Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 13, 2023 | |
Document Information Line Items | ||
Entity Registrant Name | BIO ESSENCE CORP. | |
Trading Symbol | N/A | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 38,009,000 | |
Amendment Flag | false | |
Entity Central Index Key | 0001723059 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Shell Company | false | |
Entity Ex Transition Period | true | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 333-232839 | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 94-3349551 | |
Entity Address, Address Line One | 8 Studebaker | |
Entity Address, Address Line Two | Drive in | |
Entity Address, City or Town | Irvine | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92618 | |
City Area Code | (949) | |
Local Phone Number | 706-9966 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | N/A | |
Security Exchange Name | NONE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
CURRENT ASSETS | ||
Cash and equivalents | $ 89 | $ 6,262 |
Accounts receivable, net | 13,125 | 5,599 |
Prepaid expenses | 2,915 | 8,820 |
Advance to suppliers | 87,870 | 1,987 |
Inventory, net (Note 3) | 125,276 | 181,163 |
Total current assets | 229,275 | 203,831 |
NONCURRENT ASSETS | ||
Security deposit (Note 4) | 91,841 | 41,841 |
Right-of-use assets, net | 1,549,693 | 1,054,872 |
Property and equipment, net (Note 5) | 178,114 | 246,379 |
Intangible assets, net (Note 6) | 626 | 802 |
Total non-current assets | 1,820,274 | 1,343,894 |
TOTAL ASSETS | 2,049,549 | 1,547,725 |
CURRENT LIABILITIES | ||
Bank overdraft | 28,088 | 53,651 |
Accounts payable | 39,032 | 49,776 |
Taxes payable (Note 7) | 22,962 | 8,392 |
Accrued liabilities and other payables | 56,534 | 91,645 |
Accrued interest on government loans | 17,345 | 16,867 |
Operating lease liabilities (Note 12) | 483,040 | 156,560 |
Finance lease liabilities (Note 12) | 13,494 | 12,603 |
Loan payables (Note 13) | 11,500 | 11,954 |
Government loans payable - current portion (Note 9) | 4,727 | 4,596 |
Loan from shareholders (Note 10) | 1,517,277 | 3,151,786 |
Total current liabilities | 2,193,999 | 3,557,830 |
NONCURRENT LIABILITIES | ||
Operating lease liabilities (Note 12) | 1,068,080 | 952,756 |
Finance lease liabilities (Note 12) | 29,504 | 39,687 |
Loan payables (Note 13) | 17,288 | 25,561 |
Government loans payable (Note 9) | 207,286 | 210,306 |
Total non-current liabilities | 1,322,158 | 1,228,310 |
TOTAL LIABILITIES | 3,516,157 | 4,786,140 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS’ DEFICIT | ||
Preferred stock $0.0001 par value; authorized shares 10,000,000 | ||
Common stock $0.0001 par value; authorized shares 100,000,000; issued and outstanding shares 38,009,000 and 33,009,000 as of September 30, 2023 and December 31, 2022 | 3,801 | 3,301 |
Additional paid in capital | 7,476,378 | 4,926,879 |
Accumulated deficit | (8,946,787) | (8,168,595) |
TOTAL STOCKHOLDERS’ DEFICIT | (1,466,608) | (3,238,415) |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | $ 2,049,549 | $ 1,547,725 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 38,009,000 | 33,009,000 |
Common stock, shares outstanding | 38,009,000 | 33,009,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues | ||||
Total revenues | $ 155,695 | $ 192,052 | $ 756,598 | $ 786,602 |
Cost of revenues | ||||
Total cost of revenues | 135,450 | 105,545 | 460,156 | 472,291 |
Gross profit | 20,245 | 86,507 | 296,442 | 314,311 |
Operating expenses | ||||
Selling | 23,416 | 20,365 | 96,509 | 68,858 |
General and administrative | 343,977 | 258,712 | 948,004 | 820,350 |
Total operating expenses | 367,393 | 279,077 | 1,044,513 | 889,208 |
Loss from operations | (347,148) | (192,570) | (748,071) | (574,897) |
Other income (expenses) | ||||
Interest expense | (5,483) | (5,256) | (15,957) | (15,575) |
Finance Lease interest expense | (565) | (724) | (1,793) | (920) |
Financial expense | (972) | (917) | (3,078) | (4,595) |
Other income | 63,373 | 341 | 68,330 | 3,376 |
Other expense | (24,047) | (107) | (74,423) | (737) |
Other income (expenses), net | 32,306 | (6,663) | (26,921) | (18,451) |
Loss before income tax | (314,842) | (199,233) | (774,992) | (593,348) |
Income tax expense | 3,200 | 3,200 | ||
Net loss | $ (314,842) | $ (199,233) | $ (778,192) | $ (596,548) |
Basic weighted average shares outstanding (in Shares) | 38,009,000 | 33,009,000 | 35,261,747 | 33,009,000 |
Basic net loss per share (in Dollars per share) | $ (0.01) | $ (0.01) | $ (0.02) | $ (0.02) |
Sales of goods | ||||
Revenues | ||||
Total revenues | $ 116,148 | $ 163,342 | $ 407,814 | $ 483,432 |
Manufacture service revenue | ||||
Revenues | ||||
Total revenues | 39,547 | 28,710 | 348,784 | 303,170 |
Cost of goods sold | ||||
Cost of revenues | ||||
Total cost of revenues | 53,768 | 62,539 | 212,359 | 232,911 |
Cost of manufacture service | ||||
Cost of revenues | ||||
Total cost of revenues | $ 81,682 | $ 43,006 | $ 247,797 | $ 239,380 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Diluted weighted average shares outstanding | 38,009,000 | 33,009,000 | 35,261,747 | 33,009,000 |
Diluted net loss per share | $ (0.01) | $ (0.01) | $ (0.02) | $ (0.02) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Deficit (Unaudited) - USD ($) | COMMON STOCK | ADDITIONAL PAID IN CAPITAL | ACCUMULATED DEFICIT | Total |
Balance at Dec. 31, 2021 | $ 3,301 | $ 4,926,879 | $ (7,358,916) | $ (2,428,736) |
Balance (in Shares) at Dec. 31, 2021 | 33,009,000 | |||
Net loss | (233,120) | (233,120) | ||
Balance at Mar. 31, 2022 | $ 3,301 | 4,926,879 | (7,592,036) | (2,661,856) |
Balance (in Shares) at Mar. 31, 2022 | 33,009,000 | |||
Balance at Dec. 31, 2021 | $ 3,301 | 4,926,879 | (7,358,916) | (2,428,736) |
Balance (in Shares) at Dec. 31, 2021 | 33,009,000 | |||
Net loss | (596,548) | |||
Balance at Sep. 30, 2022 | $ 3,301 | 4,926,879 | (7,955,462) | (3,025,282) |
Balance (in Shares) at Sep. 30, 2022 | 33,009,000 | |||
Balance at Mar. 31, 2022 | $ 3,301 | 4,926,879 | (7,592,036) | (2,661,856) |
Balance (in Shares) at Mar. 31, 2022 | 33,009,000 | |||
Net loss | (164,193) | (164,193) | ||
Balance at Jun. 30, 2022 | $ 3,301 | 4,926,879 | (7,756,229) | (2,826,049) |
Balance (in Shares) at Jun. 30, 2022 | 33,009,000 | |||
Net loss | (199,233) | (199,233) | ||
Balance at Sep. 30, 2022 | $ 3,301 | 4,926,879 | (7,955,462) | (3,025,282) |
Balance (in Shares) at Sep. 30, 2022 | 33,009,000 | |||
Balance at Dec. 31, 2022 | $ 3,301 | 4,926,879 | (8,168,595) | (3,238,415) |
Balance (in Shares) at Dec. 31, 2022 | 33,009,000 | |||
Net loss | (178,836) | (178,836) | ||
Balance at Mar. 31, 2023 | $ 3,301 | 4,926,879 | (8,347,431) | (3,417,251) |
Balance (in Shares) at Mar. 31, 2023 | 33,009,000 | |||
Balance at Dec. 31, 2022 | $ 3,301 | 4,926,879 | (8,168,595) | (3,238,415) |
Balance (in Shares) at Dec. 31, 2022 | 33,009,000 | |||
Net loss | (778,192) | |||
Balance at Sep. 30, 2023 | $ 3,801 | 7,476,379 | (8,946,788) | (1,466,608) |
Balance (in Shares) at Sep. 30, 2023 | 38,009,000 | |||
Balance at Mar. 31, 2023 | $ 3,301 | 4,926,879 | (8,347,431) | (3,417,251) |
Balance (in Shares) at Mar. 31, 2023 | 33,009,000 | |||
Net loss | (284,515) | (284,515) | ||
Shares issued for shareholder’s loan settlement | $ 500 | 2,549,500 | 2,550,000 | |
Shares issued for shareholder’s loan settlement (in Shares) | 5,000,000 | |||
Balance at Jun. 30, 2023 | $ 3,801 | 7,476,379 | (8,631,946) | (1,151,766) |
Balance (in Shares) at Jun. 30, 2023 | 38,009,000 | |||
Net loss | (314,842) | (314,842) | ||
Balance at Sep. 30, 2023 | $ 3,801 | $ 7,476,379 | $ (8,946,788) | $ (1,466,608) |
Balance (in Shares) at Sep. 30, 2023 | 38,009,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (778,192) | $ (596,548) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 48,998 | 37,668 |
Operating lease expense | 221,957 | 165,558 |
Gain on operating lease termination | (61,844) | |
Loss on shareholder’s note conversion | 50,000 | |
Loss on disposal of fixed assets | 23,058 | |
Increase (decrease) in assets: Changes in assets / liabilities: | ||
Accounts receivable | (7,527) | (29,874) |
Prepaid expenses | 5,905 | 26,863 |
Advance to suppliers | (85,883) | |
Security deposit | (50,000) | |
Inventory | 55,887 | 12,225 |
Accounts payable | (10,744) | 10,746 |
Customer deposit | (43,303) | (28,283) |
Accrued liabilities and other payables | 8,193 | 8,404 |
Accrued interest | 478 | 3,154 |
Taxes payable | 14,568 | (3,320) |
Payment on lease liabilities | (213,130) | (180,551) |
Net cash used in operating activities | (821,579) | (573,958) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Payment for leasehold improvement | (3,614) | |
Purchase of fixed assets | (53,593) | |
Net cash used in investing activities | (3,614) | (53,593) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Bank overdraft | (25,563) | 13,801 |
Repayment of finance lease liabilities | (9,291) | (4,646) |
Repayment of government loans | (2,890) | |
Repayment of loan payables | (8,727) | (9,335) |
Loan from shareholder | 865,491 | 628,000 |
Net cash provided by financing activities | 819,020 | 627,820 |
NET DECREASE (INCREASE) IN CASH & EQUIVALENTS | (6,173) | 269 |
CASH & EQUIVALENTS, BEGINNING OF PERIOD | 6,262 | 303 |
CASH & EQUIVALENTS, END OF PERIOD | 89 | 572 |
Supplemental Cash Flow Data: | ||
Income tax paid | 3,200 | 3,200 |
Interest paid | 16,958 | 4,716 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Conversion of loan from shareholders to common shares | 2,500,000 | |
Fixed assets obtained in exchange for new finance lease liabilities | 60,091 | |
Recognition of ROU asset and operating lease liability | 1,589,863 | |
Termination of ROU asset and operating lease liability | $ 935,073 |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
Sep. 30, 2023 | |
