Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 11, 2018 | |
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 | Mar. 31, 2018 | |
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 | 21,492,933 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,018 | |
Entity Small Business | true | |
Entity Emerging Growth | true |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 85,094 | $ 99,583 |
Restricted cash | 1,500,750 | 0 |
Accounts receivable | 1,957 | 0 |
Purchase deposits | 8,875,808 | 194,852 |
Deposit and prepayment | 77,959 | 75,813 |
Total current assets | 10,541,568 | 370,248 |
Non-current assets: | ||
Property, plant and equipment, net | 229,304 | 103,563 |
TOTAL ASSETS | 10,770,872 | 473,811 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 536,605 | 33,958 |
Amount due to a director | 489,761 | 378,256 |
Amounts due to related parties | 135,316 | 98,669 |
Customer deposits | 8,307,500 | 0 |
Bank borrowing | 1,495,000 | 0 |
Current portion of obligation under finance lease | 20,000 | 20,000 |
Income tax payable | 14,503 | 14,503 |
Total current liabilities | 10,998,685 | 545,386 |
Non-current liabilities: | ||
Deferred tax liabilities | 12,999 | 12,999 |
Obligation under finance leases | 23,333 | 28,333 |
Total non-current liabilities | 36,332 | 41,332 |
TOTAL LIABILITIES | 11,035,017 | 586,718 |
Commitments and contingencies | ||
Stockholders' deficit: | ||
Preferred stock, $0.001 par value; 30,000,000 shares authorized; no preferred stock issued | 0 | 0 |
Common stock, $0.001 par value; 2,000,000,000 shares authorized; 21,492,933 shares issued and outstanding as of March 31, 2018 and December 31, 2017 | 21,492 | 21,492 |
Accumulated other comprehensive loss | (5,294) | (5,294) |
Accumulated losses | (280,343) | (129,105) |
Total stockholders' deficit | (264,145) | (112,907) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 10,770,872 | $ 473,811 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ .001 | $ .001 |
Preferred stock, shares authorized | 30,000,000 | 30,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ .001 | $ .001 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 21,492,933 | 21,492,933 |
Common stock, shares outstanding | 21,492,933 | 21,492,933 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Revenues, net | $ 133,726 | $ 91,718 |
Cost of revenue | (119,330) | (75,587) |
Gross profit | 14,396 | 16,131 |
Operating expenses | ||
General and administrative | (165,172) | (15,650) |
Total operating expenses | (165,172) | (15,650) |
(LOSS) INCOME FROM OPERATIONS | (150,776) | 481 |
Other (expense) income: | ||
Interest income | 1 | 1 |
Interest expense | (563) | (566) |
Sundry income | 100 | 142 |
Total other income (expense) | (462) | (423) |
(LOSS) INCOME BEFORE INCOME TAXES | (151,238) | 58 |
Income tax expense | 0 | (209) |
NET LOSS | (151,238) | (151) |
Other comprehensive income (loss): | ||
COMPREHENSIVE LOSS | $ (151,238) | $ (151) |
Net loss per share - Basic | $ 0 | $ 0 |
Net loss per share - Diluted | $ 0 | $ 0 |
Weighted average common shares outstanding - Basic | 21,492,933 | 10,961,147 |
Weighted average common shares outstanding - Diluted | 21,492,933 | 10,961,147 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (151,238) | $ (151) |
Adjustments to reconcile net loss to net cash (used in) generated from operating activities | ||
Depreciation of property, plant and equipment | 20,135 | 4,989 |
Change in operating assets and liabilities: | ||
Accounts receivable | (1,957) | 39,740 |
Purchase deposits | (8,680,956) | 0 |
Deposits and prepayments | (2,146) | 0 |
Accounts payable and accrued liabilities | 502,647 | 2,270 |
Customer deposits | 8,307,500 | 0 |
Net cash (used in) generated from operating activities | (6,015) | 46,848 |
Cash flows from investing activities | ||
Purchase of property, plant and equipment | (145,876) | 0 |
Net cash used in investing activities | (145,876) | 0 |
Cash flows from financing activities: | ||
Advance from a related party | 36,647 | 0 |
Advance from (repayment to) a director | 111,505 | (11,610) |
Proceeds from bank borrowing | 1,495,000 | 0 |
Repayment of finance lease | (5,000) | (5,031) |
Net cash generated from (used in) provided by financing activities | 1,638,152 | (16,641) |
Net change in cash and cash equivalents and restricted cash | 1,486,261 | 30,207 |
Cash and cash equivalents and restricted cash, beginning of period | 99,583 | 1,581 |
Cash and cash equivalents and restricted cash, end of period | 1,585,844 | 31,788 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for interest | 563 | 566 |
