Cover
Cover - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | ||||
Document Type | 10-K | |||
Amendment Flag | false | |||
Document Annual Report | true | |||
Document Transition Report | false | |||
Document Period End Date | Dec. 31, 2021 | |||
Document Fiscal Period Focus | FY | |||
Document Fiscal Year Focus | 2021 | |||
Current Fiscal Year End Date | --12-31 | |||
Entity File Number | 000-55999 | |||
Entity Registrant Name | LUDUSON G InC. | |||
Entity Central Index Key | 0001737193 | |||
Entity Tax Identification Number | 82-3184409 | |||
Entity Incorporation, State or Country Code | DE | |||
Entity Address, Address Line One | 17/F | |||
Entity Address, Address Line Two | 80 Gloucester Road | |||
Entity Address, City or Town | Wanchai | |||
Entity Address, State or Province | DE | |||
Entity Address, Postal Zip Code | 00000 | |||
City Area Code | 852 | |||
Local Phone Number | 2818 7199 | |||
Title of 12(b) Security | Common Stock, $0.0001 par value | |||
Trading Symbol | LDSN | |||
Entity Well-known Seasoned Issuer | No | |||
Entity Voluntary Filers | No | |||
Entity Current Reporting Status | Yes | |||
Entity Interactive Data Current | No | |||
Entity Filer Category | Non-accelerated Filer | |||
Entity Small Business | true | |||
Entity Emerging Growth Company | false | |||
Entity Shell Company | false | |||
Entity Public Float | $ 76,125,000 | |||
Entity Common Stock, Shares Outstanding | 28,210,000 | |||
Auditor Firm ID | 6743 | 6268 | ||
Auditor Name | J&S Associate | TOTAL ASIA ASSOCIATES PLT | ||
Auditor Location | Kuala Lumpur, Malaysia | Kuala Lumpur, Malaysia |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Current asset: | ||
Cash and cash equivalents | $ 290 | $ 40,447 |
Accounts receivable, net | 129,150 | 4,499,746 |
Debt discount | 700,000 | 0 |
Deposits, prepayments and other receivables | 827,971 | 665,052 |
Total current assets | 1,657,411 | 5,205,245 |
Non-current asset: | ||
Plant and equipment | 262,677 | 422,414 |
TOTAL ASSETS | 1,920,088 | 5,627,659 |
Current liabilities: | ||
Accounts payable | 0 | 3,251 |
Accrued liabilities and other payables | 104,577 | 23,521 |
Amount due to a director | 13,730 | 28,290 |
Tax payable | 830,200 | 743,562 |
Total current liabilities | 948,507 | 798,624 |
TOTAL LIABILITIES | 948,507 | 798,624 |
Commitments and contingencies | 0 | 0 |
SHAREHOLDERS’ EQUITY | ||
Preferred stock, $0.0001 par value, 20,000,000 shares authorized, no shares issued and outstanding at December 31, 2021 and 2020, respectively | 0 | 0 |
Common stock, $0.0001 par value, 100,000,000 shares authorized, 28,210,000 and 28,110,000 shares issued and outstanding at December 31, 2021 and 2020, respectively | 2,821 | 2,811 |
Additional paid-in capital | 1,032,179 | 332,189 |
Accumulated other comprehensive (loss) income | (12,292) | 10,573 |
(Accumulated deficit) Retained earnings | (51,127) | 4,483,462 |
Shareholders’ equity | 971,581 | 4,829,035 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 1,920,088 | $ 5,627,659 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 28,210,000 | 28,110,000 |
Common stock, shares outstanding | 28,210,000 | 28,110,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||
Revenue, net | $ 1,001,438 | $ 5,935,720 |
Cost of revenue | (230,840) | (1,027,662) |
Gross profit | 770,598 | 4,908,058 |
Operating expenses: | ||
General and administrative expenses | (236,198) | (334,097) |
Stock-based compensation | 0 | (325,000) |
Allowance for doubtful accounts | (4,977,996) | 0 |
Total operating expenses | (5,214,194) | (659,097) |
(Loss) income from operation | (4,443,596) | 4,248,961 |
Other (expenses) income: | ||
Interest income | 0 | 40 |
Interest expenses | 0 | (1,938) |
Total other expenses | 0 | (1,898) |
(LOSS) INCOME BEFORE INCOME TAXES | (4,443,596) | 4,247,063 |
Income tax expense | (90,993) | (602,877) |
NET (LOSS) INCOME | (4,534,589) | 3,644,186 |
Other comprehensive (loss) income: | ||
Foreign currency translation (loss) gain | (22,865) | 5,138 |
COMPREHENSIVE (LOSS) INCOME | $ (4,557,454) | $ 3,649,324 |
Net (loss) income per share: | ||
Basic and diluted | $ (0.16) | $ 0.18 |
Weighted average shares outstanding | ||
Basic and diluted | 28,141,233 | 20,332,350 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (4,534,589) | $ 3,644,186 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities | ||
Depreciation of plant and equipment | 157,487 | 48,889 |
Allowance for doubtful accounts | 4,977,996 | 0 |
Share-based compensation for services | 0 | 325,000 |
Non-cash lease expense | 0 | 35,600 |
Change in operating assets and liabilities: | ||
Accounts receivable | (607,400) | (3,739,013) |
Deposits, prepayments and other receivables | (162,919) | (523,050) |
Accounts payable | 0 | 3,251 |
Accrued expenses and other payables | 77,805 | 22,232 |
Lease liabilities | 0 | 2,051 |
Tax payable | 86,638 | 603,758 |
Net cash (used in) provided by operating activities | (4,982) | 422,904 |
Cash flows from investing activities: | ||
Purchases of plant and equipment | 0 | (462,109) |
Net cash used in investing activities | 0 | (462,109) |
Cash flows from financing activities: | ||
(Advance to) repayment from a director | (14,560) | 28,290 |
Repayment of lease liabilities | 0 | (38,525) |
Dividend paid to former shareholders | 0 | (184,919) |
Net cash used in financing activities | (14,560) | (195,154) |
Effect on exchange rate change on cash and cash equivalents | (20,615) | 5,116 |
Net change in cash and cash equivalents | (40,157) | (229,244) |
BEGINNING OF YEAR | 40,447 | 269,691 |
END OF YEAR | 290 | 40,447 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash paid for tax | 0 | 0 |
Cash paid for interest | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Balance as at January 1, 2021 at Dec. 31, 2019 | $ 1,000 | $ 9,000 | $ 5,435 | $ 1,024,195 | $ 1,039,630 |
Beginning balance, shares at Dec. 31, 2019 | 10,000,000 | ||||
Dividends paid to former shareholders | (184,919) | (184,919) | |||
Shares issued for acquisition of legal acquirer | $ 1,561 | (1,561) | |||
Shares issued for acquisition of legal acquirer, shares | 15,610,000 | ||||
Shares issued for service rendered | $ 250 | 324,750 | 325,000 | ||
Shares issued for service rendered, shares | 2,500,000 | ||||
Foreign currency translation adjustment | 5,138 | 5,138 | |||
Net loss for the year | 3,644,186 | 3,644,186 | |||
Balance as at December 31, 2021 at Dec. 31, 2020 | $ 2,811 | 332,189 | 10,573 | 4,483,462 | 4,829,035 |
Ending balance, shares at Dec. 31, 2020 | 28,110,000 | ||||
Foreign currency translation adjustment | (22,865) | (22,865) | |||
Net loss for the year | $ (4,534,589) | $ (4,534,589) | |||
Shares issued for commitment shares as debt discount | 10 | 699,990 | 700,000 | ||
[custom:SharesIssuedForCommitmentSharesAsDebtDiscount] | $ 100,000 | ||||
Balance as at December 31, 2021 at Dec. 31, 2021 | $ 2,821 | $ 1,032,179 | $ (12,292) | $ (51,127) | $ 971,581 |
Ending balance, shares at Dec. 31, 2021 | 28,210,000 |
DESCRIPTION OF BUSINESS AND ORG
DESCRIPTION OF BUSINESS AND ORGANIZATION | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
