Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 11, 2020 | |
Document And Entity Information | ||
Entity Registrant Name | Agape ATP Corp | |
Entity Central Index Key | 0001713210 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 376,275,500 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 2,588,207 | $ 2,744,457 |
Accounts receivable - related party | 523,141 | 520,786 |
Amount due from a related party | 2,227 | 2,217 |
Prepayments and deposits | 304,993 | 269,193 |
Amount due from a director | 656,495 | |
Total Current Assets | 4,075,063 | 3,536,653 |
OTHER ASSETS | ||
Investment in marketable securities | 48,202 | 66,484 |
Investment in non-marketable securities | 1,500 | 732,137 |
Total other assets | 49,702 | 798,621 |
TOTAL ASSETS | 4,124,765 | 4,335,274 |
CURRENT LIABILITIES | ||
Accounts payable | 2,790 | |
Other payables and accrued liabilities | 97,459 | 77,246 |
Amount due to a director | 3,952 | |
Total Current Liabilities | 97,459 | 83,988 |
TOTAL LIABILITIES | 97,459 | 83,988 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, $0.0001 par value; 200,000,000 shares authorized; None issued and outstanding | ||
Common stock, par value $0.0001; 1,000,000,000 shares authorized, 376,275,500 issued and outstanding as of March 31, 2020 and December 31, 2019 | 37,628 | 37,628 |
Additional paid in capital | 5,293,082 | 5,293,082 |
Accumulated deficit | (1,320,959) | (1,089,209) |
Accumulated other comprehensive income | 17,555 | 9,785 |
TOTAL STOCKHOLDERS' EQUITY | 4,027,306 | 4,251,286 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 4,124,765 | $ 4,335,274 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 200,000,000 | 200,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 376,275,500 | 376,275,500 |
Common stock, shares outstanding | 376,275,500 | 376,275,500 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
REVENUE - RELATED PARTY | $ 464,297 | |
COST OF REVENUE | (420,178) | |
GROSS PROFIT | 44,119 | |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | (159,516) | (28,226) |
INCOME (LOSS) FROM OPERATIONS | (159,516) | 15,893 |
OTHER INCOME (EXPENSES) | ||
Other Income (Expenses), Net | (53,696) | 57,933 |
Loss from equity investment | (26,085) | |
Unrealized holding loss on marketable securities | (18,538) | |
Gain on deemed disposal of shares in Investee Company | 16,509 | |
TOTAL OTHER INCOME (EXPENSES), NET | (72,234) | 48,357 |
INCOME (LOSS) BEFORE INCOME TAXES | (231,750) | 64,250 |
BENEFIT FOR INCOME TAXES | 6,965 | |
NET INCOME (LOSS) | (231,750) | 71,215 |
OTHER COMPREHENSIVE INCOME (LOSS) | ||
Foreign currency translation adjustment | 7,770 | (3,197) |
COMPREHENSIVE INCOME (LOSS) | $ (223,980) | $ 68,018 |
EARNINGS (LOSS) PER SHARE | ||
Basic and diluted | $ 0 | $ 0 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING Basic and diluted | 376,275,500 | 376,275,500 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance at Dec. 31, 2018 | $ 37,628 | $ 5,293,082 | $ (373,082) | $ (1,294) | $ 4,956,334 |
Balance, shares at Dec. 31, 2018 | 376,275,500 | ||||
Net income (loss) | 71,215 | 71,215 | |||
Foreign currency translation adjustment | (3,197) | (3,197) | |||
Balance at Mar. 31, 2019 | $ 37,628 | 5,293,082 | (301,867) | (4,491) | 5,024,352 |
Balance, shares at Mar. 31, 2019 | 376,275,500 | ||||
Balance at Dec. 31, 2019 | $ 37,628 | 5,293,082 | (1,089,209) | 9,785 | 4,251,286 |
Balance, shares at Dec. 31, 2019 | 376,275,500 | ||||
Net income (loss) | (231,750) | (231,750) | |||
Foreign currency translation adjustment | 7,770 | 7,770 | |||
Balance at Mar. 31, 2020 | $ 37,628 | $ 5,293,082 | $ (1,320,959) | $ 17,555 | $ 4,027,306 |
Balance, shares at Mar. 31, 2020 | 376,275,500 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ (231,750) | $ 71,215 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Unrealized holding loss on marketable securities | 18,538 | |
Loss from equity investment | 26,085 | |
Gain on deemed disposal of shares in Investee Company | (16,509) | |
Changes in operating assets and liabilities: | ||
Accounts receivable - related party | 285 | (186,536) |
Amount due from a related party | (2,200) | |
Prepayments and deposits | (34,593) | (100,029) |
Accounts payable | (2,803) | 1,323 |
Customer deposits | (140,322) | |
Income taxes payable | (12,299) | |
Other payables and accrued liabilities | 19,892 | 952 |
Net cash used in operating activities | (230,431) | (358,320) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from sale of non-marketable securities to a related party | 70,173 | |
Net cash provided by investing activities | 70,173 | |
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS | 4,008 | (3,197) |
DECREASE IN CASH AND CASH EQUIVALENTS | (156,250) | (361,517) |
CASH AND CASH EQUIVALENTS, beginning of period | 2,744,457 | 3,452,917 |
CASH AND CASH EQUIVALENTS, end of period | 2,588,207 | 3,091,400 |
SUPPLEMENTAL CASH FLOWS INFORMATION | ||
Income taxes paid | ||
Interest paid | ||
SUPPLEMENTAL NON-CASH FLOWS INFORMATION | ||
Amount transferred from investment in investee company to investment in non-marketable securities | 724,619 | |
Sale of the non-marketable securities to a director in exchange for a loan receivable | $ 730,637 |
Organization and Business Backg
Organization and Business Background | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Organization and Business Background | 1. ORGANIZATION AND BUSINESS BACKGROUND Agape ATP Corporation, a Nevada corporation (“the Company”) was incorporated under the laws of the State of Nevada on June 1, 2016. Agape ATP Corporation operates through its wholly owned subsidiary, Agape ATP Corporation, a Company organized in Labuan, Malaysia. Agape ATP Corporation, incorporated in Labuan, Malaysia, is an investment holding company with 100% equity interest in Agape ATP International Holding Limited, a company incorporated in Hong Kong. The Company and its subsidiaries provide health and wellness products and advisory services to the public. The principal activity of the Company and its subsidiaries is to supply high-quality health and wellness products, including supplement to assist in cell metabolism, detoxification, blood circulation, anti-aging and products designed to improve the overall health system in our body. Details of the Company’s subsidiaries: Subsidiary company name Place and date of incorporation Particulars of issued capital Principal activities Proportional of ownership interest and voting power held 1. Agape ATP Corporation Labuan, 100 shares of ordinary share of US$1 each Investment holding 100 % 2. Agape ATP International Holding Limited Hong Kong, 1,000,000 shares of ordinary share of HK$1 each Health and wellness products and health solution advisory services 100 % Business Overview Agape ATP Corporation is a company that provides health solution advisory services to our clients. We primarily focus our efforts on attracting customers in Malaysia. Our advisory services center on the “ATP Zeta Health Program”, which is a health program designed to effectively prevent diseases caused by polluted environments, unhealthy dietary intake and unhealthy lifestyles, and promotion of health. The program aims to promote improved health and longevity in our clients through a combination of modern medicine, proper nutrition and advice from skilled nutritionists and/or dieticians. At its core, the ATP Zeta Super Health Program is focused upon biological energy, Adenosine Triphosphate (ATP), at the cellular level. The stimulation of ATP production at the cellular level can increase the metabolism and service to promote and maintain normal and healthy functioning of the body’s systems. As a strong advocator of “beauty from within”, our program shall emphasize nutrient absorption through the membrane ion channel to provide complete and balanced nutrients to improve cell health. Thus, ATP Zeta Super Health Program provides ionized and high zeta potential (high bioavailability) nutrients to enhance the absorption at the cellular level. The ATP Zeta Super Health Program consists of eight products. None of these products are owned or produced by Agape ATP Corporation. In the event that any of these products are no longer produced, or are otherwise unavailable, we may have to devote significant effort to identifying and obtaining comparable replacement products. The eight products that comprise the ATP Zeta Super Health Program are ATP1s Survivor Select, ATP2 Energized Mineral Concentrate, ATP3 Ionized Cal-Mag, ATP4 Omega Blend, ATP5 BetaMaxx, AGN-Vege Fruit Fiber, AGP1-Iron and YFA-Young Formula. At present, our products are mainly sold in Malaysia, and due to the contents and combination of the main ingredients in the products they are categorized as health food rather than medicines or drugs. As such, all products require authorization from the Food and Quality Division of Ministry of Health according to the Food Act of 1983 and Food Regulation 1985 in order to be sold in the country. All of the products in the ATP Zeta Super Health Program have obtained the appropriate authorizations. As part of a continuous effort to increase market share of the health and wellness industry that is growing at an exponential rate, we will also evaluate adding additional products to the ATP Zeta Super Health Program; and considering the potential of the synergies between the health and beauty sectors, we will further involve ourselves in the topical approach of skin and hair regime. Other than organic growth, the Company will also consider mergers and acquisitions where synergistic. As detailed in Note 15, Subsequent Events, to improve its sales channel, the Company is in the process of acquiring a Malaysia incorporated entity whose principal activity is in the trading of health and wellness products. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying consolidated financial statements and notes. Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for information pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”). Basis of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors. Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s consolidated financial statements include allowance for doubtful accounts, allowance for deferred tax assets and uncertain tax position, and impairment of investment in non-marketable securities. Actual results could differ from these estimates. Cash and cash equivalents Cash and cash equivalents are carried at cost and represent cash on hand, time deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less. Accounts receivable – related party Accounts receivable – related party are recorded at the invoiced amount less an allowance for any uncollectible accounts and do not bear interest, which are due on demand. Management reviews the adequacy of the allowance for doubtful accounts on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual customer’s financial condition, credit history, and the current economic conditions to make adjustments in the allowance when it is considered necessary. 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’s management continues to evaluate the reasonableness of the valuation allowance policy and update it if necessary. As of March 31, 2020, and December 31, 2019, no valuation allowance was recorded. Prepayments and deposits Prepayments and deposits are cash deposited or advanced to suppliers for future inventory purchases or service providers for future services. This amount is refundable and bears no interest. For any prepayments and deposits determined by management that such advances will not be in receipts of inventories, services, or refundable, the Company will recognize an allowance account to reserve such balances. Management reviews its prepayments and deposits on a regular basis to determine if the allowance is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. The Company’s management continues to evaluate the reasonableness of the valuation allowance policy and update it if necessary. Investment in marketable equity securities Prior to July 1, 2019, marketable securities included in investment in marketable equity securities (non-current) are stated at the lower of cost or market in the aggregate. Other marketable securities (non-current) are stated at the lower of cost or market in the aggregate and investments other than marketable equity securities in other investments (non-current) are stated at cost less any significant decline in fair value assessed to be other than temporary. Realized gains and losses on the sale of securities are based on the average cost of all the units of a particular security held at the time of sale. On July 1, 2019, the Company adopted ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities Investment in non-marketable equity securities Prior to July 1, 2019, investments in non-marketable equity securities (non-current) are stated at cost less any significant decline in fair value assessed to be other than temporary. Realized gains and losses on the sale of securities are based on the average cost of all the units of a particular security held at the time of sale. On July 1, 2019, the Company adopted ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities At each reporting period, the Company will make a qualitative assessment considering impairment indicators to evaluate whether the investment is impaired. The qualitative assessment indicators include, but are not limited to: (1) A significant deterioration in the earnings performance, credit rating, asset quality, or business prospects of the investee; (ii) A significant adverse change in the regulatory, economic, or technological environment of the investee; (iii) A significant adverse change in the general market condition of either the geographical area or the industry in which the investee operates; (iv) A bona fide offer to purchase, an offer by the investee to sell, or a completed auction process for the same or similar investment for an amount less than the carrying amount of that investment; and (v) Factors that raise significant concerns about the investee’s ability to continue as a going concern, such as negative cash flows from operations, working capital deficiencies, or noncompliance with statutory capital requirements or debt covenants. If the qualitative assessment indicators indicated that the non-marketable equity securities (non-current) is deemed to be impaired, the Company would recognize the impairment loss equal to the difference between the fair value of the investment and its carrying amount. Revenue recognition On July 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (ASC Topic 606) using the modified retrospective method for contracts that were not completed as of June 30, 2019. This did not result in an adjustment to retained earnings upon adoption of this new guidance as the Company’s revenue was recognized based on the amount of consideration expected to receive in exchange for satisfying the performance obligations. The core principle underlying the revenue recognition of this ASU allows the Company to recognize - revenue that represents the transfer of goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. This will require the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. The Company’s revenue streams are recognized at a point in time for the Company’s sale of health and wellness products. The ASU requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation. The Company accounts for a contract with a customer when the contract is committed in writing, the rights of the parties, including payment terms, are identified, the contract has commercial substance and consideration is probable of substantially collection. Prior to July 1, 2019, the Company recognizes revenue from sales of goods when the following four revenue criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) selling price is fixed or determinable; and (4) collectability is reasonably assured. Revenue from supplies of health and wellness products is recognized when title and risk of loss are transferred and there are no continuing obligations to the customer. Title and the risks and rewards of ownership transfer to and accepted by the customer when the products are collected by the customer at the Company’s office. Revenue is recorded net of sales discounts, returns, allowances, and other adjustments that are based upon management’s best estimates and historical experience and are provided for in the same period as the related revenues are recorded. The application of the five-step model to the revenue streams compared to the prior guidance did not result in significant changes in the way the Company records its revenue. Upon adoption on July 1, 2019, the Company evaluated its revenue recognition policy for all revenue streams within the scope of the ASU under previous standards and using the five-step model under the new guidance and confirmed that there were no differences in the pattern of revenue recognition. Sales of Health and Wellness products - Performance obligations satisfied at a point in time On July 1, 2019, the Company derives its revenues from sales contracts with its customers with revenues being recognized when control of the health and wellness products are transferred to its customer at the Company’s office or shipment of the goods, which is generally similar to when its delivery has occurred prior to July 1, 2019. Such revenues are recognized at a point in time after all performance obligations are satisfied. The revenue is recorded net of estimated discounts and return allowances. Historically, there were no sales return as the Company’s products sold are not refundable, returnable or exchangeable. Disaggregated information of revenues by products are as follows: For the three months ended March 31, 2020 March 31, 2019 (Unaudited) (Unaudited) Ionized Cal-Mag $ - $ 55,493 Omega Blend - 68,689 Young Formula - 116,979 Organic Youth Care Cleansing Bar - 17,675 Trim+ - 65,295 Lipomask - 140,166 Total revenues $ - $ 464,297 Cost of revenue Cost of revenue includes freight-in and the purchase cost of manufactured goods for sale to customers Selling, general and administrative expenses Selling, general and administrative expenses are primarily comprised of rental of office premises, travelling, licensing and professional fees. Income taxes The Company accounts for income taxes in accordance with U.S. GAAP for income taxes. The charge for taxation is based on the results for the fiscal year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred taxes is accounted for using the asset and liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the consolidated financial statements and the corresponding tax basis used in the computation of assessable tax profit. In principle, deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilized. Deferred tax is calculated using tax rates that are expected to apply to the period when the asset is realized or the liability is settled. Deferred tax is charged or credited in the income statement, except when it is related to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. No penalties and interest incurred related to underpayment of income tax. The Company conducts much of its businesses activities in Hong Kong and is subject to tax in this jurisdiction. As a result of its business activities, the Company will file separate tax returns that are subject to examination by the foreign tax authorities. Comprehensive income (loss) Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under GAAP are recorded as an element of stockholders’ equity but are excluded from net income. Other comprehensive income (loss) consists of a foreign currency translation adjustment resulting from the Company not using the U.S. dollar as its functional currencies. Earnings (loss) per share The Company computes earnings (loss) per share (“EPS”) in accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common share outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of the potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. Foreign currencies translation and transaction 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 Condensed Consolidated Statements of Operations and Comprehensive Income. The reporting currency of the Company is United States Dollars (“US$”) and the accompanying financial statements have been expressed in US$. The Company’s subsidiary in Labuan maintains its books and record in United States Dollars (“US$”) albeit its functional currency being the primary currency of the economic environment in which the entity operates is the Malaysian Ringgit (“MYR”). The Company’s subsidiary in Hong Kong maintains its books and record in Hong Kong Dollars (“HK$”), similar to its functional currency. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “ Translation of Financial Statement” Translation of foreign currencies into US$1 have been made at the following exchange rates for the respective periods: As of and for the three months ended As of March 31, 2020 March 31, 2019 December 31, 2019 (Unaudited) (Unaudited) Period-end MYR : US$1 exchange rate 4.34 4.10 4.09 Period-average MYR : US$1 exchange rate 4.21 4.08 4.16 Period-end HKD : US$1 exchange rate 7.75 7.85 7.79 Period-average HKD : US$1 exchange rate 7.77 7.85 7.83 Period-end AUD : US$1 exchange rate 1.63 1.41 1.43 Period-average AUD : US$1 exchange rate 1.55 1.40 1.46 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 operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence. Fair value of financial instruments The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company. The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. Financial instruments included in current assets and current liabilities are reported in the consolidated balance sheets at face value or cost, which approximate fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest. Operating leases A lease for which substantially all the benefits and risks incidental to ownership remain with the lessor is classified by the lessee as an operating lease. All leases of the Company are currently classified as operating leases. The Company records the total expenses on a straight-line basis over the lease term. The Company had on July 1, 2019, adopted ASU 2016-02, “Leases” (Topic 842), and elected the practical expedients that do not require us to reassess: (1) whether any expired or existing contracts are, or contain, leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. The Company adopted the practical expedient that allows lessees to treat the lease and non-lease components of a lease as a single lease component. There is no impact from the adoption of ASC 842 as of January 1, 2020, as the Company did not have any existing leases with a lease term in excess of twelve months on January 1, 2020. Recent accounting pronouncements The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption of such any pronouncements may be expected to cause a material impact on its financial condition or the results of its operations, as follow: In July 2017, the FASB Issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815). The amendments in Part I of the Update change the reclassification analysis of certain equity-lined financial instruments (or embedded features) with down round features. The amendments in Part II of this Update re-characterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments in Part I of this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in Part II of this Update do not require any transition guidance because those amendments do not have an accounting effect. The adoption of this ASU did not have a material effect on the Company’s consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this Update affect any entity that is required to apply the provisions of Topic 220, Income Statement – Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP. The amendments in this Update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The adoption of this ASU did not have a material effect on the Company’s consolidated financial statements . In August 2018, the FASB has issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements of Fair Value Measurement. This amendment modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the concepts in the Concepts Statement, including the consideration of costs and benefits, with the primary purpose to improve the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information required by US GAAP. The amendments in this update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company is currently evaluating the impact of ASU 2018-13 will have on its consolidated financial statements. In May 2019, the FASB issued ASU 2019-05, which is an update to ASU Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The amendments in Update 2016-13 added Topic 326, Financial Instruments—Credit Losses, and made several consequential amendments to the Codification. Update 2016-13 also modified the accounting for available-for-sale debt securities, which must be individually assessed for credit losses when fair value is less than the amortized cost basis, in accordance with Subtopic 326-30, Financial Instruments— Credit Losses—Available-for-Sale Debt Securities. The amendments in this Update address those stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. ASU 2019-05 is effective for the Company for annual and interim reporting periods beginning January 1, 2023 due the Company is qualified as an emerging growth company. The Company is currently evaluating the impact of ASU 2019-05 will have on its consolidated financial statements. In January 2020, the FASB issued ASU 2020-01 to clarify the interaction of the accounting for equity securities under ASC 321 and investments accounted for under the equity method of accounting in ASC 323 and the accounting for certain forward contracts and purchased options accounted for under ASC 815. With respect to the interactions between ASC 321 and ASC 323, the amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting when applying the measurement alternative in ASC 321, immediately before applying or upon discontinuing the equity method of accounting. With respect to forward contracts or purchased options to purchase securities, the amendments clarify that when applying the guidance in ASC 815-10-15-141(a), an entity should not consider whether upon the settlement of the forward contract or exercise of the purchased option, individually or with existing investments, the underlying securities would be accounted for under the equity method in ASC 323 or the fair value option in accordance with ASC 825. The ASU is effective for interim and annual reporting periods beginning after December 15, 2020. Early adoption is permitted, including adoption in any interim period. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements. Reclassification Certain prior period amounts have been reclassified to conform to the current period presentation for the three months ended March 31, 2019. These reclassifications have no effect on the condensed consolidated statements of operations and comprehensive income. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 3 Months Ended |
Mar. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | 3. CASH AND CASH EQUIVALENTS As of March 31, 2020 and December 31, 2019 the Company recorded $2,588,207 and $2,744,457, respectively, of cash and cash equivalents, which consists $135,436 and $238,937, respectively, of cash in bank and $2,452,771 and $2,505,520, respectively, of time deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less. The effective interest rate for the time deposits ranges between 2.95% to 3.25% per annum. |
Accounts Receivables - Related
Accounts Receivables - Related Party | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Accounts Receivables - Related Party | 4. ACCOUNTS RECEIVABLE – RELATED PARTY As of As of Accounts receivable – related party $ 523,141 $ 520,786 Allowance for doubtful accounts - - Total accounts receivable – related party $ 523,141 $ 520,786 |
Investment in Marketable Securi
Investment in Marketable Securities | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment in Marketable Securities | 5. INVESTMENT IN MARKETABLE SECURITIES (i) On May 17, 2018, the Company purchased 83,333 shares of common stock in Greenpro Capital Corp. for $500,000 at a purchase price of $6 per share. (ii) On October 16, 2018, the Company purchased 33,333 shares of common stock in Greenpro Capital Corp. for $1,000 at a purchase price of $0.03 per share. As of As of Cost of investment $ 66,484 $ 134,166 Less: Unrealized holding loss (18,538 ) (68,391 ) Exchange rate effect 256 709 Investment in marketable securities $ 48,202 $ 66,484 |
Investment In Non-Marketable Se
Investment In Non-Marketable Securities | 3 Months Ended |
Mar. 31, 2020 | |
Investment In Non-marketable Securities | |
Investment In Non-Marketable Securities | 6. INVESTMENT IN NON-MARKETABLE SECURITIES The Company invested in Unreserved Sdn Bhd with the investment amount of $863,592 (MYR3,500,000), which approximated 20% of the equity interest of Unreserved Sdn Bhd and is accounted for under the equity method of accounting. On March 10, 2019 Unreserved Sdn Bhd issued additional common stock for working capital. As the Company did not subscribe for the additional common stock, the Company’s equity interest in investee company was diluted from approximately 20.0% to approximately 17.86%. Effective from March 10, 2019, the Company discontinued equity accounting on the investee company. The Company also ceased control over the operations of the investee company on the same date. Accordingly, the investment in investee company was reclassified to investment in non-marketable securities. Unreserved Sdn Bhd was incorporated in Malaysia with 2,500,000 ordinary shares authorized, issued and outstanding. Mr. Lim Hun Soon David Lim and Ms. Aniza Helina Akmi Karim are the directors of Unreserved Sdn Bhd. Mr. How Kok Choong was a director of the company from April 30, 2018 to March 27, 2019. On March 2, 2020, the Company agreed to sell the 17.86% ownership interest in Unreserved Sdn Bhd at the December 31, 2019 carrying value of $730,637 to Mr. How Kok Choong, the CEO and director of the Company. The Company received proceeds of $70,173, and had an amount due from director balance of $660,464 as at March 31, 2020. In May 2020, the entire outstanding balance was settled as part of the consideration in a transaction which the Company had acquired the CEO’s ownership interest of Agape Superior Living Sdn. Bhd. On April 3, 2019, the Company purchased a 5% of stock or 15,000,000 shares of common stock in Phoenix Plus Corp. for $1,500 at purchase price of $0.0001 per share. Unreserved Sdn Bhd As of As of Investment in non-marketable securities $ 730,637 $ 730,637 Less: Sale of investment in non-marketable securities (730,637 ) - Investment in non-marketable securities $ - $ 730,637 Phoenix Plus Corporation Cost of investment $ 1,500 $ 1,500 Total investment in non-marketable securities $ 1,500 $ 732,137 |
