Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 11, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2022 | |
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 | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 75,452,012 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
CURRENT ASSETS | ||
Cash and cash equivalents (Included $3,997 and $17,493 in the consolidated VIE that can be used only to settle obligations of the consolidated VIE as of September 30, 2022 and December 31, 2021, respectively) | $ 1,584,869 | $ 2,597,848 |
Accounts receivable | 1,720 | |
Amount due from related parties | 7,004 | |
Inventories | 275,410 | 375,535 |
Prepaid taxes (Included $1,654 and $1,357 in the consolidated VIE that can be used only to settle obligations of the consolidated VIE as of September 30, 2022 and December 31, 2021, respectively) | 322,438 | 636,218 |
Prepayments and deposits | 170,732 | 295,517 |
Total Current Assets | 2,355,169 | 3,912,122 |
OTHER ASSETS | ||
Property and equipment, net | 148,798 | 215,799 |
Intangible assets, net | 2,052 | 3,660 |
Operating right-of-use assets | 114,016 | 237,718 |
Investment in marketable securities | 24,270 | 89,001 |
Investment in non-marketable securities | 1,500 | 1,500 |
Deferred offering costs | 449,201 | 264,735 |
Total Other Assets | 739,837 | 812,413 |
TOTAL ASSETS | 3,095,006 | 4,724,535 |
CURRENT LIABILITIES | ||
Accounts payable | 21,518 | 13,715 |
Accounts payable – related parties | 19,155 | |
Customer deposits | 68,868 | 279,689 |
Operating lease liabilities | 115,770 | 157,094 |
Other payables and accrued liabilities ($1,087 and $1,548 are included in the consolidated VIE that are without recourse to the credit of Agape ATP Corporation as of September 30, 2022 and December 31, 2021, respectively) | 616,308 | 858,355 |
Other payable – related parties | 3,816 | |
Income tax payable | 4,565 | 3,988 |
Total Current Liabilities | 850,000 | 1,312,841 |
NON-CURRENT LIABILITIES | ||
Operating lease liabilities | 429 | 83,484 |
Deferred tax liabilities | 15,574 | |
Total Non-current Liabilities | 429 | 99,058 |
TOTAL LIABILITIES | 850,429 | 1,411,899 |
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, 75,452,012 and 290,460,047 shares issued and outstanding as of September 30, 2022 and December 31, 2021 respectively | 7,545 | 29,046 |
Additional paid in capital | 6,470,716 | 6,449,215 |
Accumulated deficit | (4,213,396) | (3,258,687) |
Accumulated other comprehensive income (loss) | (30,997) | 93,398 |
TOTAL AGAPE CORPORATION STOCKHOLDERS’ EQUITY | 2,233,868 | 3,312,972 |
NON-CONTROLLING INTERESTS | 10,709 | (336) |
TOTAL EQUITY | 2,244,577 | 3,312,636 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 3,095,006 | $ 4,724,535 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
VIE consolidated amount of cash and cash equivalents | $ 3,997 | $ 17,493 |
VIE consolidated amount of prepaid taxes | 1,654 | 1,357 |
VIE consolidated amount of other payables and accrued liabilities | $ 1,087 | $ 1,548 |
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 | 75,452,012 | 290,460,047 |
Common stock, shares outstanding | 75,452,012 | 290,460,047 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
REVENUE | $ 663,889 | $ 201,284 | $ 1,469,556 | $ 806,850 |
COST OF REVENUE | (157,745) | (36,663) | (340,559) | (149,877) |
GROSS PROFIT | 506,144 | 164,621 | 1,128,997 | 656,973 |
SELLING | (76,030) | (82,854) | (270,228) | (299,806) |
COMMISSION | (167,395) | (76,817) | (344,061) | (258,030) |
GENERAL AND ADMINISTRATIVE | (456,027) | (369,946) | (1,286,431) | (1,094,042) |
PROVISION FOR DOUBTFUL ACCOUNTS | (121,598) | |||
TOTAL OPERATING EXPENSES | (699,452) | (529,617) | (1,900,720) | (1,773,476) |
LOSS FROM OPERATIONS | (193,308) | (364,996) | (771,723) | (1,116,503) |
OTHER INCOME (EXPENSES) | ||||
Other income, net | 1,173 | 2,730 | 13,999 | 13,849 |
Interest income | 3,820 | 5,827 | 12,071 | 19,997 |
Unrealized holding loss on marketable securities | (11,395) | (209,169) | (64,284) | (374,900) |
Foreign exchange loss, net | (59,504) | (20,200) | (143,387) | (94,035) |
TOTAL OTHER EXPENSES, NET | (65,906) | (220,812) | (181,601) | (435,089) |
LOSS BEFORE INCOME TAXES | (259,214) | (585,808) | (953,324) | (1,551,592) |
BENEFIT OF INCOME TAXES | 18,997 | 14,543 | 10,317 | 4,452 |
NET LOSS | (240,217) | (571,265) | (943,007) | (1,547,140) |
LESS: NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS | 495 | 11,704 | ||
NET LOSS ATTRIBUTABLE TO AGAPE ATP CORPORATION | (240,712) | (571,265) | (954,711) | (1,547,140) |
NET LOSS | (240,217) | (571,265) | (943,007) | (1,547,140) |
OTHER COMPREHENSIVE LOSS | ||||
Foreign currency translation adjustment | (51,216) | (20,017) | (124,395) | (94,648) |
TOTAL COMPREHENSIVE LOSS | (291,433) | (591,282) | (1,067,402) | (1,641,788) |
Less: Comprehensive loss attributable to non-controlling interests | (387) | (658) | ||
COMPREHENSIVE LOSS ATTRIBUTABLE TO AGAPE ATP CORPORATION | $ (291,046) | $ (591,282) | $ (1,066,744) | $ (1,641,788) |
LOSS PER SHARE | ||||
Basic and diluted | $ 0 | $ 0 | $ (0.01) | $ 0 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING | ||||
Basic and diluted | 75,452,012 | 376,452,047 | 91,991,092 | 376,452,047 |
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] | Noncontrolling Interest [Member] | Total |
Balance at Dec. 31, 2020 | $ 37,645 | $ 6,440,616 | $ (734,443) | $ 181,016 | $ 5,924,834 | |
Balance, shares at Dec. 31, 2020 | 376,452,047 | |||||
Net loss | (333,650) | (333,650) | ||||
Foreign currency translation adjustment | (38,284) | (38,284) | ||||
Balance at Mar. 31, 2021 | $ 37,645 | 6,440,616 | (1,068,093) | 142,732 | 5,552,900 | |
Balance, shares at Mar. 31, 2021 | 376,452,047 | |||||
Balance at Dec. 31, 2020 | $ 37,645 | 6,440,616 | (734,443) | 181,016 | 5,924,834 | |
Balance, shares at Dec. 31, 2020 | 376,452,047 | |||||
Net loss | (1,547,140) | |||||
Balance at Sep. 30, 2021 | $ 37,645 | 6,440,616 | (2,281,583) | 86,368 | 4,283,046 | |
Balance, shares at Sep. 30, 2021 | 376,452,047 | |||||
Balance at Mar. 31, 2021 | $ 37,645 | 6,440,616 | (1,068,093) | 142,732 | 5,552,900 | |
Balance, shares at Mar. 31, 2021 | 376,452,047 | |||||
Net loss | (642,225) | (642,225) | ||||
Foreign currency translation adjustment | (36,347) | (36,347) | ||||
Balance at Jun. 30, 2021 | $ 37,645 | 6,440,616 | (1,710,318) | 106,385 | 4,874,328 | |
Balance, shares at Jun. 30, 2021 | 376,452,047 | |||||
Net loss | (571,265) | (571,265) | ||||
Foreign currency translation adjustment | (20,017) | (20,017) | ||||
Balance at Sep. 30, 2021 | $ 37,645 | 6,440,616 | (2,281,583) | 86,368 | 4,283,046 | |
Balance, shares at Sep. 30, 2021 | 376,452,047 | |||||
Balance at Dec. 31, 2021 | $ 29,046 | 6,449,215 | (3,258,687) | 93,398 | (336) | 3,312,636 |
Balance, shares at Dec. 31, 2021 | 290,460,047 | |||||
Net loss | (299,097) | 651 | (298,446) | |||
Foreign currency translation adjustment | (12,023) | 1 | (12,022) | |||
Forfeiture of common stock | $ (21,501) | 21,501 | ||||
Forfeiture of common stock,shares | (215,008,035) | |||||
Balance at Mar. 31, 2022 | $ 7,545 | 6,470,716 | (3,557,784) | 81,375 | 316 | 3,002,168 |
Balance, shares at Mar. 31, 2022 | 75,452,012 | |||||
Balance at Dec. 31, 2021 | $ 29,046 | 6,449,215 | (3,258,687) | 93,398 | (336) | 3,312,636 |
Balance, shares at Dec. 31, 2021 | 290,460,047 | |||||
Net loss | (943,007) | |||||
Balance at Sep. 30, 2022 | $ 7,545 | 6,470,716 | (4,213,396) | (30,997) | 10,709 | 2,244,577 |
Balance, shares at Sep. 30, 2022 | 75,452,012 | |||||
Balance at Mar. 31, 2022 | $ 7,545 | 6,470,716 | (3,557,784) | 81,375 | 316 | 3,002,168 |
Balance, shares at Mar. 31, 2022 | 75,452,012 | |||||
Net loss | (414,900) | 10,556 | (404,344) | |||
Foreign currency translation adjustment | (61,156) | (271) | (61,427) | |||
Balance at Jun. 30, 2022 | $ 7,545 | 6,470,716 | (3,972,684) | 20,219 | 10,601 | 2,536,397 |
Balance, shares at Jun. 30, 2022 | 75,452,012 | |||||
Net loss | (240,712) | 495 | (240,217) | |||
Foreign currency translation adjustment | (51,216) | (387) | (51,603) | |||
Balance at Sep. 30, 2022 | $ 7,545 | $ 6,470,716 | $ (4,213,396) | $ (30,997) | $ 10,709 | $ 2,244,577 |
Balance, shares at Sep. 30, 2022 | 75,452,012 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (943,007) | $ (1,547,140) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 54,138 | 56,919 |
Amortization | 1,322 | 1,482 |
Amortization of operating right-of-use assets | 106,300 | 112,678 |
Unrealized holding loss on marketable securities | 64,284 | 374,900 |
Deferred tax benefit | (14,903) | (131,634) |
Inventory write-downs | 36,636 | |
Provision for doubtful accounts | 121,598 | |
Changes in operating assets and liabilities: | ||
Accounts receivables | (1,828) | 168,019 |
Amount due from related parties | 6,788 | |
Inventories | 81,376 | 90,580 |
Prepaid taxes | 266,120 | 431,224 |
Prepayments and deposits | 103,276 | (4,309) |
Accounts payable | 9,743 | |
Accounts payable – related parties | 20,357 | |
Customer deposits | (197,518) | (44,044) |
Operating lease liabilities | (106,716) | (111,460) |
Other payables and accrued liabilities | (192,108) | (123,082) |
Other payable – related parties | 4,056 | |
Income tax payable | 864 | 26,193 |
Net cash used in operating activities | (737,456) | (541,440) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of equipment | (5,777) | (3,970) |
Net cash used in investing activities | (5,777) | (3,970) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Deferred offering costs | (184,466) | (15,210) |
Advances to related parties | (8,070) | |
Net cash used in financing activities | (184,466) | (23,280) |
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS | (85,280) | (68,233) |
DECREASE IN CASH AND CASH EQUIVALENTS | (1,012,979) | (636,923) |
CASH AND CASH EQUIVALENTS, beginning of period | 2,597,848 | 3,517,600 |
CASH AND CASH EQUIVALENTS, end of period | 1,584,869 | 2,880,677 |
SUPPLEMENTAL CASH FLOWS INFORMATION | ||
Income taxes paid | 79,451 | 327,722 |
SUPPLEMENTAL NON-CASH FLOWS INFORMATION | ||
Changes in right-of-use assets and lease liabilities due to lease modifications | $ 3,259 |
ORGANIZATION AND BUSINESS BACKG
ORGANIZATION AND BUSINESS BACKGROUND | 9 Months Ended |
Sep. 30, 2022 | |
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 subsidiaries, namely, Agape ATP Corporation, a company incorporated in Labuan, Malaysia, and Agape Superior Living Sdn. Bhd. (“ASL”), a company incorporated in Malaysia. Agape ATP Corporation, incorporated in Labuan, Malaysia, is an investment holding company with 100 On May 8, 2020, the Company entered into a Share Exchange Agreement with Mr. How Kok Choong, CEO and director of the Company to acquire 9,590,596 99.99 Agape Superior Living Sdn. Bhd. 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. On November 11, 2021, Agape ATP Corporation (Labuan) formed a joint-venture entity, DSY Wellness International Sdn. Bhd. (“DSY Wellness”) with an independent third party which Agape ATP Corporation (Labuan) owns 60 . 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 consolidated financial statements reflect the activities of the Company, AATP LB, AATP HK, WATP, ASL and its variable interest entity (“VIE”), Agape S.E.A. Sdn. Bhd. (“SEA”) (See Note 3), and DSY Wellness. Details of the Company’s subsidiaries: SCHEDULE OF SUBSIDIARIES AND ASSOCIATES Subsidiary company name Place and date of incorporation Particulars of 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$1 each Wholesaling of health and wellness products; and health solution advisory services 100 % 3. Agape Superior Living Sdn. Bhd. Malaysia, 9,590,598 shares of ordinary share of RM1 each Health and wellness products and health solution advisory services via network marketing 99.99 % 4. Agape S.E.A. Sdn. Bhd. Malaysia, 2 shares of ordinary share of RM1 each VIE of Agape Superior Living Sdn. Bhd. VIE 5. Wellness ATP International Holdings Sdn, Bhd Malaysia, 100 shares of ordinary share of RM1 each The promotion of wellness and wellbeing lifestyle of the community by providing services that includes online editorials, programs, events and campaigns 100 % 6. DSY Wellness International Sdn Bhd. Malaysia, 1,000 shares of ordinary share of RM1 each Provision of complementary health therapies 60 % AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), 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 Via ASL, 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. 