Cover
Cover - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cover [Abstract] | ||
Entity Registrant Name | United World Holding Group Ltd. | |
Entity Central Index Key | 0001763543 | |
Document Type | 20-F | |
Amendment Flag | false | |
Entity Voluntary Filers | No | |
Current Fiscal Year End Date | --12-31 | |
Entity Well Known Seasoned Issuer | No | |
Entity Shell Company | false | |
Entity Emerging Growth Company | true | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Dec. 31, 2020 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2020 | |
Entity Ex Transition Period | false | |
Entity Common Stock Shares Outstanding | 22,354,793 | |
Document Annual Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Document Shell Company Report | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalent | $ 151,770 | $ 249,430 |
Accounts receivable, net | 30,625 | 170,085 |
Accounts receivable - related parties, net | 451,031 | 53,458 |
Inventories | 1,312,153 | 1,113,783 |
Other receivables | 24,036 | 919,342 |
Prepayments - related parties | 935,160 | 350,726 |
Prepayments and other current assets | 438,653 | 625,109 |
Total current assets | 3,343,428 | 3,481,933 |
Property and equipment, net | 14,983 | 22,614 |
Right of use asset | 67,330 | 121,777 |
Total assets | 3,425,741 | 3,626,324 |
Current liabilities | ||
Accounts payable (all balances are included in the consolidated VIE and are without recourse to UWHG) | 82,702 | 0 |
Other payables and accrued liabilities (all balances are included in the consolidated VIE and are without recourse to UWHG) | 15,688 | 11,249 |
Other Payables - related parties (all balances are included in the consolidated VIE and are without recourse to UWHG) | 0 | 3,878 |
Taxes payable (all balances are included in the consolidated VIE and are without recourse to UWHG) | 95,918 | 80,993 |
Lease liability - current (all balances are included in the consolidated VIE and are without recourse to UWHG) | 67,330 | 58,630 |
Total current liabilities | 261,638 | 154,750 |
Lease liability - non current (all balances are included in the consolidated VIE and are without recourse to UWHG) | 0 | 63,147 |
Total liabilities | 261,638 | 217,897 |
Commitments and contingency | 0 | 0 |
Stockholders' Equity | ||
Ordinary shares, $0.0001 par value, 500,000,000 shares authorized, 22,354,793 shares issued and outstanding at December 31, 2020 and 2019 | 2,235 | 2,235 |
Additional paid-in capital | 6,576,401 | 6,576,401 |
Retained earnings (Accumulated deficit) | (3,242,038) | (2,799,967) |
Accumulated other comprehensive income (loss) | (172,495) | (370,242) |
Total equity | 3,164,103 | 3,408,427 |
Total liabilities and equity | $ 3,425,741 | $ 3,626,324 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
CONSOLIDATED BALANCE SHEETS | ||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 |
Ordinary shares, shares issued | 22,354,793 | 22,354,793 |
Ordinary shares, shares outstanding | 22,354,793 | 22,354,793 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | |||
SERVICE REVENUE - third parties | $ 636,236 | $ 555,802 | $ 418,949 |
SERVICE REVENUE - related parties | 374,199 | 363,370 | 666,505 |
TOTAL REVENUE | 1,010,435 | 919,172 | 1,085,454 |
COST OF REVENUE | 429,445 | 1,160,182 | 737,542 |
GROSS PROFIT (LOSS) | 580,990 | (241,010) | 347,912 |
OPERATING EXPENSES: | |||
Selling | 347,443 | 532,920 | 46,414 |
General and administrative | 675,369 | 1,414,814 | 141,912 |
Total operating expenses | 1,022,812 | 1,947,734 | 188,326 |
INCOME (LOSS) FROM OPERATIONS | (441,822) | (2,188,744) | 159,586 |
OTHER INCOME (EXPENSE) | |||
Interest income (expenses) | 615 | 41 | 305 |
Other finance expenses | (1,240) | 0 | (612) |
Impairment on prepaid investment | 0 | (651,973) | 0 |
Other non-operating income (expense) | 376 | 5,925 | 956 |
Total other income (expense), net | (249) | (646,007) | 649 |
INCOME (LOSS) BEFORE INCOME TAXES | (442,071) | (2,834,751) | 160,235 |
PROVISION FOR INCOME TAXES | 0 | 0 | 19 |
NET INCOME (LOSS) | (442,071) | (2,834,751) | 160,216 |
OTHER COMPREHENSIVE INCOME (LOSS) | |||
Foreign currency translation adjustments | 197,747 | (46,109) | (337,055) |
COMPREHENSIVE INCOME (LOSS) | |||
COMPREHENSIVE INCOME (LOSS), Net | $ (244,324) | $ (2,880,860) | $ (176,839) |
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES | |||
Basic and diluted | 22,354,793 | 22,354,793 | 20,161,287 |
EARNINGS (LOSS) PER SHARE | |||
Basic and diluted- | $ (0.02) | $ (0.13) | $ 0.01 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) | Total | Ordinary shares | Additional Paid-In Capital | Subscription receivable | Retained Earnings (Accumulated Deficit) | Accumulated other comprehensive income (loss) |
Balance, shares at Dec. 31, 2017 | 20,000,000 | |||||
Balance, amount at Dec. 31, 2017 | $ 351,567 | $ 2,000 | $ 462,077 | $ 0 | $ (125,432) | $ 12,922 |
Registered capital contribution | 3,759,766 | $ 0 | 3,759,766 | 0 | 0 | 0 |
Shares sold for cash, shares | 2,354,793 | |||||
Shares sold for cash, amount | 0 | $ 235 | 2,354,558 | (2,354,793) | ||
Net income (loss) | 160,216 | 0 | 0 | 0 | 160,216 | 0 |
Foreign currency translation adjustments | (337,055) | $ 0 | 0 | 0 | 0 | 0 |
Balance, shares at Dec. 31, 2018 | 22,354,793 | |||||
Balance, amount at Dec. 31, 2018 | 3,934,494 | $ 2,235 | 6,576,401 | (2,354,793) | 34,784 | (324,133) |
Shares sold for cash, amount | 2,354,793 | 0 | 0 | 2,354,793 | 0 | 0 |
Net income (loss) | (2,834,751) | 0 | 0 | 0 | (2,834,751) | 0 |
Foreign currency translation adjustments | (46,109) | $ 0 | 0 | 0 | 0 | (46,109) |
Balance, shares at Dec. 31, 2019 | 22,354,793 | |||||
Balance, amount at Dec. 31, 2019 | 3,408,427 | $ 2,235 | 6,576,401 | 0 | (2,799,967) | (370,242) |
Net income (loss) | (442,071) | 0 | 0 | 0 | (442,071) | 0 |
Foreign currency translation adjustments | 197,747 | $ 0 | 0 | 0 | 0 | 197,747 |
Balance, shares at Dec. 31, 2020 | 22,354,793 | |||||
Balance, amount at Dec. 31, 2020 | $ 3,164,103 | $ 2,235 | $ 6,576,401 | $ 0 | $ (3,242,038) | $ (172,495) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ (442,071) | $ (2,834,751) | $ 160,216 |
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: | |||
Depreciation | 8,640 | 5,445 | 2,644 |
Bad debt expenses | 95,736 | 125,180 | 0 |
Impairment on prepaid investment | 0 | 651,973 | 0 |
Change in operating assets and liabilities | |||
Inventories | (117,909) | (1,122,391) | 0 |
Accounts receivable | 46,920 | (118,507) | 81,504 |
Accounts receivable - related parties | (372,930) | 97,054 | (104,664) |
Other receivables | 903,829 | (926,167) | 0 |
Other receivables - related parties | 0 | 60,552 | (63,204) |
Prepayments - related parties | (672,448) | (353,437) | 0 |
Prepayments and other current assets | 356,969 | 2,820,285 | (4,260,708) |
Accounts payable | 78,273 | 0 | 0 |
Other payables and accrued liabilities | 3,496 | (3,902) | 8,542 |
Other payables - related parties | (3,913) | 3,907 | 0 |
Taxes payable | 9,047 | 44,204 | 24,284 |
Net cash used in operating activities | (106,360) | (1,550,555) | (4,151,386) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of equipment | 0 | (18,702) | (6,042) |
Net cash used in investing activities | 0 | (18,702) | (6,042) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Registered capital contribution | 0 | 0 | 3,582,420 |
Shares sold for cash | 0 | 2,354,793 | 0 |
Advance from customer - related party | 0 | (578,888) | 0 |
Net cash provided by financing activities | 0 | 1,775,905 | 3,582,420 |
EFFECT OF EXCHANGE RATE ON CASH | 8,700 | (4,367) | (12,698) |
CHANGES IN CASH | (97,660) | 202,281 | (587,706) |
CASH AND CASH EQUIVALENT, beginning of year | 249,430 | 47,149 | 634,855 |
CASH AND CASH EQUIVALENT, end of year | 151,770 | 249,430 | 47,149 |
SUPPLEMENTAL CASH FLOW INFORMATION: | |||
Cash paid for income tax | 0 | 0 | 0 |
Cash paid for interest | $ 0 | $ 0 | $ 0 |
Nature of Business and Organiza
Nature of Business and Organization | 12 Months Ended |
Dec. 31, 2020 | |
Nature of Business and Organization | |
Note 1 - Nature of business and organization | United World Holding Group Ltd (“United World BVI”) is a holding company incorporated on July 5, 2018, under the laws of the British Virgin Islands. United World BVI through its subsidiaries and variable interest entities (“VIEs”) (collectively referred to as the “Company”) is principally engaged in event organizing and bed and breakfast (“B&B”) inns businesses in the People’s Republic of China (the “PRC” or “China”). Details of United World BVI’s subsidiaries/VIEs are summarized as follows: Name Principle of business Country of incorporation Date of incorporation Ownership United World (Hong Kong) Holding Group Limited (“United World HK”) Holding company Hong Kong August 7, 2018 100% Yunnan United World Enterprise Management Company Limited (“United World WFOE”) Holding company and deemed a wholly foreign owned enterprise (“WFOE”) PRC September 13, 2018 100% United Culture Exchange (Beijing) Company Limited (“United Culture”) Conferences and event organizing and B&B inns PRC October 31, 2016 VIE by contractual arrangements The Company develops and operates its business through United Culture. Starting in June 2017, United Culture began generating revenue from organizing conferences and events for customers. Since early 2020, the Company has built and generated revenues from an additional line of business, livestreaming e-commerce. United Culture is the predecessor of United World BVI and operates all of the business of United World BVI prior to a restructuring (the “Restructuring”). Restructuring United World BVI was set up on July 5, 2018 by the Controlling Shareholder. On August 7, 2018, United World BVI established its wholly owned subsidiary, United World HK. On September 13, 2018, United World HK established its wholly-owned subsidiary, United World WFOE. On December 5, 2018, United World WFOE entered into a series of contractual agreements (“Contractual Agreements”) with United Culture (See Contractual Arrangements below for details of the contract terms), thereafter United World WFOE qualifies as the primary beneficial owner of United Culture (See Note 3). As result of the restructuring, United World HK, United World WFOE and the PRC operating company, United Culture, became subsidiaries or VIE of United World BVI. Immediately before and after the restructuring completed on December 5, 2018 as described above, Mr. Hong Wang and his spouse controlled the United World BVI and its subsidiaries and PRC Operating Company; therefore, the restructuring was effectively a legal recapitalization accounted for as transactions between entities under common control at historical cost basis, in a manner similar to pooling-of-interest accounting. The effect of the restructuring was applied retroactively to all the periods presented in the consolidated financial statements as if the current structure existed since inception. Contractual Arrangements The following is a summary of the currently effective contractual arrangements by and between our wholly-owned subsidiary, United World WFOE, and our consolidated variable interest entity, United Culture. Agreements that Provide United World WFOE Effective Control over the VIE Equity Pledge Agreements Pursuant to the equity pledge agreements, the shareholders who collectively owned all of United Culture pledge all of the equity interests in United Culture to United World WFOE as collateral to secure the obligations of United