DESCRIPTION OF BUSINESS AND ORGANIZATION | 1. DESCRIPTION OF BUSINESS AND ORGANIZATION Luduson G Inc. ("the Company" or "LDSN") was organized under the laws of the State of Delaware on March 6, 2014 under the name Jovanovic-Steele, Inc. The Company’s name was changed to Baja Custom Designs, Inc. on November 30, 2017. The Company was established as part of the Chapter 11 Plan of Reorganization of Pacific Shores Development, Inc. ("PSD"). The Company’s name was further changed to Luduson G Inc. on July 15, 2020. Currently, the Company through its subsidiaries, mainly provide events marketing strategies with a combination of digital interactive solutions and content production services in Hong Kong. The Company is principally engaged in developing and distributing digital entertainment - interactive game software and providing system development consultancy, maintenance services to the customers and providing interactive games installations in shopping mall events, exhibitions and brand promotions. On April 15, 2020, Linda Master, the former Chief Executive Officer, President and majority owner of the Company, sold 14,960,000 shares of her common stock of the Company, or 95.8% of the issued and outstanding stock of the Company, to Lan Chan, the current Chief Executive Officer, Chief Financial Officer and Secretary of the Company. On May 8, 2020, the Company executed a Share Exchange Agreement with Luduson Holding Company Limited, a limited liability company organized under the laws of British Virgin Islands (“LHCL”), and the shareholders of LHCL. Pursuant to the Share Exchange Agreement, the Company purchased Ten Thousand (10,000) shares of LHCL (the “LHCL Shares”), representing all of the issued and outstanding shares of common stock of LHCL. As consideration, the Company agreed to issue to the shareholders of LHCL Ten Million (10,000,000) shares of its common stock, at a value of $0.10 per share, for an aggregate value of $1,000,000. The Company consummated the acquisition of LHCL on May 22, 2020. Because the Company is a shell company, LHCL will comprise the ongoing operations of the combined entity and its senior management will serve as the senior management of the combined entity, LHCL is deemed to be the accounting acquirer for accounting purposes. The transaction will be treated as a recapitalization of the Company. Accordingly, the consolidated assets, liabilities and results of operations of the Company will become the historical financial statements of LHCL, and the Company’s assets, liabilities and results of operations will be consolidated with LHCL beginning on the acquisition date. LHCL was the legal acquiree but deemed to be the accounting acquirer. The Company was the legal acquirer but deemed to be the accounting acquiree in the reverse merger. The historical financial statements prior to the acquisition are those of the accounting acquirer (LHCL). After completion of the Share Exchange Transaction, the Company’s consolidated financial statements include the assets and liabilities, the operations and cash flow of the accounting acquirer. Description of subsidiaries Description of Subsidiaries Name Place of incorporation and kind of legal entity Principal activities Particulars of registered/ paid up share capital Effective interest held Luduson Holding Company Limited British Virgin Islands Investment holding 10,000 ordinary shares at par value of $1 100 Luduson Entertainment Limited Hong Kong Sales and marketing 10,000 ordinary shares for HK$10,000 100 G Music Asia Limited British Virgin Islands Event planning 2 ordinary shares at par value of $1 100 The Company and its subsidiaries are hereinafter referred to as (the “Company”). |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying consolidated financial statements and notes. • Basis of presentation These accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). • Use of estimates and assumptions In preparing these consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheet and revenues and expenses during the years reported. Actual results may differ from these estimates. • Basis of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation. • Cash and cash equivalents Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. • Accounts receivable Accounts receivable are recorded at the invoiced amount and do not bear interest, which are due within contractual payment terms, generally 30 to 90 days from completion of service. Credit is extended based on evaluation of a customer's financial condition, the customer credit-worthiness and their payment history. Accounts receivable outstanding longer than the contractual payment terms are considered past due. Past due balances over 90 days and over a specified amount are reviewed individually for collectibility. At the end of fiscal year, the Company specifically evaluates individual customer’s financial condition, credit history, and the current economic conditions to monitor the progress of the collection of accounts receivables. The Company will consider the allowance for doubtful accounts for any estimated losses resulting from the inability of its customers to make required payments. For the receivables that are past due or not being paid according to payment terms, the appropriate actions are taken to exhaust all means of collection, including seeking legal resolution in a court of law. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. The allowance for doubtful accounts was $ 4,972,680 0 • Plant and equipment Plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values: Schedule of property and equipment useful lives Expected useful lives Leasehold improvement 3 Computer equipment 3 5 Furniture and equipment 5 Expenditures for repairs and maintenance are expensed as incurred. When assets have been retired or sold, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the results of operations. • Revenue recognition The Company recognizes revenue from its contracts with customers in accordance with ASC 606 – Revenue from Contracts with Customers. Under ASC 606, a performance obligation is a promise within a contract to transfer a distinct good or service, or a series of distinct goods and services, to a customer. Revenue is recognized when performance obligations are satisfied and the customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for goods or services. Under the standard, a contract’s transaction price is allocated to each distinct performance obligation. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: • identify the contract with a customer; • identify the performance obligations in the contract; • determine the transaction price; • allocate the transaction price to performance obligations in the contract; and • recognize revenue as the performance obligation is satisfied. The transaction price for each contract is determined based on the amount the Company expects to be entitled to receive in exchange for transferring the promised products or services to the customer. Collectability of revenue is reasonably assured based on historical evidence of collectability of fees the Company charges its customers. The transaction price in the contract is allocated to each distinct performance obligation in an amount that represents the relative amount of consideration expected to be received in exchange for satisfying each performance obligation. Revenue is recognized when performance obligations are satisfied. At contract inception, the Company determines whether it satisfies the performance obligation over time or at a point in time. The Company derives its revenues from the sale of marketing software solution and maintenance service, in a monthly term. The Company’s performance obligation includes the software maintenance to certain digital interactive system or outdoor LED interactive gaming system. The majority of the Company’s contracts with customers only contain a single performance obligation. When the agreements involve with multiple performance obligations, the Company will account for individual performance obligations separately, if they are distinct. The Company recognizes its revenue upon the rendering of certain services, upon the monthly billing. • Cost of revenue Cost of revenue consists primarily of the fees paid to contracted programmers and labor costs, which are directly attributable to the rendering of services. • Income taxes The Company adopted the ASC 740 Income tax The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its balance sheets and provides valuation allowances as management deems necessary. • Uncertain tax positions The Company did