Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 11, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | Cosmos Group Holdings Inc. | |
Entity Central Index Key | 1,706,509 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 429,848,898 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,017 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 12,369 | $ 1,581 |
Accounts receivable | 6,501 | 46,282 |
Total current assets | 18,870 | 47,863 |
Non-current assets: | ||
Property, plant and equipment, net | 113,480 | 124,161 |
TOTAL ASSETS | 132,350 | 172,024 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 40,402 | 13,700 |
Amounts due to related parties | 49,749 | 41,306 |
Current portion of obligation under finance leases | 20,000 | 20,124 |
Total current liabilities | 110,151 | 75,130 |
Non-current liabilities: | ||
Deferred tax liabilities | 13,132 | 12,870 |
Obligation under finance leases | 38,333 | 48,633 |
Total non-current liabilities | 51,465 | 61,503 |
TOTAL LIABILITIES | 161,616 | 136,633 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $0.001 par value; 500,000,000 shares authorized; 429,848,898 and 219,222,938 shares issued and outstanding as of June 30, 2017 and December 31, 2016, respectively | 429,849 | 219,223 |
Accumulated losses | (459,115) | (183,832) |
Total stockholders' (deficit) equity | (29,266) | 35,391 |
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | $ 132,350 | $ 172,024 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ .001 | $ .001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 429,848,898 | 219,222,938 |
Common stock, shares outstanding | 429,848,898 | 219,222,938 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||||
Revenues, net | $ 187,664 | $ 90,822 | $ 279,382 | $ 185,781 |
Cost of revenue | (125,393) | (75,839) | (200,980) | (168,045) |
Gross profit | 62,271 | 14,983 | 78,402 | 17,736 |
Operating expenses | ||||
General and administrative | 80,623 | 43,436 | 126,837 | 79,757 |
Total operating expenses | 80,623 | 43,436 | 126,837 | 79,757 |
LOSS FROM OPERATIONS | (18,352) | (28,453) | (48,435) | (62,021) |
Other (expense) income: | ||||
Interest expense | (560) | (566) | (1,125) | (1,132) |
Other income | 0 | 2 | 142 | 6 |
Total other expense | (560) | (564) | (983) | (1,126) |
LOSS BEFORE INCOME TAXES | (18,912) | (29,017) | (49,418) | (63,147) |
Income tax expense | (53) | (528) | (262) | (1,131) |
NET LOSS | (18,965) | (29,545) | (49,680) | (64,278) |
Other comprehensive income (loss): | ||||
- Foreign currency translation gain (loss) | 0 | 0 | 0 | 0 |
COMPREHENSIVE LOSS | $ (18,965) | $ (29,545) | $ (49,680) | $ (64,278) |
Net loss per share - Basic | $ 0 | $ 0 | $ 0 | $ 0 |
Net loss per share - Diluted | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average common shares outstanding - Basic | 259,676,495 | 219,222,938 | 254,640,966 | 219,222,938 |
Weighted average common shares outstanding - Diluted | 259,676,495 | 219,222,938 | 254,640,966 | 219,222,938 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (49,418) | $ (63,147) |
Adjustments to reconcile net loss to net cash provided by (used in) by operating activities | ||
Depreciation of property, plant and equipment | 9,917 | 9,979 |
Change in operating assets and liabilities: | ||
Accounts receivable | 39,495 | 35,851 |
Accounts payable and accrued liabilities | (34,186) | (3,864) |
Net cash used in operating activities | (34,192) | (21,181) |
Cash flows from financing activities: | ||
Advance from related parties | (145,020) | 29,828 |
Proceeds from issuance of common stock | 200,000 | 0 |
Repayment of finance lease | (10,000) | (10,062) |
Net cash provided by financing activities | 44,980 | 19,766 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 10,788 | (1,415) |
BEGINNING OF PERIOD | 1,581 | 4,148 |
END OF PERIOD | 12,369 | 2,733 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for tax | 0 | 0 |
Cash paid for interest | $ 1,125 | $ 1,132 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Stockholders' Equity (Deficit) (Unaudited) - 6 months ended Jun. 30, 2017 - USD ($) | Common Stock | Retained Earnings / Accumulated Deficit | Total |
Beginning balance, shares at Dec. 31, 2016 | 219,222,938 | ||
Beginning balance, value at Dec. 31, 2016 | $ 219,223 | $ (183,832) | $ 35,391 |
Shares issued for cash proceeds, shares | 200,000,000 | ||
Shares issued for cash proceeds, value | $ 200,000 | 200,000 | |
Shares issued for acquisition of a legal acquirer, shares | 10,625,960 | ||
Shares issued for acquisition of a legal acquirer, value | $ 10,626 | (225,603) | (214,977) |
Net loss | (49,680) | (49,680) | |
Ending balance, shares at Jun. 30, 2017 | 429,848,898 | ||
Ending balance, value at Jun. 30, 2017 | $ 429,849 | $ (459,115) | $ (29,266) |
1. Basis of Presentation
1. Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
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, 2016 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 June 30, 2017 are not necessarily indicative of the results to be expected for the entire fiscal year ending December 31, 2017 or for any future period. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the audited financial statements for the year ended December 31, 2016 on Form 10. |