Culture under the exclusive consulting services and operating agreement. These shareholders may not transferor assign the pledged equity interests, or incur or allow any encumbrance that would jeopardize United World WFOE’s interests, without United World WFOE’s prior approval. In the event of default, United World WFOE, as the pledgee, will be entitled to certain rights and entitlements, including the priority in receiving payments from the auction or sale of whole or part of the pledged equity interests of United Culture. The agreement will terminate at the date these shareholders have transferred all of their pledged equity interests pursuant to the equity option agreement. Voting Rights Proxy and Financial Supporting Agreements Pursuant to the voting rights proxy and financial supporting agreements, the shareholders of United Culture give United World WFOE an irrevocable proxy to act on their behalf on all matters pertaining to United Culture and to exercise all of their rights as shareholders of United Culture, including the right to attend shareholders meeting, to exercise voting rights and to transfer all or a part of their equity interests in United Culture. In consideration of such granted rights, United World WFOE agrees to provide the necessary financial support to United Culture whether or not United Culture incurs loss, and agrees not to request repayment if United Culture is unable to do so. The agreements shall remain in effect for 30 years until December 4, 2048. Agreement that Allows United World WFOE to Receive Economic Benefits and Absorb Losses from the VIE Consultation and Services Agreement Pursuant to the consultation and services agreement between United World WFOE and United Culture, United World WFOE is engaged as exclusive provider of management consulting services to United Culture. For such services, United Culture agrees to pay service fees based on all of its net incomes to United World WFOE, or United World WFOE has obligation to absorb all of the losses of United Culture. The consultation and services agreement remains in effect for 30 years until December 4, 2048. The agreement can be extended only if United World WFOE gives its written consent of extension of the agreement before its expiration, and United Culture may then extend without reservation. Agreement that Provides United World WFOE with the Option to Purchase the Equity Interest in the VIE Equity Option Agreements Pursuant to the equity option agreements among United World WFOE, United Culture and all shareholders of United Culture. United Culture’s shareholders jointly and severally grant United World WFOE an option to purchase their equity interests in United Culture. The purchase price shall be the lowest price then permitted under applicable PRC laws. If the purchase price is greater than the registered capital of United Culture, these shareholders of United Culture are required to immediately return any amount in excess of the registered capital to United World WFOE or its designee. United World WFOE may exercise such option at any time until it has acquired all equity interests of United Culture, and may transfer the option to any third party. The agreements will terminate on the date on which all of these shareholders’ equity interests of United Culture have been transferred to United World WFOE or its designee. As a result of the foregoing Contractual Arrangements, which give United World WFOE effective control of United Culture, United Culture obligates United World WFOE to absorb all of the losses from its activities, and enable United World WFOE to receive all of its expected residual returns, United World BVI accounts for the PRC operating company as a VIE. Additionally, as the parent company of United World WFOE, United World BVI is considered the primary beneficiary of the PRC operating company. Accordingly, United World BVI consolidates the accounts of the PRC operating company for the periods presented. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies | |
Note 2 - Summary of significant accounting policies | Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with the generally accepted accounting principles in the United States of America (“U.S. GAAP”). The Company’s fiscal year end date is December 31. Principles of consolidation The consolidated financial statements include the accounts of United World BVI, its subsidiaries, and the VIE. All intercompany transactions and balances between United World BVI, its subsidiaries and the VIE are eliminated upon consolidation. Use of estimates and assumptions The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s consolidated financial statements include fair value of assets and liabilities, the useful lives of property and equipment, collectability of receivables, and realization of deferred tax assets. Actual results could differ from these estimates. Foreign currency translation and transactions The reporting currency of United World BVI is the U.S. dollar (USD). United World BVI uses USD as its functional currency. United World BVI’s subsidiaries and the VIE in China and Hong Kong use the local currency, Renminbi (“RMB”) and Hong Kong dollar (“HKD”), as their functional currency, respectively. Assets and liabilities are translated at the current exchange rate as quoted by the People’s Bank of China (the “PBOC”) at the end of the period. Income and expense accounts are translated at the average translation rates and the equity accounts are translated at historical rates. Translation adjustments resulting from this process are included in accumulated other comprehensive income (loss) in the statement of changes in equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. The balance sheet amounts, with the exception of equity, on December 31, 2020 and 2019, were translated at 6.5306 RMB and 6. 9632 RMB to $1.00, respectively. The equity accounts were stated at their historical rates. The average translation rates applied to statements of operations and comprehensive income (loss) accounts for the years ended December 31, 2020, 2019 and 2018 were 6.9001 RMB, 6.9098 RMB and 6.6199 RMB to $1.00, respectively. Cash flows were also translated at average translation rates for the periods and, therefore, amounts reported on the statement of cash flows would not necessarily agree with changes in the corresponding balances on the consolidated balance sheet. The transactions dominated in HKD are immaterial. Cash and cash equivalents Cash includes cash on hand and demand deposits in accounts maintained with commercial banks within the PRC. The Company considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. Cash balances in bank accounts in PRC are not insured by the Federal Deposit Insurance Corporation or other programs. Accounts receivable During the normal course of business, the Company extends unsecured credit to its customers. Accounts receivable are stated at the amount the Company expects to collect from customers. Management reviews its accounts receivable balances each reporting period to determine if an allowance for doubtful accounts is required. An allowance for doubtful accounts is recorded in the period in which loss is determined to be probable based on assessment of specific evidence indicating doubtful collection, historical experience, account balance aging and prevailing economic conditions. Bad debts are written off against the allowance after all collection efforts have ceased. For the years ended December 31, 2020, 2019 and 2018, the Company recorded bad debt expenses of $95,736, $125,180, and $0, respectively. The average collection term for accounts receivable was three to twelve months. Inventories Inventories consist of finished goods, including dietary supplements and cosmetic products ready for sale and are stated at the lower of cost or net realizable value. The Company values inventories using the weighted average costing method. The Company’s policy is to include as a part of inventories any freight incurred to ship the products from contract manufacturers to its warehouses. Outbound delivery costs for shipping to customers are considered period costs and reflected in selling, general and administrative expenses. The Company regularly review inventories and consider forecasts of future demand, market conditions and product obsolescence. If the estimated realizable value of inventories is less than cost, the Company makes provisions to reduce its carrying value to its estimated market value. As of December 31, 2020 and 2019, the balance for the inventories totaled $1,312,153 and $1,113,783, respectively. There was no obsolescence reserve at December 31, 2020 and 2019, respectively. Property and equipment Property and equipment are stated at historical cost. Depreciation is provided over the estimated useful life of each class of depreciable assets and is computed using the straight-line method over the useful lives of the assets are as follows: Useful Life Office equipment and furniture 3-5 years The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the consolidated statements of operations. Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. Impairment for long-lived assets Long-lived assets, including, property and equipment and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated discounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When the Company identifies an impairment, the Company reduces the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. As of December 31, 2020 and 2019, management believes no impairment charge is necessary. Leases In February 2016, the FASB established Topic 842, Leases, by issuing ASU No. 2016-02, which requires lessees to recognize the rights and obligations created by leases on the balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-11, Targeted Improvements, ASU No. 2018-10, Codification Improvements to Topic 842, and ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the statement of operations. The new standard became effective April 1, 2019. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. The Company adopted the new standard on January 1, 2019 using the modified retrospective transition approach as of the effective date of the initial application. The new standard provides a number of optional practical expedients in transition. The Company elected the “package of practical expedients”, which permits entities not to reassess under the new lease standard prior conclusions about lease identification, lease classification and initial direct costs. The Company does not expect to elect the use-of-hindsight or the practical expedient pertaining to land easements. The most significant effects of the adoption of the new standard relate to the recognition of new ROU assets and lease labilities on our balance sheet for office operating leases and providing significant new disclosures about our leasing activities. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company has also elected the short-term leases recognition exemption for all leases that qualify. This means that the Company will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets and lease liabilities, for existing short-term leases of those assets in transition. The Company also currently expects to elect the practical expedient to not separate lease and non-lease components for its leases. All existing leases are reported under this rule. Under ASC 840, leases were classified as either capital or operating, and the classification significantly impacted the effect the contract had on the company’s financial statements. Capital lease classification resulted in a liability that was recorded on a company’s balance sheet, whereas operating leases did not impact the balance sheet. Since the Company elected not to recast the prior year financial statements and the Company did not have any long term lease contracts prior to 2019, the Company did not have operating lease right-of-use asset or operating lease liabilities for prior year financial statements after the new adoption. As of December 31, 2020 and 2019, the Company had $67,330 and $121,777 of operating lease right-of-use asset and $67,330 and $121,777 of operating lease liabilities, respectively. Fair value measurement The Company adopted ASC Topic 820, Fair Value Measurements and Disclosures ASC Topic 820 defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) on the measurement date in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability. ASC Topic 820 specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is as follows: Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. Unobservable inputs are valuation technique inputs that reflect the Company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Management of the Company is responsible for determining the assets acquired, liabilities assumed and intangibles identified as of the acquisition date and considered a number of factors including valuations from independent appraiser. When available, the Company uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Company measures fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and currency rates. As of December 31, 2020 and 2019, there are no assets or liabilities that are measured and reported at fair value on a recurring basis. Fair values of financial instruments Financial instruments include cash and cash equivalents, accounts receivable, prepayments and other current assets, other payable and accrued liabilities, advance from related parties, and taxes payable. The Company considers the carrying amount of short-term financial instrument to approximate their fair values because of the short period of time between the origination of such instruments and their expected realization. Revenue recognition The Company’s revenue is primarily generated from organizing conferences and events. Before 2018, the Company followed ASC 605 and recognized revenue based on revenue recognition criteria as below: 1) persuasive evidence of an arrangement exists, 2) transfer of title has occurred or services have been rendered, 3) the selling price is fixed or determinable and 4) collectability is reasonably assured. The Company adopted Accounting Standards Codification (“ASC”) 606 in the first quarter of 2018 using the modified retrospective approach. ASC 606, Revenue from Contracts with Customers, establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The Company has assessed the impact of the guidance by performing the following five steps analysis: Step 1: Identify the contract Step 2: Identify the performance obligations Step 3: Determine the transaction price Step 4: Allocate the transaction price Step 5: Recognize revenue Based on the assessment, the Company concluded that there was no change to the timing and pattern of revenue recognition for its current revenue streams in scope of Topic 606 and therefore there were no material changes to the Company’s consolidated financial statements upon adoption of ASC 606. The PRC operating companies were subject to value added tax (VAT) and related surcharges on the revenue earned for services provided in China. The applicable business tax rate was 3%. Business tax and related surcharges are deducted from revenues before arriving at net revenues. Revenue is recognized net of VAT in the consolidated statement of operations. As of December 31, 2020 and 2019, the VAT payable was $95,918 and $80,993, respectively. Cost of revenue Cost of revenue for conference and events mainly consist of rental cost, enhancements on the location where the events are held, traveling expense, labor cost, lodging cost, etc. Income taxes The Company accounts for income taxes using the liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance against deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. The components of the deferred tax assets and liabilities are individually classified as non-current based on their characteristics. The Company accounts for uncertainty in income taxes and the evaluation of a tax position is a two-step process. The first step is to determine whether it is more likely than not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigation based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50 percent likelihood of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met. The Company recognizes interest on non-payment of income taxes under requirement by tax law and penalties associated with tax positions when a tax position does not meet the minimum statutory threshold to avoid payment of penalties. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances, where the underpayment of taxes is more than RMB 100,000. In the case of transfer pricing issues and tax evasion, the statute of limitation is ten years and twenty years, respectively. The tax returns of the Company’s subsidiary and the PRC Operating Companies are subject to examination by the relevant tax authorities. The Company did not have any material interest or penalties associated with tax positions and did not have any significant unrecognized uncertain tax positions as of December 31, 2020 and 2019, respectively. Commitments and Contingencies In the normal course of business, the Company is subject to contingencies, including legal proceedings and claims arising out of the business that relate to a wide range of matters, such as government investigations and tax matters. The Company recognizes a liability for such contingency if it determines it is probable that a loss has occurred and a reasonable estimate of the loss can be made. The Company may consider many factors in making these assessments including historical and specific facts and circumstances of each matter. Earnings (losses) per share Basic earnings (losses) per share are computed by dividing net income (losses) attributable to holders of common stock by the weighted average number of common stock outstanding during the year. Diluted earnings (losses) per share reflect the potential dilution that could occur if securities to issue common stock were exercised. The dilutive effect of outstanding share-based awards is reflected in the diluted earnings (losses) per share by application of the treasury stock method. Dilutive equivalent shares are excluded from the calculation in loss periods, as their effects would be anti-dilutive. There were no potentially dilutive securities outstanding as of December 31, 2020 and 2019, respectively. Comprehensive income (loss) Comprehensive income (loss) is defined to include all changes in shareholders’ equity except those resulting from investments by owners and distributions to owners. The Company presents items of net income (loss) and other comprehensive income (loss) in one continuous statement, the Consolidated Statements of Operations and Comprehensive income (loss). The components of other comprehensive income or loss consist solely of foreign currency translation adjustments. Defined contribution plan The full-time employees of the PRC Operating Companies are entitled to staff welfare benefits including medical care, pension benefits, unemployment insurance and other welfare, which are government mandated defined contribution plans. The Company is required to accrue for these benefits based on certain percentages of the employees’ respective salaries, subject to certain ceilings, in accordance with the relevant PRC regulations, and make cash contributions to the state-sponsored plans out of the amounts accrued. Total expenses for the plans were $4,704, $16,710, and $11,903, for the years ended December 31, 2020, 2019 and 2018, respectively. As of December 31, 2020 and 2019, the accrued contribution was $80 and $0, respectively. Recently issued accounting pronouncements In August 2018, the FASB Accounting Standards Board issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). ASU 2018-13 modifies the disclosure requirements on fair value measurements. ASU 2018-13 is effective for public entities for fiscal years beginning after December 15, 2019, with early adoption permitted for any removed or modified disclosures. The removed and modified disclosures will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. The Company does not expect this guidance will have a material impact on its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes. The update is intended to simplify the current rules regarding the accounting for income taxes and addresses several technical topics including accounting for franchise taxes, allocating income taxes between a loss in continuing operations and in other categories such as discontinued operations, reporting income taxes for legal entities that are not subject to income taxes, and interim accounting for enacted changes in tax laws. The new standard is effective for fiscal years beginning after December 15, 2020; however, early adoption is permitted. The Company does not expect the adoption of this standard have a material impact on the consolidated financial statements. The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2020 | |
Variable Interest Entities | |
Note 3 - Variable interest entities | On December 5, 2018, United World WFOE entered into the Contractual Arrangements with United Culture. The significant terms of the Contractual Arrangements are summarized in “Note 1 -Nature of business and organization”. As a result of the Contractual Arrangements, the Company classifies United Culture as a VIE. A VIE is an entity that has either a total equity investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support, or whose equity investors lack the characteristics of a controlling financial interest, such as through voting rights, right to receive the expected residual returns of the entity or obligation to absorb the expected losses of the entity. The variable interest holder, if any, that has a controlling financial interest in a VIE is deemed to be the primary beneficiary and must consolidate the VIE. United World WFOE is deemed to have a controlling financial interest and be the primary beneficiary of United Culture, the PRC operating company, because it has both of the following characteristics: (1) The power to direct activities at VIE that most significantly impact such entity’s economic performance, and (2) The obligation to absorb losses of, and the right to receive benefits from, the operating company that could potentially be significant to such entity. The Company concludes it maintains the power criterion since United World BVI directs the activities that impact the underlying economics of the VIE. One example of such an activity is that United World BVI’s officers, which is composed of senior employees across United World BVI’s departments, is responsible for monitoring performance and allocating resources and capital to VIE. Further, since United World BVI maintains a priority