Cover
Cover | 9 Months Ended |
Sep. 30, 2020 | |
Cover [Abstract] | |
Document Type | S-1/A |
Amendment Flag | true |
Amendment Description | Amendment No:1 |
Entity Registrant Name | AGAPE ATP CORPORATION |
Entity Central Index Key | 0001713210 |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business Flag | true |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Current assets | ||||||||
Cash | $ 3,300,800 | $ 3,517,600 | $ 2,744,457 | |||||
Accounts receivable | 172,757 | |||||||
Accounts receivable – related party | 520,786 | |||||||
Amount due from related parties | 5,599 | 3,235 | 2,217 | |||||
Inventories | 490,275 | 589,814 | ||||||
Prepaid taxes | 627,232 | 1,104,495 | ||||||
Prepayments and other assets | 184,307 | 296,370 | 269,193 | |||||
Total current assets | 4,608,213 | 5,684,271 | 3,536,653 | |||||
Other assets | ||||||||
Property and equipment, net | 252,441 | 298,309 | ||||||
Intangible assets, net | 4,649 | 5,826 | ||||||
Operating right-of-use assets | 304,060 | 394,141 | ||||||
Investment in marketable securities | 410,469 | 577,035 | 66,484 | |||||
Investment in non-marketable securities | 1,500 | 1,500 | 732,137 | |||||
Deferred offering costs | 263,685 | 249,525 | ||||||
Deferred tax assets, net | 47,090 | |||||||
Total other assets | 1,283,894 | 1,526,336 | 798,621 | |||||
Total assets | 5,892,107 | 7,210,607 | 4,335,274 | |||||
Current liabilities | ||||||||
Accounts payable | 2,790 | |||||||
Customer deposits | 168,744 | 236,134 | ||||||
Operating lease liabilities | 149,212 | 154,276 | ||||||
Other payables and accrued liabilities | 505,550 | 647,677 | 77,246 | |||||
Income tax payables | 36,877 | |||||||
Accounts payable - related party | 455 | 3,952 | ||||||
Total current liabilities | 860,383 | 1,038,542 | 83,988 | |||||
Other liabilities | ||||||||
Operating lease liabilities | 157,396 | 241,488 | ||||||
Deferred tax liabilities | 5,743 | |||||||
Total Non-current Liabilities | 157,396 | 247,231 | ||||||
Total liabilities | 1,017,779 | 1,285,773 | 83,988 | |||||
Shareholders’ equity | ||||||||
Preferred stock, $0.0001 par value; 200,000,000 shares authorized; None issued and outstanding | ||||||||
*Ordinary shares, no par value, 9,590,598 and 1,500,000 shares issued and outstanding as of December 31, 2019 and 2018, respectively | 37,645 | 37,645 | 37,628 | |||||
Additional paid in capital | 6,440,616 | 6,440,616 | 5,293,082 | |||||
Retained earnings (accumulated deficit) | (1,710,318) | (734,443) | (1,089,209) | |||||
Accumulated other comprehensive income | 106,385 | 181,016 | 9,785 | |||||
Total shareholders’ equity | 4,874,328 | 5,924,834 | $ 4,027,306 | 4,251,286 | $ 4,956,334 | |||
Total liabilities and shareholders’ equity | $ 5,892,107 | $ 7,210,607 | 4,335,274 | |||||
Agape Superior Living S D N B H D [Member] | ||||||||
Current assets | ||||||||
Cash | 1,206,493 | 1,030,829 | 1,544,525 | |||||
Other receivables | 33,210 | 34,672 | 48,507 | |||||
Other receivables - related parties | 219,121 | 233,942 | 115,225 | |||||
Inventories | 616,880 | 552,901 | 137,553 | |||||
Prepaid taxes | 1,206,821 | 1,181,963 | 188,198 | |||||
Prepayments and other assets | 318,267 | 484,880 | 468,850 | |||||
Prepayment - related party | 214,701 | |||||||
Total current assets | 3,600,792 | 3,519,187 | 2,717,559 | |||||
Other assets | ||||||||
Property and equipment, net | 325,648 | 364,604 | 429,620 | |||||
Intangible assets, net | 6,686 | 7,592 | 11,027 | |||||
Deferred tax assets, net | 172,250 | 234,797 | ||||||
Total other assets | 504,584 | 606,993 | 440,647 | |||||
Total assets | 4,105,376 | 4,126,180 | 3,158,206 | |||||
Current liabilities | ||||||||
Customer deposits | 1,600,606 | 1,632,747 | 1,371,047 | |||||
Other payables and accrued liabilities | 209,096 | 252,902 | 968,547 | |||||
Other payables - related parties | 12,104 | 4,376 | ||||||
Accounts payable - related party | 491,628 | 520,786 | ||||||
Total current liabilities | 2,301,330 | 2,418,539 | 2,343,970 | |||||
Other liabilities | ||||||||
Deferred tax liabilities | 18,901 | |||||||
Total liabilities | 2,301,330 | 2,418,539 | 2,362,871 | |||||
Commitments and contingencies | ||||||||
Shareholders’ equity | ||||||||
*Ordinary shares, no par value, 9,590,598 and 1,500,000 shares issued and outstanding as of December 31, 2019 and 2018, respectively | 2,372,008 | [1] | 2,372,008 | [1] | 394,737 | [2] | ||
Retained earnings (accumulated deficit) | (542,428) | (740,004) | 319,490 | |||||
Accumulated other comprehensive income | (25,534) | 75,637 | 81,108 | |||||
Total shareholders’ equity | 1,804,046 | 1,707,641 | 795,335 | |||||
Total liabilities and shareholders’ equity | $ 4,105,376 | $ 4,126,180 | $ 3,158,206 | |||||
[1] | Pursuant to the New Companies Act 2016 effective from January 31, 2017, the concept of authorized share capital and par value has been abolished, the Company is no longer required to state authorized share capital and par value. | |||||||
[2] | Pursuant to the New Companies Act 2016 effective from January 31, 2017, the concept of authorized share capital and par value has been abolished, the Company is no longer required to state authorized share capital and par value. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
VIE consolidated amount of cash and cash equivalents | $ 23,526 | $ 37,387 | |
VIE consolidated amount of prepaid taxes | 4,982 | 11,330 | |
VIE consolidated amount of deferred tax assets | 7,985 | 0 | |
VIE consolidated amount of other payables and accrued liabilities | $ 980 | $ 1,904 | |
Preferred stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 200,000,000 | 200,000,000 | 200,000,000 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Preferred stock, shares issued | 0 | 0 | 0 |
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 |
Ordinary shares, shares outstanding | 376,452,047 | 376,452,047 | 376,275,500 |
Ordinary shares, shares issued | 376,452,047 | 376,452,047 | 376,275,500 |
Agape Superior Living S D N B H D [Member] | |||
Ordinary shares, par value | $ 0 | ||
Ordinary shares, shares outstanding | 9,590,598 | ||
Ordinary shares, shares issued | 9,590,598 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
REVENUE | $ 303,786 | $ 1,510,208 | $ 605,566 | $ 1,510,208 | $ 3,434,561 | |||||
REVENUE – RELATED PARTY | 13,654 | 13,654 | 429,362 | 18,060 | 1,290,131 | |||||
Net revenues | 303,786 | 1,523,862 | 605,566 | 1,523,862 | 429,362 | 3,452,621 | 1,290,131 | |||
COST OF REVENUE | (35,623) | (471,554) | (113,214) | (471,554) | (383,479) | (775,855) | (1,200,829) | |||
Gross profit | 268,163 | 1,052,308 | 492,352 | 1,052,308 | 45,883 | 2,676,766 | 89,302 | |||
Operating expenses | ||||||||||
SELLING | (100,838) | (108,894) | (216,952) | (109,356) | (376,582) | (7,846) | ||||
COMMISSION | (92,774) | (382,498) | (181,213) | (382,498) | (830,659) | |||||
GENERAL AND ADMINISTRATIVE | (361,862) | (514,724) | (724,008) | (673,778) | (312,270) | (1,627,660) | (396,048) | |||
PROVISION FOR DOUBTFUL ACCOUNTS | (121,686) | (121,686) | ||||||||
TOTAL OPERATING EXPENSES | (677,160) | (1,006,116) | (1,243,859) | (1,165,632) | (312,270) | (2,834,901) | (403,894) | |||
Income (loss) from operations | (408,997) | 46,192 | (751,507) | (113,324) | (266,387) | (158,135) | (314,592) | |||
Other income | ||||||||||
Other income, net | 11,770 | 29,911 | (48,546) | (23,785) | (4,153) | 164,283 | 36,301 | |||
Loss from equity investment | (26,085) | |||||||||
Unrealized holding gain (loss) on marketable securities | (241,027) | 145,204 | (165,731) | 126,666 | (68,391) | 350,137 | (68,391) | |||
Dividend income from marketable securities | 160,062 | |||||||||
Gain on deemed disposal of shares in Investee Company | 16,509 | |||||||||
Impairment loss in equity investment | (366,834) | |||||||||
Total other income, net | (229,257) | 175,115 | (214,277) | 102,881 | (72,544) | 674,482 | (408,500) | |||
Income (loss) before income taxes | (638,254) | 221,307 | (965,784) | (10,443) | (338,931) | 516,347 | (723,092) | |||
Provision for (benefits of) income taxes | (3,971) | (134,067) | (10,091) | (134,067) | (161,581) | 6,965 | ||||
Net income (loss) | (642,225) | 87,240 | $ (231,750) | $ 71,215 | (975,875) | (144,510) | (338,931) | 354,766 | (716,127) | |
OTHER COMPREHENSIVE INCOME | ||||||||||
Foreign currency translation adjustment | (36,347) | 28,042 | (74,631) | 35,812 | 9,864 | 171,231 | 11,079 | |||
Comprehensive income (loss) | $ (678,572) | $ 115,282 | $ (1,050,506) | $ (108,698) | $ (329,067) | $ 525,997 | $ (705,048) | |||
(Loss) earnings per share | ||||||||||
Basic and diluted | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING | ||||||||||
Basic and diluted | 376,452,047 | 376,370,256 | 376,452,047 | 376,322,878 | 376,275,500 | 376,387,778 | 376,275,500 | |||
Agape Superior Living S D N B H D [Member] | ||||||||||
REVENUE | 1,241,252 | 1,214,600 | $ 4,139,359 | 14,393,762 | ||||||
Net revenues | 1,241,252 | 1,214,600 | 4,139,359 | 14,393,762 | ||||||
Cost of revenues | 111,489 | 203,838 | 857,250 | 2,391,597 | ||||||
Gross profit | 1,129,763 | 1,010,762 | 3,282,109 | 12,002,165 | ||||||
Operating expenses | ||||||||||
Selling expenses | 148,472 | 400,971 | 1,759,136 | 1,339,754 | ||||||
COMMISSION | (411,266) | (601,205) | (1,611,172) | (7,045,419) | ||||||
Commission expenses | 411,266 | 601,205 | 1,611,172 | 7,045,419 | ||||||
General and administrative expenses | 325,029 | 313,170 | 1,307,715 | 1,083,717 | ||||||
Total operating expenses | 884,767 | 1,315,346 | 4,678,023 | 9,468,890 | ||||||
Income (loss) from operations | 244,996 | (304,584) | (1,395,914) | 2,533,275 | ||||||
Other income | ||||||||||
Other income, net | 2,688 | (5,933) | 20,175 | 37,280 | ||||||
Interest income | 725 | 1,160 | 4,021 | 8,904 | ||||||
Total other income, net | 3,413 | (4,773) | 24,196 | 46,184 | ||||||
Income (loss) before income taxes | 248,409 | (309,357) | (1,371,718) | 2,579,459 | ||||||
Provision for (benefits of) income taxes | 50,833 | (57,232) | (312,224) | 597,548 | ||||||
Net income (loss) | 197,576 | (252,125) | (1,059,494) | 1,981,911 | ||||||
OTHER COMPREHENSIVE INCOME | ||||||||||
Foreign currency translation adjustment | (101,171) | 2,460 | (5,471) | 2,460 | ||||||
Comprehensive income (loss) | $ 96,405 | $ (249,665) | $ (1,064,965) | $ 1,984,371 | ||||||
(Loss) earnings per share | ||||||||||
Basic and diluted | $ 0.02 | $ (0.17) | $ (0.57) | $ 1.32 | ||||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING | ||||||||||
Basic and diluted | 9,590,598 | 1,500,000 | 1,854,656 | 1,500,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Common Stock [Member] | Common Stock [Member]Agape Superior Living S D N B H D [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Retained Earnings [Member]Agape Superior Living S D N B H D [Member] | AOCI Attributable to Parent [Member] | AOCI Attributable to Parent [Member]Agape Superior Living S D N B H D [Member] | Total | Agape Superior Living S D N B H D [Member] |
Beginning balance, value at Dec. 31, 2017 | $ 394,737 | $ 1,630,045 | $ 78,648 | $ 2,103,430 | |||||
Balance, shares at Dec. 31, 2017 | 1,500,000 | ||||||||
Net loss | 1,981,911 | 1,981,911 | |||||||
Foreign currency translation adjustment | 2,460 | 2,460 | |||||||
Dividend distributions | (3,292,466) | (3,292,466) | |||||||
Capital contributions by a shareholder, shares | |||||||||
Ending balance, value at Dec. 31, 2018 | $ 37,628 | $ 394,737 | $ 5,293,082 | $ (373,082) | 319,490 | $ (1,294) | 81,108 | 4,956,334 | 795,335 |
Balance, shares at Dec. 31, 2018 | 376,275,500 | 1,500,000 | |||||||
Net loss | (252,125) | 71,215 | (252,125) | ||||||
Foreign currency translation adjustment | 9,555 | 9,555 | |||||||
Ending balance, value at Mar. 31, 2019 | $ 394,737 | 67,365 | 90,663 | 5,024,352 | 552,765 | ||||
Balance, shares at Mar. 31, 2019 | 1,500,000 | ||||||||
Beginning balance, value at Dec. 31, 2018 | $ 37,628 | $ 394,737 | 5,293,082 | (373,082) | 319,490 | (1,294) | 81,108 | 4,956,334 | 795,335 |
Balance, shares at Dec. 31, 2018 | 376,275,500 | 1,500,000 | |||||||
Net loss | (716,127) | (1,059,494) | (716,127) | (1,059,494) | |||||
Foreign currency translation adjustment | 11,079 | (5,471) | 11,079 | (5,471) | |||||
Issuance of common stock in connection with acquisition of Agape Superior Living Sdn Bhd | |||||||||
ssuance of common stock in connection with acquisition of Agape Superior Living Sdn Bhd, shares | |||||||||
Capital contributions by a shareholder | $ 1,977,271 | 1,977,271 | |||||||
Capital contributions by a shareholder, shares | 8,090,598 | ||||||||
Ending balance, value at Dec. 31, 2019 | $ 37,628 | $ 2,372,008 | 5,293,082 | (1,089,209) | (740,004) | 9,785 | 75,637 | 4,251,286 | 1,707,641 |
Balance, shares at Dec. 31, 2019 | 376,275,500 | 9,590,598 | |||||||
Net loss | (231,750) | 197,576 | (231,750) | 197,576 | |||||
Foreign currency translation adjustment | 7,770 | (101,171) | 7,770 | (101,171) | |||||
Ending balance, value at Mar. 31, 2020 | $ 37,628 | $ 2,372,008 | 5,293,082 | (1,320,959) | (542,428) | 17,555 | (25,534) | 4,027,306 | 1,804,046 |
Balance, shares at Mar. 31, 2020 | 376,275,500 | 9,590,598 | |||||||
Beginning balance, value at Dec. 31, 2019 | $ 37,628 | $ 2,372,008 | 5,293,082 | (1,089,209) | (740,004) | 9,785 | 75,637 | 4,251,286 | 1,707,641 |
Balance, shares at Dec. 31, 2019 | 376,275,500 | 9,590,598 | |||||||
Net loss | (144,510) | ||||||||
Ending balance, value at Jun. 30, 2020 | $ 37,644 | 6,350,574 | (1,233,719) | 45,597 | 5,200,096 | ||||
Balance, shares at Jun. 30, 2020 | 376,438,194 | ||||||||
Beginning balance, value at Dec. 31, 2019 | $ 37,628 | $ 2,372,008 | 5,293,082 | (1,089,209) | (740,004) | 9,785 | 75,637 | 4,251,286 | 1,707,641 |
Balance, shares at Dec. 31, 2019 | 376,275,500 | 9,590,598 | |||||||
Net loss | 354,766 | 354,766 | |||||||
Foreign currency translation adjustment | 171,231 | 171,231 | |||||||
Issuance of common stock in connection with acquisition of Agape Superior Living Sdn Bhd | $ 17 | 1,147,534 | 1,147,551 | ||||||
ssuance of common stock in connection with acquisition of Agape Superior Living Sdn Bhd, shares | 176,547 | ||||||||
Ending balance, value at Dec. 31, 2020 | $ 37,645 | 6,440,616 | (734,443) | 181,016 | 5,924,834 | ||||
Balance, shares at Dec. 31, 2020 | 376,452,047 | ||||||||
Beginning balance, value at Mar. 31, 2020 | $ 37,628 | $ 2,372,008 | 5,293,082 | (1,320,959) | $ (542,428) | 17,555 | $ (25,534) | 4,027,306 | $ 1,804,046 |
Balance, shares at Mar. 31, 2020 | 376,275,500 | 9,590,598 | |||||||
Net loss | 87,240 | 87,240 | |||||||
Foreign currency translation adjustment | 28,042 | 28,042 | |||||||
Issuance of common stock in connection with acquisition of Agape Superior Living Sdn Bhd | $ 16 | 1,057,492 | 1,057,508 | ||||||
ssuance of common stock in connection with acquisition of Agape Superior Living Sdn Bhd, shares | 162,694 | ||||||||
Ending balance, value at Jun. 30, 2020 | $ 37,644 | 6,350,574 | (1,233,719) | 45,597 | 5,200,096 | ||||
Balance, shares at Jun. 30, 2020 | 376,438,194 | ||||||||
Beginning balance, value at Dec. 31, 2020 | $ 37,645 | 6,440,616 | (734,443) | 181,016 | 5,924,834 | ||||
Balance, shares at Dec. 31, 2020 | 376,452,047 | ||||||||
Net loss | (333,650) | (333,650) | |||||||
Foreign currency translation adjustment | (38,284) | (38,284) | |||||||
Ending balance, value at Mar. 31, 2021 | $ 37,645 | 6,440,616 | (1,068,093) | 142,732 | 5,552,900 | ||||
Balance, shares at Mar. 31, 2021 | 376,452,047 | ||||||||
Beginning balance, value at Dec. 31, 2020 | $ 37,645 | 6,440,616 | (734,443) | 181,016 | 5,924,834 | ||||
Balance, shares at Dec. 31, 2020 | 376,452,047 | ||||||||
Net loss | (975,875) | ||||||||
Ending balance, value at Jun. 30, 2021 | $ 37,645 | 6,440,616 | (1,710,318) | 106,385 | 4,874,328 | ||||
Balance, shares at Jun. 30, 2021 | 376,452,047 | ||||||||
Beginning balance, value at Mar. 31, 2021 | $ 37,645 | 6,440,616 | (1,068,093) | 142,732 | 5,552,900 | ||||
Balance, shares at Mar. 31, 2021 | 376,452,047 | ||||||||
Net loss | (642,225) | (642,225) | |||||||
Foreign currency translation adjustment | (36,347) | (36,347) | |||||||
Ending balance, value at Jun. 30, 2021 | $ 37,645 | $ 6,440,616 | $ (1,710,318) | $ 106,385 | $ 4,874,328 | ||||
Balance, shares at Jun. 30, 2021 | 376,452,047 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities | ||||||||
Net (loss) income | $ (231,750) | $ 71,215 | $ (975,875) | $ (144,510) | $ (338,931) | $ 354,766 | $ (716,127) | |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities | ||||||||
Depreciation | 38,179 | 17,716 | 55,407 | |||||
Amortization | 1,006 | 482 | 1,505 | |||||
Amortization of operating right-of-use assets | 75,387 | 32,756 | 106,561 | |||||
Loss from equity investment | 26,085 | |||||||
Dividend income from marketable securities | (160,062) | |||||||
Gain on deemed disposal of shares in investee company | (16,509) | |||||||
Impairment loss in equity investment | 366,834 | |||||||
Unrealized holding (gain) loss on marketable securities | 165,731 | (126,666) | 68,391 | (350,137) | 68,391 | |||
Deferred tax expense | (53,299) | 134,067 | 178,329 | |||||
Inventory write-down | 36,636 | 0 | 0 | |||||
Provision for doubtful accounts | 121,686 | |||||||
Change in operating assets and liabilities | ||||||||
Accounts receivable | 169,393 | (322,547) | (165,149) | |||||
Accounts receivable – related party | (8,617) | (85,602) | (518,940) | |||||
Amount due from related parties | (2,417) | (2,210) | ||||||
Accounts payable - related party | (35,086) | 59 | ||||||
Inventories | 80,969 | 206,540 | 78,674 | |||||
Prepaid taxes | 448,054 | 4,185 | 184,985 | |||||
Prepayments and other assets | (15,120) | 125,422 | 229,638 | 352,577 | 241,372 | |||
Prepayments and deposits – related party | (2,780) | |||||||
Accounts payable | (2,802) | 2,778 | (2,804) | 2,778 | ||||
Customer deposits | (60,618) | (712,749) | (1,421,886) | (217,743) | ||||
Operating lease liabilities | (74,399) | (32,253) | (105,009) | |||||
Other payables and accrued liabilities | (129,355) | 51,093 | 44,867 | 336,709 | 68,557 | |||
Income taxes payable | 36,877 | (6,965) | ||||||
Net cash (used in) provided by operating activities | (134,748) | (780,664) | (113,945) | (557,951) | (704,418) | |||
Cash flows from investing activities | ||||||||
Proceeds from sale of investment in marketable securities | 121 | |||||||
Purchases of equipment | (1,220) | (4,734) | ||||||
Purchase of intangible assets | (178) | |||||||
Cash acquired through acquisition of Agape superior Living Sdn Bhd | 1,210,818 | 1,210,818 | ||||||
Proceeds from sale of non-marketable securities to a related party | 70,173 | 70,173 | 70,173 | |||||
Investment in non-marketable securities | (1,500) | |||||||
Net cash used in investing activities | (1,220) | 1,280,991 | 1,276,200 | (1,500) | ||||
Cash flows from financing activities | ||||||||
Deferred offering costs | (14,160) | (75,738) | (249,525) | |||||
Repayments from related parties | 227,434 | 745 | ||||||
(Loans to) repayments from related parties | (2,428) | 216,575 | (5,318) | |||||
Net cash provided by (used in) financing activities | (16,588) | 140,837 | (22,091) | (4,573) | ||||
Effect of exchange rate on cash | (64,244) | 42,043 | 815 | 76,985 | 2,031 | |||
Net change in cash | (216,800) | 683,207 | (113,130) | 773,143 | (708,460) | |||
Cash, beginning of year | 2,744,457 | 3,452,917 | 3,517,600 | 2,744,457 | 2,857,587 | 2,744,457 | 3,452,917 | |
Cash, end of year | 3,300,800 | 3,427,664 | 2,744,457 | 3,517,600 | 2,744,457 | 3,452,917 | ||
Supplemental cash flows information | ||||||||
Income taxes paid | 249,583 | 288,929 | ||||||
Interest paid | ||||||||
Non-cash transactions of investing and financing activities | ||||||||
Changes in right-of-use assets and lease liabilities due to lease modifications | 3,286 | |||||||
Initial recognition of right-of-use assets and lease liabilities | 461,522 | 483,343 | ||||||
Sale of non-marketable securities to a related party in exchange for ASL | 656,495 | |||||||
Issuance of common stock in exchange for acquisition payment of ASL | 1,057,508 | |||||||
Unpaid balance due to a related party in connection with acquisition payment of ASL | 90,043 | |||||||
Unpaid accrued liabilities on deferred offering costs | 127,500 | |||||||
Amount transferred from investment in investee company to non-marketable securities | 724,619 | |||||||
Sale of non-marketable securities to a related party in exchange for acquisition payment of Agape Superior Living Sdn Bhd | 656,495 | |||||||
Issuance of common stock in exchange for acquisition of Agape Superior Living Sdn Bhd | 1,147,551 | |||||||
Agape Superior Living S D N B H D [Member] | ||||||||
Cash flows from operating activities | ||||||||
Net (loss) income | 197,576 | (252,125) | (1,059,494) | 1,981,911 | ||||
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities | ||||||||
Depreciation | 19,820 | 21,257 | 74,702 | 28,715 | ||||
Amortization | 494 | 1,621 | 6,077 | 5,709 | ||||
Deferred taxes (benefit) provision | 50,833 | (57,232) | (250,822) | 16,814 | ||||
Loss on disposal of equipment | (739) | |||||||
Deferred tax expense | 50,833 | (57,232) | (250,822) | 16,814 | ||||
Change in operating assets and liabilities | ||||||||
Accounts receivable | 356 | (28,520) | ||||||
Other receivables | (849) | 14,116 | (49,702) | |||||
Accounts payable - related party | 187,418 | 514,524 | (525,666) | |||||
Inventories | (97,687) | (243,106) | (409,086) | 988,613 | ||||
Prepaid taxes | (93,672) | (421,370) | (980,082) | (652,413) | ||||
Prepayments and other assets | 143,509 | (49,875) | (11,514) | (332,774) | ||||
Prepayment - related party | 217,163 | 214,100 | (219,991) | |||||
Customer deposits | 60,990 | (352,708) | 245,909 | 1,052,787 | ||||
Other payables and accrued liabilities | (30,505) | (93,034) | (715,974) | 393,937 | ||||
Commission payables | (1,039,008) | |||||||
Other payables - related parties | (11,757) | |||||||
Net cash (used in) provided by operating activities | 238,369 | (1,070,511) | (2,357,544) | 1,648,932 | ||||
Cash flows from investing activities | ||||||||
Purchases of equipment | (760) | (6,502) | (455,786) | |||||
Purchase of intangible assets | (2,582) | (6,698) | ||||||
Net cash used in investing activities | (760) | (9,084) | (462,484) | |||||
Cash flows from financing activities | ||||||||
Dividend distributions | (3,292,466) | |||||||
Loans from related parties | 485,526 | 1,961,091 | 807 | |||||
(Loans to) repayments from related parties | 1,773 | 37,244 | (116,227) | 652,919 | ||||
Net cash provided by (used in) financing activities | 1,773 | 522,770 | 1,844,864 | (2,638,740) | ||||
Effect of exchange rate on cash | (64,478) | 18,512 | 8,068 | (13,003) | ||||
Net change in cash | 175,664 | (529,989) | (513,696) | (1,465,295) | ||||
Cash, beginning of year | 1,030,829 | 1,544,525 | $ 1,030,829 | $ 1,030,829 | 1,544,525 | 3,009,820 | ||
Cash, end of year | 1,206,493 | 1,014,536 | $ 1,030,829 | 1,030,829 | 1,544,525 | |||
Supplemental cash flows information | ||||||||
Income taxes paid | 93,672 | 123,892 | 995,494 | 1,047,473 | ||||
Interest paid | ||||||||
Non-cash transactions of investing and financing activities | ||||||||
Capital contributions from a shareholder loan for additional shares issued | $ 1,977,271 |
ORGANIZATION AND BUSINESS BACKG
ORGANIZATION AND BUSINESS BACKGROUND | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 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 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 no 99.99 Agape Superior Living Sdn. Bhd. (“ASL”) is a limited company incorporated on August 8, 2003, under the laws of Malaysia. On September 11, 2020, the Company incorporated Wellness ATP International Holdings Sdn, Bhd. (“WATP”), a wholly owned subsidiary under the laws of Malaysia, to pursue the business of promoting wellness and wellbeing lifestyle of the community by providing services that includes online editorials, programs, events and campaigns on how to achieve positive wellness and lifestyle. Upon the establishment of WATP, WATP starts collaborating with ASL to carry out its Wellness programs. The Company and its subsidiaries are principally engaged in the Health and Wellness Industry. The principal activity of the Company is to supply high-quality health and wellness products, including supplements to assist in cell metabolism, detoxification, blood circulation, anti-aging and products designed to improve the overall health system of the human body and various wellness programs. The accompanying unaudited condensed consolidated financial statements reflect the activities of the Company, Agape ATP Corporation (“AATP LB”), Agape ATP International Holding Limited (“AATP HK”), Wellness ATP International Holdings Sdn, Bhd. (“Wellness ATP”), Agape Superior Living Sdn. Bhd. (“ASL”) and its variable interest entity (“VIE”), Agape S.E.A. Sdn. Bhd. (“SEA”) (See Note 3). Details of the Company’s subsidiaries: SCHEDULE OF SUBSIDIARIES AND ASSOCIATES 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$1 each Wholesaling of health and wellness products; and health solution advisory services 100 % 3. Agape Superior Living Sdn. Bhd. Malaysia, 9,590,598 shares of ordinary share of RM1 each Health and wellness products and health solution advisory services via network marketing 99.99 % 4. Agape S.E.A. Sdn. Bhd. Malaysia, 2 shares of ordinary share of RM1 each VIE of Agape Superior Living Sdn. Bhd. VIE 5. Wellness ATP International Holdings Sdn, Bhd Malaysia, 100 shares of ordinary share of RM1 each The promotion of wellness and wellbeing lifestyle of the community by providing services that includes online editorials, programs, events and campaigns 100 % AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) Business Overview Agape ATP Corporation is a company that provides health and wellness products and health solution advisory services to our clients. The Company primarily focus its efforts on attracting customers in Malaysia. Its 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. In order to strengthen the Company’s supply chain, on May 8, 2020, the Company has successfully acquired approximately 99.99 The Company deems creating public awareness on wellness and wellbeing lifestyle as essential to enhance the provision of its health solution advisory services; and therefore, incorporated WATP. Upon its establishment, WATP started collaborating with ASL to carry out various wellness programs. The Company offers three series of programs which consist of different services and products: ATP Zeta Health Program, ÉNERGÉTIQUE and BEAUNIQUE. The ATP Zeta Health Program is a health program designed to promote health and general wellbeing designed to prevent health diseases caused by polluted environments, unhealthy dietary intake and unhealthy lifestyles. The program aims to promote improved health and longevity through a combination of modern health supplements, proper nutrition and advice from skilled dieticians as well as trained members and distributors. The ÉNERGÉTIQUE series aims to provide a total dermal solution for a healthy skin beginning from the cellular level. The series is comprised of the Energy Mask series, Hyaluronic Acid Serum and Mousse Facial Cleanser. The BEAUNIQUE product series focuses on the research of our diet’s impact on modifying gene expressions in order to address genetic variations and deliver a nutrigenomic solution for every individual. | 1. ORGANIZATION AND BUSINESS BACKGROUND Agape ATP Corporation, a Nevada corporation (“the Company” or “AATP US”) 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% 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 99.99% Agape Superior Living Sdn. Bhd. (“ASL”) is a limited company incorporated on August 8, 2003, under the laws of Malaysia. On September 11, 2020, the Company incorporated Wellness ATP International Holdings Sdn, Bhd., a wholly owned subsidiary under the laws of Malaysia, to pursue the business of promoting wellness and wellbeing lifestyle of the community by providing services that includes online editorials, programs, events and campaigns on how to achieve positive wellness and lifestyle. Upon the establishment of WATP, WATP starts collaborating with ASL to carry out its Wellness programs. The Company and its subsidiaries are principally engaged in the Health and Wellness Industry. The principal activity of the Company and its subsidiaries is to supply high-quality health and wellness products, including supplements to assist in cell metabolism, detoxification, blood circulation, anti-aging and products designed to improve the overall health system of the human body and various wellness programs. The accompanying consolidated financial statements reflect the activities of the Company, Agape ATP Corporation (“AATP LB”), Agape ATP International Holding Limited (“AATP HK”), Wellness ATP International Holdings Sdn, Bhd. (“WATP”), ASL and its variable interest entity (“VIE”), Agape S.E.A. Sdn. Bhd. (“SEA”) (See Note 3). Details of the Company’s subsidiaries: SCHEDULE OF SUBSIDIARIES AND ASSOCIATES 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$1 each Wholesaling of health and wellness products; and health solution advisory services 100% 3. Agape Superior Living Sdn. Bhd. Malaysia, 9,590,598 shares of ordinary share of RM1 each Health and wellness products and health solution advisory services via network marketing 99.99% 4. Agape S.E.A. Sdn. Bhd. Malaysia, 2 shares of ordinary share of RM1 each VIE of Agape Superior Living Sdn. Bhd. VIE 5. Wellness ATP International Holdings Sdn, Bhd Malaysia, 100 shares of ordinary share of RM1 each The promotion of wellness and wellbeing lifestyle of the community by providing services that includes online editorials, programs, events and campaigns 100% AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 1. ORGANIZATION AND BUSINESS BACKGROUND (CONT’D) Business Overview Agape ATP Corporation is a company that provides health and wellness products and health solution advisory services to our clients. The Company primarily focus its efforts on attracting customers in Malaysia. Its 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. In order to strengthen the Company’s supply chain, on May 8, 2020, the Company has successfully acquired approximately 99.99% of ASL by issuing 176,547 common shares for a total value of $ 1,147,551 and offset a loan receivable of $ 656,495 1,804,046 with the goal of securing an established network marketing sales channel that has been established in Malaysia for the past 15 years. ASL has been offering the Company’s ATP Zeta Health Program as part of its product lineup. As such, the acquisition creates synergy in the Company’s operation by boosting the Company’s retail and marketing capabilities. The newly acquired subsidiary allows the Company to fulfill its mission of “helping people to create health and wealth” by providing a financially rewarding business opportunity to distributors and quality products to distributors and customers who seek a healthy lifestyle. The Company deems creating public awareness on wellness and wellbeing lifestyle as essential to enhance the provision of its health solution advisory services; and therefore, incorporated WATP. Upon its establishment, WATP started collaborating with ASL to carry out various wellness programs. The Company offers three series of programs which consist of different services and products: ATP Zeta Health Program, ÉNERGÉTIQUE and BEAUNIQUE. The ATP Zeta Health Program is a health program designed to promote health and general wellbeing designed to prevent health diseases caused by polluted environments, unhealthy dietary intake and unhealthy lifestyles. The program aims to promote improved health and longevity through a combination of modern health supplements, proper nutrition and advice from skilled dieticians as well as trained members and distributors. The ÉNERGÉTIQUE series aims to provide a total dermal solution for a healthy skin beginning from the cellular level. The series is comprised of the Energy Mask series, Hyaluronic Acid Serum and Mousse Facial Cleanser. The BEAUNIQUE product series focuses on the research of our diet’s impact on modifying gene expressions in order to address genetic variations and deliver a nutrigenomic solution for every individual. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), and include all normal and recurring adjustments that management of the Company considers necessary for a fair presentation of its financial position and operation results. Interim results are not necessarily indicative of results to be expected for any other interim period or for the full year. The information included in this Form 10-Q should be read in conjunction with information included in the Company’s annual report on Form 10-K for the period ended December 31, 2020, filed with the Securities and Exchange Commission on March 31, 2021. AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Principles of consolidation The unaudited condensed consolidated financial statements include the financial statements of the Company, its subsidiaries and its VIE over which the Company exercises control and, where applicable, entities for which the Company has a controlling financial interest or is the primary beneficiary. All transactions and balances among the Company, its subsidiaries and its VIE 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. A VIE is an entity that has either a total equity investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support, or whose equity investors lack the characteristics of a controlling financial interest, such as through voting rights, right to receive the expected residual returns of the entity or obligation to absorb the expected losses of the entity. The variable interest holder, if any, that has a controlling financial interest in a VIE is deemed to be the primary beneficiary and must consolidate the VIE. Use of estimates The preparation of unaudited condensed 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 unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s unaudited condensed consolidated financial statements include allowance for doubtful accounts, allowance for inventories obsolescence, useful lives of property and equipment, useful lives of intangible assets, impairment of long-lived assets, allowance for deferred tax assets, operating right-of-use assets, operating lease liabilities 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 Accounts receivable are recorded at the invoiced amount less an allowance for any uncollectible accounts and do not bear interest, which are due on credit term. Accounts receivable also include money due from a third-party e-commerce platform acting as a collection agent for the Company on the sales through their platform. 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 June 30, 2021 and December 31, 2020, no AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Inventories Inventories consist of finished goods and are stated at the lower of cost or net realizable value using the first-in first-out method. Management reviews inventory on hand for estimated obsolescence or unmarketable items, as compared to future demand requirements and the shelf life of the various products. Based on the review, the Company records inventory write-downs, when necessary, when costs exceed expected net realizable value. For the three months ended June 30, 2021 and 2020, the Company didn’t recognize any inventory write-downs. For the six months ended June 30, 2021 and 2020, the Company recognized inventory write-downs of $ 36,636 0 Prepaid taxes Prepaid taxes include (i) prepaid income taxes that will either be refundable or utilized to offset future income tax; and (ii) goods and service tax (“GST”) to be refundable. Prepayments and deposits, net Prepayments and deposits are mainly 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. Property and equipment, net Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets with no residual value. The estimated useful lives are as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT Useful Life Computer and office equipment 5 7 Furniture & fixtures 6 7 Leasehold improvements Lease Term Vehicle 5 The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the unaudited condensed consolidated statements of income and comprehensive income. Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives. AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Intangible assets, net Intangible assets, net, are stated at cost, less accumulated amortization. Amortization expense is recognized on the straight-line basis over the estimated useful lives of the assets as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF INTANGIBLE ASSETS, NET Classification Useful Life Computer software 5 Impairment for long-lived assets Long-lived assets, including property and equipment, and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. As of June 30, 2021 and December 31, 2020, no Deferred offering costs Deferred offering costs represents costs associated with the Company’s current offering which will be netted against the proceeds from the Company’s current offering. Investment in marketable equity securities The Company follows the provisions of ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Investment in non-marketable equity securities The Company follows the provisions of 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. Customer deposits Customer deposits represent amounts advanced by customers on product orders and discounted value of unapplied coupons. Customer deposits are reduced when the related sale is recognized in accordance with the Company’s revenue recognition policy. Revenue recognition 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. AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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. Sales of Health and Wellness products - Performance obligations satisfied at a point in time 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. The revenue is recorded net of estimated discounts and return allowances. Products are given 60 days for returns or exchanges from the date of purchase. Historically, there were insignificant sales returns. The Company also sells coupons to its customers for cash at a discounted price of the value of the coupons. Customers can apply the value of the coupons for a reduction in the transaction price paid by the customer are recorded as a reduction of sales. The cash proceeds resulted from the sale of coupons are recognized as customer deposits until the coupons to be applied as a reduction of the health and wellness products transaction price upon such sales transactions occurred. The Company’s coupons have a validity period of six months. If the Company’s customers did not utilize the coupons after six months, the Company would recognize the forfeiture of the originated sales value of the coupons as net revenues. For the three months ended June 30, 2021 and 2020, the Company recognized $ 4,115 61,368 11,226 61,368 As of June 30, 2021, the Company had contracts for the sales of health and wellness products amounting to $ 68,550 AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Disaggregated information of revenues by products are as follows: SCHEDULE OF DIS-AGGREGATED INFORMATION OF REVENUES For the three months ended For the six months ended June 30, June 30, 2021 2020 2021 2020 Survivor Select $ 24,415 $ 35,994 $ 37,641 $ 35,994 Energized Mineral Concentrate 8,291 22,606 52,183 22,606 Ionized Cal-Mag 18,485 611,160 40,298 611,160 Omega Blend 89,066 162,543 185,361 162,543 Beta Maxx 55,943 11,434 89,800 11,434 Vege-Fruit Fiber - 6,106 - 6,106 Iron 8,431 - 16,715 - Young Formula 14,458 349,738 25,901 349,738 Organic Youth Care Cleansing Bar 2,990 28,805 2,990 28,805 Mitogize 70,148 4,711 106,843 4,711 Lipomask 4,279 8,420 8,401 8,420 Hyaluronic Acid Serum 1,362 55,721 3,353 55,721 Mousse Facial Cleanser 3,042 3,127 7,660 3,127 Trim+ 2,223 223,497 22,674 223,497 Total revenues $ 303,133 $ 1,523,862 $ 599,820 $ 1,523,862 Sales of Health and Wellness services - Performance obligations satisfied at a point in time The Company carries out its Wellness program, where the Company’s products are bundled with health screening test and a health camp program. The health screening test and the health camp programs are considered as separate performance obligations. The promises to deliver the health screening test report and the attendance at the health camp are separately identifiable, which are evidenced by the fact that the Company provides separate services of delivering the health screening test report and allowing admission of the customers to attend the health camp. The Company derives its revenues from sales contracts with its customers with revenues being recognized when the test reports are completed and delivered to its customers during the consultation section in person. The Company also separately derives its revenues from sales contracts with its customers with revenues being recognized when the health camp program was completed in the final day of the health camp. For the three months ended June 30, 2021 and 2020, revenues from health and wellness services were $ 653 0 5,746 0 AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Cost of revenue Cost of revenue includes freight-in, the purchase cost of manufactured goods for sale to customers, and inventory write-downs. Cost of revenue amounted to $ 35,623 471,554 113,214 36,636 471,554 Shipping and handling Shipping and handling charges amounted to $ 2,990 2,555 5,272 2,555 Advertising costs Advertising costs amounted to $ 8,721 2,882 16,658 2,882 Commission expenses Commission expenses are the Company’s most significant expenses. As with all companies in the network marketing industry, the Company’s sales channel is external to the Company. The Company’s “external sales force” is stratified into two levels based on priority recruitment. First, there are sales distributors. Second, all members recruited by a sales distributor, directly or indirectly, are referred to as “sales network members”. The Company pays commission to every sales distributor based on purchases made by its sales network members which includes the independent direct sales members. Top performing distributors with their own physical stores may also become stockists of the Company, whereby they enjoy benefits such as maintaining a certain amount of the Company’s inventory on their store premises. The stockists shall account to the Company for all products sales from their store premises as monitored through the Company’s centralized stock tracking system. The Company pays a separate commission to stockists based on revenue generated from the stockists’ physical stores. Commission expenses amounted to $ 92,774 382,498 181,213 382,498 Defined contribution plan The full-time employees of the Company are entitled to the government mandated defined contribution plan. The Company is required to accrue and pay for these benefits based on certain percentages of the employees’ respective salaries, subject to certain ceilings, in accordance with the relevant government regulations, and make cash contributions to the government mandated defined contribution plan. Total expenses for the plans were $ 27,067 23,710 53,034 23,710 AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The related contribution plans include: - Social Security Organization (“SOSCO”) – 1.75 4,000 - Employees Provident Fund (“EPF”) – 12 - Employment Insurance System (“EIS”) – 0.2 - Human Resource Development Fund (“HRDF”) – 1 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% 395 No The Company conducts much of its business activities in Hong Kong and Malaysia and is subject to tax in each of their jurisdictions. 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. AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Non-controlling interest Non-controlling interest mainly consists of approximately 0.01% (3 ordinary shares out of 9,590,599 shares) of the equity interests of ASL held by three individuals. 0 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 ordinary share outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of the potential ordinary 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 ordinary 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. For the three and six months ended June 30, 2021 and 2020, there were no 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 unaudited condensed consolidated statements of operations and comprehensive Income (Loss). 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$”) albeit its functional currency being the primary currency of the economic environment in which the entity operates, which is the Malaysian Ringgit (“MYR” or “RM”). The Company’s subsidiary in Hong Kong maintains its books and record in Hong Kong Dollars (“HK$”), similar to its functional currency. The Company’s subsidiary and VIE in Malaysia conducts its businesses and maintains its books and record in the local currency, Malaysian Ringgit (“MYR” or “RM”), as its functional currency. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “ Translation of Financial Statement” AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Translation of foreign currencies into US$1 have been made at the following exchange rates for the respective periods: SCHEDULE OF FOREIGN CURRENCIES TRANSLATION EXCHANGE RATES As of June 30, 2021 December 31, 2020 Period-end MYR : US$1 exchange rate 4.15 4.02 Period-end HKD : US$1 exchange rate 7.77 7.75 For the three months ended For the six months ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Period-average MYR : US$1 exchange rate 4.13 4.32 4.10 4.25 Period-average HKD : US$1 exchange rate 7.77 7.75 7.76 7.76 Related parties Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence. Fair value of financial instruments The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company. The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. Financial instruments included in current assets and current liabilities are reported in the unaudited condensed consolidated balance sheets at face value or cost, which approximate fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest. AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Leases Some of the Company’s leases include one or more options to renew, which is typically at the Company’s sole discretion. The Company regularly evaluates the renewal options, and, when it is reasonably certain of exercise, it will include the renewal period in its lease term. New lease modifications result in re-measurement of the right of use (“ROU”) assets and lease liabilities. Operating ROU assets and lease liabilities are recognized at the commencement date, based on the present value of lease payments over the lease term. Since the implicit rate for the Company’s leases is not readily determinable, the Company use its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow, on a collateralized basis, an amount equal to the lease payments, in a similar economic environment and over a similar term. Lease terms used to calculate the present value of lease payments generally do not include any options to extend, renew, or terminate the lease, as the Company does not have reasonable certainty at lease inception that these options will be exercised. The Company generally considers the economic life of its operating lease ROU assets to be comparable to the useful life of similar owned assets. The Company has elected the short-term lease exception, therefore operating lease ROU assets and liabilities do not include leases with a lease term of twelve months or less. Its leases generally do not provide a residual guarantee. The operating lease ROU asset also excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease term. The Company reviews the impairment of its ROU assets consistent with the approach applied for its other long-lived assets. The Company reviews the recoverability of its long-lived assets when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on its ability to recover the carrying value of the asset from the expected undiscounted future pre-tax cash flows of the related operations. The Company has elected to include the carrying amount of operating lease liabilities in any tested asset group and includes the associated operating lease payments in the undiscounted future pre-tax cash flows. 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 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 | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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”), and include all normal and recurring adjustments that management of the Company considers necessary for a fair presentation of its financial position and operation results. AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) Change of year end On December 31, 2019, the Company changed its fiscal year end from June 30 to December 31. The consolidated financial statements consist of the unaudited financial data for the year ended December 31, 2019, which was derived from the six months audited financial statement ended December 31, 2019 and the interim financial statements for the six months ended June 30, 2019. Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries and its VIE over which the Company exercises control and, where applicable, entities for which the Company has a controlling financial interest or is the primary beneficiary. All transactions and balances among the Company, its subsidiaries and its VIE 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. A VIE is an entity that has either a total equity investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support, or whose equity investors lack the characteristics of a controlling financial interest, such as through voting rights, right to receive the expected residual returns of the entity or obligation to absorb the expected losses of the entity. The variable interest holder, if any, that has a controlling financial interest in a VIE is deemed to be the primary beneficiary and must consolidate the VIE. 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 inventories obsolescence, useful lives of property and equipment, useful lives of intangible assets, impairment of long-lived assets, allowance for deferred tax assets, operating right-of-use assets, operating lease liabilities 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 and accounts receivable – related party Accounts receivable and 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 credit term. Accounts receivable also include money due from a third-party e-commerce platform acting as a collection agent for the Company on the sales through their platform. 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 December 31, 2020, and 2019, no AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) Inventories Inventories consist of finished goods and are stated at the lower of cost or net realizable value using the first-in first-out method. Management reviews inventory on hand for estimated obsolescence or unmarketable items, as compared to future demand requirements and the shelf life of the various products. Based on the review, the Company records inventory write-downs, when necessary, when costs exceed expected net realizable value. As of December 31, 2020, and 2019, there are no Prepaid taxes Prepaid taxes include (i) prepaid income taxes that will either be refundable or utilized to offset future income taxes; and (ii) goods and service tax (“GST”) that is refundable. Prepayments and deposits Prepayments and deposits are mainly 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. As of December 31, 2020, and 2019, there is no Property and equipment, net Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets with no residual value. The estimated useful lives are as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT Useful Life Computer and office equipment 5 7 Furniture & fixtures 6 7 Leasehold improvements Lease Term Vehicle 5 The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the consolidated statements of income and comprehensive income. Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives. AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) Intangible assets, net Intangible assets, net, are stated at cost, less accumulated amortization. Amortization expense is recognized on the straight-line basis over the estimated useful lives of the assets as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF INTANGIBLE ASSETS, NET Classification Useful Life Computer software 5 Impairment for long-lived assets Long-lived assets, including property and equipment, and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. As of December 31, 2020 and 2019, no Deferred offering costs Deferred offering costs represents costs associated with the Company’s current offering which will be netted against the proceeds from the Company’s current offering. 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. AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) 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. Customer deposits Customer deposits represent amounts advanced by customers on product orders and discounted value of unapplied coupons. Customer deposits are reduced when the related sale is recognized in accordance with the Company’s revenue recognition policy. 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. AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) 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 substantial 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. Products are given 60 days for returns or exchanges from the date of purchase. Historically, there were insignificant sales returns. The Company also sells coupons to its customers for cash at a discounted price of the value of the coupons. Customers can apply the value of the coupons for a reduction in the transaction price paid by the customer are recorded as a reduction of sales. The cash proceeds resulted from the sale of coupons are recognized as customer deposits until the coupons to be applied as a reduction of the health and wellness products transaction price upon such sales transactions occurred. The Company’s coupons have a validity period of six months. If the Company’s customers did not utilize the coupons after six months, the Company would recognize the forfeiture of the originated sales value of the coupons as net revenues. For the years ended December 31, 2020 and 2019, the Company recognized $ 170,431 and $ 0 (unaudited) as forfeited coupon income. The Company did not earn any forfeited coupon income for the six months ended December 31, 2019. As of December 31, 2020, the Company had contracts for the sales of health and wellness products amounting to $ 116,541 AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) Disaggregated information of revenues by products are as follows: SCHEDULE OF DIS-AGGREGATED INFORMATION OF REVENUES For the years ended For the six months ended December 31, December 31, 2020 2019 2019 (Unaudited) Survivor Select $ 149,897 $ - $ - Energized Mineral Concentrate 81,481 238,687 100,270 Ionized Cal-Mag 908,964 55,718 - Omega Blend 495,567 137,752 68,927 BetaMaxx 156,550 191,246 67,789 Vege Fruit Fiber 1,755 - - Iron 133,389 - - Young Formula 653,631 117,453 - Organic Youth Care Cleansing Bar 43,127 34,917 17,206 Mitogize 162,801 - - No. 1 MED 46,713 140,733 - Energetique 253,396 174,808 175,170 Trim+ 365,350 198,817 - Total revenues $ 3,452,621 $ 1,290,131 $ 429,362 Sales of Health and Wellness services - Performance obligations satisfied at a point in time The Company carries out its Wellness program, where the Company’s products are bundled with health screening test and a health camp program. The health screening test and the health camp programs are considered as separate performance obligations. The promises to deliver the health screening test report and the attendance at the health camp are separately identifiable, which are evidenced by the fact that the Company provides separate services of delivering the health screening test report and allowing admission of the customers to attend the health camp. The Company derives its revenues from sales contracts with its customers with revenues being recognized when the test reports are completed and delivered to its customers. The Company also separately derives its revenues from sales contracts with its customers with revenues being recognized when the health camp program was completed in the final day of the health camp. For the year ended December 31, 2020, revenues from health and wellness services are immaterial to the Company’s consolidated statements of operations and comprehensive income (loss). The Company did not earn any revenues from health and wellness services for the year ended December 31, 2019 and for the six months ended December 31, 2019. Cost of revenue Cost of revenue includes freight-in and the purchase cost of manufactured goods for sale to customers. AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) Shipping and handling Shipping and handling charges amounted to $ 9,315 0 no Advertising costs Advertising costs amounted to $ 14,339 0 no Commission expenses Commission expenses are the Company’s most significant expenses. As with all companies in the network marketing industry, the Company’s sales channel is external to the Company. The Company’s “external sales force” is stratified into two levels based on priority recruitment. First, there are sales distributors. Second, all members recruited by a sales distributor, directly or indirectly, are referred to as “sales network members”. The Company pays commission to every sales distributor based on purchases made by its sales network members which includes the independent direct sales members. Top performing distributors with their own physical stores may also become stockists of the Company, whereby they enjoy benefits such as maintaining a certain amount of the Company’s inventory on their store premises. The stockists shall account to the Company for all products sales from their store premises as monitored through the Company’s centralized stock tracking system. The Company pays a separate commission to stockists based on revenue generated from the stockists’ physical stores. Commission expenses amounted to $ 830,659 0 no Defined contribution plan The full-time employees of the Company are entitled to the government mandated defined contribution plan. The Company is required to accrue and pay for these benefits based on certain percentages of the employees’ respective salaries, subject to certain ceilings, in accordance with the relevant government regulations, and make cash contributions to the government mandated defined contribution plan. Total expenses for the plans were $ 75,802 0 no The related contribution plans include: - Social Security Organization (“SOSCO”) – 1.75% 4,000 - Employees Provident Fund (“EPF”) – 12% - Employment Insurance System (“EIS”) – 0.2% 4,000 - Human Resource Development Fund (“HRDF”) – 1% AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) 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 taxes for the years ended December 31, 2020 and 2019. No penalties and interest incurred related to underpayment of income taxes for the six months ended December 31, 2019. The Company conducts much of its business activities in Hong Kong and Malaysia and is subject to tax in each of their jurisdictions. 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. Non-controlling interest Non-controlling interest mainly consists of approximately 0.01% (2 ordinary shares out of 9,590,598 shares) of the equity interests of ASL held by two individuals. 0 AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) 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 ordinary share outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of the potential ordinary 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 ordinary 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. For the years ended December 31, 2020 and 2019, there were no no 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 Consolidated Statements of Operations and Comprehensive Income (Loss). 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$”) albeit its functional currency being the primary currency of the economic environment in which the entity operates, which is the Malaysian Ringgit (“MYR” or “RM”). The Company’s subsidiary in Hong Kong maintains its books and record in Hong Kong Dollars (“HK$”), similar to its functional currency. The Company’s subsidiary and VIE in Malaysia conducts its businesses and maintains its books and record in the local currency, Malaysian Ringgit (“MYR” or “RM”), as 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: SCHEDULE OF FOREIGN CURRENCIES TRANSLATION EXCHANGE RATES As of December 31, 2020 December 31, 2019 Period-end MYR : US$1 exchange rate 4.02 4.09 Period-end HKD : US$1 exchange rate 7.75 7.79 AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) For the years ended For the six months ended December 31, December 31, 2020 2019 2019 Period-average MYR : US$1 exchange rate 4.20 4.14 4.16 Period-average HKD : US$1 exchange rate 7.76 7.84 7.83 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. Leases Effective July 1, 2019, the Company adopted ASU 2016-02, “Leases” (Topic 842), and elected the practical expedients that does not require the Company 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. For lease terms of twelve months or fewer, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. The Company also 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 July 1, 2019, as the Company did not have any existing leases with a lease term in excess of twelve months on July 1, 2019. AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) Operating lease right-of-use (“ROU”) assets and lease liabilities are recognized at the adoption date of July 1, 2019 or the commencement date, whichever is earlier, based on the present value of lease payments over the lease term. Since the implicit rate for the Company’s leases is not readily determinable, the Company use its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow, on a collateralized basis, an amount equal to the lease payments, in a similar economic environment and over a similar term. Lease terms used to calculate the present value of lease payments generally do not include any options to extend, renew, or terminate the lease, as the Company does not have reasonable certainty at lease inception that these options will be exercised. The Company generally considers the economic life of its operating lease ROU assets to be co | ||
Superior Living SDN. BHD. [Member] | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), and include all normal and recurring adjustments that management of the Company considers necessary for a fair presentation of its financial position and operation results. Interim results are not necessarily indicative of results to be expected for any other interim period or for the full year. Therefore, these statements should be read in conjunction with the Company’s audited financial statements as of and for the years ended December 31, 2019 and 2018. Principles of Consolidation The unaudited condensed consolidated financial statements include the financial statements of the Company and its VIE. All transactions and balances between the Company and its subsidiaries have been eliminated upon consolidation. Use of Estimates and Assumptions The preparation of unaudited condensed 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 unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s unaudited condensed consolidated financial statements include allowance for doubtful accounts, allowance for inventories obsolescence, useful lives of property and equipment, useful lives of intangible assets, impairment of long-lived assets, and allowance for deferred tax assets and uncertain tax position. Actual results could differ from these estimates. Fair Value Measurement 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. Foreign Currency Translation and Transaction The reporting currency of the Company is the U.S. dollar. The Company in Malaysia conducts its businesses in the local currency, Ringgit Malaysia (RM), as its functional currency. Assets and liabilities are translated at the unified exchange rate as quoted by the Federal Reserve at the end of the period. The statement of income accounts are translated at the average translation rates and the equity accounts are translated at historical rates. Translation adjustments resulting from this process are included in accumulated other comprehensive income (loss). Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. Translation adjustments included in accumulated other comprehensive (loss) income amounted to $ (25,534) 75,637 4.33 4.09 1.00 4.21 4.08 1.00 Cash Cash are carried at cost and represent cash on hand and deposits placed with banks or other financial institutions. Inventories Inventories consist of finished goods and are stated at the lower of cost or net realizable value using the first-in first-out method. When appropriate, impairment to inventories are recorded to write down the cost of inventories to their net realizable value. Prepaid Taxes Prepaid taxes include (i) prepaid income taxes that will either be refundable or utilized to offset future income tax; and (ii) goods and service tax (“GST”) to be refundable. Prepayments and Other Assets Prepayments and other assets are cash deposited or advanced to outside vendors and service providers for future inventory purchases and future services to be provided. This amount is refundable and bears no interest. For any prepayments determined by management that such advances will not be utilized, collected or refunded, the Company will recognize an allowance account to reserve such balances. Management reviews its advances to suppliers 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. As of March 31, 2020 and December 31, 2019, there is no Property and Equipment, Net Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets with no residual value. The estimated useful lives are as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT Useful Life Computer and office equipment 5 7 Furniture & fixtures 6 7 Leasehold improvements Lease Term Vehicle 5 The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the consolidated statements of income and comprehensive income. Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives. Intangible Assets, Net Intangible assets, net, are stated at cost, less accumulated amortization. Amortization expense is recognized on the straight-line basis over the estimated useful lives of the assets as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF INTANGIBLE ASSETS Classification Useful Life Computer software 5 Impairment for Long-Lived Assets Long-lived assets, including property and equipment, and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. As of March 31, 2020 and December 31, 2019, no Customer Deposits Customer deposits represent amounts advanced by customers on product orders and discounted value of unapplied coupons. Customer deposits are reduced when the related sale is recognized in accordance with the Company’s revenue recognition policy. Revenue Recognition The Company adopted Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers (ASC 606), on all periods presented. The Company recognizes revenue to depict the transfer of promised goods or services (that is, an asset) to customers in an amount that reflects the consideration to which the Company expects to receive in exchange for those goods or services. An asset is transferred when the customer obtains control of that asset. It also requires 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 Company uses 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 substantial collection. Sales of Health and wellness products - Performance obligations satisfied at a point in time 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. 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. Products are given 60 days for returns or exchanges from the date of purchase. Historically, there were insignificant sales returns. The Company also sells coupons to its customers for cash at a discounted price of the value of the coupons. Customers can apply the value of the coupons for a reduction in the transaction price paid by the customer are recorded as a reduction of sales. The cash proceeds resulted from the sale of coupons are recognized as customer deposits until the coupons to be applied as a reduction of the health and wellness products transaction price upon such sales transactions occurred. The Company’s coupons have a validity period of six months. If the Company’s customers did not utilized the coupons after six months, the Company would recognize the forfeiture of the originated sales value of the coupons as net revenues. For the three months ended March 31, 2020 and 2019, the Company recognized $ 25,836 0 As of March 31, 2020, the Company had contracts for the sales of health and wellness products amounting to $ 1,420,392 Disaggregated information of revenues by products are as follows: SCHEDULE OF DISAGGREGATED INFORMATION OF REVENUES For the Three Months Ended March 31, 2020 March 31, 2019 Survivor Select $ 150,120 $ 23,382 Energized Mineral Concentrate 133,529 111,899 Ionized Cal-Mag 39,353 13,912 Omega Blend 299,007 385,001 BetaMaxx 165,187 42,549 Vege Fruit Fiber 66,286 23,520 Iron 6,810 - Young Formula 30,093 213,300 Organic Youth Care Cleansing Bar 19,304 53,747 Mitogize 111,632 58,060 No. 1 MED 66,156 102,348 Energetique 139,604 - Trim+ 14,171 186,882 Total revenues $ 1,241,252 $ 1,214,600 Cost of Revenues Cost of revenue includes freight-in and the purchase cost of manufactured goods for sale to customers. Shipping and Handling Shipping and handling charges amounted to $ 931 6,276 Advertising Costs Advertising costs amounted to $ 23,740 49,232 Commission Expenses Commission expenses are the Company’s most significant expenses. As with all companies in the network marketing industry, the Company’s sales channel is external to the Company. The Company’s “external sales force” is stratified into two levels based on priority recruitment. First, there are sales distributors. Second, all members recruited by a sales distributor, directly or indirectly, are referred to as “sales network members”. The Company pays commission to every sales distributor based on purchases made by its sales network members which includes the independent direct sales members. Top performing distributors with their own physical stores may also become stockists of the Company, whereby they enjoy benefits such as maintaining a certain amount of the Company’s inventory on their store premises. The stockists shall account to the Company for all products sales from their store premises as monitored through the Company’s centralized stock tracking system. The Company pays a separate commission to stockists based on revenue generated from the stockists’ physical stores. Commission expenses amounted to $ 411,266 601,205 Defined Contribution Plan The full-time employees of the Company are entitled to the government mandated defined contribution plan. The Company is required to accrue and pay for these benefits based on certain percentages of the employees’ respective salaries, subject to certain ceilings, in accordance with the relevant government regulations, and make cash contributions to the government mandated defined contribution plan. Total expenses for the plans were $ 26,033 35,894 The related contribution plans include: - Social Security Organization (“SOSCO”) – 1.75% 4,000 - Employees Provident Fund (“EPF”) – 12% - Employment Insurance System (“EIS”) – 0.2% 4,000 - Human Resource Development Fund (“HRDF”) – 1% 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. 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 unaudited condensed 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 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 shareholders’ equity but are excluded from net income (loss). 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. Related Parties Parties, which can be a company 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. 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 ordinary share outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of the potential ordinary 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 ordinary 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. Recently Issued 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 February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), to increase the transparency and comparability about leases among entities. The new guidance requires lessees to recognize a lease liability and a corresponding lease asset for virtually all lease contracts. It also requires additional disclosures about leasing arrangements. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018, and requires a modified retrospective approach to adoption. Early adoption is permitted. In September 2017, the FASB issued ASU No. 2017-13, which to clarify effective dates that public business entities and other entities were required to adopt ASC Topic 842 for annual reporting. ASU No. 2017-13 also amended that all components of a leveraged lease be recalculated from inception of the lease based on the revised after tax cash flows arising from the change in the tax law, including revised tax rates. The difference between the amounts originally recorded and the recalculated amounts must be included in income of the year in which the tax law is enacted. In November 2019, the FASB issued ASU No. 2019-10, which to update the effective date of ASU No. 2016-02 for private companies, not-for-profit organizations and certain smaller reporting companies applying for credit losses, leases, and hedging standard. The new effective date for these companies is for fiscal years beginning after December 15, 2020. ASU 2016-02 is effective for the Company for annual and interim reporting periods beginning January 1, 2021 as the Company is qualified as a smaller reporting company. The Company is expected to record the operating lease right-of-use assets and lease liabilities upon adoption. 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 unaudited condensed 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 adoption of this ASU on January 1, 2020 did not have a material effect on the Company’s unaudited condensed 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. In November 2019, the FASB issued ASU No. 2019-10, which to update the effective date of ASU No. 2016-13 for private companies, not-for-profit organizations and certain smaller reporting companies applying for credit losses, leases, and hedging standard. The new effective date for these preparers is for fiscal years beginning after December 15, 2022. ASU 2019-05 is effective for the Company for annual and interim reporting periods beginning January 1, 2023 as the Company is qualified as a smaller reporting company. The Company is currently evaluating the impact ASU 2019-05 may have on its unaudited condensed 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 unaudited condensed consolidated financial statements. | 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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”) pursuant to the rules and regulations of the SEC. Principles of Consolidation The consolidated financial statements include the financial statements of the Company and its VIE. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. Use of Estimates and Assumptions 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 inventories obsolescence, useful lives of plant and equipment, impairment of long-lived assets, and allowance for deferred tax assets and uncertain tax position. Actual results could differ from these estimates. Fair Value Measurement 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. Foreign Currency Translation and Transaction The reporting currency of the Company is the U.S. dollar. The Company in Malaysia conducts its businesses in the local currency, Ringgit Malaysia (RM), as its functional currency. Assets and liabilities are translated at the unified exchange rate as quoted by the Federal Reserve at the end of the period. The statement of income accounts are translated at the average translation rates and the equity accounts are translated at historical rates. Translation adjustments resulting from this process are included in accumulated other comprehensive income (loss). Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. Translation adjustments included in accumulated other comprehensive income amounted to $ 75,637 81,108 4.09 4.13 1.00 The average translation rates applied to statement of income accounts for the years ended December 31, 2019 and 2018 were 4.14 RM and 4.03 RM to $1.00, respectively. Cash flows are also translated at average translation rates for the periods, therefore, amounts reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheet. Cash Cash are carried at cost and represent cash on hand and deposits placed with banks or other financial institutions. Inventories Inventories consist of finished goods and are stated at the lower of cost or net realizable value using the first-in first-out method. When appropriate, impairment to inventories are recorded to write down the cost of inventories to their net realizable value. Prepaid Taxes Prepaid taxes includes prepaid income taxes and goods and service tax (“GST”) to be refundable or utilized to offset future income tax or sales and service tax (“SST”) to be incurred. Prepayments and Other Assets Prepayments and other assets are cash deposited or advanced to outside vendors and service providers for future inventory purchases and future services to be provided. This amount is refundable and bears no interest. For any prepayments determined by management that such advances will not be utilized, collected or refunded, the Company will recognize an allowance account to reserve such balances. Management reviews its advances to suppliers 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. As of December 31, 2019 and 2018, there is no Property and Equipment, Net Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets with no residual value. The estimated useful lives are as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT Useful Life Computer and office equipment 5 7 Furniture & fixtures 6 7 Leasehold improvements Lease Term Vehicle 5 The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the consolidated statements of income and comprehensive income. Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives. Intangible Assets, Net Intangible assets, net, are stated at cost, less accumulated amortization. Amortization expense is recognized on the straight-line basis over the estimated useful lives of the assets as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF INTANGIBLE ASSETS Classification Useful Life Computer software 5 Impairment for Long-Lived Assets Long-lived assets, including property and equipment, and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. As of December 31, 2019 and 2018, no Customer Deposits Customer deposits represent amounts advanced by customers on product orders and discounted value of the unapplied coupons. Customer deposits are reduced when the related sale is recognized in accordance with the Company’s revenue recognition policy. Revenue Recognition The Company adopted Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers (ASC 606), on all periods presented. The Company recognizes revenue to depict the transfer of promised goods or services (that is, an asset) to customers in an amount that reflects the consideration to which the Company expects to receive in exchange for those goods or services. An asset is transferred when the customer obtains control of that asset. It also requires 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 Company uses 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. Sales of Health and wellness products - Performance obligations satisfied at a point in time 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. 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. Products are given 60 days for returns or exchanges from the date of purchase. Historically, there were insignificant sales returns. The Company also sells coupons to its customers for cash at a discounted price of the value of the coupons. Customers can apply the value of the coupons for a reduction in the transaction price paid by the customer are recorded as a reduction of sales. The cash proceeds resulted from the sale of coupons are recognized as customer deposits until the coupons to be applied as a reduction of the health and wellness products transaction price upon such sales transactions occurred. The Company’s coupons have a validity period of six months. If the Company’s customers did not utilized the coupons after six months, the Company would recognize the forfeiture of the originated sales value of the coupons as net revenues. For the years ended December 31, 2019 and 2018, the Company recognized $ 46,304 0 As of December 31, 2019, the Company had contracts for the sales of health and wellness products amounting to $ 1,484,614 Disaggregated information of revenues by products are as follows: SCHEDULE OF DISAGGREGATED INFORMATION OF REVENUES For the years ended December 31, 2019 December 31, 2018 Survivor Select $ 243,075 $ 2,520,204 Energized Mineral Concentrate 599,642 3,004,479 Ionized Cal-Mag 94,535 1,116,437 Omega Blend 723,443 1,666,296 BetaMaxx 217,025 2,490,573 Vege Fruit Fiber 167,566 751,073 Iron - 71,790 Young Formula 394,767 1,766,914 Organic Youth Care Cleansing Bar 237,530 87,025 Mitogize 254,622 375,724 No. 1 MED 440,145 543,247 Trim+ 767,009 - Total revenues $ 4,139,359 $ 14,393,762 Cost of Revenues Cost of revenue includes freight-in and the purchase cost of manufactured goods for sale to customers. Shipping and Handling Shipping and handling charges amounted to $ 13,801 8,304 Advertising Costs Advertising costs amounted to $ 267,543 26,110 Commission Expenses Commission expenses are the Company’s most significant expenses. As with all companies in the network marketing industry, the Company’s sales channel is external to the Company. The Company’s “external sales force” is stratified into two levels based on priority recruitment. First, there are sales distributors. Second, all members recruited by a sales distributor, directly or indirectly, are referred to as “sales network members”. The Company pays commission to every sales distributor based on purchases made by its sales network members which includes the independent direct sales members. The Company also pays commissions to “stockists” who act as sales agents. Stockists only entitle to a straight commission and no sales network members working under them. Commission expenses amounted to $ 1,611,172 7,045,419 Defined Contribution Plan The full-time employees of the Company are entitled to the government mandated defined contribution plan. The Company is required to accrue and pay for these benefits based on certain percentages of the employees’ respective salaries, subject to certain ceilings, in accordance with the relevant government regulations, and make cash contributions to the government mandated defined contribution plan. Total expenses for the plans were $ 129,669 92,022 The related contribution plans include: - Social Security Organization (“SOSCO”) – 1.75 4,000 - Employees Provident Fund (“EPF”) – 12 13 5,000 - Employment Insurance System (“EIS”) – 0.2 4,000 - Human Resource Development Fund (“HRDF”) – 1 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. Sales and Service Tax (“SST”) and Goods and Services Tax (“GST”) There was a change in tax regulations affecting sales tax of the Company during the reporting periods. The Goods and Services Tax (“GST”) was enforced from April 1, 2015 to June 1, 2018, where goods and services were subjected to a standard GST rate of 6%. The Malaysian tax authorities reverted to the Sales and Service Tax (“SST”) on September 1, 2018. The standard SST rates on products and services are 10% and 6%, respectively. 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 for the years ended December 31, 2019 and 2018. The tax returns filed in 2017 to 2019 are subject to examination by any applicable 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 shareholders’ 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. Related Parties Parties, which can be a company 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. 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 ordinary share outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of the potential ordinary 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 ordinary 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. Recently Issued 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 February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), to increase the transparency and comparability about leases among entities. The new guidance requires lessees to recognize a lease liability and a corresponding lease asset for virtually all lease contracts. It also requires additional disclosures about leasing arrangements. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018, and requires a modified retrospective approach to adoption. Early adoption is permitted. In September 2017, the FASB issued ASU No. 2017-13, which to clarify effective dates that public business entities and other entities were required to adopt ASC Topic 842 for annual reporting. ASU No. 2017-13 also amended that all components of a leveraged lease be recalculated from inception of the lease based on the revised after tax cash flows arising from the change in the tax law, including revised tax rates. The difference between the amounts originally recorded and the recalculated amounts must be included in income of the year in which the tax law is enacted. In November 2019, the FASB issued ASU No. 2019-10, which to update the effective date of ASU No. 2016-02 for private companies, not-for-profit organizations and certain smaller reporting companies applying for credit losses, leases, and hedging standard. The new effective date for these companies is for fiscal years beginning after December 15, 2020. ASU 2016-02 is effective for the Company for annual and interim reporting periods beginning January 1, 2021 as the Company is qualified as a smaller reporting company. The Company is expected to record the operating lease right-of-use assets and lease liabilities upon adoption. 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 adoption of this ASU on January 1, 2020 did not have a material effect on the Company’s 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. In November 2019, the FASB issued ASU No. 2019-10, which to update the effective date of ASU No. 2016-13 for private companies, not-for-profit organizations and certain smaller reporting companies applying for credit losses, leases, and hedging standard. The new effective date for these preparers is for fiscal years beginning after December 15, 2022. ASU 2019-05 is effective for the Company for annual and interim reporting periods beginning January 1, 2023 as the Company is qualified as a smaller reporting company. The Company is currently evaluating the impact ASU 2019-05 may 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. |
VARIABLE INTEREST ENTITY (_VIE_
VARIABLE INTEREST ENTITY (“VIE”) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
VARIABLE INTEREST ENTITY (“VIE”) | 3. VARIABLE INTEREST ENTITY (“VIE”) SEA is a trading company incorporated on March 4, 2004, under the laws of Malaysia. SEA provided majority of ASL’s purchases. Its equity at risk was insufficient to finance its activities and 100 a. The power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and b. The obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE . Accordingly, the accounts of SEA is consolidated in the accompanying unaudited condensed financial statements. AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 3. VARIABLE INTEREST ENTITY (“VIE”) (Continued) The carrying amount of the VIE’s assets and liabilities were as follows: SCHEDULE OF VARIABLE INTEREST ENTITY June 30, 2021 December 31, 2020 Current assets $ 28,508 $ 48,717 Other assets 7,985 - Current liabilities (51,028 ) (53,573 ) Net deficit $ (14,535 ) $ (4,856 ) June 30, 2021 December 31, 2020 Current assets: Cash and cash equivalents $ 23,526 $ 37,387 Prepaid taxes 4,982 11,330 Total current assets 28,508 48,717 Other asset – Deferred tax asset 7,985 - Total assets $ 36,493 $ 48,717 Current liabilities: Accounts payable – intercompany $ 50,048 $ 51,669 Other payables and accrued liabilities 980 1,904 Total current liabilities 51,028 53,573 Net deficit $ (14,535 ) $ (4,856 ) The summarized operating results of the VIE’s are as follows: 1 2 3 4 For the three months ended For the six months ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Operating revenues $ $ 129,492 $ - $ 129,492 Gross profit $ $ 1,373 $ - $ 1,373 Loss from operations $ (5,019 ) $ (3,749 ) $ (11,967 ) $ (3,749 ) Net income (loss) $ 1,912 $ (18,139 ) $ (9,949 ) $ (18,139 ) AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) | 3. VARIABLE INTEREST ENTITY (“VIE”) SEA is a trading company incorporated on March 4, 2004, under the laws of Malaysia. SEA provided all of ASL’s purchases. Its equity at risk was insufficient to finance its activities and 100% a. The power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and b. The obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE . Accordingly, the accounts of SEA is consolidated in the accompanying financial statements. The carrying amount of the VIE’s assets and liabilities were as follows: SCHEDULE OF VARIABLE INTEREST ENTITY December 31, 2020 Current assets $ 48,717 Current liabilities (53,573 ) Net deficit $ (4,856 ) December 31, 2020 Current asset: Cash and cash equivalents $ 37,387 Prepaid taxes 11,330 Total current assets $ 48,717 Current liabilities: Other payables and accrued liabilities $ 1,904 Other payables – intercompany 51,669 Total current liabilities $ 53,573 AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 3. VARIABLE INTEREST ENTITY (“VIE”) (CONT’D) The summarized operating results of the VIE’s are as follows: For the Year Ended December 31, 2020 Operating revenues $ 346,907 Gross profit $ 4,442 Loss from operations $ (10,752 ) Net loss $ (24,014 ) | ||