2. Organization and Business Ba
2. Organization and Business Background | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business Background | Cosmos Group Holdings Inc. (the “Company” or “COSG”) incorporated in the state of Nevada on August 14, 1987, under the name Shur De Cor, Inc. and engaged in developing certain mining claims. In April 1999, Shur De Cor merged with Interactive Marketing Technology, a New Jersey corporation that was engaged in the business of developing and direct marketing of consumer products. As the surviving company, Shur De Cor changed its name to Interactive Marketing Techology, Inc. Shur De Cor's then management resigned and the management of Interactive New Jersey became the Company’s management. The prior management of Shur De Cor retained Shur De Cor’s business and assets. The Company filed a registration statement on Form 10-SB on January 19, 2000. The Company, through a wholly owned subsidiary, IMT's Plumber, Inc., produced, marketed, and sold a licensed product called the Plumber's Secret, which was discontinued in fiscal 2001. In May 2002, the Company ceased to actively pursue its product development and marketing business and actively sought to either acquire a third party, merge with a third party or pursue a joint venture with a third party in order to re-enter its former business of development and direct marketing of proprietary consumer products in the United States and worldwide. On November 17, 2004, the Company acquired MPL, a company organized under the laws of the British Virgin Islands, and its subsidiaries in accordance with the terms of a Share Exchange Agreement executed by the parties (the “2004 Agreement”). In connection with the acquisition, the Company issued an aggregate of 109,623,006 shares of its common stock to Imperial International Limited, a company incorporated under the laws of the British Virgin Islands (“Imperial”), the sole shareholder of MPL, in exchange for 100% of the issued and outstanding shares of MPL capital stock (the "2004 Share Exchange"). Upon completion of the share exchange, MPL became the Company's wholly owned subsidiary and the Company’s former owner transferred control of the Company to Imperial. The Company relied on Rule 506 of Regulation D of the Securities Act of 1933, as amended (the "Act"), in regard to the shares that we issued pursuant to the 2004 Share Exchange. The Company treated this transaction as a qualified "business combination" as defined by Rule 501(d). The Company relied on the exemption from registration pursuant to Section 4(2) of, and or Regulation D promulgated under, the Act in issuing the Company’s securities. In connection with the 2004 Share Exchange, the Company: (i) changed its name from Interactive Marketing Technology, Inc. to China Artists Agency, Inc. ("China Artists"); (ii) obtained a new stock symbol, "CAAY", and CUSIP Number, effective on December 21, 2004; (iii) increased its authorized common stock to 200,000,000 shares; (iv) effectuated a 1 for 1.69 reverse stock split; and (v) spun off the Company’s existing business into a separate public company, All Star Marketing, Inc., a Nevada corporation ("All Star"). All Star was formed as a wholly owned subsidiary of the Company. The Spin-off was satisfied by means of a pro-rata share dividend to the Company's shareholders of record as of December 10, 2004. The purpose of the Spin-Off was to allow the subsidiary to operate as a separate public company and raise working capital through the sale of its own equity. This allowed the Company’s management to focus on its business, while at the same time, allowing the spun-off company to have greater exposure by trading as an independent public company. Additionally, the shareholders and the market would then more easily identify the results and performance of the Company as a separate entity from that of All Star. In August 2005, the Company changed its name to China Entertainment Group, Inc. and, effective August 9, 2005, obtained a new stock symbol "CGRP", and CUSIP Number. Because the Company failed to generate revenues in its new business, prior management commenced litigation in the Superior Court for Los Angeles County California which action was removed to the United States District Court for the Central District of California Case No. CV07-1068 GHK. On January 30, 2008, the parties entered into a Settlement Agreement and Conditional Release (the “Settlement Agreement”), pursuant to which, among other things, the Company’s former management reacquired control of the Company and all assets related to the Chinese entertainment business were transferred out of the Company. The Company, under its former management, once again entered the business of locating products to develop and mass market. These efforts did not prove fruitful and the Company, while continuing its product development business, also began to seek another business to acquire. On January 22, 2010, the Company filed a Form 15-12G to withdraw from its reporting obligations. Effective July 22, 2010, the Company merged with Safe and Secure TV Channel, LLC, a Delaware limited liability company (the “Merger”). In connection with the Merger, the management of the Company resigned