earnings position in the VIE and has the ability and obligation to absorb the losses of the VIE, United World BVI also meets the losses/benefits criterion. The Contractual Arrangements are designed so that the VIE operates for the benefit of United World WFOE and ultimately, United World BVI. Accordingly, the accounts of VIE are consolidated in the accompanying financial statements pursuant to ASC 810-10, Consolidation The Contractual Arrangements may not be as effective in providing the United World BVI with control over the VIE as direct ownership. Due to its VIE structure, United World BVI has to rely on contractual rights to effect control and management of the VIE, which exposes it to the risk of potential breach of contract by the shareholders of the VIE for a number of reasons. For example, their interests as shareholders of the VIE and the interests of United World BVI may conflict and United World BVI may fail to resolve such conflicts; the shareholders may believe that breaching the contracts will lead to greater economic benefit for them; or the shareholders may otherwise act in bad faith. If any of the foregoing were to happen, United World BVI may have to rely on legal or arbitral proceedings to enforce its contractual rights, including specific performance or injunctive relief, and claiming damages. Such arbitral and legal proceedings may cost substantial financial and other resources, and result in a disruption of its business, and United World BVI cannot assure that the outcome will be in its favor. Apart from the above risks, there are no significant judgments or assumptions regarding enforceability of the contracts. In addition, as all of these contractual arrangements are governed by PRC law and provide for the resolution of disputes through either arbitration or litigation in the PRC, they would be interpreted in accordance with PRC law and any disputes would be resolved in accordance with PRC legal procedures. The legal environment in the PRC is not as developed as in other jurisdictions, such as the United States of America. As a result, uncertainties in the PRC legal system could further limit United World BVI’s ability to enforce these contractual arrangements. Furthermore, these contracts may not be enforceable in China if PRC government authorities or courts take a view that such contracts contravene PRC laws and regulations or are otherwise not enforceable for public policy reasons. In the event United World BVI is unable to enforce these contractual arrangements, it may not be able to exert effective control over the VIE, and its ability to conduct its business may be materially and adversely affected. The assets of the VIE can be used only to settle obligations of the VIE. Liabilities recognized as a result of consolidating the VIE do not represent additional claims on United World BVI’s general assets; rather, they represent claims against the specific assets of the VIE. The carrying amount of the VIE’s assets and liabilities are as follows for the periods indicated: December 31, 2020 December 31, 2019 Total assets $ 3,123,702 $ 2,997,148 Total liabilities $ 187,111 $ 92,243 The operating results of the VIE are as follows for the years indicated: 2020 2019 2018 Revenue $ 1,010,435 $ 919,172 $ 1,085,454 Net profit (loss) $ (152,156 ) $ (2,111,710 ) $ 160,216 |
Accounts Receivable Net
Accounts Receivable Net | 12 Months Ended |
Dec. 31, 2020 | |
Accounts Receivable Net | |
Note 4 - Accounts receivable, net | Accounts receivable, net consisted of the following as of the date indicated: December 31, 2020 December 31, 2019 Accounts receivable $ 208,341 $ 295,265 Accounts receivable - related parties $ 451,030 $ 53,458 Less: allowance for doubtful accounts $ 177,716 $ 125,180 Total accounts receivable, net $ 481,656 $ 223,543 Bad debt expenses were $95,736, $125,180 and $0 for the years ended December 31, 20120, 2019 and 2018, respectively. |
Other receivables prepayments a
Other receivables prepayments and other current assets | 12 Months Ended |
Dec. 31, 2020 | |
Other receivables prepayments and other current assets | |
Note 5 - Other receivables, prepayments and other current assets | As of December 31, 2020 and 2019, other receivables were $24,036 and $919,342, respectively. Prepayments and other current assets consisted of the following as of the date indicated: December 31, 2020 December 31, 2019 Deposit $ - $ 5,714 Prepaid event costs $ - $ 28,292 Prepaid software development fees $ 271,799 $ 430,836 Prepaid product costs $ 45,249 $ 97,010 Prepaid expenses $ 121,605 $ 63,257 Total $ 438,653 $ 625,109 Prepaid event costs consisted of payments made during planning stage and deposits to secure rooms and spaces for events and conferences. The event costs will be expensed upon performance of services and the excess amounts will be refunded. Prepaid software development fees were made to unrelated parties for development of a soft media platform, applications, and films. As of the date of this report, the development had not been completed. Prepaid product costs were made to several unrelated companies for products to be sold through live streaming channels. Prepaid expenses primarily consisted of prepayment made for services. |
Property and Equipment Net
Property and Equipment Net | 12 Months Ended |
Dec. 31, 2020 | |
Property and Equipment Net | |
Note 6 - Property and equipment, net | Property and equipment consisted of the following as of the date indicated: December 31, 2020 December 31, 2019 Office equipment and furniture $ 23,198 $ 21,755 Leasehold improvements $ 11,932 $ 11,192 Less: accumulated depreciation $ (20,147 ) $ (10,333 ) Plant and equipment, net $ 14,983 $ 22,614 Depreciation expenses were $8,640, $5,445 and $2,644 for the years ended December 31, 2020, 2019 and 2018, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions | |
Note 7 - Related party transactions | The following is the list of the related parties to which the Company has transactions with: (a) Jiangsu United RV-Sharing Management Co., Ltd. (“JURV”), the entity in which the Company’s majority shareholders, Mr. Hong Wang and his spouse, Ms. Chunxue Zhou, beneficially own 22.55% equity interest. (b) Xuete (Shanghai) Network Technology Co., Ltd. (“Xuete”), the entity in which the Company’s shareholder, Ms. Chunxue Zhou, spouse of Mr. Hong Wang, owns 92.0% equity interest. (c) Sandushuizun County Sanshui Yijia Travel Services Co., Ltd. (“Sanshui Yijia”), the entity in which the Company’s majority shareholder, Mr. Hong Wang owns 90% equity interest. (d) Beijing Xuete Northern Medical Biotechnology Co., Ltd. (“Beijing Xuete”), the entity in which the Company’s shareholder, Ms. Chunxue Zhou, spouse of Mr. Hong Wang, owns 55.2% equity interest. (e) Shenzhen Boruiju Culture Media Co., Ltd. (“Shenzhen Boruiju”) (previously named Shenzhen United Netgame Culture Media Co., Ltd. (“Shenzhen United Netgame”), the entity in which the Company’s majority shareholders, Mr. Hong Wang and his spouse, Ms. Chunxue Zhou, beneficially own 63.57% equity interest. (f) Dongguan Artist Network Technology Co., Ltd. (“Dongguan Artist Network”), the entity in which the Company’s majority shareholder, Mr. Hong Wang owns 54% equity interest. (g) Hangzhou Guanding Education Information Consulting Co., Ltd. (“Hangzhou Guanding”), the entity in which the Company’s majority shareholder, Mr. Hong Wang and his spouse, Ms. Chunxue Zhou, beneficially own 8.43% equity interest (h) Hangzhou Jituji Digital Technology Co., Ltd. (“Hangzhou Jituji”), the entity in which the Company’s majority shareholders, Mr. Hong Wang and his spouse, Ms. Chunxue Zhou, beneficially own 10.53% equity interest. (i) Shenzhen Qianhai Wanshangbao Technology Co., Ltd. (“Wanshangbao”), the entity in which the Company’s shareholder, Ms. Chunxue Zhou, spouse of Mr. Hong Wang, owns 33% equity interest. (j) Guizhou United World Enterprise Management Co., Ltd. (“Guizhou United World”), the entity in which the Company’s majority shareholder, Mr. Hong Wang owns 90% equity interest. (k) Huoerguosi Guoranfeifan Culture Development Co., Ltd. (“Huoerguosi Guoranfeifan”), the entity in which the Company’s majority shareholder, Mr. Hong Wang owns 90% equity interest. Accounts receivable - related parties Accounts receivable from related parties consisted of the following as of the dates indicated: Name of related party December 31, 2020 December 31, 2019 (a) JURV $ 91,876 $ - (b) Xuete $ 45,172 $ - (c) Sanshui Yijia $ 188,573 $ - (d) Beijing Xuete $ 29,400 $ 34,754 (e) Shenzhen Boruiju $ 35,678 $ - (f) Dongguan Artist Network $ 27,563 $ - (g) Hangzhou Guanding $ - $ - (h) Hangzhou Jituji $ - $ - (i) Wanshangbao $ 15,160 $ - (j) Guizhou United World $ 9,953 $ 18,704 (k) Huoerguosi Guoranfeifan $ 7,656 $ - Total $ 451,031 $ 53,458 Accounts receivable from related parties were resulted from events organized during the years ended December 31, 2020 and 2019. For the years ended December 31, 2020, 2019 and 2018, the Company recognized revenues of $374,199, $363,370 and $666,505, respectively, from related parties. Prepayments - related parties Prepayments to related parties were for consulting, marketing, IT services and future event organizing costs, which consisted of the following as of the dates indicated: Name of related party December 31, 2020 December 31, 2019 (a) JURV $ 11,178 $ - (b) Xuete $ 136,641 $ 125,119 (e) Shenzhen Boruiju $ 633,842 $ 143,325 (f) Dongguan Artist Network $ 22,001 $ 23,997 (g) Hangzhou Guanding $ 12,204 $ - (h) Hangzhou Jituji $ 5,068 $ - (i) Wanshangbao $ 54,664 $ 10,900 (j) Guizhou United World $ 20,283 $ 1,781 (k) Huoerguosi Guoranfeifan $ 39,279 $ 45,604 Total $ 935,160 $ 350,726 Other payables - related parties Other payables to related parties at December 31, 2019 consisted of payment of $3,878 made by Mr. Hong Wang, the CEO and majority shareholder of the Company, on behalf of the Company. As of December 31, 2020, other payables to related parties was $0. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes | |
Note 8 - Income Taxes | British Virgin Islands United World BVI is incorporated in the British Virgin Islands and conducts all of its businesses through its PRC subsidiary and VIE. Under the current laws of the British Virgin Islands, United World BVI is not subject to tax on income or capital gains. In addition, upon payments of dividends by these entities to their shareholders, no British Virgin Islands withholding tax will be imposed. Hong Kong United World HK is incorporated in the Hong Kong and conducts all of its businesses through its PRC subsidiary and VIE. Companies registered in Hong Kong are subject to Hong Kong Profits Tax on the taxable income as reported in their respective statutory financial statements adjusted in accordance with relevant Hong Kong tax laws. The applicable tax rate is 16.5% in Hong Kong. The Company did not make any provisions for Hong Kong profit tax as there were no assessable profits derived from or earned in Hong Kong since inception. Under Hong Kong tax law, United World HK is exempted from income tax on its foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends. PRC United World WFOE and the VIE are governed by the income tax laws of the PRC and the income tax provision in respect to operations in the PRC is calculated at the applicable tax rates on the taxable income for the periods based on existing legislation, interpretations and practices in respect thereof. Under the Enterprise Income Tax Laws of the PRC (the “EIT Laws”), Chinese enterprises are subject to income tax at a rate of 25% after appropriate tax adjustments Under the EIT Laws, dividends paid by PRC enterprises out of profits earned post-2007 to non-PRC tax resident investors are subject to PRC withholding tax of 10%. A lower withholding tax rate may be applied based on applicable tax treaty with certain countries. The EIT Laws also provide that enterprises established under the laws of foreign countries or regions and whose “place of effective management” is located within the PRC are considered PRC tax resident enterprises and subject to PRC income tax at the rate of 25% on worldwide income. The definition of “place of effective management” refers to an establishment that exercises, in substance, overall management and control over the production and business, personnel, accounting, properties, and other aspects of an enterprise. No detailed interpretation or guidance has been issued to define “place of effective management”. Furthermore, the administrative practice associated with interpreting and applying the concept of “place of effective management” is unclear. If the Company and its Hong Kong subsidiary are deemed as PRC tax residents, it would be subject to PRC tax under the EIT Law. The Company has analyzed the applicability of this law, and for each of the periods presented, the Company has not accrued for PRC tax on such basis. The Company will continue to monitor changes in the interpretation and/or guidance of this law. The Company’s PRC Operating Companies have an aggregate net operating loss carry forward available amounting to approximately $2.7 million to offset taxable income of the individual subsidiaries for the next ten years. Uncertain tax positions There were no unrecognized tax benefits as of December 31, 2020 and 2019, respectively. Management does not anticipate any potential future adjustments in the next twelve months, which would result in a material change to its tax positions. For periods presented, the Company did not incur any interest and penalties. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity | |
Note 9 - Equity | Common Stock United World Holding Group Ltd (“United World BVI”) is a holding company incorporated on July 5, 2018, under the laws of the British Virgin Islands. The authorized number of common stock is 500 million shares with a par value of $0.0001 per share. In July and August 2018, United World BVI issued total of 20 million shares of common stock to Mr. Hong Wang and his spouse, Chunxue Zhou for a total consideration of $2,000. Immediately before and after the restructuring completed on December 5, 2018 as described above, Mr. Hong Wang and his spouse controlled the United World BVI and its subsidiaries and PRC Operating Company; therefore, the restructuring was effectively a legal recapitalization accounted for as transactions between entities under common control at historical cost basis, in a manner similar to pooling-of-interest accounting. The effect of the restructuring was applied retroactively to all the periods presented in the consolidated financial statements as if the current structure existed since inception. On December 7, 2018, through a Regulation S offering, the Company sold a total of 2,354,793 ordinary shares to 58 shareholders, at a price of $1.00 per share for an aggregate purchase price amount of $2,354,793. As of December 31, 2018, the subscribed amount of $2,354,793 was recorded as subscription receivable. The Company received the full subscribed amount of $2,354,793 in 2019. The shares sold were not registered under the Securities Act in reliance on an exemption from registration set forth in Regulation S. As of December 31, 2020 and 2019, the numbers of issued and outstanding shares of common stock were 22,354,793 and 22,354,793, respectively. Restricted net assets The registered capital of the VIE was RMB 23 million (approximately $3.6 million), which was fully paid in during the period ended June 30, 2018. As of December 31, 2020 and 2019, the VIE’s total paid in capital was $4,221,843 and $4,221,843, respectively. The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by United World WFOE and the VIE only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the consolidated financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of United World WFOE and the VIE in accordance with the PRC statutory laws and regulation. Each of the PRC Operating Companies is required to set aside at least 10% of its after-tax profits each year, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of its registered capital. In addition, United World WFOE may allocate a portion of its after-tax profits based on PRC accounting standards to enterprise expansion fund and staff bonus and welfare fund at its discretion. The VIE may allocate a portion of its after-tax profits based on PRC accounting standards to a discretionary surplus fund at its discretion. The statutory reserve funds and the discretionary funds are not distributable as cash dividends. Remittance of dividends by a wholly foreign-owned company out of China is subject to examination by the banks designated by State Administration of Foreign Exchange. As of December 31, 2020 and 2019, the PRC Operating Companies did not have any appropriation of retained earnings for their statutory reserves. As a result of the foregoing restrictions, PRC Operating Companies are restricted in their ability to transfer their net assets to United World BVI. Foreign exchange and other regulation in the PRC may further restrict the PRC Operating Companies from transferring funds to United World BVI in the form of dividends, loans and advances. As of December 31, 2020 and 2019, amounts restricted are the net assets of the PRC Operating Companies, which amounted to $1,994,628 and $2,149,535, respectively. |
Concentration of Risk
Concentration of Risk | 12 Months Ended |
Dec. 31, 2020 | |
Concentration of Risk | |
Note 10 - Concentration of risk | Credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. As of December 31, 2020 and 2019, $151,770 and $249,430 were deposited with various major financial institutions located in Hong Kong and PRC, respectively. While management believes that these financial institutions are of high credit quality, it also continually monitors their credit worthiness. Accounts receivable are typically unsecured and derived from revenue earned from customers, thereby exposed to credit risk. The risk is mitigated by the Company’s assessment of its customers’ creditworthiness and its ongoing monitoring of outstanding balances. The Company maintains reserves for estimated credit losses, and such losses have generally been within expectations. Customer and vendor concentration risk For the year ended December 31, 2020, one customer accounted for 10% of the Company’s total revenues. For the year ended December 31, 2019, none of the customers accounted for more than 10% of the Company’s total revenues. For the year ended December 31, 2018, three customers accounted for 47% of the Company’s total revenues. Revenues from related parties accounted for 37%, 40%, and 61% of the total revenues for the years ended December 31, 2020, 2019, and 2018. For the year ended December 31, 2020, two suppliers accounted for 88% of the Company’s total purchases. For the year ended December 31, 2019, none of our suppliers accounted for more than 10% of the Company’s total purchases. For the year ended December 31, 2018, one supplier accounted for 38% of the Company’s total purchases. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies | |
Note 11 - Commitments and contingencies | Lease commitment The Company has entered into a lease agreement for office with a lease period ranging from January 10, 2019 to January 9, 2022. Total commitment for the full term of the lease will be $199,085. After the adoption of ASC842, $67,330 and $121,777 of operating lease right-of-use asset and $67,330 and $121,777 of operating lease liabilities were reflected on the December 31, 2020 and 2019 financial statements. Year Ended December 31, 2020 Lease Cost Operating lease cost (included in general and administration in the Company’s consolidated statement of operations) $ 66,969 Other Information Cash paid for amounts included in the measurement of lease liabilities for the year ended December 31, 2020 $ 66,969 Remaining lease term – operating leases (in years) 2.0 Average discount rate – operating leases 8 % The supplemental balance sheet information related to leases for the period is as follows: Operating leases Right-of-use assets $ 67,330 Total operating lease assets $ 67,330 Short-term operating lease liabilities $ 67,330 Long-term operating lease liabilities $ - Total operating lease liabilities $ 67,330 Year Ended December 31, 2019 Lease Cost Operating lease cost (included in general and administration in the Company’s consolidated statement of operations) $ 66,875 Other Information Cash paid for amounts included in the measurement of lease liabilities for the year ended December 31, 2019 $ 57,712 Remaining lease term – operating leases (in years) 2.0 Average discount rate – operating leases 8 % The supplemental balance sheet information related to leases for the period is as follows: Operating leases Right-of-use assets $ 121,777 Total operating lease assets $ 121,777 Short-term operating lease liabilities $ 58,630 Long-term operating lease liabilities $ 63,147 Total operating lease liabilities $ 121,777 Maturities of the Company’s lease liabilities are as follows: Operating Years ending December 31, 2021 Lease 2021 $ 70,758 Total lease payments 70,758 Less: Imputed interest/present value discount (3,428 ) Present value of lease liabilities $ 67,330 Contingencies The Company is currently not a party to any material legal proceedings, investigation or claims. However, the Company, from time to time, may be involved in legal matters arising in the ordinary course of its business. While management believes that such matters are currently not material, there can be no assurance that matters arising in the ordinary course of business for which the Company is or could become involved in litigation, will not have a material adverse effect on its business, financial condition or results of operations. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events | |
Note 12 - Subsequent events | In an effort to contain or slow the COVID-19 outbreak, authorities across the world have implemented various measures, some of which have been subsequently rescinded or modified, including travel bans, stay-at-home orders and shutdowns of certain businesses. The Company anticipates that these actions and the global health crisis caused by the COVID-19 outbreak, including any resurgences, will continue to negatively impact global economic activity. While the COVID-19 outbreak has not been fully contained, the Company expects negative impact on the Company’s business will continue during 2021. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies | |
Basis of presentation | The accompanying consolidated financial statements have been prepared in accordance with the generally accepted accounting principles in the United States of America (“U.S. GAAP”). The Company’s fiscal year end date is December 31. |