Cash paid for tax | $ 0 | $ 0 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Stockholders' Equity (Deficit) (Unaudited) - 3 months ended Mar. 31, 2018 - USD ($) | Common Stock | Accumulated Other Comprehensive Income / Loss | Retained Earnings / Accumulated Deficit | Total |
Beginning balance, shares at Dec. 31, 2017 | 21,492,933 | |||
Beginning balance, value at Dec. 31, 2017 | $ 21,492 | $ (5,294) | $ (129,105) | $ (112,907) |
Net loss | (151,238) | (151,238) | ||
Ending balance, shares at Mar. 31, 2018 | 21,492,933 | |||
Ending balance, value at Mar. 31, 2018 | $ 21,492 | $ (5,294) | $ (280,343) | $ (264,145) |
1. Basis of Presentation
1. Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | NOTE — 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, 2017 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, 2018 are not necessarily indicative of the results to be expected for the entire fiscal year ending December 31, 2018 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, 2017. |
2. Organization and Business Ba
2. Organization and Business Background | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business Background | NOTE — ORGANIZATION AND BUSINESS BACKGROUND Cosmos Group Holdings Inc. (the “Company” or “COSG”) was 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, delivery of freight from port to the designated destination, upon the customers’ request. From the first quarter of 2018, the Company actively anticipated a loyalty membership program which offered the members purchasing goods or services with a discounted price. Such service or goods could be variable and the market we have anticipated in the first quarter is motor vehicles market in the People’s Republic of China. Description of subsidiaries Name Place of incorporation and kind of legal entity Principal activities and place of operation Particulars of issued/ registered share capital Effective interest held Lee Tat International Holdings Limited British Virgin Islands Investment holding 50,000 shares at US$1 each 100% Lee Tat Transportation International Limited Hong Kong Logistic and delivery 10,000 ordinary shares for HK$10,000 100% COSG International Holdings Limited British Virgin Islands Investment holding 10,000 shares at US$1 each 100% COSG Car International Limited Hong Kong Investment holding 10,000 ordinary shares for HK$10,000 100% Foshan Cosmos Xi Yue Car Rental Company Limited People’s Republic Provision of car rental service US$300,000,000 100% COSG and its subsidiaries are hereinafter referred to as (the “Company”). |
3. Summary of Significant Accou
3. Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE — 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 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. · Restricted cash The Company maintains restricted cash accounts held with financial institutions in the PRC, which are pledged as collateral for short-term bank borrowing that will be expired or matured in the next twelve months. · 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, 2018, 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 March 31, 2018 and 2017 were $20,135 and $4,989, as part of cost of revenue, respectively. · Impairment of long-lived assets In accordance with the provisions of ASC Topic 360, “ Impairment or Disposal of Long-Lived Assets · Revenue recognition ASC Topic 606, “ Revenue from Contracts with Customers” Revenues are recognized when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that the Company expects to receive 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. · 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 months ended March 31, 2018 and 2017, the Company did not have any interest and penalties associated with tax positions. As of March 31, 2018, the Company did not have any significant unrecognized uncertain tax positions. The Company conducts the majority of its businesses in the PRC 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 a 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 loss per share The Company calculates net loss 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 and the PRC maintain their books and records in their local currency, Hong Kong Dollars ("HK$") and Renminbi Yuan (“RMB”), which is the functional currency as being the primary currency of the economic environment in which these entities operate. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not the US$ are translated into US$, in accordance with ASC Topic 830-30, “ Translation of Financial Statement Translation of amounts from its reporting currencies into US$ has been made at the following exchange rates for the respective period: March 31, 2018 December 31, 2017 Period-end HK$:US$1 exchange rate 7.8 7.8 Average period HK$:US$1 exchange rate 7.8 7.8 Period-end RMB:US$1 exchange rate 6.78 6.78 Average period RMB:US$1 exchange rate 6.78 6.78 · 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 · Commitments and contingencies The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time, that these matters will have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. · Fair value of financial instruments The carrying value of the Company’s financial instruments (excluding short-term bank borrowing and finance lease obligation): cash and cash equivalents, accounts receivable, purchase deposits, deposit and prepayments, accounts payable and accrued liabilities, income tax payable and amounts due to related parties 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 finance lease obligation 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 In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update ("ASU") 2014-09, “ Revenue from Contracts with Customers (Topic 606).” In August 2016, the FASB issued ASU 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. In February 2016, the FASB issued ASU 2016-02, “ Leases In November 2016, the FASB issued ASU 2016-18, “ Statement of Cash Flows (Topic 230): Restricted Cash 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. |
4. Going Concern Uncertainties
4. Going Concern Uncertainties | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern Uncertainties | NOTE — 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 experienced a net loss of $151,238 for the three months ended March 31, 2018. Also, at March 31, 2018, the Company has incurred an accumulated deficit of $280,343 and working capital deficit of $457,117. The continuation of the Company as a going concern through March 31, 2019 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. |
5. Purchase Deposits
5. Purchase Deposits | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Purchase Deposits | NOTE—5 PURCHASE DEPOSITS Purchase deposits represent deposit payments made to the vendor for procurement, which are unsecured, interest-free and relieved against account payable when the goods are received by the Company. |
6. Amounts due to Related Parti
6. Amounts due to Related Parties | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Amounts due to Related Parties | NOTE — AMOUNTS DUE TO RELATED PARTIES The amounts represented temporary advances to the Company by related parties and a director of the Company, which were unsecured, interest-free and had no fixed terms of repayments. Imputed interests from related parties’ loan are not significant. |
7. Bank Borrowing
7. Bank Borrowing | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Bank Borrowing | NOTE — BANK BORROWING During the three months ended March 31, 2018, the Company obtained the bank borrowing of $1,495,000 (equivalent to RMB10,140,000), with annual interest rate of 5% above the Bank of China Benchmark Lending Rate, monthly payable and repayable in February and March 2019, which is pledged by the restricted cash of the Company. |
8. Customer Deposits
8. Customer Deposits | 3 Months Ended |
Mar. 31, 2018 | |
Banking and Thrift [Abstract] | |
Customer Deposits | NOTE — CUSTOMER DEPOSITS Customer deposits consist of amounts received from customers relating to the sale of motor vehicles in the PRC, which are interest free, unsecured and non-refundable. The Company receives these funds and recognizes them as a current liability until the revenue can be recognized upon the delivery of the title of motor vehicle to the customers in three months’ period from the date of signing the contracts. |
9. Obligation under Finance Lea
9. Obligation under Finance Lease | 3 Months Ended |
Mar. 31, 2018 | |
Leases [Abstract] | |
Obligation under Finance Lease | NOTE — OBLIGATION UNDER FINANCE LEASES 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: March 31, 2018 December 31, 2017 (Unaudited) (Audited) Finance lease $ 45,021 $ 50,584 Less: interest expense (1,688 ) (2,251 ) $ 43,333 $ 48,333 Current portion $ 20,000 $ 20,000 Non-current portion 23,333 28,333 Total $ 43,333 $ 48,333 As of March 31, 2018, the maturities of the finance lease for each of the three years are as follows: Period ending March 31: 2019 $ 20,000 2020 20,000 2021 3,333 Total: $ 43,333 |
