Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2020 | Jun. 20, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | COSMOS GROUP HOLDINGS INC. | |
Entity Central Index Key | 0001706509 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | true | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Mar. 31, 2020 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 | |
Entity Ex Transition Period | false | |
Entity Common Stock Shares Outstanding | 21,536,933 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF BALANCE SHEET - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 8,774 | $ 28,816 |
Accounts receivable | 4,124 | 64,570 |
Accounts receivable-related party | 73,082 | 0 |
Total current assets | 85,980 | 93,386 |
Property and equipment, net | 44,445 | 47,508 |
Assets from discontinued operation | 28,910 | 31,162 |
Total Assets | 159,335 | 172,056 |
Current liabilities | ||
Accounts payable and accrued liabilities | 61,477 | 71,220 |
Due to related parties | 432,973 | 416,230 |
Lease liability | 3,353 | 8,333 |
Income tax payable | 8,355 | 11,958 |
Total current liabilities | 506,158 | 507,741 |
Deferred tax liabilities | 7,887 | 7,839 |
Liabilities from discontinued operation | 50,385 | 46,266 |
Total liabilities | 564,430 | 561,846 |
Stockholders' deficit | ||
Common stock, $0.001 par value; 500,000,000 shares authorized, 21,536,933 shares issued and outstanding as of March 31, 2020 and December 31, 2019 | 21,536 | 21,536 |
Additional paid-in capital | 395,516 | 395,516 |
Accumulated deficit | (819,511) | (806,842) |
Accumulated other comprehensive loss | (2,636) | 0 |
Total stockholders' deficit | (405,095) | (389,790) |
Total Liabilities and Stockholders' Deficit | $ 159,335 | $ 172,056 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF BALANCE SHEET (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Stockholders' deficit | ||
Common stock, shares par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 21,536,933 | 21,536,933 |
Common stock, shares outstanding | 21,536,933 | 21,536,933 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) | ||
Sales revenue | $ 90,388 | $ 128,002 |
Sales revenue-related party | 72,912 | 0 |
Total revenues, net | 163,300 | 128,002 |
Cost of revenue | 112,966 | 92,669 |
Gross profit | 50,334 | 35,333 |
General and administrative expenses | 56,153 | 83,536 |
Loss from operations | (5,819) | (48,203) |
Other income (expense) | ||
Interest income | 1 | 1 |
Interest expense | (565) | (563) |
Total other expense, net | (564) | (562) |
Loss before income tax provision | (6,383) | (48,765) |
Income tax provision | 0 | 0 |
Loss from continuing operations | (6,383) | (48,765) |
Loss from discontinued operations, net of tax | (6,286) | 0 |
Net loss | (12,669) | (48,765) |
Comprehensive loss: | ||
Foreign currency translation adjustment, net of tax | (2,636) | 0 |
Comprehensive loss | $ (15,305) | $ (48,765) |
Net loss per share: | ||
Continuing operations - basic and diluted | $ 0 | $ 0 |
Discontinued operations - basic and diluted | 0 | 0 |
Net loss per share - basic and diluted | $ 0 | $ 0 |
Weighted average number of common shares: | ||
Basic and diluted | 21,536,933 | 21,492,933 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash Flows from Operating Activities | ||
Net loss | $ (12,669) | $ (48,765) |
Adjustments to reconcile net loss to net cash provided by operating activities | ||
Depreciation | 3,062 | 4,958 |
Deferred tax | 48 | 0 |
Changes in assets and liabilities: | ||
Accounts receivable | (12,635) | (11,373) |
Accounts payable and accrued liabilities | (9,743) | 5,648 |
Income tax payable | (3,603) | 0 |
Net cash provided by operating activities from discontinued operations | 1,043 | 0 |
Net cash used in operating activities | (34,497) | (49,532) |
Cash flows from financing activities | ||
Advance from related parties | 14,107 | 45,439 |
Repayment of lease liability | (4,980) | (5,000) |
Net cash provided by financing activities from discontinued operations | 5,328 | 0 |
Net cash provided by financing activities | 14,455 | 40,439 |
Net decrease in cash and cash equivalents | (20,042) | (9,093) |
Cash and Cash Equivalents | ||
Beginning | 28,816 | 12,149 |
Ending | 8,774 | 3,056 |
Cash paid during the periods for: | ||
Interest | 565 | 563 |
Income taxes | $ 3,603 | $ 0 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY (UNAUDITED) - USD ($) | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Balance, shares at Dec. 31, 2018 | 21,492,933 | ||||
Balance, amount at Dec. 31, 2018 | $ (101,813) | $ 21,492 | $ 0 | $ (123,305) | $ 0 |
Foreign currency translation adjustment | 0 | ||||
Net loss | (48,765) | $ 0 | 0 | (48,765) | 0 |
Balance, shares at Mar. 31, 2019 | 21,492,933 | ||||
Balance, amount at Mar. 31, 2019 | (150,578) | $ 21,492 | 0 | (172,070) | 0 |
Balance, shares at Dec. 31, 2019 | 21,536,933 | ||||
Balance, amount at Dec. 31, 2019 | (389,790) | $ 21,536 | 395,516 | (806,842) | 0 |
Foreign currency translation adjustment | (2,636) | 0 | 0 | 0 | (2,636) |
Net loss | (12,669) | $ 0 | 0 | (12,669) | 0 |
Balance, shares at Mar. 31, 2020 | 21,536,933 | ||||
Balance, amount at Mar. 31, 2020 | $ (405,095) | $ 21,536 | $ 395,516 | $ (819,511) | $ (2,636) |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Basis of Presentation | |