Organization and Description of Business [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | 1. ORGANIZATION AND DESCRIPTION OF BUSINESS Bio Essence Corporation (“the Company” or “Bio Essence”) was incorporated in 2000 in the state of California. Fusion Diet Systems (“FDS”) was incorporated in 2010 in the state of Utah. Bio Essence and FDS were under common control since 2016. Bio Essence and FDS are mainly engaged in manufacturing and distributing health supplement products. In January 2017, Bio Essence incorporated two subsidiaries in the state of California: Bio Essence Pharmaceutical Inc. (“BEP”) and Bio Essence Herbal Essentials, Inc. (“BEH”), Bio Essence transferred its manufacturing operation to BEP, and transferred its distributing operation to BEH. On March 1, 2017, the 100% shareholder of FDS transferred all of her ownership in FDS to Bio Essence. On December 7, 2021, the Company dissolved FDS. On November 12, 2021, Bio Essence incorporated a wholly owned subsidiary McBE Pharma Inc. (“McBE”) in the state of California, McBE will be engaged in developing, manufacturing and sales of prescription medicine. As a result of the ownership restructure, BEP BEH and McBE became wholly owned subsidiaries of Bio Essence. McBE has not engaged any operations since its inception. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Consolidation The accompanying consolidated financial statements (“CFS”) are prepared in conformity with U.S. Generally Accepted Accounting Principles (“US GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The functional currency of Bio Essence is U.S. dollars (“$’’). The accompanying financial statements are presented in U.S. dollars (“$”). The consolidated financial statements include the financial statements of the Company and its subsidiaries, BEP, BEH and McBE. All significant inter-company transactions and balances were eliminated in consolidation. The interim consolidated financial information as of September 30, 2023 and for the nine and three months ended September 30, 2023 and 2022 was prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures, which are normally included in CFS prepared in accordance with U.S. GAAP were not included. The interim consolidated financial information should be read in conjunction with the Financial Statements and the notes thereto, included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. In the opinion of management, all adjustments (which include all significant normal and recurring adjustments) necessary to present a fair statement of the Company’s consolidated financial position as of September 30, 2023, its consolidated results of operations and cash flows for the nine and three months ended September 30, 2023 and 2022, as applicable, were made. The results for the period ended September 30, 2023 are not necessarily indicative of the results to be expected for the entire fiscal year ending December 31, 2023 or for any future period. Reclassification Certain prior period accounts have been reclassified in conformity with current period’s presentation. These reclassifications had no impact on the reported results of operations and cash flows. Going Concern The Company incurred net losses of $778,192 and $596,548 for the nine months ended September 30, 2023 and 2022, respectively. The Company incurred net losses of $314,842 and $199,233 for the three months ended September 30, 2023 and 2022, respectively. The Company also had an accumulated deficit of $8,946,787 as of September 30, 2023. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company plans to increase its income by strengthening its sales force, providing attractive sales incentive program, and increasing marketing and promotion activities. Management also intends to raise additional funds by way of a private or public offering, or by obtaining loans from banks or others. While the Company believes in the viability of its strategy to generate sufficient revenue and in its ability to raise additional funds on reasonable terms and conditions, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business plan and generate sufficient revenue and its ability to raise additional funds by way of a public or private offering. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Use of Estimates In preparing financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates, required by management, include the recoverability of long-lived assets, allowance for doubtful accounts, and the reserve for obsolete and slow-moving inventories. Actual results could differ from those estimates. Leases The Company follows ASC 842 and determines if an arrangement is a lease or contains a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, and operating lease liabilities (current and non-current) in the Company’s consolidated balance sheets. Finance leases are included in property and equipment, and finance lease liabilities (current and non-current) in the Company’s consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company generally uses the incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company elected the package of practical expedients permitted under the transition guidance to combine the lease and non-lease components as a single lease component for operating leases associated with the Company’s office space lease, and to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term. ROU assets are reviewed for impairment when indicators of impairment are present. ROU assets from operating and finance leases are subject to the impairment guidance in ASC 360, Property, Plant, and Equipment, as ROU assets are long-lived nonfinancial assets. The Company recognized no impairment of ROU assets as of September 30, 2023 and December 31, 2022. Cash and Equivalents For financial statement purposes, the Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Accounts Receivable The Company’s policy is to maintain an allowance for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. As of September 30, 2023 and December 31, 2022, the bad debt allowance was $2,252 and $2,252, respectively. Inventory Inventories are stated at the lower of cost or net realizable value with cost determined on a weighted-average basis. Management compares the cost of inventories with the net realizable value and an allowance is made for writing down their inventories to net realizable value, if lower. Property and Equipment Property and equipment are stated at cost, less accumulated depreciation, and impairment losses, if any. Major repairs and betterments that significantly extend original useful lives or improve productivity are capitalized and depreciated over the period benefited. Maintenance and repairs are expensed as incurred. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation of property and equipment is provided using the straight-line method for substantially all assets as follows: Leasehold improvements 7-10 years Office furniture 5 years Impairment of Long-Lived Assets Long-lived assets, which include property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by comparing of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by it. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds its fair value (“FV”). FV is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. Based on its review, the Company believes that, as of September 30, 2023 and December 31, 2022, there was no significant impairments of its long-lived assets. Income Taxes Income taxes are accounted for using an asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current period and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets also include the prior years’ net operating losses carried forward. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized. The Company follows ASC Topic 740, which prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740 also provides guidance on recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Under the provisions of ASC Topic 740, when tax returns are filed, it is likely that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits is classified as interest expense and penalties are classified in selling, general and administrative expenses in the statement of income. At September 30, 2023 and December 31, 2022, the Company did not take any uncertain positions that would necessitate recording a tax related liability. The Company files a U.S. income tax return. With few exceptions, the Company’s U.S. income tax return filed for the years ending on December 31, 2019 and thereafter are subject to examination by the relevant taxing authorities. Revenue Recognition The Company recognizes revenues following the five-step model prescribed under ASC 606: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) we satisfy the performance obligation. Revenue is measured at the amount of consideration we expect to receive in exchange for the sale of our product, which occurs at a point in time, typically upon delivery to the customer. The Company expenses incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that it would have recognized is one year or less or the amount is immaterial. Revenues from sales of goods are measured at net of reserves established for applicable discounts and allowances that are offered within contracts with the Company’s customers, and are recognized when the goods are delivered to the customers. Product revenue reserves, which are classified as a reduction in product revenues, are generally characterized in the following categories: discounts, returns and rebates. These reserves are based on estimates of the amounts earned or to be claimed on the related sales and are classified as reductions of accounts receivable as the amount is payable to the Company’s customers. Revenues from manufacture services are recognized when the manufacture process is completed pursuant to the customers’ requirement and the manufactured goods were delivered to the customers. The Company’s return policy allows for the return of damaged or defective products and shipment errors. A notice of damage or wrong items should make within five days from receiving the goods, and actual return of the products must be completed within 30 days from the date of receiving the goods. Delayed notification for damaged or wrong products will not be accepted for return or exchange. Custom formulas and capsules are not returnable. The amount for return of products was immaterial for the nine and three months ended September 30, 2023 and 2022. Cost of Revenue Cost of goods sold (“COGS”) consists primarily of finished goods purchased from other manufacturers, material costs, labor costs and related overhead that are directly attributable to the production of the products. Write-down of inventory to lower of cost or net realizable value is also recorded in COGS. Cost of manufacture service consists primarily of direct labor costs and related overhead that are directly attributable to the manufacture process. Shipping and Handling Costs Shipping and handling costs related to delivery of finished goods are included in selling expenses. During the nine months ended September 30, 2023 and 2022, shipping and handling costs were $32,596 and $27,382, respectively. During the three months ended September 30, 2023 and 2022, shipping and handling costs were $12,638 and $ 7,629, respectively. Advertising Advertising expenses consist primarily of costs of promotion and marketing for the Company’s image and products, and costs of direct advertising, and are included in selling expenses. The Company expenses all advertising costs as incurred. During the nine months ended September 30, 2023 and 2022, advertising expenses were $63,912 and $41,476, respectively. During the three months ended September 30, 2023 and 2022, advertising expenses were $10,778 and $12,736, respectively. Fair Value (“FV”) of Financial Instruments Certain of the Company’s financial instruments, including cash and equivalents, accrued liabilities and accounts payable, carrying amounts approximate their FV due to their short maturities. FASB ASC Topic 825, “Financial Instruments,” requires disclosure of the FV of financial instruments held by the Company. The carrying amounts reported in the balance sheets for current liabilities each qualify as financial instruments and are a reasonable estimate of their FV because of the short period of time between the origination of such instruments and their expected realization and the current market rate of interest. Fair Value Measurements and Disclosures ASC Topic 820, “Fair Value Measurements and Disclosures,” defines FV, and establishes a three-level valuation hierarchy for disclosures of FV measurement that enhances disclosure requirements for FV 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 asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 inputs to the valuation methodology are unobservable and significant to the FV measurement. As of September 30, 2023 and December 31, 2022, the Company did not identify any assets and liabilities that are required to be presented on the balance sheet at FV. The carrying value of cash, accounts receivable, prepaid expenses, advances to suppliers, accounts payable, taxes payable, other payables and accrued liabilities approximate estimated fair values because of their short maturities. Share-based Compensation The Company accounts for share-based compensation awards in accordance with ASC 718, “Compensation – Stock Compensation”. The cost of services received from employees and non-employees in exchange for awards of equity instruments is recognized in the consolidated statement of operations based on the estimated fair value of those awards on the grant date and amortized on a straight-line basis over the requisite service period or vesting period. The Company records forfeitures as they occur. Earnings (Loss) per Share (EPS) Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS is computed similar to basic net income per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if all the potential common shares pertaining to warrants, stock options, and similar instruments had been issued and if the additional common shares were dilutive. Diluted EPS are based on the assumption that all dilutive convertible shares and stock options and warrants were converted or exercised. Dilution is computed by applying the treasury stock method for the outstanding unvested restricted stock, options and warrants, and the if-converted method for the outstanding convertible instruments. Under the treasury stock method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later) and as if funds obtained thereby were used to purchase common stock at the average market price during the period. Under the if-converted method, outstanding convertible instruments are assumed to be converted into common stock at the beginning of the period (or at the time of issuance, if later). There were no potentially dilutive securities outstanding (options and warrants) for the nine and three months ended September 30, 2023 and 2022. Concentration of Credit Risk Financial instruments that potentially subject the Company to credit risk consist primarily of accounts and other receivables. The Company does not require collateral or other security to support these receivables. The Company conducts periodic reviews of the financial condition and payment practices of its customers to minimize collection risk on accounts receivable. For the nine months ended September 30, 2023, one major customer accounted for 22% of the Company’s total sales. For the nine months ended September 30, 2022, the company had two major customers accounted for 12% and 12%, respectively, of the Company’s total sales. For the three months ended September 30, 2023 and 2022, no customers accounted for more than 10% of the Company’s total sales. The Company had four major vendors accounted for 29%, 15%, 12% and 10%, respectively, of total purchases during the nine months ended September 30, 2023. The Company had four major vendors accounted for 17%, 14% and 14%, and 12%, respectively, of total purchases during the nine months ended September 30, 2022. The Company had four major vendors accounted for 23%, 15%, 14%, 14%, respectively, of total purchases during the three months ended September 30, 2023. The Company had two major vendors accounted for 65% and 13%, respectively, of total purchases during the three months ended September 30, 2022. Segment Reporting ASC Topic 280, “Segment Reporting,” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s chief operating decision maker organizes segments within the Company for making operating decisions assessing performance and allocating resources. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. Management determined the Company’s operations constitute a single reportable segment in accordance with ASC 280. The Company operates exclusively in one business and industry segment: manufacture and sale of health supplement products. New Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. ASU 2016-13 replaces the probable, incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost basis. Am entity should apply ASU 2016-13 on a modified-retrospective transition approach that would require a cumulative-effect adjustment to the opening retained earnings in the balance sheets as of the date of adoption. In March 2022, the FASB issued ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, which eliminates the accounting guidance for trouble debt restructurings by creditors and enhances the disclosure requirements for modifications of loans to borrowers experiencing financial difficulty. Additionally, ASU 2022-02 requires disclosure of gross write-offs by year of origination for receivables within the scope of Subtopic 326-20, Financial Instruments - Credit Losses - Measured at Amortized Cost, which should be applied prospectively. Both ASU 2016-13 and ASU 2022-02 are effective for smaller reporting companies for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company adopted ASU 2016-13 and ASU 2022-02 beginning January 1, 2023. The adoption of ASU 2016-13 and ASU 2022-02 did not have any impact on the Company’s consolidated financial statement presentation or disclosures. In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470- 20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. This ASU (1) simplifies the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in ASC 470-20, Debt: Debt with Conversion and Other Options, that requires entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock; (2) revises the scope exception from derivative accounting in ASC 815-40 for freestanding financial instruments and embedded features that are both indexed to the issuer’s own stock and classified in stockholders’ equity, by removing certain criteria required for equity classification; and (3) revises the guidance in ASC 260, Earnings Per Share, to require entities to calculate diluted earnings per share (EPS) for convertible instruments by using the if-converted method. In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares. For SEC filers, excluding smaller reporting companies, ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. For all other entities, ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Entities should adopt the guidance as of the beginning of the fiscal year of adoption and cannot adopt the guidance in an interim reporting period. The Company is currently evaluating the impact that ASU 2020-06 may have on its consolidated financial statement presentation and related disclosures. In March 2023, the FASB issued ASU 2023-01, Lease (Topic 842): Common Control Arrangements, which clarifies the accounting for leasehold improvements associated with leases between entities under common control (hereinafter referred to as common control lease). ASU 2023-01 requires entities to amortize leasehold improvements associated with common control lease over the useful life to the common control group (regardless of the lease term) as long as the lessee controls the use of the underlying asset through a lease, and to account for any remaining leasehold improvements as a transfer between entities under common control through an adjustment to equity when the lessee no longer controls the underlying asset. This ASU will be effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been made available for issuance. An entity may apply ASU 2023-01 either prospectively or retrospectively. The Company is currently evaluating the impact that the adoption of ASU 2023-01 will have on its consolidated financial statement presentation and disclosures. |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2023 | |
Inventory [Abstract] | |
INVENTORY | 3. INVENTORY Inventory consisted of the following at September 30, 2023 and December 31, 2022: September 30, December 31, (unaudited) Raw materials $ 6,283 $ 60,705 Finished goods – health supplements 145,127 146,576 Less: inventory impairment allowance (26,134 ) (26,118 ) Total $ 125,276 $ 181,163 |
Security Deposit
Security Deposit | 9 Months Ended |
Sep. 30, 2023 | |
Security Deposit [Abstract] | |
SECURITY DEPOSIT | 4. SECURITY DEPOSIT As of September 30, 2023 and December 31, 2022, the security deposit was for rent of the Company’s office and warehouse of $91,841 and $41,841, respectively. The Company made a deposit of $50,000 for a new lease that was effective on September 1, 2023. |
Property and Equipment, Net
Property and Equipment, Net | 9 Months Ended |
Sep. 30, 2023 | |
Property and Equipment, Net [Abstract] | |
PROPERTY AND EQUIPMENT, NET | 5. PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following at September 30, 2023 and December 31, 2022: September 30, December 31, (unaudited) Leasehold improvements $ 13,327 $ 57,067 Office furniture and equipment 394,399 406,241 Total 407,726 463,308 Less: accumulated depreciation (229,612 ) (216,929 ) Net $ 178,114 $ 246,379 Depreciation for the nine months ended September 30, 2023 and 2022 was $48,822 and $37,492, respectively. Depreciation for the three months ended September 30, 2023 and 2022 was $16,289 and $15,232, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 9 Months Ended |
Sep. 30, 2023 | |
Intangible Assets, Net [Abstract] | |
INTANGIBLE ASSETS, NET | 6. INTANGIBLE ASSETS, NET Intangible assets consisted of the following as of September 30, 2023 and December 31, 2022: September 30, December 31, (unaudited) Computer Software $ 36,928 $ 36,928 Trademark 2,350 2,350 Total 39,278 39,278 Less: accumulated amortization (38,652 ) (38,476 ) Net $ 626 $ 802 Amortization of intangible assets was $176 and $176 for the nine months ended September 30, 2023 and 2022, respectively. Amortization of intangible assets was $59 and $59 for the three months ended September 30, 2023 and 2022, respectively. Estimated amortization for the existing intangible assets with finite lives for each of the next five years at September 30, 2023 is as follows: $235, $235 and $157. |
Taxes Payable
Taxes Payable | 9 Months Ended |
Sep. 30, 2023 | |
Taxes Payable [Abstract] | |
TAXES PAYABLE | 7. TAXES PAYABLE Taxes payable at September 30, 2023 and December 31, 2022, was for sales tax and payroll tax payable of $22,962 and $8,392, respectively. |
Accrued Liabilities and Other P
Accrued Liabilities and Other Payables | 9 Months Ended |
Sep. 30, 2023 | |
Accrued Liabilities and Other Payables [Abstract] | |
ACCRUED LIABILITIES AND OTHER PAYABLES | 8. ACCRUED LIABILITIES AND OTHER PAYABLES Accrued liabilities and other payables consisted of the following September 30, 2023 and December 31, 2022: September 30, December 31, (unaudited) Accrued expenses $ 6,810 $ 6,756 Credit card payable 47,415 39,277 Customer deposit 2,309 45,612 Total $ 56,534 $ 91,645 |
Government Loans Payable
Government Loans Payable | 9 Months Ended |
Sep. 30, 2023 | |
Government Loans Payable [Abstract] | |
