Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 10, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q/A | |
Amendment Flag | true | |
Amendment Description | Agape ATP Corporation is filing this Amendment No. 2 to its Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2021, as filed with the Securities and Exchange Commission on November 12, 2021 (the “Original Filing”), solely to include an assessment and effectiveness conclusion regarding disclosure controls and procedures to Item 4 of the Quarterly Report. | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 333-220144 | |
Entity Registrant Name | AGAPE ATP CORPORATION | |
Entity Central Index Key | 0001713210 | |
Entity Tax Identification Number | 36-4838886 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | Tower 2 | |
Entity Address, Address Line Two | Faber Tower | |
Entity Address, Address Line Three | Jalan Desa Bahagia | |
Entity Address, City or Town | Kuala Lumpur | |
Entity Address, Country | MY | |
Entity Address, Postal Zip Code | 58100 | |
City Area Code | 60 | |
Local Phone Number | 192230099 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 376,452,047 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
CURRENT ASSETS | ||
Cash and cash equivalents (Included $22,232 and $37,387 in the consolidated VIE that can be used only to settle obligations of the consolidated VIE as of September 30, 2021 and December 31, 2020, respectively) | $ 2,880,677 | $ 3,517,600 |
Accounts receivable | 172,757 | |
Amount due from related parties | 11,147 | 3,235 |
Inventories | 475,508 | 589,814 |
Prepaid taxes (Included $1,353 and $11,330 in the consolidated VIE that can be used only to settle obligations of the consolidated VIE as of September 30, 2021 and December 31, 2020, respectively) | 634,395 | 1,104,495 |
Prepayments and deposits, net | 172,019 | 296,370 |
Total Current Assets | 4,173,746 | 5,684,271 |
OTHER ASSETS | ||
Property and equipment, net | 234,009 | 298,309 |
Intangible assets, net | 4,128 | 5,826 |
Operating right-of-use assets | 263,824 | 394,141 |
Investment in marketable securities | 200,644 | 577,035 |
Investment in non-marketable securities | 1,500 | 1,500 |
Deferred offering costs | 264,735 | 249,525 |
Deferred tax assets (Included $8,751 and $0 in the consolidated VIE that can be used only to settle obligations of the consolidated VIE as of September 30, 2021 and December 31, 2020, respectively) | 124,366 | |
Total Other Assets | 1,093,206 | 1,526,336 |
TOTAL ASSETS | 5,266,952 | 7,210,607 |
CURRENT LIABILITIES | ||
Customer deposits | 183,006 | 236,134 |
Operating lease liabilities | 148,919 | 154,276 |
Other payables and accrued liabilities ($1,257 and $1,904 are included in the consolidated VIE that are without recourse to the credit of Agape ATP Corporation as of September 30, 2021 and December 31, 2020, respectively) | 508,125 | 647,677 |
Income tax payables | 26,193 | |
Amount due to a related party | 455 | |
Total Current Liabilities | 866,243 | 1,038,542 |
NON-CURRENT LIABILITIES | ||
Operating lease liabilities | 117,663 | 241,488 |
Deferred tax liabilities | 5,743 | |
Total Non-current Liabilities | 117,663 | 247,231 |
TOTAL LIABILITIES | 983,906 | 1,285,773 |
STOCKHOLDERS’ EQUITY | ||
Preferred stock, $0.0001 par value; 200,000,000 shares authorized; None issued and outstanding | ||
Common Stock, par value $0.0001; 1,000,000,000 shares authorized, 376,452,047 shares issued and outstanding as of September 30, 2021 and December 31, 2020 | 37,645 | 37,645 |
Additional paid in capital | 6,440,616 | 6,440,616 |
Accumulated deficit | (2,281,583) | (734,443) |
Accumulated other comprehensive income | 86,368 | 181,016 |
TOTAL STOCKHOLDERS’ EQUITY | 4,283,046 | 5,924,834 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 5,266,952 | $ 7,210,607 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
VIE consolidated amount of cash and cash equivalents | $ 22,232 | $ 37,387 |
VIE consolidated amount of prepaid taxes | 1,353 | 11,330 |
VIE consolidated amount of deferred tax assets | 8,751 | 0 |
VIE consolidated amount of other payables and accrued liabilities | $ 1,257 | $ 1,904 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 200,000,000 | 200,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 376,452,047 | 376,452,047 |
Common stock, shares ourtatnding | 376,452,047 | 376,452,047 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
REVENUE | $ 201,284 | $ 1,413,063 | $ 806,850 | $ 2,923,271 |
REVENUE – RELATED PARTY | 13,654 | |||
TOTAL REVENUE | 201,284 | 1,413,063 | 806,850 | 2,936,925 |
COST OF REVENUE | (36,663) | (186,891) | (149,877) | (658,445) |
GROSS PROFIT | 164,621 | 1,226,172 | 656,973 | 2,278,480 |
SELLING | (82,854) | (159,292) | (299,806) | (268,648) |
COMMISSION | (76,817) | (300,957) | (258,030) | (683,455) |
GENERAL AND ADMINISTRATIVE | (369,946) | (355,274) | (1,094,042) | (1,029,052) |
PROVISION FOR DOUBTFUL ACCOUNTS | (121,598) | |||
TOTAL OPERATING EXPENSES | (529,617) | (815,523) | (1,773,476) | (1,981,155) |
(LOSS) INCOME FROM OPERATIONS | (364,996) | 410,649 | (1,116,503) | 297,325 |
OTHER (EXPENSES) INCOME | ||||
Other (expenses) income, net | (11,643) | 86,748 | (60,189) | 62,963 |
Unrealized holding (loss) gain on marketable securities | (209,169) | (24,419) | (374,900) | 102,247 |
TOTAL OTHER (EXPENSES) INCOME, NET | (220,812) | 62,329 | (435,089) | 165,210 |
(LOSS) INCOME BEFORE INCOME TAXES | (585,808) | 472,978 | (1,551,592) | 462,535 |
BENEFIT OF (PROVISION FOR) INCOME TAXES | 14,543 | (57,941) | 4,452 | (192,008) |
NET (LOSS) INCOME | (571,265) | 415,037 | (1,547,140) | 270,527 |
OTHER COMPREHENSIVE (LOSS) INCOME | ||||
Foreign currency translation adjustment | (20,017) | 54,952 | (94,648) | 90,764 |
COMPREHENSIVE (LOSS) INCOME | $ (591,282) | $ 469,989 | $ (1,641,788) | $ 361,291 |
EARNINGS (LOSS) PER SHARE | ||||
Basic and diluted | $ 0 | $ 0 | $ 0 | $ 0 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING | ||||
Basic and diluted | 376,452,047 | 376,451,896 | 376,452,047 | 376,366,198 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Beginning balance, value at Dec. 31, 2019 | $ 37,628 | $ 5,293,082 | $ (1,089,209) | $ 9,785 | $ 4,251,286 |
Beginning balance at Dec. 31, 2019 | 376,275,500 | ||||
Net Income (loss) | (231,750) | (231,750) | |||
Foreign currency translation adjustment | 7,770 | 7,770 | |||
Ending balance, value at Mar. 31, 2020 | $ 37,628 | 5,293,082 | (1,320,959) | 17,555 | 4,027,306 |
Ending balance at Mar. 31, 2020 | 376,275,500 | ||||
Beginning balance, value at Dec. 31, 2019 | $ 37,628 | 5,293,082 | (1,089,209) | 9,785 | 4,251,286 |
Beginning balance at Dec. 31, 2019 | 376,275,500 | ||||
Net Income (loss) | 270,527 | ||||
Ending balance, value at Sep. 30, 2020 | $ 37,645 | 6,440,616 | (818,682) | 100,549 | 5,760,128 |
Ending balance at Sep. 30, 2020 | 376,452,047 | ||||
Beginning balance, value at Mar. 31, 2020 | $ 37,628 | 5,293,082 | (1,320,959) | 17,555 | 4,027,306 |
Beginning balance at Mar. 31, 2020 | 376,275,500 | ||||
Net Income (loss) | 87,240 | 87,240 | |||
Issuance of common stock in connection with acquisition of Agape Superior Living Sdn Bhd | 16 | 1,057,492 | $ 1,057,508 | ||
Issuance of common stock in connection with acquisition of Agape Superior Living Sdn Bhd, shares | 162,694 | ||||
Foreign currency translation adjustment | 28,042 | $ 28,042 | |||
Ending balance, value at Jun. 30, 2020 | $ 37,644 | 6,350,574 | (1,233,719) | 45,597 | 5,200,096 |
Ending balance at Jun. 30, 2020 | 376,438,194 | ||||
Net Income (loss) | 415,037 | 415,037 | |||
Issuance of common stock in connection with acquisition of Agape Superior Living Sdn Bhd | 1 | 90,042 | $ 90,043 | ||
Issuance of common stock in connection with acquisition of Agape Superior Living Sdn Bhd, shares | 13,853 | ||||
Foreign currency translation adjustment | 54,952 | $ 54,952 | |||
Ending balance, value at Sep. 30, 2020 | $ 37,645 | 6,440,616 | (818,682) | 100,549 | 5,760,128 |
Ending balance at Sep. 30, 2020 | 376,452,047 | ||||
Beginning balance, value at Dec. 31, 2020 | $ 37,645 | 6,440,616 | (734,443) | 181,016 | 5,924,834 |
Beginning balance at Dec. 31, 2020 | 376,452,047 | ||||
Net Income (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 |
Ending balance 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 |
Beginning balance at Dec. 31, 2020 | 376,452,047 | ||||
Net Income (loss) | (1,547,140) | ||||
Ending balance, value at Sep. 30, 2021 | $ 37,645 | 6,440,616 | (2,281,583) | 86,368 | 4,283,046 |
Ending balance at Sep. 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 |
Beginning balance at Mar. 31, 2021 | 376,452,047 | ||||
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 |
Ending balance at Jun. 30, 2021 | 376,452,047 | ||||
Net Income (loss) | (571,265) | (571,265) | |||
Foreign currency translation adjustment | (20,017) | (20,017) | |||
Ending balance, value at Sep. 30, 2021 | $ 37,645 | $ 6,440,616 | $ (2,281,583) | $ 86,368 | $ 4,283,046 |
Ending balance at Sep. 30, 2021 | 376,452,047 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (loss) income | $ (1,547,140) | $ 270,527 |
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||
Depreciation | 56,919 | 36,524 |
Amortization | 1,482 | 993 |