Principles of consolidation | The consolidated financial statements include the accounts of United World BVI, its subsidiaries, and the VIE. All intercompany transactions and balances between United World BVI, its subsidiaries and the VIE are eliminated upon consolidation. |
Use of estimates and assumptions | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s consolidated financial statements include fair value of assets and liabilities, the useful lives of property and equipment, collectability of receivables, and realization of deferred tax assets. Actual results could differ from these estimates. |
Foreign currency translation and transactions | The reporting currency of United World BVI is the U.S. dollar (USD). United World BVI uses USD as its functional currency. United World BVI’s subsidiaries and the VIE in China and Hong Kong use the local currency, Renminbi (“RMB”) and Hong Kong dollar (“HKD”), as their functional currency, respectively. Assets and liabilities are translated at the current exchange rate as quoted by the People’s Bank of China (the “PBOC”) at the end of the period. Income and expense accounts are translated at the average translation rates and the equity accounts are translated at historical rates. Translation adjustments resulting from this process are included in accumulated other comprehensive income (loss) in the statement of changes in equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. The balance sheet amounts, with the exception of equity, on December 31, 2020 and 2019, were translated at 6.5306 RMB and 6. 9632 RMB to $1.00, respectively. The equity accounts were stated at their historical rates. The average translation rates applied to statements of operations and comprehensive income (loss) accounts for the years ended December 31, 2020, 2019 and 2018 were 6.9001 RMB, 6.9098 RMB and 6.6199 RMB to $1.00, respectively. Cash flows were also translated at average translation rates for the periods and, therefore, amounts reported on the statement of cash flows would not necessarily agree with changes in the corresponding balances on the consolidated balance sheet. The transactions dominated in HKD are immaterial. |
Cash and cash equivalents | Cash includes cash on hand and demand deposits in accounts maintained with commercial banks within the PRC. The Company considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. Cash balances in bank accounts in PRC are not insured by the Federal Deposit Insurance Corporation or other programs. |
Accounts receivable | During the normal course of business, the Company extends unsecured credit to its customers. Accounts receivable are stated at the amount the Company expects to collect from customers. Management reviews its accounts receivable balances each reporting period to determine if an allowance for doubtful accounts is required. An allowance for doubtful accounts is recorded in the period in which loss is determined to be probable based on assessment of specific evidence indicating doubtful collection, historical experience, account balance aging and prevailing economic conditions. Bad debts are written off against the allowance after all collection efforts have ceased. For the years ended December 31, 2020, 2019 and 2018, the Company recorded bad debt expenses of $95,736, $125,180, and $0, respectively. The average collection term for accounts receivable was three to twelve months. |
Inventories | Inventories consist of finished goods, including dietary supplements and cosmetic products ready for sale and are stated at the lower of cost or net realizable value. The Company values inventories using the weighted average costing method. The Company’s policy is to include as a part of inventories any freight incurred to ship the products from contract manufacturers to its warehouses. Outbound delivery costs for shipping to customers are considered period costs and reflected in selling, general and administrative expenses. The Company regularly review inventories and consider forecasts of future demand, market conditions and product obsolescence. If the estimated realizable value of inventories is less than cost, the Company makes provisions to reduce its carrying value to its estimated market value. As of December 31, 2020 and 2019, the balance for the inventories totaled $1,312,153 and $1,113,783, respectively. There was no obsolescence reserve at December 31, 2020 and 2019, respectively. |
Property and equipment | Property and equipment are stated at historical cost. Depreciation is provided over the estimated useful life of each class of depreciable assets and is computed using the straight-line method over the useful lives of the assets are as follows: Useful Life Office equipment and furniture 3-5 years The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the consolidated statements of operations. Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. |
Impairment for long-lived assets | Long-lived assets, including, property and equipment and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated discounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When the Company identifies an impairment, the Company reduces the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. As of December 31, 2020 and 2019, management believes no impairment charge is necessary. |
Leases | In February 2016, the FASB established Topic 842, Leases, by issuing ASU No. 2016-02, which requires lessees to recognize the rights and obligations created by leases on the balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-11, Targeted Improvements, ASU No. 2018-10, Codification Improvements to Topic 842, and ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the statement of operations. The new standard became effective April 1, 2019. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. The Company adopted the new standard on January 1, 2019 using the modified retrospective transition approach as of the effective date of the initial application. The new standard provides a number of optional practical expedients in transition. The Company elected the “package of practical expedients”, which permits entities not to reassess under the new lease standard prior conclusions about lease identification, lease classification and initial direct costs. The Company does not expect to elect the use-of-hindsight or the practical expedient pertaining to land easements. The most significant effects of the adoption of the new standard relate to the recognition of new ROU assets and lease labilities on our balance sheet for office operating leases and providing significant new disclosures about our leasing activities. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company has also elected the short-term leases recognition exemption for all leases that qualify. This means that the Company will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets and lease liabilities, for existing short-term leases of those assets in transition. The Company also currently expects to elect the practical expedient to not separate lease and non-lease components for its leases. All existing leases are reported under this rule. Under ASC 840, leases were classified as either capital or operating, and the classification significantly impacted the effect the contract had on the company’s financial statements. Capital lease classification resulted in a liability that was recorded on a company’s balance sheet, whereas operating leases did not impact the balance sheet. Since the Company elected not to recast the prior year financial statements and the Company did not have any long term lease contracts prior to 2019, the Company did not have operating lease right-of-use asset or operating lease liabilities for prior year financial statements after the new adoption. As of December 31, 2020 and 2019, the Company had $67,330 and $121,777 of operating lease right-of-use asset and $67,330 and $121,777 of operating lease liabilities, respectively. |
Fair value measurement | The Company adopted ASC Topic 820, Fair Value Measurements and Disclosures ASC Topic 820 defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) on the measurement date in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability. ASC Topic 820 specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is as follows: Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. Unobservable inputs are valuation technique inputs that reflect the Company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Management of the Company is responsible for determining the assets acquired, liabilities assumed and intangibles identified as of the acquisition date and considered a number of factors including valuations from independent appraiser. When available, the Company uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Company measures fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and currency rates. As of December 31, 2020 and 2019, there are no assets or liabilities that are measured and reported at fair value on a recurring basis. |
Fair values of financial instruments | Financial instruments include cash and cash equivalents, accounts receivable, prepayments and other current assets, other payable and accrued liabilities, advance from related parties, and taxes payable. The Company considers the carrying amount of short-term financial instrument to approximate their fair values because of the short period of time between the origination of such instruments and their expected realization. |
Revenue recognition | The Company’s revenue is primarily generated from organizing conferences and events. Before 2018, the Company followed ASC 605 and recognized revenue based on revenue recognition criteria as below: 1) persuasive evidence of an arrangement exists, 2) transfer of title has occurred or services have been rendered, 3) the selling price is fixed or determinable and 4) collectability is reasonably assured. The Company adopted Accounting Standards Codification (“ASC”) 606 in the first quarter of 2018 using the modified retrospective approach. ASC 606, Revenue from Contracts with Customers, establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The Company has assessed the impact of the guidance by performing the following five steps analysis: Step 1: Identify the contract Step 2: Identify the performance obligations Step 3: Determine the transaction price Step 4: Allocate the transaction price Step 5: Recognize revenue Based on the assessment, the Company concluded that there was no change to the timing and pattern of revenue recognition for its current revenue streams in scope of Topic 606 and therefore there were no material changes to the Company’s consolidated financial statements upon adoption of ASC 606. The PRC operating companies were subject to value added tax (VAT) and related surcharges on the revenue earned for services provided in China. The applicable business tax rate was 3%. Business tax and related surcharges are deducted from revenues before arriving at net revenues. Revenue is recognized net of VAT in the consolidated statement of operations. As of December 31, 2020 and 2019, the VAT payable was $95,918 and $80,993, respectively. |
Cost of revenue | Cost of revenue for conference and events mainly consist of rental cost, enhancements on the location where the events are held, traveling expense, labor cost, lodging cost, etc. |