not take any uncertain tax positions and had no adjustments to its income tax liabilities or benefits pursuant to the ASC 740 provisions of Section 740-10-25 for the years ended December 31, 2021 and 2020. • Foreign currencies translation Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the consolidated statement of operations. The reporting currency of the Company is United States Dollar ("US$") and the accompanying consolidated financial statements have been expressed in US$. In addition, the Company is operating in Hong Kong and maintain its books and record in its local currency, Hong Kong Dollars (“HKD”), which is a functional currency as being the primary currency of the economic environment in which their operations are conducted. In general, for consolidation purposes, assets and liabilities of its subsidiary whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “ Translation of Financial Statement Translation of amounts from HKD into US$ has been made at the following exchange rates for the years ended December 31, 2021 and 2020: Schedule of translation rates December 31,2021 December 31,2020 Year-end HKD:US$ exchange rate 0.12825 0.12899 Annual average HKD:US$ exchange rate 0.12839 0.12894 • Comprehensive income ASC Topic 220, “ Comprehensive Income • Retirement plan costs Contributions to retirement plans (which are defined contribution plans) are charged to general and administrative expenses in the accompanying statements of operation as the related employee service are provided. • Share-based compensation The Company follows ASC 718, Compensation—Stock Compensation • Debt issued with common stock Debt issued with common stock is accounted for under the guidelines established by ASC 470-20 – Accounting for Debt With Conversion or Other Options • Leases The Company adopts the FASB Accounting Standards Update (“ASU”) 2016-02 “Leases (Topic 842).” for all periods presented. This standard requires lessees to recognize lease assets (“right of use”) and related lease obligations (“lease liabilities”) on the balance sheet for leases with terms in excess of 12 months. The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in the consolidated balance sheets. Finance leases are included in finance lease ROU assets and finance lease liabilities in the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease and finance lease ROU assets and liabilities are recognized at January 1, 2019 based on the present value of lease payments over the lease term discounted using the rate implicit in the lease. In cases where the implicit rate is not readily determinable, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lease expense for lease payments is recognized on a straight-line basis over the lease term. • Related parties The Company follows the ASC 850-10, Related Party Pursuant to section 850-10-20 the related parties include a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of section 825–10–15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and Income-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The consolidated financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d) amount due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. • Commitments and contingencies The Company follows the ASC 450-20, Commitments If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time that these matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. • Fair value of financial instruments The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and has adopted paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by paragraph 820-10-35-37 of the FASB Accounting Standards Codification are described below: Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally observable inputs and not corroborated by market data. Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The carrying amounts of the Company’s financial assets and liabilities, such as cash and cash equivalents, accounts receivable, deposits, prepayment and other receivables, amount due from a director and operating lease right-of-use assets, approximate their fair values because of the short maturity of these instruments. • Recent accounting pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standard Board (“FASB”) or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. In May 2021, the FASB issued ASU 2021-04, Earnings Per Share The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations. |
COVID-19 RELATED RISKS AND UNCE
COVID-19 RELATED RISKS AND UNCERTAINTIES | 12 Months Ended |
Dec. 31, 2021 | |
Covid-19 Related Risks And Uncertainties | |
COVID-19 RELATED RISKS AND UNCERTAINTIES | 3. COVID-19 RELATED RISKS AND UNCERTAINTIES Since the beginning of 2020, COVID-19 has become a global pandemic. As a result of the measures implemented by governments around the world, the business operations have been directly affected. In particular, during 2021, the Company experienced a significant decline in demand for marketing and gaming businesses, as a result of the reduction in cost budgets by the merchandizers and competition in online gaming businesses. In order to mitigate the risk from COVID-19, the Company took expedited measures to reduce operating expenses and preserve cash, including headcount reduction, freezing hiring and voluntary salary reductions from the senior leadership. The majority of the Company’s customers suffered from liquidity difficulties and deteriorated the collection of the accounts receivables. Due to the speed and fluidity with which the COVID-19 pandemic continues to evolve, and the emergence of highly contagious variants, the Company has experienced by a certain extent of the impact of COVID-19 on its business operations. The ultimate extent of the impact of any epidemic, pandemic, outbreak, or other public health crisis on the business, financial condition and results of operations will depend on future developments, which are highly uncertain and cannot be predicted, including new information that may emerge concerning the severity of such epidemic, pandemic, outbreak, or other public health crisis and actions taken to contain or prevent the further spread, including the effectiveness of vaccination and booster vaccination campaigns, among others. Accordingly, the Company cannot predict the extent to which our business, financial condition and results of operations will be affected. 4. GOING CONCERN UNCERTAINTIES The Company’s consolidated financial statements as of December 31, 2021 been prepared using generally accepted accounting principles in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has incurred a net loss of $4,534,589 for the current year. In addition, with respect to the ongoing and evolving coronavirus (COVID-19) outbreak, which was designated as a pandemic by the World Health Organization on March 11, 2020, the outbreak has caused substantial disruption in international and U.S. economies and markets and if repercussions of the outbreak are prolonged, could have a significant adverse impact on the Company’s business. In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plan is to obtain such resources for the Company by obtaining capital and the continued financial support from management and significant shareholders sufficient to meet its minimal operating expenses and seeking third party equity and/or debt financing. Management believes the Company is currently pursuing additional financing for its operations. However, there is no assurance that the Company will be successful in securing sufficient funds to sustain the operations. These and other factors raise substantial doubt about the Company’s ability to continue as a going concern. These consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets and liabilities that may result in the Company not being able to continue as a going concern. |
BUSINESS SEGMENT