and was replaced by the management and principals of Safe and Secure TV Channel, LLC. The holders of interests in Safe and Secure TV Channel, LLC exchanged their interests for approximately 50.2% of the issued and outstanding stock of the Company. In September 2010, the Company effectuated a 9.85 for one stock split to shareholders of record as of August 23, 2010. After the Merger, the Company became a television network and multimedia information and distribution company focused on serving the homeland security and emergency preparedness industry. On February 15, 2016, the Company sold to Asia Cosmos Group Limited, a private limited liability company incorporated under the laws of British Virgin Islands (“ACOSG”), 10,000,000 shares of its common stock at a per share price of $0.027. ACOSG’s sole shareholder is Miky Wan. The Company relied on the exemption from registration pursuant to Section 4(2) of, and Regulation D and/or Regulation S promulgated under the Act in selling the Company’s securities to ACOSG. In connection with the private placement to ACOSG, a change of control occurred and Bryan Glass resigned from his position as President, Secretary, Treasurer and Chairman of the Company. Miky Wan was appointed to serve as Chief Executive Officer, Chief Operating Officer, President and Director, effective February 19, 2016. Peter Tong, our Chief Financial Officer, Secretary and director continued in his positions with the Company. Calvin K.W. Lai, Anthony H.H. Chan, Jenher Jeng, Alice K.M. Tang, Connie Y.M. Kwok were appointed to serve on our Board of Directors effective February 19, 2016. Effective February 26, 2016, the Company changed its name to Cosmos Group Holdings Inc. and filed a Certificate of Amendment to such effect with the Nevada Secretary of State. The name change and the related stock symbol change to “COSG” were approved by the Financial Industry Regulatory Authority on March 31, 2016. The Company also increased the number of its authorized common stock, par value $0.001, from 90,000,0000 shares to 500,000,000 and its preferred stock, par value $0.001, from 10,000,000 to 30,000,000 shares. After the private placement, the Company shifted its business plan to focus on acquiring undervalued companies including those in the Greater China region. On May 12, 2017, the Company acquired all of the issued and outstanding shares of Lee Tat from Mr. Koon Wing CHEUNG, Lee Tat’s sole shareholder, in exchange for 219,222,938 shares of our issued and outstanding common stock. In connection with the Lee Tat acquisition, Miky Wan resigned from her positions as Chief Executive Officer and Chief Operating Officer and Koon Wing CHEUNG and Yongwei HU were appointed to serve as our Chief Executive Officer and Chief Operating Officer, respectively, and also as our directors. In addition, Anthony H.H. CHAN and Alice K. M. TANG resigned from their positions as directors, and Zhigang LIAO and Weiming CHEN were appointed to fill the vacancies created by their resignations. The Company relied on the exemption from registration pursuant to Section 4(2) of, and Regulation D and/or Regulation S promulgated under the Act in selling the Company’s securities to the shareholders of Lee Tat. Prior to the acquisition, the Company was considered as a shell company due to its nominal assets and limited operation. Upon the acquisition, Lee Tat will comprise the ongoing operations of the combined entity and its senior management will serve as the senior management of the combined entity, Lee Tat is deemed to be the accounting acquirer for accounting purposes. The transaction will be treated as a recapitalization of the Company. Accordingly, the consolidated assets, liabilities and results of operations of the Company will become the historical financial statements of Lee Tat, and the Company’s assets, liabilities and results of operations will be consolidated with Lee Tat beginning on the acquisition date. Lee Tat was the legal acquiree but deemed to be the accounting acquirer. The Company was the legal acquirer but deemed to be the accounting acquiree in the reverse merger. The historical financial statements prior to the acquisition are those of the accounting acquirer (Lee Tat). Historical stockholders’ equity of the accounting acquirer prior to the merger are retroactively restated (a recapitalization) for the equivalent number of shares received in the merger. Operations prior to the merger are those of the acquirer. After completion of the share exchange transaction, the Company’s consolidated financial statements include the assets and liabilities, the operations and cash flow of the accounting acquirer. 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 Principal activities Particulars of issued/ Effective interest Cosmo Group International Holdings Limited British Virgin Islands Investment holding 50,000 shares at 100% Asia Cosmos Group (Hong Kong) Limited Hong Kong Corporate 10,000 ordinary shares at HK$1 each 100% Lee Tat Transportation International Limited Hong Kong Logistic and delivery 10,000 ordinary shares at HK$1 each 100% COSG and its subsidiaries are hereinafter referred to as (the “Company”). |
3. Going Concern Uncertainties