Amortization of operating right-of-use assets | 112,678 | 70,047 |
Unrealized holding loss (gain) on marketable securities | 374,900 | (102,247) |
Deferred tax (benefit) expense | (131,634) | 171,586 |
Inventory write-down | 36,636 | |
Provision for doubtful accounts | 121,598 | |
Changes in operating assets and liabilities: | ||
Accounts receivables | 168,019 | (271,876) |
Amount due from a related party | (1,443) | |
Inventories | 90,580 | 132,939 |
Prepaid taxes | 431,224 | (123,507) |
Prepayments and deposits | (4,309) | 247,115 |
Prepayments and deposits – related party | (1,619) | |
Accounts payable | (2,804) | |
Customer deposits | (44,044) | (1,268,487) |
Operating lease liabilities | (111,460) | (69,021) |
Other payables and accrued liabilities | (123,082) | 167,603 |
Income tax payables | 26,193 | |
Net cash used in operating activities | (541,440) | (743,670) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of equipment | (3,970) | (4,700) |
Purchase of intangible assets | (177) | |
Cash and cash equivalent acquired through acquisition of Agape Superior Living Sdn Bhd | 1,210,818 | |
Proceeds from sale of non-marketable securities to a related party | 70,173 | |
Net cash (used in) provided by investing activities | (3,970) | 1,276,114 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Deferred offering costs | (15,210) | (203,238) |
(Advances to) Repayments from related parties | (8,070) | 224,342 |
Net cash (used in) provided by financing activities | (23,280) | 21,104 |
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS | (68,233) | 45,585 |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (636,923) | 599,133 |
CASH AND CASH EQUIVALENTS, beginning of period | 3,517,600 | 2,744,457 |
CASH AND CASH EQUIVALENTS, end of period | 2,880,677 | 3,343,590 |
SUPPLEMENTAL CASH FLOWS INFORMATION | ||
Income taxes paid | 327,722 | 9,101 |
Interest paid | ||
SUPPLEMENTAL NON-CASH FLOWS INFORMATION | ||
Changes in right-of-use assets and lease liabilities due to lease modifications | 3,259 | |
Initial recognition of right-of-use assets and lease liabilities | 479,838 | |
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 |
ORGANIZATION AND BUSINESS BACKG
ORGANIZATION AND BUSINESS BACKGROUND | 9 Months Ended |
Sep. 30, 2021 | |
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 and VIE: 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) 1. ORGANIZATION AND BUSINESS BACKGROUND (Continued) 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. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
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 year 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 September 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 September 30, 2021 and 2020, the Company did no 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. Allowance for doubtful accounts provided as of September 30, 2021 and December 31, 2020, was $ 121,322 0 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 years 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$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Intangible assets, net Intangible assets, net, are stated at cost, less accumulated amortization. Amortization expense is recognized on the straight-line basis over the estimated useful lives of the assets as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF INTANGIBLE ASSETS, NET Classification Useful Life Computer software 5 years Impairment for long-lived assets Long-lived assets, including property and equipment, and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. As of September 30, 2021 and December 31, 2020, no Deferred offering costs Deferred offering costs represents costs associated with the Company’s current offering which will be netted against the proceeds from the Company’s current offering. Investment in marketable equity securities The Company follows the provisions of ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), 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 September 30, 2021 and 2020, the Company recognized $ 1,361 93,322 12,587 93,322 As of September 30, 2021, the Company had contracts for the sales of health and wellness products amounting to $ 86,364 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) 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 September 30, 2021 and 2020, revenues from health and wellness services were $ 1,308 and $ 0 respectively. For the nine months ended September 30, 2021 and 2020, revenues from health and wellness services were $ 7,054 and $ 0 respectively. Disaggregated information of revenues by products and services are as follows: SCHEDULE OF DIS-AGGREGATED INFORMATION OF REVENUES For the three months ended For the nine months ended September 30, September 30, 2021 2020 2021 2020 Survivor Select $ 14,252 $ 83,107 $ 51,893 $ 119,101 Energized Mineral Concentrate 49 58,491 52,232 81,097 Ionized Cal-Mag 15,506 352,718 55,804 850,716 Omega Blend 48,582 109,258 233,943 271,801 Beta Maxx 32,605 123,080 122,405 134,514 Vege-Fruit Fiber 186 1,814 186 7,920 Iron 4,619 22,581 21,334 135,743 Young Formula 8,606 378,970 34,507 728,708 Organic Youth Care Cleansing Bar - 12,395 2,990 41,200 Mitogize 68,443 36,914 175,286 41,625 Lipomask 1,797 33,379 10,198 41,799 Hyaluronic Acid Serum 836 51,289 4,162 107,010 Mousse Facial Cleanser 3,565 24,136 11,252 27,263 Trim+ 930 124,931 23,604 348,428 Health and wellness services 1,308 - 7,054 - Total revenues $ 201,284 $ 1,413,063 $ 806,850 $ 2,936,925 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 $ 36,663 186,891 149,877 36,636 658,445 Shipping and handling charges Shipping and handling charges amounted to $ 2,139 3,467 7,411 6,022 Advertising costs Advertising costs amounted to $ 2,473 5,634 19,131 8,516 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 $ 76,817 300,957 258,030 683,455 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 $ 21,674 25,442 74,708 49,152 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% 4,000 - 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% No 395 0 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 nine months ended September 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 September 30, 2021 December 31, 2020 Period-average MYR : US$1 exchange rate 4.19 4.02 Period-average HKD : US$1 exchange rate 7.79 7.75 For the three months ended For the nine months ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Period-average MYR : US$1 exchange rate 4.20 4.20 4.13 4.23 Period-average HKD : US$1 exchange rate 7.78 7.75 7.77 7.76 Related parties Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence. Fair value of financial instruments The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company. The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. Financial instruments included in current assets and current liabilities are reported in the unaudited condensed consolidated balance sheets at face value or cost, which approximate fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest. AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), 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 info |
VARIABLE INTEREST ENTITY (_VIE_
VARIABLE INTEREST ENTITY (“VIE”) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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: September 30, 2021 December 31, 2020 Current assets: Cash and cash equivalents $ 22,232 $ 37,387 Prepaid taxes 1,353 11,330 Total current assets 23,585 48,717 Other asset – Deferred tax asset 8,751 - Total assets $ 32,336 $ 48,717 Current liabilities: Accounts payable – intercompany $ 49,581 $ 51,669 Other payables and accrued liabilities 1,257 1,904 Total current liabilities 50,838 53,573 Net deficit $ (18,502 ) $ (4,856 ) The summarized operating results of the VIE’s are as follows: For the three months ended For the nine months ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Operating revenues $ - $ 146,788 $ - $ 276,280 Gross profit $ - $ 955 $ - $ 2,328 Loss from operations $ (4,914 ) $ (4,171 ) $ (16,881 ) $ (7,920 ) Net loss $ (4,079 ) $ (8,627 ) $ (14,028 ) $ (26,766 ) AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) |
BUSINESS COMBINATION
BUSINESS COMBINATION | 9 Months Ended |
Sep. 30, 2021 | |
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 Nine Months Ended September 30, 2020 Revenue $ 4,178,177 Cost of revenue (737,512 ) Gross profit 3,440,665 Total operating expenses (3,025,438 ) Income from operations 415,227 Other income, net 75,603 Income before income taxes 490,830 Provision for income taxes (242,841 ) Net income $ 247,989 Net income per common share - basic and diluted $ 0.00 Weighted average number of common shares outstanding - basic and diluted 376,452,047 |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 9 Months Ended |
Sep. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
CASH AND CASH EQUIVALENTS | 5. CASH AND CASH EQUIVALENTS As of September 30, 2021 and December 31, 2020 the Company has $ 2,880,677 3,517,600 841,836 1,112,147 2,032,119 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 | 9 Months Ended |
Sep. 30, 2021 | |
Credit Loss [Abstract] | |