BUSINESS SEGMENT | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT | 5. BUSINESS SEGMENT The Company considers its business activities to constitute two reportable segments. The segment analysis of the Company’s revenues is as follows: Schedule of revenues by segment Years ended December 31, 2021 2020 Digital marketing $ 693,304 $ 5,916,380 Entertainment 308,134 19,340 $ 1,001,438 $ 5,935,720 |
ACCOUNTS AND RETENTION RECEIVAB
ACCOUNTS AND RETENTION RECEIVABLE | 12 Months Ended |
Dec. 31, 2021 | |
Credit Loss [Abstract] | |
ACCOUNTS AND RETENTION RECEIVABLE | 6. ACCOUNTS AND RETENTION RECEIVABLE The majority of the Company’s sales are on open credit terms and in accordance with terms specified in the contracts governing the relevant transactions. The Company evaluates the need of an allowance for doubtful accounts based on specifically identified amounts that management believes to be uncollectible. If actual collections experience changes, revisions to the allowance may be required. Based upon the aforementioned criteria, the Company has not provided the allowance for the years ended December 31, 2021 and 2020, as follows: Schedule of accounts receivable As of December 31, 2021 2020 Accounts receivable, cost $ 5,101,830 $ 4,499,746 Less: allowance for doubtful accounts (4,972,680 ) – Accounts receivable, net $ 129,150 $ 4,499,746 As the COVID-19 pandemic evolves, the Company’ customers suffer from a general economic downturn in Hong Kong and China, including, but not limited to, financial market volatility and erosion, deteriorating credit, liquidity concerns, further increases in government intervention, increasing unemployment, broad declines in consumer discretionary spending, reductions in production because of decreased demand, layoffs and other restructuring activities. The Company’s business has been directly affected and experienced from the deteriorating collection trend and considered to make a significant allowance for long-aged and doubtful accounts receivable. For the years ended December 31, 2021 and 2020, the Company made $ 4,977,996 0 Subsequently, the Company fully recovered $129,150 by subsequent settlements from its customer in January 2022. |
PLANT AND EQUIPMENT
PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PLANT AND EQUIPMENT | 7. PLANT AND EQUIPMENT Plant and equipment consisted of the following: Schedule of property and equipment As of December 31, 2021 2020 Leasehold improvement $ 64,495 $ 64,495 Computer equipment 418,371 418,371 Furniture and equipment 6,908 6,908 Foreign translation difference (2,651 ) 154 487,123 489,928 Less: accumulated depreciation (224,809 ) (67,322 ) Less: foreign translation difference 363 (192 ) $ 262,677 $ 422,414 Depreciation expense for the years ended December 31, 2021 and 2020 were $ 157,487 48,889 |
DEPOSITS, PREPAYMENTS AND OTHER
DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES | 8. DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES Deposits, prepayments and other receivables consisted of the following: Schedule of other receivables As of December 31, 2021 2020 Deposit for business project $ 138,615 $ 139,414 Prepayment for vending machine 519,422 522,413 Prepayments 166,728 – Rental deposit 3,206 3,225 $ 827,971 $ 665,052 Prepayment for business project represents the security deposit to the project under the collaboration agreement, which is unsecured and non-refundable. The prepayment will be charged to the project cost upon the commencement of its project in the next six months. Prepayment for vending machine represents the deposit for purchase of vending machines. The prepayment will be charged to the project cost upon the use of the machine in the next twelve months. |
AMOUNT DUE TO A RELATED PARTY
AMOUNT DUE TO A RELATED PARTY | 12 Months Ended |
Dec. 31, 2021 | |
Amount Due To Related Party | |
AMOUNT DUE TO A RELATED PARTY | 9. AMOUNT DUE TO A RELATED PARTY As of December 31, 2021, the amount due to a related party represented temporary advances made by the Company’s director, Mr Wong Ka Leung, which was unsecured, interest-free with no fixed repayment term. Imputed interest on this amount is considered insignificant. |
SHAREHOLDERS_ EQUITY
SHAREHOLDERS’ EQUITY | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
SHAREHOLDERS’ EQUITY | 10. SHAREHOLDERS’ EQUITY Authorized shares As of December 31, 2021 and 2020, the authorized share capital of the Company consisted of 100,000,000 shares of common stock with $0.0001 par value, and 20,000,000 shares of preferred stock also with $0.0001 par value. No other classes of stock are authorized. The Company's first issuance of common stock, totaling 580,000 shares, took place on March 6, 2014 pursuant to the Chapter 11 Plan of Reorganization confirmed by the U.S. Bankruptcy Court in the matter of Pacific Shores Development, Inc. (“PSD”). The Court ordered the distribution of shares in the Company to all general unsecured creditors of PSD, with these creditors to receive their Pro Rata share (according to amount of debt held) of a pool of 80,000 shares in the Company. The Court also ordered the distribution of shares in the Company to all administrative creditors of PSD, with these creditors to receive one share of common stock in the Company for each $0.10 of PSD's administrative debt which they held. A total of 500,000 shares were issued to PSD’s administrative creditors. The Court also ordered the distribution of 2,500,000 warrants in the Company to all administrative creditors of PSD, with these creditors to receive five warrants in the Company for each $0.10 of PSD's administrative debt which they held. These creditors received 2,500,000 500,000 4.00 500,000 5.00 500,000 6.00 500,000 7.00 500,000 8.00 On May 22, 2020, the Company consummated the acquisition of LHCL and agreed to issue to the shareholders of LHCL Ten Million ( 10,000,000 1,000,000 As of December 31, 2021 and 2020, the Company has a total of 2,500,000 shares of warrants. Issued and outstanding shares On January 2, 2020, the Company declared and paid a dividend of $ 184,919 On May 8, 2020, the Company executed a Share Exchange Agreement (“the “Share Exchange Agreement”) with Luduson Holding Company Limited, a limited company organized under the laws of the British Virgin Islands (“LHCL”), and the shareholders of LHCL. Pursuant to the Share Exchange Agreement, the Company agreed to purchase Ten Thousand (10,000) ordinary shares representing 100% of the issued and outstanding ordinary shares of the LHCL (the “LHCL Shares”). As consideration, the Company agreed to issue to the shareholders of LHCL Ten Million (10,000,000) shares of its common stock, at a value of US$0.10 per share, for an aggregate value of US$1,000,000. The Company consummated the acquisition of LHCL on May 22, 2020. On September 9, 2020, the Company issued 2,500,000 325,000 In September 2021, the Company issued 100,000 restricted shares of its common stock to Williamsburg as Initial Commitment Shares which is treated as debt discount and it will be amortized to interest expense over the expected term of the debt As of December 31, 2021 and 2020, the Company has a total of 28,210,000 and 28,110,000 shares of its common stock issued and outstanding. |
INCOME TAX