3. Going Concern Uncertainties | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern Uncertainties | These condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future. As shown in the accompanying financial statements, the Company suffered from a negative working capital of $91,281 and capital deficit of $29,266 as at June 30, 2017. The continuation of the Company is dependent upon the continuing financial support of its stockholders. Management believes this funding will continue, and is also actively seeking new investors to obtain the additional fund to finance its operating activities. Management believes the existing stockholder or external borrowings will provide the additional cash to meet the Company’s obligations as it become due. 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 for a reasonable period of time. These condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result in the Company not being able to continue as a going concern. |
4. Summary of Significant Accou
4. Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
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 In preparing these condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheet and revenues and expenses during the periods reported. Actual results may differ from these estimates. · Basis of consolidation The condensed consolidated financial statements include the financial statements of COSG and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation. · Cash and cash equivalents Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. · 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 June 30, 2017, there was no allowance for doubtful accounts. · Property, plant and equipment Property, 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. Depreciation expense for the three months ended June 30, 2017 and 2016 was $4,958 and $4,990, respectively. Depreciation expense for the six months ended June 30, 2017 and 2016 was $9,917 and $9,979, respectively. · Impairment of long-lived assets In accordance with the provisions of ASC Topic 360, “ Impairment or Disposal of Long-Lived Assets · Revenue recognition In accordance with the ASC Topic 605, “Revenue Recognition” Revenue is recognized in full upon completion of delivery to the receiver’s location. · 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 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 and six months ended June 30, 2017 and 2016, the Company did not have any interest and penalties associated with tax positions. As of June 30, 2017, 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. · Finance leases Leases that transfer substantially all the rewards and risks of ownership to the lessee, other than legal title, are accounted for as finance leases. Substantially all of the risks or benefits of ownership are deemed to have been transferred if any one of the four criteria is met: (i) transfer of ownership to the lessee at the end of the lease term, (ii) the lease containing a bargain purchase option, (iii) the lease term exceeding 75% of the estimated economic life of the leased asset, (iv) the present value of the minimum lease payments exceeding 90% of the fair value. At the inception of a finance lease, the Company as the lessee records an asset and an obligation at an amount equal to the present value of the minimum lease payments. The leased asset is amortized over the shorter of the lease term or its estimated useful life if title does not transfer to the Company, while the leased asset is depreciated in accordance with the Company’s depreciation policy if the title is to eventually transfer to the Company. The periodic rent payments made during the lease term are allocated between a reduction in the obligation and interest element using the effective interest method in accordance with the provisions of ASC Topic 835-30, “Imputation of Interest” · Net 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 · 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 of financial instruments The carrying value of the Company’s financial instruments (excluding short-term bank borrowing and note payable): cash and cash equivalents, accounts and retention receivable, prepayments and other receivables, accounts payable, income tax payable, amount due to a related party, other payables and accrued liabilities approximate at their fair values because of the short-term nature of these financial instruments. Management believes, based on the current market prices or interest rates for similar debt instruments, the fair value of short-term bank borrowings and note payable approximate the carrying amount. The Company also follows the guidance of the ASC Topic 820-10, “ Fair Value Measurements and Disclosures · Level 1 · Level 2 : · Level 3 Fair value estimates are made at a specific point in time based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. · Recent accounting pronouncements The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations. |
5. Amounts due to Related Parti