Prepayments and Deposits
Prepayments and Deposits | 3 Months Ended |
Mar. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepayments and Deposits | 7. PREPAYMENTS AND DEPOSITS As of As of Prepaid expenses $ 5,458 $ 2,641 Deposits to supplier 299,310 266,552 Total prepaid expenses and deposits $ 304,768 $ 269,193 |
Amount Due From a Director
Amount Due From a Director | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Amount Due From a Director | 8. AMOUNT DUE FROM A DIRECTOR On March 2, 2020, the Company agreed to sell the 17.86% ownership interest in Unreserved Sdn Bhd at December 31, 2019 carrying value of $730,637 to Mr. How Kok Choong, the CEO and director of the Company. On March 19, 2020, Mr. How made a payment of 10% of the amount due from him arising from the sale of the non-marketable securities. As of March 31, 2020, balance due from Mr. How was $656,495. In May 2020, the entire outstanding balance was settled as part of the consideration in a merger transaction in which the Company had acquired the CEO’s ownership interest of Agape Superior Living Sdn. Bhd. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 9. RELATED PARTY TRANSACTIONS The Company’s related party list and relationship are as follows: Related parties Relationships Agape S.E.A. Sdn Bhd Mr. How Kok Choong, the CEO and director of the Company is also the sole shareholder and director of Agape S.E.A. Sdn Bhd Agape Superior Living Pty Ltd Mr. How Kok Choong, the CEO and director of the Company is a 51% shareholder and a director of Agape Superior Living Pty Ltd Agape Superior Living Sdn Bhd Mr. How Kok Choong, the CEO and director of the Company is also the sole shareholder and director of Agape Superior Living Sdn Bhd Agape ATP (Asia) Limited Mr. How Kok Choong, the CEO and director of the Company is also the sole shareholder and director of Agape ATP (Asia) Limited. Related party transactions for the three months ended March 31, 2020 and 2019; and as of March 31, 2020, and December 31, 2019 are as per table below: For the three months ended As of March 31, 2020 March 31, 2019 March 31, 2020 December 31, 2019 (Unaudited) (Unaudited) (Unaudited) Revenue Accounts Receivable, Trade Agape S.E.A. Sdn Bhd $ - $ 464,297 $ 523,141 $ 520,786 Expenses paid on behalf Amount due from a related party Agape ATP (Asia) Limited $ - $ 2,200 $ 2,227 $ 2,217 Sundry Purchases Prepayments and Deposits Agape Superior Living Pty Ltd $ - $ - $ 2,783 $ - |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | 10. STOCKHOLDERS’ EQUITY Preferred stock As of March 31, 2020, and December 31, 2019, there were 200,000,000 preferred stocks authorized but none were issued and outstanding. Common stock As of March 31, 2020, and December 31, 2019, there were 1,000,000,000 common stocks authorized, 376,275,500 were issued and outstanding. There were no stock options, warrants or other potentially dilutive securities outstanding as of March 31, 2020 and December 31, 2019. |
Other Payables and Accrued Liab
Other Payables and Accrued Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Payables and Accrued Liabilities | 11. OTHER PAYABLES AND ACCRUED LIABILITIES As of As of Accrued professional fees $ 68,474 $ 58,594 Others 28,985 18,652 Total payables and accrued liabilities $ 97,459 $ 77,246 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. INCOME TAXES The United States and foreign components of income (loss) before income taxes were comprised of the following: For the three months ended March 31, 2020 March 31, 2019 (Unaudited) (Unaudited) Tax jurisdictions from: - Local $ (142,419 ) $ (14,724 ) - Foreign - Labuan (55,587 ) 59,674 - Foreign - Hong Kong (33,744 ) 19,300 Income (Loss) before income tax $ (231,750 ) $ 64,250 The benefit for income taxes consisted of the following: For the three months ended March 31, 2020 March 31, 2019 (Unaudited) (Unaudited) Current: - Local $ - $ - - Foreign - (6,965 ) Deferred: - Local - - - Foreign - - Benefit for income taxes $ - $ (6,965 ) The effective tax rate in the periods presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rates. The Company and its subsidiary that operate in various countries: United States, Labuan and Hong Kong that are subject to taxes in the jurisdictions in which they operate, as follows: United States of America Agape ATP Corporation was incorporated in the State of Nevada and is subject to the tax laws of the United States of America. As of March 31, 2020, the operations in the United States of America incurred approximately $349,000 of cumulative net operating losses which can be carried forward to offset future taxable income. Approximately $10,000 and $24,000 of the net operating loss carry forwards will expire in 2027and 2028, respectively, if unutilized. The remaining balance can be carried forward indefinitely. The deferred tax valuation allowance as of March 31, 2020 and December 31, 2019 were approximately $73,000 and $43,000, respectively. Labuan Under the current laws of the Labuan, Agape ATP Corporation is governed under the Labuan Business Activity Act, 1990. The tax charge for such company is based on 3% of net audited profit. Due to Agape ATP Corporation is a holding company, it did not generate any income nor incurred any income tax. In addition, its related expenses incurred cannot be carried forward to offset any future operation income. Hong Kong Agape ATP International Holding (HK) Limited is subject to Hong Kong Profits Tax, which is charged at the statutory income rate of 16.5% on its assessable income derived from Hong Kong. Business income derived or business expenses incurred outside the Special Administrative Region is not subject to Hong Kong Profits Tax or deduction. The following table reconciles the local (United States) statutory rates to the Company’s effective tax rate for the periods indicated below: For the three months ended March 31, 2020 March 31, 2019 (Unaudited) (Unaudited) U.S. statutory rate 21.0 % 21.0 % Valuation allowance (21.0 )% (21.0 )% Permanent difference (1) 0.0 % (10.8 )% Effective tax rate 0.0 % (10.8 )% (1) The following table sets forth the significant components of the aggregate deferred tax assets of the Company as of: As of As of December 31, 2019 (Unaudited) Deferred tax assets: Net operating loss carry forwards in U.S. $ 73,318 $ 43,410 Less: valuation allowance (73,318 ) (43,410 ) Deferred tax assets $ - $ - |
Concentrations of Risks
Concentrations of Risks | 3 Months Ended |
Mar. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Risks | 13. CONCENTRATIONS OF RISKS (a) Major customers There were no sales for the three months ended March 31, 2020. For the three months ended March 31, 2019, one related party customer accounted for 100% of the Company’s total revenues. As of March 31, 2020, and December 31, 2019, one related party customer accounted for 100% of the total balance of accounts receivable. (b) Major vendors There were no purchases for the three months ended March 31, 2020. For the three months ended March 31, 2019, two vendors accounted for approximately 54% and 46% of the Company’s total purchases, respectively. Accounts payable as of March 31, 2020 was nil. As of December 31, 2019, one vendor accounted for 100% of the total balance of accounts payable. (c) Credit risk Financial instruments that are potentially subject to credit risk consist principally of accounts receivable. The Company believes the concentration of credit risk in its account receivable 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. Historically, the Company did not have any bad debt on its account receivable. (d) Exchange rate risk The Company cannot guarantee that the current exchange rate will remain steady; therefore, there is a possibility that the Company could post the same amount of profit for two comparable periods and because of the fluctuating exchange rate actually post higher or lower profit depending on exchange rate of RM$ and HK$ converted to US$ on that date. The exchange rate could fluctuate depending on changes in political and economic environments without notice. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14. COMMITMENTS AND CONTINGENCIES Lease commitments In view of the recent economic development in Hong Kong, the Company has decided not to extend the tenancy for the office in Hong Kong when the tenancy expires on April 30, 2020. Accordingly, the Company had on April 23, 2020 served a termination notice to the landlord, The Company’s commitment for minimum lease payments under the operating lease as of March 31, 2020 for the remaining lease period ending May 31, 2020 is $7,862. Rent expense for the three months ended March 31, 2020 and 2019 was $13,508 and $13,375, respectively. Purchase commitments The total future minimum purchase commitment under a non-cancellable purchase contract as of March 31, 2020 for the next five years and thereafter is as follows: Twelve months ending March 31, Minimum purchase 2021 $ 693,900 2022 693,900 2023 693,900 2024 693,900 2025 693,900 Thereafter 1,908,225 Total minimum purchase commitments required $ 5,377,725 As of the date of this report, the Company’s vendor is not able to meet the Company’s minimum purchase commitment of the health and wellness products due to the manufacturing process was being delayed by its vendor. Contingencies From time to time, the Company is party to certain legal proceedings, as well as certain asserted and un-asserted claims. Amounts accrued, as well as the total amount of reasonably possible losses with respect to such matters, individually and in the aggregate, are not deemed to be material to the consolidated financial statements. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | 15. SUBSEQUENT EVENT In December 2019, a novel strain of coronavirus (COVID-19) surfaced. The spread of COVID-19 around the world in the first quarter of 2020 has caused significant volatility in Malaysia. There is significant uncertainty around the duration of business disruptions related to COVID-19, as well as its impact on the Malaysia economies and, as such, the Company is unable to determine if it will have a material impact to its operations. On May 8, 2020, the Company entered into a Share Exchange Agreement with Mr. How Kok Choong, CEO and director of the Company to acquire 9,590,596 ordinary shares, no par value, equivalent to approximately 99.99% of the equity interest in Agape Superior Living Sdn Bhd, an entity incorporated in Malaysia for $1,714,003. The purchase consideration represented the net asset carrying value of the acquiree as of March 31, 2020. The payment, net of the amount due from Mr. How Kok Choong of $656,495 as of March 31, 2020 arising from the purchase of the Company’s non-marketable security, will be satisfied together with the issuance of 162,694 shares of the Company’s common stock. Upon completion, the number of shares of common stock of the Company will be increased from 376,275,500 to 376,438,194, equivalent to approximately 0.0432% increase of the total issued and outstanding common stock of the Company after the issuance of the additional shares, which was valued at $1,057,508 based on the closing price of $6.50 of the Company at March 31, 2020. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for information pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”). |
Basis of Consolidation | Basis of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors. |
Use of Estimates | Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s consolidated financial statements include allowance for doubtful accounts, allowance for deferred tax assets and uncertain tax position, and impairment of investment in non-marketable securities. Actual results could differ from these estimates. |
Cash and Cash Equivalents | Cash and cash equivalents Cash and cash equivalents are carried at cost and represent cash on hand, time deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less. |
Accounts Receivable - Related party | Accounts receivable – related party Accounts receivable – related party are recorded at the invoiced amount less an allowance for any uncollectible accounts and do not bear interest, which are due on demand. Management reviews the adequacy of the allowance for doubtful accounts on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual customer’s financial condition, credit history, and the current economic conditions to make adjustments in the allowance when it is considered necessary. 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’s management continues to evaluate the reasonableness of the valuation allowance policy and update it if necessary. As of March 31, 2020, and December 31, 2019, no valuation allowance was recorded. |
Prepayments and Deposits | Prepayments and deposits Prepayments and deposits are cash deposited or advanced to suppliers for future inventory purchases or service providers for future services. This amount is refundable and bears no interest. For any prepayments and deposits determined by management that such advances will not be in receipts of inventories, services, or refundable, the Company will recognize an allowance account to reserve such balances. Management reviews its prepayments and deposits on a regular basis to determine if the allowance is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. The Company’s management continues to evaluate the reasonableness of the valuation allowance policy and update it if necessary. |
Investment in Marketable Equity Securities | Investment in marketable equity securities Prior to July 1, 2019, marketable securities included in investment in marketable equity securities (non-current) are stated at the lower of cost or market in the aggregate. Other marketable securities (non-current) are stated at the lower of cost or market in the aggregate and investments other than marketable equity securities in other investments (non-current) are stated at cost less any significant decline in fair value assessed to be other than temporary. Realized gains and losses on the sale of securities are based on the average cost of all the units of a particular security held at the time of sale. On July 1, 2019, the Company adopted ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities |
Investment in Non-marketable Securities | Investment in non-marketable equity securities Prior to July 1, 2019, investments in non-marketable equity securities (non-current) are stated at cost less any significant decline in fair value assessed to be other than temporary. Realized gains and losses on the sale of securities are based on the average cost of all the units of a particular security held at the time of sale. On July 1, 2019, the Company adopted ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities At each reporting period, the Company will make a qualitative assessment considering impairment indicators to evaluate whether the investment is impaired. The qualitative assessment indicators include, but are not limited to: (1) A significant deterioration in the earnings performance, credit rating, asset quality, or business prospects of the investee; (ii) A significant adverse change in the regulatory, economic, or technological environment of the investee; (iii) A significant adverse change in the general market condition of either the geographical area or the industry in which the investee operates; (iv) A bona fide offer to purchase, an offer by the investee to sell, or a completed auction process for the same or similar investment for an amount less than the carrying amount of that investment; and (v) Factors that raise significant concerns about the investee’s ability to continue as a going concern, such as negative cash flows from operations, working capital deficiencies, or noncompliance with statutory capital requirements or debt covenants. If the qualitative assessment indicators indicated that the non-marketable equity securities (non-current) is deemed to be impaired, the Company would recognize the impairment loss equal to the difference between the fair value of the investment and its carrying amount. |
Revenue Recognition | Revenue recognition On July 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (ASC Topic 606) using the modified retrospective method for contracts that were not completed as of June 30, 2019. This did not result in an adjustment to retained earnings upon adoption of this new guidance as the Company’s revenue was recognized based on the amount of consideration expected to receive in exchange for satisfying the performance obligations. The core principle underlying the revenue recognition of this ASU allows the Company to recognize - revenue that represents the transfer of goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. This will require the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. The Company’s revenue streams are recognized at a point in time for the Company’s sale of health and wellness products. The ASU requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation. The Company accounts for a contract with a customer when the contract is committed in writing, the rights of the parties, including payment terms, are identified, the contract has commercial substance and consideration is probable of substantially collection. Prior to July 1, 2019, the Company recognizes revenue from sales of goods when the following four revenue criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) selling price is fixed or determinable; and (4) collectability is reasonably assured. Revenue from supplies of health and wellness products is recognized when title and risk of loss are transferred and there are no continuing obligations to the customer. Title and the risks and rewards of ownership transfer to and accepted by the customer when the products are collected by the customer at the Company’s office. Revenue is recorded net of sales discounts, returns, allowances, and other adjustments that are based upon management’s best estimates and historical experience and are provided for in the same period as the related revenues are recorded. The application of the five-step model to the revenue streams compared to the prior guidance did not result in significant changes in the way the Company records its revenue. Upon adoption on July 1, 2019, the Company evaluated its revenue recognition policy for all revenue streams within the scope of the ASU under previous standards and using the five-step model under the new guidance and confirmed that there were no differences in the pattern of revenue recognition. Sales of Health and Wellness products - Performance obligations satisfied at a point in time On July 1, 2019, the Company derives its revenues from sales contracts with its customers with revenues being recognized when control of the health and wellness products are transferred to its customer at the Company’s office or shipment of the goods, which is generally similar to when its delivery has occurred prior to July 1, 2019. Such revenues are recognized at a point in time after all performance obligations are satisfied. The revenue is recorded net of estimated discounts and return allowances. Historically, there were no sales return as the Company’s products sold are not refundable, returnable or exchangeable. Disaggregated information of revenues by products are as follows: For the three months ended March 31, 2020 March 31, 2019 (Unaudited) (Unaudited) Ionized Cal-Mag $ - $ 55,493 Omega Blend - 68,689 Young Formula - 116,979 Organic Youth Care Cleansing Bar - 17,675 Trim+ - 65,295 Lipomask - 140,166 Total revenues $ - $ 464,297 |