INCOME TAX | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | 11. INCOME TAX For the years ended December 31, 2021 and 2020, the local (“United States of America”) and foreign components of (loss) income before income taxes were comprised of the following: Schedule of income taxes Years ended December 31, 2021 2020 Domestic $ – $ (343,616 ) Foreign (4,443,596 ) 4,590,679 Total $ (4,443,596 ) $ 4,247,063 The provision for income taxes as shown in the accompanying consolidated statements of operations consists of the following: Current and deferred income taxes Years ended December 31, 2021 2020 Current: Domestic $ – $ – Foreign 90,993 602,877 Deferred: Domestic – – Foreign – – Provision for income taxes $ 90,993 $ 602,877 The effective tax rate in the years presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rate. The Company operates in various countries: United States of America and Hong Kong that are subject to taxes in the jurisdictions in which they operate, as follows: United States of America LDSN is registered in the State of Delaware and is subject to US federal corporate income tax. The U.S. Tax Cuts and Jobs Act (the “Tax Reform Act”) was signed into law. The Tax Reform Act significantly revised the U.S. corporate income tax regime by, among other things, lowering the U.S. corporate tax rate from 35% to 21% effective January 1, 2018. The Company’s policy is to recognize accrued interest and penalties related to unrecognized tax benefits in its income tax provision. The Company has not accrued or paid interest or penalties which were not material to its results of operations for the periods presented. Deferred tax asset is not provided for as the tax losses may not be able to carry forward after a change in substantial ownership of the Company in May 2020. As of December 31, 2021, the operations in the United States of America incurred $ 343,616 2038 72,159 ASC 740, Accounting for Income Taxes BVI Under the current BVI law, the Company is not subject to tax on income. Hong Kong The Company’s subsidiary operating in Hong Kong is subject to the Hong Kong Profits Tax at the two-tiered profits tax rates from 8.25% to 16.5% on the estimated assessable profits arising in Hong Kong during the current year, after deducting a tax concession for the tax year. The reconciliation of income tax rate to the effective income tax rate for the years ended December 31, 2021 and 2020 is as follows: Reconciliation of income taxes Years ended December 31, 2021 2020 (Loss) income before income taxes $ (4,443,596 ) $ 4,590,679 Statutory income tax rate 16.5% 16.5% Income tax expense at statutory rate (733,193 ) 757,462 Tax effect of non-deductible items 847,355 8,067 Tax effect of non-taxable items (700 ) (138,797 ) One-off tax reduction (22,469 ) (23,855 ) Income tax expense $ 90,993 $ 602,877 |
NET (LOSS) INCOME PER SHARE
NET (LOSS) INCOME PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
Net (loss) income per share: | |
NET (LOSS) INCOME PER SHARE | 12. NET (LOSS) INCOME PER SHARE Basic net (loss) income per share is computed using the weighted average number of common shares outstanding during the year. The dilutive effect of potential common shares outstanding is included in diluted net (loss) income per share. The following table sets forth the computation of basic and diluted net income per share for the years ended December 31, 2021 and 2020: Computation of net income per share Years ended December 31, 2021 2020 Net (loss) income attributable to common shareholders $ (4,534,589 ) $ 3,644,186 Weighted average common shares outstanding – Basic and diluted 28,141,233 20,332,350 Net (loss) income per share – $ (0.16 ) $ 0.18 |
PENSION COSTS
PENSION COSTS | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
PENSION COSTS | 13. PENSION COSTS The Company is required to make contribution under a defined contribution pension scheme for all of its eligible employees in Hong Kong. The Company is required to contribute a specified percentage of the participants' relevant income based on their ages and wages level. The total contributions made were $ 2,311 1,160 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 14. RELATED PARTY TRANSACTIONS Apart from the transactions and balances detailed elsewhere in these accompanying consolidated financial statements, the Company has no other significant or material related party transactions during the years presented. |
CONCENTRATIONS OF RISK
CONCENTRATIONS OF RISK | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS OF RISK | 15. CONCENTRATIONS OF RISK The Company is exposed to the following concentrations of risk: (a) Major customers For the years ended December 31, 2021 and 2020, the individual customer who accounts for 10% or more of the Company’s revenues and its outstanding receivable balances as at year-end dates, are presented as follows: Concentrations of risk Year ended December 31, 2021 December 31, 2021 Customers Revenues Percentage Accounts Customer A $ 693,304 70 $ 2,427,487 Customer B 154,067 15 1,509,812 Customer C 154,067 15 1,164,531 Total: $ 1,001,438 100 Total: $ 5,101,830 At December 31, 2021, accounts receivable balances were provided by the allowance of doubtful accounts of $4,972,680, after considering the subsequent settlements in January 2022. Year ended December 31, 2020 December 31, 2020 Customers Revenues Percentage Accounts Customer A $ 3,284,657 55 $ 2,041,928 Customer B 1,448,086 24 1,352,108 Customer C 1,183,637 20 1,088,683 Total: $ 5,916,380 99 Total: $ 4,482,719 All customers are located in the PRC and Hong Kong. (b) Economic and political risk The Company’s major operations are conducted in Hong Kong. Accordingly, the political, economic, and legal environments in Hong Kong, as well as the general state of Hong Kong’s economy may influence the Company’s business, financial condition, and results of operations. (c) Exchange rate risk The Company cannot guarantee that the current exchange rate will remain steady; therefore there is a possibility that the Company could post the same amount of profit for two comparable periods and because of the fluctuating exchange rate actually post higher or lower profit depending on exchange rate of HKD converted to US$ on that date. The exchange rate could fluctuate depending on changes in political and economic environments without notice. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 16. COMMITMENTS AND CONTINGENCIES As of December 31, 2021, the Company has no material commitments or contingencies. On August 20, 2021, the Company entered into an Equity Purchase Agreement with Williamsburg Venture Holdings, LLC, a Nevada limited liability company (“Investor”), pursuant to which the Investor agreed to invest up to Thirty Million Dollars ($30,000,000) over a 36-month period in accordance with the terms and conditions of that certain Equity Purchase Agreement, dated as of August 20, 2021, by and between the Company and the Investor (the “Equity Purchase Agreement”). During the term, the Company shall be entitled to put to the Investor, and the Investor shall be obligated to purchase, such number of shares of the Company’s common stock and at such price as are determined in accordance with the Equity Purchase Agreement. The per share purchase price for the Williamsburg Put Shares will be equal to 88% the lowest traded price of the Common Stock on the principal market during the five (5) consecutive trading days immediately preceding the date which Williamsburg received the Williamsburg Put Shares as DWAC Shares in its brokerage account (as reported by Bloomberg Finance L.P., Quotestream, or other reputable source). In connection with the Equity Purchase Agreement, the parties also entered into a Registration Rights Agreement (the “Registration Rights Agreement”) pursuant to which the Company agreed to register with the SEC the common stock issuable under the Equity Purchase Agreement, among other securities. The Company agreed to use its best efforts to file such registration statement with the SEC by November 30, 2021. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 17. SUBSEQUENT EVENTS In accordance with ASC Topic 855, “ Subsequent Events |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | • Basis of presentation These accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). |
Use of estimates and assumptions | • Use of estimates and assumptions In preparing these consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheet and revenues and expenses during the years reported. Actual results may differ from these estimates. |