ACCOUNTS RECEIVABLE | 6. ACCOUNTS RECEIVABLE SCHEDULE OF ACCOUNTS RECEIVABLES As of September 30, As of December 31, Accounts receivable $ - $ 172,757 Allowance for doubtful accounts - - Total $ - $ 172,757 |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 7. INVENTORIES Inventories consist of the following: SCHEDULE OF INVENTORIES As of September 30, As of December 31, Finished goods $ 475,508 $ 589,814 For the three months ended September 30, 2021 and 2020, the Company didn’t recognize any inventory write-down. For the nine months ended September 30, 2021 and 2020, the Company recognized inventory write-down of $ 36,636 0 |
PREPAYMENTS AND DEPOSITS
PREPAYMENTS AND DEPOSITS | 9 Months Ended |
Sep. 30, 2021 | |
Prepayments And Deposits | |
PREPAYMENTS AND DEPOSITS | 8. PREPAYMENTS AND DEPOSITS SCHEDULE OF PREPAID EXPENSES AND DEPOSITS As of As of Receivables from sales distributors $ 32,580 $ 35,302 Deposits to suppliers 260,761 261,068 Subtotal 293,341 296,370 Less: Provision for doubtful accounts (121,322 ) - Total $ 172,019 $ 296,370 Movements of allowance for doubtful accounts are as follows: SCHEDULE OF CHANGES IN ALLOWANCE FOR DOUBTFUL ACCOUNTS For the Three Months Ended September 30, For the Nine Months Ended September 30, For the Year End December, 31, Beginning balance $ 121,622 $ - $ - Addition - 121,598 - Write off - - - Exchange rate effect (300 ) (276 ) - Ending balance $ 121,322 $ 121,322 $ - |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
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 September 30, As of December 31, Computer and office equipment $ 82,062 $ 81,437 Furniture & fixtures 121,835 126,966 Leasehold improvements 201,989 210,496 Vehicle 98,419 102,564 Subtotal 504,305 521,463 Less: accumulated depreciation (270,296 ) (223,154 ) Total $ 234,009 $ 298,309 Depreciation expense for the three months ended September 30, 2021 and 2020 amounted to $ 18,740 18,808 56,919 36,524 AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | 10. INTANGIBLE ASSETS, NET Intangible assets, net, consist of the following: SCHEDULE OF INTANGIBLE ASSETS, NET As of September 30, As of December 31, Computer software $ 34,355 $ 35,801 Less: accumulated amortization (30,227 ) (29,975 ) Total $ 4,128 $ 5,826 Amortization expense for the three months ended September 30, 2021 and 2020 amounted to $ 476 and $ 511 , respectively. Amortization expense for the nine months ended September 30, 2021 and 2020 amounted to $ 1,482 and $ 993 , respectively. |
INVESTMENT IN MARKETABLE SECURI
INVESTMENT IN MARKETABLE SECURITIES | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, As of December 31, Cost of investment $ 577,035 $ 66,484 Dividend income from Greenpro Capital Corp. - 160,062 Unrealized holding (loss) gain (374,900 ) 350,137 Exchange rate effect (1,491 ) 352 Investment in marketable securities $ 200,644 $ 577,035 |
INVESTMENT IN NON-MARKETABLE SE
INVESTMENT IN NON-MARKETABLE SECURITIES | 9 Months Ended |
Sep. 30, 2021 | |
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 |
OTHER PAYABLES AND ACCRUED LIAB
OTHER PAYABLES AND ACCRUED LIABILITIES | 9 Months Ended |
Sep. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
OTHER PAYABLES AND ACCRUED LIABILITIES | 13. OTHER PAYABLES AND ACCRUED LIABILITIES SCHEDULE OF OTHER PAYABLES AND ACCRUED LIABILITIES As of September 30, As of December 31, Professional fees $ 166,980 $ 297,636 Promotion expenses 35,921 37,433 Payroll 22,329 23,976 Commissions 229,022 224,711 Others 53,873 63,921 Total $ 508,125 $ 647,677 AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) |
RELATED PARTY BALANCES AND TRAN
RELATED PARTY BALANCES AND TRANSACTIONS | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
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 September 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 $ 2,218 $ 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 4,777 996 Redboy Pictures Sdn Bhd Mr. How Kok Choong, the CEO and director of the Company is also the director of Redboy Pictures Sdn Bhd Expenses paid for Redboy Pictures Sdn Bhd 4,152 - 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 $ 11,147 $ 3,235 Amount due to a Related Party Name of Related Party Relationship Nature As of September 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 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 Nine Months September 30, 2021 For the Nine September 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 September 30, 2021 For the Three September 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 $ 1,428 $ 1,443 Total $ 1,428 $ 1,443 Name of Related Party Relationship Nature For the Nine September 30, 2021 For the Nine September 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 $ 4,357 $ 1,443 Total $ 4,357 $ 1,443 AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | 15. STOCKHOLDERS’ EQUITY Preferred stock As of September 30, 2021 and December 31, 2020, there were 200,000,000 none Common stock As of September 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 September 30, 2021 and for the three and nine months ended September 30, 2021, 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 | 9 Months Ended |
Sep. 30, 2021 | |
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 nine months ended September 30, September 30, September 30, September 30, Tax jurisdictions from: Local – United States $ (117,272 ) $ (96,606 ) $ (321,567 ) $ (400,776 ) Foreign – Malaysia (257,590 ) 719,561 (727,265 ) 1,033,341 Foreign – Hong Kong (210,946 ) (149,977 ) (502,760 ) (170,030 ) (Loss) income before income tax $ (585,808 ) $ 472,978 $ (1,551,592 ) $ 462,535 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 benefit of (provision for) income taxes consisted of the following: SCHEDULE OF PROVISION FOR INCOME TAX For the three months ended For the nine months ended September 30, September 30, September 30, September 30, Current: - Local $ - $ - $ (22,205 ) $ - - Foreign (63,792 ) (20,381 ) (104,977 ) (20,381 ) Deferred: - Local - - - - - Foreign 78,335 (37,560 ) 131,634 (171,627 ) Benefit of (provision for) income tax $ 14,543 $ (57,941 ) $ 4,452 $ (192,008 ) 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 nine months ended September 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 nine months ended September 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 September 30, 2021 and December 31, 2020, the operations in the United States of America incurred approximately $ 344,000 0 72,000 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 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 September 30, As of December 31, Deferred tax assets: Net operating loss carry forwards in U.S. $ 72,192 $ - Net operating loss carry forwards in Malaysia 152,553 62,678 Less: valuation allowance (72,192 ) - Deferred tax liabilities: Depreciation (28,187 ) (68,421 ) Deferred tax assets (liabilities), net $ 124,366 $ (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 September 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 months ended September 30, 2021 and 2020. $ 395 0 AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) |
CONCENTRATIONS OF RISKS
CONCENTRATIONS OF RISKS | 9 Months Ended |
Sep. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS OF RISKS | 17. CONCENTRATIONS OF RISKS (a) Major customers For the three months ended September 30, 2021 and 2020, no customer accounted for 10 10 There is no account receivable balance as of September 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 months ended September 30, 2021, two vendors accounted for 69.3 % and 26.5 % of the Company’s total purchases. For the three months ended September 30, 2020, two vendors accounted for 63.7 % and 36.3 % of the Company’s total purchases . For the nine months ended September 30, 2021, three vendors accounted for 74.3 14.1 10.0 For the nine months ended September 30, 2020, two vendors accounted for approximately 66.6 33.4 There are no accounts payable balance as of September 30, 2021 and December 31, 2020. (c) Commission Expenses to Sales Distributors and Stockists For the three months ended September 30, 2021, one sales distributor accounted for 17.8 10.5 % and 10.3 % of the Company’s total commission expense. For the nine months ended September 30, 2021, one sales distributor accounted for 19.4 % of the Company’s total commission expense . For the nine months ended September 30, 2020, no sales distributor accounted for 10 % or more of the Company’s total commission expense . (d) Credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash. As of September 30, 2021 and December 31, 2020, $ 841,836 1,112,147 509,027 563,788 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) |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