Cost of Revenue | Cost of revenue Cost of revenue includes freight-in and the purchase cost of manufactured goods for sale to customers |
Selling, General, and Administrative Expenses | Selling, general and administrative expenses Selling, general and administrative expenses are primarily comprised of rental of office premises, travelling, licensing and professional fees. |
Income Taxes | Income taxes The Company accounts for income taxes in accordance with U.S. GAAP for income taxes. The charge for taxation is based on the results for the fiscal year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred taxes is accounted for using the asset and liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the consolidated financial statements and the corresponding tax basis used in the computation of assessable tax profit. In principle, deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilized. Deferred tax is calculated using tax rates that are expected to apply to the period when the asset is realized or the liability is settled. Deferred tax is charged or credited in the income statement, except when it is related to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. No penalties and interest incurred related to underpayment of income tax. The Company conducts much of its businesses activities in Hong Kong and is subject to tax in this jurisdiction. As a result of its business activities, the Company will file separate tax returns that are subject to examination by the foreign tax authorities. |
Comprehensive Income (Loss) | Comprehensive income (loss) Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under GAAP are recorded as an element of stockholders’ equity but are excluded from net income. Other comprehensive income (loss) consists of a foreign currency translation adjustment resulting from the Company not using the U.S. dollar as its functional currencies. |
Earnings (Loss) Per Share | Earnings (loss) per share The Company computes earnings (loss) per share (“EPS”) in accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common share outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of the potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. |
Foreign Currencies Translation and Transaction | Foreign currencies translation and transaction 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 Condensed Consolidated Statements of Operations and Comprehensive Income. The reporting currency of the Company is United States Dollars (“US$”) and the accompanying financial statements have been expressed in US$. The Company’s subsidiary in Labuan maintains its books and record in United States Dollars (“US$”) albeit its functional currency being the primary currency of the economic environment in which the entity operates is the Malaysian Ringgit (“MYR”). The Company’s subsidiary in Hong Kong maintains its books and record in Hong Kong Dollars (“HK$”), similar to its functional currency. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “ Translation of Financial Statement” Translation of foreign currencies into US$1 have been made at the following exchange rates for the respective periods: As of and for the three months ended As of March 31, 2020 March 31, 2019 December 31, 2019 (Unaudited) (Unaudited) Period-end MYR : US$1 exchange rate 4.34 4.10 4.09 Period-average MYR : US$1 exchange rate 4.21 4.08 4.16 Period-end HKD : US$1 exchange rate 7.75 7.85 7.79 Period-average HKD : US$1 exchange rate 7.77 7.85 7.83 Period-end AUD : US$1 exchange rate 1.63 1.41 1.43 Period-average AUD : US$1 exchange rate 1.55 1.40 1.46 |
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 operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence. |
Fair Value of Financial Instruments | Fair value of financial instruments The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company. The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. Financial instruments included in current assets and current liabilities are reported in the consolidated balance sheets at face value or cost, which approximate fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest. |
Operating Leases | Operating leases A lease for which substantially all the benefits and risks incidental to ownership remain with the lessor is classified by the lessee as an operating lease. All leases of the Company are currently classified as operating leases. The Company records the total expenses on a straight-line basis over the lease term. The Company had on July 1, 2019, adopted ASU 2016-02, “Leases” (Topic 842), and elected the practical expedients that do not require us to reassess: (1) whether any expired or existing contracts are, or contain, leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. The Company adopted the practical expedient that allows lessees to treat the lease and non-lease components of a lease as a single lease component. There is no impact from the adoption of ASC 842 as of January 1, 2020, as the Company did not have any existing leases with a lease term in excess of twelve months on January 1, 2020. |
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 such any pronouncements may be expected to cause a material impact on its financial condition or the results of its operations, as follow: In July 2017, the FASB Issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815). The amendments in Part I of the Update change the reclassification analysis of certain equity-lined financial instruments (or embedded features) with down round features. The amendments in Part II of this Update re-characterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments in Part I of this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in Part II of this Update do not require any transition guidance because those amendments do not have an accounting effect. The adoption of this ASU did not have a material effect on the Company’s consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this Update affect any entity that is required to apply the provisions of Topic 220, Income Statement – Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP. The amendments in this Update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The adoption of this ASU did not have a material effect on the Company’s consolidated financial statements . In August 2018, the FASB has issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements of Fair Value Measurement. This amendment modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the concepts in the Concepts Statement, including the consideration of costs and benefits, with the primary purpose to improve the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information required by US GAAP. The amendments in this update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company is currently evaluating the impact of ASU 2018-13 will have on its consolidated financial statements. In May 2019, the FASB issued ASU 2019-05, which is an update to ASU Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The amendments in Update 2016-13 added Topic 326, Financial Instruments—Credit Losses, and made several consequential amendments to the Codification. Update 2016-13 also modified the accounting for available-for-sale debt securities, which must be individually assessed for credit losses when fair value is less than the amortized cost basis, in accordance with Subtopic 326-30, Financial Instruments— Credit Losses—Available-for-Sale Debt Securities. The amendments in this Update address those stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. ASU 2019-05 is effective for the Company for annual and interim reporting periods beginning January 1, 2023 due the Company is qualified as an emerging growth company. The Company is currently evaluating the impact of ASU 2019-05 will have on its consolidated financial statements. In January 2020, the FASB issued ASU 2020-01 to clarify the interaction of the accounting for equity securities under ASC 321 and investments accounted for under the equity method of accounting in ASC 323 and the accounting for certain forward contracts and purchased options accounted for under ASC 815. With respect to the interactions between ASC 321 and ASC 323, the amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting when applying the measurement alternative in ASC 321, immediately before applying or upon discontinuing the equity method of accounting. With respect to forward contracts or purchased options to purchase securities, the amendments clarify that when applying the guidance in ASC 815-10-15-141(a), an entity should not consider whether upon the settlement of the forward contract or exercise of the purchased option, individually or with existing investments, the underlying securities would be accounted for under the equity method in ASC 323 or the fair value option in accordance with ASC 825. The ASU is effective for interim and annual reporting periods beginning after December 15, 2020. Early adoption is permitted, including adoption in any interim period. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements. |
Reclassification | Reclassification Certain prior period amounts have been reclassified to conform to the current period presentation for the three months ended March 31, 2019. These reclassifications have no effect on the condensed consolidated statements of operations and comprehensive income. |
Organization and Business Bac_2
Organization and Business Background (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Subsidiaries and Associates | Details of the Company’s subsidiaries: Subsidiary company name Place and date of incorporation Particulars of issued capital Principal activities Proportional of ownership interest and voting power held 1. Agape ATP Corporation Labuan, 100 shares of ordinary share of US$1 each Investment holding 100 % 2. Agape ATP International Holding Limited Hong Kong, 1,000,000 shares of ordinary share of HK$1 each Health and wellness products and health solution advisory services 100 % |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Dis-aggregated Information of Revenues | Disaggregated information of revenues by products are as follows: For the three months ended March 31, 2020 March 31, 2019 (Unaudited) (Unaudited) Ionized Cal-Mag $ - $ 55,493 Omega Blend - 68,689 Young Formula - 116,979 Organic Youth Care Cleansing Bar - 17,675 Trim+ - 65,295 Lipomask - 140,166 Total revenues $ - $ 464,297 |