NOTE 1. Basis of Presentation | The accompanying unaudited condensed consolidated financial statements have been prepared by management in accordance with both accounting principles generally accepted in the United States (“GAAP”), and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and note disclosures normally included in audited financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. In the opinion of management, the consolidated balance sheet as of December 31, 2019 which has been derived from audited financial statements and these unaudited condensed consolidated financial statements reflect all normal and recurring adjustments considered necessary to state fairly the results for the periods presented. The results for the period ended March 31, 2020 are not necessarily indicative of the results to be expected for the entire fiscal year ending December 31, 2020 or for any future period. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the Management’s Discussion and the audited financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2019. |
Organization and Business Backg
Organization and Business Background | 3 Months Ended |
Mar. 31, 2020 | |
Basis of Presentation | |
NOTE 2. Organization and Business Background | Cosmos Group Holdings Inc. (“we,” “us,” “our,” “the “Company,” or “COSG”) incorporated in the state of Nevada on August 14, 1987. The Company, through its subsidiaries, mainly engages in the provision of truckload transportation service in Hong Kong, in which the Company utilizes its owned trucks or independent contractor owned trucks for the pickup and delivery of freight from port to the designated destination, upon the customers’ request. Description of subsidiaries: Name Place of incorporation and kind of legal entity Principal activities and place of operation Particular of issued/ registered share capital Effective interest held Lee Tat International Holdings limited British Virgin Islands Investment holding 50,000 ordinary shares at US $1 each 100% Lee Tat Transportation International Limited Hong Kong Logistic and delivery 10,000 ordinary shares at HK $10,000 100% Cosmos Robotor Holdings Limited British Virgin Islands Investment holding 50,000 ordinary shares at US $0,001 each 100% AiTeach International Limited Hong Kong AI Business 10,000 ordinary shares at HK $100 100% Cosmos Robotor AI Education (Shenzhen) Limited The People’s Republic of China Education N/A 100% COSG and its subsidiaries are hereinafter referred to as the “Company”. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Summary of Significant Accounting Policies | |
NOTE 3. Summary of Significant Accounting Policies | The accompanying condensed consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying condensed consolidated financial statements and notes. Use of Estimates The preparation of these condensed consolidated 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. Basis of consolidation The consolidated financial statements include the accounts of COSG and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation. Reclassification Certain reclassifications 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 loss or accumulated deficit. Discontinued Operation On March 16, 2020 , Cash and Cash Equivalents Cash and cash equivalents consist primarily of cash in readily available checking and saving accounts. Cash equivalents consist of highly liquid investments that are readily convertible to cash and that mature within three months or less from the date of purchase. The carrying amounts approximate fair value due to the short maturities of these instruments. Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest, which are due within contractual payment terms, generally 30 to 90 days from completion of service. Credit is extended based on evaluation of a customer’s financial condition, the customer credit-worthiness and their payment history. Accounts receivable outstanding longer than the contractual payment terms are considered past due. Past due balances over 90 days and over a specified amount are reviewed individually for collectibility. At the end of fiscal year, the Company specifically evaluates individual customer’s financial condition, credit history, and the current economic conditions to monitor the progress of the collection of accounts receivables. The Company will consider the allowance for doubtful accounts for any estimated losses resulting from the inability of its customers to make required payments. For the receivables that are past due or not being paid according to payment terms, the appropriate actions are taken to exhaust all means of collection, including seeking legal resolution in a court of law. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. As of March 31, 2020 and December 31, 2019, there was no allowance for doubtful accounts. Plant and Equipment Plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values: Expected useful life Service vehicle 8 years Expenditure for repairs and maintenance is expensed as incurred. When assets have retired or sold, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the results of operations. Impairment of Long-Lived Assets In accordance with the provisions of Accounting Standards Codification (“ASC”) Topic 360, “ Impairment or Disposal of Long-Lived Assets Revenue Recognition The Company adopted Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”) using the full retrospective transition method. The Company’s adoption of ASU 2014-09 did not have a material impact on the amount and timing of revenue recognized in its consolidated financial statements. Under ASU 2014-09, the Company recognizes revenue when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company derives its revenues from the rendering of transportation services and recognizes in full upon completion of delivery to the receiver’s location. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: · identify the contract with a customer; · identify the performance obligations in the contract; · determine the transaction price; · allocate the transaction price to performance obligations in the contract; and · recognize revenue as the performance obligation is satisfied. Cost of revenue Cost of revenue consists primarily of direct labor and fuel cost, which are directly attributable to the rendering of transportation services. Shipping and handling costs, associated with the custom clearance are borne by the customers. Comprehensive income ASC Topic 220, ”Comprehensive Income”, Income taxes Income taxes are determined in accordance with the provisions of ASC Topic 740, ”Income Taxes” (“ASC 740”). Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. For the three months ended March 31, 2020 and 2019, the Company did not have any interest and penalties associated with tax positions. As of March 31, 2020 and December 31, 2019, the Company did not have any significant unrecognized uncertain tax positions. The Company conducts major businesses in Hong Kong and is subject to tax in this jurisdiction. As a result of its business activities, the Company files tax returns that are subject to examination by the foreign tax authority. Leases The Company adopted Topic 842, Leases Leases At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present. Leases with a term greater than one year are recognized on the balance sheet as right-of-use assets, lease liabilities and long-term lease liabilities. The Company has elected not to recognize on the balance sheet leases with terms of one year or less. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected remaining lease term. However, certain a-djustments to the right-of-use asset may be required for items such as prepaid or accrued lease payments. The interest rate implicit in lease contracts is typically not readily determinable. As a result, the Company utilizes its incremental borrowing rates, which are the rates incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. In accordance with the guidance in ASC 842, components of a lease should be split into three categories: lease components (e.g. land, building, etc.), non-lease components (e.g. common area maintenance, consumables, etc.), and non-components (e.g. property taxes, insurance, etc.). Subsequently, the fixed and in-substance fixed contract consideration (including any related to non-components) must be allocated based on the respective relative fair values to the lease components and non-lease components. The Company made the policy election to not separate lease and non-lease components. Each lease component and the related non-lease components are accounted for together as a single component. Net (loss) income per share The Company calculates net income per share in accordance with ASC Topic 260, ”Earnings per Share.” Foreign currencies translation Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statement of operations. The reporting currency of the Company is the United States Dollar (“US$”). The Company’s subsidiaries in Hong Kong maintain their books and records in their local currency, Hong Kong Dollars (“HK$”), which is the functional currency as being the primary currency of the economic environment in which these entities operate. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not the US$ are translated into US$, in accordance with ASC Topic 830-30, ”Translation of Financial Statement Retirement plan costs Contributions to retirement plans (which are defined contribution plans) are charged to general and administrative expenses in the accompanying consolidated statements of operation as the related employee service is provided. Stock based compensation The Company accounts for employee and non-employee stock awards under ASC Topic 718, whereby equity instruments issued to employees for services are recorded based on the fair value of the instrument issued and those issued to non-employees are recorded based on the fair value of the consideration received or the fair value of the equity instrument, whichever is more reliably measurable. Related parties Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Companies are also considered to be related if they are subject to common control or common significant influence. Segment reporting ASC Topic 280, “ Segment Reporting 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. Recent Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes: Simplifying the Accounting for Income Taxes Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption. |
Going Concern Uncertainties
Going Concern Uncertainties | 3 Months Ended |
Mar. 31, 2020 | |
Summary of Significant Accounting Policies | |
NOTE 4. Going Concern Uncertainties | The accompanying condensed consolidated financial statements have been prepared using the going concern basis of accounting, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has suffered from an accumulated deficit of $819,511 and working capital deficit of $420,178, at March 31, 2020. In addition, with respect to the ongoing and evolving coronavirus (COVID-19) outbreak, which was designated as a pandemic by the World Health Organization on March 11, 2020, the outbreak has caused substantial disruption in international economies and global trades and if repercussions of the outbreak are prolonged, could have a significant adverse impact on the Company’s business. The continuation of the Company as a going concern through March 31, 2021 is dependent upon the continued financial support from its stockholders. Management believes the Company is currently pursuing additional financing for its operations. However, there is no assurance that the Company will be successful in securing sufficient funds to sustain the operations. These and other factors raise substantial doubt about the Company’s ability to continue as a going concern. These condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets and liabilities that may result in the Company not being able to continue as a going concern. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2020 | |