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 3,259 5.5 As of September 30, 2021, the weighted remaining term of the lease is approximately 1.79 The five-year maturity of the Company’s operating lease liabilities is as follow: SCHEDULE OF LEASE COMMITMENTS Twelve Months Ending September 30, Operating lease liabilities 2022 $ 159,866 2023 120,411 Thereafter - Total lease payments 280,277 Less: interest (13,695 ) Present value of lease liabilities $ 266,582 Rent expense for the three months ended September 30, 2021 and 2020 was $ 44,344 58,793 135,865 111,465 Purchase commitments The total future minimum purchase commitment under a non-cancellable purchase contract as of September 30, 2021 for the next five years and thereafter is as follows: SCHEDULE OF PURCHASE COMMITMENTS Twelve months ending September 30, Minimum purchase 2022 $ 693,900 2023 693,900 2024 693,900 2025 693,900 2026 693,900 Thereafter 867,375 Total minimum purchase commitments required $ 4,336,875 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 was 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. The COVID-19 situation in the country showed no sign of abating. Kuala Lumpur and Selangor remained the epicenter of the latest wave of infections. Total COVID-19 cases in the country surpassed the one million mark on July 25, 2021, and daily cases hit a record high of 24,599 on August 26, 2021. Despite the deteriorating COVID-19 state, the government lifted Kuala Lumpur from Enhanced Movement Control Order (“EMCO”) ahead of schedule and ended the nationwide state of emergency on August 1, 2021. Parliament met for the first time this year on July 26, 2021. Malaysia pressed on with its National COVID-19 Immunisation Plan, fast inoculating its residents. COVID-19 infection started to drop below the 10,000 mark daily, beginning October 3, 2021. Effective October 11, 2021, interstate and international travel restrictions were lifted for residents who had been fully vaccinated against COVID-19 as the country achieved its target of inoculating 90% of its adult population. The government is preparing to shift into an endemic COVID-19 phase where it will not impose wide lockdowns even if cases rise. As of October 31, 2021, over 75% of the country’s population have been fully vaccinated. 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. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | 19. SUBSEQUENT EVENT On November 11, 2021, Agape ATP Corporation (Labuan) formed a joint-venture entity, DSY Wellness International Sdn. Bhd. with an independent third party which Agape ATP Corporation (Labuan) owns 60 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
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 year 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 | 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 | 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 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 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 September 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 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 September 30, 2021 and 2020, the Company did no 36,636 0 |
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. |
Prepayments and deposits, net | 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. Allowance for doubtful accounts provided as of September 30, 2021 and December 31, 2020, was $ 121,322 0 |
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 years 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 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 years |
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 September 30, 2021 and December 31, 2020, 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. |
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 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 | 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 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 September 30, 2021 and 2020, the Company recognized $ 1,361 93,322 12,587 93,322 As of September 30, 2021, the Company had contracts for the sales of health and wellness products amounting to $ 86,364 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) 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 September 30, 2021 and 2020, revenues from health and wellness services were $ 1,308 and $ 0 respectively. For the nine months ended September 30, 2021 and 2020, revenues from health and wellness services were $ 7,054 and $ 0 respectively. Disaggregated information of revenues by products and services are as follows: SCHEDULE OF DIS-AGGREGATED INFORMATION OF REVENUES For the three months ended For the nine months ended September 30, September 30, 2021 2020 2021 2020 Survivor Select $ 14,252 $ 83,107 $ 51,893 $ 119,101 Energized Mineral Concentrate 49 58,491 52,232 81,097 Ionized Cal-Mag 15,506 352,718 55,804 850,716 Omega Blend 48,582 109,258 233,943 271,801 Beta Maxx 32,605 123,080 122,405 134,514 Vege-Fruit Fiber 186 1,814 186 7,920 Iron 4,619 22,581 21,334 135,743 Young Formula 8,606 378,970 34,507 728,708 Organic Youth Care Cleansing Bar - 12,395 2,990 41,200 Mitogize 68,443 36,914 175,286 41,625 Lipomask 1,797 33,379 10,198 41,799 Hyaluronic Acid Serum 836 51,289 4,162 107,010 Mousse Facial Cleanser 3,565 24,136 11,252 27,263 Trim+ 930 124,931 23,604 348,428 Health and wellness services 1,308 - 7,054 - Total revenues $ 201,284 $ 1,413,063 $ 806,850 $ 2,936,925 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 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 $ 36,663 186,891 149,877 36,636 658,445 |
Shipping and handling charges | Shipping and handling charges Shipping and handling charges amounted to $ 2,139 3,467 7,411 6,022 |
Advertising costs | Advertising costs Advertising costs amounted to $ 2,473 5,634 19,131 8,516 |
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 $ 76,817 300,957 258,030 683,455 |
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 $ 21,674 25,442 74,708 49,152 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% 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 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% No 395 0 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 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 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 | 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 nine months ended September 30, 2021 and 2020, there were no |
Foreign currencies translation and transaction | Foreign currencies translation and transaction Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the 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 September 30, 2021 December 31, 2020 Period-average MYR : US$1 exchange rate 4.19 4.02 Period-average HKD : US$1 exchange rate 7.79 7.75 For the three months ended For the nine months ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Period-average MYR : US$1 exchange rate 4.20 4.20 4.13 4.23 Period-average HKD : US$1 exchange rate 7.78 7.75 7.77 7.76 Related parties Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence. Fair value of financial instruments The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company. The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. Financial instruments included in current assets and current liabilities are reported in the unaudited condensed consolidated balance sheets at face value or cost, which approximate fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest. AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), 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 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. |
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. 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 | 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 | 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. |
ORGANIZATION AND BUSINESS BAC_2
ORGANIZATION AND BUSINESS BACKGROUND (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
SCHEDULE OF SUBSIDIARIES AND ASSOCIATES | Details of the Company’s subsidiaries and VIE: 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) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
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 years |
SCHEDULE OF ESTIMATED USEFUL LIVES OF 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 years |
SCHEDULE OF DIS-AGGREGATED INFORMATION OF REVENUES | Disaggregated information of revenues by products and services are as follows: SCHEDULE OF DIS-AGGREGATED INFORMATION OF REVENUES For the three months ended For the nine months ended September 30, September 30, 2021 2020 2021 2020 Survivor Select $ 14,252 $ 83,107 $ 51,893 $ 119,101 Energized Mineral Concentrate 49 58,491 52,232 81,097 Ionized Cal-Mag 15,506 352,718 55,804 850,716 Omega Blend 48,582 109,258 233,943 271,801 Beta Maxx 32,605 123,080 122,405 134,514 Vege-Fruit Fiber 186 1,814 186 7,920 Iron 4,619 22,581 21,334 135,743 Young Formula 8,606 378,970 34,507 728,708 Organic Youth Care Cleansing Bar - 12,395 2,990 41,200 Mitogize 68,443 36,914 175,286 41,625 Lipomask 1,797 33,379 10,198 41,799 Hyaluronic Acid Serum 836 51,289 4,162 107,010 Mousse Facial Cleanser 3,565 24,136 11,252 27,263 Trim+ 930 124,931 23,604 348,428 Health and wellness services 1,308 - 7,054 - Total revenues $ 201,284 $ 1,413,063 $ 806,850 $ 2,936,925 |
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 September 30, 2021 December 31, 2020 Period-average MYR : US$1 exchange rate 4.19 4.02 Period-average HKD : US$1 exchange rate 7.79 7.75 For the three months ended For the nine months ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Period-average MYR : US$1 exchange rate 4.20 4.20 4.13 4.23 Period-average HKD : US$1 exchange rate 7.78 7.75 7.77 7.76 |
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. |