5. Amounts due to Related Parties | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Amounts due to Related Parties | June 30, 2017 December 31, 2016 (Unaudited) (Audited) Balances due to related parties: Koon Wing CHEUNG, Chief Executive Officer and Director $ 5,117 $ 41,306 Cosmos Links International Holding Limited 34,631 – Asia Cosmos Group Limited 10,000 – Asia Cosmos Wealth Management Limited 1 – $ 49,749 $ 43,106 The balances were unsecured, interest-free and repayable upon demand. Imputed interest from related party loan is not significant. |
6. Obligation under Finance Lea
6. Obligation under Finance Lease | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Obligation under Finance Lease | 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. The obligation under the finance lease is as follows: June 30, 2017 December 31, 2016 (Unaudited) (Audited) Finance lease $ 59,458 $ 71,022 Less: interest expense (1,125 ) (2,265 ) Net present value of finance lease $ 58,333 $ 68,757 Current portion $ 20,000 $ 20,124 Non-current portion 38,333 48,633 Total $ 58,333 $ 68,757 As of June 30, 2017, the maturities of the finance lease for each of the three years are as follows: Years ending June 30: 2018 $ 20,000 2019 20,000 2020 18,333 Total $ 58,333 |
7. Income Taxes
7. Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | COSG is registered in the State of Nevada and is subject to the tax laws of United States of America. As of June 30, 2017, the operation in the United States of America incurred $1,842,542 of cumulative net operating losses which can be carried forward to offset future taxable income. The net operating loss carryforwards begin to expire in 2037, if unutilized. The Company has provided for a full valuation allowance against the deferred tax assets of $626,464 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 a standard income tax rate of 16.5% on the assessable income arising in Hong Kong during its tax year. The reconciliation of income tax rate to the effective income tax rate for the six months ended June 30, 2017 and 2016 is as follows: Six months ended June 30, 2017 2016 Income (loss) before income taxes from HK operation $ 3,443 $ (63,147 ) Statutory income tax rate 16.5% 16.5% Income tax expense at statutory rate 568 (10,419 ) Tax effect from non-deductible items 1,636 1,646 Tax effect from deductible items (1,977 ) (2,777 ) Tax losses (227 ) 11,550 Income tax expense $ – $ – The following table sets forth the significant components of the deferred tax assets and liabilities of the Company as of June 30, 2017 and December 31, 2016: June 30, 2017 December 31, 2016 (Unaudited) (Audited) Deferred tax liabilities: Accelerated depreciation $ 13,132 $ 12,871 Deferred tax assets: Net operating loss carryforwards 4,768 5,026 Less: valuation allowance (4,768 ) (5,026 ) Deferred tax assets, net $ – $ – As of June 30, 2017, the Company incurred $29,075 of cumulative net operating losses which can be carried forward to offset future taxable income at no expiration. The Company has provided for a full valuation allowance against the deferred tax assets of $4,768 at June 30, 2017, 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. |
8. Stockholders' Equity
8. Stockholders' Equity | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | The Company has 500,000,000 common shares authorized with a par value of $0.001 per share. On January 13, 2017, the Company issued 200,000,000 shares of its common stock for cash proceed of $200,000 for working capital purpose. On May 12, 2017, the Company completed the acquisition of 100% equity interest in Lee Tat Transportation International Limited in exchange of 219,222,938 shares of its common stock. These common stocks were subsequently issued to the shareholders of Lee Tat Transportation International Limited. As of June 30, 2017, the Company had a total of 429,848,898 shares of its common stock issued and outstanding. |
9. Related Party Transactions
9. Related Party Transactions | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Advances from Stockholder From time to time, the stockholder and director of the Company advanced funds to the Company for working capital purpose. Those advances are unsecured, non-interest bearing and due on demand. The imputed interest on the loan from a related party was not significant. Free Office Space from its Stockholder The Company has been provided office space by its stockholder at no cost. The management determined that such cost is nominal and did not recognize the rent expense in its financial statements. Apart from the transactions and balances detailed elsewhere in these accompanying financial statements, the Company has no other significant or material related party transactions during the periods presented. |
10. Concentrations of Risk
10. Concentrations of Risk | 6 Months Ended |