GOVERNMENT LOANS PAYABLE | 9. GOVERNMENT LOANS PAYABLE In May and June 2020, BEH, BEP and FDS received a total of $127,740 from the Paycheck Protection Program loan (“PPP loan”) from US Small Business Administration (“the SBA”). The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (at least 60% of the forgiven amount must have been used for payroll). The loan amount not forgiven, will have annual interest of 1%. Loan payments will be deferred to either (1) the date that SBA remits the borrower’s loan forgiveness amount to the lender or (2) if the borrower does not apply for loan forgiveness, 10 months after the end of the borrower’s loan forgiveness covered period. Loans issued prior to June 5, 2020 have a maturity of two years, loans issued after June 5, 2020 have a maturity of five years. No collateral or personal guarantees are required. A borrower may apply for loan forgiveness any time on or before the maturity date of the loan, including before the end of the Covered Period (either (1) the 24-week (168-day) period beginning on the PPP Loan Disbursement Date, or (2) if the Borrower received its PPP loan before June 5, 2020, the Borrower may elect to use an eight-week (56-day) Covered Period); provided such application for loan forgiveness is made within 10 months after the last day of the covered period, otherwise the loan is no longer deferred and the borrower must begin paying principal and interest. Subsequently, The U.S. Treasury and SBA announced a streamlined PPP forgiveness application for loans of $50,000 or less (unless those borrowers together with their affiliates received loans totaling $2 million or more). It requires fewer calculations and may call for less documentation. It does not require borrowers to reduce their loan forgiveness calculations if they have reduced full-time equivalent (“FTE”) or salaries. In addition, in February 2021, BEH, BEP and FDS received a total of $115,245 from the second round of PPP loan from the SBA. As of December 31, 2021, all BEH, BEP and FDS’ PPP loans’ forgiveness were approved, and the Company recorded $242,985 PPP loan forgiveness as other income in the year ended December 31, 2021. In May and June 2020, BEH, BEP and FDS received total of $215,600 from the Economic Injury Disaster Loan (“EIDL loan”) from the SBA after deducting $100 Uniform Commercial Code (“UCC”) handling charge and filing fee for each company. This is a low-interest federal disaster loan for working capital to small businesses and non-profit organizations of any size suffering substantial economic injury as a result of the Coronavirus (COVID-19), to help the businesses to meet financial obligations and operating expenses that could have been met had the disaster not occurred. This loan has interest of 3.75% and is not forgivable. The maturity of the loan is 30 years, installment payments including principal and interest of $515 monthly will begin 12 months from the date of the promissory note. On March 4, 2022, The FDS transferred its EIDL loan to BEC due to the dissolution of FDS. The SBA extended the deferment period to allow small businesses and not-for-profits that received EIDL funds do not have to begin payments on the loan until 30 months after the date of the note. Accordingly, the company began to make installment payments in the fourth quarter 2022. As of September 30, 2023, the future minimum EIDL loan payments to be paid by year are as follows: Year Ending Amount (unaudited) September 30, 2024 $ 4,727 September 30, 2025 4,907 September 30, 2026 5,094 September 30, 2027 5,289 September 30, 2028 5,491 Thereafter 186,504 Total $ 212,013 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 10. RELATED PARTY TRANSACTIONS Loans from Shareholder At September 30, 2023 and December 31, 2022, the Company had loans from one major shareholder (also the Company’s senior officer) for $908,646 and $2,543,155, respectively. At September 30, 2023 and December 31, 2022, the Company had loan from another major shareholder for $608,631 for settling the litigation. There are no written loan agreements for these loans. These loans are unsecured, non-interest bearing and have no fixed terms of repayment, and therefore, deemed payable on demand. Cash flows from loans from shareholder are classified as cash flows from financing activities. On May 31, 2023, the Board of Directors of Bio Essence Corp. (the “Company”), approved a debt-to-equity conversion. The Company and Ms. Yan (the Company’s Chief Executive Officer also the Company’s major shareholder) agreed to a debt conversion whereby Ms. Yan receives 5,000,000 shares of the Company’s common stock in exchange for retirement of the $2,500,000 debt. The Board of Directors of the Company executed the Consent Resolution on June 2, 2023. On June 2, 2023, the closing price of the Company’s common stocks trading on OTC Market was $0.51 per share. The Company incurred $50,000 loss from this conversion. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Taxes [Abstract] | |
INCOME TAXES | 11. INCOME TAXES The Company and its subsidiaries are subject to 21% federal corporate income tax in US. At September 30, 2023 and December, 2022, the Company had net operating loss (“NOL”) for income tax purposes; for federal income tax purposes, the NOL arising in tax years beginning after 2017 may only reduce 80% of a taxpayer’s taxable income, and may be carried forward indefinitely; for California income tax purposes, the entire NOL can be carried forward up to 20 years. However, the coronavirus Aid, Relief and Economic Security Act (“the CARES Act”) issued in March 2020, provides tax relief to both corporate and noncorporate taxpayers by adding a five-year carryback period and temporarily repealing the 80% limitation for NOLs arising in 2019, 2020 and 2021. The Company has NOL carry-forwards for Federal and California income tax purposes of $5.89 million and $5.27 million at September 30, 2023 and December 31, 2022, respectively. No tax benefit was reported with respect to these NOL carry-forwards in the accompanying consolidated financial statements because the Company believes the realization of the Company’s net deferred tax assets for the NOL for both federal and California State of approximately $1.67 million as of September 30, 2023, was not considered more likely than not and accordingly, the potential tax benefits of the net loss carry-forwards are fully offset by a full valuation allowance. Components of the Company’s deferred tax assets as of September 30, 2023 and December 31, 2022 are as follows: September 30, December 31, (unaudited) Net deferred tax assets: Bad debt expense $ 1,978 $ 1,978 Inventory impairment 697 697 Operating lease charge 12,688 14,020 Depreciation and amortization 7,561 237 Expected income tax benefit from NOL carry-forwards 1,647,250 1,467,801 Less: valuation allowance (1,670,174 ) (1,484,733 ) Deferred tax assets, net of valuation allowance $ - $ - Income Tax Provision in the Statements of Operations A reconciliation of the consolidated federal statutory income tax rate and the effective income tax rate as a percentage of income before income taxes for the nine months ended September 30, 2023 and 2022 is as follows: 2023 2022 (unaudited) (unaudited) Federal statutory income tax expense (benefit) rate (21.00 )% (21.00 )% State statutory income tax (benefit) rate, net of effect of state income tax deductible to federal income tax (4.77 )% (6.44 )% Change in valuation allowance 26.18 % 27.98 % Effective income tax rate 0.41 % 0.54 % A reconciliation of the consolidated federal statutory income tax rate and the effective income tax rate as a percentage of income before income taxes for the three months ended September 30, 2023 and 2022 is as follows: 2023 2022 (unaudited) (unaudited) Federal statutory income tax expense (benefit) rate (21.00 )% (21.00 )% State statutory income tax (benefit) rate, net of effect of state income tax deductible to federal income tax (6.98 )% (6.64 )% Change in valuation allowance 27.98 % 27.64 % Effective income tax rate 0.00 % 0.00 % The provision for income tax expense for the nine months ended September 30, 2023 and 2022 consisted of the following: 2023 2022 (unaudited) (unaudited) Income tax expense – current $ 3,200 $ 3,200 Income tax benefit – current - - Total income tax expense $ 3,200 $ 3,200 The provision for income tax expense for the three months ended September 30, 2023 and 2022 consisted of the following: 2023 2022 (unaudited) (unaudited) Income tax expense – current $ - $ - Income tax benefit – current - - Total income tax expense $ - $ - |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
LEASES | 12. LEASES Operating Leases Warehouse and office lease Effective October 1, 2018, the Company entered a 62.5 months lease for a facility including warehouse and office in the City of Irvine, California, with a security deposit of $41,841. The monthly rent is approximately $16,200 with a 3% increase each year. The lease provided an option to extend at lease maturity for another five-years, with six months prior written notice of lessee’s intention to extend the lease. The Company’s CEO is the guarantor of this lease. Lessor will have the right to proceed against guarantor following any breach or default by lessee without first proceeding against lessee and without previous notice to or demand upon either lessee or guarantor. At the commence of the lease, the Management intended to use the option to extend 3 more years in the lease term. Lately, the Management decided to let the lease expire without renew on September 30, 2023. The Company recorded approximately $61,844 gain at termination of the lease and the amount was included into other expenses. On May 18, 2023, the Company entered a 36 months lease for a facility including warehouse and office in the City of Irvine, California, with a security deposit of $50,000, effective on September 1, 2023. The monthly rent is approximately $47,100 with a 3% increase each year. The components of lease costs, lease term and discount rate with respect of warehouse and office lease with an initial term of more than 12 months are as follows: Nine Months Ended September 30, Nine Months Ended September 30, (unaudited) (unaudited) Operating lease cost $ 221,957 $ 159,844 Weighted Average Remaining Lease Term - Operating leases including options to renew 2.92 years 6.01 years Weighted Average Discount Rate - Operating leases 5 % 5 % Three Months Ended Three Months Ended (unaudited) (unaudited) Operating lease cost $ 101,808 $ 53,281 Weighted Average Discount Rate - Operating leases 5 % 5 % The following is a schedule, by years, of maturities of warehouse and office lease liabilities as of September 30, 2023: For the 12 months ending Operating (unaudited) September 30, 2024 $ 566,613 September 30, 2025 583,611 September 30, 2026 549,652 Thereafter - Total undiscounted cash flows 1,699,876 Less: imputed interest (148,756 ) Present value of lease liabilities $ 1,551,120 Equipment leases In 2017, the Company entered two leases for two copiers with terms of 60 and 63 months respectively, and monthly payments of $162 and $213, respectively. The Company also entered two leases for two forklifts with a term of 60 months for each, and the monthly payment was $292 and $669, respectively. All these equipment lease expired in 2022. The components of lease costs, lease term and discount rate with