Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information Line Items | |
Entity Registrant Name | Global Internet of People, Inc. |
Document Type | 20-F |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 16,800,000 |
Amendment Flag | false |
Entity Central Index Key | 0001780731 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Dec. 31, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | true |
Entity Shell Company | false |
Entity Ex Transition Period | false |
Document Annual Report | true |
Document Shell Company Report | false |
Document Transition Report | false |
Entity File Number | 001-40008 |
Entity Incorporation, State or Country Code | F4 |
Entity Interactive Data Current | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | |
CURRENT ASSETS | |||
Cash and cash equivalents | $ 10,966,012 | $ 9,439,106 | |
Accounts receivable, net | 12,218,473 | 5,279,266 | |
Inventories, net | 2,706,896 | 3,287,272 | |
Due from related parties | 172,730 | 12,250 | |
Prepaid expenses and other current assets | 2,193,494 | 1,544,462 | |
TOTAL CURRENT ASSETS | 28,257,605 | 19,562,356 | |
NON-CURRENT ASSETS | |||
Property and equipment, net | 3,397,273 | 168,949 | |
Prepayments for property acquisition | 1,204,094 | ||
Intangible assets, net | 4,293,813 | 4,746,552 | |
Long-term investments | 3,085,247 | 582,080 | |
Operating lease right-of-use assets | 100,099 | 449,124 | |
Deferred tax assets | 602,806 | 254,553 | |
TOTAL NON-CURRENT ASSETS | 11,479,238 | 7,405,352 | |
TOTAL ASSETS | 39,736,843 | 26,967,708 | |
CURRENT LIABILITIES | |||
Accounts payable | 33,697 | 2,814,662 | |
Deferred revenue | 250,309 | 583,520 | |
Income taxes payable | 4,706,972 | 1,866,274 | |
Operating lease liabilities, current | 63,301 | 263,796 | |
Accrued expenses and other current liabilities | 529,184 | 1,338,073 | |
TOTAL CURRENT LIABILITIES | 5,583,463 | 6,866,325 | |
NON-CURRENT LIABILITIES | |||
Operating lease liabilities, non-current | 3,196 | 104,785 | |
TOTAL NON-CURRENT LIABILITIES | 3,196 | 104,785 | |
TOTAL LIABILITES | 5,586,659 | 6,971,110 | |
EQUITY | |||
Ordinary shares, 500,000,000 shares authorized; $0.0001 par value, 16,800,000 shares issued and outstanding as of December 31, 2020 and 2019, respectively * | [1] | 1,680 | 1,680 |
Additional paid-in capital | 4,462,177 | 4,342,181 | |
Statutory reserves | 2,473,797 | 1,636,414 | |
Retained earnings | 25,663,240 | 14,413,096 | |
Accumulated other comprehensive income (loss) | 1,438,140 | (599,786) | |
Total shareholders’ equity attributable to controlling shareholders | 34,039,034 | 19,793,585 | |
Non-controlling interests | 111,150 | 203,013 | |
TOTAL EQUITY | 34,150,184 | 19,996,598 | |
TOTAL LIABILITIES AND EQUITY | $ 39,736,843 | $ 26,967,708 | |
[1] | Retrospectively restated for effect of stock reverse splits, see Note 15 for additional information. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, authorized | 500,000,000 | 500,000,000 |
Ordinary shares, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Ordinary shares,issued | 16,800,000 | 16,800,000 |
Ordinary shares, outstanding | 16,800,000 | 16,800,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Income Statement [Abstract] | ||||
REVENUE, NET | $ 23,181,084 | $ 17,925,476 | $ 13,538,999 | |
COSTS AND OPERATING EXPENSES | ||||
Service costs | 2,087,425 | 2,109,649 | 1,142,596 | |
Cost of goods sold | 892,791 | |||
Selling expenses | 906,456 | 1,350,894 | 1,282,677 | |
General and administrative expenses | 3,897,040 | 2,897,079 | 1,749,209 | |
Research and development expenses | 671,312 | 795,540 | 665,378 | |
Total costs and operating expenses | 8,455,024 | 7,153,162 | 4,839,860 | |
PROFIT FROM OPERATIONS | 14,726,060 | 10,772,314 | 8,699,139 | |
OTHER INCOME (EXPENSES) | ||||
Investment losses | (1,087) | (23,799) | (20,194) | |
Interest income | 214,460 | 212,285 | 142,612 | |
Other income (expenses), net | 72,837 | 9,069 | (10,619) | |
Total other income | 286,210 | 197,555 | 111,799 | |
PROFIT BEFORE INCOME TAXES | 15,012,270 | 10,969,869 | 8,810,938 | |
Income taxes provision | 3,054,983 | 1,589,101 | 1,158,465 | |
NET INCOME | 11,957,287 | 9,380,768 | 7,652,473 | |
Less: net (loss) income attributable to non-controlling interests | (130,240) | (365,617) | 175,407 | |
NET INCOME ATTRIBUTABLE TO CONTROLLING SHAREHOLDERS | 12,087,527 | 9,746,385 | 7,477,066 | |
OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Foreign currency translation adjustment | 2,076,303 | (283,074) | (434,264) | |
TOTAL COMPREHENSIVE INCOME | 14,033,590 | 9,097,694 | 7,218,209 | |
Less: comprehensive (loss) income attributable to non-controlling interest | (91,862) | (366,392) | 160,414 | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING SHAREHOLDERS | $ 14,125,452 | $ 9,464,086 | $ 7,057,795 | |
EARNINGS PER SHARE | ||||
Basic and diluted (in Dollars per share) | $ 0.72 | $ 0.58 | $ 0.45 | |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | ||||
Basic and diluted (in Shares) | [1] | 16,800,000 | 16,800,000 | 16,800,000 |
[1] | Retrospectively restated for effect of stock reverse splits, see Note 15 for additional information. |
Consolidation Statements of Cha
Consolidation Statements of Changes In Equity - USD ($) | Ordinary shares | Additional paid-in Capital | Statutory reserves | Retained earnings (Accumulated deficit) | Accumulated other comprehensive income (loss) | Total equity attributable to controlling shareholders | Non-controlling interests | Total | |
Balance at Dec. 31, 2017 | $ 1,680 | $ 4,128,663 | $ 3,129 | $ (1,177,070) | $ 101,784 | $ 3,058,186 | $ 43,734 | $ 3,101,920 | |
Balance (in Shares) at Dec. 31, 2017 | [1] | 16,800,000 | |||||||
Capital contributions from shareholders | 213,518 | 213,518 | 127,129 | 340,647 | |||||
Net income | 7,477,066 | 7,477,066 | 175,407 | 7,652,473 | |||||
Statutory reserves | 630,118 | (630,118) | |||||||
Foreign currency translation adjustment | (419,271) | (419,271) | (14,993) | (434,264) | |||||
Balance at Dec. 31, 2018 | $ 1,680 | 4,342,181 | 633,247 | 5,669,878 | (317,487) | 10,329,499 | 331,277 | 10,660,776 | |
Balance (in Shares) at Dec. 31, 2018 | [1] | 16,800,000 | |||||||
Capital contributions from shareholders | 238,128 | 238,128 | |||||||
Net income | 9,746,385 | 9,746,385 | (365,617) | 9,380,768 | |||||
Statutory reserves | 1,003,167 | (1,003,167) | |||||||
Foreign currency translation adjustment | (282,299) | (282,299) | (775) | (283,074) | |||||
Balance at Dec. 31, 2019 | $ 1,680 | 4,342,181 | 1,636,414 | 14,413,096 | (599,786) | 19,793,585 | 203,013 | 19,996,598 | |
Balance (in Shares) at Dec. 31, 2019 | [1] | 16,800,000 | |||||||
Capital contributions from shareholders | 119,996 | 119,996 | 119,996 | ||||||
Net income | 12,087,527 | 12,087,527 | (130,240) | 11,957,287 | |||||
Statutory reserves | 837,383 | (837,383) | |||||||
Foreign currency translation adjustment | 2,037,926 | 2,037,926 | 38,377 | 2,076,303 | |||||
Balance at Dec. 31, 2020 | $ 1,680 | $ 4,462,177 | $ 2,473,797 | $ 25,663,240 | $ 1,438,140 | $ 34,039,034 | $ 111,150 | $ 34,150,184 | |
Balance (in Shares) at Dec. 31, 2020 | [1] | 16,800,000 | |||||||
[1] | Retrospectively restated for effect of stock reverse splits, see Note 15 for additional information. |
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 | $ 11,957,287 | $ 9,380,768 | $ 7,652,473 |
Adjusted to reconcile net income to cash provided by operating activities | |||
Depreciation and amortization | 865,426 | 167,876 | 20,882 |
Deferred tax (benefits) expenses | (312,780) | (201,638) | 165,321 |
Investment losses | 1,087 | 23,799 | 20,194 |
Bad debt expense | 1,514,559 | 151,246 | 277 |
Amortization of right-of-use assets | 359,551 | 328,289 | |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (8,385,804) | (7,392,412) | (614,666) |
Due from related parties | (151,007) | 708,988 | (302,234) |
Operating lease liabilities | (312,900) | (409,739) | |
Inventories | 667,758 | (823,817) | |
Prepaid expenses and other current assets | (447,421) | (1,051,597) | (139,545) |
Accounts payable | (79,426) | 73,465 | 25,947 |
Income taxes payable | 2,565,098 | 1,233,231 | 674,036 |
Deferred revenue | (322,534) | (1,554,399) | (2,278,629) |
Deferred revenue-related parties | (72,968) | ||
Prepayment for leasehold improvement | (228,457) | ||
Due to related parties | (67,862) | 70,382 | |
Accrued expenses and other current liabilities | (852,731) | 669,873 | 542,423 |
Net cash provided by operating activities | 6,837,706 | 1,236,071 | 5,763,893 |
Cash flows from investing activities | |||
Purchase of property and equipment | (1,723,543) | (156,718) | (49,962) |
Disposal of property and equipment | 392 | 260 | |
Prepayment for property acquisition | (1,204,094) | ||
Purchase of intangible assets | (2,735,433) | (2,188,061) | |
Loans to third parties | (82,268) | ||
Purchase of long-term investments | (1,678,514) | (184,098) | (11,334) |
Purchase of short-term investments | (302,234) | ||
Redemption of short-term investments | 289,918 | ||
Net cash used in investing activities | (6,137,098) | (3,525,061) | (363,530) |
Cash flows from financing activities | |||
Proceeds from capital contributions by controlling shareholders | 119,996 | 213,518 | |
Proceeds from capital contributions by non-controlling shareholders | 238,128 | 127,129 | |
Net cash provided by financing activities | 119,996 | 238,128 | 340,647 |
Effect of foreign exchange rate on cash and cash equivalents | 706,302 | (168,316) | (513,164) |
Net increase (decrease) in cash and cash equivalents | 1,526,906 | (2,219,178) | 5,227,846 |
Cash and cash equivalents, beginning of year | 9,439,106 | 11,658,284 | 6,430,438 |
Cash and cash equivalents, end of year | 10,966,012 | 9,439,106 | 11,658,284 |
Supplemental disclosure of cash flow information | |||
Cash paid for income tax | 638,180 | 557,538 | 312,698 |
Supplemental non cash transactions | |||
Operating lease right-of-use assets obtained in exchange of operating lease liabilities | 64,402 | 302,416 | |
Inventories obtained in exchange for accounts receivable | 2,500,481 | ||
Inventories obtained in exchange for deferred revenue | 30,851 | ||
Long term investment obtained in exchange for accounts receivable | $ 652,401 |
Organization and Business Descr
Organization and Business Description | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND BUSINESS DESCRIPTION | NOTE 1 – ORGANIZATION AND BUSINESS DESCRIPTION Global Internet of People, Inc. (“GIOP”) is a limited liability company established under the laws of the Cayman Islands on February 22, 2019. It is a holding company with no business operation. On March 22, 2019, GIOP incorporated Global Mentor Board Information Technology Limited (“GMB HK”), a limited liability company formed in accordance with laws and regulations of Hong Kong. GMB HK is currently not engaging in any active business and merely acting as a holding company of Beijing Mentor Board Union Information Technology Co, Ltd. (“GIOP BJ” or “WFOE”). GIOP BJ or WFOE was incorporated by GMB HK as a Foreign Enterprise in China on June 3, 2019. Global Mentor Board (Beijing) Information Technology Co., Ltd. (“SDH”) is a limited liability company incorporated on December 5, 2014 under the laws of China. In 2017 and 2018, SDH established several subsidiaries in China, including Global Mentor Board (Hangzhou) Technology Co., Ltd. (“GMB (Hangzhou)”), Global Mentor Board (Shanghai) Enterprise Management Consulting Co., Ltd. (“GMB Consulting”), Linking (Shanghai) Network Technology Co., Ltd. (“GMB Linking”), Shanghai Voice of Seedling Cultural Media Co., Ltd. (“GMB Culture”), which has a majority owned subsidiary Mentor Board Voice of Seedling(Shanghai) Cultural Technology Co., Ltd. (“GMB Technology”), Shidong (Beijing) Information Technology Co., Ltd. (“GMB (Beijing)”) and its majority owned subsidiary Zibo Shidong Digital Technology Co., Ltd. (“GMB Zibo”). SDH and its subsidiaries are primarily engaged in providing peer-to-peer knowledge sharing and enterprise services to clients in the PRC. As described below, GIOP, through a restructuring which is accounted for as a reorganization of entities under common control (the “Reorganization”), became the ultimate parent entity of its subsidiaries and its variable interest entity (“VIE”), SDH. Accordingly, GIOP consolidates SDH’s operations, assets and liabilities. GIOP, its subsidiaries, VIE and VIE’s subsidiaries, are collectively hereinafter referred as the “Company”. Reorganization In anticipation of an initial public offering (“IPO”) of its equity securities, GIOP undertook the following Reorganization: On June 10, 2019, GIOP BJ or WFOE entered into a series of contractual arrangements with the owners of SDH. These agreements include an Exclusive Technical and Consulting Service Agreement, an Exclusive Service Agreement, an Exclusive Option Agreement and Powers of Attorney (collectively “VIE Agreements”). Pursuant to the above VIE Agreements, WFOE has the exclusive right to provide SDH with comprehensive technical support, consulting services and other services in relation to the Principal Business during the term of this Agreement. All the above contractual arrangements obligate WFOE to absorb a majority of the risk of loss from business activities of SDH and entitle WFOE to receive a majority of their residual returns. In essence, WFOE has gained effective control over SDH. Therefore, SDH should be considered as a VIE under the Statement of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810 “Consolidation”. GIOP together with its wholly-owned subsidiary GMB HK and WFOE and its VIE and VIE’s subsidiaries were effectively controlled by the same shareholders before and after the reorganization and therefore the Reorganization is considered under common control. The consolidation of the Company has been accounted for at historical cost and prepared on the basis as if the Reorganization had become effective as of the beginning of the first period presented in the consolidated financial statements. The consolidated financial statements reflect the activities of GIOP and each of the following entities: Name Date of Place of Percentage of Principal Activities Wholly owned subsidiaries Global Mentor Board March 22, HK 100 % Holding company of WFOE Beijing Mentor Board Union June 3, PRC 100 % Holding company Variable Interest Entity (“VIE”) and subsidiaries of VIE Global Mentor Board (Beijing) December 5, PRC VIE peer-to-peer knowledge sharing and enterprise service platform provider Global Mentor Board (Hangzhou) November 1, 2017 PRC 100 % Consulting, training and tailored services provider Global Mentor Board (Shanghai) June 30, PRC 51 % Consulting services provider Linking (Shanghai) Network December 29, 2017 PRC 51 % network technology development services and technical consulting services provider Shanghai Voice of Seedling June 22, PRC 51 % cultural and artistic exchanges and planning, conference services provider Shidong(Beijing)Information June 19, PRC 51 % information technology services provider Mentor Board Voice of Seeding (Shanghai) August 29, PRC 51 % Technical services provider Shidong Zibo Digital Technology Co., Ltd. (“GMB Zibo”) October 16, 2020 PRC 100 % Technical services provider The VIE contractual arrangements Neither the Company nor the Company’s subsidiaries own any equity interest in SDH. Instead, The Company controls and receives the economic benefits of SDH’s business operation through a series of contractual arrangements. WFOE, SDH and its shareholders entered into a series of contractual arrangements, also known as VIE Agreements, in June 2019. The VIE agreements are designed to provide WFOE with the power, rights and obligations equivalent in all material respects to those it would possess as the sole equity holder of SDH, including absolute control rights and the rights to the assets, property and revenue of SDH. Each of the VIE Agreements is described in detail below: Exclusive Technical and Consulting Services Agreement Pursuant to the Exclusive Technical and Consulting Services Agreement between SDH and WFOE (the “Exclusive Service Agreement”), WFOE provides SDH with technical support, consulting services, business support and other management services relating to its day-to-day business operations and management, on an exclusive basis, utilizing its advantages in technology, human resources, and information. For services rendered to SDH by WFOE under the Exclusive Service Agreement, WFOE is entitled to collect a service fee approximately equal to SDH’s earnings before corporate income tax, i.e., SDH’s revenue after deduction of operating costs, expenses and other taxes, subject to adjustment based on services rendered and SDH’s operation needs. This agreement became effective on June 10, 2019 and will remain effective unless otherwise terminated as required by laws or regulations, or by relevant governmental or regulatory authorities otherwise terminated earlier in accordance with the provisions of this agreement or relevant agreements separately executed between the parties. Nevertheless, this agreement shall be terminated after all the equity interest in SDH held by its shareholders and/or all the assets of SDH have been legally transferred to WFOE and/or its designee in accordance with the Exclusive Option Agreement. The CEO of WFOE, Mr. Haiping Hu, is currently managing SDH pursuant to the terms of the Exclusive Service Agreement. The Exclusive Service Agreement does not prohibit related party transactions. The Company’s audit committee will review and approve in advance any future related party transactions, including transactions involving WFOE or SDH. Equity Pledge Agreement Under the Equity Pledge Agreement between WFOE, and shareholders of SDH, together holding 100% of the shares of SDH (“SDH Shareholders”), the SDH Shareholders pledged all of their equity interests in SDH to WFOE to guarantee the performance of SDH’s obligations under the Exclusive Service Agreement. Under the terms of the Equity Pledge Agreement, in the event that SDH or the SDH Shareholders breach their respective contractual obligations under the Exclusive Service Agreement, WFOE, as pledgee, will be entitled to certain rights, including, but not limited to, the right to collect dividends generated by the pledged equity interests. The SDH Shareholders also agreed that upon occurrence of any event of default, as set forth in the Equity Pledge Agreement, WFOE is entitled to dispose of the pledged equity interests in accordance with applicable PRC laws. The SDH Shareholders further agreed not to dispose of the pledged equity interests or take any actions that would prejudice WFOE’s interests without the prior written consent of WFOE. The Equity Pledge Agreement is effective until: (1) the secured debt in the scope of pledge is cleared off; and (2) Pledgers transfer all the pledged equity interests to Pledgees according to the Equity Pledge Agreement, or other entity or individual designated by it. The purposes of the Equity Pledge Agreement are to (1) guarantee the performance of SDH’s obligations under the Exclusive Service Agreement; (2) make sure the SDH Shareholders do not transfer or assign the pledged equity interests, or create or allow any encumbrance that would prejudice WFOE’s interests without WFOE’s prior written consent. In the event SDH breaches its contractual obligations under the Exclusive Service Agreement, WFOE will be entitled to dispose of the pledged equity interests. Exclusive Option Agreement Under the Exclusive Option Agreement, the SDH Shareholders irrevocably granted WFOE (or its designee) an exclusive option to purchase, to the extent permitted under PRC law, once or at multiple times, at any time, part or all of their equity interests in SDH or the assets of SDH. The option price to be paid by WFOE to each shareholder of SDH is RMB10 (approximately US$1.45) or the minimum amount to the extent permitted under PRC law at the time when such transfer occurs. Under the Exclusive Option Agreement, WFOE may at any time under any circumstances, purchase, or have its designee purchase, at its discretion, to the extent permitted under PRC law, all or part of the SDH Shareholders’ equity interests in SDH or the assets of SDH. The Equity Pledge Agreement, together with the Equity Pledge Agreement, the Exclusive Service Agreement, and Powers of Attorney, enable WFOE to exercise effective control over SDH. The Exclusive Option Agreement remains effective until all the equity or assets of SDH is legally transferred under the name of WFOE and/or other entity or individual designated by it, or unilaterally terminated by WFOE within 30-day prior written notice. Powers of Attorney Under each of the Powers of Attorney, the SDH Shareholders authorized WFOE to act on their behalf as their exclusive agent and attorney with respect to all rights as shareholders, including, but not limited to: (a) attending shareholders’ meetings; (b) exercising all the shareholder’s rights, including voting, that shareholders are entitled to under the laws of China and the Articles of Association, including, but not limited to, the sale or transfer or pledge or disposition of shares in part or in whole; and (c) designating and appointing on behalf of shareholders the legal representative, the executive director, supervisor, the chief executive officer, and other senior management members of SDH. The Powers of Attorney are irrevocable and continuously valid from the date of execution of the Powers of Attorney, so long as the SDH Shareholders own the equity interests of SDH. Spousal Consent Pursuant to the Spousal Consent, each spouse of the individual shareholders of SDH irrevocably agreed that the equity interest in SDH held by their respective spouses would be disposed of pursuant to the Equity Interest Pledge Agreement, the Exclusive Option Agreement, and the Powers of Attorney. Each spouse of the shareholders agreed not to assert any rights over the equity interest in SDH held by their respective spouses. In addition, in the event that any spouse obtains any equity interest in SDH through the respective shareholder for any reason, he or she agreed to be bound by the contractual arrangements. Risks in relation to the VIE structure GIOP believes that the contractual arrangements with its VIE and their respective shareholders are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the GIOP’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: ● revoke the business and operating licenses of the Company’s PRC subsidiary and VIE; ● discontinue or restrict the operations of any related-party transactions between the Company’s PRC subsidiary and VIE; ● limit the Company’s business expansion in China by way of entering into contractual arrangements; ● impose fines or other requirements with which the Company’s PRC subsidiary and VIE may not be able to comply; ● require the Company or the Company’s PRC subsidiary and VIE to restructure the relevant ownership structure or operations; or ● restrict or prohibit the Company’s use of the proceeds of the additional public offering to finance. GIOP’s ability to conduct its wisdom sharing and enterprise consulting business may be negatively affected if the PRC government were to carry out any of the aforementioned actions. As a result, GIOP may not be able to consolidate its VIE in its consolidated financial statements as it may lose the ability to exert effective control over the VIE and their respective shareholders and it may lose the ability to receive economic benefits from the VIE. GIOP, however, does not believe such actions would result in the liquidation or dissolution of the Company, its PRC subsidiary and VIE. Total assets and liabilities presented on the Company’s consolidated balance sheets and revenue, expense, net income presented on consolidated statement of operations and comprehensive income as well as the cash flow from operating, investing and financing activities presented on the consolidated statement of cash flows are substantially the financial position, operation and cash flow of the GIOP’s VIE and VIE’s subsidiaries. GIOP has not provided any financial support to SDH for the years ended December 31, 2020 and 2019. The following financial statements of the VIE and VIE’s subsidiaries were included in the consolidated financial statements as of December 31, 2020 and 2019 and for the year ended December 31, 2020 and 2019: As of December 31, 2020 2019 Cash and cash equivalents $ 10,876,365 $ 9,417,214 Accounts receivable, net 12,218,473 5,279,266 Inventories 2,706,896 3,287,272 Due from related parties 167,562 - Prepaid expenses and other current assets 2,148,563 1,593,796 Total current assets 28,117,859 19,577,548 Property and equipment, net 3,397,273 168,949 Prepayments for property - 1,204,094 Intangible assets, net 4,293,813 4,746,552 Long-term investments 3,085,247 582,080 Operating lease right-of-use assets 100,099 449,124 Deferred tax assets 602,806 254,553 Total non-current assets 11,479,238 7,405,352 Total assets $ 39,597,097 $ 26,982,900 Accounts payable 33,697 2,814,662 Deferred revenue 250,309 583,520 Income taxes payable 4,706,972 1,866,274 Operating lease liabilities, current 63,301 263,796 Accrued expenses and other current liabilities 529,184 1,338,073 Total current liabilities 5,583,463 6,866,325 Operating lease liabilities, non-current 3,196 104,785 Non-current liabilities 3,196 104,785 Total liabilities $ 5,586,659 $ 6,971,110 For the years ended 2020 2019 Total net revenue $ 23,107,340 $ 17,925,476 Net income $ 11,931,079 $ 9,396,130 For the years ended 2020 2019 Net cash provided by operating activities $ 6,769,950 $ 1,213,794 Net cash used in investing activities $ (6,137,098 ) $ (3,525,061 ) Net cash provided by financing activities $ 119,996 $ 238,128 Under the Contractual Arrangements with the consolidated VIE, GIOP has the power to direct activities of the consolidated VIE and VIE’s subsidiaries through the WFOE, and can have assets transferred freely out of the consolidated VIE and VIE’ subsidiaries without restrictions. Therefore, the Company considers that there is no asset of the consolidated VIE and VIE’ subsidiaries that can only be used to settle obligations of the respective VIE and VIE’ subsidiaries except for registered capital of VIE and VIE’ subsidiaries amounting to $4,463,857 and $4,343,861 as of December 31, 2020 and 2019, respectively, as well as statutory reserves amounting to $2,473,797 and $1,636,414, as of December 31, 2020 and 2019, respectively. Since the consolidated VIE and VIE’ subsidiaries are incorporated as limited liability companies under the PRC Law, the creditors of the consolidated VIE and VIE’ subsidiaries do not have recourse to the general credit of GIOP. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and have been consistently applied. Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, VIE and VIE’s subsidiaries for which the Company is the ultimate primary beneficiary. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power, has the power to appoint or remove the majority of the members of the board of directors, to cast a majority of votes at the meeting of the board of directors or to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. All transactions and balances between the Company, its subsidiaries, VIE and VIE’s subsidiaries have been eliminated upon consolidation. Non-controlling interests Non-controlling interests are recognized to reflect the portion of their equity that is not attributable, directly or indirectly, to the Company as the controlling shareholder. For the Company’s consolidated subsidiaries, VIE and VIE’ s subsidiaries, non-controlling interests represent a minority shareholder’s 49% ownership interest in GMB (Beijing), GMB Culture, which has a subsidiary called GMB Technology, GMB Consulting, GMB Linking and GMB Zibo as of December 31, 2020 and 2019. Non-controlling interests are presented as a separate line item in the equity section of the Company’s Consolidated Balance Sheets and have been separately disclosed in the Company’s Consolidated Statements of Operations and Comprehensive Income to distinguish the interests from that of the Company. Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and judgments are based on historical information, information that is currently available to the Company and on various other assumptions that the Company believes to be reasonable under the circumstances. Significant estimates required to be made by management, include, but are not limited to, the assessment of the allowance for doubtful accounts, depreciable lives of property and equipment, and realization of deferred tax assets. Actual results could differ from those estimates. Foreign currency translation The Company’s principal country of operations is the PRC. The financial position and results of its operations are determined using RMB, the local currency, as the functional currency. The Company’s consolidated financial statements are reported using the U.S. Dollars (“US$” or “$”). The results of operations and the consolidated statements of cash flows denominated in foreign currency are translated at the average rate of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated based on the average translation rate, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income (loss) included in consolidated statements of changes in shareholders’ equity. Gains and losses from foreign currency transactions are included in the Company’s Consolidated Statements of Operations and Comprehensive Income. The value of RMB against US$ and other currencies may fluctuate and is affected by, among other things, changes in the PRC’s political and economic conditions. Any significant revaluation of RMB may materially affect the Company’s financial condition in terms of US$ reporting. The following table outlines the currency exchange rates that were used in preparing the consolidated financial statements: December 31, December 31, December 31, Year-end spot rate US$1= RMB 6.5249 US$1= RMB 6.9762 US$1= RMB 6.8632 Average rate US$1= RMB 6.8976 US$1= RMB 6.8985 US$1= RMB 6.6174 Fair value measurements The Company follows the provisions of ASC 820, Fair Value Measurements and Disclosures. ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2 - Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3 - Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. The carrying amounts reported in the balance sheets for cash, accounts receivable, due from related parties, short-term investments, prepaid expenses and other current assets, deferred revenue, income taxes payable, accounts payable, due to related parties, accrued expenses and other current liabilities approximate their fair value based on the short-term maturity of these instruments. The Company reports short-term investments at fair value and discloses the fair value of these investments based on level 2. The update does not have a significant impact on the Company’s consolidated Financial Statements. The Company’s non-financial assets, such as property and equipment would be measured at fair value only if they were determined to be impaired. Cash and cash equivalents Cash and cash equivalents include cash on hand and demand deposits in accounts maintained with commercial banks, as well as highly liquid investments which are unrestricted as to withdrawal or use and are readily convertible to known amounts of cash. The interest incomes of highly liquid investments are reported in the Company’s Consolidated Statements of Operations and Comprehensive Income. The Company maintains the bank accounts in Mainland China and Hong Kong. Cash balances in bank accounts in Mainland China and Hong Kong are not insured by the Federal Deposit Insurance Corporation or other programs. Accounts receivable, net Accounts receivable mainly represent amounts due from clients in the ordinary course of business and are recorded net of allowance for doubtful accounts. The Company mitigates the associated risks by performing credit checks and actively pursuing past due accounts. An allowance for doubtful accounts is established and recorded based on management’s assessment of historical bad debts, creditworthiness and financial conditions of the clients, current economic trends and changes in client payment patterns. Past due accounts are generally written off against the allowance for bad debts only after all collection attempts have been exhausted and the potential for recovery is considered remote. The allowance was $1,808,889, $194,375 and $43,129 as of December 31, 2020,2019 and 2018, respectively. The increase in the allowance was due to the extended credit terms to our enterprise customers who suffered financial setbacks due to the COVID-19 in 2020, and as a result, receivable aging between 7-12 months significantly increased. The Company expects to tighten credit terms to customers as the economy recovers from the COVID-19 and the bad debt allowance to be reduced going forward. Inventories The inventories as of December 31, 2020 consisted of health service gift cards, learning course gift cards, Chinese tea, latex pillows and health care products, all of which are products available for sale, and are stated at the lower of cost and net realizable value. Part of the Company’s inventories are obtained through fee exchange arrangements with its customers, which are entered into at the Company’s discretion to receive inventory in exchange of collection of account receivables and deferred revenue due from the customers. The Company accounts for these nonmonetary exchanges based on the fair values of the assets involved. The cost of inventories acquired in exchange is initially measured at the fair value of the accounts receivable the Company surrendered to obtain them. A valuation allowance is recorded to write down the cost of inventories to the estimated net realizable value, if lower, due to slow-moving or damaged products, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. Net realizable value is determined by the estimated selling prices offset by estimated additional cost of sale, selling expenses and business taxes. There was no valuation allowance provided for the inventory for the years ended December 31, 2020, 2019 and 2018. Lease On January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2016-02 (FASB ASC Topic 842). The adoption of Topic 842 resulted in the presentation of operating lease right-of-use assets and operating lease liabilities on the consolidated balance sheet. See Note 10 for additional information. At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange of a consideration. To assess whether a contract is or contains a lease, the Company assess whether the contract involves the use of an identified asset, whether it has the right to obtain substantially all the economic benefits from the use of the asset and whether it has the right to control the use of the asset. The right-of-use assets and related lease liabilities are recognized at the lease commencement date. The Company recognizes operating lease expenses on a straight-line basis over the lease term. Operating lease right-of-use of assets The right-of-use of asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and less any lease incentive received. Operating lease liabilities Lease liability is initially measured at the present value of the outstanding lease payments at the commencement date, discounted using the Company incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed lease payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee and any exercise price under a purchase option that the Company is reasonably certain to exercise. Lease liability is measured at amortized cost using the effective interest rate method. It is remeasured when there is a change in future lease payments, if there is a change in the estimate of the amount expected to be payable under a residual value guarantee, or if there is any change in the Company assessment of option purchases, contract extensions or termination options. Short-term leases and leases of low value assets The Company has elected to not recognize right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low value assets. Lease payments associated with these leases are expensed as incurred. Property and equipment, net Property and equipment are stated at cost less accumulated depreciation. Depreciation of property and equipment is provided using the straight-line method over their expected useful lives, as follows: Building 30 years Electronic equipment 3 years Furniture, fixtures and equipment 3 years Vehicle 3 years Leasehold improvements The shorter of useful life and lease term Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of Operation and Comprehensive Income in other income or expenses. Intangible assets, net The Company’s intangible assets represent the copyright of course videos purchased from a third party, including but not limited to course videos which cover subjects such as entrepreneurship development, financial service, corporate governance, team management, marketing strategy, etc. Intangible assets are stated at cost less accumulated amortization and amortized on a straight-line basis over their estimated useful lives. The estimated useful lives of intangible assets are determined to be 5 to 10 years in accordance with the period the Company estimates to generate economic benefits from such copyright. Long-term investments Equity method investments in investees represents the Company’s investments in privately held companies, over which it has significant influence but does not own a majority equity interest or otherwise control. The Company applies the equity method to account for an equity investment, in common stock or in-substance common stock, according to ASC 323 “Investment — Equity Method and Joint Ventures”. An investment in in-substance common stock is an investment in an entity that has risk and reward characteristics that are substantially similar to that entity’s common stock. The Company considers subordination, risks and rewards of ownership and obligation to transfer value when determining whether an investment in an entity is substantially similar to an investment in that entity’s common stock. Under the equity method, the Company’s share of the post-acquisition profits or losses of the equity investee is recognized in the consolidated income statements and its share of post-acquisition movements in accumulated other comprehensive income is recognized in shareholders’ equity. When the Company’s share of losses in the equity investee equals or exceeds its interest in the equity investee, the Company does not recognize further losses, unless the Company has incurred obligations or made payments or guarantees on behalf of the equity investee. Investment loss of $1,087, $23,799 and $20,194 were recorded in the Company’s Consolidated Statements of Operations and Comprehensive Income for the years ended December 31, 2020, 2019 and 2018, respectively. For other equity investments that do not have readily determinable fair values and over which the Company has neither significant influence nor control through investments in common stock or in-substance common stock, the Company accounts for these investments at cost minus any impairment, if necessary. The Company continually reviews its investments in equity investees to determine whether a decline in fair value below the carrying value is other than temporary. The primary factors the Company considers in its determination are the length of time that the fair value of the investment is below the Company’s carrying value; the financial condition, operating performance and the prospects of the equity investee. If the decline in fair value is deemed to be other than temporary, the carrying value of the equity investee is written down to fair value. No impairment charges were recorded in investment losses in the Company’s Consolidated Statements of Operations and Comprehensive Income for the years ended December 31, 2020, 2019 and 2018. Impairment of long-lived assets The Company reviews its long-lived assets 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 amount of an asset may no longer be recoverable. When these events occur, the Company measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss, which is the excess of carrying amount over the fair value of the assets, using the expected future discounted cash flows. No impairments of long-lived assets were recognized as of December 31, 2020 and 2019 and 2018. Revenue recognition The Company recognizes revenue under Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers. The core principle of the new revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle: Step 1: Identify the contract with the customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize revenue when the company satisfies a performance obligation The Company mainly offers and generates revenue from four kinds of services to its clients in China, member services, enterprise services, online services and other services. Enterprise services include comprehensive tailored services, sponsorship advertising services, and consulting services. Revenue recognition policies for each type of the Company’s services are discussed as follows: Member services The Company offers three tiers of member services, Platinum, Diamond and Protégé, which differ in membership fees as well as the level of the services provided. Members pay a fixed fee for exchange of the right to participate in organized activities offered by the Company, such as study tours and forums, typically within one-year membership period. Any non-participating activities will expire and not be refunded beyond the agreed-upon period. Each member is entitled to choose from same activities offered by the Company for a total of seven times but different level of membership will receive different level of privileges at each activity, such as seating arrangement or private consultation opportunity etc. The activities for Platinum Members are also open to non-members, who pay a pre-set fee for participating in a single activity, while the Company does not offer Diamond and Protégé services to non-members separately. Each activity represents a separate performance obligation, which is typically 5 days or less. The Company uses an expected cost plus margin approach to estimate the standalone selling prices of each activity. As Members can benefit from each activity on their own in the same way and there is no material difference in the Company’s delivering costs, such as number of staffs involved and size of each activity. Therefore, membership fees are equally allocated to seven performance obligations when the Company determines transaction price of each performance obligation. The Company recognizes membership fees as revenue upon completion of each activity as the duration of each activity is short. Membership fees from non-participating activity will be recognized when the agreed-upon period has expired. Membership fees collected in advance are recorded as deferred revenue on the consolidated balance sheets. Enterprise services The Company charges its clients service fees for providing enterprise services, which mainly include comprehensive tailored services, sponsorship advertising services and consulting services. Comprehensive tailored services The comprehensive tailored services provide tailored packaged services to small and medium business, including conference and salon organization, booth exhibition services, on-site Mentors’ guidance, and other value-added services. The Company typically signs one-year framework agreements and a tailored services contract with the clients, which list the types of tailored services as ordered by the clients to fit their specific needs. Each tailored service is a separate performance obligation under ASC 606, as these performance obligations are distinct, the clients can benefit from each service on their own and the Company’s promises to deliver the services are separately identifiable from each other in the services contract. The performance of each tailored service is usually on a specific date designated by the clients. The Company establishes a uniform list for the unit price of each type of tailored services with reference to quoted market prices. If no quoted market price is available, the price will be estimated by using an expected cost plus a margin approach. The Company recognizes the price for each tailored service as revenue when the service has been provided on a specific date designated and the receipt of each tailored services is confirmed by the clients. If a client does not request certain items of the tailored services included in the services contract during the agreed-upon period, the Company will not refund