Schedule of Foreign Currencies Translation Exchange Rates | Translation of foreign currencies into US$1 have been made at the following exchange rates for the respective periods: As of and for the three months ended As of March 31, 2020 March 31, 2019 December 31, 2019 (Unaudited) (Unaudited) Period-end MYR : US$1 exchange rate 4.34 4.10 4.09 Period-average MYR : US$1 exchange rate 4.21 4.08 4.16 Period-end HKD : US$1 exchange rate 7.75 7.85 7.79 Period-average HKD : US$1 exchange rate 7.77 7.85 7.83 Period-end AUD : US$1 exchange rate 1.63 1.41 1.43 Period-average AUD : US$1 exchange rate 1.55 1.40 1.46 |
Accounts Receivables - Relate_2
Accounts Receivables - Related Party (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Accounts Receivables - Related Party | As of As of Accounts receivable – related party $ 523,141 $ 520,786 Allowance for doubtful accounts - - Total accounts receivable – related party $ 523,141 $ 520,786 |
Investment in Marketable Secu_2
Investment in Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investment in Marketable Securities | As of As of Cost of investment $ 66,484 $ 134,166 Less: Unrealized holding loss (18,538 ) (68,391 ) Exchange rate effect 256 709 Investment in marketable securities $ 48,202 $ 66,484 |
Investment in Non-Marketable _2
Investment in Non-Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investment In Non-marketable Securities | |
Schedule of Investment in Non Marketable Securities | Unreserved Sdn Bhd As of As of Investment in non-marketable securities $ 730,637 $ 730,637 Less: Sale of investment in non-marketable securities (730,637 ) - Investment in non-marketable securities $ - $ 730,637 Phoenix Plus Corporation Cost of investment $ 1,500 $ 1,500 Total investment in non-marketable securities $ 1,500 $ 732,137 |
Prepayments and Deposits (Table
Prepayments and Deposits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Deposits | As of As of Prepaid expenses $ 5,458 $ 2,641 Deposits to supplier 299,310 266,552 Total prepaid expenses and deposits $ 304,768 $ 269,193 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related Parties Relationships | The Company’s related party list and relationship are as follows: Related parties Relationships Agape S.E.A. Sdn Bhd Mr. How Kok Choong, the CEO and director of the Company is also the sole shareholder and director of Agape S.E.A. Sdn Bhd Agape Superior Living Pty Ltd Mr. How Kok Choong, the CEO and director of the Company is a 51% shareholder and a director of Agape Superior Living Pty Ltd Agape Superior Living Sdn Bhd Mr. How Kok Choong, the CEO and director of the Company is also the sole shareholder and director of Agape Superior Living Sdn Bhd Agape ATP (Asia) Limited Mr. How Kok Choong, the CEO and director of the Company is also the sole shareholder and director of Agape ATP (Asia) Limited. |
Schedule of Related Party Transactions | Related party transactions for the three months ended March 31, 2020 and 2019; and as of March 31, 2020, and December 31, 2019 are as per table below: For the three months ended As of March 31, 2020 March 31, 2019 March 31, 2020 December 31, 2019 (Unaudited) (Unaudited) (Unaudited) Revenue Accounts Receivable, Trade Agape S.E.A. Sdn Bhd $ - $ 464,297 $ 523,141 $ 520,786 Expenses paid on behalf Amount due from a related party Agape ATP (Asia) Limited $ - $ 2,200 $ 2,227 $ 2,217 Sundry Purchases Prepayments and Deposits Agape Superior Living Pty Ltd $ - $ - $ 2,783 $ - |
Other Payables and Accrued Li_2
Other Payables and Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Payables and Accrued Liabilities | As of As of Accrued professional fees $ 68,474 $ 58,594 Others 28,985 18,652 Total payables and accrued liabilities $ 97,459 $ 77,246 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income/(Loss) Before Income Tax | The United States and foreign components of income (loss) before income taxes were comprised of the following: For the three months ended March 31, 2020 March 31, 2019 (Unaudited) (Unaudited) Tax jurisdictions from: - Local $ (142,419 ) $ (14,724 ) - Foreign - Labuan (55,587 ) 59,674 - Foreign - Hong Kong (33,744 ) 19,300 Income (Loss) before income tax $ (231,750 ) $ 64,250 |
Schedule of Provision for Income Tax | The benefit for income taxes consisted of the following: For the three months ended March 31, 2020 March 31, 2019 (Unaudited) (Unaudited) Current: - Local $ - $ - - Foreign - (6,965 ) Deferred: - Local - - - Foreign - - Benefit for income taxes $ - $ (6,965 ) |
Schedule of Effective Income Tax Rate | The following table reconciles the local (United States) statutory rates to the Company’s effective tax rate for the periods indicated below: For the three months ended March 31, 2020 March 31, 2019 (Unaudited) (Unaudited) U.S. statutory rate 21.0 % 21.0 % Valuation allowance (21.0 )% (21.0 )% Permanent difference (1) 0.0 % (10.8 )% Effective tax rate 0.0 % (10.8 )% (1) |
Schedule of Deferred Tax Assets | The following table sets forth the significant components of the aggregate deferred tax assets of the Company as of: As of As of December 31, 2019 (Unaudited) Deferred tax assets: Net operating loss carry forwards in U.S. $ 73,318 $ 43,410 Less: valuation allowance (73,318 ) (43,410 ) Deferred tax assets $ - $ - |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Purchase Commitment | The total future minimum purchase commitment under a non-cancellable purchase contract as of March 31, 2020 for the next five years and thereafter is as follows: Twelve months ending March 31, Minimum purchase 2021 $ 693,900 2022 693,900 2023 693,900 2024 693,900 2025 693,900 Thereafter 1,908,225 Total minimum purchase commitments required $ 5,377,725 |
Organization and Business Bac_3
Organization and Business Background (Details Narrative) | Mar. 31, 2020 | Mar. 02, 2020 |
Ownership interest percentage | 17.86% | |
Agape ATP International Holding Limited [Member] | ||
Ownership interest percentage | 100.00% |
Organization and Business Bac_4
Organization and Business Background - Schedule of Subsidiaries and Associates (Details) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 02, 2020 | |
Proportional of ownership interest and voting power held | 17.86% | |
Subsidiary Company [Member] | ||
Subsidiary company name | Agape ATP Corporation | |
Place and date of incorporation | Labuan, March 6, 2017 | |
Particulars of issued capital | 100 shares of ordinary share of US$1 each | |
Principal activities | Investment holding | |
Proportional of ownership interest and voting power held | 100.00% | |
Subsidiary Company One [Member] | ||
Subsidiary company name | Agape ATP International Holding Limited | |
Place and date of incorporation | Hong Kong, June 1, 2017 | |
Particulars of issued capital | 1,000,000 shares of ordinary share of HK$1 each | |
Principal activities | Health and wellness products and health solution advisory services | |
Proportional of ownership interest and voting power held | 100.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | ||
Accounts receivable - related party valuation allowance | ||
Income tax examination, likelihood of unfavorable settlement | Greater than 50% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Dis-aggregated Information of Revenues (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Total revenues | $ 464,297 | |
Ionized Cal-Mag [Member] | ||
Total revenues | 55,493 | |
Omega Blend [Member] | ||
Total revenues | 68,689 | |
Young Formula [Member] | ||
Total revenues | 116,979 | |
Organic Youth Care Cleansing Bar [Member] | ||
Total revenues | 17,675 | |
Trim+ [Member] | ||
Total revenues | 65,295 | |
Lipomask [Member] | ||
Total revenues | $ 140,166 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Foreign Currencies Translation Exchange Rates (Details) | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Period-end MYR [Member] | |||
Foreign Currency Exchange Rate, Translation | 4.34 | 4.09 | 4.10 |
Period-average MYR [Member] | |||
Foreign Currency Exchange Rate, Translation | 4.21 | 4.16 | 4.08 |
Period-end HKD [Member] | |||
Foreign Currency Exchange Rate, Translation | 7.75 | 7.79 | 7.85 |
Period-average HKD [Member] | |||
Foreign Currency Exchange Rate, Translation | 7.77 | 7.83 | 7.85 |
Period-end AUD [Member] | |||
Foreign Currency Exchange Rate, Translation | 1.63 | 1.43 | 1.41 |
Period-average AUD [Member] | |||
Foreign Currency Exchange Rate, Translation | 1.55 | 1.46 | 1.40 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Foreign Currencies Translation Exchange Rates (Details) (Parenthetical) - USD ($) | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
MYR Currency [Member] | |||
Exchange rate | $ 1 | $ 1 | $ 1 |
HKD Currency [Member] | |||
Exchange rate | 1 | 1 | 1 |
AUD Currency [Member] | |||
Exchange rate | $ 1 | $ 1 | $ 1 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details Narrative) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 10, 2019 |
Cash and cash equivalents | $ 2,588,207 | $ 2,744,457 | |
Cash on hand | 135,436 | 238,937 | |
Time deposits | $ 2,452,771 | $ 2,505,520 | |
Minimum [Member] | |||
Percentage of Interest rate for time deposits | 2.95% | ||
Maximum [Member] | |||
Percentage of Interest rate for time deposits | 3.25% |
Accounts Receivables - Relate_3
Accounts Receivables - Related Party - Schedule of Accounts Receivables - Related Party (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Accounts receivable - related party | $ 523,141 | $ 520,786 |
Allowance for doubtful accounts | ||
Total accounts receivables - related Party | $ 523,141 | $ 520,786 |
Investment in Marketable Secu_3
Investment in Marketable Securities (Details Narrative) - Greenpro Capital Corp. [Member] - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 | Oct. 16, 2018 | May 17, 2018 |