respect of these equipment leases are as follows: Nine Months Nine Months September 30, September 30, (unaudited) (unaudited) Operating lease cost $ 0.00 $ 5,714 Weighted Average Remaining Lease Term - Operating leases 0.00 years 0.14 years Weighted Average Discount Rate - Operating leases 5 % 5 % Three Months Ended Three Months Ended (unaudited) (unaudited) Operating lease cost $ 0.00 $ 488 Weighted Average Discount Rate - Operating leases 5 % 5 % Finance lease Effective March 15, 2022, the company entered two 39-months lease for two copiers with same vendor for a monthly payment of $234 and $214, respectively. Effective June 24, 2022, the company entered two leases for two forklifts with a term of 60 months for each, and the monthly payment was $383 and $451, respectively. At the lease expiration date, the Company has the option to purchase the copier for $1 each. The components of lease costs, lease term and discount rate with respect of the copier lease with an initial term of more than 12 months are as follows: Nine Months September 30, Nine Months Finance lease cost (unaudited) (unaudited) Amortization $ 9,687 $ 4,257 Interest on lease liabilities 1,793 920 Total finance lease cost $ 11,480 $ 5,177 Weighted Average Remaining Lease Term - Finance leases 3.29 4.23 Weighted Average Discount Rate – Finance leases 5 % 5 % Three Months September 30, Three Months Finance lease cost ( unaudited) (unaudited) Amortization $ 3,270 $ 3,110 Interest on lease liabilities 543 724 Total finance lease cost $ 3,813 $ 3,834 Weighted Average Discount Rate – Finance leases 5 % 5 % The following is a schedule, by years, of maturities of finance lease liabilities as of September 30, 2023: For the 12 months ending Finance (unaudited) September 30, 2024 $ 15,337 September 30, 2025 13,995 September 30, 2026 9,967 September 30, 2027 7,475 Total undiscounted cash flows 46,774 Less: imputed interest (3,776 ) Present value of finance lease liabilities $ 42,998 |
Loan Payables
Loan Payables | 9 Months Ended |
Sep. 30, 2023 | |
Loan Payables [Abstract] | |
LOAN PAYABLES | 13. LOAN PAYABLES In June 2021, the Company entered a loan agreement of $14,549 for purchasing a videojet with interest rate of 14.11% and a term of three-years. In September 2021, the Company entered another loan agreement of $39,218 for purchasing a spectrophotometer workstation with interest rate of 10.26% and a term of five-years. The Company recorded interest expense of $2,806 and $3,796 during the nine months ended September 30, 2023 and 2022, respectively. The Company recorded interest expense of $837 and $1,185 during the three months ended September 30, 2023 and 2022, respectively. The following is a schedule, by years, of maturities of loan payable as of September 30, 2023: For the 12 months ending Loan Payable (unaudited) September 30, 2024 $ 13,913 September 30, 2025 9,974 September 30, 2026 9,143 September 30, 2027 - Total undiscounted cash flows 33,030 Less: imputed interest (4,242 ) Present value of loan payables $ 28,788 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 14. SUBSEQUENT EVENTS The Company follows the guidance in FASB ASC 855-10 for the disclosure of subsequent events. The Company evaluated subsequent events through the date the financial statements were issued and determined the Company did not have any material subsequent event. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying consolidated financial statements (“CFS”) are prepared in conformity with U.S. Generally Accepted Accounting Principles (“US GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The functional currency of Bio Essence is U.S. dollars (“$’’). The accompanying financial statements are presented in U.S. dollars (“$”). The consolidated financial statements include the financial statements of the Company and its subsidiaries, BEP, BEH and McBE. All significant inter-company transactions and balances were eliminated in consolidation. The interim consolidated financial information as of September 30, 2023 and for the nine and three months ended September 30, 2023 and 2022 was prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures, which are normally included in CFS prepared in accordance with U.S. GAAP were not included. The interim consolidated financial information should be read in conjunction with the Financial Statements and the notes thereto, included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. In the opinion of management, all adjustments (which include all significant normal and recurring adjustments) necessary to present a fair statement of the Company’s consolidated financial position as of September 30, 2023, its consolidated results of operations and cash flows for the nine and three months ended September 30, 2023 and 2022, as applicable, were made. The results for the period ended September 30, 2023 are not necessarily indicative of the results to be expected for the entire fiscal year ending December 31, 2023 or for any future period. |
Reclassification | Reclassification Certain prior period accounts have been reclassified in conformity with current period’s presentation. These reclassifications had no impact on the reported results of operations and cash flows. |
Going Concern | Going Concern The Company incurred net losses of $778,192 and $596,548 for the nine months ended September 30, 2023 and 2022, respectively. The Company incurred net losses of $314,842 and $199,233 for the three months ended September 30, 2023 and 2022, respectively. The Company also had an accumulated deficit of $8,946,787 as of September 30, 2023. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company plans to increase its income by strengthening its sales force, providing attractive sales incentive program, and increasing marketing and promotion activities. Management also intends to raise additional funds by way of a private or public offering, or by obtaining loans from banks or others. While the Company believes in the viability of its strategy to generate sufficient revenue and in its ability to raise additional funds on reasonable terms and conditions, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business plan and generate sufficient revenue and its ability to raise additional funds by way of a public or private offering. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
Use of Estimates | Use of Estimates In preparing financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates, required by management, include the recoverability of long-lived assets, allowance for doubtful accounts, and the reserve for obsolete and slow-moving inventories. Actual results could differ from those estimates. |
Leases | Leases The Company follows ASC 842 and determines if an arrangement is a lease or contains a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, and operating lease liabilities (current and non-current) in the Company’s consolidated balance sheets. Finance leases are included in property and equipment, and finance lease liabilities (current and non-current) in the Company’s consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company generally uses the incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company elected the package of practical expedients permitted under the transition guidance to combine the lease and non-lease components as a single lease component for operating leases associated with the Company’s office space lease, and to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term. ROU assets are reviewed for impairment when indicators of impairment are present. ROU assets from operating and finance leases are subject to the impairment guidance in ASC 360, Property, Plant, and Equipment, as ROU assets are long-lived nonfinancial assets. The Company recognized no impairment of ROU assets as of September 30, 2023 and December 31, 2022. |
Cash and Equivalents | Cash and Equivalents For financial statement purposes, the Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. |
Accounts Receivable | Accounts Receivable The Company’s policy is to maintain an allowance for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. As of September 30, 2023 and December 31, 2022, the bad debt allowance was $2,252 and $2,252, respectively. |
Inventory | Inventory Inventories are stated at the lower of cost or net realizable value with cost determined on a weighted-average basis. Management compares the cost of inventories with the net realizable value and an allowance is made for writing down their inventories to net realizable value, if lower. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, less accumulated depreciation, and impairment losses, if any. Major repairs and betterments that significantly extend original useful lives or improve productivity are capitalized and depreciated over the period benefited. Maintenance and repairs are expensed as incurred. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation of property and equipment is provided using the straight-line method for substantially all assets as follows: Leasehold improvements 7-10 years Office furniture 5 years |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets, which include property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by comparing of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by it. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds its fair value (“FV”). FV is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. Based on its review, the Company believes that, as of September 30, 2023 and December 31, 2022, there was no significant impairments of its long-lived assets. |
Income Taxes | Income Taxes Income taxes are accounted for using an asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current period and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets also include the prior years’ net operating losses carried forward. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized. The Company follows ASC Topic 740, which prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740 also provides guidance on recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Under the provisions of ASC Topic 740, when tax returns are filed, it is likely that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits is classified as interest expense and penalties are classified in selling, general and administrative expenses in the statement of income. At September 30, 2023 and December 31, 2022, the Company did not take any uncertain positions that would necessitate recording a tax related liability. The Company files a U.S. income tax return. With few exceptions, the Company’s U.S. income tax return filed for the years ending on December 31, 2019 and thereafter are subject to examination by the relevant taxing authorities. |