Superior Living SDN. BHD. [Member] | March 31, 2020 [Member] | ||||
VARIABLE INTEREST ENTITY (“VIE”) | 3 – VARIABLE INTEREST ENTITY (“VIE”) SEA is a trading company incorporated on March 4, 2004, under the laws of Malaysia. SEA provided all of the Company’s purchases. Its equity at risk was insufficient to finance its activities and 100% a. The power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and b. The obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE . Accordingly, the accounts of SEA is consolidated in the accompanying unaudited condensed financial statements. The carrying amount of the VIE’s assets and liabilities were as follows: SCHEDULE OF VARIABLE INTEREST ENTITY March 31, 2020 December 31, 2019 Current assets $ 514,203 $ 572,469 Current liabilities (495,419 ) (547,627 ) Net assets $ 18,784 $ 24,842 March 31, 2020 December 31, 2019 Current liabilities: Accounts payable $ 491,628 $ 520,786 Other payables and accrued liabilities 3,408 4,896 Other payables - related party 346 993 Customer deposits - 20,912 Taxes payable 37 40 Total current liabilities $ 495,419 $ 547,627 The summarized operating results of the VIE’s are as follows: For the Three Months Ended For the Three Months Ended Operating revenues $ 9,581 $ 448,401 Gross profit (loss) $ 190 $ (1,755 ) Loss from operations $ (4,770 ) $ (7,133 ) Net loss $ (4,803 ) $ (14,168 ) | |||
Superior Living SDN. BHD. [Member] | December 31, 2019 [Member] | ||||
VARIABLE INTEREST ENTITY (“VIE”) | 3 - VARIABLE INTEREST ENTITY (“VIE”) SEA is a trading company incorporated on March 4, 2004, under the laws of in Malaysia. SEA provided all of the Company’s purchases. Its equity at risk was insufficient to finance its activities and 100 a. The power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and b. The obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. Accordingly, the accounts of SEA are consolidated in the accompanying consolidated financial statements. The carrying amount of the VIE’s assets and liabilities were as follows: SCHEDULE OF VARIABLE INTEREST ENTITY December 31, 2019 December 31, 2018 Current assets $ 572,469 $ 243,766 Current liabilities (547,627 ) (216,187 ) Net assets $ 24,842 $ 27,579 December 31, 2019 December 31, 2018 Current liabilities: Accounts payable $ 520,786 $ - Other payables and accrued liabilities 4,896 978 Other payables - related party 993 984 Customer deposits 20,912 214,199 Taxes payable 40 26 Total current liabilities $ 547,627 $ 216,187 The summarized operating results of the VIE’s are as follows: For the Year Ended For the Year Ended Operating revenues $ 1,382,516 $ 883,216 Gross profit $ 47,800 $ 138,508 Income from operations $ 26,613 $ 119,849 Net income (loss) $ (2,956 ) $ 144,042 |
BUSINESS COMBINATION
BUSINESS COMBINATION | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Business Combination and Asset Acquisition [Abstract] | ||
BUSINESS COMBINATION | 4. BUSINESS COMBINATION On May 8, 2020, the Company entered into a Share Exchange Agreement (“SPA”) with Mr. How Kok Choong, CEO and director of the Company to acquire 9,590,596 no 99.99 1,804,046 656,495 176,547 0.0001 0.0469 1,147,551 6.50 176,547 The Company’s acquisition of ASL was accounted for as a business combination in accordance with ASC 805. The Company has allocated the purchase price of ASL based upon the carrying value of the identifiable assets acquired and liabilities assumed on April 1, 2020 as ASL was under the common control of Mr. How. The following table summarizes the carry value of the identifiable assets acquired and liabilities assumed on the acquisition date, which represents the net purchase price allocation on the date of the acquisition of ASL. SUMMARY OF ASSETS ACQUIRED AND LIABILITIES ASSUMED Carry Value ASSETS Current assets Cash $ 1,206,493 Other receivables 33,210 Other receivables - related parties 219,121 Inventories 616,880 Prepaid taxes 1,206,821 Prepayments and other assets 318,267 Total current assets 3,600,792 Other assets Property and equipment, net 325,648 Intangible assets, net 6,686 Deferred taxes asset, net 172,250 Total other assets 504,584 Total assets $ 4,105,376 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Accounts payable - related party $ 491,628 Customer deposits 1,600,606 Other payables and accrued liabilities 209,096 Total current liabilities 2,301,330 Total liabilities $ 2,301,330 Total net assets acquired $ 1,804,046 AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 4. BUSINESS COMBINATION (Continued) The following unaudited pro forma combined results of operations presents the Company’s financial results as if the acquisition of ASL had been completed on January 1, 2020. The unaudited pro forma results do not reflect operating efficiencies or potential cost savings which may result from the consolidation of operations. Accordingly, the unaudited pro forma financial information is not necessarily indicative of the results of operations that the Company would have recognized had it completed the transaction on January 1, 2020. Future results may vary significantly from the results in this pro forma information because of future events and transactions, as well as other factors. SCHEDULE OF PRO FORMA BUSINESS COMBINATION For the Six Months Ended June 30, 2020 Revenue $ 2,765,114 Cost of revenue (571,407 ) Gross profit 2,193,707 Total operating expenses (2,055,016 ) Income from operations 138,691 Other income, net 110,912 Income before income taxes 249,603 Provision for income taxes (184,900 ) Net income $ 64,703 Net income per common share - basic and diluted $ 0.00 Weighted average number of common shares outstanding - basic and diluted 376,452,047 | 4. BUSINESS COMBINATION On May 8, 2020, the Company entered into a Share Exchange Agreement (“SPA”) with Mr. How Kok Choong, CEO and director of the Company to acquire 9,590,596 no 99.99% 1,804,046 656,495 176,547 0.0001 0.0469% 1,147,551 6.50 176,547 The Company’s acquisition of ASL was accounted for as a business combination in accordance with ASC 805. The Company has allocated the purchase price of ASL based upon the carrying value of the identifiable assets acquired and liabilities assumed on April 1, 2020 as ASL was under the common control of Mr. How. The following table summarizes the carry value of the identifiable assets acquired and liabilities assumed on the acquisition date, which represents the net purchase price allocation on the date of the acquisition of ASL. SUMMARY OF ASSETS ACQUIRED AND LIABILITIES ASSUMED Carry Value ASSETS Current assets Cash $ 1,206,493 Other receivables 33,210 Other receivables - related parties 219,121 Inventories 616,880 Prepaid taxes 1,206,821 Prepayments and other assets 318,267 Total current assets 3,600,792 Other assets Property and equipment, net 325,648 Intangible assets, net 6,686 Deferred taxes asset, net 172,250 Total other assets 504,584 Total assets $ 4,105,376 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Accounts payable - related party $ 491,628 Customer deposits 1,600,606 Other payables and accrued liabilities 209,096 Total current liabilities 2,301,330 Total liabilities 2,301,330 Total net assets acquired 1,804,046 AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 4. BUSINESS COMBINATION (CONT’D) The following unaudited pro forma combined results of operations presents the Company’s financial results as if the acquisition of ASL had been completed on January 1, 2019. The unaudited pro forma results do not reflect operating efficiencies or potential cost savings which may result from the consolidation of operations. Accordingly, the unaudited pro forma financial information is not necessarily indicative of the results of operations that the Company would have recognized had we completed the transaction on January 1, 2019. Future results may vary significantly from the results in this pro forma information because of future events and transactions, as well as other factors. SCHEDULE OF PRO FORMA BUSINESS COMBINATION For the Year Ended For the Year Ended For the Six Months Ended December 31, 2020 December 31, 2019 December 31, 2019 Revenue $ 4,693,873 $ 4,160,820 $ 2,246,458 Cost of revenue (875,708 ) (789,409 ) (479,410 ) Gross profit 3,818,165 3,371,411 1,767,048 Total operating expenses (3,839,184 ) (5,081,917 ) (2,468,902 ) Income (loss) from operations (21,019 ) (1,710,506 ) (701,854 ) Other income (expense), net 267,633 (384,304 ) (146,649 ) Income (loss) before income taxes 246,614 (2,094,810 ) (848,503 ) Benefit of (provision for) income taxes (212,414 ) 319,189 117,009 Net income (loss) $ 34,200 $ (1,775,621 ) $ (731,494 ) Net income (loss) per common share - basic and diluted 0.00 0.00 0.00 Weighted average number of common shares outstanding - basic and diluted $ 376,452,047 $ 376,452,047 $ 376,452,047 5. CASH AND CASH EQUIVALENTS As of December 31, 2020, and 2019 the Company has $ 3,517,600 2,744,457 1,112,147 238,937 $ 2,391,182 and $ 2,505,520 2.95% 3.25% AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 6 Months Ended |
Jun. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
CASH AND CASH EQUIVALENTS | 5. CASH AND CASH EQUIVALENTS As of June 30, 2021 and December 31, 2020 the Company has $ 3,300,800 3,517,600 1,215,004 1,112,147 2,077,345 2,391,182 1.80 2.15 2.95 3.25 AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 6 Months Ended |
Jun. 30, 2021 | |
Credit Loss [Abstract] | |
ACCOUNTS RECEIVABLE | 6. ACCOUNTS RECEIVABLE SCHEDULE OF ACCOUNTS RECEIVABLES As of June 30, 2021 As of December 31, 2020 Accounts receivable $ - $ 172,757 Allowance for doubtful accounts - - Total $ - $ 172,757 |
INVENTORIES
INVENTORIES | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
INVENTORIES | 7. INVENTORIES Inventories consist of the following: SCHEDULE OF INVENTORIES As of June 30, 2021 As of December 31, 2020 Finished goods $ 490,275 $ 589,814 For the three months ended June 30, 2021 and 2020, the Company didn’t recognize any inventory write-down. For the six months ended June 30, 2021 and 2020, the Company recognized inventory write-down of $ 36,636 0 | 7. INVENTORIES Inventories consist of the following: SCHEDULE OF INVENTORIES As of December 31, 2020 As of December 31, 2019 Finished goods $ 589,814 $ - | ||
Superior Living SDN. BHD. [Member] | March 31, 2020 [Member] | ||||
INVENTORIES | 4 – INVENTORIES Inventories consist of the following: SCHEDULE OF INVENTORIES March 31, 2020 December 31, 2019 Finished goods $ 616,880 $ 552,901 | |||
Superior Living SDN. BHD. [Member] | December 31, 2019 [Member] | ||||
INVENTORIES | 4- INVENTORIES Inventories consist of the following: SCHEDULE OF INVENTORIES December 31, 2019 December 31, 2018 Finished goods $ 552,901 $ 137,553 |
PREPAYMENTS AND DEPOSITS
PREPAYMENTS AND DEPOSITS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Prepayments And Deposits | ||
PREPAYMENTS AND DEPOSITS | 8. PREPAYMENTS AND DEPOSITS SCHEDULE OF PREPAID EXPENSES AND DEPOSITS As of As of Receivables from sales distributors $ 32,820 $ 35,302 Deposits to suppliers 273,109 261,068 Subtotal 305,929 296,370 Less: Provision for doubtful accounts (121,622 ) - Total $ 184,307 $ 296,370 Movements of allowance for doubtful accounts are as follows: SCHEDULE OF CHANGES IN ALLOWANCE FOR DOUBTFUL ACCOUNTS For the Three Months Ended June 30, 2021 For the Six Months Ended June 30, 2021 For the Year End December, 31, 2020 Beginning balance $ - $ - $ - Addition 121,686 121,686 - Write off - - - Exchange rate effect (64 ) (64 ) - Ending balance $ 121,622 $ 121,622 $ - | 8. PREPAYMENTS AND DEPOSITS SCHEDULE OF PREPAID EXPENSES AND DEPOSITS As of As of Prepaid expenses $ - $ 2,641 Receivables from sales distributors 35,302 - Deposits to suppliers 261,068 266,552 Total $ 296,370 $ 269,193 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
PROPERTY AND EQUIPMENT, NET | 9. PROPERTY AND EQUIPMENT, NET Property and equipment, net consist of the following: SCHEDULE OF PROPERTY AND EQUIPMENT, NET As of June 30, 2021 As of December 31, 2020 Computer and office equipment $ 80,087 $ 81,437 Furniture & fixtures 122,984 126,966 Leasehold improvements 203,894 210,496 Vehicle 99,347 102,564 Subtotal 506,312 521,463 Less: accumulated depreciation (253,871 ) (223,154 ) Total $ 252,441 $ 298,309 Depreciation expense for the three months ended June 30, 2021 and 2020 amounted to $ 19,009 17,716 38,179 17,716 AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) | 9. PROPERTY AND EQUIPMENT, NET Property and equipment, net consist of the following: SCHEDULE OF PROPERTY AND EQUIPMENT, NET As of December 31, 2020 As of December 31, 2019 Computer and office equipment $ 81,437 $ - Furniture & fixtures 126,966 - Leasehold improvements 210,496 - Vehicle 102,564 - Subtotal 521,463 - Less: accumulated depreciation (223,154 ) - Total $ 298,309 $ - Depreciation expense for the years ended December 31, 2020 and 2019 amounted to $ 55,407 - no | ||
Superior Living SDN. BHD. [Member] | March 31, 2020 [Member] | ||||
PROPERTY AND EQUIPMENT, NET | 6 – PROPERTY AND EQUIPMENT, NET Property and equipment, net consist of the following: SCHEDULE OF PROPERTY AND EQUIPMENT. NET March 31, 2020 December 31, 2019 Computer equipment $ 70,895 $ 91,696 Office equipment, furniture & fixtures 117,691 143,938 Leasehold improvements 195,117 210,472 Vehicle 95,071 100,709 Subtotal 478,774 546,815 Less: accumulated depreciation (153,126 ) (182,211 ) Total $ 325,648 $ 364,604 Depreciation expense for the three months ended March 31, 2020 and 2019 amounted to $ 19,820 21,257 | |||
Superior Living SDN. BHD. [Member] | December 31, 2019 [Member] | ||||
PROPERTY AND EQUIPMENT, NET | 6 - PROPERTY AND EQUIPMENT, NET Property and equipment, net consist of the following: SCHEDULE OF PROPERTY AND EQUIPMENT December 31, 2019 December 31, 2018 Computer equipment $ 91,696 $ 83,890 Office equipment, furniture & fixtures 143,938 142,152 Leasehold improvements 210,472 209,414 Vehicle 100,709 99,778 Subtotal 546,815 532,234 Less: accumulated depreciation and amortization (182,211 ) (105,614 ) Total $ 364,604 $ 429,620 Depreciation expense for the years ended December 31, 2019 and 2018 amounted to $ 74,702 28,715 |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
INTANGIBLE ASSETS, NET | 10. INTANGIBLE ASSETS, NET Intangible assets, net, consist of the following: SCHEDULE OF INTANGIBLE ASSETS, NET As of June 30, 2021 As of December 31, 2020 Computer software $ 34,678 $ 35,801 Less: accumulated amortization (30,029 ) (29,975 ) Total $ 4,649 $ 5,826 Amortization expense for the three months ended June 30, 2021 and 2020 amounted to $ 496 482 1,006 482 | 10. INTANGIBLE ASSETS, NET Intangible assets, net, consist of the following: SCHEDULE OF INTANGIBLE ASSETS, NET As of December 31, 2020 As of December 31, 2019 Computer software $ 35,801 $ - Less: accumulated amortization (29,975 ) - Total $ 5,826 $ - Amortization expense for the years ended December 31, 2020 and 2019 amounted to $ 1,505 0 no | ||
Superior Living SDN. BHD. [Member] | March 31, 2020 [Member] | ||||
INTANGIBLE ASSETS, NET | 7 – INTANGIBLE ASSETS, NET Intangible assets, net, consist of the following: SCHEDULE OF INTANGIBLE ASSETS, NET March 31, 2020 December 31, 2019 Computer software $ 33,012 $ 139,798 Less: accumulated amortization (26,326 ) (132,206 ) Total $ 6,686 $ 7,592 Amortization expense for the three months ended March 31, 2020 and 2019 amounted to $ 494 1,621 | |||
Superior Living SDN. BHD. [Member] | December 31, 2019 [Member] | ||||
INTANGIBLE ASSETS, NET | 7 - INTANGIBLE ASSETS, NET Intangible assets, net, consist of the following: SCHEDULE OF INTANGIBLE ASSETS December 31, 2019 December 31, 2018 Computer software $ 139,798 $ 135,916 Less: accumulated depreciation and amortization (132,206 ) (124,889 ) Total $ 7,592 $ 11,027 Amortization expense for the years ended December 31, 2019 and 2018 amounted to $ 6,077 5,709 |
INVESTMENT IN MARKETABLE SECURI
INVESTMENT IN MARKETABLE SECURITIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Investment In Marketable Securities | ||
INVESTMENT IN MARKETABLE SECURITIES | 11. INVESTMENT IN MARKETABLE SECURITIES (i) On May 17, 2018, the Company purchased 83,333 500,000 6 (ii) On July 30, 2018, the Company disposed 20 125 6.2613 (iii) On October 16, 2018, the Company purchased 33,333 1,000 0.03 (iv) On November 3, 2020, the Company received dividend of 6,667 76,671 11.50 (v) On December 9, 2020, the Company received dividend of 16,663 83,315 5 SCHEDULE OF INVESTMENT IN MARKETABLE SECURITIES As of June 30, 2021 As of December 31, 2020 Cost of investment $ 577,035 $ 66,484 Dividend income from Greenpro Capital Corp. - 160,062 Unrealized holding (loss) gain (165,731 ) 350,137 Exchange rate effect (835 ) 352 Investment in marketable securities $ 410,469 $ 577,035 | 11. INVESTMENT IN MARKETABLE SECURITIES (i) On May 17, 2018, the Company purchased 83,333 500,000 6 (ii) On July 30, 2018, the Company disposed 20 125 6.2613 (iii) On October 16, 2018, the Company purchased 33,333 1,000 0.03 (iv) On November 3, 2020, the Company received dividend of 6,667 76,671 11.50 (v) On December 9, 2020, the Company received dividend of 16,663 83,315 5.00 SCHEDULE OF INVESTMENT IN MARKETABLE SECURITIES As of December 31, 2020 As of December 31, 2019 Cost of investment $ 66,484 $ 134,166 Dividend income from Greenpro Capital Corp. 160,062 - Unrealized holding gain (loss) 350,137 (68,391 ) Exchange rate effect 352 709 Investment in marketable securities $ 577,035 $ 66,484 |
INVESTMENT IN NON-MARKETABLE SE
INVESTMENT IN NON-MARKETABLE SECURITIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Investment In Non-marketable Securities | ||
INVESTMENT IN NON-MARKETABLE SECURITIES | 12. INVESTMENT IN NON-MARKETABLE SECURITIES The Company invested in Unreserved Sdn Bhd with the investment amount of $ 863,592 3,500,000 20 20.0 17.86 Unreserved Sdn Bhd was incorporated in Malaysia with 2,500,000 AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 12. INVESTMENT IN NON-MARKETABLE SECURITIES (Continued) On March 3, 2020, the Company agreed to sell the 17.86 730,637 70,173 660,464 On April 3, 2019, the Company purchased a 5 15,000,000 1,500 0.0001 SCHEDULE OF INVESTMENT IN NON MARKETABLE SECURITIES Unreserved Sdn Bhd As of As of Investment in non-marketable securities $ - $ 730,637 Less: Sale of investment in non-marketable securities - (730,637 ) Investment in non-marketable securities $ - $ - Phoenix Plus Corporation Cost of investment $ 1,500 $ 1,500 Total $ 1,500 $ 1,500 | 12. INVESTMENT IN NON-MARKETABLE SECURITIES The Company invested in Unreserved Sdn Bhd with the investment amount of $863,592 3,500,000 20% 20.0% 17.86% AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 12. INVESTMENT IN NON-MARKETABLE SECURITIES (CONT’D) Unreserved Sdn Bhd was incorporated in Malaysia with 2,500,000 On March 3, 2020, the Company agreed to sell the 17.86% 30,637 70,173 660,464 On April 3, 2019, the Company purchased a 5% 15,000,000 1,500 0.0001 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 |
OTHER PAYABLES AND ACCRUED LIAB
OTHER PAYABLES AND ACCRUED LIABILITIES | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
OTHER PAYABLES AND ACCRUED LIABILITIES | 13. OTHER PAYABLES AND ACCRUED LIABILITIES SCHEDULE OF OTHER PAYABLES AND ACCRUED LIABILITIES As of June 30, 2021 As of December 31, 2020 Professional fees $ 151,269 $ 297,636 Promotion expenses 36,259 37,433 Payroll 22,730 23,976 Commissions 231,603 224,711 Others 63,689 63,921 Total $ 505,550 $ 647,677 AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) | 13. OTHER PAYABLES AND ACCRUED LIABILITIES SCHEDULE OF OTHER PAYABLES AND ACCRUED LIABILITIES As of December 31, 2020 As of December 31, 2019 Professional fees $ 297,636 $ 58,594 Promotion expenses 37,433 - Payroll 23,976 - Commission 224,711 - Others 63,921 18,652 Total $ 647,677 $ 77,246 AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) | ||
Superior Living SDN. BHD. [Member] | March 31, 2020 [Member] | ||||
OTHER PAYABLES AND ACCRUED LIABILITIES | 8 – OTHER PAYABLES AND ACCRUED LIABILITIES Other payables and accrued liabilities consist of the following: SCHEDULE OF OTHER PAYABLES AND ACCRUED LIABILITIES March 31, 2020 December 31, 2019 Payables to non-trade vendors and service providers $ 209,096 $ 252,902 | |||
Superior Living SDN. BHD. [Member] | December 31, 2019 [Member] | ||||
OTHER PAYABLES AND ACCRUED LIABILITIES | 8 - OTHER PAYABLES AND ACCRUED LIABILITIES Other payables and accrued liabilities consist of the following: SCHEDULE OF OTHER PAYABLES AND ACCRUED LIABILITIES December 31, 2019 December 31, 2018 Payables to non-trade vendors and service providers $ 252,902 $ 968,547 |
RELATED PARTY BALANCES AND TRAN
RELATED PARTY BALANCES AND TRANSACTIONS | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
RELATED PARTY BALANCES AND TRANSACTIONS | 14. RELATED PARTY BALANCES AND TRANSACTIONS Related party balances Amount due from related parties SCHEDULE OF RELATED PARTIES Name of Related Party Relationship Nature As of June 30, 2021 As of Agape ATP (Asia) Limited (“AATP Asia”) Mr. How Kok Choong, the CEO and director of the Company is also the sole shareholder and director of AATP Asia Expenses paid for AATP Asia $ 2,224 $ 2,227 Hostastay Sdn. Bhd. Mr. How Kok Choong, the CEO and director of the Company is also the director of Hostastay Sublease rent due from Hostastay 3,375 996 TH3 Technology Sdn Bhd Mr. How Kok Choong, the CEO and director of the Company is also the director of TH3 Technology Expenses paid for TH3 Technology - 12 Total $ 5,599 $ 3,235 Amount due to a Related Party Name of Related Party Relationship Nature As of June 30, 2021 As of Agape Superior Living Pty Ltd Mr. How Kok Choong, the CEO and director of the Company ATP Printing label fees $ - $ 455 Total $ - $ 455 Related party transactions Revenue Name of Related Party Relationship Nature For the Three Months Ended June 30, 2021 For the Three Months Ended June 30, 2020 Agape Superior Living Pty Ltd (“ASLPL”) Mr. How Kok Choong, the CEO and director of the Company is a 51% shareholder and a director of ASLPL Sale of products $ - $ 13,654 Total $ - $ 13,654 AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 14. RELATED PARTY BALANCES AND TRANSACTIONS (CONT’D) Name of Related Party Relationship Nature For the Six Months Ended June 30, 2021 For the Six Months Ended June 30, 2020 Agape Superior Living Pty Ltd (“ASLPL”) Mr. How Kok Choong, the CEO and director of the Company is a 51% shareholder and a director of ASLPL Sale of products $ - $ 13,654 Total $ - $ 13,654 Other Income Name of Related Party Relationship Nature For the Three Months Ended June 30, 2021 For the Three Months Ended June 30, 2020 Hostastay Sdn. Bhd. Mr. How Kok Choong, the CEO and director of the Company is also the director of Hostastay Sublease rental income due from Hostastay $ 1,458 $ - Total $ 1,458 $ - Name of Related Party Relationship Nature For the Six Months Ended June 30, 2021 For the Six Months Ended June 30, 2020 Hostastay Sdn. Bhd. Mr. How Kok Choong, the CEO and director of the Company is also the director of Hostastay Sublease rental income due from Hostastay $ 2,929 $ - Total $ 2,929 $ - AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) | 14. RELATED PARTY BALANCES AND TRANSACTIONS Related party balances Accounts receivable – related party SCHEDULE OF RELATED PARTIES Name of Related Party Relationship Nature As of December 31, 2020 As of December 31, 2019 SEA VIE of ASL, Mr. How Kok Choong, the CEO and director of the Company is the sole shareholder and director of SEA Sales of products $ - $ 520,786 Total $ - $ 520,786 Amount due from related parties Name of Related Party Relationship Nature As of December 31, 2020 As of Agape ATP (Asia) Limited (“AATP Asia”) Mr. How Kok Choong, the CEO and director of the Company is also the sole shareholder and director of AATP Asia Expenses paid for AATP Asia $ 2,227 $ 2,217 Hostastay Sdn. Bhd. Mr. How Kok Choong, the CEO and director of the Company is also the director of Hostastay Sublease rent due from Hostastay 996 - TH3 Technology Sdn Bhd Mr. How Kok Choong, the CEO and director of the Company is also the director of TH3 Technology Expenses paid for TH3 Technology 12 - Total $ 3,235 $ 2,217 Amount due to a Related Party Name of Related Party Relationship Nature As of December 31, 2020 As of Mr. How Kok Choong CEO and director of the Company Acquisition payment of ASL and expenses paid for the Company $ - $ 3,952 Agape Superior Living Pty Ltd Mr. How Kok Choong, the CEO and director of the Company ATP Printing Label fees 455 - Total $ 455 $ 3,952 AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 14. RELATED PARTY BALANCES AND TRANSACTIONS (CONT’D) Related party transactions Revenue Name of Related Party Relationship Nature For the Year Ended December 31, 2020 For the Year Ended December 31, 2019 For the Six Months Ended December 31, 2019 (Unaudited) SEA VIE of ASL, Mr. How Kok Choong, the CEO and director of the Company is the sole shareholder and director of SEA Sales of products $ - $ 1,268,670 $ 429,362 Agape Superior Living Pty Ltd (“ASLPL”) Mr. How Kok Choong, the CEO and director of the Company is a 51% shareholder and a director of ASLPL Sales of products 18,060 21,461 - Total $ 18,060 $ 1,290,131 $ 429,362 Other income Name of Related Party Relationship Nature For the Year Ended December 31, 2020 For the Year Ended December 31, 2019 For the Six Months Ended December 31, 2019 (Unaudited) Hostastay Sdn. Bhd. Mr. How Kok Choong, the CEO and director of the Company is also the director of Hostastay Sublease rental income due from Hostastay $ 2,881 $ - $ - Total $ 2,881 $ - $ - AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) | ||
Superior Living SDN. BHD. [Member] | March 31, 2020 [Member] | ||||
RELATED PARTY BALANCES AND TRANSACTIONS | 9 – RELATED PARTY BALANCES AND TRANSACTIONS Other Receivable – Related Parties SCHEDULE OF RELATED PARTY TRANSACTIONS Name of Related Party Relationship Nature March 31, 2020 December 31, 2019 Agape Singapore Mr. How Kok Choong, the CEO and director of the Company Fees paid for Agape Singapore $ 9,994 $ 10,586 How Academy Sdn Bhd Mr. How Kok Choong, the director of the Company Paid advance to How Academy for business operational expenses 21,716 23,004 Redboy Picture Sdn Bhd Mr. How Kok Choong, the director of the Company Paid advance to Redboy for business operational expenses 123,019 132,141 TH3 Technology Sdn Bhd Mr. How Kok Choong, the director of the Company Paid advance to TH3 for business operational expenses 64,392 68,211 Total $ 219,121 $ 233,942 Accounts Payable - Related Party Name of Related Party Relationship Nature March 31, 2020 December 31, 2019 Agape ATP International Holding Limited Mr. How Kok Choong, the CEO and director of the Company Purchase $ 491,628 $ 520,786 Total $ 491,628 $ 520,786 Other Payables - Related Party Name of Related Party Relationship Nature March 31, 2020 December 31, 2019 Agape Superior Living Pty Ltd, Taiwan Mr. How Kok Choong, the CEO and director of the Company Printing of product label expenses $ $ 12,104 Total $ - $ 12,104 Purchases Name of Related Party Relationship Nature For the Three Months Ended March 31, 2020 For the Three Months Ended March 31, 2019 Agape ATP International Holding Limited Mr. How Kok Choong, the CEO and director of the Company Purchases $ - $ 464,297 Total $ - $ 464,297 | |||
Superior Living SDN. BHD. [Member] | December 31, 2019 [Member] | ||||
RELATED PARTY BALANCES AND TRANSACTIONS | 9- RELATED PARTY BALANCES AND TRANSACTIONS Other receivable – related parties SCHEDULE OF RELATED PARTIES RELATIONSHIPS Name of Related Party Relationship Nature December 31, 2019 December 31, 2018 Agape Singapore Mr. How Kok Choong, the CEO and director of the Company Fees paid for Agape Singapore $ 10,586 $ 10,490 How Academy Sdn. Bhd. Mr. How Kok Choong, the director of the Company Fees paid for How Academy 23,004 - Other Receivable – Related Parties Name of Related Party Relationship Nature December 31, 2019 December 31, 2018 Redboy Picture Sdn Bhd Mr. How Kok Choong, the director of the Company Paid advance to Redboy for business operational fees $ 132,141 $ - TH3 Technology Sdn Bhd Mr. How Kok Choong, the director of the Company Paid advance to TH3 for business expenses 68,211 - Dato Sri How Principal Owner, Board and CEO of the Company Expenses paid for Mr. How - 104,735 Total $ 233,942 $ 115,225 Prepayment - Related Party Name of Related Party Relationship Nature December 31, 2019 December 31, 2018 Agape ATP International Holding Limited Mr. How Kok Choong, the CEO and director of the Company Prepayment for Purchase $ - $ 214,701 Total $ - $ 214,701 Accounts Payable - Related Party Name of Related Party Relationship Nature December 31, 2019 December 31, 2018 Agape ATP International Holding Limited Mr. How Kok Choong, the CEO and director of the Company Purchase $ 520,786 $ - Total $ 520,786 $ - Other Payables - Related Parties Name of Related Party Relationship Nature December 31, 2019 December 31, 2018 Agape Superior Living Pty Ltd, Taiwan Mr. How Kok Choong, the CEO and director of the Company ATP Printing Label fees $ 12,104 $ 4,376 Total $ 12,104 $ 4,376 Purchases Name of Related Party Relationship Nature For the Year ended December 31, 2019 For the Year ended December 31, 2018 Agape ATP International Holding Limited Mr. How Kok Choong, the CEO and director of the Company Purchases $ 1,268,670 $ 685,288 Total $ 1,268,670 $ 685,288 |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | ||
STOCKHOLDERS’ EQUITY | 15. STOCKHOLDERS’ EQUITY Preferred stock As of June 30, 2021 and December 31, 2020, there were 200,000,000 none Common stock As of June 30, 2021 and December 31, 2020, there were 1,000,000,000 376,452,047 In May 2020, the Company issued 162,694 In June 2020, ASL made certain adjustments to its March 31, 2020 financial statements. As a result, the net assets carrying value increased by $ 90,043 13,853 13,853 There were no Non-controlling interest As of June 30, 2021 and for the three and six months ended June 30, 2021, no material transactions of non-controlling interest occurred from the operating results from ASL as the Company holds approximately 99.99 0 | 15. STOCKHOLDERS’ EQUITY Preferred stock As of December 31, 2020, and 2019, there were 200,000,000 none Common stock As of December 31, 2020, and 2019, there were 1,000,000,000 376,452,047 376,275,500 In May 2020, the Company issued 162,694 In June 2020, ASL made certain adjustments to its March 31, 2020 financial statements. As a result, the net assets carrying value increased by $ 90,043 13,853 13,853 There were no Non-controlling interest As of December 31, 2020, and for the year ended December 31, 2020, no material transactions of non-controlling interest occurred from the operating results from ASL as the Company holds approximately 99.99 0 |
INCOME TAXES
INCOME TAXES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
INCOME TAXES | 16. INCOME TAXES The United States and foreign components of income (loss) before income taxes were comprised of the following: SCHEDULE OF COMPONENTS OF INCOME/(LOSS) BEFORE INCOME TAX For the three months ended For the six months ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Tax jurisdictions from: Local – United States $ (96,370 ) $ (161,751 ) $ (204,295 ) $ (304,170 ) Foreign – Malaysia (177,983 ) 369,367 (469,675 ) 313,780 Foreign – Hong Kong (363,901 ) 13,691 (291,814 ) (20,053 ) (Loss) income before income tax $ (638,254 ) $ 221,307 $ (965,784 ) $ (10,443 ) AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 16. INCOME TAXES (Continued) The provision for income taxes consisted of the following: SCHEDULE OF PROVISION FOR INCOME TAX For the three months ended For the six months ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Current: - Local $ (22,205 ) $ - $ (22,205 ) $ - - Foreign (14,461 ) - (41,185 ) - Deferred: - Local - - - - - Foreign 32,695 (134,067 ) 53,299 (134,067 ) Provision for income tax $ (3,971 ) $ (134,067 ) $ (10,091 ) $ (134,067 ) 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, Malaysia (including 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 with a corporate tax rate of 21 35 In addition, the Tax Cuts and Jobs Act imposed a global intangible low-taxed income (“GILTI”) tax, which is a tax on certain off-shore earnings at an effective rate of 10.5% for tax years (50% deduction of the current enacted tax rate of 21%) with a partial offset for 80% foreign tax credits. If the foreign tax rate is 13.125% or higher, there will be no U.S. corporate tax after the 80% foreign tax credits are applied. For the three and six months ended June 30, 2021 and 2020, the Company’s foreign subsidiaries did not generate any income that are subject to Subpart F tax and GILTI tax. For the three and six months ended June 30, 2021, the Company re-visited its fiscal 2020 U.S. income taxes and determined its stock dividend from Greenpro Capital Corp as a result of its Spin-off of DSwiss Inc.’s shares in 2020 were subject to Subpart F and GILTI taxes. As a result, the Company incurred additional income taxes expenses of $ 22,205 395 312,608 65,648 0 As of June 30, 2021 and December 31, 2020, the operations in the United States of America incurred approximately $ 204,000 0 43,000 0 Malaysia Changes to the Labuan Business Activity Tax Act (LBATA) 1990 which was gazetted and came into operation on January 1, 2019 mandate companies incorporated in Labuan to satisfy the “substantial activity requirements” to qualify for the preferential tax rate of 3 24 AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 16. INCOME TAXES (Continued) Agape Superior Living Sdn Bhd, Agape S.E.A Sdn Bhd and Wellness ATP International Holdings sdn Bhd. are governed by the income tax laws of Malaysia and the income tax provision in respect of operations in Malaysia is calculated at the applicable tax rates on the taxable income for the periods based on existing legislation, interpretations and practices in respect thereof. Under the Income Tax Act of Malaysia, enterprises that incorporated in Malaysia are usually subject to a unified 24% enterprise income tax rate while preferential tax rates, tax holidays and even tax exemption may be granted on case-by-case basis. The tax rate for small and medium sized companies (generally companies incorporated in Malaysia with paid-in capital of RM 2,500,000 or less) is 17 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 The following table sets forth the significant components of the aggregate deferred tax assets of the Company as of: SCHEDULE OF DEFERRED TAX ASSETS As of June 30, 2021 As of December 31, 2020 Deferred tax assets: Net operating loss carry forwards in U.S. $ 42,902 $ - Net operating loss carry forwards in Malaysia 47,090 62,678 Less: valuation allowance (42,902 ) - Deferred tax liabilities: Depreciation - (68,421 ) Deferred tax assets (liabilities), net $ 47,090 $ (5,743 ) Uncertain tax positions The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of June 30, 2021 and December 31, 2020, the Company did not have any significant unrecognized uncertain tax positions. The Company did not incur interest and penalties tax for the three and six months ended June 30, 2021 and 2020. AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) | 16. INCOME TAXES The United States and foreign components of income (loss) before income taxes were comprised of the following: SCHEDULE OF COMPONENTS OF INCOME/(LOSS) BEFORE INCOME TAX For the years ended For the six months ended December 31, December 31, 2020 2019 2019 (Unaudited) Tax jurisdictions from: - U.S. $ (735,159 ) $ (321,808 ) $ (279,476 ) - Foreign – Malaysia 1,070,806 38,625 (4,174 ) - Foreign – Hong Kong 180,700 (439,909 ) (55,281 ) Income (loss) before income taxes $ 516,347 $ (723,092 ) $ (338,931 ) AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 16. INCOME TAXES (CONT’D) The (provision for) benefit of income taxes consisted of the following: SCHEDULE OF PROVISION FOR INCOME TAX 2020 2019 2019 For the Years Ended December 31, For the Six Months Ended December 31, 2020 2019 2019 (Unaudited) Current: - U.S. $ - $ - $ - - Foreign 16,748 6,965 - Deferred: - U.S. - - - - Foreign (178,329 ) - - (Provision for) benefit of income taxes $ (161,581 ) $ 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 taxes rates. The Company and its subsidiary that operate in various countries: United States, Malaysia (including 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 with a corporate tax rate of 21 35 In addition, the Tax Cuts and Jobs Act imposed a global intangible low-taxed income (“GILTI”) tax, which is a tax on certain off-shore earnings at an effective rate of 10.5% for tax years (50% deduction of the current enacted tax rate of 21%) with a partial offset for 80% foreign tax credits. If the foreign tax rate is 13.125% or higher, there will be no U.S. corporate tax after the 80% foreign tax credits are applied. During the year ended December 31, 2020, the Company’s foreign subsidiaries generated approximately $ 636,000 134,000 As of December 31, 2020 and 2019, the operations in the United States of America incurred approximately $ 313,000 213,000 10,000 24,000 2027 2028 66,000 43,000 Malaysia Changes to the Labuan Business Activity Tax Act (LBATA) 1990 which was gazetted and came into operation on January 1, 2019 mandate companies incorporated in Labuan to satisfy the “substantial activity requirements” to qualify for the preferential tax rate of 3 24 AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 16. INCOME TAXES (CONT’D) Agape Superior Living Sdn Bhd, Agape S.E.A Sdn Bhd and Wellness ATP International Holdings Sdn Bhd. are governed by the income taxes laws of Malaysia and the income taxes provision in respect of operations in Malaysia is calculated at the applicable tax rates on the taxable income for the periods based on existing legislation, interpretations and practices in respect thereof. Under the Income Tax Act of Malaysia, enterprises that incorporated in Malaysia are usually subject to a unified 24% enterprise income taxes rate while preferential tax rates, tax holidays and even tax exemption may be granted on case-by-case basis. The tax rate for small and medium sized companies (generally companies incorporated in Malaysia with paid-in capital of RM 2,500,000 or less) is 17 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 The following table reconciles the local (United States) statutory rates to the Company’s effective tax rate for the periods indicated below: SCHEDULE OF EFFECTIVE INCOME TAX RATE 2020 2019 2019 For the years ended For the six months ended December 31, December 31, 2020 2019 2019 (Unaudited) U.S. statutory rate 21.0 % 21.0 % 21.0 % Valuation allowance (4.0 )% (21.0 )% (21.0 )% Differential tax rate in Malaysia 3.0 % 0.0 % 0.0 % Permanent difference 11.3 % (1) 1.0 % 0.0 % Effective tax rate 31.3 % 1.0 % 0.0 % (1) 10.2 0.2 1.3 The following table sets forth the significant components of the aggregate deferred tax assets of the Company as of: SCHEDULE OF DEFERRED TAX ASSETS As of December 31, 2020 As of December 31, 2019 Deferred tax assets: Net operating loss carry forwards in U.S. $ 65,648 $ 43,410 Net operating loss carry forwards in Malaysia 62,678 - Less: valuation allowance (65,648 ) (43,410 ) Deferred tax liabilities: Depreciation (68,421 ) - Deferred tax liabilities, net $ (5,743 ) $ - Uncertain tax positions The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of December 31, 2020, and 2019, the Company did not not AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) |
CONCENTRATIONS OF RISKS
CONCENTRATIONS OF RISKS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | ||