VARIABLE INTEREST ENTITY (_VI_2
VARIABLE INTEREST ENTITY (“VIE”) (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The carrying amount of the VIE’s assets and liabilities were as follows: | The carrying amount of the VIE’s assets and liabilities were as follows: September 30, 2021 December 31, 2020 Current assets: Cash and cash equivalents $ 22,232 $ 37,387 Prepaid taxes 1,353 11,330 Total current assets 23,585 48,717 Other asset – Deferred tax asset 8,751 - Total assets $ 32,336 $ 48,717 Current liabilities: Accounts payable – intercompany $ 49,581 $ 51,669 Other payables and accrued liabilities 1,257 1,904 Total current liabilities 50,838 53,573 Net deficit $ (18,502 ) $ (4,856 ) The summarized operating results of the VIE’s are as follows: For the three months ended For the nine months ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Operating revenues $ - $ 146,788 $ - $ 276,280 Gross profit $ - $ 955 $ - $ 2,328 Loss from operations $ (4,914 ) $ (4,171 ) $ (16,881 ) $ (7,920 ) Net loss $ (4,079 ) $ (8,627 ) $ (14,028 ) $ (26,766 ) |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 |
SCHEDULE OF PRO FORMA BUSINESS COMBINATION | SCHEDULE OF PRO FORMA BUSINESS COMBINATION For the Nine Months Ended September 30, 2020 Revenue $ 4,178,177 Cost of revenue (737,512 ) Gross profit 3,440,665 Total operating expenses (3,025,438 ) Income from operations 415,227 Other income, net 75,603 Income before income taxes 490,830 Provision for income taxes (242,841 ) Net income $ 247,989 Net income per common share - basic and diluted $ 0.00 Weighted average number of common shares outstanding - basic and diluted 376,452,047 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Credit Loss [Abstract] | |
SCHEDULE OF ACCOUNTS RECEIVABLES | SCHEDULE OF ACCOUNTS RECEIVABLES As of September 30, As of December 31, Accounts receivable $ - $ 172,757 Allowance for doubtful accounts - - Total $ - $ 172,757 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORIES | Inventories consist of the following: SCHEDULE OF INVENTORIES As of September 30, As of December 31, Finished goods $ 475,508 $ 589,814 |
PREPAYMENTS AND DEPOSITS (Table
PREPAYMENTS AND DEPOSITS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Prepayments And Deposits | |
SCHEDULE OF PREPAID EXPENSES AND DEPOSITS | SCHEDULE OF PREPAID EXPENSES AND DEPOSITS As of As of Receivables from sales distributors $ 32,580 $ 35,302 Deposits to suppliers 260,761 261,068 Subtotal 293,341 296,370 Less: Provision for doubtful accounts (121,322 ) - Total $ 172,019 $ 296,370 |
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 September 30, For the Nine Months Ended September 30, For the Year End December, 31, Beginning balance $ 121,622 $ - $ - Addition - 121,598 - Write off - - - Exchange rate effect (300 ) (276 ) - Ending balance $ 121,322 $ 121,322 $ - |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY AND EQUIPMENT, NET | Property and equipment, net consist of the following: SCHEDULE OF PROPERTY AND EQUIPMENT, NET As of September 30, As of December 31, Computer and office equipment $ 82,062 $ 81,437 Furniture & fixtures 121,835 126,966 Leasehold improvements 201,989 210,496 Vehicle 98,419 102,564 Subtotal 504,305 521,463 Less: accumulated depreciation (270,296 ) (223,154 ) Total $ 234,009 $ 298,309 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF INTANGIBLE ASSETS, NET | Intangible assets, net, consist of the following: SCHEDULE OF INTANGIBLE ASSETS, NET As of September 30, As of December 31, Computer software $ 34,355 $ 35,801 Less: accumulated amortization (30,227 ) (29,975 ) Total $ 4,128 $ 5,826 |
INVESTMENT IN MARKETABLE SECU_2
INVESTMENT IN MARKETABLE SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investment In Marketable Securities | |
SCHEDULE OF INVESTMENT IN MARKETABLE SECURITIES | SCHEDULE OF INVESTMENT IN MARKETABLE SECURITIES As of September 30, As of December 31, Cost of investment $ 577,035 $ 66,484 Dividend income from Greenpro Capital Corp. - 160,062 Unrealized holding (loss) gain (374,900 ) 350,137 Exchange rate effect (1,491 ) 352 Investment in marketable securities $ 200,644 $ 577,035 |
INVESTMENT IN NON-MARKETABLE _2
INVESTMENT IN NON-MARKETABLE SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 |
OTHER PAYABLES AND ACCRUED LI_2
OTHER PAYABLES AND ACCRUED LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
SCHEDULE OF OTHER PAYABLES AND ACCRUED LIABILITIES | SCHEDULE OF OTHER PAYABLES AND ACCRUED LIABILITIES As of September 30, As of December 31, Professional fees $ 166,980 $ 297,636 Promotion expenses 35,921 37,433 Payroll 22,329 23,976 Commissions 229,022 224,711 Others 53,873 63,921 Total $ 508,125 $ 647,677 |
RELATED PARTY BALANCES AND TR_2
RELATED PARTY BALANCES AND TRANSACTIONS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
SCHEDULE OF RELATED PARTIES | SCHEDULE OF RELATED PARTIES Name of Related Party Relationship Nature As of September 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 $ 2,218 $ 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 4,777 996 Redboy Pictures Sdn Bhd Mr. How Kok Choong, the CEO and director of the Company is also the director of Redboy Pictures Sdn Bhd Expenses paid for Redboy Pictures Sdn Bhd 4,152 - 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 $ 11,147 $ 3,235 Amount due to a Related Party Name of Related Party Relationship Nature As of September 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 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 Nine Months September 30, 2021 For the Nine September 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 September 30, 2021 For the Three September 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 $ 1,428 $ 1,443 Total $ 1,428 $ 1,443 Name of Related Party Relationship Nature For the Nine September 30, 2021 For the Nine September 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 $ 4,357 $ 1,443 Total $ 4,357 $ 1,443 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 nine months ended September 30, September 30, September 30, September 30, Tax jurisdictions from: Local – United States $ (117,272 ) $ (96,606 ) $ (321,567 ) $ (400,776 ) Foreign – Malaysia (257,590 ) 719,561 (727,265 ) 1,033,341 Foreign – Hong Kong (210,946 ) (149,977 ) (502,760 ) (170,030 ) (Loss) income before income tax $ (585,808 ) $ 472,978 $ (1,551,592 ) $ 462,535 |
SCHEDULE OF PROVISION FOR INCOME TAX | The benefit of (provision for) income taxes consisted of the following: SCHEDULE OF PROVISION FOR INCOME TAX For the three months ended For the nine months ended September 30, September 30, September 30, September 30, Current: - Local $ - $ - $ (22,205 ) $ - - Foreign (63,792 ) (20,381 ) (104,977 ) (20,381 ) Deferred: - Local - - - - - Foreign 78,335 (37,560 ) 131,634 (171,627 ) Benefit of (provision for) income tax $ 14,543 $ (57,941 ) $ 4,452 $ (192,008 ) |
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 September 30, As of December 31, Deferred tax assets: Net operating loss carry forwards in U.S. $ 72,192 $ - Net operating loss carry forwards in Malaysia 152,553 62,678 Less: valuation allowance (72,192 ) - Deferred tax liabilities: Depreciation (28,187 ) (68,421 ) Deferred tax assets (liabilities), net $ 124,366 $ (5,743 ) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
SCHEDULE OF LEASE COMMITMENTS | The five-year maturity of the Company’s operating lease liabilities is as follow: SCHEDULE OF LEASE COMMITMENTS Twelve Months Ending September 30, Operating lease liabilities 2022 $ 159,866 2023 120,411 Thereafter - Total lease payments 280,277 Less: interest (13,695 ) Present value of lease liabilities $ 266,582 |
SCHEDULE OF PURCHASE COMMITMENTS | The total future minimum purchase commitment under a non-cancellable purchase contract as of September 30, 2021 for the next five years and thereafter is as follows: SCHEDULE OF PURCHASE COMMITMENTS Twelve months ending September 30, Minimum purchase 2022 $ 693,900 2023 693,900 2024 693,900 2025 693,900 2026 693,900 Thereafter 867,375 Total minimum purchase commitments required $ 4,336,875 |
SCHEDULE OF SUBSIDIARIES AND AS
SCHEDULE OF SUBSIDIARIES AND ASSOCIATES (Details) | 9 Months Ended | |
Sep. 30, 2021 | May 08, 2020 | |
Subsidiary Company [Member] | ||
Equity method investment, ownership percentage | 100% | |
Subsidiary Company One [Member] | ||
Equity method investment, ownership percentage | 100% | |
Subsidiary Company Two [Member] | ||
Equity method investment, ownership percentage | 99.99% | 99.99% |
Subsidiary Company Four [Member] | ||
Equity method investment, ownership percentage | 100% | |
Subsidiary Company [Member] | ||
Subsidiary company name | Agape ATP Corporation | |
Place and date of incorporation | Labuan, March 6, 2017 | |
Particulars of issued capital | 100 shares of ordinary share of US$1 each | |
Principal activities | Investment holding | |
Subsidiary Company One [Member] | ||
Subsidiary company name | Agape ATP International Holding Limited | |
Place and date of incorporation | Hong Kong, June 1, 2017 | |
Particulars of issued capital | 1,000,000 shares of ordinary share of HK$1 each | |
Principal activities | Wholesaling of health and wellness products; and health solution advisory services | |
Subsidiary Company Two [Member] | ||