Revenue Recognition | Revenue Recognition The Company recognizes revenues following the five-step model prescribed under ASC 606: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) we satisfy the performance obligation. Revenue is measured at the amount of consideration we expect to receive in exchange for the sale of our product, which occurs at a point in time, typically upon delivery to the customer. The Company expenses incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that it would have recognized is one year or less or the amount is immaterial. Revenues from sales of goods are measured at net of reserves established for applicable discounts and allowances that are offered within contracts with the Company’s customers, and are recognized when the goods are delivered to the customers. Product revenue reserves, which are classified as a reduction in product revenues, are generally characterized in the following categories: discounts, returns and rebates. These reserves are based on estimates of the amounts earned or to be claimed on the related sales and are classified as reductions of accounts receivable as the amount is payable to the Company’s customers. Revenues from manufacture services are recognized when the manufacture process is completed pursuant to the customers’ requirement and the manufactured goods were delivered to the customers. The Company’s return policy allows for the return of damaged or defective products and shipment errors. A notice of damage or wrong items should make within five days from receiving the goods, and actual return of the products must be completed within 30 days from the date of receiving the goods. Delayed notification for damaged or wrong products will not be accepted for return or exchange. Custom formulas and capsules are not returnable. The amount for return of products was immaterial for the nine and three months ended September 30, 2023 and 2022. |
Cost of Revenue | Cost of Revenue Cost of goods sold (“COGS”) consists primarily of finished goods purchased from other manufacturers, material costs, labor costs and related overhead that are directly attributable to the production of the products. Write-down of inventory to lower of cost or net realizable value is also recorded in COGS. Cost of manufacture service consists primarily of direct labor costs and related overhead that are directly attributable to the manufacture process. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs related to delivery of finished goods are included in selling expenses. During the nine months ended September 30, 2023 and 2022, shipping and handling costs were $32,596 and $27,382, respectively. During the three months ended September 30, 2023 and 2022, shipping and handling costs were $12,638 and $ 7,629, respectively. |
Advertising | Advertising Advertising expenses consist primarily of costs of promotion and marketing for the Company’s image and products, and costs of direct advertising, and are included in selling expenses. The Company expenses all advertising costs as incurred. During the nine months ended September 30, 2023 and 2022, advertising expenses were $63,912 and $41,476, respectively. During the three months ended September 30, 2023 and 2022, advertising expenses were $10,778 and $12,736, respectively. |
Fair Value (“FV”) of Financial Instruments | Fair Value (“FV”) of Financial Instruments Certain of the Company’s financial instruments, including cash and equivalents, accrued liabilities and accounts payable, carrying amounts approximate their FV due to their short maturities. FASB ASC Topic 825, “Financial Instruments,” requires disclosure of the FV of financial instruments held by the Company. The carrying amounts reported in the balance sheets for current liabilities each qualify as financial instruments and are a reasonable estimate of their FV because of the short period of time between the origination of such instruments and their expected realization and the current market rate of interest. |
Fair Value Measurements and Disclosures | Fair Value Measurements and Disclosures ASC Topic 820, “Fair Value Measurements and Disclosures,” defines FV, and establishes a three-level valuation hierarchy for disclosures of FV measurement that enhances disclosure requirements for FV 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 asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 inputs to the valuation methodology are unobservable and significant to the FV measurement. As of September 30, 2023 and December 31, 2022, the Company did not identify any assets and liabilities that are required to be presented on the balance sheet at FV. The carrying value of cash, accounts receivable, prepaid expenses, advances to suppliers, accounts payable, taxes payable, other payables and accrued liabilities approximate estimated fair values because of their short maturities. |
Share-based Compensation | Share-based Compensation The Company accounts for share-based compensation awards in accordance with ASC 718, “Compensation – Stock Compensation”. The cost of services received from employees and non-employees in exchange for awards of equity instruments is recognized in the consolidated statement of operations based on the estimated fair value of those awards on the grant date and amortized on a straight-line basis over the requisite service period or vesting period. The Company records forfeitures as they occur. |
Earnings (Loss) per Share (EPS) | Earnings (Loss) per Share (EPS) Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS is computed similar to basic net income per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if all the potential common shares pertaining to warrants, stock options, and similar instruments had been issued and if the additional common shares were dilutive. Diluted EPS are based on the assumption that all dilutive convertible shares and stock options and warrants were converted or exercised. Dilution is computed by applying the treasury stock method for the outstanding unvested restricted stock, options and warrants, and the if-converted method for the outstanding convertible instruments. Under the treasury stock method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later) and as if funds obtained thereby were used to purchase common stock at the average market price during the period. Under the if-converted method, outstanding convertible instruments are assumed to be converted into common stock at the beginning of the period (or at the time of issuance, if later). There were no potentially dilutive securities outstanding (options and warrants) for the nine and three months ended September 30, 2023 and 2022. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to credit risk consist primarily of accounts and other receivables. The Company does not require collateral or other security to support these receivables. The Company conducts periodic reviews of the financial condition and payment practices of its customers to minimize collection risk on accounts receivable. For the nine months ended September 30, 2023, one major customer accounted for 22% of the Company’s total sales. For the nine months ended September 30, 2022, the company had two major customers accounted for 12% and 12%, respectively, of the Company’s total sales. For the three months ended September 30, 2023 and 2022, no customers accounted for more than 10% of the Company’s total sales. The Company had four major vendors accounted for 29%, 15%, 12% and 10%, respectively, of total purchases during the nine months ended September 30, 2023. The Company had four major vendors accounted for 17%, 14% and 14%, and 12%, respectively, of total purchases during the nine months ended September 30, 2022. The Company had four major vendors accounted for 23%, 15%, 14%, 14%, respectively, of total purchases during the three months ended September 30, 2023. The Company had two major vendors accounted for 65% and 13%, respectively, of total purchases during the three months ended September 30, 2022. |
Segment Reporting | Segment Reporting ASC Topic 280, “Segment Reporting,” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s chief operating decision maker organizes segments within the Company for making operating decisions assessing performance and allocating resources. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. Management determined the Company’s operations constitute a single reportable segment in accordance with ASC 280. The Company operates exclusively in one business and industry segment: manufacture and sale of health supplement products. |
New Accounting Pronouncements | New Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. ASU 2016-13 replaces the probable, incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost basis. Am entity should apply ASU 2016-13 on a modified-retrospective transition approach that would require a cumulative-effect adjustment to the opening retained earnings in the balance sheets as of the date of adoption. In March 2022, the FASB issued ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, which eliminates the accounting guidance for trouble debt restructurings by creditors and enhances the disclosure requirements for modifications of loans to borrowers experiencing financial difficulty. Additionally, ASU 2022-02 requires disclosure of gross write-offs by year of origination for receivables within the scope of Subtopic 326-20, Financial Instruments - Credit Losses - Measured at Amortized Cost, which should be applied prospectively. Both ASU 2016-13 and ASU 2022-02 are effective for smaller reporting companies for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company adopted ASU 2016-13 and ASU 2022-02 beginning January 1, 2023. The adoption of ASU 2016-13 and ASU 2022-02 did not have any impact on the Company’s consolidated financial statement presentation or disclosures. In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470- 20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. This ASU (1) simplifies the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in ASC 470-20, Debt: Debt with Conversion and Other Options, that requires entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock; (2) revises the scope exception from derivative accounting in ASC 815-40 for freestanding financial instruments and embedded features that are both indexed to the issuer’s own stock and classified in stockholders’ equity, by removing certain criteria required for equity classification; and (3) revises the guidance in ASC 260, Earnings Per Share, to require entities to calculate diluted earnings per share (EPS) for convertible instruments by using the if-converted method. In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares. For SEC filers, excluding smaller reporting companies, ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. For all other entities, ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Entities should adopt the guidance as of the beginning of the fiscal year of adoption and cannot adopt the guidance in an interim reporting period. The Company is currently evaluating the impact that ASU 2020-06 may have on its consolidated financial statement presentation and related disclosures. In March 2023, the FASB issued ASU 2023-01, Lease (Topic 842): Common Control Arrangements, which clarifies the accounting for leasehold improvements associated with leases between entities under common control (hereinafter referred to as common control lease). ASU 2023-01 requires entities to amortize leasehold improvements associated with common control lease over the useful life to the common control group (regardless of the lease term) as long as the lessee controls the use of the underlying asset through a lease, and to account for any remaining leasehold improvements as a transfer between entities under common control through an adjustment to equity when the lessee no longer controls the underlying asset. This ASU will be effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been made available for issuance. An entity may apply ASU 2023-01 either prospectively or retrospectively. The Company is currently evaluating the impact that the adoption of ASU 2023-01 will have on its consolidated financial statement presentation and disclosures. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Depreciation of Property and Equipment | Depreciation of property and equipment is provided using the straight-line method for substantially all assets as follows: Leasehold improvements 7-10 years Office furniture 5 years |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventory [Abstract] | |