Jun. 30, 2017 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Risk | The Company is exposed to the following concentrations of risk: (a) Major customers For the three and six months ended June 30, 2017 and 2016, the customers who accounts for 10% or more of the Company’s revenues and its outstanding receivable balances as at period-end dates, are presented as follows: Three months ended June 30, 2017 June 30, 2017 Customers Sales Percentage Accounts Customer B $ 73,022 40% $ – Customer C 57,302 32% – Total: $ 130,324 72% Total: $ – Six months ended June 30, 2017 June 30, 2017 Customers Sales Percentage Accounts Customer B $ 139,472 50% $ – Customer C 57,302 21% – Total: $ 196,774 71% Total: $ – Three months ended June 30, 2016 June 30, 2016 Sales Percentage Accounts Customer A $ 19,002 21% $ – Customer B 21,816 24% – Customer C 33,729 37% – $ 74,547 82% $ – Six months ended June 30, 2016 June 30, 2016 Sales Percentage Accounts Customer A $ 19,002 10% $ – Customer B 21,816 12% – Customer C 33,729 18% – $ 74,547 40% $ – All customers are located in Hong Kong. (b) Major vendors For the three and six months ended June 30, 2017, one vender represented more than 10% of the Company’s operating cost. This vendor accounted for 10% of the Company’s operating cost amounting to $11,346 and $20,775, respectively with $0 of accounts payable at June 30, 2017. For the three and six months ended June 30, 2016, one vender represented more than 10% of the Company’s operating cost. This vendor accounted for 18% of the Company’s operating cost amounting to $19,627 and $30,272, respectively with $0 of accounts payable at June 30, 2016. All vendors are located in Hong Kong. (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 borrowing under notes and bank borrowings. 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 June 30, 2017, borrowing under finance lease was at fixed rate. |
11. Commitments and Contingenci
11. Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (a) Operating lease commitments As of June 30, 2017, the Company has no material commitments under operating leases. (b) Capital commitment As of June 30, 2017, the Company has no material capital commitments in the next twelve months. |
12. Subsequent Events
12. Subsequent Events | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | In accordance with ASC Topic 855, “ Subsequent Events |
4. Summary of Significant Acc19
4. Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Use of estimates | · Use of estimates In preparing these condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheet and revenues and expenses during the periods reported. Actual results may differ from these estimates. |
Basis of consolidation | · Basis of consolidation The condensed consolidated financial statements include the financial statements of COSG and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation. |
Cash and cash equivalents | · Cash and cash equivalents Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. |
Accounts receivable | · 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 June 30, 2017, there was no allowance for doubtful accounts. |
Property, plant and equipment | · Property, plant and equipment Property, 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. Depreciation expense for the three months ended June 30, 2017 and 2016 was $4,958 and $4,990, respectively. Depreciation expense for the six months ended June 30, 2017 and 2016 was $9,917 and $9,979, respectively. |
Impairment of long-lived assets | · Impairment of long-lived assets In accordance with the provisions of ASC Topic 360, “ Impairment or Disposal of Long-Lived Assets |
Revenue recognition | · Revenue recognition In accordance with the ASC Topic 605, “Revenue Recognition” Revenue is recognized in full upon completion of delivery to the receiver’s location. |
Comprehensive income | · Comprehensive income ASC Topic 220, “Comprehensive Income”, |
Income taxes | · Income taxes Income taxes are determined in accordance with the provisions of ASC Topic 740, “Income Taxes 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 and six months ended June 30, 2017 and 2016, the Company did not have any interest and penalties associated with tax positions. As of June 30, 2017, 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. |
Finance leases | · Finance leases Leases that transfer substantially all the rewards and risks of ownership to the lessee, other than legal title, are accounted for as finance leases. Substantially all of the risks or benefits of ownership are deemed to have been transferred if any one of the four criteria is met: (i) transfer of ownership to the lessee at the end of the lease term, (ii) the lease containing a bargain purchase option, (iii) the lease term exceeding 75% of the estimated economic life of the leased asset, (iv) the present value of the minimum lease payments exceeding 90% of the fair value. At the inception of a finance lease, the Company as the lessee records an asset and an obligation at an amount equal to the present value of the minimum lease payments. The leased asset is amortized over the shorter of the lease term or its estimated useful life if title does not transfer to the Company, while the leased asset is depreciated in accordance with the Company’s depreciation policy if the title is to eventually transfer to the Company. The periodic rent payments made during the lease term are allocated between a reduction in the obligation and interest element using the effective interest method in accordance with the provisions of ASC Topic 835-30, “Imputation of Interest” |
Net income per share | · Net income per share The Company calculates net income per share in accordance with ASC Topic 260, “Earnings per Share.” |
Foreign currencies translation | · Foreign currencies translation Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the 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 |