the service fees and the revenue will be recognized upon expiration of service contracts. The tailored services fees collected before providing services are recorded as deferred revenue on the consolidated balance sheets. Sponsorship advertising service The Company provides sponsorship advertising service for its clients at certain activities it held, i.e. study tours and forums. The sponsorship advertising services are mainly to display banners with the clients’ information and distribute clients’ brochures through the activities, so that the clients can enhance their corporate and product image. The fee the Company charges for sponsorship advertising service is depending on multiple specific factors, including number of event participants, location, public interest, etc. The Company considers all factors and determines pricing for each contract separately. The sponsorship advertising fees are recognized as revenue when services have been provided on a specific date designated and receipt of sponsorship advertising services are confirmed by clients. Sponsorship advertising fees collected before providing services are recorded as deferred revenue on the consolidated balance sheets. Consulting services The Company provides consulting services to small and medium-sized enterprises by helping them to develop strategies and solutions including: corporate reorganization, product promotion and marketing, industry supply chain integration, corporate governance, financing and capital structure, etc. The consulting services are tailored to meet each client’s specific needs and requirements. Consulting fees are based on the specifics of the services provided, for instance, time and efforts required, etc. The Company considers comprehensive factors and determines prices with reference to quoted market prices. If no quoted market price is available, price will be estimated by using an expected cost plus a margin approach. Consulting fees are recognized as revenue when services have been provided and receipt of consulting services is confirmed by clients as the duration of services is short, typically one month or less. Consulting fees collected before providing any service are presented as deferred revenue on the consolidated balance sheets. Online services The Company provides two types of online services to the Company’s APP Users, which are questions and answers (Q&A) session with chosen Mentors and online streaming of courses and programs. Top-up credits are paid by Users through the Company’s APP platform, using which Users can purchase the online services. Users can raise questions to chosen Mentors or Experts with a fixed fee per Q&A session preset by Mentors or Experts. The Q&A session is usually provided by chosen Mentors or Experts within a course of a 72-hour period. The Company charges 30% of the Q&A fees as a facilitator of online services. The Q&A fees are allocated to the Company and chosen Mentors or Experts automatically by the APP on a 30%/70% split upon completion of Q&A sessions. The Company recognizes this online service fees as revenue at completion of Q&A sessions on a net basis, i.e., in the amount of 30% of allocated Q&A fees, as the Company merely provides a platform for its Users and is not the primary obligor of the Q&A session, neither has risks and rewards as principal. Prior to 2019, most of our online content were free for our User to enjoy because we mainly focused on growing our online knowledge sharing community. In November 2019, we started to implement a new fee structure for our online content, which grants Users the access to view various online courses and programs. Users can subscribe an annual VIP at a rate of RMB299. The VIP grants Users the access right to the Company’s VIP courses and programs over the subscription period. The Company recognizes the VIP annual subscription fees as revenue on a straight-line basis over VIP subscription period. Users can also purchase a-lar-cart courses and programs at a rate from RMB 9.9 to 299 per course or program by top-up credits through the Company’s APP platform. The payment for a-lar-cart course and program is not refundable. After the payment is collected by the Company, the Users obtain unlimited access to the courses and programs they purchased for without limitation. The Company recognizes the fees a-lar-cart courses and programs as revenue at the point of time that Users obtain the access to the courses and programs. Other revenues Other revenues are mainly generated from rendering of other services and sale of merchandises. The Company sells merchandises and recognizes the revenue at the amount to which it expects to be entitled on a gross basis at the point of time when clients obtain the control of the merchandises. Other services fees are mainly derived from non-member participation of study tours and forums at the service level of Platinum Members. The Company charges non-members a fixed fee for each Member activity and the price for non-members is determined based on our allocated Member pricing for each activity. Fees are usually collected on site at the date of each activity and revenues are recognized at the completion of such activity. Service costs Service costs primarily include (1) the cost of holding activity, such as venue rental fees, conference equipment fees, (2) professional and consulting fees paid to third parties for our activity; (3) the fees paid to Mentors and Experts; and (4) labor costs. Service costs were $2,087,425, $2,109,649 and $1,142,596 for the years ended December 31, 2020, 2019 and 2018, respectively. Income taxes The Company accounts for income taxes under ASC 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The provisions of ASC 740-10-25, “Accounting for Uncertainty in Income Taxes,” prescribe a more-likely-than-not threshold for consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This interpretation also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures. The Company believes there were no uncertain tax positions at December 31, 2020 and 2019, respectively. The Company does not expect that its assessment regarding unrecognized tax positions will materially change over the next 12 months. The Company is not currently under examination by an income tax authority, nor has been notified that an examination is contemplated. Earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS are computed by dividing income available to ordinary shareholders of the Company by the weighted average ordinary shares outstanding during the period. Diluted EPS takes into account the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised and converted into ordinary shares. As of December 31, 2020 and 2019, there were no dilutive shares. Comprehensive income Comprehensive income consists of two components, net income and other comprehensive loss. Other comprehensive loss refers to revenue, expenses, gains and losses that under U.S. GAAP are recorded as an element of shareholders’ equity but are excluded from net income. Other comprehensive loss consists of foreign currency translation adjustment resulting from the Company translating its financial statements from functional currency into reporting currency. Significant risks Currency risk A majority of the Company’s expense transactions are denominated in RMB and a significant portion of the Company and its subsidiaries’ assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (“PBOC”). Remittances in currencies other than RMB by the Company in China must be processed through the PBOC or other Company foreign exchange regulatory bodies which require certain supporting documentation in order to affect the remittance. The Company maintains certain bank accounts in the PRC. On May 1, 2015, China’s new Deposit Insurance Regulation came into effect, pursuant to which banking financial institutions, such as commercial banks, established in the PRC are required to purchase deposit insurance for deposits in RMB and in foreign currency placed with them. Such Deposit Insurance Regulation would not be effective in providing complete protection for the Company’s accounts, as its aggregate deposits are much higher than the compensation limit, which is RMB 500,000 for one bank. However, the Company believes that the risk of failure of any of these Chinese banks is remote. Bank failure is uncommon in the PRC and the Company believes that those Chinese banks that hold the Company’s cash and cash equivalents and short-term investments are financially sound based on public available information. Other than the deposit insurance mechanism in the PRC mentioned above, the Company’s bank accounts are not insured by Federal Deposit Insurance Corporation insurance or other insurance. Concentration and credit risk Financial instruments that potentially subject the Company to the concentration of credit risks consist of cash and short-term investments. The maximum exposures of such assets to credit risk are their carrying amounts as of the balance sheet dates. The Company deposits its cash and short-term investments with financial institutions located in jurisdictions where the subsidiaries are located. The Company believes that no significant credit risk exis |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2020 | |
Accounts receivable, net [Abstract] | |
ACCOUNTS RECEIVABLE, NET | NOTE 3 – ACCOUNTS RECEIVABLE, NET Accounts receivable consisted of the following: As of December 31, 2020 2019 Accounts receivable $ 14,027,362 $ 5,473,641 Less: allowance for doubtful accounts (1,808,889 ) (194,375 ) Accounts receivable, net $ 12,218,473 $ 5,279,266 The movement of allowance of doubtful accounts is as follows: As of December 31, 2020 2019 2018 Balance at beginning of the year $ (194,375 ) $ (43,129 ) $ (42,852 ) Current year addition (1,614,514 ) (151,246 ) (277 ) Balance at end of the year $ (1,808,889 ) $ (194,375 ) $ (43,129 ) |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | NOTE 4 – INVENTORIES, NET Other than cash purchase, a portion of the Company’s inventories are obtained Inventories as of December 31, 2020 and 2019 consist of the following: As of December 31, 2020 2019 Healthcare service gift cards $ 1,094,101 $ 1,146,756 Chinese tea 702,051 798,069 Learning course gift cards 444,451 716,723 Latex pillows 137,119 380,561 Healthcare products 216,733 220,819 Others 112,441 24,344 Total $ 2,706,896 $ 3,287,272 No inventory valuation allowance was recorded for the fiscal years ended December 31, 2020, 2019 and 2018. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2020 | |
Prepaid Expenses And Other Current Assets [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | NOTE 5 – PREPAID EXPENSES AND OTHER CURRENT ASSETS As of December 31, 2020 2019 Prepaid expenses (1) $ 1,324,676 $ 159,569 Deferred offering cost 553,227 365,089 Other receivables 265,653 418,364 Interest receivable 128,388 297,191 Deposits for operating lease 40,384 44,587 Prepaid VAT 19,099 320,739 Loans to third parties 15,326 82,268 Subtotal 2,346,753 1,687,807 Less: allowance for other receivables (153,259 ) (143,345 ) Prepaid expenses and other current assets $ 2,193,494 $ 1,544,462 (1) Prepaid expenses as of December 31, 2020 mainly consisted of prepaid service fee paid by GMB Zibo which amounted to $760,548, and R&D prepayment paid by GMB IT which amounted to $379,354. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 6 – PROPERTY AND EQUIPMENT, NET Property and equipment, stated at cost less accumulated depreciation, consisted of the following: As of December 31, 2020 2019 Building $ 2,991,492 $ - Vehicles 103,836 97,119 Electronic equipment 93,020 85,612 Furniture, fixtures and equipment 71,517 65,823 Leasehold improvements 30,652 - Construction in progress 319,735 - Subtotal 3,610,252 248,554 Less: Accumulated depreciation 212,979 79,605 Property and equipment, net $ 3,397,273 $ 168,949 Depreciation expense was $126,589, $46,124 and $20,882 for the fiscal years ended December 31, 2020, 2019 and 2018, respectively. Construction in progress represented the undergoing decoration project for the Company’s new offices in Beijing and Zibo. The construction has been completed and transferred into leasehold improvements in March 2021 and April 2021. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 7 – INTANGIBLE ASSETS, NET Intangible assets, stated at cost less accumulated amortization, consisted of the following: As of December 31, 2020 2019 Copyrights of course videos $ 5,205,025 $ 4,868,304 Less: accumulated amortization 911,212 121,752 Intangible assets, net $ 4,293,813 $ 4,746,552 For the years ended December 31, 2020, 2019 and 2018, amortization expense amounted to $738,837, $121,752 and nil, respectively. The following is a schedule of future amortization of intangible asset as of December 31, 2020: 2021 781,039 2022 781,039 2023 781,039 Thereafter 1,950,696 Total $ 4,293,813 |
Long-Term Investments
Long-Term Investments | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