Schedule of Inventory | Inventory consisted of the following at September 30, 2023 and December 31, 2022: September 30, December 31, (unaudited) Raw materials $ 6,283 $ 60,705 Finished goods – health supplements 145,127 146,576 Less: inventory impairment allowance (26,134 ) (26,118 ) Total $ 125,276 $ 181,163 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property and Equipment, Net [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following at September 30, 2023 and December 31, 2022: September 30, December 31, (unaudited) Leasehold improvements $ 13,327 $ 57,067 Office furniture and equipment 394,399 406,241 Total 407,726 463,308 Less: accumulated depreciation (229,612 ) (216,929 ) Net $ 178,114 $ 246,379 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Intangible Assets, Net [Abstract] | |
Schedule of Intangible Assets | Intangible assets consisted of the following as of September 30, 2023 and December 31, 2022: September 30, December 31, (unaudited) Computer Software $ 36,928 $ 36,928 Trademark 2,350 2,350 Total 39,278 39,278 Less: accumulated amortization (38,652 ) (38,476 ) Net $ 626 $ 802 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Payables (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accrued Liabilities and Other Payables [Abstract] | |
Schedule of Accrued Liabilities and Other Payables | Accrued liabilities and other payables consisted of the following September 30, 2023 and December 31, 2022: September 30, December 31, (unaudited) Accrued expenses $ 6,810 $ 6,756 Credit card payable 47,415 39,277 Customer deposit 2,309 45,612 Total $ 56,534 $ 91,645 |
Government Loans Payable (Table
Government Loans Payable (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Government Loans Payable [Abstract] | |
Schedule of Future Minimum Loan Payments | As of September 30, 2023, the future minimum EIDL loan payments to be paid by year are as follows: Year Ending Amount (unaudited) September 30, 2024 $ 4,727 September 30, 2025 4,907 September 30, 2026 5,094 September 30, 2027 5,289 September 30, 2028 5,491 Thereafter 186,504 Total $ 212,013 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Income Taxes [Abstract] | |
Schedule of Deferred Tax Assets | Components of the Company’s deferred tax assets as of September 30, 2023 and December 31, 2022 are as follows: September 30, December 31, (unaudited) Net deferred tax assets: Bad debt expense $ 1,978 $ 1,978 Inventory impairment 697 697 Operating lease charge 12,688 14,020 Depreciation and amortization 7,561 237 Expected income tax benefit from NOL carry-forwards 1,647,250 1,467,801 Less: valuation allowance (1,670,174 ) (1,484,733 ) Deferred tax assets, net of valuation allowance $ - $ - |
Schedule of Federal Statutory Income Tax Rate and the Effective Income Tax | A reconciliation of the consolidated federal statutory income tax rate and the effective income tax rate as a percentage of income before income taxes for the nine months ended September 30, 2023 and 2022 is as follows: 2023 2022 (unaudited) (unaudited) Federal statutory income tax expense (benefit) rate (21.00 )% (21.00 )% State statutory income tax (benefit) rate, net of effect of state income tax deductible to federal income tax (4.77 )% (6.44 )% Change in valuation allowance 26.18 % 27.98 % Effective income tax rate 0.41 % 0.54 % A reconciliation of the consolidated federal statutory income tax rate and the effective income tax rate as a percentage of income before income taxes for the three months ended September 30, 2023 and 2022 is as follows: 2023 2022 (unaudited) (unaudited) Federal statutory income tax expense (benefit) rate (21.00 )% (21.00 )% State statutory income tax (benefit) rate, net of effect of state income tax deductible to federal income tax (6.98 )% (6.64 )% Change in valuation allowance 27.98 % 27.64 % Effective income tax rate 0.00 % 0.00 % |
Schedule of Income Tax Expense | The provision for income tax expense for the nine months ended September 30, 2023 and 2022 consisted of the following: 2023 2022 (unaudited) (unaudited) Income tax expense – current $ 3,200 $ 3,200 Income tax benefit – current - - Total income tax expense $ 3,200 $ 3,200 The provision for income tax expense for the three months ended September 30, 2023 and 2022 consisted of the following: 2023 2022 (unaudited) (unaudited) Income tax expense – current $ - $ - Income tax benefit – current - - Total income tax expense $ - $ - |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of Lease Costs, Lease Term and Discount Rate | The components of lease costs, lease term and discount rate with respect of warehouse and office lease with an initial term of more than 12 months are as follows: Nine Months Ended September 30, Nine Months Ended September 30, (unaudited) (unaudited) Operating lease cost $ 221,957 $ 159,844 Weighted Average Remaining Lease Term - Operating leases including options to renew 2.92 years 6.01 years Weighted Average Discount Rate - Operating leases 5 % 5 % Three Months Ended Three Months Ended (unaudited) (unaudited) Operating lease cost $ 101,808 $ 53,281 Weighted Average Discount Rate - Operating leases 5 % 5 % Nine Months Nine Months September 30, September 30, (unaudited) (unaudited) Operating lease cost $ 0.00 $ 5,714 Weighted Average Remaining Lease Term - Operating leases 0.00 years 0.14 years Weighted Average Discount Rate - Operating leases 5 % 5 % Three Months Ended Three Months Ended (unaudited) (unaudited) Operating lease cost $ 0.00 $ 488 Weighted Average Discount Rate - Operating leases 5 % 5 % |
Schedule of Lease Liabilities | The following is a schedule, by years, of maturities of warehouse and office lease liabilities as of September 30, 2023: For the 12 months ending Operating (unaudited) September 30, 2024 $ 566,613 September 30, 2025 583,611 September 30, 2026 549,652 Thereafter - Total undiscounted cash flows 1,699,876 Less: imputed interest (148,756 ) Present value of lease liabilities $ 1,551,120 |
Schedule of Lease Cost | The components of lease costs, lease term and discount rate with respect of the copier lease with an initial term of more than 12 months are as follows: Nine Months September 30, Nine Months Finance lease cost (unaudited) (unaudited) Amortization $ 9,687 $ 4,257 Interest on lease liabilities 1,793 920 Total finance lease cost $ 11,480 $ 5,177 Weighted Average Remaining Lease Term - Finance leases 3.29 4.23 Weighted Average Discount Rate – Finance leases 5 % 5 % Three Months September 30, Three Months Finance lease cost ( unaudited) (unaudited) Amortization $ 3,270 $ 3,110 Interest on lease liabilities 543 724 Total finance lease cost $ 3,813 $ 3,834 Weighted Average Discount Rate – Finance leases 5 % 5 % |
Schedule of Maturities of Finance lease Liabilities | The following is a schedule, by years, of maturities of finance lease liabilities as of September 30, 2023: For the 12 months ending Finance (unaudited) September 30, 2024 $ 15,337 September 30, 2025 13,995 September 30, 2026 9,967 September 30, 2027 7,475 Total undiscounted cash flows 46,774 Less: imputed interest (3,776 ) Present value of finance lease liabilities $ 42,998 |
Loan Payables (Tables)
Loan Payables (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Loan Payables [Abstract] | |
Schedule of Maturities of Loan Payable | The following is a schedule, by years, of maturities of loan payable as of September 30, 2023: For the 12 months ending Loan Payable (unaudited) September 30, 2024 $ 13,913 September 30, 2025 9,974 September 30, 2026 9,143 September 30, 2027 - Total undiscounted cash flows 33,030 Less: imputed interest (4,242 ) Present value of loan payables $ 28,788 |
Organization and Description _2
Organization and Description of Business (Details) | Mar. 01, 2017 |
Ownership [Member] | |
Organization and Description of Business [Line Items] | |
Shareholder, ownership percentage | 100% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Accounting Policies [Line Items] | |||||||||
Net income loss (in Dollars) | $ (314,842) | $ (284,515) | $ (178,836) | $ (199,233) | $ (164,193) | $ (233,120) | $ (778,192) | $ (596,548) | |
Accumulated deficit (in Dollars) | (8,946,787) | (8,946,787) | $ (8,168,595) | ||||||
Bad debt allowance (in Dollars) | 2,252 | $ 2,252 | $ 2,252 | ||||||
Tax benefit percentage | 50% | ||||||||
Selling expenses (in Dollars) | 23,416 | 20,365 | $ 96,509 | 68,858 | |||||
Advertising expense (in Dollars) | 10,778 | 12,736 | 63,912 | 41,476 | |||||
Shipping and Handling [Member] | |||||||||
Accounting Policies [Line Items] | |||||||||
Selling expenses (in Dollars) | $ 12,638 | $ 7,629 | $ 32,596 | $ 27,382 | |||||
Sales [Member] | Credit Concentration Risk [Member] | One Major Customer [Member] | |||||||||
Accounting Policies [Line Items] | |||||||||
Concentration risk, percentage | 22% | 12% | |||||||
Sales [Member] | Credit Concentration Risk [Member] | Two Major Customer [Member] | |||||||||
Accounting Policies [Line Items] | |||||||||
Concentration risk, percentage | 12% | ||||||||
Sales [Member] | Credit Concentration Risk [Member] | Customer [Member] | |||||||||
Accounting Policies [Line Items] | |||||||||
Concentration risk, percentage | 10% | 10% | |||||||
Purchase [Member] | Credit Concentration Risk [Member] | One Vendor [Member] | |||||||||
Accounting Policies [Line Items] | |||||||||
Concentration risk, percentage | 23% | 65% | 29% | 17% | |||||
Purchase [Member] | Credit Concentration Risk [Member] | Two Vendor [Member] | |||||||||
Accounting Policies [Line Items] | |||||||||
Concentration risk, percentage | 15% | 13% | 15% | 14% | |||||
Purchase [Member] | Credit Concentration Risk [Member] | Three Vendor [Member] | |||||||||
Accounting Policies [Line Items] | |||||||||
Concentration risk, percentage | 14% | 12% | 14% | ||||||
Purchase [Member] | Credit Concentration Risk [Member] | Four Vendor [Member] | |||||||||
Accounting Policies [Line Items] | |||||||||
Concentration risk, percentage | 14% | 10% | 12% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of Depreciation of Property and Equipment | Sep. 30, 2023 |
Leasehold Improvements [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 7 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 10 years |
Office Furniture [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Inventory (Details) - Schedule
Inventory (Details) - Schedule of Inventory - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Inventory [Abstract] | ||