CONCENTRATIONS OF RISKS | 17. CONCENTRATIONS OF RISKS (a) Major customers For the three months ended June 30, 2021 and 2020, no customer accounted for 10 10 There are no account receivable balance as of June 30, 2021. As of December 31, 2020, receivables from a third-party e-commerce company accounted for approximately 100.0 (b) Major vendors For the three and six months ended June 30, 2021, one vendor accounted for 100.0 100.0 There are no accounts payable balance as of June 30, 2021 and December 31, 2020. (c) Commission Expenses to Sales Distributors and Stockists For the three months ended June 30, 2021, one sales distributor accounted for 21.9% 16.2% 10.0% (d) Credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash. As of June 30, 2021 and December 31, 2020, $ 1,215,004 1,112,147 776,485 563,788 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. (e) 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. AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) | 17. CONCENTRATIONS OF RISKS (a) Major customers For the year ended December 31, 2020, no customer accounted for 10 98.3 100.0 As of December 31, 2020, receivables from a third-party e-commerce company accounted for approximately 100.0 100.0 (b) Major vendors For the year ended December 31, 2020, two vendors accounted for approximately 74.1 25.9 23,330 0.01 74.1 60.1 39.9 59 41 There are no accounts payable balance as of December 31, 2020. As of December 31, 2019, one vendor accounted for 100 (c) Commission Expenses to Sales Distributors and Stockists For the year ended December 31, 2020, no sales distributor accounted for 10 (d) Credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash. As of December 31, 2020, and 2019, $ 1,112,147 238,937 563,788 0 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. (e) 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 | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES | 18. COMMITMENTS AND CONTINGENCIES Lease commitments On April 1, 2020, the Company adopted ASC 842 for ASL’s office space lease and sales and training center as the lease commencement date upon the acquisition of ASL. The Company recognized lease liabilities of approximately $ 490,000 5.5 On May 31, 2021, the Company entered into two separate two-year leases extension with the modified lease expiring May 31, 2023 August 31, 2023 3,286 5.5 As of June 30, 2021, the weighted remaining term of the lease is approximately 2.04 The five-year maturity of the Company’s operating lease liabilities is as follow: SCHEDULE OF LEASE COMMITMENTS 2021 Twelve Months Ending Operating lease liabilities 2022 $ 162,318 2023 153,835 2024 8,323 Total lease payments 324,476 Less: interest (17,868 ) Present value of lease liabilities $ 306,608 The Company also leases one distribution center and two employee apartments with an expiring term of twelve months or fewer, which were classified as operating leases. For lease terms of twelve months or fewer, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. The Company selected not to recognize lease assets and liabilities on these leases. As of June 30, 2021, the Company’s commitment for minimum lease payments under these operating leases within the next twelve months are $1,302. Rent expense for the three months ended June 30, 2021 and 2020 was $ 45,560 52,672 91,521 66,180 Purchase commitments The total future minimum purchase commitment under a non-cancellable purchase contract as of June 30, 2021 for the next five years and thereafter is as follows: SCHEDULE OF PURCHASE COMMITMENTS 2021 Twelve months ending June 30, Minimum purchase 2022 $ 693,900 2023 693,900 2024 693,900 2025 693,900 2026 693,900 Thereafter 1,040,850 Total minimum purchase commitments required $ 4,510,350 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. AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 18. COMMITMENTS AND CONTINGENCIES (Continued) Contingencies Legal 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 unaudited condensed consolidated financial statements. COVID-19 Since the declaration of the COVID-19 a pandemic on March 11, 2020, by the World Health Organization or WHO, Malaysia has been put through various stages of lockdowns such as (1) full movement control orders (“MCO”), under which, quarantines, travel restrictions, and the temporary closure of stores and facilities in Malaysia were made mandatory, (2) MCO were eased to a Conditional Movement Control Order (“CMCO”) where most business sectors were allowed to operate under strict rules and Standard Operating Procedures mandated by the government of Malaysia and (3) CMCO were further relaxed to Recovery Movement Control Order (“RMCO”). On January 12, 2021, due to a resurgence of COVID-19 cases, the Malaysian government declared a state of emergency nationwide to combat COVID-19. Intermittent lockdowns were imposed in various states and districts in the country. February 2021 marked a significant month for Malaysia as all frontline staff of the country, which comprised those in healthcare, police, the Volunteers Department of Malaysia, the Fire and Rescue Department of Malaysia and civil defense sectors were vaccinated. On February 16, 2021, Prime Minister, Tan Sri Muhyiddin Yassin announced that a National COVID-19 Immunisation Plan will be implemented for one year after February 2021, which 80% of the Malaysia population will be vaccinated to achieve herd immunization. On March 5, 2021, lockdowns in most part of the country was eased to a CMCO, nevertheless, COVID-19 cases in the country continue to rise. On May 12, 2021, Malaysia was again put under a full lockdown nationwide, until the earlier of (i) daily COVID-19 cases infection of the country fall below 4,000; (ii) intensive Unit Care, or ICU, wards start operating at a moderate level; or (iii) 10% of the Malaysian population is fully vaccinated. The country is administering over 400,000 doses of COVID-19 vaccines daily. On July 17, 2021, the full lockdown was slightly eased as 13.9% of the Malaysian population was fully vaccinated, with another 30% having received at least one dose of the vaccine. Substantially all of our revenues are concentrated in Malaysia. Consequently, our results of operations will likely be adversely, and may be materially, affected, to the extent that the COVID-19 or any other epidemic harms the Malaysia and global economy in general. Any potential impact to our results will depend on, to a large extent, future developments and new information that may emerge regarding the duration and severity of the COVID-19 and the actions taken by government authorities and other entities to contain the COVID-19 or treat its impact, almost all of which are beyond our control. Potential impacts include, but are not limited to, the following: ● temporary closure of offices, travel restrictions, financial impact of the Company’s customers or suspension supplies may be negatively affected, and could continue to negatively affect the demand for the Company’s product; ● the Company may have to provide significant sales incentives to its customers during the outbreak, which may in turn materially adversely affect its financial condition and operating results; and ● any disruption of the Company’s supply chain, logistics providers or customers could adversely impact its business and results of operations, including causing the Company or its suppliers to cease manufacturing for a period of time or materially delay delivery to its customers, which may also lead to loss of its customers. Because of the uncertainty surrounding the COVID-19 outbreak, the financial impact related to the outbreak of and response to the COVID-19 cannot be reasonably estimated at this time. There is no guarantee that the Company’s total revenues will grow or remain at the similar level year over year in 2021 and 2022. | 18. COMMITMENTS AND CONTINGENCIES Lease commitments On April 1, 2020, the Company adopted ASC 842 for ASL’s office space lease and sales and training center as the lease commencement date upon the acquisition of ASL. The Company recognized lease liabilities of approximately $ 506,000 5.5 2.54 The five-year maturity of the Company’s operating lease liabilities is as follow: SCHEDULE OF LEASE COMMITMENTS Twelve Months Ending Operating lease liabilities 2021 $ 172,191 2022 168,890 2023 83,259 Thereafter - Total lease payments 424,340 Less: interest (28,576 ) Present value of lease liabilities $ 395,764 The Company also leases one distribution center and one employee apartments with an expiring term of twelve months or fewer, which were classified as operating leases. For lease terms of twelve months or fewer, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. The Company selected not to recognize lease assets and liabilities on these leases. As of December 31, 2020, the Company’s commitment for minimum lease payments under these operating leases within the next twelve months are $ 4,654 Rent expense for the years ended December 31, 2020 and 2019 was $ 156,716 53,594 26,828 Purchase commitments The total future minimum purchase commitment under a non-cancellable purchase contract as of December 31, 2020 for the next five years and thereafter is as follows: SCHEDULE OF PURCHASE COMMITMENTS Twelve months ending December 31, Minimum purchase 2021 $ 693,900 2022 693,900 2023 693,900 2024 693,900 2025 693,900 Thereafter 1,387,800 Total minimum purchase commitments required $ 4,857,300 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. AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 18. COMMITMENTS AND CONTINGENCIES (CONT’D) Contingencies Legal 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. COVID-19 Since the declaration of the COVID-19 a pandemic on March 11, 2020, by the World Health Organization or WHO, Malaysia has been put through various stages of lockdowns such as (1) full movement control orders (“MCO”), under which, quarantines, travel restrictions, and the temporary closure of stores and facilities in Malaysia were made mandatory, (2) MCO were eased to a Conditional Movement Control Order (“CMCO”) where most business sectors were allowed to operate under strict rules and Standard Operating Procedures mandated by the government of Malaysia and (3) CMCO were further relaxed to Recovery Movement Control Order (“RMCO”). On January 12, 2021, due to a resurgence of COVID-19 cases, the Malaysian government declared a state of emergency nationwide to combat COVID-19. Intermittent lockdowns were imposed in various states and districts in the country. February 2021 marked a significant month for Malaysia as all frontline staff of the country, which comprised those in healthcare, police, the Volunteers Department of Malaysia, the Fire and Rescue Department of Malaysia and civil defence sectors were vaccinated. On February 16, 2021, Prime Minister, Tan Sri Muhyiddin Yassin announced that a National COVID-19 Immunisation Plan will be implemented for one year after February 2021, which 80% of the Malaysia population will be vaccinated to achieve herd immunization. On March 5, 2021, lockdowns in most part of the country was eased to a CMCO. As at the date of this report, over 450,000 doses of the COVID-19 vaccines have been administered in the country. Substantially all of our revenues are concentrated in Malaysia. Consequently, our results of operations will likely be adversely, and may be materially, affected, to the extent that the COVID-19 or any other epidemic harms the Malaysia and global economy in general. Any potential impact to our results will depend on, to a large extent, future developments and new information that may emerge regarding the duration and severity of the COVID-19 and the actions taken by government authorities and other entities to contain the COVID-19 or treat its impact, almost all of which are beyond our control. Potential impacts include, but are not limited to, the following: ● temporary closure of offices, travel restrictions, financial impact of the Company’s customers or suspension supplies may negatively affected, and could continue to negatively affect, the demand for the Company’s product; ● the Company may have to provide significant sales incentives to its customers during the outbreak, which may in turn materially adversely affect its financial condition and operating results; and any disruption of the Company’s supply chain, logistics providers or customers could adversely impact its business and results of operations, including causing the Company or its suppliers to cease manufacturing for a period of time or materially delay delivery to its customers, which may also lead to loss of its customers. Because of the uncertainty surrounding the COVID-19 outbreak, the financial impact related to the outbreak of and response to the COVID-19 cannot be reasonably estimated at this time. There is no guarantee that the Company’s total revenues will grow or remain at the similar level year over year in 2021. | ||
Superior Living SDN. BHD. [Member] | March 31, 2020 [Member] | ||||
COMMITMENTS AND CONTINGENCIES | 12 – COMMITMENTS AND CONTINGENCIES Lease Commitments The Company has entered into five non-cancellable operating lease agreements for one office space, one sales and training center, two distribution centers and one employee apartment. The Company’s commitment for minimum lease payments under these operating leases as of March 31, 2020 for the next five years is as follow: SCHEDULE OF FUTURE MINIMUM PURCHASE COMMITMENT Twelve Months Ending Minimum Lease Payment 2021 $ 164,745 2022 158,981 2023 156,551 2024 38,038 Thereafter - Total minimum payments required $ 518,315 Rent expense for the three months ended March 31, 2020 and 2019 was $ 44,338 43,982 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 unaudited condensed consolidated financial statements. | |||
Superior Living SDN. BHD. [Member] | December 31, 2019 [Member] | ||||
COMMITMENTS AND CONTINGENCIES | 13 - COMMITMENTS AND CONTINGENCIES Lease Commitments The Company has entered into five non-cancellable operating lease agreements for one office space, one sales and training center, two distribution centers and one employee apartment. The Company’s commitment for minimum lease payments under these operating leases as of December 31, 2019 for the next five years is as follow: SCHEDULE OF FUTURE MINIMUM PURCHASE COMMITMENT Twelve Months Ending Minimum 2020 $ 178,035 2021 169,077 2022 165,836 2023 81,753 Thereafter - Total minimum payments required $ 594,701 Rent expense for the years ended December 31, 2019 and 2018 was $ 175,755 125,309 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. |
ACCOUNTS RECEIVABLE AND ACCOUNT
ACCOUNTS RECEIVABLE AND ACCOUNTS RECEIVABLE – RELATED PARTY | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE AND ACCOUNTS RECEIVABLE – RELATED PARTY | 6. ACCOUNTS RECEIVABLE AND ACCOUNTS RECEIVABLE – RELATED PARTY SCHEDULE OF ACCOUNTS RECEIVABLES - RELATED PARTY As of December 31, 2020 As of December 31, 2019 Accounts receivable $ 172,757 $ - Accounts receivable – related party - 520,786 Total $ 172,757 $ 520,786 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
SUBSEQUENT EVENTS | 19. SUBSEQUENT EVENTS On January 25, 2021, the Company and the shareholders (the “Sellers”) of DSY Wellness & Longevity Center Sdn. Bhd. and DSY Medical Education Sdn. Bhd. entered into a non-binding Letter of Intent (“LOI”) for the acquisition of 51 On February 1, 2021, Mr. How Kok Choong, the CEO and director of the Company, is appointed as the non-executive Chairman of Vettons Sdn Bhd. (“Vettons”), 172,757 from Vettons, representing 100 % of our accounts receivable. | ||
Superior Living SDN. BHD. [Member] | March 31, 2020 [Member] | |||
SUBSEQUENT EVENTS | 13 – SUBSEQUENT EVENTS 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 subsequent to March 31, 2020. There is significant uncertainty around the breadth and 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, Mr. How Kok Choong, an approximately 99.99% 9,590,596 no 1,714,003 656,495 1,057,508 99.99% In June 2020, the Company made certain adjustments to its March 31, 2020 financial statements, As a result, the net assets carrying value increased by $ 90,043 13,853 90,043 6.50 | ||
Superior Living SDN. BHD. [Member] | December 31, 2019 [Member] | |||
SUBSEQUENT EVENTS | 14 - SUBSEQUENT EVENTS 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 breadth and 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. The Company is in negotiations with Agape ATP Corporation (“Agape”), a company incorporated in Nevada, the United States, and listed and traded on the OTC Market to be acquired for stock of Agape. The Company is anticipating to close this transaction during May 2020. The shareholders of the Company, How Kok Choong, Lim Ah Yew Lim Soo Yew, and Lor Keat Yoon, (collectively, the “Sellers”) and Agape (the “Purchaser”) will enter into an agreement, pursuant to which the Sellers will sell their 100 |
NATURE OF BUSINESS AND ORGANIZA
NATURE OF BUSINESS AND ORGANIZATION - Superior Living SDN. BHD. [Member] | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
March 31, 2020 [Member] | ||
NATURE OF BUSINESS AND ORGANIZATION | 1 - NATURE OF BUSINESS AND ORGANIZATION Agape Superior Living Sdn. Bhd. (“ASL” or the “Company”) is a limited company incorporated on August 8, 2003, under the laws of Malaysia. The Company engages in the direct selling marketing business in the Health and Wellness Industry. The principal activity of the Company is to supply high-quality health and wellness products, including supplements to assist in cell metabolism, detoxification, blood circulation, anti-aging and products designed to improve the overall health system in the body. The accompanying unaudited condensed consolidated financial statements reflect the activities of ASL and Agape S.E.A. Sdn. Bhd. (“SEA”), a variable interest entity (“VIE”) (See Note 3). Business Overview AGAPE Superior Living Sdn. Bhd. is a network marketing company specializing in healthcare products and focusing on improving people’s health and wellbeing that has been in existence in Malaysia for the past 15 years. The Company’s 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 proper nutrition and advice from skilled nutritionists and/or dieticians. The Company’s ATP Zeta Health Program is a health program designed to promote health and general wellbeing also to prevent health diseases caused by polluted environments, unhealthy dietary intake and unhealthy lifestyles. The program aims to promote improved health and longevity in its customers through a combination of proper nutrition and advice from skilled dieticians as well as trained members and distributors. The ATP Zeta Super Health Program consists of eight products. None of these products are owned or produced by the Company. In the event that any of these products are no longer produced, or are otherwise unavailable, the Company 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. The Company’s ÉNERGÉTIQUE series aims to provide a total dermal solution for a healthy skin beginning from the cellular level. The series is comprised of Energy Mask series, Hyaluronic Acid Serum and Mousse Facial Cleanser. The Company’s BEAUNIQUE product series focuses on the research of diet’s impact on modifying gene expressions to address genetic variations and deliver a nutrigenomic solution for every individual. | |
December 31, 2019 [Member] | ||
NATURE OF BUSINESS AND ORGANIZATION | 1 - NATURE OF BUSINESS AND ORGANIZATION Agape Superior Living Sdn. Bhd. (“ASL” or the “Company”) is a limited company incorporated on August 8, 2003, under the laws of Malaysia. The Company engages in the direct selling marketing business in the Health and Wellness Industry. The principal activity of the Company is to supply high-quality health and wellness products, including supplements to assist in cell metabolism, detoxification, blood circulation, anti-aging and products designed to improve the overall health system in the body. The accompanying consolidated financial statements reflect the activities of ASL and Agape S.E.A. Sdn. Bhd. (“SEA”), a variable interest entity (“VIE”) (See Note 3). Business Overview AGAPE Superior Living Sdn. Bhd. is a network marketing company specializing in healthcare products and focusing on improving people’s health and wellbeing. The Company primarily focuses its efforts on customers in Malaysia. The Company’s scientific team and medical advisors strongly believe that this is best done through creating easy access to a nutrient rich food supply that can have a direct effect in improving the wellbeing of the individual, through providing nutrients and vitamins no longer readily available. The herbal and vitamin supplements are packed with naturally occurring nutrients and minerals. When they are combined with a healthy balanced diet, the body is really nourished, and improvements in strength, skin color, healing ability and cell rejuvenation often begin to occur. The Company is also helping people enjoy greater health and ‘superior living’ right now through the ATP Zeta Super Health Program. Other award winning products have been selected to compliment the products that form the ATP Zeta Program. The ATP Zeta Super Health Program consists of twelve products. None of these products are owned or produced by the Company. In the event that any of these products are no longer produced, or are otherwise unavailable, the Company may have to devote significant effort to identifying and obtaining comparable replacement products. The twelve 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, YFA-Young Formula, Mitogize, ORYC-Organic Youth Care Cleansing Bar, No.1 MED and Trim+. |
PREPAYMENTS AND OTHER ASSETS
PREPAYMENTS AND OTHER ASSETS - Superior Living SDN. BHD. [Member] | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
March 31, 2020 [Member] | ||
PREPAYMENTS AND OTHER ASSETS | 5 – PREPAYMENTS AND OTHER ASSETS Prepayments and other assets consist of the following: SCHEDULE OF PREPAID EXPENSES AND DEPOSITS March 31, 2020 December 31, 2019 Deposits to suppliers $ 274,558 $ 396,731 Deposits to service providers 43,709 88,149 Total $ 318,267 $ 484,880 | |
December 31, 2019 [Member] | ||
PREPAYMENTS AND OTHER ASSETS | 5 - PREPAYMENTS AND OTHER ASSETS Prepayments and other assets consist of the following: SCHEDULE OF PREPAYMENTS AND OTHER ASSETS December 31, 2019 December 31, 2018 Deposits to suppliers $ 396,731 $ 429,456 Deposits to service providers 88,149 39,394 Total $ 484,880 $ 468,850 |
TAXES
TAXES | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
TAXES | 16. INCOME TAXES The United States and foreign components of income (loss) before income taxes were comprised of the following: SCHEDULE OF COMPONENTS OF INCOME/(LOSS) BEFORE INCOME TAX For the three months ended For the six months ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Tax jurisdictions from: Local – United States $ (96,370 ) $ (161,751 ) $ (204,295 ) $ (304,170 ) Foreign – Malaysia (177,983 ) 369,367 (469,675 ) 313,780 Foreign – Hong Kong (363,901 ) 13,691 (291,814 ) (20,053 ) (Loss) income before income tax $ (638,254 ) $ 221,307 $ (965,784 ) $ (10,443 ) AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 16. INCOME TAXES (Continued) The provision for income taxes consisted of the following: SCHEDULE OF PROVISION FOR INCOME TAX For the three months ended For the six months ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Current: - Local $ (22,205 ) $ - $ (22,205 ) $ - - Foreign (14,461 ) - (41,185 ) - Deferred: - Local - - - - - Foreign 32,695 (134,067 ) 53,299 (134,067 ) Provision for income tax $ (3,971 ) $ (134,067 ) $ (10,091 ) $ (134,067 ) 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, Malaysia (including 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 with a corporate tax rate of 21 35 In addition, the Tax Cuts and Jobs Act imposed a global intangible low-taxed income (“GILTI”) tax, which is a tax on certain off-shore earnings at an effective rate of 10.5% for tax years (50% deduction of the current enacted tax rate of 21%) with a partial offset for 80% foreign tax credits. If the foreign tax rate is 13.125% or higher, there will be no U.S. corporate tax after the 80% foreign tax credits are applied. For the three and six months ended June 30, 2021 and 2020, the Company’s foreign subsidiaries did not generate any income that are subject to Subpart F tax and GILTI tax. For the three and six months ended June 30, 2021, the Company re-visited its fiscal 2020 U.S. income taxes and determined its stock dividend from Greenpro Capital Corp as a result of its Spin-off of DSwiss Inc.’s shares in 2020 were subject to Subpart F and GILTI taxes. As a result, the Company incurred additional income taxes expenses of $ 22,205 395 312,608 65,648 0 As of June 30, 2021 and December 31, 2020, the operations in the United States of America incurred approximately $ 204,000 0 43,000 0 Malaysia Changes to the Labuan Business Activity Tax Act (LBATA) 1990 which was gazetted and came into operation on January 1, 2019 mandate companies incorporated in Labuan to satisfy the “substantial activity requirements” to qualify for the preferential tax rate of 3 24 AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 16. INCOME TAXES (Continued) Agape Superior Living Sdn Bhd, Agape S.E.A Sdn Bhd and Wellness ATP International Holdings sdn Bhd. are governed by the income tax laws of Malaysia and the income tax provision in respect of operations in Malaysia is calculated at the applicable tax rates on the taxable income for the periods based on existing legislation, interpretations and practices in respect thereof. Under the Income Tax Act of Malaysia, enterprises that incorporated in Malaysia are usually subject to a unified 24% enterprise income tax rate while preferential tax rates, tax holidays and even tax exemption may be granted on case-by-case basis. The tax rate for small and medium sized companies (generally companies incorporated in Malaysia with paid-in capital of RM 2,500,000 or less) is 17 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 The following table sets forth the significant components of the aggregate deferred tax assets of the Company as of: SCHEDULE OF DEFERRED TAX ASSETS As of June 30, 2021 As of December 31, 2020 Deferred tax assets: Net operating loss carry forwards in U.S. $ 42,902 $ - Net operating loss carry forwards in Malaysia 47,090 62,678 Less: valuation allowance (42,902 ) - Deferred tax liabilities: Depreciation - (68,421 ) Deferred tax assets (liabilities), net $ 47,090 $ (5,743 ) Uncertain tax positions The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of June 30, 2021 and December 31, 2020, the Company did not have any significant unrecognized uncertain tax positions. The Company did not incur interest and penalties tax for the three and six months ended June 30, 2021 and 2020. AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) | 16. INCOME TAXES The United States and foreign components of income (loss) before income taxes were comprised of the following: SCHEDULE OF COMPONENTS OF INCOME/(LOSS) BEFORE INCOME TAX For the years ended For the six months ended December 31, December 31, 2020 2019 2019 (Unaudited) Tax jurisdictions from: - U.S. $ (735,159 ) $ (321,808 ) $ (279,476 ) - Foreign – Malaysia 1,070,806 38,625 (4,174 ) - Foreign – Hong Kong 180,700 (439,909 ) (55,281 ) Income (loss) before income taxes $ 516,347 $ (723,092 ) $ (338,931 ) AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 16. INCOME TAXES (CONT’D) The (provision for) benefit of income taxes consisted of the following: SCHEDULE OF PROVISION FOR INCOME TAX 2020 2019 2019 For the Years Ended December 31, For the Six Months Ended December 31, 2020 2019 2019 (Unaudited) Current: - U.S. $ - $ - $ - - Foreign 16,748 6,965 - Deferred: - U.S. - - - - Foreign (178,329 ) - - (Provision for) benefit of income taxes $ (161,581 ) $ 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 taxes rates. The Company and its subsidiary that operate in various countries: United States, Malaysia (including 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 with a corporate tax rate of 21 35 In addition, the Tax Cuts and Jobs Act imposed a global intangible low-taxed income (“GILTI”) tax, which is a tax on certain off-shore earnings at an effective rate of 10.5% for tax years (50% deduction of the current enacted tax rate of 21%) with a partial offset for 80% foreign tax credits. If the foreign tax rate is 13.125% or higher, there will be no U.S. corporate tax after the 80% foreign tax credits are applied. During the year ended December 31, 2020, the Company’s foreign subsidiaries generated approximately $ 636,000 134,000 As of December 31, 2020 and 2019, the operations in the United States of America incurred approximately $ 313,000 213,000 10,000 24,000 2027 2028 66,000 43,000 Malaysia Changes to the Labuan Business Activity Tax Act (LBATA) 1990 which was gazetted and came into operation on January 1, 2019 mandate companies incorporated in Labuan to satisfy the “substantial activity requirements” to qualify for the preferential tax rate of 3 24 AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 16. INCOME TAXES (CONT’D) Agape Superior Living Sdn Bhd, Agape S.E.A Sdn Bhd and Wellness ATP International Holdings Sdn Bhd. are governed by the income taxes laws of Malaysia and the income taxes provision in respect of operations in Malaysia is calculated at the applicable tax rates on the taxable income for the periods based on existing legislation, interpretations and practices in respect thereof. Under the Income Tax Act of Malaysia, enterprises that incorporated in Malaysia are usually subject to a unified 24% enterprise income taxes rate while preferential tax rates, tax holidays and even tax exemption may be granted on case-by-case basis. The tax rate for small and medium sized companies (generally companies incorporated in Malaysia with paid-in capital of RM 2,500,000 or less) is 17 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 The following table reconciles the local (United States) statutory rates to the Company’s effective tax rate for the periods indicated below: SCHEDULE OF EFFECTIVE INCOME TAX RATE 2020 2019 2019 For the years ended For the six months ended December 31, December 31, 2020 2019 2019 (Unaudited) U.S. statutory rate 21.0 % 21.0 % 21.0 % Valuation allowance (4.0 )% (21.0 )% (21.0 )% Differential tax rate in Malaysia 3.0 % 0.0 % 0.0 % Permanent difference 11.3 % (1) 1.0 % 0.0 % Effective tax rate 31.3 % 1.0 % 0.0 % (1) 10.2 0.2 1.3 The following table sets forth the significant components of the aggregate deferred tax assets of the Company as of: SCHEDULE OF DEFERRED TAX ASSETS As of December 31, 2020 As of December 31, 2019 Deferred tax assets: Net operating loss carry forwards in U.S. $ 65,648 $ 43,410 Net operating loss carry forwards in Malaysia 62,678 - Less: valuation allowance (65,648 ) (43,410 ) Deferred tax liabilities: Depreciation (68,421 ) - Deferred tax liabilities, net $ (5,743 ) $ - Uncertain tax positions The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of December 31, 2020, and 2019, the Company did not not AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) | ||
Superior Living SDN. BHD. [Member] | March 31, 2020 [Member] | ||||
TAXES | 10 – TAXES Income Tax Agape Superior Living Sdn Bhd and Agape S.E.A. are governed by the income tax laws of Malaysia and the income tax provision in respect of operations in Malaysia is calculated at the applicable tax rates on the taxable income for the periods based on existing legislation, interpretations and practices in respect thereof. Under the Income Tax Act of Malaysia, enterprises that incorporated in Malaysia are usually subject to a unified 24% The tax rate for small and medium sized companies (generally companies incorporated in Malaysia with paid-in capital of RM 2,500,000 or less) is 17% for the first RM 600,000 150,000 500,000 125,000 Tax savings amounted to $ 9,971 0 Significant components of the provision (benefit) for income taxes are as follows: SCHEDULE OF COMPONENTS OF PROVISION (BENEFIT) FOR INCOME TAXES For the Three Months Ended For the Three Months Ended Current $ - $ - Deferred 50,833 (57,232 ) Provision (benefit) for income taxes $ 50,833 $ (57,232 ) The following table sets forth the significant components of the aggregate deferred tax assets and liabilities of the Company within Malaysia tax jurisdiction as of: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES As of March 31, As of December 31, 2020 2019 Deferred tax assets: Net operating loss carry forwards $ 196,494 $ 260,479 Deferred tax liabilities: Deprecation (24,244 ) (25,682 ) Deferred tax assets, net $ 172,250 $ 234,797 As of March 31, 2020, the Company has a net operating loss (“NOL”) of approximately $ 0.9 The NOL will expire in 2026 The following table contains the detail of prepaid taxes: SUMMARY OF PREPAID TAXES As of March 31, 2020 As of December 31, 2019 Prepaid income taxes $ 1,198,475 $ 1,173,122 Prepaid GST taxes 8,346 8,841 Total $ 1,206,821 $ 1,181,963 Uncertain tax positions The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of March 31, 2020 and December 31, 2019, the Company did not have any significant unrecognized uncertain tax positions. The Company did not incurred interest and penalties tax for the three months ended March 31, 2020 and 2019. | |||
Superior Living SDN. BHD. [Member] | December 31, 2019 [Member] | ||||
TAXES | 10 - TAXES Income Tax Agape Superior Living Sdn Bhd and Agape S.E.A. are governed by the income tax laws of the Malaysia and the income tax provision in respect to operations in the Malaysia is calculated at the applicable tax rates on the taxable income for the periods based on existing legislation, interpretations and practices in respect thereof. Under the Income Tax Act of the Malaysia, enterprises that incorporated in Malaysia are usually subject to a unified 24 The tax rate for small and medium sized companies (generally companies incorporated in Malaysia with paid-in capital of RM 2,500,000 or less and that are not part of a group containing a company exceeding this capitalization threshold) is 17% and 18% for the first RM 500,000 (or approximately $125,000) income for the years ended December 31, 2019 and 2018, respectively, with the remaining balance being taxed at the 24% rate. Tax savings amounted to $ 0 7,443 Significant components of the provision (benefit) for income taxes are as follows: SCHEDULE OF COMPONENTS OF PROVISION (BENEFIT) FOR INCOME TAXES For the year ended For the year ended Current $ (61,402 ) $ 580,734 Deferred (250,822 ) 16,814 Provision (benefit) for income taxes $ (312,224 ) $ 597,548 The following table reconciles the statutory rates to the Company’s effective tax rate: SCHEDULE OF EFFECTIVE INCOME TAX RATE For the year ended December 31, 2019 For the year ended December 31, 2018 Statutory rate 24.0 % 24.0 % Preferential tax rate reduction (0.8 )% (0.3 )% Permanent difference (0.4 )% (0.5 )% Effective tax rate 22.8 % 23.2 % The following table sets forth the significant components of the aggregate deferred tax assets and liabilities of the Company within Malaysia tax jurisdiction as of: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES As of As of December 31, 2019 December 31, 2018 Deferred tax assets: Net operating loss carry forwards $ 260,479 $ - Deferred tax liabilities: Deprecation (25,682 ) (18,901 ) Deferred tax assets (liabilities), net $ 234,797 $ (18,901 ) As of December 31, 2019, the company has a net operating loss (“NOL”) of approximately $ 1.1 The NOL will expire in 2026. The following table contains the detail of prepaid taxes: SUMMARY OF PREPAID TAXES December 31, 2019 December 31, 2018 Prepaid income taxes $ 1,173,122 $ 158,002 Prepaid GST taxes 8,841 30,196 Total $ 1,181,963 $ 188,198 Uncertain Tax Positions The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of December 31, 2019 and 2018, the Company did not have any significant unrecognized uncertain tax positions. The Company did not incurred interest and penalties tax for the years ended December 31, 2019 and 2018. |
CONCENTRATION OF RISK
CONCENTRATION OF RISK | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CONCENTRATION OF RISK | 17. CONCENTRATIONS OF RISKS (a) Major customers For the three months ended June 30, 2021 and 2020, no customer accounted for 10 10 There are no account receivable balance as of June 30, 2021. As of December 31, 2020, receivables from a third-party e-commerce company accounted for approximately 100.0 (b) Major vendors For the three and six months ended June 30, 2021, one vendor accounted for 100.0 100.0 There are no accounts payable balance as of June 30, 2021 and December 31, 2020. (c) Commission Expenses to Sales Distributors and Stockists For the three months ended June 30, 2021, one sales distributor accounted for 21.9% 16.2% 10.0% (d) Credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash. As of June 30, 2021 and December 31, 2020, $ 1,215,004 1,112,147 776,485 563,788 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. (e) 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. AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) | 17. CONCENTRATIONS OF RISKS (a) Major customers For the year ended December 31, 2020, no customer accounted for 10 98.3 100.0 As of December 31, 2020, receivables from a third-party e-commerce company accounted for approximately 100.0 100.0 (b) Major vendors For the year ended December 31, 2020, two vendors accounted for approximately 74.1 25.9 23,330 0.01 74.1 60.1 39.9 59 41 There are no accounts payable balance as of December 31, 2020. As of December 31, 2019, one vendor accounted for 100 (c) Commission Expenses to Sales Distributors and Stockists For the year ended December 31, 2020, no sales distributor accounted for 10 (d) Credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash. As of December 31, 2020, and 2019, $ 1,112,147 238,937 563,788 0 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. (e) 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. | ||
Superior Living SDN. BHD. [Member] | March 31, 2020 [Member] | ||||
CONCENTRATION OF RISK | 11 – CONCENTRATION OF RISK (a) Major customers For the three months ended March 31, 2020 and 2019, no major customer accounted for 10% or more of the company’s total sales. (b) Major vendors For the three ended March 31, 2020, one vendor accounted for 97.9% 97.0 As of March 31, 2020 and December 31, 2019, one related party vendor accounted for 100% (c) Commission Expenses to Sales Distributors and Stockists For the three months ended March 31, 2020, one sales distributor accounted for approximately 13.5% 10% (d) Credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash. As of March 31, 2020 and December 31, 2019, $ 1,156,543 858,592 983,512 651,418 250,000 62,000 (e) 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 converted to US$ on that date. The exchange rate could fluctuate depending on changes in political and economic environments without notice. | |||
Superior Living SDN. BHD. [Member] | December 31, 2019 [Member] | ||||
CONCENTRATION OF RISK | 11 - CONCENTRATION OF RISK (a) Major Customers For the year ended December 31, 2019 and 2018, no major customer accounted for 10 (b) Major Vendors For the years ended December 31, 2019 and 2018, one related party vendor accounted for approximately 99.7 83.5 As of December 31, 2019, one related party vendor accounted for 100 (c) Commission Expenses to Sales Distributors and Stockists For the year ended December 31, 2019, one sales distributor accounted for approximately 16.2 14.9 (d) Credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash. As of December 31, 2019 and 2018, $ 858,592 1,249,141 651,418 1,111,897 250,000 62,000 (e) 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. |
SHAREHOLDERS_ EQUITY
SHAREHOLDERS’ EQUITY | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SHAREHOLDERS’ EQUITY | 15. STOCKHOLDERS’ EQUITY Preferred stock As of June 30, 2021 and December 31, 2020, there were 200,000,000 none Common stock As of June 30, 2021 and December 31, 2020, there were 1,000,000,000 376,452,047 In May 2020, the Company issued 162,694 In June 2020, ASL made certain adjustments to its March 31, 2020 financial statements. As a result, the net assets carrying value increased by $ 90,043 13,853 13,853 There were no Non-controlling interest As of June 30, 2021 and for the three and six months ended June 30, 2021, no material transactions of non-controlling interest occurred from the operating results from ASL as the Company holds approximately 99.99 0 | 15. STOCKHOLDERS’ EQUITY Preferred stock As of December 31, 2020, and 2019, there were 200,000,000 none Common stock As of December 31, 2020, and 2019, there were 1,000,000,000 376,452,047 376,275,500 In May 2020, the Company issued 162,694 In June 2020, ASL made certain adjustments to its March 31, 2020 financial statements. As a result, the net assets carrying value increased by $ 90,043 13,853 13,853 There were no Non-controlling interest As of December 31, 2020, and for the year ended December 31, 2020, no material transactions of non-controlling interest occurred from the operating results from ASL as the Company holds approximately 99.99 0 | |
Superior Living SDN. BHD. [Member] | December 31, 2019 [Member] | |||
SHAREHOLDERS’ EQUITY | 12 - SHAREHOLDERS’ EQUITY Dividends During the year ended December 31, 2018, the directors of the Company declared and paid $ 3,292,466 13,210,000 Capital Contributions On December 16, 2019, Dato Sri How, the CEO and director of the Company, agreed to treat the $ 1,977,271 8,090,598 8,090,598 1.00 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Basis of Presentation | Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), and include all normal and recurring adjustments that management of the Company considers necessary for a fair presentation of its financial position and operation results. Interim results are not necessarily indicative of results to be expected for any other interim period or for the full year. The information included in this Form 10-Q should be read in conjunction with information included in the Company’s annual report on Form 10-K for the period ended December 31, 2020, filed with the Securities and Exchange Commission on March 31, 2021. | 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”), and include all normal and recurring adjustments that management of the Company considers necessary for a fair presentation of its financial position and operation results. AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) | ||
Principles of Consolidation | Principles of consolidation The unaudited condensed consolidated financial statements include the financial statements of the Company, its subsidiaries and its VIE over which the Company exercises control and, where applicable, entities for which the Company has a controlling financial interest or is the primary beneficiary. All transactions and balances among the Company, its subsidiaries and its VIE 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. A VIE is an entity that has either a total equity investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support, or whose equity investors lack the characteristics of a controlling financial interest, such as through voting rights, right to receive the expected residual returns of the entity or obligation to absorb the expected losses of the entity. The variable interest holder, if any, that has a controlling financial interest in a VIE is deemed to be the primary beneficiary and must consolidate the VIE. | Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries and its VIE over which the Company exercises control and, where applicable, entities for which the Company has a controlling financial interest or is the primary beneficiary. All transactions and balances among the Company, its subsidiaries and its VIE 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. A VIE is an entity that has either a total equity investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support, or whose equity investors lack the characteristics of a controlling financial interest, such as through voting rights, right to receive the expected residual returns of the entity or obligation to absorb the expected losses of the entity. The variable interest holder, if any, that has a controlling financial interest in a VIE is deemed to be the primary beneficiary and must consolidate the VIE. | ||
Use of Estimates and Assumptions | Use of estimates The preparation of unaudited condensed 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 unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s unaudited condensed consolidated financial statements include allowance for doubtful accounts, allowance for inventories obsolescence, useful lives of property and equipment, useful lives of intangible assets, impairment of long-lived assets, allowance for deferred tax assets, operating right-of-use assets, operating lease liabilities and uncertain tax position and impairment of investment in non-marketable securities. Actual results could differ from these 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 inventories obsolescence, useful lives of property and equipment, useful lives of intangible assets, impairment of long-lived assets, allowance for deferred tax assets, operating right-of-use assets, operating lease liabilities and uncertain tax position and impairment of investment in non-marketable securities. Actual results could differ from these estimates. | ||
Cash | 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. | 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 and accounts receivable – related party | Accounts receivable Accounts receivable are recorded at the invoiced amount less an allowance for any uncollectible accounts and do not bear interest, which are due on credit term. Accounts receivable also include money due from a third-party e-commerce platform acting as a collection agent for the Company on the sales through their platform. 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 June 30, 2021 and December 31, 2020, no | Accounts receivable and accounts receivable – related party Accounts receivable and 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 credit term. Accounts receivable also include money due from a third-party e-commerce platform acting as a collection agent for the Company on the sales through their platform. 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 December 31, 2020, and 2019, no AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) | ||
Inventories | Inventories Inventories consist of finished goods and are stated at the lower of cost or net realizable value using the first-in first-out method. Management reviews inventory on hand for estimated obsolescence or unmarketable items, as compared to future demand requirements and the shelf life of the various products. Based on the review, the Company records inventory write-downs, when necessary, when costs exceed expected net realizable value. For the three months ended June 30, 2021 and 2020, the Company didn’t recognize any inventory write-downs. For the six months ended June 30, 2021 and 2020, the Company recognized inventory write-downs of $ 36,636 0 | Inventories Inventories consist of finished goods and are stated at the lower of cost or net realizable value using the first-in first-out method. Management reviews inventory on hand for estimated obsolescence or unmarketable items, as compared to future demand requirements and the shelf life of the various products. Based on the review, the Company records inventory write-downs, when necessary, when costs exceed expected net realizable value. As of December 31, 2020, and 2019, there are no | ||
Prepaid Taxes | Prepaid taxes Prepaid taxes include (i) prepaid income taxes that will either be refundable or utilized to offset future income tax; and (ii) goods and service tax (“GST”) to be refundable. | Prepaid taxes Prepaid taxes include (i) prepaid income taxes that will either be refundable or utilized to offset future income taxes; and (ii) goods and service tax (“GST”) that is refundable. | ||
Prepayments and deposits | Prepayments and deposits, net Prepayments and deposits are mainly 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. | Prepayments and deposits Prepayments and deposits are mainly 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. As of December 31, 2020, and 2019, there is no | ||
Property and Equipment, Net | Property and equipment, net Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets with no residual value. The estimated useful lives are as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT Useful Life Computer and office equipment 5 7 Furniture & fixtures 6 7 Leasehold improvements Lease Term Vehicle 5 The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the unaudited condensed consolidated statements of income and comprehensive income. Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives. | Property and equipment, net Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets with no residual value. The estimated useful lives are as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT Useful Life Computer and office equipment 5 7 Furniture & fixtures 6 7 Leasehold improvements Lease Term Vehicle 5 The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the consolidated statements of income and comprehensive income. Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives. AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) | ||