10. Income Taxes
10. Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE — INCOME TAXES The Company generated an operating loss for the three months ended March 31, 2018 and 2017 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, 2018, the operation in the United States of America incurred $1,952,550 of cumulative net operating losses which can be carried forward to offset future taxable income. The net operating loss carryforwards begin to expire in 2038, if unutilized. The Company has provided for a full valuation allowance against the deferred tax assets of $410,035 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. 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 three months ended March 31, 2018 and 2017 is as follows: Three months ended March 31, 2018 2017 (Loss) income before income taxes $ (148,443 ) $ 58 Statutory income tax rate 16.5% 16.5% Income tax expense at statutory rate (24,493 ) 10 Tax effect from non-deductible items 3,428 823 Tax effect from non-taxable item (604 ) – Tax effect from deductible items (4,456 ) (1,032 ) Tax loss carryforwards 26,125 408 Income tax expense $ – $ 209 The PRC The Company’s subsidiary operating in the PRC is subject to the Corporate Income Tax Law of the People’s Republic of China at a unified income tax rate of 25%. For the three months ended March 31, 2018, the Company has generated operating loss in the PRC. |
11. Stockholders' Deficit
11. Stockholders' Deficit | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Deficit | NOTE — STOCKHOLDERS’ DEFICIT As of March 31, 2018 and December 31, 2017, the Company had a total of 21,492,933 and 21,492,933 shares of its common stock issued and outstanding, respectively. |
12. Related Party Transactions
12. Related Party Transactions | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE—12 RELATED PARTY TRANSACTIONS The Company has been provided free office space by its stockholder. The management determined that such cost is nominal and did not recognize the rent expense in its condensed consolidated financial statements. Apart from the transactions and balances detailed elsewhere in these accompanying condensed consolidated financial statements, the Company has no other significant or material related party transactions during the periods presented. |
13. Concentrations of Risk
13. Concentrations of Risk | 3 Months Ended |
Mar. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Risk | NOTE — CONCENTRATIONS OF RISK The Company is exposed to the following concentrations of risk: (a) Major customer For the three months ended March 31, 2018 and 2017, 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 March 31, 2018 March 31, 2018 Customers Revenues Percentage Accounts Customer A $ 77,627 58% $ – Customer D 43,032 32% – Total: $ 120,659 90% Total: $ – Three months ended March 31, 2017 March 31, 2017 Customers Revenues Percentage Accounts Customer D $ 66,861 73% $ – Customer B 11,612 13% – Total: $ 78,473 86% Total: $ – All customers are located in the Hong Kong. (b) Major vendors For the three months ended March 31, 2018, one vendor represented more than 10% of the Company’s purchase. This vendor (Vendor A) accounted for 57% of the Company’s purchase amounting to $32,717, with $0 of accounts payable. For the three months ended March 31, 2017, one vendor represented more than 10% of the Company’s operating cost. This vendor accounted for 18% of the Company’s operating cost amounting to $9,429 with $0 of accounts payable. All vendors are located in the Hong Kong. (c) Credit risk Financial instruments that are potentially subject to credit risk consist principally of trade receivables. The Company believes the concentration of credit risk in its trade receivables is substantially mitigated by its ongoing credit evaluation process and relatively short collection terms. The Company does not generally require collateral from customers. The Company evaluates the need for an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. (d) Interest rate risk As the Company has no significant interest-bearing assets, the Company’s income and operating cash flows are substantially independent of changes in market interest rates. The Company’s interest-rate risk arises from finance lease and bank borrowings. The Company manages interest rate risk by varying the issuance and maturity dates variable rate debt, limiting the amount of variable rate debt, and continually