Raw materials | $ 6,283 | $ 60,705 |
Finished goods – health supplements | 145,127 | 146,576 |
Less: inventory impairment allowance | (26,134) | (26,118) |
Total | $ 125,276 | $ 181,163 |
Security Deposit (Details)
Security Deposit (Details) - USD ($) | Sep. 30, 2023 | Sep. 01, 2023 | Dec. 31, 2022 |
Security Deposit [Abstract] | |||
Security deposit | $ 91,841 | $ 41,841 | |
Deposit new lease | $ 50,000 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation | $ 16,289 | $ 15,232 | $ 48,822 | $ 37,492 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details) - Schedule of Property and Equipment - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, total | $ 407,726 | $ 463,308 |
Less: accumulated depreciation | (229,612) | (216,929) |
Property and equipment, net | 178,114 | 246,379 |
Leaseholder improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, total | 13,327 | 57,067 |
Office furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, total | $ 394,399 | $ 406,241 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Intangible Assets, Net [Line Items] | ||||
Amortization of intangible of assets | $ 59 | $ 59 | $ 176 | $ 176 |
Intangible assets useful life | 5 years | |||
Amortization expense, year 1 | 235 | $ 235 | ||
Amortization expense, year 2 | 235 | 235 | ||
Amortization expense, year 3 | $ 157 | $ 157 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of Intangible Assets - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, total | $ 39,278 | $ 39,278 |
Less: accumulated amortization | (38,652) | (38,476) |
Intangible assets, net | 626 | 802 |
Computer Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, total | 36,928 | 36,928 |
Trademark [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, total | $ 2,350 | $ 2,350 |
Taxes Payable (Details)
Taxes Payable (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Tax Payable [Line Items] | ||
Sales tax and payroll tax payable | $ 22,962 | $ 8,392 |
Accrued Liabilities and Other_3
Accrued Liabilities and Other Payables (Details) - Schedule of Accrued Liabilities and Other Payables - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Accrued Liabilities and Other Payables [Abstract] | ||
Accrued expenses | $ 6,810 | $ 6,756 |
Credit card payable | 47,415 | 39,277 |
Customer deposit | 2,309 | 45,612 |
Total | $ 56,534 | $ 91,645 |
Government Loans Payable (Detai
Government Loans Payable (Details) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Feb. 28, 2021 | Sep. 30, 2023 | Dec. 31, 2021 | Jun. 30, 2020 | May 31, 2020 | |
Government Loans Payable [Line Items] | |||||
Affiliates received loans | $ 2,000,000 | ||||
Other income | $ 242,985 | ||||
Handling charge and filing fee | $ 100 | ||||
Maturity of the loan | 30 years | ||||
PPP Loan [Member] | |||||
Government Loans Payable [Line Items] | |||||
Loan amount | $ 127,740 | $ 127,740 | |||
Percentage of forgiven amount | 60% | ||||
Annual interest, percentage | 1% | ||||
Received loan | $ 115,245 | ||||
PPP forgiveness [Member] | |||||
Government Loans Payable [Line Items] | |||||
Loan amount | $ 50,000 | ||||
Economic Injury Disaster Loan [Member] | |||||
Government Loans Payable [Line Items] | |||||
Loan amount | $ 215,600 | $ 215,600 | |||
Government Loans Payable [Member] | |||||
Government Loans Payable [Line Items] | |||||
Loan interest rate | 3.75% | ||||
Installment payments including principal and interest | $ 515 |
Government Loans Payable (Det_2
Government Loans Payable (Details) - Schedule of Future Minimum Loan Payments - Government Loans Payable [Member] | Sep. 30, 2023 USD ($) |
Government Loans Payable (Details) - Schedule of Future Minimum Loan Payments [Line Items] | |
September 30, 2024 | $ 4,727 |
September 30, 2025 | 4,907 |
September 30, 2026 | 5,094 |
September 30, 2027 | 5,289 |
September 30, 2028 | 5,491 |
Thereafter | 186,504 |
Total | $ 212,013 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 9 Months Ended | ||
Jun. 02, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Related Party Transactions [Line Items] | |||
Trading market price (in Dollars per share) | $ 0.51 | ||
Incurred loss | $ 50,000 | ||
Settled Litigation [Member] | |||
Related Party Transactions [Line Items] | |||
Loan from shareholder | 608,631 | $ 608,631 | |
Senior Officer [Member] | |||
Related Party Transactions [Line Items] | |||
Loan from shareholder | $ 908,646 | $ 2,543,155 | |
Ms. Yan [Member] | |||
Related Party Transactions [Line Items] | |||
Debt conversion shares (in Shares) | 5,000,000 | ||
Exchange for retirement debt | $ 2,500,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes [Abstract] | ||||||||
Federal corporate income tax | 21% | 21% | 21% | 21% | ||||
Taxpayer’s taxable income | 80% | 80% | ||||||
Income tax purpose | 80% | 80% | 80% | |||||
NOL carryforwards (in Dollars) | $ 5,890 | $ 5,890 | $ 5,270 | |||||
Net deferred tax assets NOL (in Dollars) | $ 1,670 | $ 1,670 |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of Deferred Tax Assets - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Net deferred tax assets: | ||
Bad debt expense | $ 1,978 | $ 1,978 |
Inventory impairment | 697 | 697 |
Operating lease charge | 12,688 | 14,020 |
Depreciation and amortization | 7,561 | 237 |
Expected income tax benefit from NOL carry-forwards | 1,647,250 | 1,467,801 |
Less: valuation allowance | (1,670,174) | (1,484,733) |
Deferred tax assets, net of valuation allowance |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of Federal Statutory Income Tax Rate and the Effective Income Tax | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of Federal Statutory Income Tax Rate and the Effective Income Tax [Abstract] | ||||
Federal statutory income tax expense (benefit) rate | (21.00%) | (21.00%) | (21.00%) | (21.00%) |
State statutory income tax (benefit) rate, net of effect of state income tax deductible to federal income tax | (6.98%) | (6.64%) | (4.77%) | (6.44%) |
Change in valuation allowance | 27.98% | 27.64% | 26.18% | 27.98% |
Effective income tax rate | 0% | 0% | 0.41% | 0.54% |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of Income Tax Expense - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of Income Tax Expense [Abstract] | ||||
Income tax expense – current | $ 3,200 | $ 3,200 | ||
Income tax benefit – current | ||||
Total income tax expense | $ 3,200 | $ 3,200 |
Leases (Details)
Leases (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |||||
Mar. 15, 2022 | Oct. 01, 2018 | Jun. 24, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | May 18, 2023 | Dec. 31, 2022 | |
Leases [Line Items] | |||||||
Operating lease term | 62 months 15 days | 3 years | 36 months | ||||
Security deposit | $ 91,841 | $ 41,841 | |||||
Monthly rent | $ 16,200 | $ 47,100 | |||||
Rent percentage | 3% | 3% | |||||
Gain at termination of lease | $ 61,844 | ||||||
Lease option | $ 1 | ||||||
Warehouse and Office [Member] | |||||||
Leases [Line Items] | |||||||
Security deposit | $ 41,841 | $ 50,000 | |||||
Copiers One [Member] | |||||||
Leases [Line Items] | |||||||
Operating lease term | 60 months | ||||||
Monthly payments of operating lease | $ 162 | ||||||
Finance lease term | 39 months | ||||||
Monthly payments of finance lease | $ 234 | ||||||
Copiers Two [Member] | |||||||
Leases [Line Items] | |||||||
Operating lease term | 63 months | ||||||
Monthly payments of operating lease | $ 213 | ||||||
Finance lease term | 39 months | ||||||
Monthly payments of finance lease | $ 214 | ||||||
Forklifts One [Member] | |||||||
Leases [Line Items] | |||||||
Operating lease term | 60 months | ||||||
Monthly payments of operating lease | $ 292 | ||||||
Finance lease term | 60 months | ||||||
Monthly payments of finance lease | $ 383 | ||||||
Forklifts Two [Member] | |||||||
Leases [Line Items] | |||||||
Operating lease term | 60 months | ||||||
Monthly payments of operating lease | $ 669 | ||||||
Finance lease term | 60 months | ||||||
Monthly payments of finance lease | $ 451 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of Lease Costs, Lease Term and Discount Rate - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Warehouse and Office Lease [Member] | ||||
Leases (Details) - Schedule of Lease Costs, Lease Term and Discount Rate [Line Items] | ||||
Operating lease cost | $ 101,808 | $ 53,281 | $ 221,957 | $ 159,844 |
Weighted Average Remaining Lease Term - Operating leases including options to renew | 2 years 11 months 1 day | 6 years 3 days | 2 years 11 months 1 day | 6 years 3 days |
Weighted Average Discount Rate - Operating leases | 5% | 5% | 5% | 5% |
Equipment Leases [Member] | ||||
Leases (Details) - Schedule of Lease Costs, Lease Term and Discount Rate [Line Items] | ||||
Operating lease cost | $ 0 | $ 488 | $ 0 | $ 5,714 |
Weighted Average Remaining Lease Term - Operating leases including options to renew | 0 years | 1 month 20 days | 0 years | 1 month 20 days |
Weighted Average Discount Rate - Operating leases | 5% | 5% | 5% | 5% |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of Lease Liabilities | Sep. 30, 2023 USD ($) |
Schedule of Lease Liabilities [Abstract] | |
September 30, 2024 | $ 566,613 |
September 30, 2025 | 583,611 |
September 30, 2026 | 549,652 |
Thereafter | |
Total undiscounted cash flows | 1,699,876 |
Less: imputed interest | (148,756) |
Present value of lease liabilities | $ 1,551,120 |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of Lease Cost - Copier Lease [Member] - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Leases (Details) - Schedule of Lease Cost [Line Items] | ||||
Amortization | $ 3,270 | $ 3,110 | $ 9,687 | $ 4,257 |
Interest on lease liabilities | 543 | 724 | 1,793 | 920 |
Total finance lease cost | $ 3,813 | $ 3,834 | $ 11,480 | $ 5,177 |
Weighted Average Remaining Lease Term - Finance leases | 3 years 3 months 14 days | 4 years 2 months 23 days | 3 years 3 months 14 days | 4 years 2 months 23 days |
Weighted Average Discount Rate – Finance leases | 5% | 5% | 5% | 5% |
Leases (Details) - Schedule o_4
Leases (Details) - Schedule of Maturities of Finance lease Liabilities | Sep. 30, 2023 USD ($) |
Schedule of Maturities of Finance lease Liabilities [Abstract] | |
September 30, 2024 | $ 15,337 |
September 30, 2025 | 13,995 |
September 30, 2026 | 9,967 |
September 30, 2027 | 7,475 |
Total undiscounted cash flows | 46,774 |
Less: imputed interest | (3,776) |
Present value of finance lease liabilities | $ 42,998 |
Loan Payables (Details)
Loan Payables (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | |
Loan Payables [Line Items] | ||||||
Interest rate | 10.26% | 14.11% | ||||
Interest expense | $ 837 | $ 1,185 | $ 2,806 | $ 3,796 | ||
Videojet [Member] | ||||||
Loan Payables [Line Items] | ||||||
Loan amount | $ 14,549 | |||||
Spectrophotometer [Member] | ||||||
Loan Payables [Line Items] | ||||||
Loan amount | $ 39,218 |
Loan Payables (Details) - Sched
Loan Payables (Details) - Schedule of Maturities of Loan Payable - Loans Payable [Member] | Sep. 30, 2023 USD ($) |
Schedule of Maturities of Loan Payable [Abstract] | |
September 30, 2024 | $ 13,913 |
September 30, 2025 | 9,974 |
September 30, 2026 | 9,143 |
September 30, 2027 | |
Total undiscounted cash flows | 33,030 |
Less: imputed interest | (4,242) |
Present value of loan payables | $ 28,788 |