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. To further its reach in the Health and Wellness Industry, on November 11, 2021, Agape ATP Corporation (Labuan) formed a joint-venture entity, DSY Wellness International Sdn. Bhd. (“DSY Wellness”) with an independent third party which Agape ATP Corporation (Labuan) owns 60 . AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying interim unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The interim unaudited financial information as of September 30, 2022 and for the three and nine months ended September 30, 2022 and 2021 have been prepared without audit, pursuant to the rules and regulations of the SEC and pursuant to Regulation S-X. Certain information and footnote disclosures, which are normally included in annual financial statements prepared in accordance with U. S. GAAP, have been omitted pursuant to those rules and regulations. The interim unaudited financial information should be read in conjunction with the audited financial statements and the notes thereto, included in the Form 10-K for the fiscal year ended December 31, 2021, which was filed with the SEC on March 28, 2022. In the opinion of management, all adjustments (including normal recurring adjustments) necessary to present a fair statement of the Company’s unaudited financial position as of September 30, 2022, its unaudited results of operations for the three and nine months ended September 30, 2022 and 2021, and its unaudited cash flows for the nine months ended September 30, 2022 and 2021, as applicable, have been made. The unaudited interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods. The unaudited condensed consolidated financial statements include the financial statements of the Company, its subsidiaries and its variable interest entity (“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. Principles of 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. As of and for the three and nine months ended September 30, 2022, SEA, the only VIE of the Company has no significant operations. 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 consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s consolidated financial statements include allowance for doubtful accounts, allowance for inventories obsolescence, useful lives of property and equipment, useful lives of intangible assets, impairment of long-lived assets, allowance for deferred tax assets, operating right-of-use assets, operating lease liabilities and uncertain tax position and impairment of investment in non-marketable securities. Actual results could differ from these estimates. Cash and cash equivalents Cash and cash equivalents 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. 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) 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, 2022 and December 31, 2021, no 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, 2022 and 2021, the Company did not recognize any inventory write-downs. For the nine months ended September 30, 2022 and 2021, the Company recognized inventory write-downs of $ 0 36,636 Prepaid taxes Prepaid taxes include prepaid income taxes that will either be refunded or utilized to offset future income tax . Prepayments and deposits Prepayments and deposits are mainly cash deposited or advanced to suppliers for future inventory purchases or service providers for future services. This amount is refundable and bears no interest. For any prepayments and deposits determined by management that such advances will not be in receipts of inventories, services, or refundable, the Company will recognize an allowance account to reserve such balances. Management reviews its prepayments and deposits on a regular basis to determine if the allowance is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. The Company’s management continues to evaluate the reasonableness of the allowance policy and update it if necessary. For the three and nine months ended September 30, 2022, the Company wrote-off doubtful debts of $120,372. There were no doubtful debts written-off during the three and nine months ended September 30, 2021. As of September 30, 2022 and December 31, 2021, there was $ 0 121,095 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: 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) SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT Useful Life Computer and office equipment 5 7 Furniture & fixtures 6 7 Leasehold improvements Lease Term Vehicle 5 The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the consolidated statements of income and comprehensive income. Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives. Intangible assets, net Intangible assets, net, are stated at cost, less accumulated amortization. Amortization expense is recognized on the straight-line basis over the estimated useful lives of the assets as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF INTANGIBLE ASSETS, NET Classification Useful Life Computer software 5 Impairment for long-lived assets Long-lived assets, including property and equipment, and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. As of September 30, 2022 and December 31, 2021, 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 proposed offering for uplisting. 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). 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. 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 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, 2022 and 2021, the Company recognized $ 5,923 1,361 6,876 12,587 The Company had contracts for the sales of health and wellness products amounting to $ 0 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 session 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, 2022 and 2021, revenues from health and wellness services were $ 40,930 1,308 72,069 7,054 AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Disaggregated information of revenues by products are as follows: SCHEDULE OF DIS-AGGREGATED INFORMATION OF REVENUES 2022 2021 2022 2021 For the three months ended For the nine months ended September 30, September 30, 2022 2021 2022 2021 Survivor Select $ 78,243 $ 14,252 $ 100,996 $ 51,893 Energized Mineral Concentrate - 49 - 52,232 Ionized Cal-Mag 57,653 15,506 120,021 55,804 Omega Blend 66,890 48,582 246,067 233,943 Beta Maxx 71,559 32,605 119,196 122,405 Vege-Fruit Fiber - 186 - 186 Iron 2,514 4,619 9,700 21,334 Young Formula - 8,606 34,269 34,507 Organic Youth Care Cleansing Bar - - - 2,990 ATPR Mito+ 90,152 68,443 278,078 175,286 Lipomask - 1,797 - 10,198 Hyaluronic Acid Serum 10,934 836 13,940 4,162 Mousse Facial Cleanser 6,176 3,565 13,570 11,252 Trim+ 76,118 930 82,354 23,604 Others – Products for the provision of complementary health therapies 159,934 - 376,122 - Others 2,786 - 3,174 - Total revenues - products 622,959 199,976 1,397,487 799,796 Health and Wellness services 40,930 1,308 72,069 7,054 Total revenues - products and services $ 663,889 $ 201,284 $ 1,469,556 $ 806,850 Cost of revenue Cost of revenue for the three and nine months ended September 30, 2022 were $ 157,745 340,559 36,663 149,877 36,636 Shipping and handling Shipping and handling charges amounted to $ 7,364 2,139 14,543 7,411 Advertising costs Advertising costs amounted to $ 0 2,473 4,737 19,131 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) 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 $ 167,395 76,817 344,061 258,030 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 $ 34,966 21,674 98,373 74,708 The related contribution plans include: - Social Security Organization (“SOSCO”) – 1.75 - Employees Provident Fund (“EPF”) – 12 - Employment Insurance System (“EIS”) – 0.2 - Human Resource Development Fund (“HRDF”) – 1 Income taxes The Company accounts for income taxes in accordance with U.S. GAAP for income taxes. The charge for taxation is based on the results for the fiscal year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred taxes is accounted for using the asset and liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the consolidated financial statements and the corresponding tax basis used in the computation of assessable tax profit. In principle, deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilized. Deferred tax is calculated using tax rates that are expected to apply to the period when the asset is realized or the liability is settled. 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) 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 The Company conducts much of its business activities in Hong Kong and Malaysia and is subject to tax in each of these jurisdictions. As a result of its business activities, the Company will file separate tax returns that are subject to examination by the foreign tax authorities. Comprehensive income (loss) Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under GAAP are recorded as an element of stockholders’ equity but are excluded from net income. Other comprehensive income (loss) consists of a foreign currency translation adjustment resulting from the Company not using the U.S. dollar as its functional currencies. Non-controlling interest Non-controlling interest consists of 40% of the equity interests of DSY Wellness held by an individual and approximately 0.01% (2 ordinary shares out of 9,590,598 shares) of the equity interests of ASL held by two individuals 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 (loss) 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 common stocks (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common stocks 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, 2022 and 2021, there were 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) Foreign currencies translation and transaction Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the consolidated statements of operations and comprehensive loss. The reporting currency of the Company is United States Dollars (“US$”) and the accompanying financial statements have been expressed in US$. The Company’s subsidiary in Labuan maintains its books and record in United States Dollars (“US$”) albeit its functional currency being the primary currency of the economic environment in which the entity operates, which is the Malaysian Ringgit (“MYR” or “RM”). The Company’s subsidiary in Hong Kong maintains its books and record in Hong Kong Dollars (“HK$”), similar to its functional currency. The Company’s subsidiary and VIE in Malaysia conducts its businesses and maintains its books and record in the local currency, Malaysian Ringgit (“MYR” or “RM”), as its functional currency. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “ Translation of Financial Statement” Translation of foreign currencies into US$1 have been made at the following exchange rates for the respective periods: SCHEDULE OF FOREIGN CURRENCIES TRANSLATION EXCHANGE RATES September 30, 2022 December 31, 2021 As of September 30, 2022 December 31, 2021 Period-end MYR : US$1 exchange rate 4.64 4.18 Period-end HKD : US$1 exchange rate 7.85 7.80 Foreign currency exchange rate, translation 7.85 7.80 2022 2021 2022 2021 For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Period-average MYR : US$1 exchange rate 4.52 4.20 4.36 4.13 Period-average HKD : US$1 exchange rate 7.85 7.78 7.84 7.77 Foreign currency exchange rate period average 7.85 7.78 7.84 7.77 AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Related parties Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence. Fair value of financial instruments The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company. The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. Financial instruments included in current assets and current liabilities are reported in the consolidated balance sheets at face value or cost, which approximate fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest. Leases The Company adopted ASU 2016-02, “Leases” (Topic 842), and elected the practical expedients that does not require the Company to reassess: (1) whether any expired or existing contracts are, or contain, leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. For lease terms of twelve months or fewer, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. The Company also adopts the practical expedient that allows lessees to treat the lease and non-lease components of a lease as a single lease component. 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. 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) 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, considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. In November 2019, the FASB issued ASU No. 2019-10, which to update the effective date of ASU No. 2016-13 for private compa |
VARIABLE INTEREST ENTITY (_VIE_
VARIABLE INTEREST ENTITY (“VIE”) | 9 Months Ended |
Sep. 30, 2022 | |
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 financial statements. AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 3. VARIABLE INTEREST ENTITY (“VIE”) (Continued) The carrying amount of the VIE’s assets and liabilities were as follows: SCHEDULE OF VARIABLE INTEREST ENTITY September 30, 2022 December 31, 2021 As of September 30, 2022 December 31, 2021 Current assets $ 5,651 $ 18,850 Current liabilities (41,393 ) (51,272 ) Net deficit $ (35,742 ) $ (32,422 ) As of September 30, 2022 December 31, 2021 Current assets: Cash $ 3,997 $ 17,493 Prepaid taxes 1,654 1,357 Total current assets $ 5,651 $ 18,850 Current liabilities: Accounts payable – intercompany $ 40,306 $ 49,724 Other payables and accrued liabilities 1,087 1,548 Total current liabilities $ 41,393 $ 51,272 Net deficit $ (35,742 ) $ (32,422 ) The summarized operating results of the VIE’s are as follows: 2022 2021 2022 2021 For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Operating revenues $ - $ - $ - $ - Gross profit $ - $ - $ - $ - Loss from operations $ (3,743 ) $ (4,914 ) $ (6,962 ) $ (16,881 ) Net loss $ (3,743 ) $ (4,079 ) $ (6,962 ) $ (14,028 ) AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 9 Months Ended |
Sep. 30, 2022 | |
Cash and Cash Equivalents [Abstract] | |