monitoring the effects of market changes in interest rates. As of March 31, 2018, borrowings under finance leases were at fixed rates and short-term bank borrowings were at variable rates. (e) Exchange rate risk The reporting currency of the Company is US$, to date the majority of the revenues and costs are denominated in RMB and a significant portion of the assets and liabilities are denominated in RMB. As a result, the Company is exposed to foreign exchange risk as its revenues and results of operations may be affected by fluctuations in the exchange rate between US$ and RMB. If RMB depreciates against US$, the value of RMB revenues and assets as expressed in US$ financial statements will decline. The Company does not hold any derivative or other financial instruments that expose to substantial market risk. (f) Economic and political risks The Company's operations are conducted in the PRC. Accordingly, the Company's business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy. The Company's operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company's results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation. |
14. Subsequent Events
14. Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE — SUBSEQUENT EVENTS The Company evaluated subsequent events through the date the financial statements were issued and filed with this Form 10-Q. There were no subsequent events that required recognition or disclosure. |
3. Summary of Significant Acc21
3. Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
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 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. |
Restricted cash | · Restricted cash The Company maintains restricted cash accounts held with financial institutions in the PRC, which are pledged as collateral for short-term bank borrowing that will be expired or matured in the next twelve months. |
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 March 31, 2018, 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 March 31, 2018 and 2017 were $20,135 and $4,989, as part of cost of revenue, 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 ASC Topic 606, “ Revenue from Contracts with Customers” Revenues are recognized when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that the Company expects to receive 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. |
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 months ended March 31, 2018 and 2017, the Company did not have any interest and penalties associated with tax positions. As of March 31, 2018, the Company did not have any significant unrecognized uncertain tax positions. The Company conducts the majority of its businesses in the PRC 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 a 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 loss per share | · Net loss per share The Company calculates net loss 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 and the PRC maintain their books and records in their local currency, Hong Kong Dollars ("HK$") and Renminbi Yuan (“RMB”), which is the functional currency as being the primary currency of the economic environment in which these entities operate. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not the US$ are translated into US$, in accordance with ASC Topic 830-30, “ Translation of Financial Statement Translation of amounts from its reporting currencies into US$ has been made at the following exchange rates for the respective period: March 31, 2018 December 31, 2017 Period-end HK$:US$1 exchange rate 7.8 7.8 Average period HK$:US$1 exchange rate 7.8 7.8 Period-end RMB:US$1 exchange rate 6.78 6.78 Average period RMB:US$1 exchange rate 6.78 6.78 |
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 |
Commitments and contingencies | · Commitments and contingencies The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time, that these matters will have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. |
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 finance lease obligation): cash and cash equivalents, accounts receivable, purchase deposits, deposit and prepayments, accounts payable and accrued liabilities, income tax payable and amounts due to related parties 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 finance lease obligation 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 In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update ("ASU") 2014-09, “ Revenue from Contracts with Customers (Topic 606).” In August 2016, the FASB issued ASU 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. In February 2016, the FASB issued ASU 2016-02, “ Leases In November 2016, the FASB issued ASU 2016-18, “ Statement of Cash Flows (Topic 230): Restricted Cash 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. |