Intangible Assets, Net | Intangible assets, net Intangible assets, net, are stated at cost, less accumulated amortization. Amortization expense is recognized on the straight-line basis over the estimated useful lives of the assets as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF INTANGIBLE ASSETS, NET Classification Useful Life Computer software 5 | Intangible assets, net Intangible assets, net, are stated at cost, less accumulated amortization. Amortization expense is recognized on the straight-line basis over the estimated useful lives of the assets as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF INTANGIBLE ASSETS, NET Classification Useful Life Computer software 5 | ||
Impairment for Long-Lived Assets | Impairment for long-lived assets Long-lived assets, including property and equipment, and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. As of June 30, 2021 and December 31, 2020, no | Impairment for long-lived assets Long-lived assets, including property and equipment, and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. As of December 31, 2020 and 2019, no | ||
Deferred offering costs | Deferred offering costs Deferred offering costs represents costs associated with the Company’s current offering which will be netted against the proceeds from the Company’s current offering. | Deferred offering costs Deferred offering costs represents costs associated with the Company’s current offering which will be netted against the proceeds from the Company’s current offering. | ||
Investment in marketable equity securities | Investment in marketable equity securities The Company follows the provisions of ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities | 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 | Investment in non-marketable equity securities The Company follows the provisions of 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. | 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. AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) 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. | ||
Customer Deposits | Customer deposits Customer deposits represent amounts advanced by customers on product orders and discounted value of unapplied coupons. Customer deposits are reduced when the related sale is recognized in accordance with the Company’s revenue recognition policy. | Customer deposits Customer deposits represent amounts advanced by customers on product orders and discounted value of unapplied coupons. Customer deposits are reduced when the related sale is recognized in accordance with the Company’s revenue recognition policy. | ||
Revenue Recognition | Revenue recognition 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. AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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. Sales of Health and Wellness products - Performance obligations satisfied at a point in time 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. The revenue is recorded net of estimated discounts and return allowances. Products are given 60 days for returns or exchanges from the date of purchase. Historically, there were insignificant sales returns. The Company also sells coupons to its customers for cash at a discounted price of the value of the coupons. Customers can apply the value of the coupons for a reduction in the transaction price paid by the customer are recorded as a reduction of sales. The cash proceeds resulted from the sale of coupons are recognized as customer deposits until the coupons to be applied as a reduction of the health and wellness products transaction price upon such sales transactions occurred. The Company’s coupons have a validity period of six months. If the Company’s customers did not utilize the coupons after six months, the Company would recognize the forfeiture of the originated sales value of the coupons as net revenues. For the three months ended June 30, 2021 and 2020, the Company recognized $ 4,115 61,368 11,226 61,368 As of June 30, 2021, the Company had contracts for the sales of health and wellness products amounting to $ 68,550 AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Disaggregated information of revenues by products are as follows: SCHEDULE OF DIS-AGGREGATED INFORMATION OF REVENUES For the three months ended For the six months ended June 30, June 30, 2021 2020 2021 2020 Survivor Select $ 24,415 $ 35,994 $ 37,641 $ 35,994 Energized Mineral Concentrate 8,291 22,606 52,183 22,606 Ionized Cal-Mag 18,485 611,160 40,298 611,160 Omega Blend 89,066 162,543 185,361 162,543 Beta Maxx 55,943 11,434 89,800 11,434 Vege-Fruit Fiber - 6,106 - 6,106 Iron 8,431 - 16,715 - Young Formula 14,458 349,738 25,901 349,738 Organic Youth Care Cleansing Bar 2,990 28,805 2,990 28,805 Mitogize 70,148 4,711 106,843 4,711 Lipomask 4,279 8,420 8,401 8,420 Hyaluronic Acid Serum 1,362 55,721 3,353 55,721 Mousse Facial Cleanser 3,042 3,127 7,660 3,127 Trim+ 2,223 223,497 22,674 223,497 Total revenues $ 303,133 $ 1,523,862 $ 599,820 $ 1,523,862 Sales of Health and Wellness services - Performance obligations satisfied at a point in time The Company carries out its Wellness program, where the Company’s products are bundled with health screening test and a health camp program. The health screening test and the health camp programs are considered as separate performance obligations. The promises to deliver the health screening test report and the attendance at the health camp are separately identifiable, which are evidenced by the fact that the Company provides separate services of delivering the health screening test report and allowing admission of the customers to attend the health camp. The Company derives its revenues from sales contracts with its customers with revenues being recognized when the test reports are completed and delivered to its customers during the consultation section in person. The Company also separately derives its revenues from sales contracts with its customers with revenues being recognized when the health camp program was completed in the final day of the health camp. For the three months ended June 30, 2021 and 2020, revenues from health and wellness services were $ 653 0 5,746 0 | 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. AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) 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 substantial 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. Products are given 60 days for returns or exchanges from the date of purchase. Historically, there were insignificant sales returns. The Company also sells coupons to its customers for cash at a discounted price of the value of the coupons. Customers can apply the value of the coupons for a reduction in the transaction price paid by the customer are recorded as a reduction of sales. The cash proceeds resulted from the sale of coupons are recognized as customer deposits until the coupons to be applied as a reduction of the health and wellness products transaction price upon such sales transactions occurred. The Company’s coupons have a validity period of six months. If the Company’s customers did not utilize the coupons after six months, the Company would recognize the forfeiture of the originated sales value of the coupons as net revenues. For the years ended December 31, 2020 and 2019, the Company recognized $ 170,431 and $ 0 (unaudited) as forfeited coupon income. The Company did not earn any forfeited coupon income for the six months ended December 31, 2019. As of December 31, 2020, the Company had contracts for the sales of health and wellness products amounting to $ 116,541 AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) Disaggregated information of revenues by products are as follows: SCHEDULE OF DIS-AGGREGATED INFORMATION OF REVENUES For the years ended For the six months ended December 31, December 31, 2020 2019 2019 (Unaudited) Survivor Select $ 149,897 $ - $ - Energized Mineral Concentrate 81,481 238,687 100,270 Ionized Cal-Mag 908,964 55,718 - Omega Blend 495,567 137,752 68,927 BetaMaxx 156,550 191,246 67,789 Vege Fruit Fiber 1,755 - - Iron 133,389 - - Young Formula 653,631 117,453 - Organic Youth Care Cleansing Bar 43,127 34,917 17,206 Mitogize 162,801 - - No. 1 MED 46,713 140,733 - Energetique 253,396 174,808 175,170 Trim+ 365,350 198,817 - Total revenues $ 3,452,621 $ 1,290,131 $ 429,362 Sales of Health and Wellness services - Performance obligations satisfied at a point in time The Company carries out its Wellness program, where the Company’s products are bundled with health screening test and a health camp program. The health screening test and the health camp programs are considered as separate performance obligations. The promises to deliver the health screening test report and the attendance at the health camp are separately identifiable, which are evidenced by the fact that the Company provides separate services of delivering the health screening test report and allowing admission of the customers to attend the health camp. The Company derives its revenues from sales contracts with its customers with revenues being recognized when the test reports are completed and delivered to its customers. The Company also separately derives its revenues from sales contracts with its customers with revenues being recognized when the health camp program was completed in the final day of the health camp. For the year ended December 31, 2020, revenues from health and wellness services are immaterial to the Company’s consolidated statements of operations and comprehensive income (loss). The Company did not earn any revenues from health and wellness services for the year ended December 31, 2019 and for the six months ended December 31, 2019. | ||
Cost of Revenues | Cost of revenue Cost of revenue includes freight-in, the purchase cost of manufactured goods for sale to customers, and inventory write-downs. Cost of revenue amounted to $ 35,623 471,554 113,214 36,636 471,554 | Cost of revenue Cost of revenue includes freight-in and the purchase cost of manufactured goods for sale to customers. AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) | ||
Shipping and Handling | Shipping and handling Shipping and handling charges amounted to $ 2,990 2,555 5,272 2,555 | Shipping and handling Shipping and handling charges amounted to $ 9,315 0 no | ||
Advertising Costs | Advertising costs Advertising costs amounted to $ 8,721 2,882 16,658 2,882 | Advertising costs Advertising costs amounted to $ 14,339 0 no | ||
Commission expenses | Commission expenses Commission expenses are the Company’s most significant expenses. As with all companies in the network marketing industry, the Company’s sales channel is external to the Company. The Company’s “external sales force” is stratified into two levels based on priority recruitment. First, there are sales distributors. Second, all members recruited by a sales distributor, directly or indirectly, are referred to as “sales network members”. The Company pays commission to every sales distributor based on purchases made by its sales network members which includes the independent direct sales members. Top performing distributors with their own physical stores may also become stockists of the Company, whereby they enjoy benefits such as maintaining a certain amount of the Company’s inventory on their store premises. The stockists shall account to the Company for all products sales from their store premises as monitored through the Company’s centralized stock tracking system. The Company pays a separate commission to stockists based on revenue generated from the stockists’ physical stores. Commission expenses amounted to $ 92,774 382,498 181,213 382,498 | Commission expenses Commission expenses are the Company’s most significant expenses. As with all companies in the network marketing industry, the Company’s sales channel is external to the Company. The Company’s “external sales force” is stratified into two levels based on priority recruitment. First, there are sales distributors. Second, all members recruited by a sales distributor, directly or indirectly, are referred to as “sales network members”. The Company pays commission to every sales distributor based on purchases made by its sales network members which includes the independent direct sales members. Top performing distributors with their own physical stores may also become stockists of the Company, whereby they enjoy benefits such as maintaining a certain amount of the Company’s inventory on their store premises. The stockists shall account to the Company for all products sales from their store premises as monitored through the Company’s centralized stock tracking system. The Company pays a separate commission to stockists based on revenue generated from the stockists’ physical stores. Commission expenses amounted to $ 830,659 0 no | ||
Defined Contribution Plan | Defined contribution plan The full-time employees of the Company are entitled to the government mandated defined contribution plan. The Company is required to accrue and pay for these benefits based on certain percentages of the employees’ respective salaries, subject to certain ceilings, in accordance with the relevant government regulations, and make cash contributions to the government mandated defined contribution plan. Total expenses for the plans were $ 27,067 23,710 53,034 23,710 AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The related contribution plans include: - Social Security Organization (“SOSCO”) – 1.75 4,000 - Employees Provident Fund (“EPF”) – 12 - Employment Insurance System (“EIS”) – 0.2 - Human Resource Development Fund (“HRDF”) – 1 | Defined contribution plan The full-time employees of the Company are entitled to the government mandated defined contribution plan. The Company is required to accrue and pay for these benefits based on certain percentages of the employees’ respective salaries, subject to certain ceilings, in accordance with the relevant government regulations, and make cash contributions to the government mandated defined contribution plan. Total expenses for the plans were $ 75,802 0 no The related contribution plans include: - Social Security Organization (“SOSCO”) – 1.75% 4,000 - Employees Provident Fund (“EPF”) – 12% - Employment Insurance System (“EIS”) – 0.2% 4,000 - Human Resource Development Fund (“HRDF”) – 1% AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) | ||
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% 395 No The Company conducts much of its business activities in Hong Kong and Malaysia and is subject to tax in each of their jurisdictions. As a result of its business activities, the Company will file separate tax returns that are subject to examination by the foreign tax authorities. | 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 taxes for the years ended December 31, 2020 and 2019. No penalties and interest incurred related to underpayment of income taxes for the six months ended December 31, 2019. The Company conducts much of its business activities in Hong Kong and Malaysia and is subject to tax in each of their jurisdictions. 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 shareholders’ equity but are excluded from net income (loss). 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. | 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. | 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. | |
Non-controlling interest | Non-controlling interest Non-controlling interest mainly consists of approximately 0.01% (3 ordinary shares out of 9,590,599 shares) of the equity interests of ASL held by three individuals. 0 | Non-controlling interest Non-controlling interest mainly consists of approximately 0.01% (2 ordinary shares out of 9,590,598 shares) of the equity interests of ASL held by two individuals. 0 AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) | ||
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 ordinary share outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of the potential ordinary 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 ordinary 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. For the three and six months ended June 30, 2021 and 2020, there were no | 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 ordinary share outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of the potential ordinary 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 ordinary 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. For the years ended December 31, 2020 and 2019, there were no no | ||
Foreign Currency 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 unaudited condensed consolidated statements of operations and comprehensive Income (Loss). 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$”) albeit its functional currency being the primary currency of the economic environment in which the entity operates, which is the Malaysian Ringgit (“MYR” or “RM”). The Company’s subsidiary in Hong Kong maintains its books and record in Hong Kong Dollars (“HK$”), similar to its functional currency. The Company’s subsidiary and VIE in Malaysia conducts its businesses and maintains its books and record in the local currency, Malaysian Ringgit (“MYR” or “RM”), as its functional currency. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “ Translation of Financial Statement” AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Translation of foreign currencies into US$1 have been made at the following exchange rates for the respective periods: SCHEDULE OF FOREIGN CURRENCIES TRANSLATION EXCHANGE RATES As of June 30, 2021 December 31, 2020 Period-end MYR : US$1 exchange rate 4.15 4.02 Period-end HKD : US$1 exchange rate 7.77 7.75 For the three months ended For the six months ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Period-average MYR : US$1 exchange rate 4.13 4.32 4.10 4.25 Period-average HKD : US$1 exchange rate 7.77 7.75 7.76 7.76 | Foreign currencies translation and transaction Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the Consolidated Statements of Operations and Comprehensive Income (Loss). The reporting currency of the Company is United States Dollars (“US$”) 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, which is the Malaysian Ringgit (“MYR” or “RM”). The Company’s subsidiary in Hong Kong maintains its books and record in Hong Kong Dollars (“HK$”), similar to its functional currency. The Company’s subsidiary and VIE in Malaysia conducts its businesses and maintains its books and record in the local currency, Malaysian Ringgit (“MYR” or “RM”), as its functional currency. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ 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: SCHEDULE OF FOREIGN CURRENCIES TRANSLATION EXCHANGE RATES As of December 31, 2020 December 31, 2019 Period-end MYR : US$1 exchange rate 4.02 4.09 Period-end HKD : US$1 exchange rate 7.75 7.79 AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) For the years ended For the six months ended December 31, December 31, 2020 2019 2019 Period-average MYR : US$1 exchange rate 4.20 4.14 4.16 Period-average HKD : US$1 exchange rate 7.76 7.84 7.83 | ||
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. | 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 unaudited condensed 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. | 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 | Leases Some of the Company’s leases include one or more options to renew, which is typically at the Company’s sole discretion. The Company regularly evaluates the renewal options, and, when it is reasonably certain of exercise, it will include the renewal period in its lease term. New lease modifications result in re-measurement of the right of use (“ROU”) assets and lease liabilities. Operating ROU assets and lease liabilities are recognized at the commencement date, based on the present value of lease payments over the lease term. Since the implicit rate for the Company’s leases is not readily determinable, the Company use its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow, on a collateralized basis, an amount equal to the lease payments, in a similar economic environment and over a similar term. Lease terms used to calculate the present value of lease payments generally do not include any options to extend, renew, or terminate the lease, as the Company does not have reasonable certainty at lease inception that these options will be exercised. The Company generally considers the economic life of its operating lease ROU assets to be comparable to the useful life of similar owned assets. The Company has elected the short-term lease exception, therefore operating lease ROU assets and liabilities do not include leases with a lease term of twelve months or less. Its leases generally do not provide a residual guarantee. The operating lease ROU asset also excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease term. The Company reviews the impairment of its ROU assets consistent with the approach applied for its other long-lived assets. The Company reviews the recoverability of its long-lived assets when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on its ability to recover the carrying value of the asset from the expected undiscounted future pre-tax cash flows of the related operations. The Company has elected to include the carrying amount of operating lease liabilities in any tested asset group and includes the associated operating lease payments in the undiscounted future pre-tax cash flows. | Leases Effective July 1, 2019, the Company adopted ASU 2016-02, “Leases” (Topic 842), and elected the practical expedients that does not require the Company 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. For lease terms of twelve months or fewer, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. The Company also 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 July 1, 2019, as the Company did not have any existing leases with a lease term in excess of twelve months on July 1, 2019. AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) Operating lease right-of-use (“ROU”) assets and lease liabilities are recognized at the adoption date of July 1, 2019 or the commencement date, whichever is earlier, based on the present value of lease payments over the lease term. Since the implicit rate for the Company’s leases is not readily determinable, the Company use its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow, on a collateralized basis, an amount equal to the lease payments, in a similar economic environment and over a similar term. Lease terms used to calculate the present value of lease payments generally do not include any options to extend, renew, or terminate the lease, as the Company does not have reasonable certainty at lease inception that these options will be exercised. The Company generally considers the economic life of its operating lease ROU assets to be comparable to the useful life of similar owned assets. The Company has elected the short-term lease exception, therefore operating lease ROU assets and liabilities do not include leases with a lease term of twelve months or less. Its leases generally do not provide a residual guarantee. The operating lease ROU asset also excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease term. The Company reviews the impairment of its ROU assets consistent with the approach applied for its other long-lived assets. The Company reviews the recoverability of its long-lived assets when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on its ability to recover the carrying value of the asset from the expected undiscounted future pre-tax cash flows of the related operations. The Company has elected to include the carrying amount of operating lease liabilities in any tested asset group and includes the associated operating lease payments in the undiscounted future pre-tax cash flows. | ||
Recently Issued 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 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. In November 2019, the FASB issued ASU No. 2019-10, which to update the effective date of ASU No. 2016-13 for private companies, not-for-profit organizations and certain smaller reporting companies applying for credit losses, leases, and hedging standard. The new effective date for these preparers is for fiscal years beginning after December 15, 2022. ASU 2019-05 is effective for the Company for annual and interim reporting periods beginning January 1, 2023 as the Company is qualified as a smaller reporting company. The Company is currently evaluating the impact ASU 2019-05 may have on its unaudited condensed consolidated financial statements. AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 adoption of this standard on January 1, 2021 did not have a material impact on its unaudited condensed consolidated financial statements. In October 2020, the FASB issued ASU 2020-08, “Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Costs”. The amendments in this Update represent changes to clarify the Codification. The amendments make the Codification easier to understand and easier to apply by eliminating inconsistencies and providing clarifications. ASU 2020-08 is effective for the Company for annual and interim reporting periods beginning January 1, 2021. Early application is not permitted. All entities should apply the amendments in this Update on a prospective basis as of the beginning of the period of adoption for existing or newly purchased callable debt securities. These amendments do not change the effective dates for Update 2017-08. The adoption of this standard on January 1, 2021 did not have a material impact on its unaudited condensed consolidated financial statements. In October 2020, the FASB issued ASU 2020-10, “Codification Improvements”. The amendments in this Update represent changes to clarify the Codification or correct unintended application of guidance that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The amendments in this Update affect a wide variety of Topics in the Codification and apply to all reporting entities within the scope of the affected accounting guidance. ASU 2020-10 is effective for annual periods beginning after December 15, 2020 for public business entities. Early application is permitted. The amendments in this Update should be applied retrospectively. The adoption of this standard on January 1, 2021 did not have a material impact on its unaudited condensed consolidated financial statements. | 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 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. In November 2019, the FASB issued ASU No. 2019-10, which to update the effective date of ASU No. 2016-13 for private companies, not-for-profit organizations and certain smaller reporting companies applying for credit losses, leases, and hedging standard. The new effective date for these preparers is for fiscal years beginning after December 15, 2022. ASU 2019-05 is effective for the Company for annual and interim reporting periods beginning January 1, 2023 as the Company is qualified as a smaller reporting company. The Company is currently evaluating the impact ASU 2019-05 may have on its consolidated financial statements. AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) 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 adoption of this standard on January 1, 2021 did not have a material impact on its consolidated financial statements. | ||
Change of year end | Change of year end On December 31, 2019, the Company changed its fiscal year end from June 30 to December 31. The consolidated financial statements consist of the unaudited financial data for the year ended December 31, 2019, which was derived from the six months audited financial statement ended December 31, 2019 and the interim financial statements for the six months ended June 30, 2019. | |||
Superior Living SDN. BHD. [Member] | ||||
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), and include all normal and recurring adjustments that management of the Company considers necessary for a fair presentation of its financial position and operation results. Interim results are not necessarily indicative of results to be expected for any other interim period or for the full year. Therefore, these statements should be read in conjunction with the Company’s audited financial statements as of and for the years ended December 31, 2019 and 2018. | 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”) pursuant to the rules and regulations of the SEC. | ||
Principles of Consolidation | Principles of Consolidation The unaudited condensed consolidated financial statements include the financial statements of the Company and its VIE. All transactions and balances between the Company and its subsidiaries have been eliminated upon consolidation. | Principles of Consolidation The consolidated financial statements include the financial statements of the Company and its VIE. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. | ||
Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of unaudited condensed 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 unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s unaudited condensed consolidated financial statements include allowance for doubtful accounts, allowance for inventories obsolescence, useful lives of property and equipment, useful lives of intangible assets, impairment of long-lived assets, and allowance for deferred tax assets and uncertain tax position. Actual results could differ from these estimates. | Use of Estimates and Assumptions 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 inventories obsolescence, useful lives of plant and equipment, impairment of long-lived assets, and allowance for deferred tax assets and uncertain tax position. Actual results could differ from these estimates. | ||
Cash | Cash Cash are carried at cost and represent cash on hand and deposits placed with banks or other financial institutions. | Cash Cash are carried at cost and represent cash on hand and deposits placed with banks or other financial institutions. | ||
Inventories | Inventories Inventories consist of finished goods and are stated at the lower of cost or net realizable value using the first-in first-out method. When appropriate, impairment to inventories are recorded to write down the cost of inventories to their net realizable value. | Inventories Inventories consist of finished goods and are stated at the lower of cost or net realizable value using the first-in first-out method. When appropriate, impairment to inventories are recorded to write down the cost of inventories to their net realizable value. | ||
Prepaid Taxes | Prepaid Taxes Prepaid taxes include (i) prepaid income taxes that will either be refundable or utilized to offset future income tax; and (ii) goods and service tax (“GST”) to be refundable. | Prepaid Taxes Prepaid taxes includes prepaid income taxes and goods and service tax (“GST”) to be refundable or utilized to offset future income tax or sales and service tax (“SST”) to be incurred. | ||
Property and Equipment, Net | Property and Equipment, Net Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets with no residual value. The estimated useful lives are as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT Useful Life Computer and office equipment 5 7 Furniture & fixtures 6 7 Leasehold improvements Lease Term Vehicle 5 The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the consolidated statements of income and comprehensive income. Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives. | Property and Equipment, Net Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets with no residual value. The estimated useful lives are as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT Useful Life Computer and office equipment 5 7 Furniture & fixtures 6 7 Leasehold improvements Lease Term Vehicle 5 The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the consolidated statements of income and comprehensive income. Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives. | ||
Intangible Assets, Net | Intangible Assets, Net Intangible assets, net, are stated at cost, less accumulated amortization. Amortization expense is recognized on the straight-line basis over the estimated useful lives of the assets as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF INTANGIBLE ASSETS Classification Useful Life Computer software 5 | Intangible Assets, Net Intangible assets, net, are stated at cost, less accumulated amortization. Amortization expense is recognized on the straight-line basis over the estimated useful lives of the assets as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF INTANGIBLE ASSETS Classification Useful Life Computer software 5 | ||
Impairment for Long-Lived Assets | Impairment for Long-Lived Assets Long-lived assets, including property and equipment, and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. As of March 31, 2020 and December 31, 2019, no | Impairment for Long-Lived Assets Long-lived assets, including property and equipment, and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. As of December 31, 2019 and 2018, no | ||
Customer Deposits | Customer Deposits Customer deposits represent amounts advanced by customers on product orders and discounted value of unapplied coupons. Customer deposits are reduced when the related sale is recognized in accordance with the Company’s revenue recognition policy. | Customer Deposits Customer deposits represent amounts advanced by customers on product orders and discounted value of the unapplied coupons. Customer deposits are reduced when the related sale is recognized in accordance with the Company’s revenue recognition policy. | ||
Revenue Recognition | Revenue Recognition The Company adopted Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers (ASC 606), on all periods presented. The Company recognizes revenue to depict the transfer of promised goods or services (that is, an asset) to customers in an amount that reflects the consideration to which the Company expects to receive in exchange for those goods or services. An asset is transferred when the customer obtains control of that asset. It also requires 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 Company uses 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 substantial collection. Sales of Health and wellness products - Performance obligations satisfied at a point in time 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. 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. Products are given 60 days for returns or exchanges from the date of purchase. Historically, there were insignificant sales returns. The Company also sells coupons to its customers for cash at a discounted price of the value of the coupons. Customers can apply the value of the coupons for a reduction in the transaction price paid by the customer are recorded as a reduction of sales. The cash proceeds resulted from the sale of coupons are recognized as customer deposits until the coupons to be applied as a reduction of the health and wellness products transaction price upon such sales transactions occurred. The Company’s coupons have a validity period of six months. If the Company’s customers did not utilized the coupons after six months, the Company would recognize the forfeiture of the originated sales value of the coupons as net revenues. For the three months ended March 31, 2020 and 2019, the Company recognized $ 25,836 0 As of March 31, 2020, the Company had contracts for the sales of health and wellness products amounting to $ 1,420,392 Disaggregated information of revenues by products are as follows: SCHEDULE OF DISAGGREGATED INFORMATION OF REVENUES For the Three Months Ended March 31, 2020 March 31, 2019 Survivor Select $ 150,120 $ 23,382 Energized Mineral Concentrate 133,529 111,899 Ionized Cal-Mag 39,353 13,912 Omega Blend 299,007 385,001 BetaMaxx 165,187 42,549 Vege Fruit Fiber 66,286 23,520 Iron 6,810 - Young Formula 30,093 213,300 Organic Youth Care Cleansing Bar 19,304 53,747 Mitogize 111,632 58,060 No. 1 MED 66,156 102,348 Energetique 139,604 - Trim+ 14,171 186,882 Total revenues $ 1,241,252 $ 1,214,600 | Revenue Recognition The Company adopted Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers (ASC 606), on all periods presented. The Company recognizes revenue to depict the transfer of promised goods or services (that is, an asset) to customers in an amount that reflects the consideration to which the Company expects to receive in exchange for those goods or services. An asset is transferred when the customer obtains control of that asset. It also requires 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 Company uses 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. Sales of Health and wellness products - Performance obligations satisfied at a point in time 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. 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. Products are given 60 days for returns or exchanges from the date of purchase. Historically, there were insignificant sales returns. The Company also sells coupons to its customers for cash at a discounted price of the value of the coupons. Customers can apply the value of the coupons for a reduction in the transaction price paid by the customer are recorded as a reduction of sales. The cash proceeds resulted from the sale of coupons are recognized as customer deposits until the coupons to be applied as a reduction of the health and wellness products transaction price upon such sales transactions occurred. The Company’s coupons have a validity period of six months. If the Company’s customers did not utilized the coupons after six months, the Company would recognize the forfeiture of the originated sales value of the coupons as net revenues. For the years ended December 31, 2019 and 2018, the Company recognized $ 46,304 0 As of December 31, 2019, the Company had contracts for the sales of health and wellness products amounting to $ 1,484,614 Disaggregated information of revenues by products are as follows: SCHEDULE OF DISAGGREGATED INFORMATION OF REVENUES For the years ended December 31, 2019 December 31, 2018 Survivor Select $ 243,075 $ 2,520,204 Energized Mineral Concentrate 599,642 3,004,479 Ionized Cal-Mag 94,535 1,116,437 Omega Blend 723,443 1,666,296 BetaMaxx 217,025 2,490,573 Vege Fruit Fiber 167,566 751,073 Iron - 71,790 Young Formula 394,767 1,766,914 Organic Youth Care Cleansing Bar 237,530 87,025 Mitogize 254,622 375,724 No. 1 MED 440,145 543,247 Trim+ 767,009 - Total revenues $ 4,139,359 $ 14,393,762 | ||
Cost of Revenues | Cost of Revenues Cost of revenue includes freight-in and the purchase cost of manufactured goods for sale to customers. | Cost of Revenues Cost of revenue includes freight-in and the purchase cost of manufactured goods for sale to customers. | ||
Shipping and Handling | Shipping and Handling Shipping and handling charges amounted to $ 931 6,276 | Shipping and Handling Shipping and handling charges amounted to $ 13,801 8,304 | ||
Advertising Costs | Advertising Costs Advertising costs amounted to $ 23,740 49,232 | Advertising Costs Advertising costs amounted to $ 267,543 26,110 | ||
Defined Contribution Plan | Defined Contribution Plan The full-time employees of the Company are entitled to the government mandated defined contribution plan. The Company is required to accrue and pay for these benefits based on certain percentages of the employees’ respective salaries, subject to certain ceilings, in accordance with the relevant government regulations, and make cash contributions to the government mandated defined contribution plan. Total expenses for the plans were $ 26,033 35,894 The related contribution plans include: - Social Security Organization (“SOSCO”) – 1.75% 4,000 - Employees Provident Fund (“EPF”) – 12% - Employment Insurance System (“EIS”) – 0.2% 4,000 - Human Resource Development Fund (“HRDF”) – 1% | Defined Contribution Plan The full-time employees of the Company are entitled to the government mandated defined contribution plan. The Company is required to accrue and pay for these benefits based on certain percentages of the employees’ respective salaries, subject to certain ceilings, in accordance with the relevant government regulations, and make cash contributions to the government mandated defined contribution plan. Total expenses for the plans were $ 129,669 92,022 The related contribution plans include: - Social Security Organization (“SOSCO”) – 1.75 4,000 - Employees Provident Fund (“EPF”) – 12 13 5,000 - Employment Insurance System (“EIS”) – 0.2 4,000 - Human Resource Development Fund (“HRDF”) – 1 | ||
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 unaudited condensed 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 | 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 for the years ended December 31, 2019 and 2018. The tax returns filed in 2017 to 2019 are subject to examination by any applicable 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 shareholders’ 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 ordinary share outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of the potential ordinary 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 ordinary 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. | 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 ordinary share outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of the potential ordinary 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 ordinary 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 Currency Translation and Transaction | Foreign Currency Translation and Transaction The reporting currency of the Company is the U.S. dollar. The Company in Malaysia conducts its businesses in the local currency, Ringgit Malaysia (RM), as its functional currency. Assets and liabilities are translated at the unified exchange rate as quoted by the Federal Reserve at the end of the period. The statement of income accounts are translated at the average translation rates and the equity accounts are translated at historical rates. Translation adjustments resulting from this process are included in accumulated other comprehensive income (loss). Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. Translation adjustments included in accumulated other comprehensive (loss) income amounted to $ (25,534) 75,637 4.33 4.09 1.00 4.21 4.08 1.00 | Foreign Currency Translation and Transaction The reporting currency of the Company is the U.S. dollar. The Company in Malaysia conducts its businesses in the local currency, Ringgit Malaysia (RM), as its functional currency. Assets and liabilities are translated at the unified exchange rate as quoted by the Federal Reserve at the end of the period. The statement of income accounts are translated at the average translation rates and the equity accounts are translated at historical rates. Translation adjustments resulting from this process are included in accumulated other comprehensive income (loss). Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. Translation adjustments included in accumulated other comprehensive income amounted to $ 75,637 81,108 4.09 4.13 1.00 The average translation rates applied to statement of income accounts for the years ended December 31, 2019 and 2018 were 4.14 RM and 4.03 RM to $1.00, respectively. Cash flows are also translated at average translation rates for the periods, therefore, amounts reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheet. | ||
Related Parties | Related Parties Parties, which can be a company 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. | Related Parties Parties, which can be a company 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. | ||
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. | 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. | ||