Subsidiary company name | Agape Superior Living Sdn. Bhd. | |
Place and date of incorporation | Malaysia, August 8, 2003 | |
Particulars of issued capital | 9,590,598 shares of ordinary share of RM1 each | |
Principal activities | Health and wellness products and health solution advisory services via network marketing | |
Subsidiary Company Three [Member] | ||
Subsidiary company name | Agape S.E.A. Sdn. Bhd. | |
Place and date of incorporation | Malaysia, March 4, 2004 | |
Particulars of issued capital | 2 shares of ordinary share of RM1 each | |
Principal activities | VIE of Agape Superior Living Sdn. Bhd. | |
Subsidiary Company Four [Member] | ||
Subsidiary company name | Wellness ATP International Holdings Sdn, Bhd | |
Place and date of incorporation | Malaysia, September 11, 2020 | |
Particulars of issued capital | 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 |
ORGANIZATION AND BUSINESS BAC_3
ORGANIZATION AND BUSINESS BACKGROUND (Details Narrative) - $ / shares | May 08, 2020 | Sep. 30, 2021 |
Mr.How Kok Choong [Member] | Share Exchange Agreement [Member] | ||
Stock issued during period, shares, acquisitions | 9,590,596 | |
Mr.How Kok Choong [Member] | Share Exchange Agreement [Member] | Agape Superior Living Sdn Bhd [Member] | ||
Ordinary shares no par value | $ 0 | |
Agape ATP International Holding Limited [Member] | ||
Equity method investment, ownership percentage | 100% | |
Subsidiary Company Two [Member] | ||
Equity method investment, ownership percentage | 99.99% | 99.99% |
Mr.How Kok Choong [Member] | Share Exchange Agreement [Member] | ||
Equity method investment, ownership percentage | 99.99% |
SCHEDULE OF ESTIMATED USEFUL LI
SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives of Property and Equipment | Lease Term |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life of Property and Equipment | 5 years |
Minimum [Member] | Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life of Property and Equipment | 5 years |
Minimum [Member] | Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life of Property and Equipment | 6 years |
Maximum [Member] | Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life of Property and Equipment | 7 years |
Maximum [Member] | Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life of Property and Equipment | 7 years |
SCHEDULE OF ESTIMATED USEFUL _2
SCHEDULE OF ESTIMATED USEFUL LIVES OF INTANGIBLE ASSETS, NET (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Computer Software, Intangible Asset [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 5 years |
SCHEDULE OF DIS-AGGREGATED INFO
SCHEDULE OF DIS-AGGREGATED INFORMATION OF REVENUES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Product Information [Line Items] | ||||
Total revenues | $ 201,284 | $ 1,413,063 | $ 806,850 | $ 2,936,925 |
Survivor Select [Member] | ||||
Product Information [Line Items] | ||||
Total revenues | 14,252 | 83,107 | 51,893 | 119,101 |
Energized Mineral Concentrate [Member] | ||||
Product Information [Line Items] | ||||
Total revenues | 49 | 58,491 | 52,232 | 81,097 |
Ionized Cal Mag [Member] | ||||
Product Information [Line Items] | ||||
Total revenues | 15,506 | 352,718 | 55,804 | 850,716 |
Omega Blend [Member] | ||||
Product Information [Line Items] | ||||
Total revenues | 48,582 | 109,258 | 233,943 | 271,801 |
Beta Maxx [Member] | ||||
Product Information [Line Items] | ||||
Total revenues | 32,605 | 123,080 | 122,405 | 134,514 |
Vege-Fruit Fiber [Member] | ||||
Product Information [Line Items] | ||||
Total revenues | 186 | 1,814 | 186 | 7,920 |
Iron [Member] | ||||
Product Information [Line Items] | ||||
Total revenues | 4,619 | 22,581 | 21,334 | 135,743 |
Young Formula [Member] | ||||
Product Information [Line Items] | ||||
Total revenues | 8,606 | 378,970 | 34,507 | 728,708 |
Organic Youth Car Cleansing Bar [Member] | ||||
Product Information [Line Items] | ||||
Total revenues | 12,395 | 2,990 | 41,200 | |
Mitogize [Member] | ||||
Product Information [Line Items] | ||||
Total revenues | 68,443 | 36,914 | 175,286 | 41,625 |
Lipomask [Member] | ||||
Product Information [Line Items] | ||||
Total revenues | 1,797 | 33,379 | 10,198 | 41,799 |
Hyaluronic Acid Serum [Member] | ||||
Product Information [Line Items] | ||||
Total revenues | 836 | 51,289 | 4,162 | 107,010 |
Mousse Facial Cleanser [Member] | ||||
Product Information [Line Items] | ||||
Total revenues | 3,565 | 24,136 | 11,252 | 27,263 |
Trim+ [Member] | ||||
Product Information [Line Items] | ||||
Total revenues | 930 | 124,931 | 23,604 | 348,428 |
Health and Wellness Services [Member] | ||||
Product Information [Line Items] | ||||
Total revenues | $ 1,308 | $ 7,054 |
SCHEDULE OF FOREIGN CURRENCIES
SCHEDULE OF FOREIGN CURRENCIES TRANSLATION EXCHANGE RATES (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Period-end MYR [Member] | |||||
Debt Instrument [Line Items] | |||||
Foreign Currency Exchange Rate, Translation | 4.19 | 4.19 | 4.02 | ||
Period-end HKD [Member] | |||||
Debt Instrument [Line Items] | |||||
Foreign Currency Exchange Rate, Translation | 7.79 | 7.79 | 7.75 | ||
Period-average MYR [Member] | |||||
Debt Instrument [Line Items] | |||||
Foreign currency exchange rate period average | 4.20 | 4.20 | 4.13 | 4.23 | |
Period-average HKD [Member] | |||||
Debt Instrument [Line Items] | |||||
Foreign currency exchange rate period average | 7.78 | 7.75 | 7.77 | 7.76 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Product Information [Line Items] | |||||
Accounts receivable, allowance for credit loss | $ 0 | $ 0 | $ 0 | ||
Inventories write-down | 0 | $ 0 | 36,636 | ||
Allowance for doubtful accounts | 121,322 | 121,322 | 0 | ||
Impairment of long-lived assets | 0 | 0 | |||
Forfeited coupon income | 1,361 | 93,322 | 12,587 | 93,322 | |
Revenue from sales | 201,284 | 1,413,063 | 806,850 | 2,923,271 | |
Cost of revenue | 36,663 | 186,891 | 149,877 | 658,445 | |
Selling expenses | 82,854 | 159,292 | 299,806 | 268,648 | |
Advertising costs | 2,473 | 5,634 | 19,131 | 8,516 | |
Commission expenses | 76,817 | 300,957 | 258,030 | 683,455 | |
Defined contribution plan expense | 21,674 | 25,442 | $ 74,708 | 49,152 | |
Income tax examination, likelihood of unfavorable settlement | greater than 50% | ||||
Income tax examination, penalties and interest expense | 0 | $ 0 | $ 395 | $ 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 | $ 0 | $ 0 | $ 0 | ||
Potentially dilutive securities outstanding | 0 | 0 | 0 | 0 | 0 |
Social Security Organization [Member] | |||||
Product Information [Line Items] | |||||
Salary percentage | 1.75% | ||||
Social Security Organization [Member] | MYR Currency [Member] | |||||
Product Information [Line Items] | |||||
Monthly salary | $ 4,000 | ||||
Employees Provident Fund [Member] | |||||
Product Information [Line Items] | |||||
Salary percentage | 12% | ||||
Employment Insurance System [Member] | |||||
Product Information [Line Items] | |||||
Salary percentage | 0.20% | ||||
Employment Insurance System [Member] | MYR Currency [Member] | |||||
Product Information [Line Items] | |||||
Monthly salary | $ 4,000 | ||||
Human Resource Development Fund [Member] | |||||
Product Information [Line Items] | |||||
Salary percentage | 1% | ||||
Health and Wellness Products [Member] | |||||
Product Information [Line Items] | |||||
Revenue from sales | $ 86,364 | ||||
Health and Wellness Services [Member] | |||||
Product Information [Line Items] | |||||
Revenue from sales | $ 1,308 | $ 0 | 7,054 | $ 0 | |
Shipping and Handling [Member] | |||||
Product Information [Line Items] | |||||
Selling expenses | $ 2,139 | $ 3,467 | $ 7,411 | $ 6,022 |
The carrying amount of the VIE_
The carrying amount of the VIE’s assets and liabilities were as follows: (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Trading Activity, Gains and Losses, Net [Line Items] | ||||||||||
Cash and cash equivalents | $ 2,880,677 | $ 2,880,677 | $ 3,517,600 | |||||||
Prepaid taxes | 634,395 | 634,395 | 1,104,495 | |||||||
Total current assets | 4,173,746 | 4,173,746 | 5,684,271 | |||||||
Total assets | 5,266,952 | 5,266,952 | 7,210,607 | |||||||
Total current liabilities | 866,243 | 866,243 | 1,038,542 | |||||||
Net deficit | 4,283,046 | $ 5,552,900 | $ 5,760,128 | $ 5,200,096 | $ 4,027,306 | 4,283,046 | $ 5,760,128 | $ 4,874,328 | 5,924,834 | $ 4,251,286 |
Operating revenues | 201,284 | 1,413,063 | 806,850 | 2,923,271 | ||||||
Gross profit | 164,621 | 1,226,172 | 656,973 | 2,278,480 | ||||||
Loss from operations | (364,996) | 410,649 | (1,116,503) | 297,325 | ||||||
Net loss | (571,265) | $ (333,650) | 415,037 | $ 87,240 | $ (231,750) | (1,547,140) | 270,527 | |||
Variable Income Interest Rate [Member] | ||||||||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||||||||
Cash and cash equivalents | 22,232 | 22,232 | 37,387 | |||||||
Prepaid taxes | 1,353 | 1,353 | 11,330 | |||||||
Total current assets | 23,585 | 23,585 | 48,717 | |||||||
Other assets | 8,751 | 8,751 | ||||||||
Total assets | 32,336 | 32,336 | 48,717 | |||||||
Accounts payable - intercompany | 49,581 | 49,581 | 51,669 | |||||||
Other payables and accrued liabilities | 1,257 | 1,257 | 1,904 | |||||||
Total current liabilities | 50,838 | 50,838 | 53,573 | |||||||
Net deficit | (18,502) | (18,502) | $ (4,856) | |||||||