CASH AND CASH EQUIVALENTS | 4. CASH AND CASH EQUIVALENTS As of September 30, 2022 and December 31, 2021 the Company has $ 1,584,869 2,597,848 517,730 554,864 $ 1,027,797 and $ 1,975,347 1.10 1.58 1.80 2.15 254,662 295,761 |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | 5. ACCOUNTS RECEIVABLE SCHEDULE OF ACCOUNTS RECEIVABLES - RELATED PARTY September 30, 2022 December 31, 2021 As of September 30, 2022 December 31, 2021 Accounts receivable $ 1,720 $ - Allowance for doubtful accounts - - Total accounts receivable $ 1,720 $ - |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 6. INVENTORIES Inventories consist of the following: SCHEDULE OF INVENTORIES September 30, 2022 December 31, 2021 As of September 30, 2022 December 31, 2021 Finished goods $ 275,410 $ 375,535 For the three months ended September 30, 2022, and 2021, the Company did not recognize any inventory write-downs. For the nine months ended September 30, 2022, and 2021, the Company recognized inventory write-downs of $ 0 36,636 |
PREPAYMENTS AND DEPOSITS
PREPAYMENTS AND DEPOSITS | 9 Months Ended |
Sep. 30, 2022 | |
Prepayments And Deposits | |
PREPAYMENTS AND DEPOSITS | 7. PREPAYMENTS AND DEPOSITS SCHEDULE OF PREPAID EXPENSES AND DEPOSITS September 30, 2022 December 31, 2021 As of September 30, 2022 December 31, 2021 Receivables from sales distributors $ 33,744 $ 115,379 Deposits to suppliers 136,988 301,233 Subtotal 170,732 416,612 Less: Provision for doubtful accounts - (121,095 ) Total $ 170,732 $ 295,517 AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 7. PREPAYMENTS AND DEPOSITS (Continued) Movements of allowance for doubtful accounts are as follows: SCHEDULE OF CHANGES IN ALLOWANCE FOR DOUBTFUL ACCOUNTS For the nine For the year Beginning balance $ 121,095 $ - Addition - 121,514 Write off (120,372 ) - Exchange rate effect (723 ) (419 ) Ending balance $ - $ 121,095 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | 8. PROPERTY AND EQUIPMENT, NET Property and equipment, net consist of the following: SCHEDULE OF PROPERTY AND EQUIPMENT, NET As of September 30, 2022 December 31, 2021 Computer and office equipment $ 79,535 $ 82,298 Furniture & fixtures 110,013 122,185 Leasehold improvements 182,389 202,570 Vehicle 88,869 98,702 Subtotal 460,806 505,755 Less: accumulated depreciation (312,008 ) (289,956 ) Total $ 148,798 $ 215,799 Depreciation expense for the three months ended September 30, 2022 and 2021 amounted to $ 17,477 18,740 54,138 56,919 |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | 9. INTANGIBLE ASSETS, NET Intangible assets, net, consist of the following: SCHEDULE OF INTANGIBLE ASSETS, NET As of September 30, 2022 December 31, 2021 Computer software $ 31,021 $ 34,453 Less: accumulated amortization (28,969 ) (30,793 ) Total $ 2,052 $ 3,660 Amortization expense for the three months ended September 30, 2022 and 2021 amounted to $ 425 476 1,322 1,482 AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) |
INVESTMENT IN MARKETABLE SECURI
INVESTMENT IN MARKETABLE SECURITIES | 9 Months Ended |
Sep. 30, 2022 | |
Investment In Marketable Securities | |
INVESTMENT IN MARKETABLE SECURITIES | 10. 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 July 19, 2022, Greenpro Capital Corp. filed a certificate of change with the Secretary of State of Nevada to effect a reverse split of the company’s common stock at the ratio of 10-for-1 effective July 28, 2022. Under the reverse stock split, each 10 pre-split share of common stock outstanding will automatically combine into 1 new share of common stock of the company 116,646 116,646 11,665 (v) On November 3, 2020, the Company received dividend of 6,667 76,671 11.50 (vi) On December 9, 2020, the Company received dividend of 16,663 83,315 5 (vii) On September 27, 2021, the Company received dividend of 11,665 18,874 1.62 SCHEDULE OF INVESTMENT IN MARKETABLE SECURITIES As of September 30, 2022 December 31, 2021 Cost of investment $ 89,001 $ 577,035 Dividend income from Greenpro Capital Corp. - 18,939 Unrealized holding loss (64,284 ) (505,231 ) Exchange rate effect (447 ) (1,742 ) Investment in marketable securities $ 24,270 $ 89,001 |
INVESTMENT IN NON-MARKETABLE SE
INVESTMENT IN NON-MARKETABLE SECURITIES | 9 Months Ended |
Sep. 30, 2022 | |
Investment In Non-marketable Securities | |
INVESTMENT IN NON-MARKETABLE SECURITIES | 11. INVESTMENT IN NON-MARKETABLE SECURITIES On April 3, 2019, the Company purchased a 5 15,000,000 1,500 0.0001 SCHEDULE OF INVESTMENT IN NON MARKETABLE SECURITIES As of Phoenix Plus Corporation September 30, 2022 December 31, 2021 Cost of investment $ 1,500 $ 1,500 Investment in non-marketable securities $ 1,500 $ 1,500 AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) |
OTHER PAYABLES AND ACCRUED LIAB
OTHER PAYABLES AND ACCRUED LIABILITIES | 9 Months Ended |
Sep. 30, 2022 | |
Other Liabilities Disclosure [Abstract] | |
OTHER PAYABLES AND ACCRUED LIABILITIES | 12. OTHER PAYABLES AND ACCRUED LIABILITIES SCHEDULE OF OTHER PAYABLES AND ACCRUED LIABILITIES As of September 30, 2022 December 31, 2021 Professional fees $ 118,938 $ 436,541 Promotion expenses 43,437 46,760 Payroll 23,641 22,669 Commissions 307,563 219,721 Tax penalty 75,000 75,000 Deferred Income 15,527 - Others 32,202 57,664 Total $ 616,308 $ 858,355 Certain amounts have been reclassified to conform to current period presentation. |
RELATED PARTY BALANCES AND TRAN
RELATED PARTY BALANCES AND TRANSACTIONS | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY BALANCES AND TRANSACTIONS | 13. RELATED PARTY BALANCES AND TRANSACTIONS Related party balances Accounts payable – related parties SCHEDULE OF RELATED PARTIES Name of Related Relationship Nature As of As of CTA Nutriceuticals (Asia) Sdn Bhd (“CTA”) The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd Purchases of products for the provision of complementary health therapies $ 18,611 $ - DSY Beauty Sdn Bhd (“DSY Beauty”) The directors and shareholders of DSY Beauty are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd Purchases of beauty products 544 - Total $ 19,155 $ - AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 13. RELATED PARTY BALANCES AND TRANSACTIONS (Continued) Related party balances Amount due from related parties Name of Related Relationship Nature As of 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 $ - $ 2,214 Hostastay Sdn. Bhd. (“Hostastay”) Mr. How Kok Choong, the CEO and director of the Company is also the director of Hostastay. Mr. How Kok Choong ceased to be the director of Hostastay as of April 21, 2021 Sublease rent due from Hostastay - 4,790 Total $ - $ 7,004 Other payable - related parties Name of Related Relationship Nature As of As of DSY Wellness and Longevity Center Sdn Bhd (“DSYWLC”) Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd is also a director of DSYWLC Rental due and expenses paid by DSYWLC $ 2,707 $ - CTA Nutriceuticals (Asia) Sdn Bhd (“CTA”) The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd Purchase of products for general use 941 - DSY Beauty Sdn Bhd (“DSY Beauty”) The directors and shareholders of DSY Beauty are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd Purchase of products for general use 168 - Total $ 3,816 $ - AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 13. RELATED PARTY BALANCES AND TRANSACTIONS (Continued) Related party transactions Purchases Name of Related For the three months ended Party Relationship Nature September 30, 2022 September 30, 2021 CTA Nutriceuticals (Asia) Sdn Bhd (“CTA”) The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd Purchases of products for the provision of complementary health therapies $ 56,606 $ - DSY Beauty Sdn Bhd (“DSY Beauty”) The directors and shareholders of DSY Beauty are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd Purchases of beauty products 2,270 - Total $ 58,876 $ - Name of Related For the nine months ended Party Relationship Nature September 30, 2022 September 30, 2021 CTA Nutriceuticals (Asia) Sdn Bhd (“CTA”) The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd Purchases of products for the provision of complementary health therapies $ 130,166 $ - DSY Beauty Sdn Bhd (“DSY Beauty”) The directors and shareholders of DSY Beauty are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd Purchases of beauty products 2,658 - DSY Wellness & Longevity Center Sdn Bhd (“DSYWLC”) Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC Purchases of products for the provision of complementary health therapies 125 - Total $ 132,949 $ - AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 13. RELATED PARTY BALANCES AND TRANSACTIONS (Continued) Related party transactions Other purchases Name of Related For the three months ended Party Relationship Nature September 30, 2022 September 30, 2021 CTA Nutriceuticals (Asia) Sdn Bhd (“CTA”) The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd Purchase of products for general use $ 2,295 $ - DSY Beauty Sdn Bhd (“DSY Beauty”) The directors and shareholders of DSY Beauty are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd Purchase of products for general use 1,145 - Total $ 3,440 $ - Name of Related For the nine months ended Party Relationship Nature September 30, 2022 September 30, 2021 CTA Nutriceuticals (Asia) Sdn Bhd (“CTA”) The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd Purchase of products for general use $ 2,295 $ - DSY Beauty Sdn Bhd (“DSY Beauty”) The directors and shareholders of DSY Beauty are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd Purchase of products for general use 1,213 - Total $ 3,508 $ - AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 13. RELATED PARTY BALANCES AND TRANSACTIONS (Continued) Related party transactions Commission Name of Related For the three months ended Party Relationship Nature September 30, 2022 September 30, 2021 Mr. How Kok Choong Mr. How Kok Choong, the CEO and director of the Company Commission expense $ 8,158 $ 2,919 Total $ 8,158 $ 2,919 Name of Related For the nine months ended Party Relationship Nature September 30, 2022 September 30, 2021 Mr. How Kok Choong Mr. How Kok Choong, the CEO and director of the Company Commission expense $ 13,213 $ 9,578 Total $ 13,213 $ 9,578 Office rental expense Name of Related For the three months ended Party Relationship Nature September 30, 2022 September 30, 2021 DSY Wellness and Longevity Center Sdn Bhd (“DSYWLC”) Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd is also a director of DSYWLC Office rental expense $ 5,501 $ - Total $ 5,501 $ - Name of Related For the nine months ended Party Relationship Nature September 30, 2022 September 30, 2021 DSY Wellness and Longevity Center Sdn Bhd (“DSYWLC”) Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd is also a director of DSYWLC Office rental expense $ 16,502 $ - Total $ 16,502 $ - AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 13. RELATED PARTY BALANCES AND TRANSACTIONS (Continued) Related party transactions Other income Name of Related For the three months ended Party Relationship Nature September 30, 2022 September 30, 2021 Hostastay Sdn. Bhd. (“Hostastay”) Mr. How Kok Choong, the CEO and director of the Company is also the director of Hostastay. Mr. How Kok Choong ceased to be the director of Hostastay as of April 21, 2021 Sublease rental income due from Hostastay $ - $ 1,428 Total $ - $ 1,428 Name of Related For the nine months ended Party Relationship Nature September 30, 2022 September 30, 2021 Hostastay Sdn. Bhd. (“Hostastay”) Mr. How Kok Choong, the CEO and director of the Company is also the director of Hostastay. Mr. How Kok Choong ceased to be the director of Hostastay as of April 21, 2021 Sublease rental income due from Hostastay $ - $ 4,357 Total $ - $ 4,357 |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | 14. STOCKHOLDERS’ EQUITY Preferred stock As of September 30, 2022, and December 31, 2021, there were 200,000,000 none Common stock As of September 30, 2022, and December 31, 2021, there were 1,000,000,000 75,452,012 290,460,047 A share forfeiture agreement (the “Share Forfeiture Agreement”) dated January 20, 2022, between the Company and Mr. How Kok Choong, the CEO and director of the Company, pursuant to which Mr. How Kok Choong agreed to forfeit 215,008,035 215,008,035 There were no AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) |
NON-CONTROLLING INTEREST
NON-CONTROLLING INTEREST | 9 Months Ended |
Sep. 30, 2022 | |
Noncontrolling Interest [Abstract] | |
NON-CONTROLLING INTEREST | 15. NON-CONTROLLING INTEREST The Company’s non-controlling interest consists of the following: SCHEDULE OF NON CONTROLLING INTEREST As of September 30, 2022 December 31, 2021 DSY Wellness: Paid-in capital $ 97 $ 97 Retained earnings (Accumulated deficit) 11,267 (436 ) Accumulated other comprehensive income (expense) (655 ) 3 Non Controlling interest Gross 10,709 (336 ) ASL - - Total $ 10,709 $ (336 ) |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2022 | |