Related parties | · Related parties Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Companies are also considered to be related if they are subject to common control or common significant influence. |
Segment reporting | · Segment reporting ASC Topic 280, “ Segment Reporting |
Fair value of financial instruments | · Fair value of financial instruments The carrying value of the Company’s financial instruments (excluding short-term bank borrowing and note payable): cash and cash equivalents, accounts and retention receivable, prepayments and other receivables, accounts payable, income tax payable, amount due to a related party, other payables and accrued liabilities approximate at their fair values because of the short-term nature of these financial instruments. Management believes, based on the current market prices or interest rates for similar debt instruments, the fair value of short-term bank borrowings and note payable approximate the carrying amount. The Company also follows the guidance of the ASC Topic 820-10, “ Fair Value Measurements and Disclosures · Level 1 · Level 2 : · Level 3 Fair value estimates are made at a specific point in time based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. |
Recent accounting pronouncements | · Recent accounting pronouncements The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations. |
2. Organization and Business 20
2. Organization and Business Background (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of subsidiaries | Name Place of incorporation Principal activities Particulars of issued/ Effective interest Cosmo Group International Holdings Limited British Virgin Islands Investment holding 50,000 shares at 100% Asia Cosmos Group (Hong Kong) Limited Hong Kong Corporate 10,000 ordinary shares at HK$1 each 100% Lee Tat Transportation International Limited Hong Kong Logistic and delivery 10,000 ordinary shares at HK$1 each 100% |
5. Amounts due to Related Par21
5. Amounts due to Related Parties (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Amounts due to related parties | June 30, 2017 December 31, 2016 (Unaudited) (Audited) Balances due to related parties: Koon Wing CHEUNG, Chief Executive Officer and Director $ 5,117 $ 41,306 Cosmos Links International Holding Limited 34,631 – Asia Cosmos Group Limited 10,000 – Asia Cosmos Wealth Management Limited 1 – $ 49,749 $ 43,106 |
6. Obligation under Finance L22
6. Obligation under Finance Lease (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Schedule of financed lease | June 30, 2017 December 31, 2016 (Unaudited) (Audited) Finance lease $ 59,458 $ 71,022 Less: interest expense (1,125 ) (2,265 ) Net present value of finance lease $ 58,333 $ 68,757 Current portion $ 20,000 $ 20,124 Non-current portion 38,333 48,633 Total $ 58,333 $ 68,757 |
Maturities of finance lease | Years ending June 30: 2018 $ 20,000 2019 20,000 2020 18,333 Total $ 58,333 |
7. Income Taxes (Tables)
7. Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income tax reconciliation | Six months ended June 30, 2017 2016 Income (loss) before income taxes from HK operation $ 3,443 $ (63,147 ) Statutory income tax rate 16.5% 16.5% Income tax expense at statutory rate 568 (10,419 ) Tax effect from non-deductible items 1,636 1,646 Tax effect from deductible items (1,977 ) (2,777 ) Tax losses (227 ) 11,550 Income tax expense $ – $ – |
Schedule of deferred tax assets and liabilities | June 30, 2017 December 31, 2016 (Unaudited) (Audited) Deferred tax liabilities: Accelerated depreciation $ 13,132 $ 12,871 Deferred tax assets: Net operating loss carryforwards 4,768 5,026 Less: valuation allowance (4,768 ) (5,026 ) Deferred tax assets, net $ – $ – |
10. Concentrations of Risk (Tab
10. Concentrations of Risk (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Risks and Uncertainties [Abstract] | |
Schedule of customer concentrations | Three months ended June 30, 2017 June 30, 2017 Customers Sales Percentage Accounts Customer B $ 73,022 40% $ – Customer C 57,302 32% – Total: $ 130,324 72% Total: $ – Six months ended June 30, 2017 June 30, 2017 Customers Sales Percentage Accounts Customer B $ 139,472 50% $ – Customer C 57,302 21% – Total: $ 196,774 71% Total: $ – Three months ended June 30, 2016 June 30, 2016 Sales Percentage Accounts Customer A $ 19,002 21% $ – Customer B 21,816 24% – Customer C 33,729 37% – $ 74,547 82% $ – Six months ended June 30, 2016 June 30, 2016 Sales Percentage Accounts Customer A $ 19,002 10% $ – Customer B 21,816 12% – Customer C 33,729 18% – $ 74,547 40% $ – |
2. Organization and Business 25
2. Organization and Business Background (Details) | 6 Months Ended |
Jun. 30, 2017 | |
Cosmo Group International Holdings Limited [Member] | |
Ownership percentage | 100.00% |
Place of incorporation | British Virgin Islands |
Principal activities | Investment holding |
Registered share capital | 50,000 shares at US$1 each |
Asia Cosmos Group (HK) Limited [Member] | |
Ownership percentage | 100.00% |
Place of incorporation | Hong Kong |
Principal activities | Corporate |
Registered share capital | 10,000 ordinary shares at HK$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$1 each |