Recently Issued Accounting Pronouncements | Recently Issued 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 February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), to increase the transparency and comparability about leases among entities. The new guidance requires lessees to recognize a lease liability and a corresponding lease asset for virtually all lease contracts. It also requires additional disclosures about leasing arrangements. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018, and requires a modified retrospective approach to adoption. Early adoption is permitted. In September 2017, the FASB issued ASU No. 2017-13, which to clarify effective dates that public business entities and other entities were required to adopt ASC Topic 842 for annual reporting. ASU No. 2017-13 also amended that all components of a leveraged lease be recalculated from inception of the lease based on the revised after tax cash flows arising from the change in the tax law, including revised tax rates. The difference between the amounts originally recorded and the recalculated amounts must be included in income of the year in which the tax law is enacted. In November 2019, the FASB issued ASU No. 2019-10, which to update the effective date of ASU No. 2016-02 for private companies, not-for-profit organizations and certain smaller reporting companies applying for credit losses, leases, and hedging standard. The new effective date for these companies is for fiscal years beginning after December 15, 2020. ASU 2016-02 is effective for the Company for annual and interim reporting periods beginning January 1, 2021 as the Company is qualified as a smaller reporting company. The Company is expected to record the operating lease right-of-use assets and lease liabilities upon adoption. 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 unaudited condensed 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 adoption of this ASU on January 1, 2020 did not have a material effect on the Company’s unaudited condensed 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. In November 2019, the FASB issued ASU No. 2019-10, which to update the effective date of ASU No. 2016-13 for private companies, not-for-profit organizations and certain smaller reporting companies applying for credit losses, leases, and hedging standard. The new effective date for these preparers is for fiscal years beginning after December 15, 2022. ASU 2019-05 is effective for the Company for annual and interim reporting periods beginning January 1, 2023 as the Company is qualified as a smaller reporting company. The Company is currently evaluating the impact ASU 2019-05 may have on its unaudited condensed 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 unaudited condensed consolidated financial statements. | Recently Issued 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 February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), to increase the transparency and comparability about leases among entities. The new guidance requires lessees to recognize a lease liability and a corresponding lease asset for virtually all lease contracts. It also requires additional disclosures about leasing arrangements. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018, and requires a modified retrospective approach to adoption. Early adoption is permitted. In September 2017, the FASB issued ASU No. 2017-13, which to clarify effective dates that public business entities and other entities were required to adopt ASC Topic 842 for annual reporting. ASU No. 2017-13 also amended that all components of a leveraged lease be recalculated from inception of the lease based on the revised after tax cash flows arising from the change in the tax law, including revised tax rates. The difference between the amounts originally recorded and the recalculated amounts must be included in income of the year in which the tax law is enacted. In November 2019, the FASB issued ASU No. 2019-10, which to update the effective date of ASU No. 2016-02 for private companies, not-for-profit organizations and certain smaller reporting companies applying for credit losses, leases, and hedging standard. The new effective date for these companies is for fiscal years beginning after December 15, 2020. ASU 2016-02 is effective for the Company for annual and interim reporting periods beginning January 1, 2021 as the Company is qualified as a smaller reporting company. The Company is expected to record the operating lease right-of-use assets and lease liabilities upon adoption. 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 adoption of this ASU on January 1, 2020 did not have a material effect on the Company’s 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. In November 2019, the FASB issued ASU No. 2019-10, which to update the effective date of ASU No. 2016-13 for private companies, not-for-profit organizations and certain smaller reporting companies applying for credit losses, leases, and hedging standard. The new effective date for these preparers is for fiscal years beginning after December 15, 2022. ASU 2019-05 is effective for the Company for annual and interim reporting periods beginning January 1, 2023 as the Company is qualified as a smaller reporting company. The Company is currently evaluating the impact ASU 2019-05 may 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. | ||
Fair Value Measurement | Fair Value Measurement 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. | Fair Value Measurement 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. | ||
Prepayments and Other Assets | Prepayments and Other Assets Prepayments and other assets are cash deposited or advanced to outside vendors and service providers for future inventory purchases and future services to be provided. This amount is refundable and bears no interest. For any prepayments determined by management that such advances will not be utilized, collected or refunded, the Company will recognize an allowance account to reserve such balances. Management reviews its advances to suppliers 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. As of March 31, 2020 and December 31, 2019, there is no | Prepayments and Other Assets Prepayments and other assets are cash deposited or advanced to outside vendors and service providers for future inventory purchases and future services to be provided. This amount is refundable and bears no interest. For any prepayments determined by management that such advances will not be utilized, collected or refunded, the Company will recognize an allowance account to reserve such balances. Management reviews its advances to suppliers 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. As of December 31, 2019 and 2018, there is no | ||
Commission Expenses | Commission Expenses Commission expenses are the Company’s most significant expenses. As with all companies in the network marketing industry, the Company’s sales channel is external to the Company. The Company’s “external sales force” is stratified into two levels based on priority recruitment. First, there are sales distributors. Second, all members recruited by a sales distributor, directly or indirectly, are referred to as “sales network members”. The Company pays commission to every sales distributor based on purchases made by its sales network members which includes the independent direct sales members. Top performing distributors with their own physical stores may also become stockists of the Company, whereby they enjoy benefits such as maintaining a certain amount of the Company’s inventory on their store premises. The stockists shall account to the Company for all products sales from their store premises as monitored through the Company’s centralized stock tracking system. The Company pays a separate commission to stockists based on revenue generated from the stockists’ physical stores. Commission expenses amounted to $ 411,266 601,205 | Commission Expenses Commission expenses are the Company’s most significant expenses. As with all companies in the network marketing industry, the Company’s sales channel is external to the Company. The Company’s “external sales force” is stratified into two levels based on priority recruitment. First, there are sales distributors. Second, all members recruited by a sales distributor, directly or indirectly, are referred to as “sales network members”. The Company pays commission to every sales distributor based on purchases made by its sales network members which includes the independent direct sales members. The Company also pays commissions to “stockists” who act as sales agents. Stockists only entitle to a straight commission and no sales network members working under them. Commission expenses amounted to $ 1,611,172 7,045,419 | ||
Sales and Service Tax (“SST”) and Goods and Services Tax (“GST”) | Sales and Service Tax (“SST”) and Goods and Services Tax (“GST”) There was a change in tax regulations affecting sales tax of the Company during the reporting periods. The Goods and Services Tax (“GST”) was enforced from April 1, 2015 to June 1, 2018, where goods and services were subjected to a standard GST rate of 6%. The Malaysian tax authorities reverted to the Sales and Service Tax (“SST”) on September 1, 2018. The standard SST rates on products and services are 10% and 6%, respectively. |
ORGANIZATION AND BUSINESS BAC_2
ORGANIZATION AND BUSINESS BACKGROUND (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
SCHEDULE OF SUBSIDIARIES AND ASSOCIATES | Details of the Company’s subsidiaries: SCHEDULE OF SUBSIDIARIES AND ASSOCIATES 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$1 each Wholesaling of health and wellness products; and health solution advisory services 100 % 3. Agape Superior Living Sdn. Bhd. Malaysia, 9,590,598 shares of ordinary share of RM1 each Health and wellness products and health solution advisory services via network marketing 99.99 % 4. Agape S.E.A. Sdn. Bhd. Malaysia, 2 shares of ordinary share of RM1 each VIE of Agape Superior Living Sdn. Bhd. VIE 5. Wellness ATP International Holdings Sdn, Bhd Malaysia, 100 shares of ordinary share of RM1 each The promotion of wellness and wellbeing lifestyle of the community by providing services that includes online editorials, programs, events and campaigns 100 % AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) | Details of the Company’s subsidiaries: SCHEDULE OF SUBSIDIARIES AND ASSOCIATES 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 Wholesaling of health and wellness products; and health solution advisory services 100% 3. Agape Superior Living Sdn. Bhd. Malaysia, 9,590,598 shares of ordinary share of RM1 each Health and wellness products and health solution advisory services via network marketing 99.99% 4. Agape S.E.A. Sdn. Bhd. Malaysia, 2 shares of ordinary share of RM1 each VIE of Agape Superior Living Sdn. Bhd. VIE 5. Wellness ATP International Holdings Sdn, Bhd Malaysia, 100 shares of ordinary share of RM1 each The promotion of wellness and wellbeing lifestyle of the community by providing services that includes online editorials, programs, events and campaigns 100% |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT | Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets with no residual value. The estimated useful lives are as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT Useful Life Computer and office equipment 5 7 Furniture & fixtures 6 7 Leasehold improvements Lease Term Vehicle 5 | Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets with no residual value. The estimated useful lives are as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT Useful Life Computer and office equipment 5 7 Furniture & fixtures 6 7 Leasehold improvements Lease Term Vehicle 5 | ||
SCHEDULE OF ESTIMATED USEFUL LIVES OF INTANGIBLE ASSETS | Intangible assets, net, are stated at cost, less accumulated amortization. Amortization expense is recognized on the straight-line basis over the estimated useful lives of the assets as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF INTANGIBLE ASSETS, NET Classification Useful Life Computer software 5 | Intangible assets, net, are stated at cost, less accumulated amortization. Amortization expense is recognized on the straight-line basis over the estimated useful lives of the assets as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF INTANGIBLE ASSETS, NET Classification Useful Life Computer software 5 | ||
SCHEDULE OF DIS-AGGREGATED INFORMATION OF REVENUES | Disaggregated information of revenues by products are as follows: SCHEDULE OF DIS-AGGREGATED INFORMATION OF REVENUES For the three months ended For the six months ended June 30, June 30, 2021 2020 2021 2020 Survivor Select $ 24,415 $ 35,994 $ 37,641 $ 35,994 Energized Mineral Concentrate 8,291 22,606 52,183 22,606 Ionized Cal-Mag 18,485 611,160 40,298 611,160 Omega Blend 89,066 162,543 185,361 162,543 Beta Maxx 55,943 11,434 89,800 11,434 Vege-Fruit Fiber - 6,106 - 6,106 Iron 8,431 - 16,715 - Young Formula 14,458 349,738 25,901 349,738 Organic Youth Care Cleansing Bar 2,990 28,805 2,990 28,805 Mitogize 70,148 4,711 106,843 4,711 Lipomask 4,279 8,420 8,401 8,420 Hyaluronic Acid Serum 1,362 55,721 3,353 55,721 Mousse Facial Cleanser 3,042 3,127 7,660 3,127 Trim+ 2,223 223,497 22,674 223,497 Total revenues $ 303,133 $ 1,523,862 $ 599,820 $ 1,523,862 | Disaggregated information of revenues by products are as follows: SCHEDULE OF DIS-AGGREGATED INFORMATION OF REVENUES For the years ended For the six months ended December 31, December 31, 2020 2019 2019 (Unaudited) Survivor Select $ 149,897 $ - $ - Energized Mineral Concentrate 81,481 238,687 100,270 Ionized Cal-Mag 908,964 55,718 - Omega Blend 495,567 137,752 68,927 BetaMaxx 156,550 191,246 67,789 Vege Fruit Fiber 1,755 - - Iron 133,389 - - Young Formula 653,631 117,453 - Organic Youth Care Cleansing Bar 43,127 34,917 17,206 Mitogize 162,801 - - No. 1 MED 46,713 140,733 - Energetique 253,396 174,808 175,170 Trim+ 365,350 198,817 - Total revenues $ 3,452,621 $ 1,290,131 $ 429,362 | ||
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: SCHEDULE OF FOREIGN CURRENCIES TRANSLATION EXCHANGE RATES As of June 30, 2021 December 31, 2020 Period-end MYR : US$1 exchange rate 4.15 4.02 Period-end HKD : US$1 exchange rate 7.77 7.75 For the three months ended For the six months ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Period-average MYR : US$1 exchange rate 4.13 4.32 4.10 4.25 Period-average HKD : US$1 exchange rate 7.77 7.75 7.76 7.76 | Translation of foreign currencies into US$1 have been made at the following exchange rates for the respective periods: SCHEDULE OF FOREIGN CURRENCIES TRANSLATION EXCHANGE RATES As of December 31, 2020 December 31, 2019 Period-end MYR : US$1 exchange rate 4.02 4.09 Period-end HKD : US$1 exchange rate 7.75 7.79 AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) For the years ended For the six months ended December 31, December 31, 2020 2019 2019 Period-average MYR : US$1 exchange rate 4.20 4.14 4.16 Period-average HKD : US$1 exchange rate 7.76 7.84 7.83 | ||
Superior Living SDN. BHD. [Member] | ||||
SCHEDULE OF ESTIMATED USEFUL LIVES OF INTANGIBLE ASSETS | Intangible assets, net, are stated at cost, less accumulated amortization. Amortization expense is recognized on the straight-line basis over the estimated useful lives of the assets as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF INTANGIBLE ASSETS Classification Useful Life Computer software 5 | Intangible assets, net, are stated at cost, less accumulated amortization. Amortization expense is recognized on the straight-line basis over the estimated useful lives of the assets as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF INTANGIBLE ASSETS Classification Useful Life Computer software 5 | ||
SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT | Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets with no residual value. The estimated useful lives are as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT Useful Life Computer and office equipment 5 7 Furniture & fixtures 6 7 Leasehold improvements Lease Term Vehicle 5 | Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets with no residual value. The estimated useful lives are as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT Useful Life Computer and office equipment 5 7 Furniture & fixtures 6 7 Leasehold improvements Lease Term Vehicle 5 | ||
SCHEDULE OF DISAGGREGATED INFORMATION OF REVENUES | Disaggregated information of revenues by products are as follows: SCHEDULE OF DISAGGREGATED INFORMATION OF REVENUES For the Three Months Ended March 31, 2020 March 31, 2019 Survivor Select $ 150,120 $ 23,382 Energized Mineral Concentrate 133,529 111,899 Ionized Cal-Mag 39,353 13,912 Omega Blend 299,007 385,001 BetaMaxx 165,187 42,549 Vege Fruit Fiber 66,286 23,520 Iron 6,810 - Young Formula 30,093 213,300 Organic Youth Care Cleansing Bar 19,304 53,747 Mitogize 111,632 58,060 No. 1 MED 66,156 102,348 Energetique 139,604 - Trim+ 14,171 186,882 Total revenues $ 1,241,252 $ 1,214,600 | Disaggregated information of revenues by products are as follows: SCHEDULE OF DISAGGREGATED INFORMATION OF REVENUES For the years ended December 31, 2019 December 31, 2018 Survivor Select $ 243,075 $ 2,520,204 Energized Mineral Concentrate 599,642 3,004,479 Ionized Cal-Mag 94,535 1,116,437 Omega Blend 723,443 1,666,296 BetaMaxx 217,025 2,490,573 Vege Fruit Fiber 167,566 751,073 Iron - 71,790 Young Formula 394,767 1,766,914 Organic Youth Care Cleansing Bar 237,530 87,025 Mitogize 254,622 375,724 No. 1 MED 440,145 543,247 Trim+ 767,009 - Total revenues $ 4,139,359 $ 14,393,762 |
VARIABLE INTEREST ENTITY (_VI_2
VARIABLE INTEREST ENTITY (“VIE”) (Tables) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SCHEDULE OF VARIABLE INTEREST ENTITY | The carrying amount of the VIE’s assets and liabilities were as follows: SCHEDULE OF VARIABLE INTEREST ENTITY June 30, 2021 December 31, 2020 Current assets $ 28,508 $ 48,717 Other assets 7,985 - Current liabilities (51,028 ) (53,573 ) Net deficit $ (14,535 ) $ (4,856 ) June 30, 2021 December 31, 2020 Current assets: Cash and cash equivalents $ 23,526 $ 37,387 Prepaid taxes 4,982 11,330 Total current assets 28,508 48,717 Other asset – Deferred tax asset 7,985 - Total assets $ 36,493 $ 48,717 Current liabilities: Accounts payable – intercompany $ 50,048 $ 51,669 Other payables and accrued liabilities 980 1,904 Total current liabilities 51,028 53,573 Net deficit $ (14,535 ) $ (4,856 ) The summarized operating results of the VIE’s are as follows: 1 2 3 4 For the three months ended For the six months ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Operating revenues $ $ 129,492 $ - $ 129,492 Gross profit $ $ 1,373 $ - $ 1,373 Loss from operations $ (5,019 ) $ (3,749 ) $ (11,967 ) $ (3,749 ) Net income (loss) $ 1,912 $ (18,139 ) $ (9,949 ) $ (18,139 ) | The carrying amount of the VIE’s assets and liabilities were as follows: SCHEDULE OF VARIABLE INTEREST ENTITY December 31, 2020 Current assets $ 48,717 Current liabilities (53,573 ) Net deficit $ (4,856 ) December 31, 2020 Current asset: Cash and cash equivalents $ 37,387 Prepaid taxes 11,330 Total current assets $ 48,717 Current liabilities: Other payables and accrued liabilities $ 1,904 Other payables – intercompany 51,669 Total current liabilities $ 53,573 AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 3. VARIABLE INTEREST ENTITY (“VIE”) (CONT’D) The summarized operating results of the VIE’s are as follows: For the Year Ended December 31, 2020 Operating revenues $ 346,907 Gross profit $ 4,442 Loss from operations $ (10,752 ) Net loss $ (24,014 ) | ||
Superior Living SDN. BHD. [Member] | ||||
SCHEDULE OF VARIABLE INTEREST ENTITY | The carrying amount of the VIE’s assets and liabilities were as follows: SCHEDULE OF VARIABLE INTEREST ENTITY March 31, 2020 December 31, 2019 Current assets $ 514,203 $ 572,469 Current liabilities (495,419 ) (547,627 ) Net assets $ 18,784 $ 24,842 March 31, 2020 December 31, 2019 Current liabilities: Accounts payable $ 491,628 $ 520,786 Other payables and accrued liabilities 3,408 4,896 Other payables - related party 346 993 Customer deposits - 20,912 Taxes payable 37 40 Total current liabilities $ 495,419 $ 547,627 The summarized operating results of the VIE’s are as follows: For the Three Months Ended For the Three Months Ended Operating revenues $ 9,581 $ 448,401 Gross profit (loss) $ 190 $ (1,755 ) Loss from operations $ (4,770 ) $ (7,133 ) Net loss $ (4,803 ) $ (14,168 ) | |||
SCHEDULE OF VARIABLE INTEREST ENTITY | The carrying amount of the VIE’s assets and liabilities were as follows: SCHEDULE OF VARIABLE INTEREST ENTITY December 31, 2019 December 31, 2018 Current assets $ 572,469 $ 243,766 Current liabilities (547,627 ) (216,187 ) Net assets $ 24,842 $ 27,579 December 31, 2019 December 31, 2018 Current liabilities: Accounts payable $ 520,786 $ - Other payables and accrued liabilities 4,896 978 Other payables - related party 993 984 Customer deposits 20,912 214,199 Taxes payable 40 26 Total current liabilities $ 547,627 $ 216,187 The summarized operating results of the VIE’s are as follows: For the Year Ended For the Year Ended Operating revenues $ 1,382,516 $ 883,216 Gross profit $ 47,800 $ 138,508 Income from operations $ 26,613 $ 119,849 Net income (loss) $ (2,956 ) $ 144,042 |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Business Combination and Asset Acquisition [Abstract] | ||
SUMMARY OF ASSETS ACQUIRED AND LIABILITIES ASSUMED | The following table summarizes the carry value of the identifiable assets acquired and liabilities assumed on the acquisition date, which represents the net purchase price allocation on the date of the acquisition of ASL. SUMMARY OF ASSETS ACQUIRED AND LIABILITIES ASSUMED Carry Value ASSETS Current assets Cash $ 1,206,493 Other receivables 33,210 Other receivables - related parties 219,121 Inventories 616,880 Prepaid taxes 1,206,821 Prepayments and other assets 318,267 Total current assets 3,600,792 Other assets Property and equipment, net 325,648 Intangible assets, net 6,686 Deferred taxes asset, net 172,250 Total other assets 504,584 Total assets $ 4,105,376 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Accounts payable - related party $ 491,628 Customer deposits 1,600,606 Other payables and accrued liabilities 209,096 Total current liabilities 2,301,330 Total liabilities $ 2,301,330 Total net assets acquired $ 1,804,046 | The following table summarizes the carry value of the identifiable assets acquired and liabilities assumed on the acquisition date, which represents the net purchase price allocation on the date of the acquisition of ASL. SUMMARY OF ASSETS ACQUIRED AND LIABILITIES ASSUMED Carry Value ASSETS Current assets Cash $ 1,206,493 Other receivables 33,210 Other receivables - related parties 219,121 Inventories 616,880 Prepaid taxes 1,206,821 Prepayments and other assets 318,267 Total current assets 3,600,792 Other assets Property and equipment, net 325,648 Intangible assets, net 6,686 Deferred taxes asset, net 172,250 Total other assets 504,584 Total assets $ 4,105,376 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Accounts payable - related party $ 491,628 Customer deposits 1,600,606 Other payables and accrued liabilities 209,096 Total current liabilities 2,301,330 Total liabilities 2,301,330 Total net assets acquired 1,804,046 |
SCHEDULE OF PRO FORMA BUSINESS COMBINATION | SCHEDULE OF PRO FORMA BUSINESS COMBINATION For the Six Months Ended June 30, 2020 Revenue $ 2,765,114 Cost of revenue (571,407 ) Gross profit 2,193,707 Total operating expenses (2,055,016 ) Income from operations 138,691 Other income, net 110,912 Income before income taxes 249,603 Provision for income taxes (184,900 ) Net income $ 64,703 Net income per common share - basic and diluted $ 0.00 Weighted average number of common shares outstanding - basic and diluted 376,452,047 | SCHEDULE OF PRO FORMA BUSINESS COMBINATION For the Year Ended For the Year Ended For the Six Months Ended December 31, 2020 December 31, 2019 December 31, 2019 Revenue $ 4,693,873 $ 4,160,820 $ 2,246,458 Cost of revenue (875,708 ) (789,409 ) (479,410 ) Gross profit 3,818,165 3,371,411 1,767,048 Total operating expenses (3,839,184 ) (5,081,917 ) (2,468,902 ) Income (loss) from operations (21,019 ) (1,710,506 ) (701,854 ) Other income (expense), net 267,633 (384,304 ) (146,649 ) Income (loss) before income taxes 246,614 (2,094,810 ) (848,503 ) Benefit of (provision for) income taxes (212,414 ) 319,189 117,009 Net income (loss) $ 34,200 $ (1,775,621 ) $ (731,494 ) Net income (loss) per common share - basic and diluted 0.00 0.00 0.00 Weighted average number of common shares outstanding - basic and diluted $ 376,452,047 $ 376,452,047 $ 376,452,047 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Credit Loss [Abstract] | ||
SCHEDULE OF ACCOUNTS RECEIVABLES | SCHEDULE OF ACCOUNTS RECEIVABLES As of June 30, 2021 As of December 31, 2020 Accounts receivable $ - $ 172,757 Allowance for doubtful accounts - - Total $ - $ 172,757 | SCHEDULE OF ACCOUNTS RECEIVABLES - RELATED PARTY As of December 31, 2020 As of December 31, 2019 Accounts receivable $ 172,757 $ - Accounts receivable – related party - 520,786 Total $ 172,757 $ 520,786 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SCHEDULE OF INVENTORIES | Inventories consist of the following: SCHEDULE OF INVENTORIES As of June 30, 2021 As of December 31, 2020 Finished goods $ 490,275 $ 589,814 | Inventories consist of the following: SCHEDULE OF INVENTORIES As of December 31, 2020 As of December 31, 2019 Finished goods $ 589,814 $ - | ||
Superior Living SDN. BHD. [Member] | ||||
SCHEDULE OF INVENTORIES | Inventories consist of the following: SCHEDULE OF INVENTORIES March 31, 2020 December 31, 2019 Finished goods $ 616,880 $ 552,901 | Inventories consist of the following: SCHEDULE OF INVENTORIES December 31, 2019 December 31, 2018 Finished goods $ 552,901 $ 137,553 |
PREPAYMENTS AND DEPOSITS (Table
PREPAYMENTS AND DEPOSITS (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Prepayments And Deposits | ||
SCHEDULE OF PREPAID EXPENSES AND DEPOSITS | SCHEDULE OF PREPAID EXPENSES AND DEPOSITS As of As of Receivables from sales distributors $ 32,820 $ 35,302 Deposits to suppliers 273,109 261,068 Subtotal 305,929 296,370 Less: Provision for doubtful accounts (121,622 ) - Total $ 184,307 $ 296,370 | SCHEDULE OF PREPAID EXPENSES AND DEPOSITS As of As of Prepaid expenses $ - $ 2,641 Receivables from sales distributors 35,302 - Deposits to suppliers 261,068 266,552 Total $ 296,370 $ 269,193 |
SCHEDULE OF CHANGES IN ALLOWANCE FOR DOUBTFUL ACCOUNTS | Movements of allowance for doubtful accounts are as follows: SCHEDULE OF CHANGES IN ALLOWANCE FOR DOUBTFUL ACCOUNTS For the Three Months Ended June 30, 2021 For the Six Months Ended June 30, 2021 For the Year End December, 31, 2020 Beginning balance $ - $ - $ - Addition 121,686 121,686 - Write off - - - Exchange rate effect (64 ) (64 ) - Ending balance $ 121,622 $ 121,622 $ - |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SCHEDULE OF PROPERTY AND EQUIPMENT | Property and equipment, net consist of the following: SCHEDULE OF PROPERTY AND EQUIPMENT, NET As of June 30, 2021 As of December 31, 2020 Computer and office equipment $ 80,087 $ 81,437 Furniture & fixtures 122,984 126,966 Leasehold improvements 203,894 210,496 Vehicle 99,347 102,564 Subtotal 506,312 521,463 Less: accumulated depreciation (253,871 ) (223,154 ) Total $ 252,441 $ 298,309 | Property and equipment, net consist of the following: SCHEDULE OF PROPERTY AND EQUIPMENT, NET As of December 31, 2020 As of December 31, 2019 Computer and office equipment $ 81,437 $ - Furniture & fixtures 126,966 - Leasehold improvements 210,496 - Vehicle 102,564 - Subtotal 521,463 - Less: accumulated depreciation (223,154 ) - Total $ 298,309 $ - | ||
Superior Living SDN. BHD. [Member] | ||||
SCHEDULE OF PROPERTY AND EQUIPMENT | Property and equipment, net consist of the following: SCHEDULE OF PROPERTY AND EQUIPMENT. NET March 31, 2020 December 31, 2019 Computer equipment $ 70,895 $ 91,696 Office equipment, furniture & fixtures 117,691 143,938 Leasehold improvements 195,117 210,472 Vehicle 95,071 100,709 Subtotal 478,774 546,815 Less: accumulated depreciation (153,126 ) (182,211 ) Total $ 325,648 $ 364,604 | Property and equipment, net consist of the following: SCHEDULE OF PROPERTY AND EQUIPMENT December 31, 2019 December 31, 2018 Computer equipment $ 91,696 $ 83,890 Office equipment, furniture & fixtures 143,938 142,152 Leasehold improvements 210,472 209,414 Vehicle 100,709 99,778 Subtotal 546,815 532,234 Less: accumulated depreciation and amortization (182,211 ) (105,614 ) Total $ 364,604 $ 429,620 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SCHEDULE OF INTANGIBLE ASSETS, NET | Intangible assets, net, consist of the following: SCHEDULE OF INTANGIBLE ASSETS, NET As of June 30, 2021 As of December 31, 2020 Computer software $ 34,678 $ 35,801 Less: accumulated amortization (30,029 ) (29,975 ) Total $ 4,649 $ 5,826 | Intangible assets, net, consist of the following: SCHEDULE OF INTANGIBLE ASSETS, NET As of December 31, 2020 As of December 31, 2019 Computer software $ 35,801 $ - Less: accumulated amortization (29,975 ) - Total $ 5,826 $ - | ||
Superior Living SDN. BHD. [Member] | ||||
SCHEDULE OF INTANGIBLE ASSETS, NET | Intangible assets, net, consist of the following: SCHEDULE OF INTANGIBLE ASSETS, NET March 31, 2020 December 31, 2019 Computer software $ 33,012 $ 139,798 Less: accumulated amortization (26,326 ) (132,206 ) Total $ 6,686 $ 7,592 | |||
SCHEDULE OF INTANGIBLE ASSETS | Intangible assets, net, consist of the following: SCHEDULE OF INTANGIBLE ASSETS December 31, 2019 December 31, 2018 Computer software $ 139,798 $ 135,916 Less: accumulated depreciation and amortization (132,206 ) (124,889 ) Total $ 7,592 $ 11,027 |
INVESTMENT IN MARKETABLE SECU_2
INVESTMENT IN MARKETABLE SECURITIES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Investment In Marketable Securities | ||
SCHEDULE OF INVESTMENT IN MARKETABLE SECURITIES | SCHEDULE OF INVESTMENT IN MARKETABLE SECURITIES As of June 30, 2021 As of December 31, 2020 Cost of investment $ 577,035 $ 66,484 Dividend income from Greenpro Capital Corp. - 160,062 Unrealized holding (loss) gain (165,731 ) 350,137 Exchange rate effect (835 ) 352 Investment in marketable securities $ 410,469 $ 577,035 | SCHEDULE OF INVESTMENT IN MARKETABLE SECURITIES As of December 31, 2020 As of December 31, 2019 Cost of investment $ 66,484 $ 134,166 Dividend income from Greenpro Capital Corp. 160,062 - Unrealized holding gain (loss) 350,137 (68,391 ) Exchange rate effect 352 709 Investment in marketable securities $ 577,035 $ 66,484 |
INVESTMENT IN NON-MARKETABLE _2
INVESTMENT IN NON-MARKETABLE SECURITIES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Investment In Non-marketable Securities | ||
SCHEDULE OF 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 Less: Sale of investment in non-marketable securities - (730,637 ) Investment in non-marketable securities $ - $ - Phoenix Plus Corporation Cost of investment $ 1,500 $ 1,500 Total $ 1,500 $ 1,500 | 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 |
OTHER PAYABLES AND ACCRUED LI_2
OTHER PAYABLES AND ACCRUED LIABILITIES (Tables) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SCHEDULE OF OTHER PAYABLES AND ACCRUED LIABILITIES | SCHEDULE OF OTHER PAYABLES AND ACCRUED LIABILITIES As of June 30, 2021 As of December 31, 2020 Professional fees $ 151,269 $ 297,636 Promotion expenses 36,259 37,433 Payroll 22,730 23,976 Commissions 231,603 224,711 Others 63,689 63,921 Total $ 505,550 $ 647,677 | SCHEDULE OF OTHER PAYABLES AND ACCRUED LIABILITIES As of December 31, 2020 As of December 31, 2019 Professional fees $ 297,636 $ 58,594 Promotion expenses 37,433 - Payroll 23,976 - Commission 224,711 - Others 63,921 18,652 Total $ 647,677 $ 77,246 | ||
Superior Living SDN. BHD. [Member] | ||||
SCHEDULE OF OTHER PAYABLES AND ACCRUED LIABILITIES | Other payables and accrued liabilities consist of the following: SCHEDULE OF OTHER PAYABLES AND ACCRUED LIABILITIES March 31, 2020 December 31, 2019 Payables to non-trade vendors and service providers $ 209,096 $ 252,902 | Other payables and accrued liabilities consist of the following: SCHEDULE OF OTHER PAYABLES AND ACCRUED LIABILITIES December 31, 2019 December 31, 2018 Payables to non-trade vendors and service providers $ 252,902 $ 968,547 |
RELATED PARTY BALANCES AND TR_2
RELATED PARTY BALANCES AND TRANSACTIONS (Tables) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SCHEDULE OF RELATED PARTY TRANSACTIONS | SCHEDULE OF RELATED PARTIES Name of Related Party Relationship Nature As of June 30, 2021 As of Agape ATP (Asia) Limited (“AATP Asia”) Mr. How Kok Choong, the CEO and director of the Company is also the sole shareholder and director of AATP Asia Expenses paid for AATP Asia $ 2,224 $ 2,227 Hostastay Sdn. Bhd. Mr. How Kok Choong, the CEO and director of the Company is also the director of Hostastay Sublease rent due from Hostastay 3,375 996 TH3 Technology Sdn Bhd Mr. How Kok Choong, the CEO and director of the Company is also the director of TH3 Technology Expenses paid for TH3 Technology - 12 Total $ 5,599 $ 3,235 Amount due to a Related Party Name of Related Party Relationship Nature As of June 30, 2021 As of Agape Superior Living Pty Ltd Mr. How Kok Choong, the CEO and director of the Company ATP Printing label fees $ - $ 455 Total $ - $ 455 Related party transactions Revenue Name of Related Party Relationship Nature For the Three Months Ended June 30, 2021 For the Three Months Ended June 30, 2020 Agape Superior Living Pty Ltd (“ASLPL”) Mr. How Kok Choong, the CEO and director of the Company is a 51% shareholder and a director of ASLPL Sale of products $ - $ 13,654 Total $ - $ 13,654 AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 14. RELATED PARTY BALANCES AND TRANSACTIONS (CONT’D) Name of Related Party Relationship Nature For the Six Months Ended June 30, 2021 For the Six Months Ended June 30, 2020 Agape Superior Living Pty Ltd (“ASLPL”) Mr. How Kok Choong, the CEO and director of the Company is a 51% shareholder and a director of ASLPL Sale of products $ - $ 13,654 Total $ - $ 13,654 Other Income Name of Related Party Relationship Nature For the Three Months Ended June 30, 2021 For the Three Months Ended June 30, 2020 Hostastay Sdn. Bhd. Mr. How Kok Choong, the CEO and director of the Company is also the director of Hostastay Sublease rental income due from Hostastay $ 1,458 $ - Total $ 1,458 $ - Name of Related Party Relationship Nature For the Six Months Ended June 30, 2021 For the Six Months Ended June 30, 2020 Hostastay Sdn. Bhd. Mr. How Kok Choong, the CEO and director of the Company is also the director of Hostastay Sublease rental income due from Hostastay $ 2,929 $ - Total $ 2,929 $ - | Accounts receivable – related party SCHEDULE OF RELATED PARTIES Name of Related Party Relationship Nature As of December 31, 2020 As of December 31, 2019 SEA VIE of ASL, Mr. How Kok Choong, the CEO and director of the Company is the sole shareholder and director of SEA Sales of products $ - $ 520,786 Total $ - $ 520,786 Amount due from related parties Name of Related Party Relationship Nature As of December 31, 2020 As of Agape ATP (Asia) Limited (“AATP Asia”) Mr. How Kok Choong, the CEO and director of the Company is also the sole shareholder and director of AATP Asia Expenses paid for AATP Asia $ 2,227 $ 2,217 Hostastay Sdn. Bhd. Mr. How Kok Choong, the CEO and director of the Company is also the director of Hostastay Sublease rent due from Hostastay 996 - TH3 Technology Sdn Bhd Mr. How Kok Choong, the CEO and director of the Company is also the director of TH3 Technology Expenses paid for TH3 Technology 12 - Total $ 3,235 $ 2,217 Amount due to a Related Party Name of Related Party Relationship Nature As of December 31, 2020 As of Mr. How Kok Choong CEO and director of the Company Acquisition payment of ASL and expenses paid for the Company $ - $ 3,952 Agape Superior Living Pty Ltd Mr. How Kok Choong, the CEO and director of the Company ATP Printing Label fees 455 - Total $ 455 $ 3,952 AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (“US$”), except for number of shares) 14. RELATED PARTY BALANCES AND TRANSACTIONS (CONT’D) Related party transactions Revenue Name of Related Party Relationship Nature For the Year Ended December 31, 2020 For the Year Ended December 31, 2019 For the Six Months Ended December 31, 2019 (Unaudited) SEA VIE of ASL, Mr. How Kok Choong, the CEO and director of the Company is the sole shareholder and director of SEA Sales of products $ - $ 1,268,670 $ 429,362 Agape Superior Living Pty Ltd (“ASLPL”) Mr. How Kok Choong, the CEO and director of the Company is a 51% shareholder and a director of ASLPL Sales of products 18,060 21,461 - Total $ 18,060 $ 1,290,131 $ 429,362 Other income Name of Related Party Relationship Nature For the Year Ended December 31, 2020 For the Year Ended December 31, 2019 For the Six Months Ended December 31, 2019 (Unaudited) Hostastay Sdn. Bhd. Mr. How Kok Choong, the CEO and director of the Company is also the director of Hostastay Sublease rental income due from Hostastay $ 2,881 $ - $ - Total $ 2,881 $ - $ - | ||
Superior Living SDN. BHD. [Member] | ||||
SCHEDULE OF RELATED PARTY TRANSACTIONS | Other Receivable – Related Parties SCHEDULE OF RELATED PARTY TRANSACTIONS Name of Related Party Relationship Nature March 31, 2020 December 31, 2019 Agape Singapore Mr. How Kok Choong, the CEO and director of the Company Fees paid for Agape Singapore $ 9,994 $ 10,586 How Academy Sdn Bhd Mr. How Kok Choong, the director of the Company Paid advance to How Academy for business operational expenses 21,716 23,004 Redboy Picture Sdn Bhd Mr. How Kok Choong, the director of the Company Paid advance to Redboy for business operational expenses 123,019 132,141 TH3 Technology Sdn Bhd Mr. How Kok Choong, the director of the Company Paid advance to TH3 for business operational expenses 64,392 68,211 Total $ 219,121 $ 233,942 Accounts Payable - Related Party Name of Related Party Relationship Nature March 31, 2020 December 31, 2019 Agape ATP International Holding Limited Mr. How Kok Choong, the CEO and director of the Company Purchase $ 491,628 $ 520,786 Total $ 491,628 $ 520,786 Other Payables - Related Party Name of Related Party Relationship Nature March 31, 2020 December 31, 2019 Agape Superior Living Pty Ltd, Taiwan Mr. How Kok Choong, the CEO and director of the Company Printing of product label expenses $ $ 12,104 Total $ - $ 12,104 Purchases Name of Related Party Relationship Nature For the Three Months Ended March 31, 2020 For the Three Months Ended March 31, 2019 Agape ATP International Holding Limited Mr. How Kok Choong, the CEO and director of the Company Purchases $ - $ 464,297 Total $ - $ 464,297 | |||
SCHEDULE OF RELATED PARTIES RELATIONSHIPS | Other receivable – related parties SCHEDULE OF RELATED PARTIES RELATIONSHIPS Name of Related Party Relationship Nature December 31, 2019 December 31, 2018 Agape Singapore Mr. How Kok Choong, the CEO and director of the Company Fees paid for Agape Singapore $ 10,586 $ 10,490 How Academy Sdn. Bhd. Mr. How Kok Choong, the director of the Company Fees paid for How Academy 23,004 - Other Receivable – Related Parties Name of Related Party Relationship Nature December 31, 2019 December 31, 2018 Redboy Picture Sdn Bhd Mr. How Kok Choong, the director of the Company Paid advance to Redboy for business operational fees $ 132,141 $ - TH3 Technology Sdn Bhd Mr. How Kok Choong, the director of the Company Paid advance to TH3 for business expenses 68,211 - Dato Sri How Principal Owner, Board and CEO of the Company Expenses paid for Mr. How - 104,735 Total $ 233,942 $ 115,225 Prepayment - Related Party Name of Related Party Relationship Nature December 31, 2019 December 31, 2018 Agape ATP International Holding Limited Mr. How Kok Choong, the CEO and director of the Company Prepayment for Purchase $ - $ 214,701 Total $ - $ 214,701 Accounts Payable - Related Party Name of Related Party Relationship Nature December 31, 2019 December 31, 2018 Agape ATP International Holding Limited Mr. How Kok Choong, the CEO and director of the Company Purchase $ 520,786 $ - Total $ 520,786 $ - Other Payables - Related Parties Name of Related Party Relationship Nature December 31, 2019 December 31, 2018 Agape Superior Living Pty Ltd, Taiwan Mr. How Kok Choong, the CEO and director of the Company ATP Printing Label fees $ 12,104 $ 4,376 Total $ 12,104 $ 4,376 Purchases Name of Related Party Relationship Nature For the Year ended December 31, 2019 For the Year ended December 31, 2018 Agape ATP International Holding Limited Mr. How Kok Choong, the CEO and director of the Company Purchases $ 1,268,670 $ 685,288 Total $ 1,268,670 $ 685,288 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 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: SCHEDULE OF COMPONENTS OF INCOME/(LOSS) BEFORE INCOME TAX For the three months ended For the six months ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Tax jurisdictions from: Local – United States $ (96,370 ) $ (161,751 ) $ (204,295 ) $ (304,170 ) Foreign – Malaysia (177,983 ) 369,367 (469,675 ) 313,780 Foreign – Hong Kong (363,901 ) 13,691 (291,814 ) (20,053 ) (Loss) income before income tax $ (638,254 ) $ 221,307 $ (965,784 ) $ (10,443 ) | SCHEDULE OF COMPONENTS OF INCOME/(LOSS) BEFORE INCOME TAX For the years ended For the six months ended December 31, December 31, 2020 2019 2019 (Unaudited) Tax jurisdictions from: - U.S. $ (735,159 ) $ (321,808 ) $ (279,476 ) - Foreign – Malaysia 1,070,806 38,625 (4,174 ) - Foreign – Hong Kong 180,700 (439,909 ) (55,281 ) Income (loss) before income taxes $ 516,347 $ (723,092 ) $ (338,931 ) |
SCHEDULE OF PROVISION FOR INCOME TAX | The provision for income taxes consisted of the following: SCHEDULE OF PROVISION FOR INCOME TAX For the three months ended For the six months ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Current: - Local $ (22,205 ) $ - $ (22,205 ) $ - - Foreign (14,461 ) - (41,185 ) - Deferred: - Local - - - - - Foreign 32,695 (134,067 ) 53,299 (134,067 ) Provision for income tax $ (3,971 ) $ (134,067 ) $ (10,091 ) $ (134,067 ) | The (provision for) benefit of income taxes consisted of the following: SCHEDULE OF PROVISION FOR INCOME TAX 2020 2019 2019 For the Years Ended December 31, For the Six Months Ended December 31, 2020 2019 2019 (Unaudited) Current: - U.S. $ - $ - $ - - Foreign 16,748 6,965 - Deferred: - U.S. - - - - Foreign (178,329 ) - - (Provision for) benefit of income taxes $ (161,581 ) $ 6,965 $ - |
SCHEDULE OF DEFERRED TAX ASSETS | The following table sets forth the significant components of the aggregate deferred tax assets of the Company as of: SCHEDULE OF DEFERRED TAX ASSETS As of June 30, 2021 As of December 31, 2020 Deferred tax assets: Net operating loss carry forwards in U.S. $ 42,902 $ - Net operating loss carry forwards in Malaysia 47,090 62,678 Less: valuation allowance (42,902 ) - Deferred tax liabilities: Depreciation - (68,421 ) Deferred tax assets (liabilities), net $ 47,090 $ (5,743 ) | The following table sets forth the significant components of the aggregate deferred tax assets of the Company as of: SCHEDULE OF DEFERRED TAX ASSETS As of December 31, 2020 As of December 31, 2019 Deferred tax assets: Net operating loss carry forwards in U.S. $ 65,648 $ 43,410 Net operating loss carry forwards in Malaysia 62,678 - Less: valuation allowance (65,648 ) (43,410 ) Deferred tax liabilities: Depreciation (68,421 ) - Deferred tax liabilities, net $ (5,743 ) $ - |
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: SCHEDULE OF EFFECTIVE INCOME TAX RATE 2020 2019 2019 For the years ended For the six months ended December 31, December 31, 2020 2019 2019 (Unaudited) U.S. statutory rate 21.0 % 21.0 % 21.0 % Valuation allowance (4.0 )% (21.0 )% (21.0 )% Differential tax rate in Malaysia 3.0 % 0.0 % 0.0 % Permanent difference 11.3 % (1) 1.0 % 0.0 % Effective tax rate 31.3 % 1.0 % 0.0 % (1) 10.2 0.2 1.3 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SCHEDULE OF LEASE COMMITMENTS | The five-year maturity of the Company’s operating lease liabilities is as follow: SCHEDULE OF LEASE COMMITMENTS 2021 Twelve Months Ending Operating lease liabilities 2022 $ 162,318 2023 153,835 2024 8,323 Total lease payments 324,476 Less: interest (17,868 ) Present value of lease liabilities $ 306,608 | The five-year maturity of the Company’s operating lease liabilities is as follow: SCHEDULE OF LEASE COMMITMENTS Twelve Months Ending Operating lease liabilities 2021 $ 172,191 2022 168,890 2023 83,259 Thereafter - Total lease payments 424,340 Less: interest (28,576 ) Present value of lease liabilities $ 395,764 | ||
SCHEDULE OF FUTURE MINIMUM PURCHASE COMMITMENT | The total future minimum purchase commitment under a non-cancellable purchase contract as of June 30, 2021 for the next five years and thereafter is as follows: SCHEDULE OF PURCHASE COMMITMENTS 2021 Twelve months ending June 30, Minimum purchase 2022 $ 693,900 2023 693,900 2024 693,900 2025 693,900 2026 693,900 Thereafter 1,040,850 Total minimum purchase commitments required $ 4,510,350 | The total future minimum purchase commitment under a non-cancellable purchase contract as of December 31, 2020 for the next five years and thereafter is as follows: SCHEDULE OF PURCHASE COMMITMENTS Twelve months ending December 31, Minimum purchase 2021 $ 693,900 2022 693,900 2023 693,900 2024 693,900 2025 693,900 Thereafter 1,387,800 Total minimum purchase commitments required $ 4,857,300 | ||
Superior Living SDN. BHD. [Member] | ||||
SCHEDULE OF FUTURE MINIMUM PURCHASE COMMITMENT | The Company has entered into five non-cancellable operating lease agreements for one office space, one sales and training center, two distribution centers and one employee apartment. The Company’s commitment for minimum lease payments under these operating leases as of March 31, 2020 for the next five years is as follow: SCHEDULE OF FUTURE MINIMUM PURCHASE COMMITMENT Twelve Months Ending Minimum Lease Payment 2021 $ 164,745 2022 158,981 2023 156,551 2024 38,038 Thereafter - Total minimum payments required $ 518,315 | The Company has entered into five non-cancellable operating lease agreements for one office space, one sales and training center, two distribution centers and one employee apartment. The Company’s commitment for minimum lease payments under these operating leases as of December 31, 2019 for the next five years is as follow: SCHEDULE OF FUTURE MINIMUM PURCHASE COMMITMENT Twelve Months Ending Minimum 2020 $ 178,035 2021 169,077 2022 165,836 2023 81,753 Thereafter - Total minimum payments required $ 594,701 |