2. Organization and Business 22
2. Organization and Business Background (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of subsidiaries | Name Place of incorporation and kind of legal entity Principal activities and place of operation Particulars of issued/ registered share capital Effective interest held Lee Tat International Holdings Limited British Virgin Islands Investment holding 50,000 shares at US$1 each 100% Lee Tat Transportation International Limited Hong Kong Logistic and delivery 10,000 ordinary shares for HK$10,000 100% COSG International Holdings Limited British Virgin Islands Investment holding 10,000 shares at US$1 each 100% COSG Car International Limited Hong Kong Investment holding 10,000 ordinary shares for HK$10,000 100% Foshan Cosmos Xi Yue Car Rental Company Limited People’s Republic Provision of car rental service US$300,000,000 100% |
3. Summary of Significant Acc23
3. Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Table of exchange rates | March 31, 2018 December 31, 2017 Period-end HK$:US$1 exchange rate 7.8 7.8 Average period HK$:US$1 exchange rate 7.8 7.8 Period-end RMB:US$1 exchange rate 6.78 6.78 Average period RMB:US$1 exchange rate 6.78 6.78 |
9. Obligation under Finance L24
9. Obligation under Finance Lease (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Leases [Abstract] | |
Schedule of financed lease | March 31, 2018 December 31, 2017 (Unaudited) (Audited) Finance lease $ 45,021 $ 50,584 Less: interest expense (1,688 ) (2,251 ) $ 43,333 $ 48,333 Current portion $ 20,000 $ 20,000 Non-current portion 23,333 28,333 Total $ 43,333 $ 48,333 |
Maturities of finance lease | Period ending March 31: 2019 $ 20,000 2020 20,000 2021 3,333 Total: $ 43,333 |
10. Income Taxes (Tables)
10. Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income tax reconciliation | Three months ended March 31, 2018 2017 (Loss) income before income taxes $ (148,443 ) $ 58 Statutory income tax rate 16.5% 16.5% Income tax expense at statutory rate (24,493 ) 10 Tax effect from non-deductible items 3,428 823 Tax effect from non-taxable item (604 ) – Tax effect from deductible items (4,456 ) (1,032 ) Tax loss carryforwards 26,125 408 Income tax expense $ – $ 209 |
13. Concentrations of Risk (Tab
13. Concentrations of Risk (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Schedule of customer concentrations | Three months ended March 31, 2018 March 31, 2018 Customers Revenues Percentage Accounts Customer A $ 77,627 58% $ – Customer D 43,032 32% – Total: $ 120,659 90% Total: $ – Three months ended March 31, 2017 March 31, 2017 Customers Revenues Percentage Accounts Customer D $ 66,861 73% $ – Customer B 11,612 13% – Total: $ 78,473 86% Total: $ – All customers are located in the Hong Kong. |
2. Organization and Business 27
2. Organization and Business Background (Details) | 3 Months Ended |
Mar. 31, 2018 | |
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 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 |
COSG International Holdings Limited [Member] | |
Ownership percentage | 100.00% |
Place of incorporation | British Virgin Islands |
Principal activities | Investment holding |
Registered share capital | 10,000 shares at US$1 each |
COSG Car International Limited [Member] | |
Ownership percentage | 100.00% |
Place of incorporation | Hong Kong |
Principal activities | Investment holding |
Registered share capital | 10,000 ordinary shares for HK$10,000 |
Foshan Cosmos Xi Yue Car Rental Company Limited [Member] | |
Ownership percentage | 100.00% |
Place of incorporation | People's Republic of China ("PRC") |
Principal activities | Provision of car rental service |
Registered share capital | US$300000000 |
3. Summary of Significant Acc28
3. Summary of Significant Accounting Policies (Details - Currency rates) | Mar. 31, 2018 | Dec. 31, 2017 |
Period End [Member] | Hong Kong, Dollars | ||
Exchange rate | 7.8 | 7.8 |
Period End [Member] | China, Yuan Renminbi | ||
Exchange rate | 6.78 | 6.78 |
Average Period [Member] | Hong Kong, Dollars | ||
Exchange rate | 7.8 | 7.8 |
Average Period [Member] | China, Yuan Renminbi | ||
Exchange rate | 6.78 | 6.78 |
3. Summary of Significant Acc29
3. Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Allowance for doubtful accounts | $ 0 | $ 0 | |
Depreciation expense | 20,135 | $ 4,989 | |
Asset impairment charge | 0 | $ 0 | |
Uncertain tax positions | $ 0 | $ 0 | |
Service vehicle [Member] | |||
Expected useful life of property | 8 years |
4. Going Concern Uncertainties
4. Going Concern Uncertainties (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Net loss | $ (151,238) | $ (151) | |
Accumulated deficit | (280,343) | $ (129,105) | |
Working capital | $ (457,117) |
7. Bank Borrowing (Details Narr
7. Bank Borrowing (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Proceeds from bank loan | $ 1,495,000 | $ 0 |
Bank Borrowing [Member] | ||
Proceeds from bank loan | $ 1,495,000 | |
Debt stated interest rate | 5% above the Bank of China Benchmark Lending Rate | |
Debt periodic payment frequency | monthly | |
Debt maturity date, beginning | Feb. 1, 2019 | |
Debt maturity date, ending | Mar. 31, 2019 |
9. Obligation under Finance L32
9. Obligation under Finance Lease (Details - Finance lease) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Leases [Abstract] | ||
Finance lease | $ 45,021 | $ 50,584 |
Less: interest expense | (1,688) | (2,251) |
Net present value of finance lease | 43,333 | 48,333 |
Current portion | 20,000 | 20,000 |
Non-current portion | 23,333 | 28,333 |
Total | $ 43,333 | $ 48,333 |
9. Obligation under Finance L33
9. Obligation under Finance Lease (Details - Maturities of finance lease) | Mar. 31, 2018USD ($) |
Leases [Abstract] | |
Finance lease maturity 2019 | $ 20,000 |
Finance lease maturity 2020 | 20,000 |
Finance lease maturity 2021 | 3,333 |
Finance lease obligation | $ 43,333 |
9. Obligation under Finance L34
9. Obligation under Finance Lease (Details Narrative) | 3 Months Ended |
Mar. 31, 2018 | |
Leases [Abstract] | |
Finance lease effective interest rate | 2.25% |
Finance lease maturity date | May 29, 2020 |
10. Income Taxes (Details - Inc
10. Income Taxes (Details - Income tax reconcilation) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income tax expense | $ 0 | $ 209 |
Hong Kong Profits Tax [Member] | ||
(Loss) before income taxes | $ (148,443) | $ 58 |
Statutory income tax rate | 16.50% | 16.50% |
Income tax expense at statutory rate | $ (24,493) | $ 10 |
Tax effect from non-deductible items | 3,428 | 823 |
Tax effect from non-taxable item | (604) | 0 |
Tax effect from deductible items | (4,456) | (1,032) |
Tax loss carryforwards | 26,125 | 408 |
Income tax expense | $ 0 | $ 209 |
10. Income Taxes (Details Narra
10. Income Taxes (Details Narrative) | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Net operating loss carryforward | $ 1,952,550 |
Operating loss carryforward beginning expiration date | Dec. 31, 2038 |
Valuation allowance | $ 410,035 |
State Administration of Taxation, China [Member] | |
Income tax rate | 25.00% |
11. Stockholders' Equity (Detai
11. Stockholders' Equity (Details Narrative) - shares | Mar. 31, 2018 | Dec. 31, 2017 |
Equity [Abstract] | ||
Common stock issued | 21,492,933 | 21,492,933 |
Common stock outstanding | 21,492,933 | 21,492,933 |
13. Concentrations of Risk (Det
13. Concentrations of Risk (Details - Concentration risk) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues | $ 133,726 | $ 91,718 |
Sales Revenue, Net [Member] | ||
Concentration risk percentage | 90.00% | 86.00% |
Revenues | $ 120,659 | $ 78,473 |
Sales Revenue, Net [Member] | Customer A [Member] | ||
Concentration risk percentage | 58.00% | |
Revenues | $ 77,627 | |
Sales Revenue, Net [Member] | Customer D [Member] | ||
Concentration risk percentage | 32.00% | 73.00% |
Revenues | $ 43,032 | $ 66,861 |
Sales Revenue, Net [Member] | Customer B [Member] | ||
Concentration risk percentage | 13.00% | |
Revenues | $ 11,612 | |
Accounts Receivable [Member] | ||
Concentration risk percentage | 0.00% | 0.00% |
Accounts Receivable [Member] | Customer A [Member] | ||
Concentration risk percentage | 0.00% | |
Accounts Receivable [Member] | Customer D [Member] | ||
Concentration risk percentage | 0.00% | 0.00% |
Accounts Receivable [Member] | Customer B [Member] | ||
Concentration risk percentage | 0.00% |
13. Concentrations of Risk (D39
13. Concentrations of Risk (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cost of sales | $ 119,330 | $ 75,587 |
Cost of Sales [Member] | One Vendor [Member] | ||
Concentration risk percentage | 57.00% | 18.00% |
Cost of sales | $ 32,717 | $ 9,429 |
Accounts payable | $ 0 | |
Accounts Payable [Member] | One Vendor [Member] | ||
Accounts payable | $ 0 |