3. Going Concern Uncertainties
3. Going Concern Uncertainties (Details Narrative) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Working capital | $ (91,281) | |
Capital deficit | $ (29,266) | $ 35,391 |
4. Summary of Significant Acc27
4. Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Allowance for doubtful accounts | $ 0 | $ 0 | $ 0 | ||
Depreciation expense | 4,958 | $ 4,990 | 9,917 | $ 9,979 | |
Asset impairment charge | 0 | $ 0 | 0 | $ 0 | |
Uncertain tax positions | $ 0 | $ 0 | $ 0 | ||
Service vehicle [Member] | |||||
Expected useful life of property | 8 years |
5. Amounts due to Related Par28
5. Amounts due to Related Parties (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Due to related parties | $ 49,749 | $ 41,306 |
Koon Wing CHEUNG [Member] | ||
Due to related parties | 5,117 | 41,306 |
Cosmos Links International [Member] | ||
Due to related parties | 34,631 | 0 |
Asia Cosmos Group (HK) Limited [Member] | ||
Due to related parties | 10,000 | 0 |
Asia Cosmos Wealth Management Limited [Member] | ||
Due to related parties | $ 1 | $ 0 |
6. Obligation under Finance L29
6. Obligation under Finance Lease (Details - Finance lease) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Notes to Financial Statements | ||
Finance lease | $ 59,458 | $ 71,022 |
Less: interest expense | (1,125) | (2,265) |
Net present value of finance lease | 58,333 | 68,757 |
Current portion | 20,000 | 20,124 |
Non-current portion | 38,333 | 48,633 |
Total | $ 58,333 | $ 68,757 |
6. Obligation under Finance L30
6. Obligation under Finance Lease (Details - Maturities of finance lease) | Jun. 30, 2017USD ($) |
Notes to Financial Statements | |
Finance lease obligation | $ 58,333 |
6. Obligation under Finance L31
6. Obligation under Finance Lease (Details Narrative) | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Finance lease effective interest rate | 2.25% |
Finance lease maturity date | May 29, 2020 |
7. Income Taxes (Details - Inco
7. Income Taxes (Details - Income tax reconcilation) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income tax expense | $ 53 | $ 528 | $ 262 | $ 1,131 |
Hong Kong Profits Tax [Member] | ||||
Income (loss) before income taxes from HK operation | $ 3,443 | $ (63,147) | ||
Statutory income tax rate | 16.50% | 16.50% | ||
Income tax expense at statutory rate | $ 568 | $ (10,419) | ||
Tax effect from non-deductible items | 1,636 | 1,646 | ||
Tax effect from deductible items | (1,977) | (2,777) | ||
Tax losses | (227) | 11,550 | ||
Income tax expense | $ 0 | $ 0 |
7. Income Taxes (Details - Defe
7. Income Taxes (Details - Deferred taxes) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Deferred tax liabilities: | ||
Accelerated depreciation | $ 13,132 | $ 12,871 |
Deferred tax assets: | ||
Net operating loss carryforwards | 4,768 | 5,026 |
Less: valuation allowance | (4,768) | (5,026) |
Deferred tax assets, net | $ 0 | $ 0 |
7. Income Taxes (Details Narrat
7. Income Taxes (Details Narrative) | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Net operating loss carryforward | $ 1,842,542 |
Operating loss carryforward beginning expiration date | Dec. 31, 2037 |
Valuation allowance | $ 626,464 |
Hong Kong Profits Tax [Member] | |
Net operating loss carryforward | 29,075 |
Valuation allowance | $ 4,768 |
8. Stockholders' Equity (Detail
8. Stockholders' Equity (Details Narrative) | 6 Months Ended |
Jun. 30, 2017USD ($)shares | |
Lee Tat Transporation International Limited [Member] | |
Stock issued for acquisition, shares | 219,222,938 |
Working capital [Member] | |
Stock issued new, shares | 200,000,000 |
Proceeds from sale of stock | $ | $ 200,000 |
10. Concentrations of Risk (Det
10. Concentrations of Risk (Details - Concentration risk) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Sales Revenue, Net [Member] | ||||
Concentration risk percentage | 72.00% | 82.00% | 71.00% | 40.00% |
Revenues | $ 130,324 | $ 74,547 | $ 196,774 | $ 74,547 |
Sales Revenue, Net [Member] | Customer B [Member] | ||||
Concentration risk percentage | 40.00% | 24.00% | 50.00% | 12.00% |
Revenues | $ 73,022 | $ 21,816 | $ 139,472 | $ 21,816 |
Sales Revenue, Net [Member] | Customer A [Member] | ||||
Concentration risk percentage | 21.00% | 10.00% | ||
Revenues | $ 19,002 | $ 19,002 | ||
Sales Revenue, Net [Member] | Customer C [Member] | ||||
Concentration risk percentage | 32.00% | 37.00% | 21.00% | 18.00% |
Revenues | $ 57,302 | $ 33,729 | $ 57,302 | $ 33,729 |
Accounts Receivable [Member] | ||||
Concentration risk percentage | 0.00% | 0.00% | 0.00% | 0.00% |
Accounts Receivable [Member] | Customer B [Member] | ||||
Concentration risk percentage | 0.00% | 0.00% | 0.00% | 0.00% |
Accounts Receivable [Member] | Customer A [Member] | ||||
Concentration risk percentage | 0.00% | 0.00% | ||
Accounts Receivable [Member] | Customer C [Member] | ||||
Concentration risk percentage | 0.00% | 0.00% | 0.00% | 0.00% |
10. Concentrations of Risk (D37
10. Concentrations of Risk (Details Narrative) - One Vendor [Member] - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | |
Cost of Sales [Member] | ||
Concentration risk percentage | 10.00% | 10.00% |
Cost of sales | $ 19,627 | $ 30,272 |
Accounts Payable [Member] | ||
Concentration risk percentage | 0.00% | 0.00% |