) Sdn. Bhd., and MSNI (HK) Limited. Intercompany transactions and balances have been eliminated.
Use of Estimates and Assumptions	Use of Estimates and Assumptions The preparation of consolidated financial statements in conformity with GAAP 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include cash on hand and on deposit at banking institutions. Balances held by the Company are not typically in excess of FDIC insured limits. As of September 30, 2017, all of the Company’s cash was deposited in two banks.
Revenue Recognition	Revenue Recognition Revenues consist of profit sharing revenues from a collaboration agreement with Monspacemall Sdn Bhd (“MSMSB”). The Company recognizes revenue when it receives the monthly invoice and reconciliation from MSMSB showing products shipped and all risks and rewards of ownership have been transferred to third-party customers.
Income (Loss) Per Common Share	Income (Loss) Per Common Share Basic income (loss) per common share excludes dilution and is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted loss per common share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the net income of the entity. As of September 30, 2017, there are no outstanding dilutive securities.
Foreign Currency	Foreign Currency An entity’s functional currency is the currency of the primary economic environment in which it operates and is generally the currency in which the business generates and expends cash. The Company has determined that the functional currency of the Company is U.S. Dollars. MSNI Malaysia, whose functional currency is the Malaysian Ringgit, and MSNI HK, whose functional currency is the Hong Kong Dollar, translate their assets and liabilities into U.S. dollars at the exchange rates in effect as of the balance sheet date. Revenues and expenses are translated into U.S. dollars at the average exchange rates for the year. Translation adjustments are included in accumulated other comprehensive income (loss), a separate component of equity. Foreign exchange gains and losses included in net income result from foreign exchange fluctuations on transactions denominated in a currency other than an entity’s functional currency.
Income taxes	Income taxes An asset and liability approach is used for financial accounting and reporting for income taxes. Deferred income taxes arise from temporary differences between income tax and financial reporting and principally relate to recognition of revenue and expenses in different periods for financial and tax accounting purposes and are measured using currently enacted tax rates and laws. In addition, a deferred tax asset can be generated by net operating loss carry forwards. If it is more likely than not that some portion or all of a deferred tax asset will not be realized, a valuation allowance is recognized.
Subsequent Events	Subsequent Events The Company has evaluated all transactions through the financial statement issuance date for subsequent event disclosure consideration.

Income Tax (Tables)

Income Tax (Tables)	9 Months Ended
	Sep. 30, 2017
Income Tax [Abstract]
Schedule of income tax expense with effective income tax rate in United States on income before income taxes	For the nine months ended September 30, 2017 Computed income tax provision at statutory tax rate of 35% $ 89,968 Foreign tax rate differential (34,204 ) Changes in allowance on deferred tax assets 20,190 Provision for income tax $ 75,954

Liquidity and Going Concern (De

Liquidity and Going Concern (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Liquidity and Going Concern (Textual)
Retained earnings (Accumulated deficit)	$ 2,374	$ (178,724)
Cash and cash equivalents	21,426	65,700	$ 409,767
Receivables - related party	$ 331,613	$ 1,599

Equity (Details)

Equity (Details) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Equity (Textual)
Common stock, shares authorized	1,000,000,000		1,000,000,000
Capital contributions from Low Koon Poh	$ 4,126	$ 18,592

Income Tax (Details)

Income Tax (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Tax [Abstract]
Computed income tax provision at statutory tax rate of 35%			$ 89,968
Foreign tax rate differential			(34,204)
Changes in allowance on deferred tax assets			20,190
Provision for income tax	$ 75,954		$ 75,954

Income Tax (Details Textual)

Income Tax (Details Textual)	9 Months Ended
	Sep. 30, 2017
Income Tax (Textual)
Statutory tax rate, percentage	35.00%
Income tax rate, percentage	35.00%
Income taxes under the tax laws, description	MSNI Malaysia is subject income taxes under the tax laws of Malaysia. A resident company is taxed at an approximate rate of 24% if the chargeable income is in excess of MYR 500,000 in Malaysia. MSNI Malaysia accrued $75,954 of tax expenses estimated by the net income.

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	Nov. 08, 2017	Apr. 07, 2017	Jun. 30, 2017	Jan. 31, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Related Party Transactions (Textual)
Company paid certain general and administrative expenses							$ 4,400
Net revenue					$ 357,547		$ 383,815
Collaboration agreement, description							MSNI contributed a consumer database up to a maximum of 500,000 persons in exchange for the profit sharing arrangement in an amount equal to 50% of the net profits from the collaboration agreement, which is included in net revenue.
Employees' salaries and deposited cash to open a bank account			$ 8,800
Receivable amount					$ 325,014		$ 325,014
Subsequent Events [Member]
Related Party Transactions (Textual)
Profit sharing arrangement, description	MSNI Malaysia and MSMSB agreed to revise the profit sharing arrangement to an amount equal to 6.5% of sales and the revision shall take effect retroactively as of August 1, 2017.
MSMSB [Member]
Related Party Transactions (Textual)
Purchase equity interest		100.00%
Purchase of equity ordinary shares		100,000
Purchase of equity ordinary shares value		$ 50,000
Directors [Member]
Related Party Transactions (Textual)
Company paid certain general and administrative expenses				$ 6,599