Operating revenues | 146,788 | 276,280 | ||||||||
Gross profit | 955 | 2,328 | ||||||||
Loss from operations | (4,914) | (4,171) | (16,881) | (7,920) | ||||||
Net loss | $ (4,079) | $ (8,627) | $ (14,028) | $ (26,766) |
VARIABLE INTEREST ENTITY (_VI_3
VARIABLE INTEREST ENTITY (“VIE”) (Details Narrative) | Mar. 31, 2021 |
Subsidiary Company Three [Member] | |
Ownership interest percentage | 100% |
SUMMARY OF ASSETS ACQUIRED AND
SUMMARY OF ASSETS ACQUIRED AND LIABILITIES ASSUMED (Details) | Sep. 30, 2021 USD ($) |
Business Combination and Asset Acquisition [Abstract] | |
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 |
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 |
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
SCHEDULE OF PRO FORMA BUSINESS COMBINATION (Details) | 9 Months Ended |
Sep. 30, 2021 USD ($) $ / shares shares | |
Business Combination and Asset Acquisition [Abstract] | |
Revenue | $ 4,178,177 |
Cost of revenue | (737,512) |
Gross profit | 3,440,665 |
Total operating expenses | (3,025,438) |
Income (loss) from operations | 415,227 |
Other income (expense), net | 75,603 |
Income (loss) before income taxes | 490,830 |
Benefit of (Provision for) income taxes | (242,841) |
Net income (loss) | $ 247,989 |
Net income (loss) per common share - basic and diluted | $ / shares | $ 0 |
Weighted average number of common shares outstanding - basic and diluted | shares | 376,452,047 |
BUSINESS COMBINATION (Details N
BUSINESS COMBINATION (Details Narrative) - USD ($) | 3 Months Ended | |||||
May 08, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Dec. 31, 2020 | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||
Issuance of common stock shares | 13,853 | 162,694 | ||||
Common stock par value | $ 0.0001 | $ 0.0001 | ||||
Mr.How Kok Choong [Member] | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||
Purchased price per shares | $ 6.50 | |||||
Share Exchange Agreement [Member] | Mr.How Kok Choong [Member] | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||
Ownership interest percentage | 99.99% | |||||
Mr.How Kok Choong [Member] | Share Exchange Agreement [Member] | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||
Stock issued during period acquisitions, shares | 9,590,596 | |||||
Purchase consideration value | $ 1,804,046 | |||||
Mr.How Kok Choong [Member] | Share Exchange Agreement [Member] | Agape Superior Living Sdn Bhd [Member] | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||
Ordinary shares no par value | $ 0 | |||||
Loan payable | $ 656,495 | |||||
Issuance of common stock shares | 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 ($) | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Cash and cash equivalents | $ 2,880,677 | $ 3,517,600 | |
Cash on hand | 841,836 | 1,112,147 | |
Time deposits | $ 2,032,119 | $ 2,391,182 | |
Maximum [Member] | |||
Percentage of Interest rate for time deposits | 1.80% | 2.95% | |
Minimum [Member] | |||
Percentage of Interest rate for time deposits | 2.15% | 3.25% |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLES (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Credit Loss [Abstract] | ||
Accounts receivable | $ 172,757 | |
Allowance for doubtful accounts | ||
Total | $ 172,757 |
SCHEDULE OF INVENTORIES (Detail
SCHEDULE OF INVENTORIES (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 475,508 | $ 589,814 |
INVENTORIES (Details Narrative)
INVENTORIES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | ||||
Inventory write-down | $ 0 | $ 0 | $ 36,636 |
SCHEDULE OF PREPAID EXPENSES AN
SCHEDULE OF PREPAID EXPENSES AND DEPOSITS (Details) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Prepayments And Deposits | ||||
Receivables from sales distributors | $ 32,580 | $ 35,302 | ||
Deposits to suppliers | 260,761 | 261,068 | ||
Subtotal | 293,341 | 296,370 | ||
Less: Provision for doubtful accounts | (121,322) | $ (121,622) | ||
Total | $ 172,019 | $ 296,370 |
SCHEDULE OF CHANGES IN ALLOWANC
SCHEDULE OF CHANGES IN ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Prepayments And Deposits | |||
Beginning balance | $ 121,622 | ||
Addition | 121,598 | ||
Write off | |||
Exchange rate effect | (300) | (276) | |
Ending balance | $ 121,322 | $ 121,322 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 504,305 | $ 521,463 |
Less: accumulated depreciation | (270,296) | (223,154) |
Total | 234,009 | 298,309 |
Computer and Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 82,062 | 81,437 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 121,835 | 126,966 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 201,989 | 210,496 |
Vehicle [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 98,419 | $ 102,564 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 18,740 | $ 18,808 | $ 56,919 | $ 36,524 |
SCHEDULE OF INTANGIBLE ASSETS,
SCHEDULE OF INTANGIBLE ASSETS, NET (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Computer software | $ 34,355 | $ 35,801 |
Less: accumulated amortization | (30,227) | (29,975) |
Total | $ 4,128 | $ 5,826 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of Intangible Assets | $ 476 | $ 511 | $ 1,482 | $ 993 |
SCHEDULE OF INVESTMENT IN MARKE
SCHEDULE OF INVESTMENT IN MARKETABLE SECURITIES (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Investment In Marketable Securities | ||
Cost of investment | $ 577,035 | $ 66,484 |
Dividend income from Greenpro Capital Corp. | 160,062 | |
Unrealized holding (loss) gain | (374,900) | 350,137 |
Exchange rate effect | (1,491) | 352 |
Investment in marketable securities | $ 200,644 | $ 577,035 |
INVESTMENT IN MARKETABLE SECU_3
INVESTMENT IN MARKETABLE SECURITIES (Details Narrative) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 09, 2020 | Nov. 03, 2020 | Oct. 16, 2018 | Jul. 30, 2018 | May 17, 2018 |
Investment amount | $ 577,035 | $ 66,484 | |||||
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 | ||||
DSwiss 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 ($) | Sep. 30, 2021 | Dec. 31, 2020 | Apr. 03, 2019 |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Cost of investment | $ 577,035 | $ 66,484 | |
Total investment in non-marketable securities | 1,500 | 1,500 | |
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 |
Total investment in non-marketable securities | 1,500 | 1,500 | |
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 | ||
Less: Sale of investment in non-marketable securities | (730,637) | ||
Investment in non-marketable securities |
INVESTMENT IN NON-MARKETABLE _3
INVESTMENT IN NON-MARKETABLE SECURITIES (Details Narrative) | 3 Months Ended | 9 Months Ended | |||||||
Mar. 31, 2020 USD ($) | Sep. 30, 2021 USD ($) shares | Sep. 30, 2020 USD ($) | Sep. 30, 2021 MYR (RM) shares | Dec. 31, 2020 USD ($) shares | Mar. 03, 2020 | Dec. 31, 2019 USD ($) | Apr. 03, 2019 USD ($) $ / shares shares | Mar. 10, 2019 | |
Investment amount | $ 577,035 | $ 66,484 | |||||||
Ordinary shares authorized | shares | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | ||||||
Proceeds from investments | $ 70,173 | $ 70,173 | |||||||
Phoenix Plus Corporation [Member] | |||||||||
Investment amount | $ 1,500 | $ 1,500 | $ 1,500 | ||||||
Shares Issued, Price Per Share | $ / shares | $ 0.0001 | ||||||||
Common Stock [Member] | Phoenix Plus Corporation [Member] | |||||||||
Shares purchased during period | shares | 15,000,000 | ||||||||
Director [Member] | |||||||||
Equity interest percentage | 20% | 20% | |||||||
Unreserved Sdn Bhd [Member] | |||||||||
Equity interest percentage | 17.86% | ||||||||
Unreserved Sdn Bhd [Member] | Maximum [Member] | |||||||||
Equity interest percentage | 20% | ||||||||
Unreserved Sdn Bhd [Member] | Minimum [Member] | |||||||||
Equity interest percentage | 17.86% | ||||||||
Phoenix Plus Corporation [Member] | |||||||||
Equity interest percentage | 5% | ||||||||
Director [Member] | |||||||||
Investment amount | $ 863,592 | RM 3,500,000 | |||||||
Mr.How Kok Choong [Member] | |||||||||
Investment amount | $ 730,637 | ||||||||
Ordinary shares authorized | shares | 2,500,000 | 2,500,000 | |||||||
Amount due from director | $ 660,464 |
SCHEDULE OF OTHER PAYABLES AND
SCHEDULE OF OTHER PAYABLES AND ACCRUED LIABILITIES (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Other Liabilities Disclosure [Abstract] | ||
Professional fees | $ 166,980 | $ 297,636 |
Promotion expenses | 35,921 | 37,433 |
Payroll | 22,329 | 23,976 |
Commissions | 229,022 | 224,711 |
Others | 53,873 | 63,921 |
Total | $ 508,125 | $ 647,677 |
SCHEDULE OF RELATED PARTIES (De
SCHEDULE OF RELATED PARTIES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||||
Due to Related Parties | $ 455 | ||||
Revenue | $ 13,654 | ||||
Other income | 1,428 | $ 1,443 | $ 4,357 | $ 1,443 | |
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 | |||
Nature | Expenses paid for AATP Asia | Expenses paid for AATP Asia | |||
Amount due from related parties | 2,218 | $ 2,218 | $ 2,227 | ||
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 | |||
Nature | Sublease rent due from Hostastay | Sublease rent due from Hostastay | |||
Amount due from related parties | 4,777 | $ 4,777 | $ 996 | ||
Redboy Pictures 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 Redboy Pictures Sdn Bhd | Mr. How Kok Choong, the CEO and director of the Company is also the director of Redboy Pictures Sdn Bhd | |||