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 2022 2021 2022 2021 For the three months ended For the nine months ended 2022 2021 2022 2021 Tax jurisdictions from: Local – United States $ (165,864 ) $ (117,272 ) $ (459,668 ) $ (321,567 ) Foreign – Malaysia (81,151 ) (257,590 ) (435,610 ) (727,265 ) Foreign – Hong Kong (12,199 ) (210,946 ) (58,046 ) (502,760 ) Foreign, Tax jurisdictions (12,199 ) (210,946 ) (58,046 ) (502,760 ) Loss before income tax $ (259,214 ) $ (585,808 ) $ (953,324 ) $ (1,551,592 ) The benefit of income taxes consisted of the following: SCHEDULE OF PROVISION FOR INCOME TAX 2022 2021 2022 2021 For the three months ended For the nine months ended 2022 2021 2022 2021 Current: - Local $ - $ - $ - $ (22,205 ) - Foreign 18,997 (63,792 ) 10,317 (104,977 ) Deferred: - Local - - - - - Foreign - 78,335 - 131,634 Benefit of income tax $ 18,997 $ 14,543 $ 10,317 $ 4,452 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: 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) 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, 2022 and 2021, the Company’s foreign subsidiaries did not generate any income that are subject to Subpart F tax and GILTI tax. As of September 30, 2022 and December 31, 2021, the operations in the United States of America incurred approximately $ 1,080,000 620,000 227,000 130,000 Malaysia Changes to the Labuan Business Activity Tax Act (LBATA) 1990 which was gazetted and came into operation on January 1, 2019 mandates companies incorporated in Labuan to satisfy the “substantial activity requirements” to qualify for the preferential tax rate of 3 24 Agape Superior Living Sdn Bhd, Agape S.E.A Sdn Bhd., Wellness ATP International Holdings Sdn Bhd. and DSY Wellness International Sdn. Bhd. are governed by the income taxes laws of Malaysia and the income taxes provision in respect of operations in Malaysia is calculated at the applicable tax rates on the taxable income for the periods based on existing legislation, interpretations and practices in respect thereof. Under the Income Tax Act of Malaysia, enterprises that incorporated in Malaysia are usually subject to a unified 24% enterprise income taxes rate while preferential tax rates, tax holidays and even tax exemption may be granted on case-by-case basis. The tax rate for small and medium sized companies (generally companies incorporated in Malaysia with paid-in capital of RM 2,500,000 17 600,000 150,000 As of September 30, 2022 and December 31, 2021, the operations in Malaysia incurred approximately $ 1,223,000 837,000 801,000 386,000 36,000 288,000 196,000 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 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 following table sets forth the significant components of the aggregate deferred tax assets of the Company: SCHEDULE OF DEFERRED TAX ASSETS As of September 30, 2022 December 31, 2021 Deferred tax assets: Net operating loss carry forwards in U.S. $ 226,730 $ 130,277 Net operating loss carry forwards in Malaysia 288,087 196,000 Less: valuation allowance (514,817 ) (326,277 ) Deferred tax liabilities: Depreciation - (15,574 ) Deferred tax liabilities, net $ - $ (15,574 ) 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, 2022 and December 31, 2021, the Company did not have any significant unrecognized uncertain tax positions. The Company did not incur any interest and penalties tax for the three months ended September 30, 2022 and 2021.The Company incurred interest and penalties tax of $ 0 395 |
CONCENTRATIONS OF RISKS
CONCENTRATIONS OF RISKS | 9 Months Ended |
Sep. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS OF RISKS | 17. CONCENTRATIONS OF RISKS (a) Major customers For the three months ended September 30, 2022, and 2021, no customer accounted for 10 10 As of September 30, 2022, four individual customers accounted for approximately 81.0 (b) Major vendors For the three months ended September 30, 2022, three vendors accounted for approximately 56 22 13 50 15 32 For the three months ended September 30, 2021, two vendors accounted for approximately 69.3 26.5 74.3 14.1 10.0 As of September 30, 2022, three vendors accounted for approximately 46 %, 30 % and 20 % of the Company’s total balance of accounts payable, respectively. CTA Nutriceuticals (Asia) Sdn Bhd, a related company, accounted for approximately 46 100 % of the total balance of accounts payable. AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 17. CONCENTRATIONS OF RISKS (Continued) (c) Commission Expenses to Sales Distributors and Stockists For the three months ended September 30, 2022, no sales distributor accounted for 10 17.8 For the nine months ended September 30, 2022, no sales distributor accounted for 10 19.4 (d) Credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash. As of September 30, 2022, and December 31, 2021, $ 517,730 554,864 254,662 295,761 Financial instruments that are potentially subject to credit risk consist principally of accounts receivable. The Company believes the concentration of credit risk in its account receivable is substantially mitigated by its ongoing credit evaluation process and relatively short collection terms. The Company does not generally require collateral from customers. The Company evaluates the need for an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. Historically, the Company did not have any bad debt on its account receivable. (e) Exchange rate risk The Company cannot guarantee that the current exchange rate will remain steady; therefore, there is a possibility that the Company could post the same amount of profit for two comparable periods and because of the fluctuating exchange rate actually post higher or lower profit depending on exchange rate of RM and HK$ converted to US$ on that date. The exchange rate could fluctuate depending on changes in political and economic environments without notice. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2022 | |
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 3,250 5.5 The weighted remaining term of the lease is approximately 0.92 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) 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 2023 $ 118,561 2024 431 Thereafter - Total lease payments 118,992 Less: interest (2,793 ) Present value of lease liabilities $ 116,199 The Company also leases one office and operation center, and one shophouse with an expiring term of twelve months or less, which were classified as operation leases. Since the lease terms for these leases were twelve months or less, a lessee is permitted to elect not to recognize lease assets and liabilities. The Company has elected not to recognize lease assets and liabilities on these leases. As of September 30, 2022, the Company’s commitment for minimum lease payment under these operating leases within the next twelve months were $ 7,332 Rent expense for the three months ended September 30, 2022 and 2021 was $ 46,216 44,344 144,528 135,865 Contingencies Legal From time to time, the Company is party to certain legal proceedings, as well as certain asserted and un-asserted claims. Amounts accrued, as well as the total amount of reasonably possible losses with respect to such matters, individually and in the aggregate, are not deemed to be material to the consolidated financial statements. 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) COVID-19 Malaysia, where the operations of the Company predominantly reside, officially transitioned to the endemic phase of COVID-19 effective April 1, 2022. Restrictions on businesses and people are minimal. Meanwhile, the government continues to encourage inoculation for those between the ages of 5 to 11 years and its adolescent group which comprised those between the ages 12 to 17. Adults who have been fully vaccinated, i.e. received two doses of the COVID-19 vaccine are encouraged to take booster shots. 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 similar levels year over year in 2022 and beyond. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 19. SUBSEQUENT EVENTS The Company evaluated the effect of events and transactions subsequent to the unaudited condensed consolidated balance sheet date of September 30, 2022 through the date of issuance of the unaudited condensed consolidated financial statements and determined that no subsequent events have occurred that require recognition in the unaudited condensed consolidated financial statements or disclosure in the notes to the unaudited condensed consolidated financial Statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying interim unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The interim unaudited financial information as of September 30, 2022 and for the three and nine months ended September 30, 2022 and 2021 have been prepared without audit, pursuant to the rules and regulations of the SEC and pursuant to Regulation S-X. Certain information and footnote disclosures, which are normally included in annual financial statements prepared in accordance with U. S. GAAP, have been omitted pursuant to those rules and regulations. The interim unaudited financial information should be read in conjunction with the audited financial statements and the notes thereto, included in the Form 10-K for the fiscal year ended December 31, 2021, which was filed with the SEC on March 28, 2022. In the opinion of management, all adjustments (including normal recurring adjustments) necessary to present a fair statement of the Company’s unaudited financial position as of September 30, 2022, its unaudited results of operations for the three and nine months ended September 30, 2022 and 2021, and its unaudited cash flows for the nine months ended September 30, 2022 and 2021, as applicable, have been made. The unaudited interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods. The unaudited condensed consolidated financial statements include the financial statements of the Company, its subsidiaries and its variable interest entity (“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. |
Principles of consolidation | Principles of 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. As of and for the three and nine months ended September 30, 2022, SEA, the only VIE of the Company has no significant operations. |
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 consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s consolidated financial statements include allowance for doubtful accounts, allowance for inventories obsolescence, useful lives of property and equipment, useful lives of intangible assets, impairment of long-lived assets, allowance for deferred tax assets, operating right-of-use assets, operating lease liabilities and uncertain tax position and impairment of investment in non-marketable securities. Actual results could differ from these estimates. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents 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. 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) |
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, 2022 and December 31, 2021, no |
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, 2022 and 2021, the Company did not recognize any inventory write-downs. For the nine months ended September 30, 2022 and 2021, the Company recognized inventory write-downs of $ 0 36,636 |
Prepaid taxes | Prepaid taxes Prepaid taxes include prepaid income taxes that will either be refunded or utilized to offset future income tax . |
Prepayments and deposits | Prepayments and deposits Prepayments and deposits are mainly cash deposited or advanced to suppliers for future inventory purchases or service providers for future services. This amount is refundable and bears no interest. For any prepayments and deposits determined by management that such advances will not be in receipts of inventories, services, or refundable, the Company will recognize an allowance account to reserve such balances. Management reviews its prepayments and deposits on a regular basis to determine if the allowance is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. The Company’s management continues to evaluate the reasonableness of the allowance policy and update it if necessary. For the three and nine months ended September 30, 2022, the Company wrote-off doubtful debts of $120,372. There were no doubtful debts written-off during the three and nine months ended September 30, 2021. As of September 30, 2022 and December 31, 2021, there was $ 0 121,095 |
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: 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) SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT Useful Life Computer and office equipment 5 7 Furniture & fixtures 6 7 Leasehold improvements Lease Term Vehicle 5 The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the consolidated statements of income and comprehensive income. Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives. |
Intangible assets, net | Intangible assets, net Intangible assets, net, are stated at cost, less accumulated amortization. Amortization expense is recognized on the straight-line basis over the estimated useful lives of the assets as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF INTANGIBLE ASSETS, NET Classification Useful Life Computer software 5 |
Impairment for long-lived assets | Impairment for long-lived assets Long-lived assets, including property and equipment, and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. As of September 30, 2022 and December 31, 2021, 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 proposed offering for uplisting. |