Income taxes | The Company accounts for income taxes using the liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance against deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. The components of the deferred tax assets and liabilities are individually classified as non-current based on their characteristics. The Company accounts for uncertainty in income taxes and the evaluation of a tax position is a two-step process. The first step is to determine whether it is more likely than not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigation based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50 percent likelihood of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met. The Company recognizes interest on non-payment of income taxes under requirement by tax law and penalties associated with tax positions when a tax position does not meet the minimum statutory threshold to avoid payment of penalties. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances, where the underpayment of taxes is more than RMB 100,000. In the case of transfer pricing issues and tax evasion, the statute of limitation is ten years and twenty years, respectively. The tax returns of the Company’s subsidiary and the PRC Operating Companies are subject to examination by the relevant tax authorities. The Company did not have any material interest or penalties associated with tax positions and did not have any significant unrecognized uncertain tax positions as of December 31, 2020 and 2019, respectively. |
Commitments and Contingencies | In the normal course of business, the Company is subject to contingencies, including legal proceedings and claims arising out of the business that relate to a wide range of matters, such as government investigations and tax matters. The Company recognizes a liability for such contingency if it determines it is probable that a loss has occurred and a reasonable estimate of the loss can be made. The Company may consider many factors in making these assessments including historical and specific facts and circumstances of each matter. |
Earnings (losses) per share | Basic earnings (losses) per share are computed by dividing net income (losses) attributable to holders of common stock by the weighted average number of common stock outstanding during the year. Diluted earnings (losses) per share reflect the potential dilution that could occur if securities to issue common stock were exercised. The dilutive effect of outstanding share-based awards is reflected in the diluted earnings (losses) per share by application of the treasury stock method. Dilutive equivalent shares are excluded from the calculation in loss periods, as their effects would be anti-dilutive. There were no potentially dilutive securities outstanding as of December 31, 2020 and 2019, respectively. |
Comprehensive income (loss) | Comprehensive income (loss) is defined to include all changes in shareholders’ equity except those resulting from investments by owners and distributions to owners. The Company presents items of net income (loss) and other comprehensive income (loss) in one continuous statement, the Consolidated Statements of Operations and Comprehensive income (loss). The components of other comprehensive income or loss consist solely of foreign currency translation adjustments. |
Defined contribution plan | The full-time employees of the PRC Operating Companies are entitled to staff welfare benefits including medical care, pension benefits, unemployment insurance and other welfare, which are government mandated defined contribution plans. The Company is required to accrue for these benefits based on certain percentages of the employees’ respective salaries, subject to certain ceilings, in accordance with the relevant PRC regulations, and make cash contributions to the state-sponsored plans out of the amounts accrued. Total expenses for the plans were $4,704, $16,710, and $11,903, for the years ended December 31, 2020, 2019 and 2018, respectively. As of December 31, 2020 and 2019, the accrued contribution was $80 and $0, respectively. |
Recently issued accounting pronouncements | In August 2018, the FASB Accounting Standards Board issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). ASU 2018-13 modifies the disclosure requirements on fair value measurements. ASU 2018-13 is effective for public entities for fiscal years beginning after December 15, 2019, with early adoption permitted for any removed or modified disclosures. The removed and modified disclosures will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. The Company does not expect this guidance will have a material impact on its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes. The update is intended to simplify the current rules regarding the accounting for income taxes and addresses several technical topics including accounting for franchise taxes, allocating income taxes between a loss in continuing operations and in other categories such as discontinued operations, reporting income taxes for legal entities that are not subject to income taxes, and interim accounting for enacted changes in tax laws. The new standard is effective for fiscal years beginning after December 15, 2020; however, early adoption is permitted. The Company does not expect the adoption of this standard have a material impact on the consolidated financial statements. The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows. |
Nature of Business and Organi_2
Nature of Business and Organization (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Nature of Business and Organization | |
Schedule of United World BVI's subsidiaries/VIEs | Name Principle of business Country of incorporation Date of incorporation Ownership United World (Hong Kong) Holding Group Limited (“United World HK”) Holding company Hong Kong August 7, 2018 100% Yunnan United World Enterprise Management Company Limited (“United World WFOE”) Holding company and deemed a wholly foreign owned enterprise (“WFOE”) PRC September 13, 2018 100% United Culture Exchange (Beijing) Company Limited (“United Culture”) Conferences and event organizing and B&B inns PRC October 31, 2016 VIE by contractual arrangements |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies | |
Schedule of estimated useful life | Useful Life Office equipment and furniture 3-5 years |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Variable Interest Entities | |
Schedule of variable interest entities | December 31, 2020 December 31, 2019 Total assets $ 3,123,702 $ 2,997,148 Total liabilities $ 187,111 $ 92,243 2020 2019 2018 Revenue $ 1,010,435 $ 919,172 $ 1,085,454 Net profit (loss) $ (152,156 ) $ (2,111,710 ) $ 160,216 |
Accounts Receivable Net (Tables
Accounts Receivable Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounts Receivable Net | |
Summary of accounts receivable | December 31, 2020 December 31, 2019 Accounts receivable $ 208,341 $ 295,265 Accounts receivable - related parties $ 451,030 $ 53,458 Less: allowance for doubtful accounts $ 177,716 $ 125,180 Total accounts receivable, net $ 481,656 $ 223,543 |
Other receivables prepayments_2
Other receivables prepayments and other current assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other receivables prepayments and other current assets | |
Schedule of other receivables prepayments and other current assets | December 31, 2020 December 31, 2019 Deposit $ - $ 5,714 Prepaid event costs $ - $ 28,292 Prepaid software development fees $ 271,799 $ 430,836 Prepaid product costs $ 45,249 $ 97,010 Prepaid expenses $ 121,605 $ 63,257 Total $ 438,653 $ 625,109 |
Property and Equipment Net (Tab
Property and Equipment Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property and Equipment Net | |
Schedule of property and equipment | December 31, 2020 December 31, 2019 Office equipment and furniture $ 23,198 $ 21,755 Leasehold improvements $ 11,932 $ 11,192 Less: accumulated depreciation $ (20,147 ) $ (10,333 ) Plant and equipment, net $ 14,983 $ 22,614 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions | |
Schedule of accounts receivable from related parties | Name of related party December 31, 2020 December 31, 2019 (a) JURV $ 91,876 $ - (b) Xuete $ 45,172 $ - (c) Sanshui Yijia $ 188,573 $ - (d) Beijing Xuete $ 29,400 $ 34,754 (e) Shenzhen Boruiju $ 35,678 $ - (f) Dongguan Artist Network $ 27,563 $ - (g) Hangzhou Guanding $ - $ - (h) Hangzhou Jituji $ - $ - (i) Wanshangbao $ 15,160 $ - (j) Guizhou United World $ 9,953 $ 18,704 (k) Huoerguosi Guoranfeifan $ 7,656 $ - Total $ 451,031 $ 53,458 |
Schedule of prepayments - related parties | Name of related party December 31, 2020 December 31, 2019 (a) JURV $ 11,178 $ - (b) Xuete $ 136,641 $ 125,119 (e) Shenzhen Boruiju $ 633,842 $ 143,325 (f) Dongguan Artist Network $ 22,001 $ 23,997 (g) Hangzhou Guanding $ 12,204 $ - (h) Hangzhou Jituji $ 5,068 $ - (i) Wanshangbao $ 54,664 $ 10,900 (j) Guizhou United World $ 20,283 $ 1,781 (k) Huoerguosi Guoranfeifan $ 39,279 $ 45,604 Total $ 935,160 $ 350,726 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies | |
Schedule of other information related to leases | Year Ended December 31, 2020 Lease Cost Operating lease cost (included in general and administration in the Company’s consolidated statement of operations) $ 66,969 Other Information Cash paid for amounts included in the measurement of lease liabilities for the year ended December 31, 2020 $ 66,969 Remaining lease term – operating leases (in years) 2.0 Average discount rate – operating leases 8 % The supplemental balance sheet information related to leases for the period is as follows: Operating leases Right-of-use assets $ 67,330 Total operating lease assets $ 67,330 Short-term operating lease liabilities $ 67,330 Long-term operating lease liabilities $ - Total operating lease liabilities $ 67,330 Year Ended December 31, 2019 Lease Cost Operating lease cost (included in general and administration in the Company’s consolidated statement of operations) $ 66,875 Other Information Cash paid for amounts included in the measurement of lease liabilities for the year ended December 31, 2019 $ 57,712 Remaining lease term – operating leases (in years) 2.0 Average discount rate – operating leases 8 % The supplemental balance sheet information related to leases for the period is as follows: Operating leases Right-of-use assets $ 121,777 Total operating lease assets $ 121,777 Short-term operating lease liabilities $ 58,630 Long-term operating lease liabilities $ 63,147 Total operating lease liabilities $ 121,777 Maturities of the Company’s lease liabilities are as follows: |
Schedule of minimum lease payments under this operating lease | Operating Years ending December 31, 2021 Lease 2021 $ 70,758 Total lease payments 70,758 Less: Imputed interest/present value discount (3,428 ) Present value of lease liabilities $ 67,330 |
Nature of Business and Organi_3
Nature of Business and Organization (Details) | 12 Months Ended |
Dec. 31, 2020 | |
United World HK [Member] | |
Principle of business | Holding company |
Country of incorporation | Hong Kong |
Date of incorporation | Aug. 7, 2018 |
Ownership | 100.00% |
United World WFOE [Member] | |
Principle of business | Holding company and deemed a wholly foreign owned enterprise ("WFOE") |
Country of incorporation | PRC |
Date of incorporation | Sep. 13, 2018 |
Ownership | 100.00% |
United Culture [Member] | |
Principle of business | Conferences and event organizing and B&B inns |
Country of incorporation | PRC |