Nature | Expenses paid for Redboy Pictures Sdn Bhd | Expenses paid for Redboy Pictures Sdn Bhd | |||
Amount due from related parties | 4,152 | $ 4,152 | |||
TH3 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 | |||
Nature | 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 | |||
Nature | ATP Printing label fees | ATP Printing label fees | |||
Due to Related Parties | $ 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 | |||
Nature | Sale of products | Sale of products | |||
Revenue | $ 13,654 | ||||
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 | 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 | |
Other income | $ 1,428 | $ 1,443 | $ 4,357 | $ 1,443 |
STOCKHOLDERS_ EQUITY (Details N
STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jul. 31, 2020 | May 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||||||
Preferred stock, shares authorized | 200,000,000 | 200,000,000 | 200,000,000 | |||||
Preferred stock, shares issued | 0 | 0 | 0 | |||||
Preferred stock, shares outstanding | 0 | 0 | 0 | |||||
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |||||
Common stock, shares issued | 376,452,047 | 376,452,047 | 376,452,047 | |||||
Common stock, shares outstanding | 376,452,047 | 376,452,047 | 376,452,047 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | $ 4,105,376 | $ 4,105,376 | ||||||
Potentially dilutive securities outstanding | 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 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | $ 90,043 | |||||||
Business acquisition percentage of voting interests | 99.99% | 99.99% | ||||||
Non controlling interests | $ 0 |
SCHEDULE OF COMPONENTS OF INCOM
SCHEDULE OF COMPONENTS OF INCOME/(LOSS) BEFORE INCOME TAX (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Local | $ (117,272) | $ (96,606) | $ (321,567) | $ (400,776) |
Loss before income tax | (585,808) | 472,978 | (1,551,592) | 462,535 |
MALAYSIA | ||||
Foreign | (257,590) | 719,561 | (727,265) | 1,033,341 |
HONG KONG | ||||
Foreign | $ (210,946) | $ (149,977) | $ (502,760) | $ (170,030) |
SCHEDULE OF PROVISION FOR INCOM
SCHEDULE OF PROVISION FOR INCOME TAX (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
- Local | $ (22,205) | |||
- Foreign | (63,792) | (20,381) | (104,977) | (20,381) |
- Local | ||||
- Foreign | 78,335 | (37,560) | 131,634 | (171,627) |
Benefit of (provision for) income tax | $ 14,543 | $ (57,941) | $ 4,452 | $ (192,008) |
SCHEDULE OF DEFERRED TAX ASSETS
SCHEDULE OF DEFERRED TAX ASSETS (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Less: valuation allowance | $ (72,192) | |
Depreciation | (28,187) | (68,421) |
Deferred tax asset, net | 124,366 | |
Deferred tax (liabilities), net | (5,743) | |
UNITED STATES | ||
Net operating loss carry forwards | 72,192 | |
Less: valuation allowance | (72,000) | 0 |
MALAYSIA | ||
Net operating loss carry forwards | $ 152,553 | $ 62,678 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Jan. 02, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | ||||||
Income tax examination, 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. | |||||
Income tax expense benefit | $ (14,543) | $ 57,941 | $ (4,452) | $ 192,008 | ||
Income tax interest and penalties | 0 | $ 0 | 395 | $ 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 | ||||
Deferred Tax Assets, Valuation Allowance | 72,192 | 72,192 | ||||
UNITED STATES | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Cumulative net operating loss | 344,000 | 344,000 | 0 | |||
Deferred Tax Assets, Valuation Allowance | $ 72,000 | $ 72,000 | $ 0 | |||
Labuan [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Tax percentage | 24% | |||||
Effective Income Tax Rate Reconciliation, Percent | 3% | |||||
MALAYSIA | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Tax percentage | 17% | |||||
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 nine months ended September 30, 2021 and RM 500,000 (or approximately $125,000) income for the three and nine months ended September 30, 2020, with the remaining balance being taxed at the 24% rate. | |||||
HONG KONG | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Tax percentage | 16.50% | |||||
State and Local Jurisdiction [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Tax percentage | 21% | |||||
Foreign Tax Authority [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Tax percentage | 35% | |||||
Domestic Tax Authority [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Income tax expense benefit | $ 22,205 |
CONCENTRATIONS OF RISKS (Detail
CONCENTRATIONS OF RISKS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Concentration Risk [Line Items] | |||||
Deposits | $ 841,836 | $ 841,836 | $ 1,112,147 | ||
Deposit for insurance | $ 509,027 | $ 509,027 | $ 563,788 | ||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | E-commerce [Member] | Customer [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentrations of risk percentage | 10% | 10% | 10% | 10% | |
Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | One Sales Distributor [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentrations of risk percentage | 17.80% | 10.50% | 19.40% | ||
Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | Two Sales Distributor [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentrations of risk percentage | 10.30% | ||||
Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | Sales Distributor [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentrations of risk percentage | 10% | ||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | E-commerce [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentrations of risk percentage | 100% | ||||
Accounts Payable [Member] | Supplier Concentration Risk [Member] | One Vendor [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentrations of risk percentage | 69.30% | 63.70% | 74.30% | 66.60% | |
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Two Vendor [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentrations of risk percentage | 26.50% | 36.30% | 14.10% | 33.40% | |
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Three Vendor [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentrations of risk percentage | 10% |
SCHEDULE OF LEASE COMMITMENTS (
SCHEDULE OF LEASE COMMITMENTS (Details) | Sep. 30, 2021 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 159,866 |
2023 | 120,411 |
Thereafter | |
Total lease payments | 280,277 |
Less: interest | (13,695) |
Present value of lease liabilities | $ 266,582 |
SCHEDULE OF PURCHASE COMMITMENT
SCHEDULE OF PURCHASE COMMITMENTS (Details) | Sep. 30, 2021 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 693,900 |
2023 | 693,900 |
2024 | 693,900 |
2025 | 693,900 |
2026 | 693,900 |
Thereafter | 867,375 |
Total minimum purchase commitments required | $ 4,336,875 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
May 31, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Apr. 02, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Operating lease liability | $ 266,582 | $ 266,582 | ||||
Lease expiration term | May 31, 2023 | |||||
Reduction in ROU assets and liabilities | $ 3,259 | |||||
Operating lease, rent expenses | $ 44,344 | $ 58,793 | $ 135,865 | $ 111,465 | ||
COVID-19 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 was 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. The COVID-19 situation in the country showed no sign of abating. Kuala Lumpur and Selangor remained the epicenter of the latest wave of infections. Total COVID-19 cases in the country surpassed the one million mark on July 25, 2021, and daily cases hit a record high of 24,599 on August 26, 2021. Despite the deteriorating COVID-19 state, the government lifted Kuala Lumpur from Enhanced Movement Control Order (“EMCO”) ahead of schedule and ended the nationwide state of emergency on August 1, 2021. Parliament met for the first time this year on July 26, 2021. Malaysia pressed on with its National COVID-19 Immunisation Plan, fast inoculating its residents. COVID-19 infection started to drop below the 10,000 mark daily, beginning October 3, 2021. Effective October 11, 2021, interstate and international travel restrictions were lifted for residents who had been fully vaccinated against COVID-19 as the country achieved its target of inoculating 90% of its adult population. The government is preparing to shift into an endemic COVID-19 phase where it will not impose wide lockdowns even if cases rise. As of October 31, 2021, over 75% of the country’s population have been fully vaccinated. | |||||
Training Center [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Lease expiration term | Aug. 31, 2023 | |||||
ASL [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Operating lease liability | $ 490,000 | |||||
Operating lease effective interest rate | 5.50% | 5.50% | ||||
Operating lease, weighted average remaining lease term | 1 year 9 months 14 days | 1 year 9 months 14 days |
SUBSEQUENT EVENT (Details Narra
SUBSEQUENT EVENT (Details Narrative) | Nov. 11, 2021 |
DSY Wellness International Sdn. Bhd [Member] | Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Equity method investment, ownership percentage | 60% |