Basis of consolidation | • Basis of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation. |
Cash and cash equivalents | • Cash and cash equivalents Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. |
Accounts receivable | • Accounts receivable Accounts receivable are recorded at the invoiced amount and do not bear interest, which are due within contractual payment terms, generally 30 to 90 days from completion of service. Credit is extended based on evaluation of a customer's financial condition, the customer credit-worthiness and their payment history. Accounts receivable outstanding longer than the contractual payment terms are considered past due. Past due balances over 90 days and over a specified amount are reviewed individually for collectibility. At the end of fiscal year, the Company specifically evaluates individual customer’s financial condition, credit history, and the current economic conditions to monitor the progress of the collection of accounts receivables. The Company will consider the allowance for doubtful accounts for any estimated losses resulting from the inability of its customers to make required payments. For the receivables that are past due or not being paid according to payment terms, the appropriate actions are taken to exhaust all means of collection, including seeking legal resolution in a court of law. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. The allowance for doubtful accounts was $ 4,972,680 0 |
Plant and equipment | • Plant and equipment Plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values: Schedule of property and equipment useful lives Expected useful lives Leasehold improvement 3 Computer equipment 3 5 Furniture and equipment 5 Expenditures for repairs and maintenance are expensed as incurred. When assets have been retired or sold, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the results of operations. |
Revenue recognition | • Revenue recognition The Company recognizes revenue from its contracts with customers in accordance with ASC 606 – Revenue from Contracts with Customers. Under ASC 606, a performance obligation is a promise within a contract to transfer a distinct good or service, or a series of distinct goods and services, to a customer. Revenue is recognized when performance obligations are satisfied and the customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for goods or services. Under the standard, a contract’s transaction price is allocated to each distinct performance obligation. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: • identify the contract with a customer; • identify the performance obligations in the contract; • determine the transaction price; • allocate the transaction price to performance obligations in the contract; and • recognize revenue as the performance obligation is satisfied. The transaction price for each contract is determined based on the amount the Company expects to be entitled to receive in exchange for transferring the promised products or services to the customer. Collectability of revenue is reasonably assured based on historical evidence of collectability of fees the Company charges its customers. The transaction price in the contract is allocated to each distinct performance obligation in an amount that represents the relative amount of consideration expected to be received in exchange for satisfying each performance obligation. Revenue is recognized when performance obligations are satisfied. At contract inception, the Company determines whether it satisfies the performance obligation over time or at a point in time. The Company derives its revenues from the sale of marketing software solution and maintenance service, in a monthly term. The Company’s performance obligation includes the software maintenance to certain digital interactive system or outdoor LED interactive gaming system. The majority of the Company’s contracts with customers only contain a single performance obligation. When the agreements involve with multiple performance obligations, the Company will account for individual performance obligations separately, if they are distinct. The Company recognizes its revenue upon the rendering of certain services, upon the monthly billing. |
Cost of revenue | • Cost of revenue Cost of revenue consists primarily of the fees paid to contracted programmers and labor costs, which are directly attributable to the rendering of services. |
Income taxes | • Income taxes The Company adopted the ASC 740 Income tax The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its balance sheets and provides valuation allowances as management deems necessary. |
Uncertain tax positions | • Uncertain tax positions The Company did not take any uncertain tax positions and had no adjustments to its income tax liabilities or benefits pursuant to the ASC 740 provisions of Section 740-10-25 for the years ended December 31, 2021 and 2020. |
Foreign currencies translation | • Foreign currencies translation Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the consolidated statement of operations. The reporting currency of the Company is United States Dollar ("US$") and the accompanying consolidated financial statements have been expressed in US$. In addition, the Company is operating in Hong Kong and maintain its books and record in its local currency, Hong Kong Dollars (“HKD”), which is a functional currency as being the primary currency of the economic environment in which their operations are conducted. In general, for consolidation purposes, assets and liabilities of its subsidiary whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “ Translation of Financial Statement Translation of amounts from HKD into US$ has been made at the following exchange rates for the years ended December 31, 2021 and 2020: Schedule of translation rates December 31,2021 December 31,2020 Year-end HKD:US$ exchange rate 0.12825 0.12899 Annual average HKD:US$ exchange rate 0.12839 0.12894 |
Comprehensive income | • Comprehensive income ASC Topic 220, “ Comprehensive Income |
Retirement plan costs | • Retirement plan costs Contributions to retirement plans (which are defined contribution plans) are charged to general and administrative expenses in the accompanying statements of operation as the related employee service are provided. |
Share-based compensation | • Share-based compensation The Company follows ASC 718, Compensation—Stock Compensation |
Debt issued with common stock | • Debt issued with common stock Debt issued with common stock is accounted for under the guidelines established by ASC 470-20 – Accounting for Debt With Conversion or Other Options |
Leases | • Leases The Company adopts the FASB Accounting Standards Update (“ASU”) 2016-02 “Leases (Topic 842).” for all periods presented. This standard requires lessees to recognize lease assets (“right of use”) and related lease obligations (“lease liabilities”) on the balance sheet for leases with terms in excess of 12 months. The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in the consolidated balance sheets. Finance leases are included in finance lease ROU assets and finance lease liabilities in the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease and finance lease ROU assets and liabilities are recognized at January 1, 2019 based on the present value of lease payments over the lease term discounted using the rate implicit in the lease. In cases where the implicit rate is not readily determinable, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lease expense for lease payments is recognized on a straight-line basis over the lease term. |