Investment in securities, shares | 33,333 | 83,333 | ||
Investment amount | $ 66,484 | $ 134,166 | $ 1,000 | $ 500,000 |
Purchased price per shares | $ 0.03 | $ 6 |
Investment in Marketable Secu_4
Investment in Marketable Securities - Schedule of Investment in Marketable Securities (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Oct. 16, 2018 | May 17, 2018 | |
Less: Unrealized holding loss | $ 18,538 | ||||
Investment in marketable securities | 48,202 | $ 66,484 | |||
Greenpro Capital Corp. [Member] | |||||
Cost of investment | 66,484 | 134,166 | $ 1,000 | $ 500,000 | |
Less: Unrealized holding loss | (18,538) | (68,391) | |||
Exchange rate effect | 256 | 709 | |||
Investment in marketable securities | $ 48,202 | $ 66,484 |
Investment in Non-Marketable _3
Investment in Non-Marketable Securities (Details Narrative) | 3 Months Ended | ||||||
Mar. 31, 2020USD ($)shares | Mar. 31, 2019USD ($) | Mar. 31, 2020MYR (RM)shares | Mar. 02, 2020 | Dec. 31, 2019USD ($)shares | Apr. 03, 2019USD ($)$ / sharesshares | Mar. 10, 2019 | |
Equity interest percentage | 17.86% | ||||||
Ordinary shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | ||||
Ordinary shares issued | 376,275,500 | 376,275,500 | 376,275,500 | ||||
Ordinary shares outstanding | 376,275,500 | 376,275,500 | 376,275,500 | ||||
Proceeds from investments | $ | $ 70,173 | ||||||
Amount due from director | $ | 656,495 | ||||||
Phoenix Plus Corporation [Member] | |||||||
Investment amount | $ | 1,500 | 1,500 | $ 1,500 | ||||
Equity interest percentage | 5.00% | ||||||
Share purchased price per share | $ / shares | $ 0.0001 | ||||||
Phoenix Plus Corporation [Member] | Common Stock [Member] | |||||||
Shares purchased during period | 15,000,000 | ||||||
Maximum [Member] | |||||||
Equity interest percentage | 20.00% | ||||||
Minimum [Member] | |||||||
Equity interest percentage | 17.86% | ||||||
Director [Member] | |||||||
Investment amount | $ | $ 863,592 | ||||||
Equity interest percentage | 20.00% | 20.00% | |||||
Director [Member] | MYR Currency [Member] | |||||||
Investment amount | RM | RM 3,500,000 | ||||||
Mr. How Kok Choong [Member] | |||||||
Investment amount | $ | 730,637 | ||||||
Ordinary shares authorized | 2,500,000 | 2,500,000 | |||||
Ordinary shares issued | 2,500,000 | 2,500,000 | |||||
Ordinary shares outstanding | 2,500,000 | 2,500,000 | |||||
Amount due from director | $ | $ 730,637 |
Investment in Non-Marketable _4
Investment in Non-Marketable Securities - Schedule of Investment in Non Marketable Securities (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 | Apr. 03, 2019 |
Total investment in non-marketable securities | $ 1,500 | $ 732,137 | |
Phoenix Plus Corporation [Member] | |||
Cost of investment | 1,500 | 1,500 | $ 1,500 |
Total investment in non-marketable securities | 1,500 | 732,137 | |
Directors of Unreserved Investments [Member] | |||
Investment in non-marketable securities | 730,637 | 730,637 | |
Less: Sale of investment in non-marketable securities | (730,637) | ||
Investment in non-marketable securities | $ 730,637 |
Prepayments and Deposits - Sche
Prepayments and Deposits - Schedule of Prepaid Expenses and Deposits (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 5,458 | $ 2,641 |
Deposits to supplier | 299,310 | 266,552 |
Total prepaid expenses and deposits | $ 304,993 | $ 269,193 |
Amount Due From a Director (Det
Amount Due From a Director (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 02, 2020 | Dec. 31, 2019 | |
Ownership interest percentage | 17.86% | ||
Amount due from a director | $ 656,495 | ||
Sale of non-marketable securities percentage | 10.00% | ||
Mr. How Kok Choong [Member] | |||
Amount due from a director | $ 730,637 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Parties Relationships (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Agape S.E.A. Sdn Bhd [Member] | |
Related parties relationship, description | Mr. How Kok Choong, the CEO and director of the Company is also the sole shareholder and director of Agape S.E.A. Sdn Bhd |
Agape Superior Living Pty Ltd [Member] | |
Related parties relationship, description | Mr. How Kok Choong, the CEO and director of the Company is a 51% shareholder and a director of Agape Superior Living Pty Ltd |
Agape Superior Living Sdn Bhd [Member] | |
Related parties relationship, description | Mr. How Kok Choong, the CEO and director of the Company is also the sole shareholder and director of Agape Superior Living Sdn Bhd |
Agape ATP (Asia) Limited [Member] | |
Related parties relationship, description | Mr. How Kok Choong, the CEO and director of the Company is also the sole shareholder and director of Agape ATP (Asia) Limited. |
Related Party Transactions - _2
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Revenue | $ 464,297 | ||
Accounts Receivable, Trade | 523,141 | $ 520,786 | |
Prepayments and Deposits | 304,993 | 269,193 | |
Agape S.E.A. Sdn Bhd [Member] | |||
Revenue | 464,297 | ||
Accounts Receivable, Trade | 523,141 | 520,786 | |
Agape ATP (Asia) Limited [Member] | |||
Expenses paid on behalf | 2,200 | ||
Amount due from a related party | 2,227 | 2,217 | |
Agape Superior Living Pty Ltd [Member] | |||
Sundry Purchases | |||
Prepayments and Deposits | $ 2,783 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - shares | 3 Months Ended | 6 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | ||
Preferred stock, shares authorized | 200,000,000 | 200,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 376,275,500 | 376,275,500 |
Common stock, shares outstanding | 376,275,500 | 376,275,500 |
Potentially dilutive securities outstanding |
Other Payables and Accrued Li_3
Other Payables and Accrued Liabilities - Schedule of Other Payables and Accrued Liabilities (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Accrued professional fees | $ 68,474 | $ 58,594 |
Others | 28,985 | 18,652 |
Total payables and accrued liabilities | $ 97,459 | $ 77,246 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Cumulative net operating loss | $ 10,000 | ||
Valuation allowance | $ 73,318 | $ 43,410 | |
Tax percentage | 0.00% | (10.80%) | |
Statutory income tax rate | 21.00% | 21.00% | |
United States of America [Member] | |||
Cumulative net operating loss | $ 349,000 | ||
Operating loss carryforwards expire year | 2027 | ||
Valuation allowance | $ 73,000 | $ 43,000 | |
United States of America [Member] | If Unutilized [Member] | |||
Cumulative net operating loss | $ 24,000 | ||
Operating loss carryforwards expire year | 2028 | ||
Labuan [Member] | |||
Tax percentage | 3.00% | ||
Hong Kong [Member] | |||
Statutory income tax rate | 16.50% |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income/(Loss) Before Income Tax (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Local | $ (142,419) | $ (14,724) |
Loss before income tax | (231,750) | 64,250 |
Labuan [Member] | ||
Foreign | (55,587) | 59,674 |
Hong Kong [Member] | ||
Foreign | $ (33,744) | $ 19,300 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Tax (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Current, Local | ||
Current, Foreign | (6,965) | |
Deferred, Local | ||
Deferred, Foreign | ||
Income tax expense | $ (6,965) |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate (Details) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Income Tax Disclosure [Abstract] | |||
U.S. statutory rate | 21.00% | 21.00% | |
Valuation allowance | (21.00%) | (21.00%) | |
Permanent difference | [1] | 0.00% | (10.80%) |
Effective tax rate | 0.00% | (10.80%) | |
[1] | This was related to disallowed expenditure incurred in the ordinary course of business. |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carry forwards in U.S. | $ 73,318 | $ 43,410 |
Less: valuation allowance | (73,318) | (43,410) |
Deferred tax asset |
Concentrations of Risks (Detail
Concentrations of Risks (Details Narrative) | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
One Customer [Member] | Revenues [Member] | |||
Concentrations of risk percentage | 100.00% | ||
One Customer [Member] | Accounts Receivable [Member] | |||
Concentrations of risk percentage | 100.00% | 100.00% | |
Vendor One [Member] | |||
Concentrations of risk percentage | 54.00% | ||
Vendor Two [Member] | |||
Concentrations of risk percentage | 46.00% | ||
One Vendor [Member] | Accounts Payable [Member] | |||
Concentrations of risk percentage | 100.00% |
Commitments and Contingencies_2
Commitments and Contingencies (Details Narrative) - USD ($) | May 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 |
Operating lease, expiration date | Apr. 30, 2020 | ||
Remaining operating lease termination date | Apr. 23, 2020 | ||
Operating lease, rent expenses | $ 13,508 | $ 13,375 | |
Subsequent Event [Member] | |||
Operating lease, rent expenses | $ 7,862 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Purchase Commitment (Details) | Mar. 31, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2021 | $ 693,900 |
2022 | 693,900 |
2023 | 693,900 |
2024 | 693,900 |
2025 | 693,900 |
Thereafter | 1,908,225 |
Total minimum purchase commitments required | $ 5,377,725 |
Subsequent Event (Details Narra
Subsequent Event (Details Narrative) - USD ($) | May 08, 2020 | Mar. 31, 2020 | Mar. 02, 2020 | Dec. 31, 2019 |
Ownership interest percentage | 17.86% | |||
Common stock shares outstanding | 376,275,500 | 376,275,500 | ||
Mr. How Kok Choong [Member] | ||||
Common stock shares outstanding | 2,500,000 | |||
Subsequent Event [Member] | Share Exchange Agreement [Member] | Mr. How Kok Choong [Member] | ||||
Issuance of common stock shares | 162,694 | |||
Common stock shares outstanding | 376,438,194 | |||
Percentage of common stock shares issued and outstanding | 0.0432% | |||
Value of addtional shares issued | $ 1,057,508 | |||
Shares issued price per share | $ 6.50 | |||
Subsequent Event [Member] | Share Exchange Agreement [Member] | Mr. How Kok Choong [Member] | Agape Superior Living Sdn Bhd [Member] | ||||
Payments to acquire ordinary shares | $ 9,590,596 | |||
Ordinary shares no par value | ||||
Ownership interest percentage | 99.99% | |||
Purchase consideration value | $ 1,714,003 |