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). 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. 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 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, 2022 and 2021, the Company recognized $ 5,923 1,361 6,876 12,587 The Company had contracts for the sales of health and wellness products amounting to $ 0 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 session 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, 2022 and 2021, revenues from health and wellness services were $ 40,930 1,308 72,069 7,054 AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Disaggregated information of revenues by products are as follows: SCHEDULE OF DIS-AGGREGATED INFORMATION OF REVENUES 2022 2021 2022 2021 For the three months ended For the nine months ended September 30, September 30, 2022 2021 2022 2021 Survivor Select $ 78,243 $ 14,252 $ 100,996 $ 51,893 Energized Mineral Concentrate - 49 - 52,232 Ionized Cal-Mag 57,653 15,506 120,021 55,804 Omega Blend 66,890 48,582 246,067 233,943 Beta Maxx 71,559 32,605 119,196 122,405 Vege-Fruit Fiber - 186 - 186 Iron 2,514 4,619 9,700 21,334 Young Formula - 8,606 34,269 34,507 Organic Youth Care Cleansing Bar - - - 2,990 ATPR Mito+ 90,152 68,443 278,078 175,286 Lipomask - 1,797 - 10,198 Hyaluronic Acid Serum 10,934 836 13,940 4,162 Mousse Facial Cleanser 6,176 3,565 13,570 11,252 Trim+ 76,118 930 82,354 23,604 Others – Products for the provision of complementary health therapies 159,934 - 376,122 - Others 2,786 - 3,174 - Total revenues - products 622,959 199,976 1,397,487 799,796 Health and Wellness services 40,930 1,308 72,069 7,054 Total revenues - products and services $ 663,889 $ 201,284 $ 1,469,556 $ 806,850 |
Cost of revenue | Cost of revenue Cost of revenue for the three and nine months ended September 30, 2022 were $ 157,745 340,559 36,663 149,877 36,636 |
Shipping and handling | Shipping and handling Shipping and handling charges amounted to $ 7,364 2,139 14,543 7,411 |
Advertising costs | Advertising costs Advertising costs amounted to $ 0 2,473 4,737 19,131 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) |
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 $ 167,395 76,817 344,061 258,030 |
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 $ 34,966 21,674 98,373 74,708 The related contribution plans include: - Social Security Organization (“SOSCO”) – 1.75 - Employees Provident Fund (“EPF”) – 12 - Employment Insurance System (“EIS”) – 0.2 - 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. 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) 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 The Company conducts much of its business activities in Hong Kong and Malaysia and is subject to tax in each of these 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. |
Non-controlling interest | Non-controlling interest Non-controlling interest consists of 40% of the equity interests of DSY Wellness held by an individual and approximately 0.01% (2 ordinary shares out of 9,590,598 shares) of the equity interests of ASL held by two individuals |
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 (loss) 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 common stocks (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common stocks 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, 2022 and 2021, there were 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) |
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 consolidated statements of operations and comprehensive loss. The reporting currency of the Company is United States Dollars (“US$”) and the accompanying financial statements have been expressed in US$. The Company’s subsidiary in Labuan maintains its books and record in United States Dollars (“US$”) albeit its functional currency being the primary currency of the economic environment in which the entity operates, which is the Malaysian Ringgit (“MYR” or “RM”). The Company’s subsidiary in Hong Kong maintains its books and record in Hong Kong Dollars (“HK$”), similar to its functional currency. The Company’s subsidiary and VIE in Malaysia conducts its businesses and maintains its books and record in the local currency, Malaysian Ringgit (“MYR” or “RM”), as its functional currency. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “ Translation of Financial Statement” Translation of foreign currencies into US$1 have been made at the following exchange rates for the respective periods: SCHEDULE OF FOREIGN CURRENCIES TRANSLATION EXCHANGE RATES September 30, 2022 December 31, 2021 As of September 30, 2022 December 31, 2021 Period-end MYR : US$1 exchange rate 4.64 4.18 Period-end HKD : US$1 exchange rate 7.85 7.80 Foreign currency exchange rate, translation 7.85 7.80 2022 2021 2022 2021 For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Period-average MYR : US$1 exchange rate 4.52 4.20 4.36 4.13 Period-average HKD : US$1 exchange rate 7.85 7.78 7.84 7.77 Foreign currency exchange rate period average 7.85 7.78 7.84 7.77 AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
Related parties | Related parties Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence. |
Fair value of financial instruments | Fair value of financial instruments The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company. The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. Financial instruments included in current assets and current liabilities are reported in the consolidated balance sheets at face value or cost, which approximate fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest. |
Leases | Leases The Company adopted ASU 2016-02, “Leases” (Topic 842), and elected the practical expedients that does not require the Company to reassess: (1) whether any expired or existing contracts are, or contain, leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. For lease terms of twelve months or fewer, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. The Company also adopts the practical expedient that allows lessees to treat the lease and non-lease components of a lease as a single lease component. 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. 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) 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, considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. 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 ASUs 2016-13 and 2019-05 may have on its consolidated financial statements. Except for the above-mentioned pronouncements, there are no new recent issued accounting standards that will have a material impact on the consolidated financial position, statements of operations and cash flows. |
Reclassifications | Reclassifications Interest income and Exchange loss for the three and nine months ended September 30, 2021, which were previously included in Other Income (Expense) in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss have been reclassified to conform to current period presentation. |
ORGANIZATION AND BUSINESS BAC_2
ORGANIZATION AND BUSINESS BACKGROUND (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
SCHEDULE OF SUBSIDIARIES AND ASSOCIATES | Details of the Company’s subsidiaries: SCHEDULE OF SUBSIDIARIES AND ASSOCIATES Subsidiary company name Place and date of incorporation Particulars of 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 % 6. DSY Wellness International Sdn Bhd. Malaysia, 1,000 shares of ordinary share of RM1 each Provision of complementary health therapies 60 % |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT | SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT Useful Life Computer and office equipment 5 7 Furniture & fixtures 6 7 Leasehold improvements Lease Term Vehicle 5 |
SCHEDULE OF ESTIMATED USEFUL LIVES OF INTANGIBLE ASSETS, 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 |
SCHEDULE OF DIS-AGGREGATED INFORMATION OF REVENUES | Disaggregated information of revenues by products are as follows: SCHEDULE OF DIS-AGGREGATED INFORMATION OF REVENUES 2022 2021 2022 2021 For the three months ended For the nine months ended September 30, September 30, 2022 2021 2022 2021 Survivor Select $ 78,243 $ 14,252 $ 100,996 $ 51,893 Energized Mineral Concentrate - 49 - 52,232 Ionized Cal-Mag 57,653 15,506 120,021 55,804 Omega Blend 66,890 48,582 246,067 233,943 Beta Maxx 71,559 32,605 119,196 122,405 Vege-Fruit Fiber - 186 - 186 Iron 2,514 4,619 9,700 21,334 Young Formula - 8,606 34,269 34,507 Organic Youth Care Cleansing Bar - - - 2,990 ATPR Mito+ 90,152 68,443 278,078 175,286 Lipomask - 1,797 - 10,198 Hyaluronic Acid Serum 10,934 836 13,940 4,162 Mousse Facial Cleanser 6,176 3,565 13,570 11,252 Trim+ 76,118 930 82,354 23,604 Others – Products for the provision of complementary health therapies 159,934 - 376,122 - Others 2,786 - 3,174 - Total revenues - products 622,959 199,976 1,397,487 799,796 Health and Wellness services 40,930 1,308 72,069 7,054 Total revenues - products and services $ 663,889 $ 201,284 $ 1,469,556 $ 806,850 |
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 September 30, 2022 December 31, 2021 As of September 30, 2022 December 31, 2021 Period-end MYR : US$1 exchange rate 4.64 4.18 Period-end HKD : US$1 exchange rate 7.85 7.80 Foreign currency exchange rate, translation 7.85 7.80 2022 2021 2022 2021 For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Period-average MYR : US$1 exchange rate 4.52 4.20 4.36 4.13 Period-average HKD : US$1 exchange rate 7.85 7.78 7.84 7.77 Foreign currency exchange rate period average 7.85 7.78 7.84 7.77 |
VARIABLE INTEREST ENTITY (_VI_2
VARIABLE INTEREST ENTITY (“VIE”) (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SCHEDULE OF VARIABLE INTEREST ENTITY | The carrying amount of the VIE’s assets and liabilities were as follows: SCHEDULE OF VARIABLE INTEREST ENTITY September 30, 2022 December 31, 2021 As of September 30, 2022 December 31, 2021 Current assets $ 5,651 $ 18,850 Current liabilities (41,393 ) (51,272 ) Net deficit $ (35,742 ) $ (32,422 ) As of September 30, 2022 December 31, 2021 Current assets: Cash $ 3,997 $ 17,493 Prepaid taxes 1,654 1,357 Total current assets $ 5,651 $ 18,850 Current liabilities: Accounts payable – intercompany $ 40,306 $ 49,724 Other payables and accrued liabilities 1,087 1,548 Total current liabilities $ 41,393 $ 51,272 Net deficit $ (35,742 ) $ (32,422 ) The summarized operating results of the VIE’s are as follows: 2022 2021 2022 2021 For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Operating revenues $ - $ - $ - $ - Gross profit $ - $ - $ - $ - Loss from operations $ (3,743 ) $ (4,914 ) $ (6,962 ) $ (16,881 ) Net loss $ (3,743 ) $ (4,079 ) $ (6,962 ) $ (14,028 ) |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
SCHEDULE OF ACCOUNTS RECEIVABLES - RELATED PARTY | SCHEDULE OF ACCOUNTS RECEIVABLES - RELATED PARTY September 30, 2022 December 31, 2021 As of September 30, 2022 December 31, 2021 Accounts receivable $ 1,720 $ - Allowance for doubtful accounts - - Total accounts receivable $ 1,720 $ - |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORIES | Inventories consist of the following: SCHEDULE OF INVENTORIES September 30, 2022 December 31, 2021 As of September 30, 2022 December 31, 2021 Finished goods $ 275,410 $ 375,535 |
PREPAYMENTS AND DEPOSITS (Table
PREPAYMENTS AND DEPOSITS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Prepayments And Deposits | |
SCHEDULE OF PREPAID EXPENSES AND DEPOSITS | SCHEDULE OF PREPAID EXPENSES AND DEPOSITS September 30, 2022 December 31, 2021 As of September 30, 2022 December 31, 2021 Receivables from sales distributors $ 33,744 $ 115,379 Deposits to suppliers 136,988 301,233 Subtotal 170,732 416,612 Less: Provision for doubtful accounts - (121,095 ) Total $ 170,732 $ 295,517 |
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 nine For the year Beginning balance $ 121,095 $ - Addition - 121,514 Write off (120,372 ) - Exchange rate effect (723 ) (419 ) Ending balance $ - $ 121,095 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 December 31, 2021 Computer and office equipment $ 79,535 $ 82,298 Furniture & fixtures 110,013 122,185 Leasehold improvements 182,389 202,570 Vehicle 88,869 98,702 Subtotal 460,806 505,755 Less: accumulated depreciation (312,008 ) (289,956 ) Total $ 148,798 $ 215,799 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 December 31, 2021 Computer software $ 31,021 $ 34,453 Less: accumulated amortization (28,969 ) (30,793 ) Total $ 2,052 $ 3,660 |
INVESTMENT IN MARKETABLE SECU_2
INVESTMENT IN MARKETABLE SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investment In Marketable Securities | |
SCHEDULE OF INVESTMENT IN MARKETABLE SECURITIES | SCHEDULE OF INVESTMENT IN MARKETABLE SECURITIES As of September 30, 2022 December 31, 2021 Cost of investment $ 89,001 $ 577,035 Dividend income from Greenpro Capital Corp. - 18,939 Unrealized holding loss (64,284 ) (505,231 ) Exchange rate effect (447 ) (1,742 ) Investment in marketable securities $ 24,270 $ 89,001 |
INVESTMENT IN NON-MARKETABLE _2
INVESTMENT IN NON-MARKETABLE SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investment In Non-marketable Securities | |
SCHEDULE OF INVESTMENT IN NON MARKETABLE SECURITIES | SCHEDULE OF INVESTMENT IN NON MARKETABLE SECURITIES As of Phoenix Plus Corporation September 30, 2022 December 31, 2021 Cost of investment $ 1,500 $ 1,500 Investment in non-marketable securities $ 1,500 $ 1,500 |
OTHER PAYABLES AND ACCRUED LI_2
OTHER PAYABLES AND ACCRUED LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Other Liabilities Disclosure [Abstract] | |
SCHEDULE OF OTHER PAYABLES AND ACCRUED LIABILITIES | SCHEDULE OF OTHER PAYABLES AND ACCRUED LIABILITIES As of September 30, 2022 December 31, 2021 Professional fees $ 118,938 $ 436,541 Promotion expenses 43,437 46,760 Payroll 23,641 22,669 Commissions 307,563 219,721 Tax penalty 75,000 75,000 Deferred Income 15,527 - Others 32,202 57,664 Total $ 616,308 $ 858,355 |