Date of incorporation | Oct. 31, 2016 |
Ownership, description | VIE by contractual arrangements |
Nature of Business and Organi_4
Nature of Business and Organization (Details Narrative) | 12 Months Ended |
Dec. 31, 2020 | |
Nature of Business and Organization | |
Consultation and services agreement, description | The consultation and services agreement remains in effect for 30 years until December 4, 2048. The agreement can be extended only if United World WFOE gives its written consent of extension of the agreement before its expiration, and United Culture may then extend without reservation. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Office Equipment [Member] | 12 Months Ended |
Dec. 31, 2020 | |
Minimum [Member] | |
Useful lives of the assets | 3 years |
Maximum [Member] | |
Useful lives of the assets | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details Narrative) | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019CNY (¥) | |
Foreign currency translation, description | The balance sheet amounts, with the exception of equity, on December 31, 2020 and 2019, were translated at 6.5306 RMB and 6. 9632 RMB to $1.00, respectively. The equity accounts were stated at their historical rates. The average translation rates applied to statements of operations and comprehensive income (loss) accounts for the years ended December 31, 2020, 2019 and 2018 were 6.9001 RMB, 6.9098 RMB and 6.6199 RMB to $1.00, respectively. | |||
Bad debt expenses | $ 95,736 | $ 125,180 | $ 0 | |
Inventories | 1,312,153 | $ 1,113,783 | ||
Business tax rate | 3.00% | |||
VAT payable | 95,918 | $ 80,993 | ||
Total expenses | 4,704 | 16,710 | $ 11,903 | |
Accrued contribution | 80 | $ 0 | ||
Income tax benefit, percentage | 50.00% | |||
Operating lease right-of-use asset | 67,330 | $ 121,777 | ||
Operating lease liabilities | 67,330 | 121,777 | ||
RMB [Member] | ||||
Underpayment of taxes | ¥ | ¥ 100,000 | |||
Leases [Member] | ||||
Operating lease right-of-use asset | 67,330 | 121,777 | ||
Operating lease liabilities | $ 67,330 | $ 121,777 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Total assets | $ 3,425,741 | $ 3,626,324 | |
Total liabilities | 261,638 | 217,897 | |
Net profit (loss) | 580,990 | (241,010) | $ 347,912 |
Operating [Member] | |||
Revenue | 1,010,435 | 919,172 | 1,085,454 |
Net profit (loss) | (152,156) | (2,111,710) | $ 160,216 |
Balance Sheet [Member] | |||
Total assets | 3,123,702 | 2,997,148 | |
Total liabilities | $ 187,111 | $ 92,243 |
Accounts Receivable Net (Detail
Accounts Receivable Net (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts receivable - related parties | $ 451,031 | $ 53,458 |
Accounts Receivable [Member] | ||
Accounts receivable | 208,341 | 295,265 |
Accounts receivable - related parties | 451,030 | 53,458 |
Less: allowance for doubtful accounts | 177,716 | 125,180 |
Total accounts receivable, net | $ 481,656 | $ 223,543 |
Accounts Receivable Net (Deta_2
Accounts Receivable Net (Details Narrative) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts Receivable Net | |||
Bad debt expenses | $ 95,736 | $ 125,180 | $ 0 |
Other receivables prepayments_3
Other receivables prepayments and other current assets (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Other receivables prepayments and other current assets | ||
Deposit | $ 0 | $ 5,714 |
Prepaid event costs | 0 | 28,292 |
Prepaid software development fees | 271,799 | 430,836 |
Prepaid product costs | 45,249 | 97,010 |
Prepaid expenses | 121,605 | 63,257 |
Total | $ 438,653 | $ 625,109 |
Other receivables prepayments_4
Other receivables prepayments and other current assets (Details Narrative) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Other receivables prepayments and other current assets | ||
Other receivables | $ 24,036 | $ 919,342 |
Property and Equipment Net (Det
Property and Equipment Net (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Property and Equipment Net | ||
Office equipment and furniture | $ 23,198 | $ 21,755 |
Leasehold improvements | 11,932 | 11,192 |
Less: accumulated depreciation | (20,147) | (10,333) |
Plant and equipment, net | $ 14,983 | $ 22,614 |
Property and Equipment Net (D_2
Property and Equipment Net (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property and Equipment Net | |||
Depreciation expenses | $ 8,640 | $ 5,445 | $ 2,644 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts receivable from related parties | $ 451,031 | $ 53,458 |
JURV [Member] | ||
Accounts receivable from related parties | 91,876 | 0 |
Xuete [Member] | ||
Accounts receivable from related parties | 45,172 | 0 |
Sanshui Yijia [Member] | ||
Accounts receivable from related parties | 188,573 | 0 |
Wanshangbao [Member] | ||
Accounts receivable from related parties | 15,160 | 0 |
Huoerguosi Guoranfeifan [Member] | ||
Accounts receivable from related parties | 7,656 | 0 |
Beijing Xuete [Member] | ||
Accounts receivable from related parties | 29,400 | 34,754 |
Shenzhen Boruiju [Member] | ||
Accounts receivable from related parties | 35,678 | 0 |
Dongguan Artist Network [Member] | ||
Accounts receivable from related parties | 27,563 | 0 |
Hangzhou Guanding [Member] | ||
Accounts receivable from related parties | 0 | 0 |
Hangzhou Jituji [Member] | ||
Accounts receivable from related parties | 0 | 0 |
Guizhou United World [Member] | ||
Accounts receivable from related parties | $ 9,953 | $ 18,704 |
Related Party Transactions (D_2
Related Party Transactions (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Prepayments to related parties | $ 935,160 | $ 350,726 |
JURV [Member] | ||
Prepayments to related parties | 11,178 | 0 |
Xuete [Member] | ||
Prepayments to related parties | 136,641 | 125,119 |
Wanshangbao [Member] | ||
Prepayments to related parties | 54,664 | 10,900 |
Huoerguosi Guoranfeifan [Member] | ||
Prepayments to related parties | 39,279 | 45,604 |
Shenzhen Boruiju [Member] | ||
Prepayments to related parties | 633,842 | 143,325 |
Dongguan Artist Network [Member] | ||
Prepayments to related parties | 22,001 | 23,997 |
Hangzhou Guanding [Member] | ||
Prepayments to related parties | 12,204 | 0 |
Hangzhou Jituji [Member] | ||
Prepayments to related parties | 5,068 | 0 |
Guizhou United World [Member] | ||
Prepayments to related parties | $ 20,283 | $ 1,781 |
Related Party Transactions (D_3
Related Party Transactions (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues from related parties | $ 374,199 | $ 363,370 | $ 666,505 |
Other payables to related parties | $ 0 | $ 3,878 | |
JURV [Member] | |||
Equity interest | 22.55% | ||
Beijing Xuete [Member] | |||
Equity interest | 55.20% | ||
Shenzhen Boruiju [Member] | |||
Equity interest | 63.57% | ||
Dongguan Artist Network [Member] | |||
Equity interest | 54.00% | ||
Hangzhou Guanding [Member] | |||
Equity interest | 8.43% | ||
Hangzhou Jituji [Member] | |||
Equity interest | 10.53% | ||
Xuete (Shanghai) Network Technology [Member] | |||
Equity interest | 92.00% | ||
Sandushuizun County Sanshui Yijia Travel Services [Member] | |||
Equity interest | 90.00% | ||
Shenzhen Qianhai Wanshangbao Technology [Member] | |||
Equity interest | 33.00% | ||
Guizhou United World Enterprise Management [Member] | |||
Equity interest | 90.00% | ||
Huoerguosi Guoranfeifan Culture Development [Member] | |||
Equity interest | 90.00% | ||
Mr. Hong Wang [Member] | |||
Other payables to related parties | $ 3,878 |
Income Taxes (Details Narrative
Income Taxes (Details Narratives) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Net operating loss carry forward | $ 2,700,000 |
Hong Kong [Member] | |
Income Taxes Rate | 16.50% |
PRC [Member] | |
Income Taxes Rate | 10.00% |
Appropriate tax adjustments | 25.00% |
Equity (Details Narrative)
Equity (Details Narrative) | Dec. 07, 2018USD ($)integer$ / sharesshares | Aug. 31, 2018USD ($)shares | Jul. 31, 2018USD ($)shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2018CNY (¥) |
Common stock shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||||||
Common stock shares, authorized | shares | 500,000,000 | 500,000,000 | ||||||
Common stock shares issued | shares | 22,354,793 | 22,354,793 | ||||||
Common stock shares outstanding | shares | 22,354,793 | 22,354,793 | ||||||
Subscription receivable | $ 2,354,793 | $ 2,354,793 | ||||||
Variable interest entity registered capital | $ 3,600,000 | |||||||
Variable interest entity paid in capital | 4,221,843 | $ 4,221,843 | ||||||
Restricted net assets | $ 2,149,535 | $ 1,994,628 | ||||||
VIE activities description | PRC Operating Companies is required to set aside at least 10% of its after-tax profits each year, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of its registered capital. | |||||||
RMB [Member] | ||||||||
Variable interest entity registered capital | ¥ | ¥ 23,000,000 | |||||||
United World Holding Group Ltd [Member] | ||||||||
Number of shares issued in transaction | shares | 2,354,793 | 20,000,000 | 20,000,000 | |||||
Price per share | $ / shares | $ 1 | |||||||
Number of shareholders | integer | 58 | |||||||
Consideration received per transaction | $ 2,354,793 | $ 2,000 | $ 2,000 |
Concentration of Risk (Details
Concentration of Risk (Details Narrative) | 12 Months Ended | |||
Dec. 31, 2020USD ($)integer | Dec. 31, 2019USD ($)integer | Dec. 31, 2018USD ($)integer | Dec. 31, 2017USD ($) | |
Credit Risk and Concentrations | ||||
Cash and cash equivalent | $ | $ 151,770 | $ 249,430 | $ 47,149 | $ 634,855 |
Accounts Receivable [Member] | ||||
Credit Risk and Concentrations | ||||
Concentration risk, percentage | 88.00% | 10.00% | 38.00% | |
Number of supplier | 2 | 0 | 1 | |
Revenue Benchmark [Member] | Customers [Member] | ||||
Credit Risk and Concentrations | ||||
Concentration risk, percentage | 10.00% | 10.00% | 47.00% | |
Number of customers | 1 | 0 | 3 | |
Revenue Benchmark [Member] | Related Parties [Member] | ||||
Credit Risk and Concentrations | ||||
Concentration risk, percentage | 37.00% | 40.00% | 61.00% |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lease Cost | ||
Operating lease cost (included in general and administration in the Company's consolidated statement of operations) | $ 66,969 | $ 66,875 |
Other Information | ||
Cash paid for amounts included in the measurement of lease liabilities for the year ended December 31, 2019 | $ 66,969 | $ 57,712 |
Remaining lease term - operating leases (in years) | 2 years | 2 years |
Average discount rate - operating leases | 8.00% | 8.00% |
Operating leases | ||
Right-of-use assets | $ 67,330 | $ 121,777 |
Total operating lease assets | 67,330 | 121,777 |
Short-term operating lease liabilities | 67,330 | 58,630 |
Long-term operating lease liabilities | 0 | 63,147 |
Total operating lease liabilities | $ 67,330 | $ 121,777 |
Commitments and Contingencies_3
Commitments and Contingencies (Details 1) | Dec. 31, 2020USD ($) |
Commitments and Contingencies | |
2021 | $ 70,758 |
Total lease payments | 70,758 |
Less: Imputed interest/present value discount | (3,428) |
Present value of lease liabilities | $ 67,330 |
Commitments and Contingencies_4
Commitments and Contingencies (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies | ||
Right-of-use assets | $ 67,330 | $ 121,777 |
Operating lease liabilities | $ 67,330 | $ 121,777 |
Commitments and contingencies, description | The Company has entered into a lease agreement for office with a lease period ranging from January 10, 2019 to January 9, 2022. Total commitment for the full term of the lease will be $199,085 |