Discontinued Operations | |
NOTE 5. Discontinued Operations | On March 16, 2020, the Company approved to discontinue and exit from AI Education business by the end of the first quarter 2020. The results of operations for the Company are presented in the consolidated statements of operations and comprehensive loss as loss from discontinued operations. For the Three Months Ended March 31, 2020 Net Revenue $ - Cost of Revenue - General and administrative expense (6,292 ) Other income 6 Loss before income taxes (6,286 ) Income taxes - Loss from discontinued operations, net of tax $ (6,286 ) Net assets of discontinued operations as of March 31, 2020 were as follows: As of March 31, 2020 Cash & cash equivalents $ 11,189 Property and equipment 17,721 Assets from discontinued operations 28,910 Accrued expenses $ 1,355 Due to director 24,016 Due to related parties 25,014 Liabilities from discontinued operations $ 50,385 |
Plant and Equipment
Plant and Equipment | 3 Months Ended |
Mar. 31, 2020 | |
Plant and Equipment | |
NOTE 6. Plant and Equipment | Plant and equipment consisted of the following: March 31, 2020 December 31, 2019 Service vehicle, at cost $ 111,928 $ 111,238 Less: accumulated depreciation (67,483 ) (63,730 ) $ 44,445 $ 47,508 Depreciation expense for the three months ended March 31, 2020 and 2019 were $3,062 and $4,958, as part of cost of revenue, respectively. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2020 | |
Basis of Presentation | |
NOTE 7. Related Party Transactions | Sales to related party The Company had sales to Lee Tat Logistic Holding Limited, a Hong Kong company controlled by Miky Wan, our President, Chief Executive Officer and director. Sales to Lee Tat Logistic Holding Limited amounted to $72,912 and $0 for the three months ended March 31, 2020 and 2019, respectively. As of March 31, 2020 and December 31, 2019, accounts receivable from Lee Tat Logistic Holding Limited was $73,082 and $0, respectively. Due to related parties As of March 31, 2020 and December 2019, the Company had $85,638 and $85,111 due to Cosmos Links International Holding Limited, respectively. Cosmos Links International Holding Limited is an entity controlled by Miky Wan, President, Chief Executive Officer and director of the Company. Those loans are unsecured, bear no interest, and are due on demand. As of March 31, 2020 and December 2019, the Company had $342,364 and $331,119 due to Asia Cosmos Group Limited, respectively. Asia Cosmos Group Limited is an entity controlled by Miky Wan, President, Chief Executive Officer and director of the Company. Those loans are unsecured, bear no interest, and are due on demand. Koon Wing CHEUNG, a shareholder of the Company and director of Lee Tat International Holdings Limited, has advance the Company funds for working capital purposes. As of March 31, 2020 and December 31, 2019 there were $4,971 and $0 advances outstanding, respectively. Those advances are unsecured, bear no interest, and are due on demand. |
Lease Liability
Lease Liability | 3 Months Ended |
Mar. 31, 2020 | |
Lease Liability | |
NOTE 8. Lease Liability | The Company purchased a service vehicle under a finance lease agreement with the effective interest rate of 2.25% per annum, due through May 29, 2020, with principal and interest payable monthly. Right of use assets and lease liability – right of use are as follows: March 31, 2020 December 31, 2019 Right of use assets $ 44,445 $ 47,508 The lease liability – right of use is as follows: March 31, 2020 December 31, 2019 Lease liability - current $ 3,353 $ 8,333 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Plant and Equipment | |
NOTE 9. Income Taxes | The Company generated an operating loss for the three and three months ended March 31, 2020 and 2019 and did not record income tax expense. The Company has operations in various countries and is subject to tax in the jurisdictions in which they operate, as follows: United States of America COSG is registered in the State of Nevada and is subject to the tax laws of United States of America As of March 31, 2020, the operation in the United States of America incurred $2,650,069 of cumulative net operating losses which can be carried forward to offset future taxable income. The net operating loss carryforwards begin to expire in 2040, if unutilized. The Company has provided for a full valuation allowance against the deferred tax assets of $556,514 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future. BVI Under the current BVI law, the Company is not subject to tax on income. Hong Kong The Company’s subsidiaries operating in Hong Kong are subject to the Hong Kong Profits Tax at the two-tiered income tax rate from 8.25% to 16.5% on the assessable income arising in Hong Kong during its tax year. The following is a reconciliation of the statutory tax rate to the effective tax rate: For the Three Months Ended March 31, 2020 2019 U.S. statutory tax (benefit) (21.0 )% (21.0 )% Hong Kong statutory tax (benefit) 8.25 % (8.25 )% Permanent and temporary differences (8.25 )% 2.09 % Change in deferred tax asset valuation allowance 21.0 % 27.16 % Effective income tax rate 0 % 0 % |
Stockholders Deficit
Stockholders Deficit | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders Deficit | |
NOTE 10. Stockholders' Deficit | Authorized stock The Company’s has 500,000,000 authorized common shares with a par value of $0.001 per share. Common stock outstanding As of March 31, 2020 and December 31, 2019, the Company had a total of 21,536,933 shares of its common stock issued and outstanding, respectively. |