LONG-TERM INVESTMENTS | NOTE 8 – LONG-TERM INVESTMENTS The Company’s long-term investments consist of the following: As of December 31, 2020 2019 Equity method investments: Shidong (Suzhou) Investment Co., Ltd. (“Suzhou Investment”) $ 67,926 $ 78,941 Equity investments without readily determinable fair value: Shenzhen Jiazhong Creative Capital LLP ("Jiazhong") 1,532,591 - Hangzhou Zhongfei Aerospace Health Management Co., Ltd. ("Zhongfei") 459,774 - Shanghai Zhongren Yinzhirun Investment Management Partnership (“Yinzhirun”) 306,518 286,689 Jiangxi Cheyi Tongcheng Car Networking Tech Co., Ltd.("Cheyi") 243,332 - Chengdu Zhongfuze Management LLP(“Zhongfuze”) 76,630 71,672 Shanghai Outu Home Furnishings Co., Ltd. (“Outu”) 76,630 71,672 Zhejiang Qianshier Household Co., Ltd.("Qianshier") 76,630 - Taizhoujia Menkou Auto Greengrocer’s Delivery Technology Co., Ltd. (“Taizhoujia”) 76,630 - Zhejiang Yueteng Information Technology Co., Ltd. (“Yueteng”) 76,630 - Shidong Funeng(Ruzhou) Industry Development Co., Ltd.( “Funeng”) 41,380 38,703 Dongguan Zhiduocheng Car Service Co., Ltd. (“Car Service”) 27,587 12,901 Beijing Yunshang E-commerce Co., Ltd. (“Yunshang E-commerce”) 22,989 21,502 Total $ 3,085,247 $ 582,080 Equity method investments Investment in Suzhou Investment In December 2017, the Company acquired 17% of shareholding of Suzhou Investment with cash consideration of RMB 850,000. As Suzhou Investment’s director is the Company’s management and the Company can exercise significant influence on Suzhou Investment’s business operation, the Company therefore accounted for this investment under equity methods from December 2017 and share the profit or loss of Suzhou Investment accordingly. For the years ended December 31, 2020, 2019 and 2018, the Company recognized investment losses of $15,585, $24,014 and $20,194, respectively, according to its share of the post-acquisition losses of Suzhou Investment. Equity investments without readily determinable fair value Investment in Yinzhirun In December 2016, the Company acquired 0.45% of shareholding of Yinzhirun with cash consideration of RMB 2,000,000. The Company does not have significant influence or control over Yinzhirun, and the equity investment does not have readily determinable market value, and therefore accounted for the investment of Yinzhirun at cost minus impairments and plus or minus observable changes in prices. Investment in Yunshang E-commerce In March 2017, the Company acquired 1.25% of shareholding interest of Yunshang E-commerce with cash consideration of RMB 150,000. The Company does not have significant influence or control over Yunshang E-commerce, and the equity investment does not have readily determinable market value, and therefore accounted for the investment of Yunshang E-commerce at cost minus impairments and plus or minus observable changes in prices. Investment in Car Service In November 2017, the Company acquired 1.5 % of shareholding interest of Car Service with cash consideration of RMB90,000. In May 2019, the shareholding interest the Company held was diluted to 0.98% after Car Service received capital from a new shareholder. The Company does not have significant influence or control over Car Service, and the equity investment does not have readily determinable market value, and therefore accounted for the investment of Car Service at cost minus impairments and plus or minus observable changes in prices. Investment in Funeng In August 2019, the Company subscribed capital with cash consideration of RMB 570,000 and acquired 19% of shareholding interest of Funeng. The Company does not have significant influence or control over Funeng, and the equity investment does not have readily determinable market value, and therefore accounted for the investment of Funeng at cost minus impairments and plus or minus observable changes in prices. The Company has paid RMB 270,000 as of December 31, 2020. Investment in Zhongfuze In September 2019, the Company acquired 11.11% of partnership share of Zhongfuze with cash consideration of RMB 500,000. The Company does not have significant influence or control over Zhongfuze, and the partnership share investment does not have readily determinable market value, and therefore accounted for the investment of Zhongfuze at cost minus impairments and plus or minus observable changes in prices. The Company has fully paid RMB 500,000 as of December 31, 2020. Investment in Outu In December 2019, the Company acquired 15% of shareholding interest of Outu with cash consideration of RMB3,000,000. The Company does not have significant influence or control over Outu, and the equity investment does not have readily determinable market value, and therefore accounted for the investment of Outu at cost minus impairments and plus or minus observable changes in prices. The Company has paid RMB 500,000 out of the RMB3,000,000 as of December 31, 2020. Investment in Taizhoujia In June 2020, the Company acquired 5% of shareholding interest of Taizhoujia through nonmonetary transactions with Taizhoujia, which are entered into at the Company’s discretion to receive equity interest in exchange of collection of account receivables due from Taizhoujia of RMB 500,000. The Company accounts for these nonmonetary exchanges based on the fair values of the assets involved. The Company does not have significant influence or control over Taizhoujia, and the equity investment does not have readily determinable market value, and therefore accounted for the investment of Taizhoujia at cost minus impairments and plus or minus observable changes in prices. The cost of equity interest acquired in exchange is initially measured at the fair value of the account receivables the Company surrendered to obtain them. Investment in Yueteng In June 2020, the Company acquired 5% of shareholding interest of Yueteng through nonmonetary transactions with Yueteng, which are entered into at the Company’s discretion to receive equity interest in exchange of collection of account receivables due from Yueteng of RMB 500,000. The Company accounts for these nonmonetary exchanges based on the fair values of the assets involved. The Company does not have significant influence or control over Yueteng, and the equity investment does not have readily determinable market value, and therefore accounted for the investment of Yueteng at cost minus impairments and plus or minus observable changes in prices. The cost of equity interest acquired in exchange is initially measured at the fair value of the account receivables the Company surrendered to obtain them. Investment in Qianshier In December 2020, the Company acquired 5% of shareholding interest of Qiansier through nonmonetary transactions with Qianshier, which are entered into at the Company’s discretion to receive equity interest in exchange of collection of account receivables due from Qianshier of RMB 500,000. The Company accounts for these nonmonetary exchanges based on the fair values of the assets involved. The Company does not have significant influence or control over Qianshier, and the equity investment does not have readily determinable market value, and therefore accounted for the investment of Qianshier at cost minus impairments and plus or minus observable changes in prices. The cost of equity interest acquired in exchange is initially measured at the fair value of the account receivables the Company surrendered to obtain them. Investment in Jiazhong In December 2020, the Company acquired 33% of partnership share of Jiazhong as a limited partner with cash consideration of RMB 10,000,000. The Company does not have significant influence or control over Jiazhong, and the partnership share investment does not have readily determinable market value, and therefore accounted for the investment of Jiazhong at cost minus impairments and plus or minus observable changes in prices. The Company has fully paid RMB 10,000,000 as of December 31, 2020. Investment in Zhongfei In November 2020, the Company acquired 3% of shareholding interest of Zhongfei through nonmonetary transactions with , which are entered into at the Company’s discretion to receive equity interest in exchange of collection of account receivables due from Zhongfei of RMB 3,000,000. The Company accounts for these nonmonetary exchanges based on the fair values of the assets involved. The Company does not have significant influence or control over Zhongfei, and the equity investment does not have readily determinable market value, and therefore accounted for the investment of Zhongfei at cost minus impairments and plus or minus observable changes in prices. The cost of equity interest acquired in exchange is initially measured at the fair value of the account receivables the Company surrendered to obtain them. Investment in Cheyi In November 2020, the Company acquired 0.5% of shareholding interest of Cheyi through nonmonetary transactions with , which are entered into at the Company’s discretion to receive equity interest in exchange of collection of account receivables due from Cheyi of RMB 1,587,719. The Company accounts for these nonmonetary exchanges based on the fair values of the assets involved. The Company does not have significant influence or control over Cheyi, and the equity investment does not have readily determinable market value, and therefore accounted for the investment of Cheyi at cost minus impairments and plus or minus observable changes in prices. The cost of equity interest acquired in exchange is initially measured at the fair value of the account receivables the Company surrendered to obtain them. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
ASU 2016-02 Transition [Abstract] | |
LEASES | NOTE 9 – LEASES The Company’s VIE and VIE’s subsidiaries lease office space under non-cancelable operating lease agreements with expiration dates in 2021 or 2022. The lease terms may include options to extend or terminate the lease when it is reasonably certain the Company will exercise that option. Certain of the arrangements have free rent periods or escalating rent payment provisions. Leases with an initial term of twelve months or less are not recorded on the consolidated balance sheets. The Company recognizes rental expense on a straight-line basis over the lease term. As of December 31, 2020, the Company’s operating leases had a weighted average remaining lease term of 1.35 years and a weighted average discount rate of 4.75%. The components of lease expense for the years ended December 31, 2020 and 2019 were as follows: Statement of Income Location For the year ended December 31, For the year ended December 31, Lease Costs Operating lease expense General and administrative expenses $ 352,645 $ 379,355 Total lease expenses $ 352,645 $ 379,355 Maturity of lease liabilities under the non-cancelable operating leases as of December 31, 2020 were as follows: Operating 2021 $ 68,507 Total lease payments 68,507 Less: interest 2,010 Present value of lease liabilities $ 66,497 |
Accounts Payable
Accounts Payable | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE | NOTE 10 – ACCOUNTS PAYABLE Components of accounts payable are as follows: As of December 31, 2020 2019 Payable for purchase of intangible assets $ - $ 2,704,614 Payable for service costs 33,697 110,048 Total $ 33,697 $ 2,814,662 |
Deferred Revenue
Deferred Revenue | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Revenue [Abstract] | |
DEFERRED REVENUE | NOTE 11 – DEFERRED REVENUE The details of deferred revenue are as follows: As of December 31, 2020 2019 Advance from member services $ 231,182 $ 579,935 Advance from enterprise services 19,127 3,585 Total $ 250,309 $ 583,520 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | NOTE 12 – ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Components of accrued expenses and other current liabilities are as follows: As of December 31, 2020 2019 VAT payable $ 472,926 $ 866,121 Accrued payroll and welfare 25,927 78,409 Refundable deposits - 289,556 Accrued expenses - 24,259 Others 30,331 79,728 Total $ 529,184 $ 1,338,073 |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
TAXES | NOTE 13 – TAXES a. Value-Added Tax (“VAT”) The Company is subject to VAT and related surcharges in China for providing member services and other in-depth services. The applicable VAT rate is 6% for general taxpayers and 3% for small-scale taxpayer. The amount of VAT liability is determined by applying the applicable tax rate to the invoiced amount of services provided (output VAT) less VAT paid on purchases made with the relevant supporting invoices (input VAT). VAT liability is recorded in the line item of accrued expenses and other current liabilities on the consolidated balance sheets. Under the commercial practice of the PRC, the Company pays VAT based on tax invoices issued. All of the tax returns of the Company have been and remain subject to examination by the PRC tax authorities for five years from the date of filing. b. Income tax Cayman Islands Under the current tax laws of the Cayman Islands, the Company is not subject to tax on its income or capital gains. In addition, no Cayman Islands withholding tax will be imposed upon the payment of dividends by the Company to its shareholders. Hong Kong In accordance with the relevant tax laws and regulations of Hong Kong, a company registered in Hong Kong is subject to income taxes within Hong Kong at the applicable tax rate on taxable income. From year of assessment of 2019/2020 onwards, Hong Kong profit tax rates are 8.25% on assessable profits up to HK$2,000,000, and 16.5% on any part of assessable profits over HK$2,000,000. However, the Company’s HK subsidiary did not generate any assessable profits arising in or derived from Hong Kong for the fiscal years ended December 31, 2020 and 2019, and accordingly no provision for Hong Kong profits tax has been made in these periods. China The Company’s subsidiaries are incorporated in the PRC, and are subject to the PRC Enterprise Income Tax Laws (“EIT Laws”) with the statutory income tax rate of 25% with the following exceptions. In accordance with the implementation rules of EIT Laws, a qualified “High and New Technology Enterprise” (“HNTE”) is eligible for a preferential tax rate of 15%. The HNTE certificate is effective for a period of three years. An entity could re-apply for the HNTE certificate when the prior certificate expires. SDH obtained its HNTE certificate on October 25, 2017, and renewed in 2021. Therefore, SDH is eligible to enjoy a preferential tax rate of 15% from 2017 to 2023 to the extent it has taxable income under the EIT Law. On January 17, 2019, the State Taxation Administration issues the notice on the scope of small-scale and low-profit corporate income tax preferential policies of the Ministry of Finance and the State Administration of Taxation, [2019] No. 13 for small-scale and low-profit enterprises whose annual taxable income is less than RMB1,000,000 (including RMB 1,000,000), approximately US$153,259, their income is reduced by 25% to the taxable income, and enterprise income tax is paid at 20% tax rate, which is essentially resulting in a favorable income tax rate of 5%. While the portion of annual taxable income exceeding RMB1,000,000, approximately US$144,959, but not more than RMB3,000,000, approximately US$459,777, which is essentially resulting in a favorable income tax rate of 10%. The qualifications of small-scale and low-profit enterprises were examined annually by the Tax Bureau. GMB Consulting was eligible to enjoy a preferential tax rate of 5% from 2018 to 2020. The components of the income tax provision are as follows: For the years ended 2020 2019 2018 Current Cayman Islands $ - $ - $ - BVI - - - Hong Kong - - - China 3,367,763 1,790,739 993,144 Deferred - - Cayman Islands - - - BVI - - - Hong Kong - - - China (312,780 ) (201,638 ) 165,321 Total $ 3,054,983 $ 1,589,101 $ 1,158,465 Reconciliation between the provision for income taxes computed by applying the PRC EIT rate of 25% to income before income taxes and the actual provision of income taxes is as follows: For the years ended 2020 2019 2018 Profit before income taxes $ 15,012,270 $ 10,985,232 8,810,938 PRC EIT rate 25 % 25 % 25 % Income taxes computed at statutory EIT rate $ 3,753,068 $ 2,746,308 2,202,734 Reconciling items: Effect of tax holiday and preferential tax rate(a) (627,764 ) (1,072,447 ) (972,088 ) Effect of non-deductible expense 5,202 4,738 2,674 Super deduction of qualified R&D expenditures (75,523 ) (89,498 ) (74,855 ) Income tax expense $ 3,054,983 $ 1,589,101 1,158,465 Effective tax rate 20.35 % 14.47 % 13.15 % (a) For years ended December 31, 2020, 2019 and 2018, the tax saving as the result of the preferential tax rate amounted to $627,764, $1,072,447 and $972,088, respectively, and per share effect of the preferential tax rate were $0.04, $0.06 and $0.06, respectively. Deferred tax assets According to PRC tax regulations, net operating losses can be carried forward to offset future operating income for five years. Significant components of deferred tax assets were as follows: As of December 31, 2020 2019 Net operating loss carry forwards $ 276,730 $ 184,458 Provision for doubtful debts 326,076 70,095 Deferred tax assets, gross 602,806 254,553 Less: Valuation allowance - - Deferred tax assets, net $ 602,806 $ 254,553 The Company has accumulated operating loss of approximately $1,106,920 and $746,141 as of December 31, 2020 and 2019 for income tax purposes available for offsetting against future taxable income. The accumulated operating loss were from several PRC subsidiaries of the Company. These subsidiaries are founded for one or two years thus in business start-up period. Management believes that the realization of the benefits from these losses is highly probable as they are developing well and will started to make profits in the near future. Accordingly, as of December 31, 2020 and 2019, no valuation allowance has been recorded. In making such determination, the Company considered factors including (i) future reversals of existing taxable temporary differences, (ii) future taxable income exclusive of reversing temporary differences and carry forwards, and (iii) tax planning strategies. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carry forward period are reduced. The Company evaluates the level of authority for each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. For the fiscal years ended December 31, 2020 and 2019, the Company had no unrecognized tax benefits. For the Company’s operating subsidiaries, the tax years ended December 31, 2016, through December 31, 2020 remain open for statutory examination by PRC tax authorities. |