RELATED PARTY BALANCES AND TR_2
RELATED PARTY BALANCES AND TRANSACTIONS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
SCHEDULE OF RELATED PARTIES | SCHEDULE OF RELATED PARTIES Name of Related Relationship Nature As of As of CTA Nutriceuticals (Asia) Sdn Bhd (“CTA”) The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd Purchases of products for the provision of complementary health therapies $ 18,611 $ - DSY Beauty Sdn Bhd (“DSY Beauty”) The directors and shareholders of DSY Beauty are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd Purchases of beauty products 544 - Total $ 19,155 $ - AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 13. RELATED PARTY BALANCES AND TRANSACTIONS (Continued) Related party balances Amount due from related parties Name of Related Relationship Nature As of 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 $ - $ 2,214 Hostastay Sdn. Bhd. (“Hostastay”) Mr. How Kok Choong, the CEO and director of the Company is also the director of Hostastay. Mr. How Kok Choong ceased to be the director of Hostastay as of April 21, 2021 Sublease rent due from Hostastay - 4,790 Total $ - $ 7,004 Other payable - related parties Name of Related Relationship Nature As of As of DSY Wellness and Longevity Center Sdn Bhd (“DSYWLC”) Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd is also a director of DSYWLC Rental due and expenses paid by DSYWLC $ 2,707 $ - CTA Nutriceuticals (Asia) Sdn Bhd (“CTA”) The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd Purchase of products for general use 941 - DSY Beauty Sdn Bhd (“DSY Beauty”) The directors and shareholders of DSY Beauty are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd Purchase of products for general use 168 - Total $ 3,816 $ - AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 13. RELATED PARTY BALANCES AND TRANSACTIONS (Continued) Related party transactions Purchases Name of Related For the three months ended Party Relationship Nature September 30, 2022 September 30, 2021 CTA Nutriceuticals (Asia) Sdn Bhd (“CTA”) The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd Purchases of products for the provision of complementary health therapies $ 56,606 $ - DSY Beauty Sdn Bhd (“DSY Beauty”) The directors and shareholders of DSY Beauty are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd Purchases of beauty products 2,270 - Total $ 58,876 $ - Name of Related For the nine months ended Party Relationship Nature September 30, 2022 September 30, 2021 CTA Nutriceuticals (Asia) Sdn Bhd (“CTA”) The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd Purchases of products for the provision of complementary health therapies $ 130,166 $ - DSY Beauty Sdn Bhd (“DSY Beauty”) The directors and shareholders of DSY Beauty are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd Purchases of beauty products 2,658 - DSY Wellness & Longevity Center Sdn Bhd (“DSYWLC”) Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC Purchases of products for the provision of complementary health therapies 125 - Total $ 132,949 $ - AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 13. RELATED PARTY BALANCES AND TRANSACTIONS (Continued) Related party transactions Other purchases Name of Related For the three months ended Party Relationship Nature September 30, 2022 September 30, 2021 CTA Nutriceuticals (Asia) Sdn Bhd (“CTA”) The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd Purchase of products for general use $ 2,295 $ - DSY Beauty Sdn Bhd (“DSY Beauty”) The directors and shareholders of DSY Beauty are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd Purchase of products for general use 1,145 - Total $ 3,440 $ - Name of Related For the nine months ended Party Relationship Nature September 30, 2022 September 30, 2021 CTA Nutriceuticals (Asia) Sdn Bhd (“CTA”) The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd Purchase of products for general use $ 2,295 $ - DSY Beauty Sdn Bhd (“DSY Beauty”) The directors and shareholders of DSY Beauty are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd Purchase of products for general use 1,213 - Total $ 3,508 $ - AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 13. RELATED PARTY BALANCES AND TRANSACTIONS (Continued) Related party transactions Commission Name of Related For the three months ended Party Relationship Nature September 30, 2022 September 30, 2021 Mr. How Kok Choong Mr. How Kok Choong, the CEO and director of the Company Commission expense $ 8,158 $ 2,919 Total $ 8,158 $ 2,919 Name of Related For the nine months ended Party Relationship Nature September 30, 2022 September 30, 2021 Mr. How Kok Choong Mr. How Kok Choong, the CEO and director of the Company Commission expense $ 13,213 $ 9,578 Total $ 13,213 $ 9,578 Office rental expense Name of Related For the three months ended Party Relationship Nature September 30, 2022 September 30, 2021 DSY Wellness and Longevity Center Sdn Bhd (“DSYWLC”) Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd is also a director of DSYWLC Office rental expense $ 5,501 $ - Total $ 5,501 $ - Name of Related For the nine months ended Party Relationship Nature September 30, 2022 September 30, 2021 DSY Wellness and Longevity Center Sdn Bhd (“DSYWLC”) Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd is also a director of DSYWLC Office rental expense $ 16,502 $ - Total $ 16,502 $ - AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares) 13. RELATED PARTY BALANCES AND TRANSACTIONS (Continued) Related party transactions Other income Name of Related For the three months ended Party Relationship Nature September 30, 2022 September 30, 2021 Hostastay Sdn. Bhd. (“Hostastay”) Mr. How Kok Choong, the CEO and director of the Company is also the director of Hostastay. Mr. How Kok Choong ceased to be the director of Hostastay as of April 21, 2021 Sublease rental income due from Hostastay $ - $ 1,428 Total $ - $ 1,428 Name of Related For the nine months ended Party Relationship Nature September 30, 2022 September 30, 2021 Hostastay Sdn. Bhd. (“Hostastay”) Mr. How Kok Choong, the CEO and director of the Company is also the director of Hostastay. Mr. How Kok Choong ceased to be the director of Hostastay as of April 21, 2021 Sublease rental income due from Hostastay $ - $ 4,357 Total $ - $ 4,357 |
NON-CONTROLLING INTEREST (Table
NON-CONTROLLING INTEREST (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Noncontrolling Interest [Abstract] | |
SCHEDULE OF NON CONTROLLING INTEREST | The Company’s non-controlling interest consists of the following: SCHEDULE OF NON CONTROLLING INTEREST As of September 30, 2022 December 31, 2021 DSY Wellness: Paid-in capital $ 97 $ 97 Retained earnings (Accumulated deficit) 11,267 (436 ) Accumulated other comprehensive income (expense) (655 ) 3 Non Controlling interest Gross 10,709 (336 ) ASL - - Total $ 10,709 $ (336 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 2022 2021 2022 2021 For the three months ended For the nine months ended 2022 2021 2022 2021 Tax jurisdictions from: Local – United States $ (165,864 ) $ (117,272 ) $ (459,668 ) $ (321,567 ) Foreign – Malaysia (81,151 ) (257,590 ) (435,610 ) (727,265 ) Foreign – Hong Kong (12,199 ) (210,946 ) (58,046 ) (502,760 ) Foreign, Tax jurisdictions (12,199 ) (210,946 ) (58,046 ) (502,760 ) Loss before income tax $ (259,214 ) $ (585,808 ) $ (953,324 ) $ (1,551,592 ) |
SCHEDULE OF PROVISION FOR INCOME TAX | The benefit of income taxes consisted of the following: SCHEDULE OF PROVISION FOR INCOME TAX 2022 2021 2022 2021 For the three months ended For the nine months ended 2022 2021 2022 2021 Current: - Local $ - $ - $ - $ (22,205 ) - Foreign 18,997 (63,792 ) 10,317 (104,977 ) Deferred: - Local - - - - - Foreign - 78,335 - 131,634 Benefit of income tax $ 18,997 $ 14,543 $ 10,317 $ 4,452 |
SCHEDULE OF DEFERRED TAX ASSETS | The following table sets forth the significant components of the aggregate deferred tax assets of the Company: SCHEDULE OF DEFERRED TAX ASSETS As of September 30, 2022 December 31, 2021 Deferred tax assets: Net operating loss carry forwards in U.S. $ 226,730 $ 130,277 Net operating loss carry forwards in Malaysia 288,087 196,000 Less: valuation allowance (514,817 ) (326,277 ) Deferred tax liabilities: Depreciation - (15,574 ) Deferred tax liabilities, net $ - $ (15,574 ) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 2023 $ 118,561 2024 431 Thereafter - Total lease payments 118,992 Less: interest (2,793 ) Present value of lease liabilities $ 116,199 |
SCHEDULE OF SUBSIDIARIES AND AS
SCHEDULE OF SUBSIDIARIES AND ASSOCIATES (Details) | 9 Months Ended | ||
Sep. 30, 2022 | Nov. 11, 2021 | May 08, 2020 | |
Subsidiary Company [Member] | |||
Subsidiary company name | Agape ATP Corporation | ||
Place and date of incorporation | Labuan, March 6, 2017 | ||
Particulars of issued capital | 100 shares of ordinary share of US$1 each | ||
Principal activities | Investment holding | ||
Proportional of ownership interest and voting power held | 100% | ||
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 | ||
Proportional of ownership interest and voting power held | 100% | ||
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 | ||
Proportional of ownership interest and voting power held | 99.99% | 99.99% | |
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. | ||
Proportional of ownership interest and voting power held | 100% | ||
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 | ||
Proportional of ownership interest and voting power held | 100% | ||
Subsidiary Company Five [Member] | |||
Subsidiary company name | DSY Wellness International Sdn Bhd. | ||
Place and date of incorporation | Malaysia, November 11, 2021 | ||
Particulars of issued capital | 1,000 shares of ordinary share of RM1 each | ||
Principal activities | Provision of complementary health therapies | ||
Proportional of ownership interest and voting power held | 60% | 60% |
ORGANIZATION AND BUSINESS BAC_3
ORGANIZATION AND BUSINESS BACKGROUND (Details Narrative) - shares | May 08, 2020 | Sep. 30, 2022 | Nov. 11, 2021 |
Share Exchange Agreement [Member] | Mr.How Kok Choong [Member] | |||
Stock issued during period acquisitions, shares | 9,590,596 | ||
Agape ATP International Holding Limited [Member] | |||
Ownership interest percentage | 100% | ||
Subsidiary Company Two [Member] | |||
Ownership interest percentage | 99.99% | 99.99% | |
Subsidiary Company Five [Member] | |||
Ownership interest percentage | 60% | 60% | |
DSY Wellness International Sdn. Bhd [Member] | |||
Ownership interest percentage | 60% |
SCHEDULE OF ESTIMATED USEFUL LI
SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT (Details) | 9 Months Ended |
Sep. 30, 2022 | |
Computer Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 5 years |
Computer Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 7 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 6 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 7 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful lives | Lease Term |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 5 years |
SCHEDULE OF ESTIMATED USEFUL _2
SCHEDULE OF ESTIMATED USEFUL LIVES OF INTANGIBLE ASSETS, NET (Details) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Product Information [Line Items] | ||||
Total revenues - products and services | $ 663,889 | $ 201,284 | $ 1,469,556 | $ 806,850 |
Survivor Select [Member] | ||||
Product Information [Line Items] | ||||
Total revenues - products and services | 78,243 | 14,252 | 100,996 | 51,893 |
Energized Mineral Concentrate [Member] | ||||
Product Information [Line Items] | ||||
Total revenues - products and services | 49 | 52,232 | ||
Ionized Cal-Mag [Member] | ||||
Product Information [Line Items] | ||||
Total revenues - products and services | 57,653 | 15,506 | 120,021 | 55,804 |
Omega Blend [Member] | ||||
Product Information [Line Items] | ||||
Total revenues - products and services | 66,890 | 48,582 | 246,067 | 233,943 |
Beta Maxx [Member] | ||||
Product Information [Line Items] | ||||
Total revenues - products and services | 71,559 | 32,605 | 119,196 | 122,405 |
Vege-Fruit Fiber [Member] | ||||
Product Information [Line Items] | ||||
Total revenues - products and services | 186 | 186 | ||
Iron [Member] | ||||
Product Information [Line Items] | ||||
Total revenues - products and services | 2,514 | 4,619 | 9,700 | 21,334 |
Young Formula [Member] | ||||
Product Information [Line Items] | ||||
Total revenues - products and services | 8,606 | 34,269 | 34,507 | |
Organic Youth Car Cleansing Bar [Member] | ||||
Product Information [Line Items] | ||||
Total revenues - products and services | 2,990 | |||
ATPR Mito+ [Member] | ||||
Product Information [Line Items] | ||||
Total revenues - products and services | 90,152 | 68,443 | 278,078 | 175,286 |
Lipomask [Member] | ||||
Product Information [Line Items] | ||||
Total revenues - products and services | 1,797 | 10,198 | ||
Hyaluronic Acid Serum [Member] | ||||
Product Information [Line Items] | ||||
Total revenues - products and services | 10,934 | 836 | 13,940 | 4,162 |
Mousse Facial Cleanser [Member] | ||||
Product Information [Line Items] | ||||
Total revenues - products and services | 6,176 | 3,565 | 13,570 | 11,252 |
Trim+ [Member] | ||||
Product Information [Line Items] | ||||
Total revenues - products and services | 76,118 | 930 | 82,354 | 23,604 |