Concentrations of Risk
Concentrations of Risk | 3 Months Ended |
Mar. 31, 2020 | |
Concentrations of Risk | |
NOTE 11. Concentrations of Risk | The Company is exposed to the following concentrations of risk (a) Major customers For the three months ended March 31, 2020, three customers accounted for more than 10% of the Company’s total revenues, representing approximately 45%, 37% and 16% of its total revenues, and 94%, 5% and 0% of accounts receivable in aggregate at March 31, 2020. Customer Net sales for the three months ended March 31, 2020 Accounts receivable balance as of March 31, 2020 A $ 72,912 * $ 73,082 B $ 61,188 $ 3,969 C $ 26,436 $ - For the three months ended March 31, 2019, two customers accounted for more than 10% of the Company’s total revenues, represented approximately 46% and 41% of its total revenues and 23% and 60% of accounts receivable in aggregate at March 31, 2019, respectively. Customer Net sales for the three months ended March 31, 2019 Accounts receivable balance as of March 31, 2019 B $ 58,299 $ 14,886 C $ 52,523 $ 39,300 *Related party transactions (see Note 7). (b) Major suppliers For the three months ended March 31, 2020, one supplier accounted for more than 10% of the Company’s total net purchase, representing approximately 25% of total net purchase, and 0% of accounts payable in aggregate at March 31, 2020, respectively: Supplier Net purchase for the three months ended March 31, 2020 Accounts payable balance as of March 31, 2020 A $ 27,863 $ - For the three months ended March 31, 2019, one supplier accounted for more than 10% of the Company’s total net purchase, representing approximately 17% of total net purchase, and 0% of accounts payable in aggregate at March 31, 2019, respectively: Supplier Net purchase for the three months ended March 31, 2019 Accounts payable balance as of March 31, 2019 B $ 15,385 $ - (c) Credit risk Financial instruments that are potentially subject to credit risk consist principally of trade receivables. The Company believes the concentration of credit risk in its trade receivables is substantially mitigated by its ongoing credit evaluation process and relatively short collection terms. The Company does not generally require collateral from customers. The Company evaluates the need for an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. (d) Interest rate risk As the Company has no significant interest-bearing assets, the Company’s income and operating cash flows are substantially independent of changes in market interest rates. The Company’s interest-rate risk arises from finance lease. The Company manages interest rate risk by varying the issuance and maturity dates variable rate debt, limiting the amount of variable rate debt, and continually monitoring the effects of market changes in interest rates. As of March 31, 2020 and December 31, 2019 borrowing under finance lease was at fixed rate. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Plant and Equipment | |
NOTE 12. Subsequent Events | Management has evaluated subsequent events through the date which the financial statements are available to be issued. All subsequent events requiring recognition as of March 31, 2020 have been incorporated into these consolidated financial statements and there are no subsequent events that require disclosure in accordance with FASB ASC Topic 855, “Subsequent Events”. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Summary of Significant Accounting Policies | |
Use of Estimates | The preparation of these condensed consolidated 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. |
Basis of consolidation | The consolidated financial statements include the accounts of COSG and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation. |
Reclassification | Certain reclassifications 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 loss or accumulated deficit. |
Discontinued Operations | On March 16, 2020 , |
Cash and Cash Equivalents | Cash and cash equivalents consist primarily of cash in readily available checking and saving accounts. Cash equivalents consist of highly liquid investments that are readily convertible to cash and that mature within three months or less from the date of purchase. The carrying amounts approximate fair value due to the short maturities of these instruments. |
Accounts Receivable | Accounts receivable are recorded at the invoiced amount and do not bear interest, which are due within contractual payment terms, generally 30 to 90 days from completion of service. Credit is extended based on evaluation of a customer’s financial condition, the customer credit-worthiness and their payment history. Accounts receivable outstanding longer than the contractual payment terms are considered past due. Past due balances over 90 days and over a specified amount are reviewed individually for collectibility. At the end of fiscal year, the Company specifically evaluates individual customer’s financial condition, credit history, and the current economic conditions to monitor the progress of the collection of accounts receivables. The Company will consider the allowance for doubtful accounts for any estimated losses resulting from the inability of its customers to make required payments. For the receivables that are past due or not being paid according to payment terms, the appropriate actions are taken to exhaust all means of collection, including seeking legal resolution in a court of law. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. As of March 31, 2020 and December 31, 2019, there was no allowance for doubtful accounts. |