Related parties | • Related parties The Company follows the ASC 850-10, Related Party Pursuant to section 850-10-20 the related parties include a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of section 825–10–15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and Income-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The consolidated financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d) amount due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. |
Commitments and contingencies | • Commitments and contingencies The Company follows the ASC 450-20, Commitments If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time that these matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. |
Fair value of financial instruments | • Fair value of financial instruments The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and has adopted paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by paragraph 820-10-35-37 of the FASB Accounting Standards Codification are described below: Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally observable inputs and not corroborated by market data. Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The carrying amounts of the Company’s financial assets and liabilities, such as cash and cash equivalents, accounts receivable, deposits, prepayment and other receivables, amount due from a director and operating lease right-of-use assets, approximate their fair values because of the short maturity of these instruments. |
Recent accounting pronouncements | • Recent accounting pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standard Board (“FASB”) or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. In May 2021, the FASB issued ASU 2021-04, Earnings Per Share The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations. |
DESCRIPTION OF BUSINESS AND O_2
DESCRIPTION OF BUSINESS AND ORGANIZATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Description of Subsidiaries | Description of Subsidiaries Name Place of incorporation and kind of legal entity Principal activities Particulars of registered/ paid up share capital Effective interest held Luduson Holding Company Limited British Virgin Islands Investment holding 10,000 ordinary shares at par value of $1 100 Luduson Entertainment Limited Hong Kong Sales and marketing 10,000 ordinary shares for HK$10,000 100 G Music Asia Limited British Virgin Islands Event planning 2 ordinary shares at par value of $1 100 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of property and equipment useful lives | Schedule of property and equipment useful lives Expected useful lives Leasehold improvement 3 Computer equipment 3 5 Furniture and equipment 5 |
Schedule of translation rates | Schedule of translation rates December 31,2021 December 31,2020 Year-end HKD:US$ exchange rate 0.12825 0.12899 Annual average HKD:US$ exchange rate 0.12839 0.12894 |
BUSINESS SEGMENT (Tables)
BUSINESS SEGMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of revenues by segment | Schedule of revenues by segment Years ended December 31, 2021 2020 Digital marketing $ 693,304 $ 5,916,380 Entertainment 308,134 19,340 $ 1,001,438 $ 5,935,720 |
ACCOUNTS AND RETENTION RECEIV_2
ACCOUNTS AND RETENTION RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Credit Loss [Abstract] | |
Schedule of accounts receivable | Schedule of accounts receivable As of December 31, 2021 2020 Accounts receivable, cost $ 5,101,830 $ 4,499,746 Less: allowance for doubtful accounts (4,972,680 ) – Accounts receivable, net $ 129,150 $ 4,499,746 |
PLANT AND EQUIPMENT (Tables)
PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Schedule of property and equipment As of December 31, 2021 2020 Leasehold improvement $ 64,495 $ 64,495 Computer equipment 418,371 418,371 Furniture and equipment 6,908 6,908 Foreign translation difference (2,651 ) 154 487,123 489,928 Less: accumulated depreciation (224,809 ) (67,322 ) Less: foreign translation difference 363 (192 ) $ 262,677 $ 422,414 |
DEPOSITS, PREPAYMENTS AND OTH_2
DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Schedule of other receivables | Schedule of other receivables As of December 31, 2021 2020 Deposit for business project $ 138,615 $ 139,414 Prepayment for vending machine 519,422 522,413 Prepayments 166,728 – Rental deposit 3,206 3,225 $ 827,971 $ 665,052 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of income taxes | Schedule of income taxes Years ended December 31, 2021 2020 Domestic $ – $ (343,616 ) Foreign (4,443,596 ) 4,590,679 Total $ (4,443,596 ) $ 4,247,063 |
Current and deferred income taxes | Current and deferred income taxes Years ended December 31, 2021 2020 Current: Domestic $ – $ – Foreign 90,993 602,877 Deferred: Domestic – – Foreign – – Provision for income taxes $ 90,993 $ 602,877 |
Reconciliation of income taxes | Reconciliation of income taxes Years ended December 31, 2021 2020 (Loss) income before income taxes $ (4,443,596 ) $ 4,590,679 Statutory income tax rate 16.5% 16.5% Income tax expense at statutory rate (733,193 ) 757,462 Tax effect of non-deductible items 847,355 8,067 Tax effect of non-taxable items (700 ) (138,797 ) One-off tax reduction (22,469 ) (23,855 ) Income tax expense $ 90,993 $ 602,877 |
NET (LOSS) INCOME PER SHARE (Ta
NET (LOSS) INCOME PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Net (loss) income per share: | |
Computation of net income per share | Computation of net income per share Years ended December 31, 2021 2020 Net (loss) income attributable to common shareholders $ (4,534,589 ) $ 3,644,186 Weighted average common shares outstanding – Basic and diluted 28,141,233 20,332,350 Net (loss) income per share – $ (0.16 ) $ 0.18 |
CONCENTRATIONS OF RISK (Tables)
CONCENTRATIONS OF RISK (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
Concentrations of risk | Concentrations of risk Year ended December 31, 2021 December 31, 2021 Customers Revenues Percentage Accounts Customer A $ 693,304 70 $ 2,427,487 Customer B 154,067 15 1,509,812 Customer C 154,067 15 1,164,531 Total: $ 1,001,438 100 Total: $ 5,101,830 At December 31, 2021, accounts receivable balances were provided by the allowance of doubtful accounts of $4,972,680, after considering the subsequent settlements in January 2022. Year ended December 31, 2020 December 31, 2020 Customers Revenues Percentage Accounts Customer A $ 3,284,657 55 $ 2,041,928 Customer B 1,448,086 24 1,352,108 Customer C 1,183,637 20 1,088,683 Total: $ 5,916,380 99 Total: $ 4,482,719 |
DESCRIPTION OF BUSINESS AND O_3
DESCRIPTION OF BUSINESS AND ORGANIZATION (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Luduson Holding [Member] | |
Name of subsidiary | Luduson Holding Company Limited |
Place of incorporation | British Virgin Islands |
Principal activity | Investment holding |
Share capital | 10,000 ordinary shares at par value of $1 |
Ownership percentage | 100.00% |
Luduson Entertainment [Member] | |
Name of subsidiary | Luduson Entertainment Limited |
Place of incorporation | Hong Kong |
Principal activity | Sales and marketing |
Share capital | 10,000 ordinary shares for HK$10,000 |
Ownership percentage | 100.00% |
G Music Asia [Member] | |
Name of subsidiary | G Music Asia Limited |
Place of incorporation | British Virgin Islands |
Principal activity | Event planning |
Share capital | 2 ordinary shares at par value of $1 |
Ownership percentage | 100.00% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - useful lives) | 12 Months Ended |
Dec. 31, 2021 | |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property useful lives | 3 years |
Computer Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property useful lives | 3 years |
Computer Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property useful lives | 5 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property useful lives | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Translation rates) - Hong Kong, Dollars | Dec. 31, 2021 | Dec. 31, 2020 |
Period End [Member] | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Translation rate | 0.12825 | 0.12899 |