Product Health Therapies [Member] | ||||
Product Information [Line Items] | ||||
Total revenues - products and services | 159,934 | 376,122 | ||
Others [Member] | ||||
Product Information [Line Items] | ||||
Total revenues - products and services | 2,786 | 3,174 | ||
Product [Member] | ||||
Product Information [Line Items] | ||||
Total revenues - products and services | 622,959 | 199,976 | 1,397,487 | 799,796 |
Health and Wellness Services [Member] | ||||
Product Information [Line Items] | ||||
Total revenues - products and services | $ 40,930 | $ 1,308 | $ 72,069 | $ 7,054 |
SCHEDULE OF FOREIGN CURRENCIES
SCHEDULE OF FOREIGN CURRENCIES TRANSLATION EXCHANGE RATES (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Period-end MYR : US$1 Exchange Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Foreign currency exchange rate, translation | 4.64 | 4.64 | 4.18 | ||
Period-end HKD : US$1 Exchange Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Foreign currency exchange rate, translation | 7.85 | 7.85 | 7.80 | ||
Period-average MYR : US$1 Exchange Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Foreign currency exchange rate period average | 4.52 | 4.20 | 4.36 | 4.13 | |
Period-average HKD : US$1 Exchange Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Foreign currency exchange rate period average | 7.85 | 7.78 | 7.84 | 7.77 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Product Information [Line Items] | |||||
Accounts receivable, allowance for credit loss | |||||
Inventories write-down | $ 36,636 | ||||
Allowance for doubtful accounts | 0 | 0 | 121,095 | ||
Impairment of long-lived assets | 0 | $ 0 | |||
Value of coupons | 5,923 | $ 1,361 | 6,876 | 12,587 | |
Cost of revenue | 157,745 | 36,663 | 340,559 | 149,877 | |
Revenue from contract with customer excluding assessed tax | 663,889 | 201,284 | 1,469,556 | 806,850 | |
Selling expenses | 76,030 | 82,854 | 270,228 | 299,806 | |
Advertising costs | 0 | 2,473 | 4,737 | 19,131 | |
Commission expenses | 167,395 | 76,817 | 344,061 | 258,030 | |
Defined contribution plan expense | 34,966 | $ 21,674 | $ 98,373 | 74,708 | |
Income tax description | greater than 50% | ||||
Income tax examination, penalties and interest expense | $ 0 | $ 0 | $ 395 | ||
Noncontrolling interest, description | Non-controlling interest consists of 40% of the equity interests of DSY Wellness held by an individual and approximately 0.01% (2 ordinary shares out of 9,590,598 shares) of the equity interests of ASL held by two individuals | ||||
Potentially dilutive securities outstanding | 0 | 0 | 0 | 0 | 0 |
Social Security Organization [Member] | |||||
Product Information [Line Items] | |||||
Salary percentage | 1.75% | ||||
Employees Provident Fund [Member] | |||||
Product Information [Line Items] | |||||
Salary percentage | 12% | ||||
Employment Insurance System [Member] | |||||
Product Information [Line Items] | |||||
Salary percentage | 0.20% | ||||
Human Resource Development Fund [Member] | |||||
Product Information [Line Items] | |||||
Salary percentage | 1% | ||||
Health and Wellness Services [Member] | |||||
Product Information [Line Items] | |||||
Cost of revenue | $ 0 | ||||
Revenue from contract with customer excluding assessed tax | $ 40,930 | $ 1,308 | 72,069 | $ 7,054 | |
Shipping and Handling [Member] | |||||
Product Information [Line Items] | |||||
Selling expenses | $ 7,364 | $ 2,139 | $ 14,543 | $ 7,411 |
SCHEDULE OF VARIABLE INTEREST E
SCHEDULE OF VARIABLE INTEREST ENTITY (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Trading Activity, Gains and Losses, Net [Line Items] | |||||
Total current assets | $ 2,355,169 | $ 2,355,169 | $ 3,912,122 | ||
Current liabilities | (850,000) | (850,000) | (1,312,841) | ||
Net deficit | 2,233,868 | 2,233,868 | 3,312,972 | ||
Cash | 1,584,869 | 1,584,869 | 2,597,848 | ||
Prepaid taxes | 322,438 | 322,438 | 636,218 | ||
Total current liabilities | 850,000 | 850,000 | 1,312,841 | ||
Operating revenues | 663,889 | $ 201,284 | 1,469,556 | $ 806,850 | |
Gross profit | 506,144 | 164,621 | 1,128,997 | 656,973 | |
Loss from operations | (193,308) | (364,996) | (771,723) | (1,116,503) | |
Net loss | (240,712) | (571,265) | (954,711) | (1,547,140) | |
Variable Income Interest Rate [Member] | |||||
Trading Activity, Gains and Losses, Net [Line Items] | |||||
Total current assets | 5,651 | 5,651 | 18,850 | ||
Current liabilities | (41,393) | (41,393) | (51,272) | ||
Net deficit | (35,742) | (35,742) | (32,422) | ||
Cash | 3,997 | 3,997 | 17,493 | ||
Prepaid taxes | 1,654 | 1,654 | 1,357 | ||
Accounts payable – intercompany | 40,306 | 40,306 | 49,724 | ||
Other payables and accrued liabilities | 1,087 | 1,087 | 1,548 | ||
Total current liabilities | 41,393 | 41,393 | $ 51,272 | ||
Operating revenues | |||||
Gross profit | |||||
Loss from operations | (3,743) | (4,914) | (6,962) | (16,881) | |
Net loss | $ (3,743) | $ (4,079) | $ (6,962) | $ (14,028) |
VARIABLE INTEREST ENTITY (_VI_3
VARIABLE INTEREST ENTITY (“VIE”) (Details Narrative) | Sep. 30, 2022 |
Subsidiary Company Three [Member] | |
Proportional of ownership interest and voting power held | 100% |
CASH AND CASH EQUIVALENTS (Deta
CASH AND CASH EQUIVALENTS (Details Narrative) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Cash and cash equivalents, at carrying value | $ 1,584,869 | $ 2,597,848 | |
Cash | 517,730 | 554,864 | |
Time deposits | 1,027,797 | 1,975,347 | |
Time deposit uninsured | $ 254,662 | $ 295,761 | |
Minimum [Member] | |||
Percentage of interest-bearing domestic deposits to deposits, time deposits | 1.10% | 1.80% | |
Maximum [Member] | |||
Percentage of interest-bearing domestic deposits to deposits, time deposits | 1.58% | 2.15% |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLES - RELATED PARTY (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Accounts receivable | $ 1,720 | |
Allowance for doubtful accounts | ||
Total accounts receivable | $ 1,720 |
SCHEDULE OF INVENTORIES (Detail
SCHEDULE OF INVENTORIES (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 275,410 | $ 375,535 |
INVENTORIES (Details Narrative)
INVENTORIES (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | ||
Inventory write-downs | $ 36,636 |
SCHEDULE OF PREPAID EXPENSES AN
SCHEDULE OF PREPAID EXPENSES AND DEPOSITS (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Prepayments And Deposits | ||
Receivables from sales distributors | $ 33,744 | $ 115,379 |
Deposits to suppliers | 136,988 | 301,233 |
Subtotal | 170,732 | 416,612 |
Less: Provision for doubtful accounts | (121,095) | |
Total | $ 170,732 | $ 295,517 |
SCHEDULE OF CHANGES IN ALLOWANC
SCHEDULE OF CHANGES IN ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Prepayments And Deposits | ||
Beginning balance | $ 121,095 | |
Addition | 121,514 | |
Write off | (120,372) | |
Exchange rate effect | (723) | (419) |
Ending balance | $ 121,095 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 460,806 | $ 505,755 |
Less: accumulated depreciation | (312,008) | (289,956) |
Total | 148,798 | 215,799 |
Computer and Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 79,535 | 82,298 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 110,013 | 122,185 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 182,389 | 202,570 |
Vehicle [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 88,869 | $ 98,702 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 17,477 | $ 18,740 | $ 54,138 | $ 56,919 |
SCHEDULE OF INTANGIBLE ASSETS,
SCHEDULE OF INTANGIBLE ASSETS, NET (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Computer software | $ 31,021 | $ 34,453 |
Less: accumulated amortization | (28,969) | (30,793) |
Total | $ 2,052 | $ 3,660 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 425 | $ 476 | $ 1,322 | $ 1,482 |
SCHEDULE OF INVESTMENT IN MARKE
SCHEDULE OF INVESTMENT IN MARKETABLE SECURITIES (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Investment In Marketable Securities | ||
Cost of investment | $ 89,001 | $ 577,035 |
Dividend income from Greenpro Capital Corp. | 18,939 | |
Unrealized holding loss | (64,284) | (505,231) |
Exchange rate effect | (447) | (1,742) |
Investment in marketable securities | $ 24,270 | $ 89,001 |
INVESTMENT IN MARKETABLE SECU_3
INVESTMENT IN MARKETABLE SECURITIES (Details Narrative) - USD ($) | Jul. 19, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 27, 2021 | Dec. 09, 2020 | Nov. 03, 2020 | Oct. 16, 2018 | Jul. 30, 2018 | May 17, 2018 |
Investment amount | $ 89,001 | $ 577,035 | |||||||
Stockholders equity reverse stock split | the company’s common stock at the ratio of 10-for-1 effective July 28, 2022. Under the reverse stock split, each 10 pre-split share of common stock outstanding will automatically combine into 1 new share of common stock of the company | ||||||||
Greenpro Capital Corp. [Member] | |||||||||
Investment in securities, shares | 11,665 | 116,646 | 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 | |||||||
SEATech Ventures Corp. [Member] | |||||||||
Investment in securities, shares | 11,665 | ||||||||
Investment amount | $ 18,874 | ||||||||
Purchased price per shares | $ 1.62 |
SCHEDULE OF INVESTMENT IN NON M
SCHEDULE OF INVESTMENT IN NON MARKETABLE SECURITIES (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Cost of investment | $ 89,001 | $ 577,035 |
Cost of investment | 1,500 | 1,500 |
Phoenix Plus Corporation [Member] | ||
Cost of investment | 1,500 | 1,500 |
Cost of investment | $ 1,500 | $ 1,500 |
INVESTMENT IN NON-MARKETABLE _3
INVESTMENT IN NON-MARKETABLE SECURITIES (Details Narrative) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | Apr. 03, 2019 |
Investment amount | $ 89,001 | $ 577,035 | |
Phoenix Plus Corporation [Member] | |||
Equity interest percentage | 5% | ||
Investment amount | $ 1,500 | ||
Shares issued price per share | $ 0.0001 | ||
Phoenix Plus Corporation [Member] | Common Stock [Member] | |||
Shares purchased during period | 15,000,000 |
SCHEDULE OF OTHER PAYABLES AND
SCHEDULE OF OTHER PAYABLES AND ACCRUED LIABILITIES (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Professional fees | $ 118,938 | $ 436,541 |
Promotion expenses | 43,437 | 46,760 |
Payroll | 23,641 | 22,669 |
Commissions | 307,563 | 219,721 |
Tax penalty | 75,000 | 75,000 |
Deferred Income | 15,527 | |
Others | 32,202 | 57,664 |
Total | $ 616,308 | $ 858,355 |
SCHEDULE OF RELATED PARTIES (De
SCHEDULE OF RELATED PARTIES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||||
Accounts payable, related parties, current | $ 19,155 | $ 19,155 | |||
Due from related parties | 7,004 | ||||
Amount due to a Related Party | 3,816 | 3,816 | |||
Purchases | 58,876 | 132,949 | |||
Purchases | 3,440 | 3,508 | |||
Commission | 8,158 | 2,919 | 13,213 | 9,578 | |
Office rental expense | 5,501 | 16,502 | |||
Other income | $ 1,428 | $ 4,357 | |||
CTA Nutriceuticals (Asia) Sdn Bhd ("CTA") [Member] | |||||
Related Party Transaction [Line Items] | |||||
Relationship | The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd | The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd | The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd | The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd | The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd |
Nature | Purchases of products for the provision of complementary health therapies | Purchases of products for the provision of complementary health therapies | Purchases of products for the provision of complementary health therapies | Purchases of products for the provision of complementary health therapies | Purchases of products for the provision of complementary health therapies |
Accounts payable, related parties, current | $ 18,611 | $ 18,611 | |||
Nature | Purchase of products for general use | Purchase of products for general use | |||
Amount due to a Related Party | 941 | $ 941 | |||
Purchases | $ 56,606 | $ 130,166 | |||
DSY Beauty Sdn Bhd ("DSY Beauty") [Member] | |||||
Related Party Transaction [Line Items] | |||||
Relationship | The directors and shareholders of DSY Beauty are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd | The directors and shareholders of DSY Beauty are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd | The directors and shareholders of DSY Beauty are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd | The directors and shareholders of DSY Beauty are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd | |
Nature | Purchase of products for general use | Purchase of products for general use | Purchases of beauty products | Purchases of beauty products | |
Accounts payable, related parties, current | $ 544 | $ 544 | |||
Nature | Purchase of products for general use | Purchase of products for general use | |||
Amount due to a Related Party | 168 | $ 168 | |||
Purchases | 1,145 | ||||
Agape ATP (Asia) Limited ("AATP Asia") [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 | |||
Due from related parties | $ 2,214 | ||||
Hostastay Sdn. Bhd. (Hostastay) [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 ceased to be the director of Hostastay as of April 21, 2021 | Mr. How Kok Choong, the CEO and director of the Company is also the director of Hostastay. Mr. How Kok Choong ceased to be the director of Hostastay as of April 21, 2021 | |||
Nature | Sublease rent due from Hostastay | Sublease rent due from Hostastay | |||
Due from related parties | $ 4,790 | ||||
DSY Wellness & Longevity Center Sdn Bhd [Member] | |||||