Plant and Equipment | Plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values: Expected useful life Service vehicle 8 years Expenditure for repairs and maintenance is expensed as incurred. When assets have retired or sold, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the results of operations. |
Impairment of Long-Lived Assets | In accordance with the provisions of Accounting Standards Codification (“ASC”) Topic 360, “ Impairment or Disposal of Long-Lived Assets |
Revenue Recognition | The Company adopted Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”) using the full retrospective transition method. The Company’s adoption of ASU 2014-09 did not have a material impact on the amount and timing of revenue recognized in its consolidated financial statements. Under ASU 2014-09, the Company recognizes revenue when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company derives its revenues from the rendering of transportation services and recognizes in full upon completion of delivery to the receiver’s location. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: · identify the contract with a customer; · identify the performance obligations in the contract; · determine the transaction price; · allocate the transaction price to performance obligations in the contract; and · recognize revenue as the performance obligation is satisfied. |
Cost of revenue | Cost of revenue consists primarily of direct labor and fuel cost, which are directly attributable to the rendering of transportation services. Shipping and handling costs, associated with the custom clearance are borne by the customers. |
Comprehensive income | ASC Topic 220, ”Comprehensive Income”, |
Income taxes | Income taxes are determined in accordance with the provisions of ASC Topic 740, ”Income Taxes” (“ASC 740”). Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. For the three months ended March 31, 2020 and 2019, the Company did not have any interest and penalties associated with tax positions. As of March 31, 2020 and December 31, 2019, the Company did not have any significant unrecognized uncertain tax positions. The Company conducts major businesses in Hong Kong and is subject to tax in this jurisdiction. As a result of its business activities, the Company files tax returns that are subject to examination by the foreign tax authority. |
Lease | The Company adopted Topic 842, Leases Leases At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present. Leases with a term greater than one year are recognized on the balance sheet as right-of-use assets, lease liabilities and long-term lease liabilities. The Company has elected not to recognize on the balance sheet leases with terms of one year or less. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected remaining lease term. However, certain a-djustments to the right-of-use asset may be required for items such as prepaid or accrued lease payments. The interest rate implicit in lease contracts is typically not readily determinable. As a result, the Company utilizes its incremental borrowing rates, which are the rates incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. In accordance with the guidance in ASC 842, components of a lease should be split into three categories: lease components (e.g. land, building, etc.), non-lease components (e.g. common area maintenance, consumables, etc.), and non-components (e.g. property taxes, insurance, etc.). Subsequently, the fixed and in-substance fixed contract consideration (including any related to non-components) must be allocated based on the respective relative fair values to the lease components and non-lease components. The Company made the policy election to not separate lease and non-lease components. Each lease component and the related non-lease components are accounted for together as a single component. |
Net (loss) income per share | The Company calculates net income per share in accordance with ASC Topic 260, ”Earnings per Share.” |
Foreign currencies translation | Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statement of operations. The reporting currency of the Company is the United States Dollar (“US$”). The Company’s subsidiaries in Hong Kong maintain their books and records in their local currency, Hong Kong Dollars (“HK$”), which is the functional currency as being the primary currency of the economic environment in which these entities operate. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not the US$ are translated into US$, in accordance with ASC Topic 830-30, ”Translation of Financial Statement |
Retirement plan costs | Contributions to retirement plans (which are defined contribution plans) are charged to general and administrative expenses in the accompanying consolidated statements of operation as the related employee service is provided. |
Stock based compensation | The Company accounts for employee and non-employee stock awards under ASC Topic 718, whereby equity instruments issued to employees for services are recorded based on the fair value of the instrument issued and those issued to non-employees are recorded based on the fair value of the consideration received or the fair value of the equity instrument, whichever is more reliably measurable. |
Related parties | Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Companies are also considered to be related if they are subject to common control or common significant influence. |
Segment reporting | ASC Topic 280, “ Segment Reporting |
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. |
Recent Accounting Pronouncements | In December 2019, the FASB issued ASU No. 2019-12, Income Taxes: Simplifying the Accounting for Income Taxes Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption. |
Organization and Business Bac_2