Period Average [Member] | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Translation rate | 0.12839 | 0.12894 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Allowance for doubtful accounts | $ 4,972,680 | $ 0 |
BUSINESS SEGMENT (Details)
BUSINESS SEGMENT (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Revenue, net | $ 1,001,438 | $ 5,935,720 |
Entertainment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue, net | 308,134 | 19,340 |
Digital Marketing [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue, net | $ 693,304 | $ 5,916,380 |
ACCOUNTS AND RETENTION RECEIV_3
ACCOUNTS AND RETENTION RECEIVABLE (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Credit Loss [Abstract] | ||
Accounts receivable, cost | $ 5,101,830 | $ 4,499,746 |
Less: allowance for doubtful accounts | (4,972,680) | 0 |
Accounts receivable, net | $ 129,150 | $ 4,499,746 |
ACCOUNTS AND RETENTION RECEIV_4
ACCOUNTS AND RETENTION RECEIVABLE (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Credit Loss [Abstract] | ||
Allowance for doubtful accounts | $ 4,977,996 | $ 0 |
PLANT AND EQUIPMENT (Details)
PLANT AND EQUIPMENT (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 487,123 | $ 489,928 |
Less: Accumulated depreciation | (224,809) | (67,322) |
Less: Foreign translation difference | 363 | |
Less: Foreign translation difference | (192) | |
Property and equipment, net | 262,677 | 422,414 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 64,495 | 64,495 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 418,371 | 418,371 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 6,908 | 6,908 |
Foreign Translation Difference [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | (2,651) | (154) |
Property and equipment, gross | $ 2,651 | $ 154 |
PLANT AND EQUIPMENT (Details Na
PLANT AND EQUIPMENT (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 157,487 | $ 48,889 |
DEPOSITS, PREPAYMENTS AND OTH_3
DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Deposits, prepayments and other receivables | $ 827,971 | $ 665,052 |
Deposit For Business Project [Member] | ||
Deposits, prepayments and other receivables | 138,615 | 139,414 |
Prepayment For Vending Machine [Member] | ||
Deposits, prepayments and other receivables | 519,422 | 522,413 |
Prepayments [Member] | ||
Deposits, prepayments and other receivables | 166,728 | 0 |
Rental Deposit [Member] | ||
Deposits, prepayments and other receivables | $ 3,206 | $ 3,225 |
SHAREHOLDERS_ EQUITY (Details N
SHAREHOLDERS’ EQUITY (Details Narrative) - USD ($) | Jan. 02, 2020 | May 22, 2020 | Sep. 09, 2020 | Dec. 31, 2020 | Dec. 31, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Warrants outstanding | 2,500,000 | ||||
Stock issued for acquisition, value | |||||
Dividends declared and paid | $ 184,919 | 184,919 | |||
Stock issued for services, value | $ 325,000 | ||||
Five Individuals [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock issued for services, shares | 2,500,000 | ||||
Stock issued for services, value | $ 325,000 | ||||
Lhcl [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock issued for acquisition, shares | 10,000,000 | ||||
Stock issued for acquisition, value | $ 1,000,000 | ||||
A Warrants [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Warrants outstanding | 500,000 | ||||
Warrant exercise price | $ 4 | ||||
B Warrants [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Warrants outstanding | 500,000 | ||||
Warrant exercise price | $ 5 | ||||
C Warrants [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Warrants outstanding | 500,000 | ||||
Warrant exercise price | $ 6 | ||||
D Warrants [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Warrants outstanding | 500,000 | ||||
Warrant exercise price | $ 7 | ||||
E Warrants [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Warrants outstanding | 500,000 | ||||
Warrant exercise price | $ 8 |
INCOME TAX (Details - Income be
INCOME TAX (Details - Income before taxes) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | ||
Income before taxes | $ (4,443,596) | $ 4,247,063 |
Domestic Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Income before taxes | 0 | (343,616) |
Foreign Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Income before taxes | $ (4,443,596) | $ 4,590,679 |
INCOME TAX (Details - Provision
INCOME TAX (Details - Provision) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | ||
Domestic | $ 0 | $ 0 |
Foreign | 90,993 | 602,877 |
Deferred: | ||
Domestic | 0 | 0 |
Foreign | 0 | 0 |
Provision for income taxes | $ 90,993 | $ 602,877 |
INCOME TAX (Details - Effective
INCOME TAX (Details - Effective rate) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | ||
Income tax expense at statutory rate | $ 0 | $ 0 |
Income tax expense | 90,993 | 602,877 |
Inland Revenue, Hong Kong [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
(Loss) income before income taxes | $ (4,443,596) | $ 4,590,679 |
Statutory income tax rate | 16.50% | 16.50% |
Income tax expense at statutory rate | $ (733,193) | $ 757,462 |
Tax effect of non-deductible items | 847,355 | 8,067 |
Tax effect of non-taxable items | (700) | (138,797) |
One-off tax reduction | (22,469) | (23,855) |
Income tax expense | $ 90,993 | $ 602,877 |
INCOME TAX (Details Narrative)
INCOME TAX (Details Narrative) | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Income Tax Disclosure [Abstract] | |
Operating Loss Carryforwards | $ 343,616 |
[custom:OperatingLossCarryforwardExpirationDate] | 2038 |
Deferred Tax Assets, Valuation Allowance | $ 72,159 |
NET (LOSS) INCOME PER SHARE (De
NET (LOSS) INCOME PER SHARE (Details - Summary) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Net (loss) income per share: | ||
Net (loss) income attributable to common shareholders | $ (4,534,589) | $ 3,644,186 |
Weighted average common shares outstanding – Basic and diluted | 28,141,233 | 20,332,350 |
Net (loss) income per share – Basic and diluted | $ (0.16) | $ 0.18 |
PENSION COSTS (Details Narrativ
PENSION COSTS (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | ||
Pension contributions | $ 2,311 | $ 1,160 |
CONCENTRATIONS OF RISK (Details
CONCENTRATIONS OF RISK (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Concentration Risk [Line Items] | ||
Accounts receivable | $ 129,150 | $ 4,499,746 |
Revenue Benchmark [Member] | ||
Concentration Risk [Line Items] | ||
Revenues | 1,001,438 | 5,916,380 |
Revenue Benchmark [Member] | Customer A [Member] | ||
Concentration Risk [Line Items] | ||
Revenues | $ 693,304 | $ 3,284,657 |
Revenue Benchmark [Member] | Customer A [Member] | Customer Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 70.00% | 55.00% |
Revenue Benchmark [Member] | Customer B [Member] | ||
Concentration Risk [Line Items] | ||
Revenues | $ 154,067 | $ 1,448,086 |
Revenue Benchmark [Member] | Customer B [Member] | Customer Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 15.00% | 24.00% |
Revenue Benchmark [Member] | Customer C [Member] | ||
Concentration Risk [Line Items] | ||
Revenues | $ 154,067 | $ 1,183,637 |
Revenue Benchmark [Member] | Customer C [Member] | Customer Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 15.00% | 20.00% |
Revenue Benchmark [Member] | All Customers [Member] | Customer Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 100.00% | 99.00% |
Accounts Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Accounts receivable | $ 5,101,830 | $ 4,482,719 |
Accounts Receivable [Member] | Customer A [Member] | ||
Concentration Risk [Line Items] | ||
Accounts receivable | 2,427,487 | 2,041,928 |
Accounts Receivable [Member] | Customer B [Member] | ||
Concentration Risk [Line Items] | ||
Accounts receivable | 1,509,812 | 1,352,108 |
Accounts Receivable [Member] | Customer C [Member] | ||
Concentration Risk [Line Items] | ||
Accounts receivable | $ 1,164,531 | $ 1,088,683 |