Related Party Balance and Trans
Related Party Balance and Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY BALANCE AND TRANSACTIONS | NOTE 14 – RELATED PARTY BALANCE AND TRANSACTIONS The following is a list of related parties which the Company has transactions with: (a) Beijing Yihe Business Technology Co., Ltd. (“Yihe Beijing”), a 40% shareholder of GMB (Beijing). (b) Ningbo Zhuhai Investment Co., Ltd. (“Zhuhai Investment”), a company controlled by Mr. Haiping Hu. (c) Zhifang (Shanghai) Marketing Management Co., Ltd. (“Zhifang Marketing”), 49% shareholder of GMB Consulting. (d) Taiyuan Ruihaojia Enterprise Management Consulting Co., Ltd. (“Taiyuan Ruihaojia”), the Company’s director Mr. Xiaoli Chen owns 33% share. (e) Bally, Corp. (“Bally”), a company controlled by Mr. Haiping Hu. (f) GMB Wisdom Sharing Platform Co., Ltd. (“GMD Wisdom”), one of the shareholders of the Company (g) GMB Culture Communication Co., Ltd. (“Culture Communication”), one of the shareholders of the Company (h) GMB Resource Services Co., Ltd. (“GMB Resource”), one of the shareholders of the Company a. Due from related parties As of December 31, 2020 and 2019, the balances of amount due from related parties were as follows: As of December 31, 2020 2019 Due from related parties Bally $ 5,168 $ 12,250 Zhuhai Investment (1 ) 155,378 - Yihe Beijing (2 ) 12,184 - Total $ 172,730 $ 12,250 (1) The balance as of December 31, 2020 represented the prepaid rental fee for 2021 to the related party. (2) The balance as of December 31, 2020 represented the consulting fees prepaid to the related party. b. Related party transactions The Company rent office spaces from Zhuhai Investment. For the years ended December 31, 2020 and 2019, total rental fee to Zhuhai Investment were $96,695 and $75,009, respectively. The Company provided member services and comprehensive tailored services to Zhifang Marketing. For the year ended December 31, 2020 and 2019, total revenue from Zhifang Marketing were $nil and $95,181, respectively. The Company also purchased professional services from Zhifang Marketing, Taiyuan Ruihaojia and Yihe Beijing. For the year ended December 31, 2020 and 2019, service costs paid to Zhifang Marketing were $ $27,175 and $291,533, respectively, service costs paid to Taiyuan Ruihaojia were nil and $90,150, respectively and service costs paid to Yihe Beijing were $69,134 and nil, respectively. |
Shareholders_ Equity
Shareholders’ Equity | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 15 – SHAREHOLDERS’ EQUITY Ordinary shares GIOP was established under the laws of the Cayman Islands on February 22, 2019. The authorized number of Ordinary Shares was 500,000,000 with par value of $0.0001 per share. On February 22, 2019, GIOP issued 999,999 new shares to the controlling shareholders and one share to Osiris International Cayman Limited at par $0.0001 per share. On August 8, 2019, GIOP issued an aggregate of 27,000,000 ordinary shares at a price of US$0.0001 per share with total consideration of US$2,800, pro-rata to the shareholders of GIOP as of such date. On April 2, 2020, the shareholders of the Company unanimously authorize a 0.88-for-one reverse stock split of the Company’s outstanding and issued ordinary shares (the “First Reverse Stock Split”), which became effective on April 3, 2020. Any fractional ordinary share that would have otherwise resulted from the First Reverse Stock Split were rounded up to the nearest full share. The First Reverse Stock Split did not change the par value of the ordinary shares and had no effect on the number of authorized ordinary shares of the Company. As a result of the First Reverse Stock Split, 28,000,000 ordinary shares that were issued and outstanding at April 3, 2020 was reduced to 24,640,000 ordinary shares (taking into account the rounding of fractional shares). On April 24, 2020, the shareholders of the Company unanimously authorize another one-for-0.68 reverse stock split of the Company’s issued and outstanding ordinary shares (the “Second Reverse Stock Split”), which became effective on April 24, 2020. Any fractional ordinary share that would have otherwise resulted from the Second Reverse Stock Split were rounded up to the nearest full share. The Second Reverse Stock Split did not change the par value of the ordinary shares and had no effect on the number of authorized ordinary shares of the Company. As a result of the Second Reverse Stock Split, 24,640,000 ordinary shares that were issued and outstanding at April 24, 2020 was reduced to 16,800,000 ordinary shares (taking into account the rounding of fractional shares). The number of shares, share amounts and per share data in the consolidated financial statements and related notes have been retrospectively presented to reflect the nominal share issuance and the Reverse Stock Splits stated above, except for authorized common shares, which were not affected. Non-controlling interest Non-controlling interest consists of the following: As of December 31, 2020 2019 GMB (Beijing) $ 75,853 $ 161,923 GMB Culture 146,872 130,346 GMB Linking 2,673 4,644 GMB Consulting 20,677 37,654 GMB Technology (134,925 ) (131,554 ) Total $ 111,150 $ 203,013 GMB Technology was established by GMB Culture in 2018. On February 16, 2019, GMB Culture transferred 40% of the equity interests to non-controlling shareholders, there is no increase or decrease in GMB Culture’s additional paid in capital for the equity interest transaction. Before the equity interest transaction, GMB Culture hasn’t paid any capital subscriptions to GMB Technology. Pursuant to the equity interest transfer agreement, their respective capital subscriptions to be paid at any time before the end of each of the respective subscription periods, which is June 21, 2037. For the fiscal year ended December 31, 2019, SDH made capital contributions of $152,117 to GMB (Beijing) and $8,296 to GMB Culture; and the non-controlling shareholders made capital contributions of $150,881 and $87,247 to GMB(Beijing) and GMB Culture, respectively. The actual capital contributions made by SDH and the non-controlling shareholders for the fiscal year ended 2019 have no effect on SDH’s equity percentage in its five subsidiaries. Statutory reserves In accordance with the Regulations on Enterprises of PRC, the Company’s WFOE, VIE and VIE’s subsidiaries in the PRC are required to provide for statutory reserves, which are appropriated from net profit as reported in the Company’s PRC statutory accounts. They are required to allocate 10% of their after-tax profits to fund statutory reserves until such reserves have reached 50% of their respective registered capital. These reserve funds, however, may not be distributed as cash dividends. As of December 31, 2019 and 2020, the statutory reserves of the Company’s WFOE, VIE and VIE’s subsidiaries in the PRC have not reached 50% of their respective registered capital except GMB Zibo. As of December 31, 2020 and 2019, the balances of the statutory reserves were $2,473,797 and $1,636,414, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 16 – COMMITMENTS AND CONTINGENCIES Commitments In October 2020, the Company signed office decoration agreements with a third party to decorate the office space rented by GMB Zibo with a total consideration of US$805,022. The Company has paid US$241,507 as a prepayment as of December 31, 2020. The Company expects to pay the rest of consideration of US$563,515 in second quarter of 2021. Contingencies The Company may be involved in various legal proceedings, claims and other disputes arising from the commercial operations, projects, employees and other matters which, in general, are subject to uncertainties and in which the outcomes are not predictable. The Company determines whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. Although the outcomes of these legal proceedings cannot be predicted, the Company does not believe these actions, in the aggregate, will have a material adverse impact on its financial position, results of operations or liquidity. As of December 31, 2020 the Company was not aware of any litigations or lawsuits against it. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 17 – SEGMENT REPORTING ASC 280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for details on the Company’s business segments. The Company uses the management approach to determine reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker (“CODM”) for making decisions, allocating resources and assessing performance. The Company’s CODM has been identified as the CEO, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Company. Based on the management’s assessment, the Company determined that it has only one operating segment and therefore one reportable segment as defined by ASC 280. The Company’s assets are substantially all located in the PRC and substantially all of the Company’s revenue and expense are derived in the PRC. Therefore, no geographical segments are presented. The following table presents revenue by major revenue type for the years ended December 31, 2020, 2019 and 2018, respectively: For the years ended 2020 2019 2018 Member services $ 872,629 $ 2,525,084 $ 5,280,587 Enterprise services -Comprehensive tailored services 13,345,880 5,733,342 4,732,980 -Sponsorship advertising services 6,598,527 8,288,164 2,520,026 -Consulting services 416,634 1,189,169 793,400 Online services 361,933 66,304 8,098 Other revenues 1,585,481 123,413 203,908 Revenue, net $ 23,181,084 $ 17,925,476 $ 13,538,999 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 18 SUBSEQUENT EVENTS On February 11, 2021, the Company listed its ordinary shares on Nasdaq in an IPO, with the symbol “SDH”. The Company offered 6,720,000 ordinary shares, par value $0.001 per share, on a firm commitment basis, at a price of $4.00 per share and received total gross proceed of $26,880,000. Besides, the Company offered 1,008,000 ordinary shares, par value $0.001 per share, as part of the representative of the underwriters’ over-allotment option, at a price of $4.00 per share and received total gross proceed of $4,032,000. Total net proceed amounted to $27,569,378 after deducting underwriting discounts and other related expenses. On April 19, 2021, the Company incorporated a subsidiary named Shidong Trading Service (Zhejiang) Limited (“Shidong Trading”) with registered capital of $US 4,597,772. The Company owns 60% of Shidong Trading. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and have been consistently applied. |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, VIE and VIE’s subsidiaries for which the Company is the ultimate primary beneficiary. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power, has the power to appoint or remove the majority of the members of the board of directors, to cast a majority of votes at the meeting of the board of directors or to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. All transactions and balances between the Company, its subsidiaries, VIE and VIE’s subsidiaries have been eliminated upon consolidation. |
Non-controlling interests | Non-controlling interests Non-controlling interests are recognized to reflect the portion of their equity that is not attributable, directly or indirectly, to the Company as the controlling shareholder. For the Company’s consolidated subsidiaries, VIE and VIE’ s subsidiaries, non-controlling interests represent a minority shareholder’s 49% ownership interest in GMB (Beijing), GMB Culture, which has a subsidiary called GMB Technology, GMB Consulting, GMB Linking and GMB Zibo as of December 31, 2020 and 2019. Non-controlling interests are presented as a separate line item in the equity section of the Company’s Consolidated Balance Sheets and have been separately disclosed in the Company’s Consolidated Statements of Operations and Comprehensive Income to distinguish the interests from that of the Company. |
Use of estimates | Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and judgments are based on historical information, information that is currently available to the Company and on various other assumptions that the Company believes to be reasonable under the circumstances. Significant estimates required to be made by management, include, but are not limited to, the assessment of the allowance for doubtful accounts, depreciable lives of property and equipment, and realization of deferred tax assets. Actual results could differ from those estimates. |
Foreign currency translation | Foreign currency translation The Company’s principal country of operations is the PRC. The financial position and results of its operations are determined using RMB, the local currency, as the functional currency. The Company’s consolidated financial statements are reported using the U.S. Dollars (“US$” or “$”). The results of operations and the consolidated statements of cash flows denominated in foreign currency are translated at the average rate of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated based on the average translation rate, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income (loss) included in consolidated statements of changes in shareholders’ equity. Gains and losses from foreign currency transactions are included in the Company’s Consolidated Statements of Operations and Comprehensive Income. The value of RMB against US$ and other currencies may fluctuate and is affected by, among other things, changes in the PRC’s political and economic conditions. Any significant revaluation of RMB may materially affect the Company’s financial condition in terms of US$ reporting. The following table outlines the currency exchange rates that were used in preparing the consolidated financial statements: December 31, December 31, December 31, Year-end spot rate US$1= RMB 6.5249 US$1= RMB 6.9762 US$1= RMB 6.8632 Average rate US$1= RMB 6.8976 US$1= RMB 6.8985 US$1= RMB 6.6174 |