Organization and Business Background (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Lease Liability | |
Schedule of description of subsidiaries | Name Place of incorporation and kind of legal entity Principal activities and place of operation Particular of issued/ registered share capital Effective interest held Lee Tat International Holdings limited British Virgin Islands Investment holding 50,000 ordinary shares at US $1 each 100% Lee Tat Transportation International Limited Hong Kong Logistic and delivery 10,000 ordinary shares at HK $10,000 100% Cosmos Robotor Holdings Limited British Virgin Islands Investment holding 50,000 ordinary shares at US $0,001 each 100% AiTeach International Limited Hong Kong AI Business 10,000 ordinary shares at HK $100 100% Cosmos Robotor AI Education (Shenzhen) Limited The People’s Republic of China Education N/A 100% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Summary of Significant Accounting Policies | |
Schedule of Property and equipment useful life | Expected useful life Service vehicle 8 years |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Discontinued Operations | |
Schedule of operatins and net assets of discontinued operations | For the Three Months Ended March 31, 2020 Net Revenue $ - Cost of Revenue - General and administrative expense (6,292 ) Other income 6 Loss before income taxes (6,286 ) Income taxes - Loss from discontinued operations, net of tax $ (6,286 ) Net assets of discontinued operations as of March 31, 2020 were as follows: As of March 31, 2020 Cash & cash equivalents $ 11,189 Property and equipment 17,721 Assets from discontinued operations 28,910 Accrued expenses $ 1,355 Due to director 24,016 Due to related parties 25,014 Liabilities from discontinued operations $ 50,385 |
Plant and Equipment (Tables)
Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Plant and Equipment | |
Schedule of plant and equipment | March 31, 2020 December 31, 2019 Service vehicle, at cost $ 111,928 $ 111,238 Less: accumulated depreciation (67,483 ) (63,730 ) $ 44,445 $ 47,508 |
Lease Liability (Tables)
Lease Liability (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Lease Liability | |
Schedule of lease information | Right of use assets and lease liability – right of use are as follows: March 31, 2020 December 31, 2019 Right of use assets $ 44,445 $ 47,508 The lease liability – right of use is as follows: March 31, 2020 December 31, 2019 Lease liability - current $ 3,353 $ 8,333 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Income Taxes (Tables) | |
Schedule of Income tax reconciliation | For the Three Months Ended March 31, 2020 2019 U.S. statutory tax (benefit) (21.0 )% (21.0 )% Hong Kong statutory tax (benefit) 8.25 % (8.25 )% Permanent and temporary differences (8.25 )% 2.09 % Change in deferred tax asset valuation allowance 21.0 % 27.16 % Effective income tax rate 0 % 0 % |
Concentrations of Risk (Tables)
Concentrations of Risk (Tables) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Major customer [Member] | ||
Schedule of Concentration of risk | Customer Net sales for the three months ended March 31, 2020 Accounts receivable balance as of March 31, 2020 A $ 72,912 * $ 73,082 B $ 61,188 $ 3,969 C $ 26,436 $ - | Customer Net sales for the three months ended March 31, 2019 Accounts receivable balance as of March 31, 2019 B $ 58,299 $ 14,886 C $ 52,523 $ 39,300 |
Major Supplier [Member] | ||
Schedule of Concentration of risk | Supplier Net purchase for the three months ended March 31, 2020 Accounts payable balance as of March 31, 2020 A $ 27,863 $ - | Supplier Net purchase for the three months ended March 31, 2019 Accounts payable balance as of March 31, 2019 B $ 15,385 $ - |
Organization and Business Bac_3
Organization and Business Background (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Lee Tat International Holdings limited [Member] | |
Ownership percentage | 100.00% |
Place of incorporation | British Virgin Islands |
Principal activities | Investment holding |
Registered share capital | 50,000 ordinary shares at US$1 each |
Lee Tat Transporation International Limited [Member] | |
Ownership percentage | 100.00% |
Place of incorporation | Hong Kong |
Principal activities | Logistic and delivery |
Registered share capital | 10,000 ordinary shares at HK$10,000 |
Cosmos Robotor Holdings Limited [Member] | |
Ownership percentage | 100.00% |
Place of incorporation | British Virgin Islands |
Principal activities | Investment Holding |
Registered share capital | 50,000 ordinary shares at US$0.001 each |
AiTeach International Limited [Member] | |
Ownership percentage | 100.00% |
Place of incorporation | Hong Kong |
Principal activities | AI Business |
Registered share capital | 10,000 ordinary shares at HK$100 |
Cosmos Robotor AI Education (Schenzhen) Limited [Member] | |
Ownership percentage | 100.00% |
Place of incorporation | The People's Republic of China |
Principal activities | Education |
Registered share capital | N/A |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) | 3 Months Ended |
Mar. 31, 2020 | |
Service vehicle [Member] | |
Expected useful life of property | 8 years |
Going Concern Uncertainties (De
Going Concern Uncertainties (Details Narrative) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Basis of Presentation | ||
Accumulated deficit | $ (819,511) | $ (806,842) |
Working capital deficit | $ (420,178) |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net Revenue | $ 163,300 | $ 128,002 |
Cost of Revenue | 112,966 | 92,669 |
General and administrative expense | (56,153) | (83,536) |
Income taxes | 0 | $ 0 |
Discontinued Operations [Member] | ||
Net Revenue | 0 | |
Cost of Revenue | 0 | |