ACCOUNTS RECEIVABLE AND ACCOU_2
ACCOUNTS RECEIVABLE AND ACCOUNTS RECEIVABLE – RELATED PARTY (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | ||
SCHEDULE OF ACCOUNTS RECEIVABLES - RELATED PARTY | SCHEDULE OF ACCOUNTS RECEIVABLES As of June 30, 2021 As of December 31, 2020 Accounts receivable $ - $ 172,757 Allowance for doubtful accounts - - Total $ - $ 172,757 | SCHEDULE OF ACCOUNTS RECEIVABLES - RELATED PARTY As of December 31, 2020 As of December 31, 2019 Accounts receivable $ 172,757 $ - Accounts receivable – related party - 520,786 Total $ 172,757 $ 520,786 |
PREPAYMENTS AND OTHER ASSETS (T
PREPAYMENTS AND OTHER ASSETS (Tables) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SCHEDULE OF PREPAID EXPENSES AND DEPOSITS | SCHEDULE OF PREPAID EXPENSES AND DEPOSITS As of As of Receivables from sales distributors $ 32,820 $ 35,302 Deposits to suppliers 273,109 261,068 Subtotal 305,929 296,370 Less: Provision for doubtful accounts (121,622 ) - Total $ 184,307 $ 296,370 | SCHEDULE OF PREPAID EXPENSES AND DEPOSITS As of As of Prepaid expenses $ - $ 2,641 Receivables from sales distributors 35,302 - Deposits to suppliers 261,068 266,552 Total $ 296,370 $ 269,193 | ||
Superior Living SDN. BHD. [Member] | ||||
SCHEDULE OF PREPAID EXPENSES AND DEPOSITS | Prepayments and other assets consist of the following: SCHEDULE OF PREPAID EXPENSES AND DEPOSITS March 31, 2020 December 31, 2019 Deposits to suppliers $ 274,558 $ 396,731 Deposits to service providers 43,709 88,149 Total $ 318,267 $ 484,880 | |||
SCHEDULE OF PREPAYMENTS AND OTHER ASSETS | Prepayments and other assets consist of the following: SCHEDULE OF PREPAYMENTS AND OTHER ASSETS December 31, 2019 December 31, 2018 Deposits to suppliers $ 396,731 $ 429,456 Deposits to service providers 88,149 39,394 Total $ 484,880 $ 468,850 |
TAXES (Tables)
TAXES (Tables) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SCHEDULE OF COMPONENTS OF PROVISION (BENEFIT) FOR INCOME TAXES | The provision for income taxes consisted of the following: SCHEDULE OF PROVISION FOR INCOME TAX For the three months ended For the six months ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Current: - Local $ (22,205 ) $ - $ (22,205 ) $ - - Foreign (14,461 ) - (41,185 ) - Deferred: - Local - - - - - Foreign 32,695 (134,067 ) 53,299 (134,067 ) Provision for income tax $ (3,971 ) $ (134,067 ) $ (10,091 ) $ (134,067 ) | The (provision for) benefit of income taxes consisted of the following: SCHEDULE OF PROVISION FOR INCOME TAX 2020 2019 2019 For the Years Ended December 31, For the Six Months Ended December 31, 2020 2019 2019 (Unaudited) Current: - U.S. $ - $ - $ - - Foreign 16,748 6,965 - Deferred: - U.S. - - - - Foreign (178,329 ) - - (Provision for) benefit of income taxes $ (161,581 ) $ 6,965 $ - | ||
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES | The following table sets forth the significant components of the aggregate deferred tax assets of the Company as of: SCHEDULE OF DEFERRED TAX ASSETS As of June 30, 2021 As of December 31, 2020 Deferred tax assets: Net operating loss carry forwards in U.S. $ 42,902 $ - Net operating loss carry forwards in Malaysia 47,090 62,678 Less: valuation allowance (42,902 ) - Deferred tax liabilities: Depreciation - (68,421 ) Deferred tax assets (liabilities), net $ 47,090 $ (5,743 ) | The following table sets forth the significant components of the aggregate deferred tax assets of the Company as of: SCHEDULE OF DEFERRED TAX ASSETS As of December 31, 2020 As of December 31, 2019 Deferred tax assets: Net operating loss carry forwards in U.S. $ 65,648 $ 43,410 Net operating loss carry forwards in Malaysia 62,678 - Less: valuation allowance (65,648 ) (43,410 ) Deferred tax liabilities: Depreciation (68,421 ) - Deferred tax liabilities, net $ (5,743 ) $ - | ||
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES | The following table reconciles the local (United States) statutory rates to the Company’s effective tax rate for the periods indicated below: SCHEDULE OF EFFECTIVE INCOME TAX RATE 2020 2019 2019 For the years ended For the six months ended December 31, December 31, 2020 2019 2019 (Unaudited) U.S. statutory rate 21.0 % 21.0 % 21.0 % Valuation allowance (4.0 )% (21.0 )% (21.0 )% Differential tax rate in Malaysia 3.0 % 0.0 % 0.0 % Permanent difference 11.3 % (1) 1.0 % 0.0 % Effective tax rate 31.3 % 1.0 % 0.0 % (1) 10.2 0.2 1.3 | |||
Superior Living SDN. BHD. [Member] | ||||
SCHEDULE OF COMPONENTS OF PROVISION (BENEFIT) FOR INCOME TAXES | Significant components of the provision (benefit) for income taxes are as follows: SCHEDULE OF COMPONENTS OF PROVISION (BENEFIT) FOR INCOME TAXES For the Three Months Ended For the Three Months Ended Current $ - $ - Deferred 50,833 (57,232 ) Provision (benefit) for income taxes $ 50,833 $ (57,232 ) | Significant components of the provision (benefit) for income taxes are as follows: SCHEDULE OF COMPONENTS OF PROVISION (BENEFIT) FOR INCOME TAXES For the year ended For the year ended Current $ (61,402 ) $ 580,734 Deferred (250,822 ) 16,814 Provision (benefit) for income taxes $ (312,224 ) $ 597,548 | ||
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES | The following table sets forth the significant components of the aggregate deferred tax assets and liabilities of the Company within Malaysia tax jurisdiction as of: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES As of March 31, As of December 31, 2020 2019 Deferred tax assets: Net operating loss carry forwards $ 196,494 $ 260,479 Deferred tax liabilities: Deprecation (24,244 ) (25,682 ) Deferred tax assets, net $ 172,250 $ 234,797 | The following table sets forth the significant components of the aggregate deferred tax assets and liabilities of the Company within Malaysia tax jurisdiction as of: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES As of As of December 31, 2019 December 31, 2018 Deferred tax assets: Net operating loss carry forwards $ 260,479 $ - Deferred tax liabilities: Deprecation (25,682 ) (18,901 ) Deferred tax assets (liabilities), net $ 234,797 $ (18,901 ) | ||
SUMMARY OF PREPAID TAXES | The following table contains the detail of prepaid taxes: SUMMARY OF PREPAID TAXES As of March 31, 2020 As of December 31, 2019 Prepaid income taxes $ 1,198,475 $ 1,173,122 Prepaid GST taxes 8,346 8,841 Total $ 1,206,821 $ 1,181,963 | The following table contains the detail of prepaid taxes: SUMMARY OF PREPAID TAXES December 31, 2019 December 31, 2018 Prepaid income taxes $ 1,173,122 $ 158,002 Prepaid GST taxes 8,841 30,196 Total $ 1,181,963 $ 188,198 | ||
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES | The following table reconciles the statutory rates to the Company’s effective tax rate: SCHEDULE OF EFFECTIVE INCOME TAX RATE For the year ended December 31, 2019 For the year ended December 31, 2018 Statutory rate 24.0 % 24.0 % Preferential tax rate reduction (0.8 )% (0.3 )% Permanent difference (0.4 )% (0.5 )% Effective tax rate 22.8 % 23.2 % The following table sets forth the significant components of the aggregate deferred tax assets and liabilities of the Company within Malaysia tax jurisdiction as of: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES As of As of December 31, 2019 December 31, 2018 Deferred tax assets: Net operating loss carry forwards $ 260,479 $ - Deferred tax liabilities: Deprecation (25,682 ) (18,901 ) Deferred tax assets (liabilities), net $ 234,797 $ (18,901 ) |
SCHEDULE OF SUBSIDIARIES AND AS
SCHEDULE OF SUBSIDIARIES AND ASSOCIATES (Details) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | May 08, 2020 | |
Subsidiary Company [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Subsidiary company name | Agape ATP Corporation | Agape ATP Corporation | ||
Place and date of incorporation | Labuan, March 6, 2017 | Labuan, March 6, 2017 | ||
Particulars of issued capital | 100 shares of ordinary share of US$1 each | 100 shares of ordinary share of US$1 each | ||
Principal activities | Investment holding | Investment holding | ||
Proportional of ownership interest and voting power held | 100.00% | 100.00% | ||
Subsidiary Company One [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Subsidiary company name | Agape ATP International Holding Limited | Agape ATP International Holding Limited | ||
Place and date of incorporation | Hong Kong, June 1, 2017 | Hong Kong, June 1, 2017 | ||
Particulars of issued capital | 1,000,000 shares of ordinary share of HK$1 each | 1,000,000 shares of ordinary share of HK$1 each | ||
Principal activities | Wholesaling of health and wellness products; and health solution advisory services | Wholesaling of health and wellness products; and health solution advisory services | ||
Proportional of ownership interest and voting power held | 100.00% | 100.00% | ||
Subsidiary Company Two [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Subsidiary company name | Agape Superior Living Sdn. Bhd. | Agape Superior Living Sdn. Bhd. | ||
Place and date of incorporation | Malaysia, August 8, 2003 | Malaysia, August 8, 2003 | ||
Particulars of issued capital | 9,590,598 shares of ordinary share of RM1 each | 9,590,598 shares of ordinary share of RM1 each | ||
Principal activities | Health and wellness products and health solution advisory services via network marketing | Health and wellness products and health solution advisory services via network marketing | ||
Proportional of ownership interest and voting power held | 99.99% | 99.99% | 99.99% | |
Subsidiary Company Three [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Subsidiary company name | Agape S.E.A. Sdn. Bhd. | Agape S.E.A. Sdn. Bhd. | ||
Place and date of incorporation | Malaysia, March 4, 2004 | Malaysia, March 4, 2004 | ||
Particulars of issued capital | 2 shares of ordinary share of RM1 each | 2 shares of ordinary share of RM1 each | ||
Principal activities | VIE of Agape Superior Living Sdn. Bhd. | VIE of Agape Superior Living Sdn. Bhd. | ||
Proportional of ownership interest and voting power held | 100.00% | 100.00% | ||
Subsidiary Company Four [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Subsidiary company name | Wellness ATP International Holdings Sdn, Bhd | Wellness ATP International Holdings Sdn, Bhd | ||
Place and date of incorporation | Malaysia, September 11, 2020 | Malaysia, September 11, 2020 | ||
Particulars of issued capital | 100 shares of ordinary share of RM1 each | 100 shares of ordinary share of RM1 each | ||
Principal activities | The promotion of wellness and wellbeing lifestyle of the community by providing services that includes online editorials, programs, events and campaigns | The promotion of wellness and wellbeing lifestyle of the community by providing services that includes online editorials, programs, events and campaigns | ||
Proportional of ownership interest and voting power held | 100.00% | 100.00% |
ORGANIZATION AND BUSINESS BAC_3
ORGANIZATION AND BUSINESS BACKGROUND (Details Narrative) - USD ($) | Jul. 02, 2020 | May 08, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2021 |
Stock Issued During Period, Value, New Issues | $ 1,057,508 | $ 1,147,551 | |||||
Share Exchange Agreement [Member] | Mr. How Kok Choong [Member] | |||||||
Ownership interest percentage | 99.99% | ||||||
Stock issued during period acquisitions, shares | 9,590,596 | ||||||
Stock Issued During Period, Shares, New Issues | 176,547 | ||||||
Stock Issued During Period, Value, New Issues | $ 1,147,551 | ||||||
Loan receivable | 656,495 | ||||||
Consideration amount | $ 1,804,046 | ||||||
Share Exchange Agreement [Member] | Mr. How Kok Choong [Member] | Agape Superior Living S D N B H D [Member] | |||||||
Ownership interest percentage | 99.99% | ||||||
Stock issued during period acquisitions, shares | 176,547 | ||||||
Ordinary shares no par value | $ 0 | ||||||
Stock Issued During Period, Shares, New Issues | 176,547 | 176,547 | |||||
Loan receivable | $ 656,495 | ||||||
Consideration amount | $ 1,804,046 | ||||||
Agape ATP International Holding Limited [Member] | |||||||
Ownership interest percentage | 100.00% | 100.00% | |||||
Subsidiary Company Two [Member] | |||||||
Ownership interest percentage | 99.99% | 99.99% | 99.99% |
SCHEDULE OF ESTIMATED USEFUL LI
SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Computer Equipment [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated Useful Life of Property and Equipment | 5 years | 5 years | ||
Computer Equipment [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated Useful Life of Property and Equipment | 7 years | 7 years | ||
Furniture and Fixtures [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated Useful Life of Property and Equipment | 6 years | 6 years | ||
Furniture and Fixtures [Member] | Minimum [Member] | Agape Superior Living S D N B H D [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated Useful Life of Property and Equipment | 6 years | 6 years | ||
Furniture and Fixtures [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated Useful Life of Property and Equipment | 7 years | 7 years | ||
Furniture and Fixtures [Member] | Maximum [Member] | Agape Superior Living S D N B H D [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated Useful Life of Property and Equipment | 7 years | 7 years | ||
Leasehold Improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated Useful Lives of Property and Equipment | Lease Term | Lease Term | ||
Leasehold Improvements [Member] | Agape Superior Living S D N B H D [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated Useful Lives of Property and Equipment | Lease Term | Lease Term | ||
Vehicles [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated Useful Life of Property and Equipment | 5 years | 5 years | ||
Machinery and Equipment [Member] | Minimum [Member] | Agape Superior Living S D N B H D [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated Useful Life of Property and Equipment | 5 years | 5 years | ||
Machinery and Equipment [Member] | Maximum [Member] | Agape Superior Living S D N B H D [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated Useful Life of Property and Equipment | 7 years | 7 years | ||
Vehicle [Member] | Agape Superior Living S D N B H D [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated Useful Life of Property and Equipment | 5 years | 5 years |
SCHEDULE OF ESTIMATED USEFUL _2
SCHEDULE OF ESTIMATED USEFUL LIVES OF INTANGIBLE ASSETS, NET (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Computer Software, Intangible Asset [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful lives of intangible assets | 5 years | 5 years |
SCHEDULE OF DIS-AGGREGATED INFO
SCHEDULE OF DIS-AGGREGATED INFORMATION OF REVENUES (Details) - USD ($) | 3 Months Ended | 5 Months Ended | 6 Months Ended | 11 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 13, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 13, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Product Information [Line Items] | |||||||||
Total revenues | $ 303,133 | $ 1,523,862 | $ 599,820 | $ 1,523,862 | |||||
Total revenues | 303,786 | 1,523,862 | 605,566 | 1,523,862 | $ 429,362 | $ 3,452,621 | $ 1,290,131 | ||
Survivor Select [Member] | |||||||||
Product Information [Line Items] | |||||||||
Total revenues | 24,415 | 35,994 | 37,641 | 35,994 | |||||
Total revenues | 149,897 | ||||||||
Energized Mineral Concentrate [Member] | |||||||||
Product Information [Line Items] | |||||||||
Total revenues | 8,291 | 22,606 | 52,183 | 22,606 | |||||
Total revenues | 100,270 | 81,481 | 238,687 | ||||||
Ionized Cal-Mag [Member] | |||||||||
Product Information [Line Items] | |||||||||
Total revenues | 18,485 | 611,160 | 40,298 | 611,160 | |||||
Total revenues | 908,964 | 55,718 | |||||||
Omega Blend [Member] | |||||||||
Product Information [Line Items] | |||||||||
Total revenues | 89,066 | 162,543 | 185,361 | 162,543 | |||||
Total revenues | 68,927 | 495,567 | 137,752 | ||||||
Beta Maxx [Member] | |||||||||
Product Information [Line Items] | |||||||||
Total revenues | 55,943 | 11,434 | 89,800 | 11,434 | |||||
Total revenues | 67,789 | 156,550 | 191,246 | ||||||
Vege-Fruit Fiber [Member] | |||||||||
Product Information [Line Items] | |||||||||
Total revenues | 6,106 | 6,106 | |||||||
Total revenues | 1,755 | ||||||||
Iron [Member] | |||||||||
Product Information [Line Items] | |||||||||
Total revenues | 8,431 | 16,715 | |||||||
Total revenues | 133,389 | ||||||||
Young Formula [Member] | |||||||||
Product Information [Line Items] | |||||||||
Total revenues | 14,458 | 349,738 | 25,901 | 349,738 | |||||
Total revenues | 653,631 | 117,453 | |||||||
Organic Youth Car Cleansing Bar [Member] | |||||||||
Product Information [Line Items] | |||||||||
Total revenues | 2,990 | 28,805 | 2,990 | 28,805 | |||||
Mitogize [Member] | |||||||||
Product Information [Line Items] | |||||||||
Total revenues | 70,148 | 4,711 | 106,843 | 4,711 | |||||
Total revenues | 162,801 | ||||||||
Lipomask [Member] | |||||||||
Product Information [Line Items] | |||||||||
Total revenues | 4,279 | 8,420 | 8,401 | 8,420 | |||||
Hyaluronic Acid Serum [Member] | |||||||||
Product Information [Line Items] | |||||||||
Total revenues | 1,362 | 55,721 | 3,353 | 55,721 | |||||
Mousse Facial Cleanser [Member] | |||||||||
Product Information [Line Items] | |||||||||
Total revenues | 3,042 | 3,127 | 7,660 | 3,127 | |||||
Trim+ [Member] | |||||||||
Product Information [Line Items] | |||||||||
Total revenues | $ 2,223 | $ 223,497 | $ 22,674 | $ 223,497 | |||||
Total revenues | $ 365,350 | 198,817 | |||||||
Organic Youth Care Cleansing Bar [Member] | |||||||||
Product Information [Line Items] | |||||||||
Total revenues | $ 17,206 | 43,127 | 34,917 | ||||||
Number One M E D [Member] | |||||||||
Product Information [Line Items] | |||||||||
Total revenues | 46,713 | 140,733 | |||||||
Energetique [Member] | |||||||||
Product Information [Line Items] | |||||||||
Total revenues | $ 175,170 | $ 253,396 | $ 174,808 |
SCHEDULE OF FOREIGN CURRENCIES
SCHEDULE OF FOREIGN CURRENCIES TRANSLATION EXCHANGE RATES (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Period-end MYR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Foreign Currency Exchange Rate, Translation | 4.15 | 4.15 | 4.09 | 4.02 | 4.09 | ||
Period-end HKD [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Foreign Currency Exchange Rate, Translation | 7.77 | 7.77 | 7.79 | 7.75 | 7.79 | ||
Period-average MYR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Foreign currency exchange rate period average | 4.13 | 4.32 | 4.10 | 4.25 | 4.16 | 4.20 | 4.14 |
Period-average HKD [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Foreign currency exchange rate period average | 7.77 | 7.75 | 7.76 | 7.76 | 7.83 | 7.76 | 7.84 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2021USD ($)shares | Jun. 30, 2020USD ($)shares | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Jun. 30, 2021USD ($)shares | Jun. 30, 2021MYR (RM)shares | Jun. 30, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2020MYR (RM)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) | |
Product Information [Line Items] | ||||||||||||
Allowance for the doubtful accounts | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||||||
Inventories write-down | 36,636 | 0 | 0 | |||||||||
Impairment of long-lived assets | 0 | 0 | 0 | |||||||||
Forfeited coupon income | 4,115 | $ 61,368 | 11,226 | 61,368 | 170,431 | 0 | ||||||
Net revenues | 303,786 | 1,510,208 | 605,566 | 1,510,208 | 3,434,561 | |||||||
Cost of revenue | 35,623 | 471,554 | 113,214 | 471,554 | 383,479 | 775,855 | 1,200,829 | |||||
Selling expenses | 100,838 | 108,894 | 216,952 | 109,356 | 376,582 | 7,846 | ||||||
Advertising costs | 8,721 | 2,882 | 16,658 | 2,882 | 0 | 14,339 | 0 | |||||
Commission expenses | 92,774 | 382,498 | 181,213 | 382,498 | 0 | 830,659 | 0 | |||||
Defined contribution plan expense | 27,067 | 23,710 | $ 53,034 | 23,710 | 0 | $ 75,802 | 0 | |||||
Income tax examination, likelihood of unfavorable settlement | greater than 50% | greater than 50% | greater than 50% | greater than 50% | ||||||||
Penalties and interest incurred | 395 | $ 0 | $ 395 | $ 0 | $ 0 | $ 0 | $ 0 | |||||
Noncontrolling interest, description | Non-controlling interest mainly consists of approximately 0.01% (3 ordinary shares out of 9,590,599 shares) of the equity interests of ASL held by three individuals. | Non-controlling interest mainly consists of approximately 0.01% (3 ordinary shares out of 9,590,599 shares) of the equity interests of ASL held by three individuals. | Non-controlling interest mainly consists of approximately 0.01% (2 ordinary shares out of 9,590,598 shares) of the equity interests of ASL held by two individuals. | Non-controlling interest mainly consists of approximately 0.01% (2 ordinary shares out of 9,590,598 shares) of the equity interests of ASL held by two individuals. | ||||||||
Non-controlling interest | $ 0 | $ 0 | $ 0 | |||||||||
Potentially dilutive securities outstanding | shares | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Allowance for doubtful accounts | $ 0 | $ 0 | $ 0 | |||||||||
Accumulated other comprehensive (loss) income | $ 106,385 | $ 106,385 | 9,785 | 181,016 | 9,785 | |||||||
Commission expenses | 92,774 | $ 382,498 | $ 181,213 | $ 382,498 | $ 830,659 | |||||||
Agape Superior Living S D N B H D [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Goods and service tax description | The Goods and Services Tax (“GST”) was enforced from April 1, 2015 to June 1, 2018, where goods and services were subjected to a standard GST rate of 6%. The Malaysian tax authorities reverted to the Sales and Service Tax (“SST”) on September 1, 2018. The standard SST rates on products and services are 10% and 6%, respectively. | |||||||||||
Social Security Organization [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Salary percentage | 1.75% | 1.75% | 1.75% | 1.75% | ||||||||
Monthly salary | RM | RM 4,000 | RM 4,000 | ||||||||||
Employees Provident Fund [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Salary percentage | 12.00% | 12.00% | 12.00% | 12.00% | ||||||||
Employment Insurance System [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Salary percentage | 0.20% | 0.20% | 0.20% | 0.20% | ||||||||
Monthly salary | RM | RM 4,000 | |||||||||||
Human Resource Development Fund [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Salary percentage | 1.00% | 1.00% | 1.00% | 1.00% | ||||||||
Agape Superior Living S D N B H D [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Allowance for the doubtful accounts | $ 0 | 0 | $ 0 | |||||||||
Forfeited coupon income | 25,836 | $ 0 | 46,304 | $ 0 | ||||||||
Net revenues | 1,241,252 | 1,214,600 | 4,139,359 | 14,393,762 | ||||||||
Advertising costs | 23,740 | 49,232 | 267,543 | 26,110 | ||||||||
Defined contribution plan expense | 26,033 | 35,894 | 129,669 | 92,022 | ||||||||
Penalties and interest incurred | 0 | 0 | ||||||||||
Accumulated other comprehensive (loss) income | $ (25,534) | $ 75,637 | $ 75,637 | 81,108 | ||||||||
Foreign currency translation | 1 | 1 | 1 | |||||||||
Shipping and handling charges | $ 931 | 6,276 | $ 13,801 | 8,304 | ||||||||
Commission expenses | $ 411,266 | $ 601,205 | $ 1,611,172 | $ 7,045,419 | ||||||||
Foreign currency translation, description | The average translation rates applied to statement of income accounts for the years ended December 31, 2019 and 2018 were 4.14 RM and 4.03 RM to $1.00, respectively. Cash flows are also translated at average translation rates for the periods, therefore, amounts reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheet. | |||||||||||
Agape Superior Living S D N B H D [Member] | Employees Provident Fund [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Salary percentage | 12.00% | |||||||||||
Agape Superior Living S D N B H D [Member] | Employees Insurance System [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Salary percentage | 0.20% | |||||||||||
Agape Superior Living S D N B H D [Member] | Social Security Organization [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Salary percentage | 1.75% | 1.75% | ||||||||||
Agape Superior Living S D N B H D [Member] | Human Resource Development Fund [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Salary percentage | 1.00% | 100.00% | ||||||||||
Agape Superior Living S D N B H D [Member] | Employees Provident Fund [Member] | Minimum [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Salary percentage | 1200.00% | |||||||||||
Agape Superior Living S D N B H D [Member] | Employees Provident Fund [Member] | Maximum [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Salary percentage | 1300.00% | |||||||||||
Agape Superior Living S D N B H D [Member] | Employment Insurance System [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Salary percentage | 20.00% | |||||||||||
Agape Superior Living S D N B H D [Member] | Other Comprehensive Income (Loss) [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Foreign currency translation | 1 | 1 | ||||||||||
Agape Superior Living S D N B H D [Member] | Malaysian Ringgit [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Foreign currency translation | 4.33 | 4.09 | 4.09 | 4.13 | ||||||||
Agape Superior Living S D N B H D [Member] | Malaysian Ringgit [Member] | Employment Insurance System [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Monthly salary | $ 40 | |||||||||||
Agape Superior Living S D N B H D [Member] | Malaysian Ringgit [Member] | Social Security Organization [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Monthly salary | $ 4,000 | $ 4,000 | ||||||||||
Agape Superior Living S D N B H D [Member] | Malaysian Ringgit [Member] | Employees Provident Fund [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Monthly salary | 5,000 | |||||||||||
Agape Superior Living S D N B H D [Member] | Malaysian Ringgit [Member] | Employment Insurance System [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Monthly salary | 4,000 | |||||||||||
Agape Superior Living S D N B H D [Member] | Malaysian Ringgit [Member] | Other Comprehensive Income (Loss) [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Foreign currency translation | 4.21 | 4.08 | ||||||||||
Health And Wellness Products [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Net revenues | $ 68,550 | $ 116,541 | ||||||||||
Health And Wellness Products [Member] | Agape Superior Living S D N B H D [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Net revenues | $ 1,420,392 | 1,484,614 | ||||||||||
Health And Wellness Services [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Net revenues | 653 | 0 | 5,746 | 0 | ||||||||
Shipping and Handling [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Selling expenses | $ 2,990 | $ 2,555 | $ 5,272 | $ 2,555 | $ 0 | $ 9,315 | $ 0 |
SCHEDULE OF VARIABLE INTEREST E
SCHEDULE OF VARIABLE INTEREST ENTITY (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Trading Activity, Gains and Losses, Net [Line Items] | ||||||||||||
Current assets | $ 4,608,213 | $ 4,608,213 | $ 3,536,653 | $ 5,684,271 | $ 3,536,653 | |||||||
Current liabilities | (860,383) | (860,383) | (83,988) | (1,038,542) | (83,988) | |||||||
Net deficit | 4,874,328 | $ 5,552,900 | $ 5,200,096 | $ 4,027,306 | $ 5,024,352 | 4,874,328 | $ 5,200,096 | 4,251,286 | 5,924,834 | 4,251,286 | $ 4,956,334 | |
Cash and cash equivalents | 3,300,800 | 3,300,800 | 2,744,457 | 3,517,600 | 2,744,457 | |||||||
Prepaid taxes | 627,232 | 627,232 | 1,104,495 | |||||||||
Net assets | 5,892,107 | 5,892,107 | 4,335,274 | 7,210,607 | 4,335,274 | |||||||
Total current liabilities | 860,383 | 860,383 | 83,988 | 1,038,542 | 83,988 | |||||||
Operating revenues | 303,786 | 1,510,208 | 605,566 | 1,510,208 | 3,434,561 | |||||||
Gross profit | 268,163 | 1,052,308 | 492,352 | 1,052,308 | 45,883 | 2,676,766 | 89,302 | |||||
Income from operations | (408,997) | 46,192 | (751,507) | (113,324) | (266,387) | (158,135) | (314,592) | |||||
Net income (loss) | (642,225) | $ (333,650) | 87,240 | (231,750) | 71,215 | (975,875) | (144,510) | (338,931) | 354,766 | (716,127) | ||
Customer deposits | 1,215,004 | 1,215,004 | 1,112,147 | |||||||||
Taxes payable | 36,877 | 36,877 | ||||||||||
Agape Superior Living S D N B H D [Member] | ||||||||||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||||||||||
Current assets | 3,600,792 | 3,519,187 | 3,519,187 | 2,717,559 | ||||||||
Current liabilities | (2,301,330) | (2,418,539) | (2,418,539) | (2,343,970) | ||||||||
Net deficit | 1,804,046 | 552,765 | 1,707,641 | 1,707,641 | 795,335 | $ 2,103,430 | ||||||
Cash and cash equivalents | 1,206,493 | 1,030,829 | 1,030,829 | 1,544,525 | ||||||||
Prepaid taxes | 1,206,821 | 1,181,963 | 1,181,963 | 188,198 | ||||||||
Net assets | 4,105,376 | 4,126,180 | 4,126,180 | 3,158,206 | ||||||||
Total current liabilities | 2,301,330 | 2,418,539 | 2,418,539 | 2,343,970 | ||||||||
Operating revenues | 1,241,252 | 1,214,600 | 4,139,359 | 14,393,762 | ||||||||
Gross profit | 1,129,763 | 1,010,762 | 3,282,109 | 12,002,165 | ||||||||
Income from operations | 244,996 | (304,584) | (1,395,914) | 2,533,275 | ||||||||
Net income (loss) | 197,576 | (252,125) | (1,059,494) | 1,981,911 | ||||||||
Other payables - related party | 12,104 | 12,104 | 4,376 | |||||||||
Variable Income Interest Rate [Member] | ||||||||||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||||||||||
Current assets | 28,508 | 28,508 | 48,717 | |||||||||
Other assets | 7,985 | 7,985 | ||||||||||
Current liabilities | (51,028) | (51,028) | (53,573) | |||||||||
Net deficit | (14,535) | (14,535) | (4,856) | |||||||||
Cash and cash equivalents | 23,526 | 23,526 | 37,387 | |||||||||
Prepaid taxes | 4,982 | 4,982 | 11,330 | |||||||||
Net assets | 36,493 | 36,493 | 48,717 | |||||||||
Accounts payable - intercompany | 50,048 | 50,048 | 51,669 | |||||||||
Other payables and accrued liabilities | 980 | 980 | 1,904 | |||||||||
Total current liabilities | 51,028 | 51,028 | 53,573 | |||||||||
Operating revenues | 129,492 | 129,492 | 346,907 | |||||||||
Gross profit | 1,373 | 1,373 | 4,442 | |||||||||
Income from operations | (5,019) | (3,749) | (11,967) | (3,749) | (10,752) | |||||||
Net income (loss) | $ 1,912 | $ (18,139) | $ (9,949) | $ (18,139) | (24,014) | |||||||
Other payables - related party | $ 51,669 | |||||||||||
Variable Income Interest Rate [Member] | Agape Superior Living S D N B H D [Member] | ||||||||||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||||||||||
Current assets | 514,203 | 572,469 | 572,469 | 243,766 | ||||||||
Current liabilities | (495,419) | (547,627) | (547,627) | (216,187) | ||||||||
Net assets | 18,784 | 24,842 | 24,842 | 27,579 | ||||||||
Other payables and accrued liabilities | 3,408 | 4,896 | 4,896 | 978 | ||||||||
Total current liabilities | 495,419 | 547,627 | 547,627 | 216,187 | ||||||||
Operating revenues | 9,581 | 448,401 | 1,382,516 | 883,216 | ||||||||
Gross profit | 190 | (1,755) | 47,800 | 138,508 | ||||||||
Income from operations | (4,770) | (7,133) | 26,613 | 119,849 | ||||||||
Net income (loss) | (4,803) | $ (14,168) | (2,956) | 144,042 | ||||||||
Other payables - related party | 346 | 993 | 993 | 984 | ||||||||
Accounts payable | 491,628 | 520,786 | 520,786 | |||||||||
Customer deposits | 20,912 | 20,912 | 214,199 | |||||||||
Taxes payable | 37 | 40 | 40 | 26 | ||||||||
Total current liabilities | $ 495,419 | $ 547,627 | $ 547,627 | $ 216,187 |
VARIABLE INTEREST ENTITY (_VI_3
VARIABLE INTEREST ENTITY (“VIE”) (Details Narrative) | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Agape Superior Living S D N B H D [Member] | ||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||
Ownership interest percentage | 100.00% | 100.00% | ||
Subsidiary Company Three [Member] | ||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||
Ownership interest percentage | 100.00% | 100.00% |
SUMMARY OF ASSETS ACQUIRED AND
SUMMARY OF ASSETS ACQUIRED AND LIABILITIES ASSUMED (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Business Combination and Asset Acquisition [Abstract] | ||
Cash | $ 1,206,493 | $ 1,206,493 |
Other receivables | 33,210 | 33,210 |
Other receivables - related parties | 219,121 | 219,121 |
Inventories | 616,880 | 616,880 |
Prepaid taxes | 1,206,821 | 1,206,821 |
Prepayments and other assets | 318,267 | 318,267 |
Total current assets | 3,600,792 | 3,600,792 |
Property and equipment, net | 325,648 | 325,648 |
Intangible assets, net | 6,686 | 6,686 |
Deferred taxes asset, net | 172,250 | 172,250 |
Total other assets | 504,584 | 504,584 |
Total assets | 4,105,376 | 4,105,376 |
Accounts payable - related party | 491,628 | 491,628 |
Customer deposits | 1,600,606 | 1,600,606 |
Other payables and accrued liabilities | 209,096 | 209,096 |
Total current liabilities | 2,301,330 | 2,301,330 |
Total liabilities | 2,301,330 | 2,301,330 |
Total net assets acquired | $ 1,804,046 | $ 1,804,046 |
SCHEDULE OF PRO FORMA BUSINESS
SCHEDULE OF PRO FORMA BUSINESS COMBINATION (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Business Combination and Asset Acquisition [Abstract] | ||||
Revenue | $ 2,765,114 | $ 2,246,458 | $ 4,693,873 | $ 4,160,820 |
Cost of revenue | (571,407) | (479,410) | (875,708) | (789,409) |
Gross profit | 2,193,707 | 1,767,048 | 3,818,165 | 3,371,411 |
Total operating expenses | (2,055,016) | (2,468,902) | (3,839,184) | (5,081,917) |
Income (loss) from operations | 138,691 | (701,854) | (21,019) | (1,710,506) |
Other income (expense), net | 110,912 | (146,649) | 267,633 | (384,304) |
Income (loss) before income taxes | 249,603 | (848,503) | 246,614 | (2,094,810) |
Benefit of (Provision for) income taxes | (184,900) | 117,009 | (212,414) | 319,189 |
Net income (loss) | $ 64,703 | $ (731,494) | $ 34,200 | $ (1,775,621) |
Net income (loss) per common share - basic and diluted | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average number of common shares outstanding - basic and diluted | 376,452,047 | 376,452,047 | 376,452,047 | 376,452,047 |
BUSINESS COMBINATION (Details N
BUSINESS COMBINATION (Details Narrative) - USD ($) | Jul. 02, 2020 | May 08, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | Jun. 30, 2021 | Dec. 13, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Mar. 10, 2019 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Common stock par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Cash and cash equivalents | $ 3,517,600 | $ 3,300,800 | $ 2,744,457 | ||||||
Cash in bank | 1,112,147 | 1,215,004 | 238,937 | ||||||
Time deposits | $ 2,391,182 | $ 2,077,345 | $ 2,505,520 | ||||||
Minimum [Member] | |||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Ownership interest percentage | 17.86% | ||||||||
Percentage of Interest rate for time deposits | 1.80% | 2.95% | 2.95% | ||||||
Maximum [Member] | |||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Ownership interest percentage | 20.00% | ||||||||
Percentage of Interest rate for time deposits | 2.15% | 3.25% | 3.25% | ||||||
Mr. How Kok Choong [Member] | |||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Purchased price per shares | $ 6.50 | ||||||||
Share Exchange Agreement [Member] | Mr. How Kok Choong [Member] | |||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Stock issued during period acquisitions, shares | 9,590,596 | ||||||||
Ownership interest percentage | 99.99% | ||||||||
Purchase consideration value | $ 1,804,046 | ||||||||
Loan payable | $ 656,495 | ||||||||
Issuance of common stock shares | 176,547 | ||||||||
Share Exchange Agreement [Member] | Mr. How Kok Choong [Member] | Agape Superior Living S D N B H D [Member] | |||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Stock issued during period acquisitions, shares | 176,547 | ||||||||
Ordinary shares no par value | $ 0 | ||||||||
Ownership interest percentage | 99.99% | ||||||||
Purchase consideration value | $ 1,804,046 | ||||||||
Loan payable | $ 656,495 | ||||||||
Issuance of common stock shares | 176,547 | 176,547 | |||||||
Common stock par value | $ 0.0001 | ||||||||
Percentage of common stock issued and outstanding | 0.0469% | ||||||||
Stock issued during period, value, acquisitions | $ 1,147,551 |
CASH AND CASH EQUIVALENTS (Deta
CASH AND CASH EQUIVALENTS (Details Narrative) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 13, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Cash and cash equivalents | $ 3,300,800 | $ 3,517,600 | $ 2,744,457 | ||
Cash on hand | 1,215,004 | 1,112,147 | 238,937 | ||
Time deposits | $ 2,077,345 | $ 2,391,182 | $ 2,505,520 | ||
Minimum [Member] | |||||
Percentage of Interest rate for time deposits | 1.80% | 2.95% | 2.95% | ||
Maximum [Member] | |||||
Percentage of Interest rate for time deposits | 2.15% | 3.25% | 3.25% |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLES (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Credit Loss [Abstract] | |||
Accounts receivable | $ 172,757 | ||
Allowance for doubtful accounts | |||
Total | $ 172,757 |
SCHEDULE OF INVENTORIES (Detail
SCHEDULE OF INVENTORIES (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Finished goods | $ 490,275 | $ 589,814 | |||
Agape Superior Living S D N B H D [Member] | |||||
Finished goods | $ 616,880 | $ 552,901 | $ 137,553 |
INVENTORIES (Details Narrative)
INVENTORIES (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | ||||
Inventory write-down | $ 36,636 | $ 0 | $ 0 |
SCHEDULE OF PREPAID EXPENSES AN
SCHEDULE OF PREPAID EXPENSES AND DEPOSITS (Details) - USD ($) | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables from sales distributors | $ 32,820 | $ 35,302 | ||||
Deposits to supplier | 273,109 | 261,068 | 266,552 | |||
Subtotal | 305,929 | 296,370 | ||||
Less: Provision for doubtful accounts | (121,622) | |||||
Prepayments and deposits | 184,307 | 296,370 | 269,193 | |||
Prepaid expenses | 2,641 | |||||
Total | $ 184,307 | $ 296,370 | 269,193 | |||
Agape Superior Living S D N B H D [Member] | ||||||
Deposits to supplier | $ 274,558 | 396,731 | $ 429,456 | |||
Prepayments and deposits | 318,267 | 484,880 | 468,850 | |||
Total | 318,267 | 484,880 | 468,850 | |||
Deposits to service providers | $ 43,709 | $ 88,149 | $ 39,394 |
SCHEDULE OF CHANGES IN ALLOWANC
SCHEDULE OF CHANGES IN ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Prepayments And Deposits | |||
Beginning balance | |||
Addition | 121,686 | 121,686 | |
Write off | |||
Exchange rate effect | (64) | (64) | |
Ending balance | $ 121,622 | $ 121,622 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | |||
Subtotal | $ 506,312 | $ 521,463 | |
Less: accumulated depreciation | (253,871) | (223,154) | |
Total | 252,441 | 298,309 | |
Total | 252,441 | 298,309 | |
Computer and Office Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal | 80,087 | 81,437 | |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal | 122,984 | 126,966 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal | 203,894 | 210,496 | |
Vehicle [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal | $ 99,347 | $ 102,564 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Depreciation expense | $ 19,009 | $ 17,716 | $ 38,179 | $ 17,716 | $ 55,407 | |||||
Agape Superior Living S D N B H D [Member] | ||||||||||
Depreciation expense | $ 19,820 | $ 21,257 | $ 74,702 | $ 28,715 |
SCHEDULE OF INTANGIBLE ASSETS,
SCHEDULE OF INTANGIBLE ASSETS, NET (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Computer software | $ 34,678 | $ 35,801 | |||
Less: accumulated amortization | (30,029) | (29,975) | |||
Total | 4,649 | 5,826 | |||
Less: accumulated amortization | 30,029 | 29,975 | |||
Total | $ 4,649 | $ 5,826 | |||
Agape Superior Living S D N B H D [Member] | |||||
Computer software | $ 33,012 | 139,798 | $ 135,916 | ||
Less: accumulated amortization | 26,326 | 132,206 | 124,889 | ||
Total | 6,686 | 7,592 | 11,027 | ||
Less: accumulated amortization | (26,326) | (132,206) | (124,889) | ||
Total | $ 6,686 | $ 7,592 | $ 11,027 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Amortization expense | $ 496 | $ 482 | $ 1,006 | $ 482 | $ 0 | $ 1,505 | $ 0 | |||
Agape Superior Living S D N B H D [Member] | ||||||||||
Amortization expense | $ 494 | $ 1,621 | $ 6,077 | $ 5,709 |
SCHEDULE OF INVESTMENT IN MARKE
SCHEDULE OF INVESTMENT IN MARKETABLE SECURITIES (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Investment In Marketable Securities | |||
Cost of investment | $ 577,035 | $ 66,484 | $ 134,166 |
Dividend income from Greenpro Capital Corp. | 160,062 | ||
Unrealized holding (loss) gain | (165,731) | 350,137 | |
Exchange rate effect | (835) | 352 | 709 |
Investment in marketable securities | $ 410,469 | 577,035 | 66,484 |
Unrealized holding gain (loss) | $ 350,137 | $ (68,391) |
INVESTMENT IN MARKETABLE SECU_3
INVESTMENT IN MARKETABLE SECURITIES (Details Narrative) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 09, 2020 | Nov. 03, 2020 | Dec. 31, 2019 | Oct. 16, 2018 | Jul. 30, 2018 | May 17, 2018 |
Investment amount | $ 577,035 | $ 66,484 | $ 134,166 | |||||
Greenpro Capital Corp [Member] | ||||||||
Investment in securities, shares | 33,333 | 20 | 83,333 | |||||
Investment amount | $ 1,000 | $ 125 | $ 500,000 | |||||
Purchased price per shares | $ 0.03 | $ 6.2613 | $ 6 | |||||
D Swiss Inc [Member] | ||||||||
Investment in securities, shares | 16,663 | 6,667 | ||||||
Investment amount | $ 83,315 | $ 76,671 | ||||||
Purchased price per shares | $ 5 | $ 11.50 |
SCHEDULE OF INVESTMENT IN NON M
SCHEDULE OF INVESTMENT IN NON MARKETABLE SECURITIES (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 03, 2019 |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Cost of investment | $ 577,035 | $ 66,484 | $ 134,166 | |
Total investment in non-marketable securities | 1,500 | 1,500 | 732,137 | |
Phoenix Plus Corporation [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Cost of investment | 1,500 | 1,500 | 1,500 | $ 1,500 |
Total investment in non-marketable securities | 1,500 | 1,500 | 732,137 | |
Directors of Unreserved Investments [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
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 |
INVESTMENT IN NON-MARKETABLE _3
INVESTMENT IN NON-MARKETABLE SECURITIES (Details Narrative) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2020USD ($) | Jun. 30, 2021USD ($)shares | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | Jun. 30, 2021MYR (RM)shares | Dec. 31, 2020MYR (RM)shares | Mar. 03, 2020 | Apr. 03, 2019USD ($)$ / sharesshares | Mar. 10, 2019 | |
Investment amount | $ 577,035 | $ 134,166 | $ 66,484 | $ 134,166 | |||||||
Ordinary shares authorized | shares | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |||||
Proceeds from investments | $ 70,173 | $ 70,173 | $ 70,173 | ||||||||
Phoenix Plus Corporation [Member] | |||||||||||
Investment amount | 1,500 | 1,500 | 1,500 | 1,500 | $ 1,500 | ||||||
Equity interest percentage | 5.00% | ||||||||||
Shares Issued, Price Per Share | $ / shares | $ 0.0001 | ||||||||||
Phoenix Plus Corporation [Member] | Common Stock [Member] | |||||||||||
Shares purchased during period | shares | 15,000,000 | ||||||||||
Maximum [Member] | |||||||||||
Equity interest percentage | 20.00% | ||||||||||
Minimum [Member] | |||||||||||
Equity interest percentage | 17.86% | ||||||||||
Director [Member] | |||||||||||
Investment amount | $ 863,592 | $ 863,592 | RM 3,500,000 | RM 3,500,000 | |||||||
Equity interest percentage | 20.00% | 20.00% | 20.00% | 20.00% | |||||||
Mr. How Kok Choong [Member] | |||||||||||
Investment amount | 730,637 | 730,637 | |||||||||
Ordinary shares authorized | shares | 2,500,000 | 2,500,000 | 2,500,000 | 2,500,000 | |||||||
Amount due from director | $ 660,464 | ||||||||||
Investment amount | $ 30,637 | $ 30,637 | |||||||||
Unreserved Sdn Bhd [Member] | |||||||||||
Equity interest percentage | 17.86% |
SCHEDULE OF OTHER PAYABLES AND
SCHEDULE OF OTHER PAYABLES AND ACCRUED LIABILITIES (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Professional fees | $ 151,269 | $ 297,636 | $ 58,594 | ||
Promotion expenses | 36,259 | 37,433 | |||
Payroll | 22,730 | 23,976 | |||
Commission | 231,603 | 224,711 | |||
Others | 63,689 | 63,921 | 18,652 | ||
Total | 505,550 | 647,677 | 77,246 | ||
Payables to non-trade vendors and service providers | $ 505,550 | $ 647,677 | 77,246 | ||
Agape Superior Living S D N B H D [Member] | |||||
Payables to non-trade vendors and service providers | $ 209,096 | $ 252,902 | $ 968,547 |
SCHEDULE OF RELATED PARTIES (De
SCHEDULE OF RELATED PARTIES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | |
Related Party Transaction [Line Items] | ||||||||
Amount due from related parties | $ 5,599 | $ 5,599 | $ 2,217 | $ 3,235 | $ 2,217 | |||
Amount due to a Related Party | 3,952 | 455 | 3,952 | |||||
Revenue | $ 13,654 | $ 13,654 | 429,362 | 18,060 | 1,290,131 | |||
Other income | 1,458 | $ 2,929 | $ 2,881 | |||||
Accounts receivable - related party | 520,786 | $ 520,786 | ||||||
SEA [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Nature | Sales of products | |||||||