Fair value measurements | Fair value measurements The Company follows the provisions of ASC 820, Fair Value Measurements and Disclosures. ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2 - Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3 - Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. The carrying amounts reported in the balance sheets for cash, accounts receivable, due from related parties, short-term investments, prepaid expenses and other current assets, deferred revenue, income taxes payable, accounts payable, due to related parties, accrued expenses and other current liabilities approximate their fair value based on the short-term maturity of these instruments. The Company reports short-term investments at fair value and discloses the fair value of these investments based on level 2. The update does not have a significant impact on the Company’s consolidated Financial Statements. The Company’s non-financial assets, such as property and equipment would be measured at fair value only if they were determined to be impaired. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents include cash on hand and demand deposits in accounts maintained with commercial banks, as well as highly liquid investments which are unrestricted as to withdrawal or use and are readily convertible to known amounts of cash. The interest incomes of highly liquid investments are reported in the Company’s Consolidated Statements of Operations and Comprehensive Income. The Company maintains the bank accounts in Mainland China and Hong Kong. Cash balances in bank accounts in Mainland China and Hong Kong are not insured by the Federal Deposit Insurance Corporation or other programs. |
Accounts receivable, net | Accounts receivable, net Accounts receivable mainly represent amounts due from clients in the ordinary course of business and are recorded net of allowance for doubtful accounts. The Company mitigates the associated risks by performing credit checks and actively pursuing past due accounts. An allowance for doubtful accounts is established and recorded based on management’s assessment of historical bad debts, creditworthiness and financial conditions of the clients, current economic trends and changes in client payment patterns. Past due accounts are generally written off against the allowance for bad debts only after all collection attempts have been exhausted and the potential for recovery is considered remote. The allowance was $1,808,889, $194,375 and $43,129 as of December 31, 2020,2019 and 2018, respectively. The increase in the allowance was due to the extended credit terms to our enterprise customers who suffered financial setbacks due to the COVID-19 in 2020, and as a result, receivable aging between 7-12 months significantly increased. The Company expects to tighten credit terms to customers as the economy recovers from the COVID-19 and the bad debt allowance to be reduced going forward. |
Inventories | Inventories The inventories as of December 31, 2020 consisted of health service gift cards, learning course gift cards, Chinese tea, latex pillows and health care products, all of which are products available for sale, and are stated at the lower of cost and net realizable value. Part of the Company’s inventories are obtained through fee exchange arrangements with its customers, which are entered into at the Company’s discretion to receive inventory in exchange of collection of account receivables and deferred revenue due from the customers. The Company accounts for these nonmonetary exchanges based on the fair values of the assets involved. The cost of inventories acquired in exchange is initially measured at the fair value of the accounts receivable the Company surrendered to obtain them. A valuation allowance is recorded to write down the cost of inventories to the estimated net realizable value, if lower, due to slow-moving or damaged products, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. Net realizable value is determined by the estimated selling prices offset by estimated additional cost of sale, selling expenses and business taxes. There was no valuation allowance provided for the inventory for the years ended December 31, 2020, 2019 and 2018. |
Lease | Lease On January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2016-02 (FASB ASC Topic 842). The adoption of Topic 842 resulted in the presentation of operating lease right-of-use assets and operating lease liabilities on the consolidated balance sheet. See Note 10 for additional information. At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange of a consideration. To assess whether a contract is or contains a lease, the Company assess whether the contract involves the use of an identified asset, whether it has the right to obtain substantially all the economic benefits from the use of the asset and whether it has the right to control the use of the asset. The right-of-use assets and related lease liabilities are recognized at the lease commencement date. The Company recognizes operating lease expenses on a straight-line basis over the lease term. Operating lease right-of-use of assets The right-of-use of asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and less any lease incentive received. Operating lease liabilities Lease liability is initially measured at the present value of the outstanding lease payments at the commencement date, discounted using the Company incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed lease payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee and any exercise price under a purchase option that the Company is reasonably certain to exercise. Lease liability is measured at amortized cost using the effective interest rate method. It is remeasured when there is a change in future lease payments, if there is a change in the estimate of the amount expected to be payable under a residual value guarantee, or if there is any change in the Company assessment of option purchases, contract extensions or termination options. Short-term leases and leases of low value assets The Company has elected to not recognize right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low value assets. Lease payments associated with these leases are expensed as incurred. |
Property and equipment, net | Property and equipment, net Property and equipment are stated at cost less accumulated depreciation. Depreciation of property and equipment is provided using the straight-line method over their expected useful lives, as follows: Building 30 years Electronic equipment 3 years Furniture, fixtures and equipment 3 years Vehicle 3 years Leasehold improvements The shorter of useful life and lease term Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of Operation and Comprehensive Income in other income or expenses. |
Intangible assets, net | Intangible assets, net The Company’s intangible assets represent the copyright of course videos purchased from a third party, including but not limited to course videos which cover subjects such as entrepreneurship development, financial service, corporate governance, team management, marketing strategy, etc. Intangible assets are stated at cost less accumulated amortization and amortized on a straight-line basis over their estimated useful lives. The estimated useful lives of intangible assets are determined to be 5 to 10 years in accordance with the period the Company estimates to generate economic benefits from such copyright. |
Long-term investments | Long-term investments Equity method investments in investees represents the Company’s investments in privately held companies, over which it has significant influence but does not own a majority equity interest or otherwise control. The Company applies the equity method to account for an equity investment, in common stock or in-substance common stock, according to ASC 323 “Investment — Equity Method and Joint Ventures”. An investment in in-substance common stock is an investment in an entity that has risk and reward characteristics that are substantially similar to that entity’s common stock. The Company considers subordination, risks and rewards of ownership and obligation to transfer value when determining whether an investment in an entity is substantially similar to an investment in that entity’s common stock. Under the equity method, the Company’s share of the post-acquisition profits or losses of the equity investee is recognized in the consolidated income statements and its share of post-acquisition movements in accumulated other comprehensive income is recognized in shareholders’ equity. When the Company’s share of losses in the equity investee equals or exceeds its interest in the equity investee, the Company does not recognize further losses, unless the Company has incurred obligations or made payments or guarantees on behalf of the equity investee. Investment loss of $1,087, $23,799 and $20,194 were recorded in the Company’s Consolidated Statements of Operations and Comprehensive Income for the years ended December 31, 2020, 2019 and 2018, respectively. For other equity investments that do not have readily determinable fair values and over which the Company has neither significant influence nor control through investments in common stock or in-substance common stock, the Company accounts for these investments at cost minus any impairment, if necessary. The Company continually reviews its investments in equity investees to determine whether a decline in fair value below the carrying value is other than temporary. The primary factors the Company considers in its determination are the length of time that the fair value of the investment is below the Company’s carrying value; the financial condition, operating performance and the prospects of the equity investee. If the decline in fair value is deemed to be other than temporary, the carrying value of the equity investee is written down to fair value. No impairment charges were recorded in investment losses in the Company’s Consolidated Statements of Operations and Comprehensive Income for the years ended December 31, 2020, 2019 and 2018. |
Impairment of long-lived assets | Impairment of long-lived assets The Company reviews its long-lived assets 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 amount of an asset may no longer be recoverable. When these events occur, the Company measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss, which is the excess of carrying amount over the fair value of the assets, using the expected future discounted cash flows. No impairments of long-lived assets were recognized as of December 31, 2020 and 2019 and 2018. |
Revenue recognition | Revenue recognition The Company recognizes revenue under Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers. The core principle of the new revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle: Step 1: Identify the contract with the customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize revenue when the company satisfies a performance obligation The Company mainly offers and generates revenue from four kinds of services to its clients in China, member services, enterprise services, online services and other services. Enterprise services include comprehensive tailored services, sponsorship advertising services, and consulting services. Revenue recognition policies for each type of the Company’s services are discussed as follows: Member services The Company offers three tiers of member services, Platinum, Diamond and Protégé, which differ in membership fees as well as the level of the services provided. Members pay a fixed fee for exchange of the right to participate in organized activities offered by the Company, such as study tours and forums, typically within one-year membership period. Any non-participating activities will expire and not be refunded beyond the agreed-upon period. Each member is entitled to choose from same activities offered by the Company for a total of seven times but different level of membership will receive different level of privileges at each activity, such as seating arrangement or private consultation opportunity etc. The activities for Platinum Members are also open to non-members, who pay a pre-set fee for participating in a single activity, while the Company does not offer Diamond and Protégé services to non-members separately. Each activity represents a separate performance obligation, which is typically 5 days or less. The Company uses an expected cost plus margin approach to estimate the standalone selling prices of each activity. As Members can benefit from each activity on their own in the same way and there is no material difference in the Company’s delivering costs, such as number of staffs involved and size of each activity. Therefore, membership fees are equally allocated to seven performance obligations when the Company determines transaction price of each performance obligation. The Company recognizes membership fees as revenue upon completion of each activity as the duration of each activity is short. Membership fees from non-participating activity will be recognized when the agreed-upon period has expired. Membership fees collected in advance are recorded as deferred revenue on the consolidated balance sheets. Enterprise services The Company charges its clients service fees for providing enterprise services, which mainly include comprehensive tailored services, sponsorship advertising services and consulting services. Comprehensive tailored services The comprehensive tailored services provide tailored packaged services to small and medium business, including conference and salon organization, booth exhibition services, on-site Mentors’ guidance, and other value-added services. The Company typically signs one-year framework agreements and a tailored services contract with the clients, which list the types of tailored services as ordered by the clients to fit their specific needs. Each tailored service is a separate performance obligation under ASC 606, as these performance obligations are distinct, the clients can benefit from each service on their own and the Company’s promises to deliver the services are separately identifiable from each other in the services