General and administrative expense | (6,292) | |
Other income | 6 | |
Loss before income taxes | (6,286) | |
Income taxes | 0 | |
Loss from discontinued operations, net of tax | $ (6,286) |
Discontinued Operations (Deta_2
Discontinued Operations (Details 1) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Cash & cash equivalents | $ 8,774 | $ 28,816 | $ 3,056 | $ 12,149 |
Property and equipment | 44,445 | 47,508 | ||
Due to related parties | 432,973 | 416,230 | ||
Liabilities from discontinued operations | 50,385 | $ 46,266 | ||
Discontinued Operations [Member] | ||||
Cash & cash equivalents | 11,189 | |||
Property and equipment | 17,721 | |||
Assets from discontinued operations | 28,910 | |||
Accrued expenses | 1,355 | |||
Due to director | 24,016 | |||
Due to related parties | 25,014 | |||
Liabilities from discontinued operations | $ 50,385 |
Plant and Equipment (Details)
Plant and Equipment (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Plant and Equipment (Details) | ||
Service vehicle, at cost | $ 111,928 | $ 111,238 |
Less: accumulated depreciation | 67,483 | 63,730 |
Property, plant and equipment, net | $ 44,445 | $ 47,508 |
Plant and Equipment (Details Na
Plant and Equipment (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Plant and Equipment (Details) | ||
Depreciation | $ 3,062 | $ 4,958 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Sales to related party | $ 72,912 | $ 0 | |
Account receivables | 4,124 | $ 64,570 | |
Due to related party | 432,973 | 416,230 | |
Lee Tat Logistic Holding Limited [Member] | |||
Sales to related party | 72,912 | $ 0 | |
Account receivables | 73,082 | 0 | |
Cosmos Links International Holding Limited [Member] | |||
Due to related party | 85,638 | 85,111 | |
Asia Cosmos Group Limited [Member] | |||
Due to related party | 342,364 | 331,119 | |
Koon Wing CHEUNG [Member] | |||
Due to related party | $ 4,971 | $ 0 |
Lease Liability (Details)
Lease Liability (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Lease Liability | ||
Right of use assets | $ 44,445 | $ 47,508 |
Lease liability - current | $ 3,353 | $ 8,333 |
Lease Liability (Details Narrat
Lease Liability (Details Narrative) - Service Vehicles [Member] | 3 Months Ended |
Mar. 31, 2020 | |
Finance lease agreement, interest rate | 2.25% |
Finance lease agreement, description | Due through May 29, 2020, with principal and interest payable monthly |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Taxes (Details) | ||
U.S. statutory tax (benefit) | (21.00%) | (21.00%) |
Hong Kong statutory tax (benefit) | 8.25% | (8.25%) |
Permanent and temporary differences | (8.25%) | 2.09% |
Change in deferred tax asset valuation allowance | 21.00% | 27.16% |
Effective income tax rate | 0.00% | 0.00% |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating losses carry forward | $ 2,650,069 | |
Deferred tax assets, valuation allowance | $ 556,514 | |
Operating losses carry forward, expiration period | The net operating loss carryforwards begin to expire in 2040 | |
Income tax rate | 8.25% | (8.25%) |
Hong Kong [Member] | Minimum [Member] | ||
Income tax rate | 8.25% | |
Hong Kong [Member] | Maximum [Member] | ||
Income tax rate | 16.50% |
Stockholders Deficit (Details N
Stockholders Deficit (Details Narrative) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Stockholders Deficit (Details Narrative) | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 21,536,933 | 21,536,933 |
Common stock, shares, outstanding | 21,536,933 | 21,536,933 |
Concentrations of Risk (Details
Concentrations of Risk (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues | $ 163,300 | $ 128,002 |
Customer A [Member] | ||
Revenues | 72,912 | |
Accounts receivable | 73,082 | |
Customer B [Member] | ||
Revenues | 61,188 | 58,299 |
Accounts receivable | 3,969 | 14,886 |
Customer C [Member] | ||
Revenues | 26,436 | 52,523 |
Accounts receivable | $ 0 | $ 39,300 |
Concentrations of Risk (Detai_2
Concentrations of Risk (Details 1) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Supplier B [Member] | ||
Net purchase | $ 15,385 | |
Account payable | $ 0 | $ 0 |
Customer A [Member] | ||
Net purchase | 27,863 | |
Account payable | $ 0 |
Concentrations of Risk (Detai_3
Concentrations of Risk (Details Narrative) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue [Member] | Customer A [Member] | ||
Concentration of risk, percentage | 45.00% | |
Revenue [Member] | Customer B [Member] | ||
Concentration of risk, percentage | 37.00% | 46.00% |
Revenue [Member] | Customer C [Member] | ||
Concentration of risk, percentage | 16.00% | 41.00% |
Accounts Receivable [Member] | Customer A [Member] | ||
Concentration of risk, percentage | 94.00% | |
Accounts Receivable [Member] | Customer B [Member] | ||
Concentration of risk, percentage | 5.00% | 23.00% |
Accounts Receivable [Member] | Customer C [Member] | ||
Concentration of risk, percentage | 0.00% | 60.00% |
Major customer [Member] | ||
Concentration of risk, description | Three customers accounted for more than 10% of the Company’s total revenues | Two customers accounted for more than 10% of the Company’s total revenues |
Major Supplier [Member] | ||
Concentration of risk, description | One supplier accounted for more than 10% of the Company’s total net purchase | One supplier accounted for more than 10% of the Company’s total net purchase |
Supplier A [Member] | Account payable [Member] | ||
Concentration of risk, percentage | 0.00% | |
Supplier A [Member] | Net purchase [Member] | ||
Concentration of risk, percentage | 25.00% | |
Supplier B [Member] | Account payable [Member] | ||
Concentration of risk, percentage | 0.00% | |
Supplier B [Member] | Net purchase [Member] | ||
Concentration of risk, percentage | 17.00% |