Agape ATP (Asia) Limited [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Relationship | Mr. How Kok Choong, the CEO and director of the Company is also the sole shareholder and director of AATP Asia | Mr. How Kok Choong, the CEO and director of the Company is also the sole shareholder and director of AATP Asia | Mr. How Kok Choong, the CEO and director of the Company is also the sole shareholder and director of AATP Asia | |||||
Nature | Expenses paid for AATP Asia | Expenses paid for AATP Asia | Expenses paid for AATP Asia | |||||
Amount due from related parties | 2,224 | $ 2,224 | 2,217 | $ 2,227 | $ 2,217 | |||
Hostastay Sdn Bhd [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Relationship | Mr. How Kok Choong, the CEO and director of the Company is also the director of Hostastay | Mr. How Kok Choong, the CEO and director of the Company is also the director of Hostastay | Mr. How Kok Choong, the CEO and director of the Company is also the director of Hostastay | |||||
Nature | Sublease rent due from Hostastay | Sublease rent due from Hostastay | Sublease rent due from Hostastay | |||||
Amount due from related parties | 3,375 | $ 3,375 | $ 996 | |||||
T H Three Technology Sdn Bhd [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Relationship | Mr. How Kok Choong, the CEO and director of the Company is also the director of TH3 Technology | Mr. How Kok Choong, the CEO and director of the Company is also the director of TH3 Technology | Mr. How Kok Choong, the CEO and director of the Company is also the director of TH3 Technology | |||||
Nature | Expenses paid for TH3 Technology | Expenses paid for TH3 Technology | Expenses paid for TH3 Technology | |||||
Amount due from related parties | $ 12 | |||||||
Agape Superior Living Pty Ltd [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Relationship | Mr. How Kok Choong, the CEO and director of the Company | Mr. How Kok Choong, the CEO and director of the Company | Mr. How Kok Choong, the CEO and director of the Company | |||||
Nature | ATP Printing label fees | ATP Printing label fees | ATP Printing Label fees | |||||
Amount due to a Related Party | $ 455 | |||||||
Agape Superior Living Pty Ltd ASLPL [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Relationship | Mr. How Kok Choong, the CEO and director of the Company is a 51% shareholder and a director of ASLPL | Mr. How Kok Choong, the CEO and director of the Company is a 51% shareholder and a director of ASLPL | Mr. How Kok Choong, the CEO and director of the Company is a 51% shareholder and a director of ASLPL | Mr. How Kok Choong, the CEO and director of the Company is a 51% shareholder and a director of ASLPL | Mr. How Kok Choong, the CEO and director of the Company is a 51% shareholder and a director of ASLPL | Mr. How Kok Choong, the CEO and director of the Company is a 51% shareholder and a director of ASLPL | ||
Nature | Sale of products | Sale of products | Sale of products | Sale of products | Sales of products | Sales of products | ||
Revenue | $ 13,654 | $ 13,654 | $ 18,060 | $ 21,461 | ||||
Hostastay Sdn Bhd One [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Relationship | Mr. How Kok Choong, the CEO and director of the Company is also the director of Hostastay | Mr. How Kok Choong, the CEO and director of the Company is also the director of Hostastay | Mr. How Kok Choong, the CEO and director of the Company is also the director of Hostastay | Mr. How Kok Choong, the CEO and director of the Company is also the director of Hostastay | Mr. How Kok Choong, the CEO and director of the Company is also the director of Hostastay | Mr. How Kok Choong, the CEO and director of the Company is also the director of Hostastay | ||
Nature | Sublease rental income due from Hostastay | Sublease rental income due from Hostastay | Sublease rental income due from Hostastay | Sublease rental income due from Hostastay | Sublease rental income due from Hostastay | Sublease rental income due from Hostastay | ||
Other income | $ 1,458 | $ 2,929 | $ 2,881 | |||||
SEA [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Relationship | VIE of ASL, Mr. How Kok Choong, the CEO and director of the Company is the sole shareholder and director of SEA | VIE of ASL, Mr. How Kok Choong, the CEO and director of the Company is the sole shareholder and director of SEA | ||||||
Nature | Sales of products | Sales of products | ||||||
Revenue | 429,362 | $ 1,268,670 | ||||||
Accounts receivable - related party | 520,786 | $ 520,786 | ||||||
Mr. How Kok Choong [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Relationship | CEO and director of the Company | CEO and director of the Company | ||||||
Nature | Acquisition payment of ASL and expenses paid for the Company | Acquisition payment of ASL and expenses paid for the Company | ||||||
Amount due to a Related Party | $ 3,952 | $ 3,952 |
STOCKHOLDERS_ EQUITY (Details N
STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jul. 31, 2020 | May 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||||||||
Preferred stock, shares authorized | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | ||||
Preferred stock, shares issued | 0 | 0 | 0 | 0 | 0 | ||||
Preferred stock, shares outstanding | 0 | 0 | 0 | 0 | 0 | ||||
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | ||||
Common stock, shares issued | 376,452,047 | 376,452,047 | 376,275,500 | 376,452,047 | 376,275,500 | ||||
Common stock, shares outstanding | 376,452,047 | 376,452,047 | 376,275,500 | 376,452,047 | 376,275,500 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | $ 4,105,376 | $ 4,105,376 | $ 4,105,376 | ||||||
Potentially dilutive securities outstanding | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
ASL [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Stock issued during period acquisitions, shares | 13,853 | 162,694 | 13,853 | 13,853 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | $ 90,043 | $ 90,043 | $ 90,043 | ||||||
Business acquisition percentage of voting interests | 99.99% | 99.99% | 99.99% | ||||||
Non controlling interests | $ 0 | $ 0 |
SCHEDULE OF COMPONENTS OF INCOM
SCHEDULE OF COMPONENTS OF INCOME/(LOSS) BEFORE INCOME TAX (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 18 Months Ended | |||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | |
Loss before income tax | $ (638,254) | $ 221,307 | $ (965,784) | $ 516,347 | $ (10,443) | $ (338,931) | $ 516,347 | $ (723,092) | |
UNITED STATES | |||||||||
Local | (96,370) | (161,751) | (204,295) | (304,170) | (279,476) | (735,159) | (321,808) | ||
MALAYSIA | |||||||||
Foreign | (177,983) | 369,367 | (469,675) | 313,780 | $ (4,174) | 1,070,806 | 38,625 | ||
HONG KONG | |||||||||
Foreign | $ (363,901) | $ 13,691 | $ (291,814) | $ (20,053) | $ 180,700 | $ (439,909) | $ (55,281) |
SCHEDULE OF PROVISION FOR INCOM
SCHEDULE OF PROVISION FOR INCOME TAX (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||||||
- U.S. | $ (22,205) | $ (22,205) | |||||
- Foreign | (14,461) | (41,185) | 16,748 | 6,965 | |||
- U.S. | |||||||
- Foreign | 32,695 | (134,067) | 53,299 | (134,067) | (178,329) | ||
Provision for income taxes | (3,971) | (134,067) | (10,091) | (134,067) | (161,581) | 6,965 | |
(Provision for) benefit of income taxes | $ (3,971) | $ (134,067) | $ (10,091) | $ (134,067) | $ (161,581) | $ 6,965 |
SCHEDULE OF DEFERRED TAX ASSETS
SCHEDULE OF DEFERRED TAX ASSETS (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Less: valuation allowance | $ (42,902) | ||
Depreciation | (68,421) | ||
Deferred tax assets (liabilities), net | 47,090 | 5,743 | |
Deferred tax assets (liabilities), net | (47,090) | (5,743) | |
Less: valuation allowance | (65,648) | (43,410) | |
Deferred tax assets, net | (5,743) | ||
UNITED STATES | |||
Net operating loss carry forwards | 42,902 | ||
Net operating loss carry forwards | 65,648 | 43,410 | |
Less: valuation allowance | (66,000) | (43,000) | |
MALAYSIA | |||
Net operating loss carry forwards | $ 47,090 | $ 62,678 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | Jan. 02, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Loss Carryforwards [Line Items] | |||||||||
Tax percentage | 21.00% | 21.00% | 21.00% | ||||||
Tax rate description | In addition, the Tax Cuts and Jobs Act imposed a global intangible low-taxed income (“GILTI”) tax, which is a tax on certain off-shore earnings at an effective rate of 10.5% for tax years (50% deduction of the current enacted tax rate of 21%) with a partial offset for 80% foreign tax credits. If the foreign tax rate is 13.125% or higher, there will be no U.S. corporate tax after the 80% foreign tax credits are applied. | In addition, the Tax Cuts and Jobs Act imposed a global intangible low-taxed income (“GILTI”) tax, which is a tax on certain off-shore earnings at an effective rate of 10.5% for tax years (50% deduction of the current enacted tax rate of 21%) with a partial offset for 80% foreign tax credits. If the foreign tax rate is 13.125% or higher, there will be no U.S. corporate tax after the 80% foreign tax credits are applied. | |||||||
Tax benefit | $ 3,971 | $ 134,067 | $ 10,091 | $ 134,067 | $ 161,581 | $ (6,965) | |||
Income tax interest and penalties | 395 | $ 0 | 395 | $ 0 | $ 0 | 0 | $ 0 | ||
Cumulative net operating loss | 312,608 | ||||||||
Deferred tax assets operating loss carryforwards | 65,648 | 65,648 | |||||||
Cumulative net operating losses, utilized and reduced | 0 | 0 | |||||||
Cumulative net operating loss | 10,000 | ||||||||
Deferred Tax Asset, Valuation Allowance | 42,902 | 42,902 | |||||||
Effective Income Tax Rate Reconciliation, Percent | 0.00% | 31.30% | 1.00% | ||||||
Operating loss carryforwards expire year | 2027 | ||||||||
Deferred tax assets, valuation | $ 43,410 | $ 65,648 | $ 43,410 | ||||||
Unrecognized tax benefits | 0 | 0 | 0 | ||||||
Unrecognized interest and penalties tax expense | $ 0 | 0 | |||||||
If Unutilized [Member] | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Cumulative net operating loss | 24,000 | 24,000 | |||||||
Operating loss carryforwards expire year | 2028 | ||||||||
UNITED STATES | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Cumulative net operating loss | 213,000 | $ 313,000 | 213,000 | ||||||
Deferred tax assets, valuation | $ 43,000 | 66,000 | $ 43,000 | ||||||
UNITED STATES | Subpart F and GILTI taxes [Member] | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Cumulative net operating loss | 204,000 | 204,000 | 0 | ||||||
Deferred Tax Asset, Valuation Allowance | 43,000 | $ 43,000 | $ 0 | ||||||
Labuan [Member] | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Tax percentage | 24.00% | ||||||||
Effective Income Tax Rate Reconciliation, Percent | 3.00% | ||||||||
MALAYSIA | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Tax percentage | 17.00% | ||||||||
Income tax examination, description | The tax rate for small and medium sized companies (generally companies incorporated in Malaysia with paid-in capital of RM 2,500,000 or less) is 17% for the first RM 600,000 (or approximately $150,000) for the three and six months ended June 30, 2021 and RM 500,000 (or approximately $125,000) income for the three and six months ended June 30, 2020, with the remaining balance being taxed at the 24% rate. | The tax rate for small and medium sized companies (generally companies incorporated in Malaysia with paid-in capital of RM 2,500,000 or less) is 17% for the first RM 600,000 (or approximately $150,000) for the year ended December 31, 2020 and RM 500,000 (or approximately $125,000) income for the six months and year ended December 31, 2019, with the remaining balance being taxed at the 24% rate. | |||||||
HONG KONG | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Tax percentage | 16.50% | 16.50% | |||||||
State and Local Jurisdiction [Member] | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Tax percentage | 21.00% | 21.00% | |||||||
Foreign Tax Authority [Member] | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Tax percentage | 35.00% | 35.00% | |||||||
Tax benefit | $ 134,000 | ||||||||
Cumulative net operating loss | $ 636,000 | ||||||||
Domestic Tax Authority [Member] | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Tax benefit | $ 22,205 | $ 22,205 |
CONCENTRATIONS OF RISKS (Detail
CONCENTRATIONS OF RISKS (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 18 Months Ended | |||||||
Dec. 31, 2020 | Nov. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 29, 2021 | Sep. 30, 2020 | Mar. 10, 2019 | |
Concentration Risk [Line Items] | ||||||||||||
Deposits | $ 1,112,147 | $ 1,215,004 | $ 1,215,004 | $ 1,112,147 | ||||||||
Deposit for insurance | 563,788 | 776,485 | 776,485 | $ 0 | 563,788 | $ 0 | ||||||
[custom:CommissionExpensePercentage-0] | 100.00% | |||||||||||
Cash in bank | 1,112,147 | $ 1,215,004 | $ 1,215,004 | $ 238,937 | $ 1,112,147 | $ 238,937 | ||||||
Maximum [Member] | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Proportional of ownership interest and voting power held | 20.00% | |||||||||||
D Swiss Inc [Member] | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
ividend received | $ 23,330 | $ 23,330 | ||||||||||
Proportional of ownership interest and voting power held | 0.01% | 0.01% | 0.01% | |||||||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Vendor One [Member] | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Concentrations of risk percentage | 59.00% | 74.10% | 60.10% | |||||||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Vendor Two [Member] | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Concentrations of risk percentage | 41.00% | 25.90% | 39.90% | |||||||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | E-commerce [Member] | Customer [Member] | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Concentrations of risk percentage | 10.00% | 10.00% | 10.00% | 10.00% | ||||||||
Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | One Sales Distributor [Member] | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Concentrations of risk percentage | 21.90% | 16.20% | ||||||||||
Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | Sales Distributor [Member] | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Concentrations of risk percentage | 10.00% | 10.00% | ||||||||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | E-commerce [Member] | Third Party [Member] | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Concentrations of risk percentage | 100.00% | 100.00% | ||||||||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | E-commerce [Member] | One Related Party [Member] | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Concentrations of risk percentage | 100.00% | |||||||||||
Accounts Payable [Member] | Customer Concentration Risk [Member] | Sales Distributor [Member] | Commission Expenses [Member] | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Concentrations of risk percentage | 10.00% | |||||||||||
Accounts Payable [Member] | Supplier Concentration Risk [Member] | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Concentrations of risk percentage | 100.00% | 100.00% | ||||||||||
Accounts Payable [Member] | Supplier Concentration Risk [Member] | One Vendor [Member] | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Concentrations of risk percentage | 100.00% | 100.00% | ||||||||||
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | No Customer [Member] | Maximum [Member] | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Concentrations of risk percentage | 10.00% | |||||||||||
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | One Customer [Member] | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Concentrations of risk percentage | 100.00% | 98.30% |
SCHEDULE OF LEASE COMMITMENTS (
SCHEDULE OF LEASE COMMITMENTS (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
2021 | $ 162,318 | $ 172,191 |
2022 | 153,835 | 168,890 |
2023 | 8,323 | 83,259 |
Total lease payments | 324,476 | 424,340 |
Less: interest | (17,868) | (28,576) |
Present value of lease liabilities | $ 306,608 | 395,764 |
Thereafter |
SCHEDULE OF PURCHASE COMMITMENT
SCHEDULE OF PURCHASE COMMITMENTS (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
2021 | $ 693,900 | $ 693,900 |
2022 | 693,900 | 693,900 |
2023 | 693,900 | 693,900 |
2024 | 693,900 | 693,900 |
2025 | 693,900 | 693,900 |
Thereafter | 1,040,850 | 1,387,800 |
Total minimum purchase commitments required | $ 4,510,350 | $ 4,857,300 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | May 31, 2021 | Apr. 02, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 03, 2020 |
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Operating lease liability | $ 306,608 | $ 306,608 | $ 395,764 | ||||||||||
Lease expiration term | May 31, 2023 | ||||||||||||
Reduction in ROU assets and liabilities | $ 3,286 | ||||||||||||
Rent expenses | $ 45,560 | $ 52,672 | $ 91,521 | $ 66,180 | $ 26,828 | 156,716 | $ 53,594 | ||||||
Operating lease payments | $ 4,654 | ||||||||||||
Commitments, Description | On February 16, 2021, Prime Minister, Tan Sri Muhyiddin Yassin announced that a National COVID-19 Immunisation Plan will be implemented for one year after February 2021, which 80% of the Malaysia population will be vaccinated to achieve herd immunization. On March 5, 2021, lockdowns in most part of the country was eased to a CMCO. As at the date of this report, over 450,000 doses of the COVID-19 vaccines have been administered in the country. | ||||||||||||
Agape Superior Living S D N B H D [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Rent expenses | $ 44,338 | $ 43,982 | $ 175,755 | $ 125,309 | |||||||||
C O V I D Nineteen Impact [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
COVID-19 impact description | On May 12, 2021, Malaysia was again put under a full lockdown nationwide, until the earlier of (i) daily COVID-19 cases infection of the country fall below 4,000; (ii) intensive Unit Care, or ICU, wards start operating at a moderate level; or (iii) 10% of the Malaysian population is fully vaccinated. The country is administering over 400,000 doses of COVID-19 vaccines daily. On July 17, 2021, the full lockdown was slightly eased as 13.9% of the Malaysian population was fully vaccinated, with another 30% having received at least one dose of the vaccine. | ||||||||||||
Training Center [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Lease expiration term | August 31, 2023 | ||||||||||||
ASL [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Operating lease liability | $ 490,000 | $ 506,000 | |||||||||||
Operating lease effective interest rate | 5.50% | 5.50% | |||||||||||
Operating lease, weighted average remaining lease term | 2 years 6 months 14 days | 2 years 14 days | 2 years 14 days | ||||||||||
Operating lease effective interest rate | 5.50% |
SCHEDULE OF ACCOUNTS RECEIVAB_2
SCHEDULE OF ACCOUNTS RECEIVABLES - RELATED PARTY (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | |||
Accounts receivable | $ 172,757 | ||
Accounts receivable – related party | 520,786 | ||
Total | $ 172,757 | $ 520,786 |
SCHEDULE OF EFFECTIVE INCOME TA
SCHEDULE OF EFFECTIVE INCOME TAX RATE (Details) | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Income Tax Disclosure [Abstract] | ||||
U.S. statutory rate | 21.00% | 21.00% | 21.00% | |
Valuation allowance | (21.00%) | (4.00%) | (21.00%) | |
Differential tax rate in Malaysia | 0.00% | 3.00% | 0.00% | |
Permanent difference | 0.00% | 11.30% | [1] | 1.00% |
Effective tax rate | 0.00% | 31.30% | 1.00% | |
[1] | 10.2 0.2 1.3 |
SCHEDULE OF EFFECTIVE INCOME _2
SCHEDULE OF EFFECTIVE INCOME TAX RATE (Details) (Parenthetical) | 12 Months Ended |
Dec. 31, 2020 | |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Percent | 10.20% |
Agape ATP International Holding Limited [Member] | |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Percent | 0.20% |
Agape A T P Corporation [Member] | |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Percent | 1.30% |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | Jul. 02, 2020 | May 08, 2020 | Mar. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2021 | Jan. 25, 2021 |
Subsequent Event [Line Items] | ||||||||
Accounts Receivable, after Allowance for Credit Loss, Current | $ 172,757 | |||||||
Value of additional shares issued | $ 1,057,508 | $ 1,147,551 | ||||||
Vettons Sdn Bhd [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Accounts Receivable, after Allowance for Credit Loss, Current | $ 172,757 | |||||||
Vettons Sdn Bhd [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | Vettons [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Concentration Risk, Percentage | 100.00% | |||||||
Agape Superior Living S D N B H D [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Proportional of ownership interest and voting power held | 100.00% | 100.00% | ||||||
Net assets carrying value increased | $ 90,043 | |||||||
Mr. How Kok Choong [Member] | Share Exchange Agreement [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Proportional of ownership interest and voting power held | 99.99% | |||||||
Stock issued during period acquisitions, shares | 9,590,596 | |||||||
Purchase consideration value | $ 1,804,046 | |||||||
Value of additional shares issued | $ 1,147,551 | |||||||
Issuance of common stock shares | 176,547 | |||||||
Mr. How Kok Choong [Member] | Agape Superior Living S D N B H D [Member] | Share Exchange Agreement [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Purchase consideration value | $ 1,714,003 | |||||||
Payment of common stock | 656,495 | |||||||
Value of additional shares issued | $ 1,057,508 | |||||||
Subsidiary ownership percentage | 99.99% | |||||||
Mr. How Kok Choong [Member] | Agape Superior Living S D N B H D [Member] | Share Exchange Agreement [Member] | Agape A T P Corporation [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Proportional of ownership interest and voting power held | 100.00% | |||||||
Ordinary shares no par value | $ 0 | |||||||
Mr. How Kok Choong [Member] | Agape Superior Living S D N B H D [Member] | Share Exchange Agreement [Member] | Agape A T P Corporation [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Proportional of ownership interest and voting power held | 99.99% | |||||||
Stock issued during period acquisitions, shares | 95,905.96 | |||||||
Subsequent Event [Member] | Sellers [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Proportional of ownership interest and voting power held | 51.00% | |||||||
Subsequent Event [Member] | Mr. How Kok Choong [Member] | Agape Superior Living S D N B H D [Member] | Share Exchange Agreement [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Value of additional shares issued | $ 90,043 | |||||||
Issuance of common stock shares | 13,853 | |||||||
Shares issued, price per share | $ 6.50 |
SCHEDULE OF ESTIMATED USEFUL _3
SCHEDULE OF ESTIMATED USEFUL LIVES OF INTANGIBLE ASSETS (Details) - Computer Software, Intangible Asset [Member] | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Estimated useful lives of intangible assets | 5 years | 5 years | ||
Agape Superior Living S D N B H D [Member] | ||||
Estimated useful lives of intangible assets | 5 years | 5 years |
SCHEDULE OF DISAGGREGATED INFOR
SCHEDULE OF DISAGGREGATED INFORMATION OF REVENUES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Product Information [Line Items] | ||||||||||
Net revenues | $ 303,786 | $ 1,510,208 | $ 605,566 | $ 1,510,208 | $ 3,434,561 | |||||
Agape Superior Living S D N B H D [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Net revenues | $ 1,241,252 | $ 1,214,600 | 4,139,359 | $ 14,393,762 | ||||||
Agape Superior Living S D N B H D [Member] | Survivor Select [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Net revenues | 150,120 | 23,382 | 243,075 | 2,520,204 | ||||||
Agape Superior Living S D N B H D [Member] | Energized Mineral Concentrate [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Net revenues | 133,529 | 111,899 | 599,642 | 3,004,479 | ||||||
Agape Superior Living S D N B H D [Member] | Ionized Cal-Mag [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Net revenues | 39,353 | 13,912 | 94,535 | 1,116,437 | ||||||
Agape Superior Living S D N B H D [Member] | Omega Blend [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Net revenues | 299,007 | 385,001 | 723,443 | 1,666,296 | ||||||
Agape Superior Living S D N B H D [Member] | Beta Maxx [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Net revenues | 165,187 | 42,549 | 217,025 | 2,490,573 | ||||||
Agape Superior Living S D N B H D [Member] | Vege-Fruit Fiber [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Net revenues | 66,286 | 23,520 | 167,566 | 751,073 | ||||||
Agape Superior Living S D N B H D [Member] | Iron [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Net revenues | 6,810 | 71,790 | ||||||||
Agape Superior Living S D N B H D [Member] | Young Formula [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Net revenues | 30,093 | 213,300 | 394,767 | 1,766,914 | ||||||
Agape Superior Living S D N B H D [Member] | Organic Youth Care Cleansing Bar [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Net revenues | 19,304 | 53,747 | 237,530 | 87,025 | ||||||
Agape Superior Living S D N B H D [Member] | Mitogize [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Net revenues | 111,632 | 58,060 | 254,622 | 375,724 | ||||||
Agape Superior Living S D N B H D [Member] | Number One M E D [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Net revenues | 66,156 | 102,348 | 440,145 | 543,247 | ||||||
Agape Superior Living S D N B H D [Member] | Energetique [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Net revenues | 139,604 | |||||||||
Agape Superior Living S D N B H D [Member] | Trim+ [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Net revenues | $ 14,171 | $ 186,882 | $ 767,009 |
SCHEDULE OF PROPERTY AND EQUI_2
SCHEDULE OF PROPERTY AND EQUIPMENT. NET (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | |||||
Subtotal | $ 506,312 | $ 521,463 | |||
Less: accumulated depreciation | (253,871) | (223,154) | |||
Total | 252,441 | 298,309 | |||
Leasehold Improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Subtotal | 203,894 | 210,496 | |||
Vehicle [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Subtotal | $ 99,347 | $ 102,564 | |||
Agape Superior Living S D N B H D [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Subtotal | $ 478,774 | 546,815 | $ 532,234 | ||
Less: accumulated depreciation | (153,126) | (182,211) | (105,614) | ||
Total | 325,648 | 364,604 | 429,620 | ||
Agape Superior Living S D N B H D [Member] | Computer Equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Subtotal | 70,895 | 91,696 | 83,890 | ||
Agape Superior Living S D N B H D [Member] | Office Equipment Furniture And Fixtures [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Subtotal | 117,691 | 143,938 | 142,152 | ||
Agape Superior Living S D N B H D [Member] | Leasehold Improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Subtotal | 195,117 | 210,472 | 209,414 | ||
Agape Superior Living S D N B H D [Member] | Vehicle [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Subtotal | $ 95,071 | $ 100,709 | $ 99,778 |
SCHEDULE OF RELATED PARTY TRANS
SCHEDULE OF RELATED PARTY TRANSACTIONS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
T H Three Technology Sdn Bhd [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Relationship | Mr. How Kok Choong, the CEO and director of the Company is also the director of TH3 Technology | Mr. How Kok Choong, the CEO and director of the Company is also the director of TH3 Technology | Mr. How Kok Choong, the CEO and director of the Company is also the director of TH3 Technology | |||
Nature | Expenses paid for TH3 Technology | Expenses paid for TH3 Technology | Expenses paid for TH3 Technology | |||
Agape Superior Living S D N B H D [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Other Receivable - Related Parties | $ 219,121 | $ 233,942 | $ 115,225 | |||
Accounts Payable - Related Party | $ 491,628 | 520,786 | ||||
Other Payables - Related Party | 12,104 | 4,376 | ||||
Purchases | $ 464,297 | $ 1,268,670 | 685,288 | |||
Agape Superior Living S D N B H D [Member] | Agape Singapore [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Relationship | Mr. How Kok Choong, the CEO and director of the Company | Mr. How Kok Choong, the CEO and director of the Company | ||||
Nature | Fees paid for Agape Singapore | |||||
Other Receivable - Related Parties | $ 9,994 | $ 10,586 | 10,490 | |||
Agape Superior Living S D N B H D [Member] | How Academy Sdn Bhd [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Relationship | Mr. How Kok Choong, the director of the Company | Mr. How Kok Choong, the director of the Company | ||||
Nature | Paid advance to How Academy for business operational expenses | Fees paid for How Academy | ||||
Other Receivable - Related Parties | $ 21,716 | $ 23,004 | ||||
Agape Superior Living S D N B H D [Member] | Redboy Picture Sdn Bhd [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Relationship | Mr. How Kok Choong, the director of the Company | |||||
Nature | Paid advance to Redboy for business operational expenses | Paid advance to Redboy for business operational fees | ||||
Other Receivable - Related Parties | $ 123,019 | $ 132,141 | ||||
Agape Superior Living S D N B H D [Member] | T H Three Technology Sdn Bhd [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Relationship | Mr. How Kok Choong, the director of the Company | Mr. How Kok Choong, the director of the Company | ||||
Nature | Paid advance to TH3 for business operational expenses | Paid advance to TH3 for business expenses | ||||
Other Receivable - Related Parties | $ 64,392 | $ 68,211 | ||||
Agape Superior Living S D N B H D [Member] | Agape A T P International Holdings Limited [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Relationship | Mr. How Kok Choong, the CEO and director of the Company | |||||
Nature | Purchase | |||||
Accounts Payable - Related Party | $ 491,628 | $ 520,786 | ||||
Purchases | 685,288 | |||||
Agape Superior Living S D N B H D [Member] | Agape Superior Living Pty Ltd Taiwan [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Relationship | Mr. How Kok Choong, the CEO and director of the Company | |||||
Nature | Printing of product label expenses | ATP Printing Label fees | ||||
Other Payables - Related Party | $ 12,104 | 4,376 | ||||
Agape Superior Living S D N B H D [Member] | Agape A T P International Holding Limited One [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Relationship | Mr. How Kok Choong, the CEO and director of the Company | Mr. How Kok Choong, the CEO and director of the Company | ||||
Nature | Prepayment for Purchase | |||||
Nature | Purchases | |||||
Agape Superior Living S D N B H D [Member] | Agape ATP International Holding Limited [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Nature | Purchase | |||||
Accounts Payable - Related Party | $ 520,786 | |||||
Purchases | $ 464,297 |
SCHEDULE OF COMPONENTS OF PROVI
SCHEDULE OF COMPONENTS OF PROVISION (BENEFIT) FOR INCOME TAXES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred | $ (53,299) | $ 134,067 | $ 178,329 | |||||||
Provision (benefit) for income taxes | $ (3,971) | $ (134,067) | $ (10,091) | $ (134,067) | $ (161,581) | 6,965 | ||||
Agape Superior Living S D N B H D [Member] | ||||||||||
Current | (61,402) | $ 580,734 | ||||||||
Deferred | 50,833 | (57,232) | (250,822) | 16,814 | ||||||
Provision (benefit) for income taxes | $ 50,833 | $ (57,232) | $ (312,224) | $ 597,548 |
SCHEDULE OF DEFERRED TAX ASSE_2
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2021 | |
Net operating loss carry forwards | $ 65,648 | |||||
Deferred tax assets, net | $ 5,743 | $ 47,090 | ||||
Statutory rate | 21.00% | 21.00% | 21.00% | |||
Effective tax rate | 0.00% | 31.30% | 1.00% | |||
Agape Superior Living S D N B H D [Member] | ||||||
Net operating loss carry forwards | $ 196,494 | $ 260,479 | $ 260,479 | |||
Deprecation | (24,244) | (25,682) | (25,682) | $ (18,901) | ||
Deferred tax assets, net | $ 172,250 | $ 234,797 | $ 234,797 | |||
Statutory rate | 24.00% | 24.00% | 24.00% | |||
Preferential tax rate reduction | (0.80%) | (0.30%) | ||||
Permanent difference | (0.40%) | (0.50%) | ||||
Effective tax rate | 22.80% | 23.20% | ||||
Deferred liabilities, net | $ (18,901) |
SUMMARY OF PREPAID TAXES (Detai
SUMMARY OF PREPAID TAXES (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Total | $ 627,232 | $ 1,104,495 | |||
Agape Superior Living S D N B H D [Member] | |||||
Prepaid income taxes | $ 1,198,475 | 1,173,122 | $ 158,002 | ||
Prepaid GST taxes | 8,346 | 8,841 | 30,196 | ||
Total | $ 1,206,821 | $ 1,181,963 | $ 188,198 |
TAXES (Details Narrative)
TAXES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statutory rate | 21.00% | 21.00% | 21.00% | |||||||
Income | $ 303,786 | $ 1,523,862 | $ 605,566 | $ 1,523,862 | $ 429,362 | $ 3,452,621 | $ 1,290,131 | |||
Net operating loss | $ 10,000 | |||||||||
Superior Living SDN. BHD. [Member] | ||||||||||
Income | $ 125,000 | |||||||||
Net operating loss | $ 1,100,000 | $ 1,100,000 | ||||||||
Net operating loss maturity date, description | The NOL will expire in 2026. | |||||||||
Agape Superior Living S D N B H D [Member] | ||||||||||
Statutory rate | 24.00% | 24.00% | 24.00% | |||||||
Income tax rate, description | The tax rate for small and medium sized companies (generally companies incorporated in Malaysia with paid-in capital of RM 2,500,000 or less) is 17% for the first RM 600,000 (or approximately $150,000) and RM 500,000 (or approximately $125,000) income for the three months ended March 31, 2020 and 2019, respectively, with the remaining balance being taxed at the 24% rate | The tax rate for small and medium sized companies (generally companies incorporated in Malaysia with paid-in capital of RM 2,500,000 or less and that are not part of a group containing a company exceeding this capitalization threshold) is 17% and 18% for the first RM 500,000 (or approximately $125,000) income for the years ended December 31, 2019 and 2018, respectively, with the remaining balance being taxed at the 24% rate. | ||||||||
Income | $ 1,241,252 | 1,214,600 | $ 4,139,359 | $ 14,393,762 | ||||||
Income | 150,000 | |||||||||
Tax savings | 9,971 | 0 | $ 0 | $ 7,443 | ||||||
Net operating loss | $ 900,000 | |||||||||
Net operating loss maturity date, description | The NOL will expire in 2026 | |||||||||
Agape Superior Living S D N B H D [Member] | Malaysian Ringgit [Member] | ||||||||||
Income | $ 600,000 | $ 500,000 |
CONCENTRATION OF RISK (Details
CONCENTRATION OF RISK (Details Narrative) - USD ($) | Dec. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2021 |
Deposits | $ 1,112,147 | $ 1,215,004 | ||||||
Vendor One [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||||||||
Concentrations of risk percentage | 59.00% | 74.10% | 60.10% | |||||
No Sales Distributor [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Superior Living SDN. BHD. [Member] | ||||||||
Concentrations of risk percentage | 10.00% | |||||||
One Vendor [Member] | Accounts Payable [Member] | Customer Concentration Risk [Member] | Superior Living SDN. BHD. [Member] | ||||||||
Concentrations of risk percentage | 100.00% | |||||||
Agape Superior Living S D N B H D [Member] | Each Depositor [Member] | ||||||||
Deposits | $ 62,000 | $ 62,000 | $ 62,000 | $ 62,000 | ||||
Agape Superior Living S D N B H D [Member] | Each Depositor [Member] | Malaysian Ringgit [Member] | Maximum [Member] | ||||||||
Deposits | 250,000 | 250,000 | 250,000 | 250,000 | ||||
Agape Superior Living S D N B H D [Member] | Perbadanan Insurans Deposit Malaysia [Member] | ||||||||
Deposits | $ 651,418 | 983,512 | 651,418 | 651,418 | $ 1,111,897 | |||
Agape Superior Living S D N B H D [Member] | MALAYSIA | ||||||||
Interest income, deposits with financial institutions | $ 1,156,543 | $ 858,592 | $ 858,592 | $ 1,249,141 | ||||
Agape Superior Living S D N B H D [Member] | Vendor One [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||||||||
Concentrations of risk percentage | 97.90% | 97.00% | ||||||
Agape Superior Living S D N B H D [Member] | Related Party Vendor [Member] | Accounts Payable [Member] | Customer Concentration Risk [Member] | ||||||||
Concentrations of risk percentage | 100.00% | 100.00% | ||||||
Agape Superior Living S D N B H D [Member] | One Sales Distributor [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||||||||
Concentrations of risk percentage | 13.50% | 16.20% | 14.90% | |||||
Agape Superior Living S D N B H D [Member] | One Vendor [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||||||||
Concentrations of risk percentage | 99.70% | 83.50% |
SCHEDULE OF FUTURE MINIMUM PURC
SCHEDULE OF FUTURE MINIMUM PURCHASE COMMITMENT (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
2021 | $ 693,900 | $ 693,900 | ||
2022 | 693,900 | 693,900 | ||
2023 | 693,900 | 693,900 | ||
2024 | 693,900 | 693,900 | ||
Thereafter | 1,040,850 | 1,387,800 | ||
Total minimum purchase commitments required | 4,510,350 | 4,857,300 | ||
Total minimum purchase commitments required | $ 324,476 | $ 424,340 | ||
Agape Superior Living S D N B H D [Member] | ||||
2021 | $ 164,745 | |||
2022 | 158,981 | |||
2023 | 156,551 | |||
2024 | 38,038 | |||
Thereafter | ||||
Total minimum purchase commitments required | $ 518,315 | |||
2020 | $ 178,035 | |||
2021 | 169,077 | |||
2022 | 165,836 | |||
2023 | 81,753 | |||
Thereafter | ||||
Total minimum purchase commitments required | $ 594,701 |
SCHEDULE OF PREPAYMENTS AND OTH
SCHEDULE OF PREPAYMENTS AND OTHER ASSETS (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits to supplier | $ 273,109 | $ 261,068 | $ 266,552 | ||
Prepayments and deposits | $ 184,307 | $ 296,370 | 269,193 | ||
Agape Superior Living S D N B H D [Member] | |||||
Deposits to supplier | $ 274,558 | 396,731 | $ 429,456 | ||
Deposits to service providers | 43,709 | 88,149 | 39,394 | ||
Prepayments and deposits | $ 318,267 | $ 484,880 | $ 468,850 |
SCHEDULE OF PROPERTY AND EQUI_3
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | |||||
Subtotal | $ 506,312 | $ 521,463 | |||
Less: accumulated depreciation | (253,871) | (223,154) | |||
Total | 252,441 | 298,309 | |||
Leasehold Improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Subtotal | 203,894 | 210,496 | |||
Vehicle [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Subtotal | $ 99,347 | $ 102,564 | |||
Agape Superior Living S D N B H D [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Subtotal | $ 478,774 | 546,815 | $ 532,234 | ||
Less: accumulated depreciation | (153,126) | (182,211) | (105,614) | ||
Total | 325,648 | 364,604 | 429,620 | ||
Agape Superior Living S D N B H D [Member] | Computer Equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Subtotal | 70,895 | 91,696 | 83,890 | ||
Agape Superior Living S D N B H D [Member] | Office Equipment Furniture And Fixtures [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Subtotal | 117,691 | 143,938 | 142,152 | ||
Agape Superior Living S D N B H D [Member] | Leasehold Improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Subtotal | 195,117 | 210,472 | 209,414 | ||
Agape Superior Living S D N B H D [Member] | Vehicle [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Subtotal | $ 95,071 | $ 100,709 | $ 99,778 |
SCHEDULE OF INTANGIBLE ASSETS (
SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Computer software | $ 34,678 | $ 35,801 | |||
Less: accumulated amortization | 30,029 | 29,975 | |||
Total | $ 4,649 | $ 5,826 | |||
Agape Superior Living S D N B H D [Member] | |||||
Computer software | $ 33,012 | 139,798 | $ 135,916 | ||
Less: accumulated amortization | (26,326) | (132,206) | (124,889) | ||
Total | $ 6,686 | $ 7,592 | $ 11,027 |
SCHEDULE OF RELATED PARTIES REL
SCHEDULE OF RELATED PARTIES RELATIONSHIPS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
T H Three Technology Sdn Bhd [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Relationship | Mr. How Kok Choong, the CEO and director of the Company is also the director of TH3 Technology | Mr. How Kok Choong, the CEO and director of the Company is also the director of TH3 Technology | Mr. How Kok Choong, the CEO and director of the Company is also the director of TH3 Technology | |||
Nature | Expenses paid for TH3 Technology | Expenses paid for TH3 Technology | Expenses paid for TH3 Technology | |||
Agape Superior Living S D N B H D [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Other Receivable - Related Parties | $ 219,121 | $ 233,942 | $ 115,225 | |||
Prepayment - Related Party | 214,701 | |||||
Accounts Payable - Related Party | $ 491,628 | 520,786 | ||||
Other Payables - Related Party | 12,104 | 4,376 | ||||
Purchases | 464,297 | $ 1,268,670 | 685,288 | |||
Agape Superior Living S D N B H D [Member] | Agape Singapore [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Relationship | Mr. How Kok Choong, the CEO and director of the Company | Mr. How Kok Choong, the CEO and director of the Company | ||||
Nature | Fees paid for Agape Singapore | |||||
Other Receivable - Related Parties | $ 9,994 | $ 10,586 | 10,490 | |||
Nature | Fees paid for Agape Singapore | |||||
Agape Superior Living S D N B H D [Member] | How Academy Sdn Bhd [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Relationship | Mr. How Kok Choong, the director of the Company | Mr. How Kok Choong, the director of the Company | ||||
Other Receivable - Related Parties | $ 21,716 | $ 23,004 | ||||
Nature | Paid advance to How Academy for business operational expenses | Fees paid for How Academy | ||||
Agape Superior Living S D N B H D [Member] | Redboy Picture Sdn Bhd [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Relationship | Mr. How Kok Choong, the director of the Company | |||||
Other Receivable - Related Parties | $ 123,019 | $ 132,141 | ||||
Nature | Paid advance to Redboy for business operational expenses | Paid advance to Redboy for business operational fees | ||||
Agape Superior Living S D N B H D [Member] | T H Three Technology Sdn Bhd [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Relationship | Mr. How Kok Choong, the director of the Company | Mr. How Kok Choong, the director of the Company | ||||
Other Receivable - Related Parties | $ 64,392 | $ 68,211 | ||||
Nature | Paid advance to TH3 for business operational expenses | Paid advance to TH3 for business expenses | ||||
Agape Superior Living S D N B H D [Member] | Superior Living SDN. BHD. [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Relationship | Principal Owner, Board and CEO of the Company | |||||
Purchases | $ 1,268,670 | |||||
Agape Superior Living S D N B H D [Member] | Dato Sri How [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Other Receivable - Related Parties | 104,735 | |||||
Nature | Expenses paid for Mr. How | |||||
Agape Superior Living S D N B H D [Member] | Agape A T P International Holding Limited One [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Relationship | Mr. How Kok Choong, the CEO and director of the Company | Mr. How Kok Choong, the CEO and director of the Company | ||||
Nature | Prepayment for Purchase | |||||
Prepayment - Related Party | 214,701 | |||||
Agape Superior Living S D N B H D [Member] | Agape ATP International Holding Limited [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Nature | Purchase | |||||
Accounts Payable - Related Party | $ 520,786 | |||||
Purchases | 464,297 | |||||
Agape Superior Living S D N B H D [Member] | Agape ATP International Holding Limited [Member] | Accounts Payable [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Relationship | Mr. How Kok Choong, the CEO and director of the Company | |||||
Agape Superior Living S D N B H D [Member] | Agape Superior Living Pty Ltd Taiwan [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Relationship | Mr. How Kok Choong, the CEO and director of the Company | |||||
Nature | Printing of product label expenses | ATP Printing Label fees | ||||
Other Payables - Related Party | $ 12,104 | 4,376 | ||||
Agape Superior Living S D N B H D [Member] | Agape Superior Living Pty Ltd Taiwan [Member] | Other Payables [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Relationship | Mr. How Kok Choong, the CEO and director of the Company | |||||
Agape Superior Living S D N B H D [Member] | Agape A T P International Holdings Limited [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Relationship | Mr. How Kok Choong, the CEO and director of the Company | |||||
Nature | Purchase | |||||
Accounts Payable - Related Party | $ 491,628 | $ 520,786 | ||||
Purchases | $ 685,288 | |||||
Agape Superior Living One S D N B H D [Member] | Redboy Picture Sdn Bhd [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Relationship | Mr. How Kok Choong, the director of the Company |
SHAREHOLDERS_ EQUITY (Details N
SHAREHOLDERS’ EQUITY (Details Narrative) - Agape Superior Living S D N B H D [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 16, 2019 | |
Directors [Member] | ||
Dividends paid | $ 3,292,466 | |
Directors [Member] | Malaysian Ringgit [Member] | ||
Dividends paid | $ 13,210,000 | |
C E O And Director [Member] | ||
Loans payable | $ 1,977,271 | |
ssuance of common stock in connection with acquisition of Agape Superior Living Sdn Bhd, shares | 8,090,598 | |
C E O And Director [Member] | Malaysian Ringgit [Member] | ||
Loans payable | $ 8,090,598 | |
Share price | $ 1 |