Related Party Transaction [Line Items] | |||||
Relationship | Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd is also a director of DSYWLC | Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd is also a director of DSYWLC | |||
Nature | Rental due and expenses paid by DSYWLC | Rental due and expenses paid by DSYWLC | |||
Amount due to a Related Party | $ 2,707 | $ 2,707 | |||
DSY Beauty Sdn Bhd [Member] | |||||
Related Party Transaction [Line Items] | |||||
Relationship | The directors and shareholders of DSY Beauty are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd | The directors and shareholders of DSY Beauty are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd | The directors and shareholders of DSY Beauty are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd | The directors and shareholders of DSY Beauty are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd | |
Nature | Purchases of beauty products | Purchases of beauty products | Purchases of beauty products | Purchases of beauty products | |
Purchases | $ 2,270 | $ 2,658 | |||
DSY Wellness and Longevity Center Sdn Bhd ("DSYWLC") [Member] | |||||
Related Party Transaction [Line Items] | |||||
Relationship | Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC | Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC | |||
Nature | Purchases of products for the provision of complementary health therapies | Purchases of products for the provision of complementary health therapies | |||
Purchases | $ 125 | ||||
CTA Nutriceuticals (Asia) Sdn Bhd [Member] | |||||
Related Party Transaction [Line Items] | |||||
Relationship | The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd | The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd | |||
Nature | Purchase of products for general use | Purchase of products for general use | |||
Purchases | $ 2,295 | ||||
CTA Nutriceuticals (Asia) Sdn Bhd ("CTA") [Member] | |||||
Related Party Transaction [Line Items] | |||||
Relationship | The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd | The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd | |||
Nature | Purchase of products for general use | Purchase of products for general use | |||
Purchases | $ 2,295 | ||||
DSY Beauty Sdn Bhd ("DSY Beauty") [Member] | |||||
Related Party Transaction [Line Items] | |||||
Relationship | The directors and shareholders of DSY Beauty are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd | The directors and shareholders of DSY Beauty are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd | |||
Nature | Purchase of products for general use | Purchase of products for general use | |||
Purchases | $ 1,213 | ||||
Mr.How Kok Choong [Member] | |||||
Related Party Transaction [Line Items] | |||||
Relationship | Mr. How Kok Choong, the CEO and director of the Company | Mr. How Kok Choong, the CEO and director of the Company | Mr. How Kok Choong, the CEO and director of the Company | Mr. How Kok Choong, the CEO and director of the Company | |
Nature | Commission expense | Commission expense | Commission expense | Commission expense | |
Commission | $ 8,158 | $ 2,919 | $ 13,213 | $ 9,578 | |
DSY Wellness and Longevity Center Sdn Bhd ("DSYWLC") [Member] | |||||
Related Party Transaction [Line Items] | |||||
Relationship | Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd is also a director of DSYWLC | Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd is also a director of DSYWLC | Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd is also a director of DSYWLC | Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd is also a director of DSYWLC | |
Nature | Office rental expense | Office rental expense | Office rental expense | Office rental expense | |
Office rental expense | $ 5,501 | $ 16,502 | |||
Hostastay Sdn. Bhd. (Hostastay) [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 ceased to be the director of Hostastay as of April 21, 2021 | Mr. How Kok Choong, the CEO and director of the Company is also the director of Hostastay. Mr. How Kok Choong ceased to be the director of Hostastay as of April 21, 2021 | Mr. How Kok Choong, the CEO and director of the Company is also the director of Hostastay. Mr. How Kok Choong ceased to be the director of Hostastay as of April 21, 2021 | Mr. How Kok Choong, the CEO and director of the Company is also the director of Hostastay. Mr. How Kok Choong ceased to be the director of Hostastay as of April 21, 2021 | |
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 | $ 4,357 |
STOCKHOLDERS_ EQUITY (Details N
STOCKHOLDERS’ EQUITY (Details Narrative) - shares | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Collaborative Arrangement and Arrangement Other than Collaborative [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 | 75,452,012 | 75,452,012 | 290,460,047 | ||
Common stock, shares outstanding | 75,452,012 | 75,452,012 | 290,460,047 | ||
Potentially dilutive securities outstanding | 0 | 0 | 0 | 0 | 0 |
Share Forfeiture Agreements [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Reduction in outstanding shares | 215,008,035 | ||||
Share Forfeiture Agreements [Member] | Mr. How Kok Choong [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Number of shares forfeited | 215,008,035 |
SCHEDULE OF NON CONTROLLING INT
SCHEDULE OF NON CONTROLLING INTEREST (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Noncontrolling Interest [Abstract] | ||
Paid-in capital | $ 97 | $ 97 |
Retained earnings (Accumulated deficit) | 11,267 | (436) |
Accumulated other comprehensive income (expense) | (655) | 3 |
Non Controlling interest Gross | 10,709 | (336) |
ASL | ||
Total | $ 10,709 | $ (336) |
SCHEDULE OF COMPONENTS OF INCOM
SCHEDULE OF COMPONENTS OF INCOME/(LOSS) BEFORE INCOME TAX (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Local – United States | $ (165,864) | $ (117,272) | $ (459,668) | $ (321,567) |
Loss before income tax | (259,214) | (585,808) | (953,324) | (1,551,592) |
MALAYSIA | ||||
Foreign, Tax jurisdictions | (81,151) | (257,590) | (435,610) | (727,265) |
HONG KONG | ||||
Foreign, Tax jurisdictions | $ (12,199) | $ (210,946) | $ (58,046) | $ (502,760) |
SCHEDULE OF PROVISION FOR INCOM
SCHEDULE OF PROVISION FOR INCOME TAX (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Current: | ||||
- Local | $ (22,205) | |||
- Foreign | 18,997 | (63,792) | 10,317 | (104,977) |
Deferred: | ||||
- Local | ||||
- Foreign | 78,335 | 131,634 | ||
Benefit of income tax | $ 18,997 | $ 14,543 | $ 10,317 | $ 4,452 |
SCHEDULE OF DEFERRED TAX ASSETS
SCHEDULE OF DEFERRED TAX ASSETS (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Less: valuation allowance | $ (514,817) | $ (326,277) |
Depreciation | (15,574) | |
Deferred tax liabilities, net | (15,574) | |
UNITED STATES | ||
Net operating loss carry forwards in Malaysia | 226,730 | 130,277 |
Less: valuation allowance | (227,000) | (130,000) |
MALAYSIA | ||
Net operating loss carry forwards in Malaysia | 288,087 | 196,000 |
Less: valuation allowance | $ (288,000) | $ (196,000) |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 3 Months Ended | 9 Months Ended | |||||||||
Jan. 02, 2019 | Sep. 30, 2022 USD ($) | Sep. 30, 2022 MYR (RM) | Sep. 30, 2021 USD ($) | Sep. 30, 2021 MYR (RM) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 MYR (RM) | Sep. 30, 2021 USD ($) | Sep. 30, 2021 MYR (RM) | Sep. 30, 2022 MYR (RM) | Dec. 31, 2021 USD ($) | |
Operating Loss Carryforwards [Line Items] | |||||||||||
Tax rate description | In addition, the Tax Cuts and Jobs Act imposed a global intangible low-taxed income (“GILTI”) tax, which is a tax on certain off-shore earnings at an effective rate of 10.5% for tax years (50% deduction of the current enacted tax rate of 21%) with a partial offset for 80% foreign tax credits. If the foreign tax rate is 13.125% or higher, there will be no U.S. corporate tax after the 80% foreign tax credits are applied | In addition, the Tax Cuts and Jobs Act imposed a global intangible low-taxed income (“GILTI”) tax, which is a tax on certain off-shore earnings at an effective rate of 10.5% for tax years (50% deduction of the current enacted tax rate of 21%) with a partial offset for 80% foreign tax credits. If the foreign tax rate is 13.125% or higher, there will be no U.S. corporate tax after the 80% foreign tax credits are applied | |||||||||
Deferred tax valuation allowance | $ 514,817 | $ 514,817 | $ 326,277 | ||||||||
Interest and penalties tax | 0 | 0 | $ 395 | ||||||||
2028 [Member] | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Operating loss carryforwards | 801,000 | 801,000 | |||||||||
2029 [Member] | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Operating loss carryforwards | 386,000 | 386,000 | |||||||||
2030 [Member] | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Operating loss carryforwards | 36,000 | 36,000 | |||||||||
UNITED STATES | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Operating loss carryforwards | 1,080,000 | 1,080,000 | 620,000 | ||||||||
Deferred tax valuation allowance | 227,000 | $ 227,000 | 130,000 | ||||||||
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% | 17% | |||||||||
Operating loss carryforwards | 1,223,000 | $ 1,223,000 | 837,000 | ||||||||
Deferred tax valuation allowance | 288,000 | $ 288,000 | $ 196,000 | ||||||||
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, 2022 and 2021, with the remaining balance being taxed at the 24% rate | The tax rate for small and medium sized companies (generally companies incorporated in Malaysia with paid-in capital of RM 2,500,000 or less) is 17% for the first RM 600,000 (or approximately $150,000) for the three and nine months ended September 30, 2022 and 2021, with the remaining balance being taxed at the 24% rate | |||||||||
Paid in capital | RM | RM 2,500,000 | ||||||||||
Additional paid in capital | $ 150,000 | RM 600,000 | $ 150,000 | RM 600,000 | $ 150,000 | RM 600,000 | $ 150,000 | RM 600,000 | |||
HONG KONG | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Tax percentage | 16.50% | 16.50% | |||||||||
State and Local Jurisdiction [Member] | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Tax percentage | 21% | 21% | |||||||||
Foreign Tax Authority [Member] | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Tax percentage | 35% | 35% |
CONCENTRATIONS OF RISKS (Detail
CONCENTRATIONS OF RISKS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Concentration Risk [Line Items] | |||||
Deposits | $ 517,730 | $ 517,730 | $ 554,864 | ||
Deposit for insurance | $ 254,662 | $ 254,662 | $ 295,761 | ||
No Customer [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentrations of risk percentage | 10% | 10% | 10% | 10% | |
One Individual Customers [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | E-commerce [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentrations of risk percentage | 81% | ||||
Vendor One [Member] | Cost of Goods and Service Benchmark [Member] | Supplier Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentrations of risk percentage | 56% | 69.30% | 50% | 74.30% | |
Vendor One [Member] | Accounts Payable [Member] | Supplier Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentrations of risk percentage | 46% | ||||
Vendor Two [Member] | Cost of Goods and Service Benchmark [Member] | Supplier Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentrations of risk percentage | 22% | 26.50% | 15% | 14.10% | |
Vendor Two [Member] | Accounts Payable [Member] | Supplier Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentrations of risk percentage | 30% | ||||
Vendor Three [Member] | Cost of Goods and Service Benchmark [Member] | Supplier Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentrations of risk percentage | 13% | 32% | 10% | ||
Vendor Three [Member] | Accounts Payable [Member] | Supplier Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentrations of risk percentage | 20% | ||||
Vendor [Member] | Accounts Payable [Member] | Supplier Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentrations of risk percentage | 46% | ||||
One Vendor [Member] | Accounts Payable [Member] | Supplier Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentrations of risk percentage | 100% | ||||
No Sales Distributor [Member] | Cost of Goods and Service Benchmark [Member] | Supplier Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentrations of risk percentage | 10% | 10% | |||
One Sales Distributor [Member] | Cost of Goods and Service Benchmark [Member] | Supplier Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentrations of risk percentage | 17.80% | 19.40% |
SCHEDULE OF LEASE COMMITMENTS (
SCHEDULE OF LEASE COMMITMENTS (Details) | Sep. 30, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2023 | $ 118,561 |
2024 | 431 |
Thereafter | |
Total lease payments | 118,992 |
Less: interest | (2,793) |
Present value of lease liabilities | $ 116,199 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
May 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Apr. 01, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Operating lease liability | $ 116,199 | $ 116,199 | ||||
Lease expiration term | May 31, 2023 | |||||
Reduction in ROU assets and liabilities | $ 3,250 | |||||
Operating lease payments | 7,332 | |||||
Operating lease, expense | $ 46,216 | $ 44,344 | $ 144,528 | $ 135,865 | ||
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 | 11 months 1 day | 11 months 1 day |