contract. The performance of each tailored service is usually on a specific date designated by the clients. The Company establishes a uniform list for the unit price of each type of tailored services with reference to quoted market prices. If no quoted market price is available, the price will be estimated by using an expected cost plus a margin approach. The Company recognizes the price for each tailored service as revenue when the service has been provided on a specific date designated and the receipt of each tailored services is confirmed by the clients. If a client does not request certain items of the tailored services included in the services contract during the agreed-upon period, the Company will not refund the service fees and the revenue will be recognized upon expiration of service contracts. The tailored services fees collected before providing services are recorded as deferred revenue on the consolidated balance sheets. Sponsorship advertising service The Company provides sponsorship advertising service for its clients at certain activities it held, i.e. study tours and forums. The sponsorship advertising services are mainly to display banners with the clients’ information and distribute clients’ brochures through the activities, so that the clients can enhance their corporate and product image. The fee the Company charges for sponsorship advertising service is depending on multiple specific factors, including number of event participants, location, public interest, etc. The Company considers all factors and determines pricing for each contract separately. The sponsorship advertising fees are recognized as revenue when services have been provided on a specific date designated and receipt of sponsorship advertising services are confirmed by clients. Sponsorship advertising fees collected before providing services are recorded as deferred revenue on the consolidated balance sheets. Consulting services The Company provides consulting services to small and medium-sized enterprises by helping them to develop strategies and solutions including: corporate reorganization, product promotion and marketing, industry supply chain integration, corporate governance, financing and capital structure, etc. The consulting services are tailored to meet each client’s specific needs and requirements. Consulting fees are based on the specifics of the services provided, for instance, time and efforts required, etc. The Company considers comprehensive factors and determines prices with reference to quoted market prices. If no quoted market price is available, price will be estimated by using an expected cost plus a margin approach. Consulting fees are recognized as revenue when services have been provided and receipt of consulting services is confirmed by clients as the duration of services is short, typically one month or less. Consulting fees collected before providing any service are presented as deferred revenue on the consolidated balance sheets. Online services The Company provides two types of online services to the Company’s APP Users, which are questions and answers (Q&A) session with chosen Mentors and online streaming of courses and programs. Top-up credits are paid by Users through the Company’s APP platform, using which Users can purchase the online services. Users can raise questions to chosen Mentors or Experts with a fixed fee per Q&A session preset by Mentors or Experts. The Q&A session is usually provided by chosen Mentors or Experts within a course of a 72-hour period. The Company charges 30% of the Q&A fees as a facilitator of online services. The Q&A fees are allocated to the Company and chosen Mentors or Experts automatically by the APP on a 30%/70% split upon completion of Q&A sessions. The Company recognizes this online service fees as revenue at completion of Q&A sessions on a net basis, i.e., in the amount of 30% of allocated Q&A fees, as the Company merely provides a platform for its Users and is not the primary obligor of the Q&A session, neither has risks and rewards as principal. Prior to 2019, most of our online content were free for our User to enjoy because we mainly focused on growing our online knowledge sharing community. In November 2019, we started to implement a new fee structure for our online content, which grants Users the access to view various online courses and programs. Users can subscribe an annual VIP at a rate of RMB299. The VIP grants Users the access right to the Company’s VIP courses and programs over the subscription period. The Company recognizes the VIP annual subscription fees as revenue on a straight-line basis over VIP subscription period. Users can also purchase a-lar-cart courses and programs at a rate from RMB 9.9 to 299 per course or program by top-up credits through the Company’s APP platform. The payment for a-lar-cart course and program is not refundable. After the payment is collected by the Company, the Users obtain unlimited access to the courses and programs they purchased for without limitation. The Company recognizes the fees a-lar-cart courses and programs as revenue at the point of time that Users obtain the access to the courses and programs. Other revenues Other revenues are mainly generated from rendering of other services and sale of merchandises. The Company sells merchandises and recognizes the revenue at the amount to which it expects to be entitled on a gross basis at the point of time when clients obtain the control of the merchandises. Other services fees are mainly derived from non-member participation of study tours and forums at the service level of Platinum Members. The Company charges non-members a fixed fee for each Member activity and the price for non-members is determined based on our allocated Member pricing for each activity. Fees are usually collected on site at the date of each activity and revenues are recognized at the completion of such activity. |
Service costs | Service costs Service costs primarily include (1) the cost of holding activity, such as venue rental fees, conference equipment fees, (2) professional and consulting fees paid to third parties for our activity; (3) the fees paid to Mentors and Experts; and (4) labor costs. Service costs were $2,087,425, $2,109,649 and $1,142,596 for the years ended December 31, 2020, 2019 and 2018, respectively. |
Income taxes | Income taxes The Company accounts for income taxes under ASC 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The provisions of ASC 740-10-25, “Accounting for Uncertainty in Income Taxes,” prescribe a more-likely-than-not threshold for consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This interpretation also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures. The Company believes there were no uncertain tax positions at December 31, 2020 and 2019, respectively. The Company does not expect that its assessment regarding unrecognized tax positions will materially change over the next 12 months. The Company is not currently under examination by an income tax authority, nor has been notified that an examination is contemplated. |
Earnings per share | Earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS are computed by dividing income available to ordinary shareholders of the Company by the weighted average ordinary shares outstanding during the period. Diluted EPS takes into account the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised and converted into ordinary shares. As of December 31, 2020 and 2019, there were no dilutive shares. |
Comprehensive income | Comprehensive income Comprehensive income consists of two components, net income and other comprehensive loss. Other comprehensive loss refers to revenue, expenses, gains and losses that under U.S. GAAP are recorded as an element of shareholders’ equity but are excluded from net income. Other comprehensive loss consists of foreign currency translation adjustment resulting from the Company translating its financial statements from functional currency into reporting currency. |
Significant risks | Significant risks Currency risk A majority of the Company’s expense transactions are denominated in RMB and a significant portion of the Company and its subsidiaries’ assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (“PBOC”). Remittances in currencies other than RMB by the Company in China must be processed through the PBOC or other Company foreign exchange regulatory bodies which require certain supporting documentation in order to affect the remittance. The Company maintains certain bank accounts in the PRC. On May 1, 2015, China’s new Deposit Insurance Regulation came into effect, pursuant to which banking financial institutions, such as commercial banks, established in the PRC are required to purchase deposit insurance for deposits in RMB and in foreign currency placed with them. Such Deposit Insurance Regulation would not be effective in providing complete protection for the Company’s accounts, as its aggregate deposits are much higher than the compensation limit, which is RMB 500,000 for one bank. However, the Company believes that the risk of failure of any of these Chinese banks is remote. Bank failure is uncommon in the PRC and the Company believes that those Chinese banks that hold the Company’s cash and cash equivalents and short-term investments are financially sound based on public available information. Other than the deposit insurance mechanism in the PRC mentioned above, the Company’s bank accounts are not insured by Federal Deposit Insurance Corporation insurance or other insurance. Concentration and credit risk Financial instruments that potentially subject the Company to the concentration of credit risks consist of cash and short-term investments. The maximum exposures of such assets to credit risk are their carrying amounts as of the balance sheet dates. The Company deposits its cash and short-term investments with financial institutions located in jurisdictions where the subsidiaries are located. The Company believes that no significant credit risk exists as these financial institutions have high credit quality. The Company’s credit risk associated with its trading and other activities is measured on an individual counterparty basis, as well as by group of counterparties that share similar attributes. There was no revenue from clients which individually represented greater than 10% of the total revenues for the year ended December 31, 2020, 2019 and 2018, respectively. Concentrations of credit risk can be affected by changes in political, industry, or economic factors. To reduce the potential for risk concentration, The Company generally requires advanced payment before delivery of the services but may extend unsecured credit to its clients in the ordinary course of business. Credit limits are established and exposure is monitored in light of changing counterparty and market conditions. The Company did not have any material concentrations of credit risk outside the ordinary course of business as of December 31, 2020 and 2019. Interest rate risk Fluctuations in market interest rates may negatively affect our financial condition and results of operations. The Company is exposed to floating interest rate risk on cash deposit and floating rate borrowings, and the risks due to changes in interest rates is not material. The Company has not used any derivative financial instruments to manage our interest risk exposure. Other uncertainty risk The Company’s major operations are conducted in the PRC. Accordingly, the political, economic, and legal environments in the PRC, as well as the general state of the PRC’s economy may influence the Company’s business, financial condition, and results of operations. The Company’s major operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic, and legal environment. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, and rates and methods of taxation, among other things. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations including its organization and structure disclosed in Note 1, this may not be indicative of future results. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. The Company is an “emerging growth company” (“EGC”) as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, EGC can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses”, which will require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Further, the FASB issued ASU No. 2019-04, ASU 2019-05, ASU 2019-10, ASU 2019-11 and ASU 2020-02 to provide additional guidance on the credit losses standard. For all other entities, the amendments for ASU 2016-13 are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. Adoption of the ASUs is on a modified retrospective basis. The Company will adopt ASU 2016-13 from October 1, 2023. The Company is in the process of evaluating the effect of the adoption of this ASU. |
Organization and Business Des_2
Organization and Business Description (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule subsidiaries and variable interest entities | Name Date of Place of Percentage of Principal Activities Wholly owned subsidiaries Global Mentor Board March 22, HK 100 % Holding company of WFOE Beijing Mentor Board Union June 3, PRC 100 % Holding company Variable Interest Entity (“VIE”) and subsidiaries of VIE Global Mentor Board (Beijing) December 5, PRC VIE peer-to-peer knowledge sharing and enterprise service platform provider Global Mentor Board (Hangzhou) November 1, 2017 PRC 100 % Consulting, training and tailored services provider Global Mentor Board (Shanghai) June 30, PRC 51 % Consulting services provider Linking (Shanghai) Network December 29, 2017 PRC 51 % network technology development services and technical consulting services provider Shanghai Voice of Seedling June 22, PRC 51 % cultural and artistic exchanges and planning, conference services provider Shidong(Beijing)Information June 19, PRC 51 % information technology services provider Mentor Board Voice of Seeding (Shanghai) August 29, PRC 51 % Technical services provider Shidong Zibo Digital Technology Co., Ltd. (“GMB Zibo”) October 16, 2020 PRC 100 % Technical services provider |
Schedule of balance sheets | As of December 31, 2020 2019 Cash and cash equivalents $ 10,876,365 $ 9,417,214 Accounts receivable, net 12,218,473 5,279,266 Inventories 2,706,896 3,287,272 Due from related parties 167,562 - Prepaid expenses and other current assets 2,148,563 1,593,796 Total current assets 28,117,859 19,577,548 Property and equipment, net 3,397,273 168,949 Prepayments for property - 1,204,094 Intangible assets, net 4,293,813 4,746,552 Long-term investments 3,085,247 582,080 Operating lease right-of-use assets 100,099 449,124 Deferred tax assets 602,806 254,553 Total non-current assets 11,479,238 7,405,352 Total assets $ 39,597,097 $ 26,982,900 Accounts payable 33,697 2,814,662 Deferred revenue 250,309 583,520 Income taxes payable 4,706,972 1,866,274 Operating lease liabilities, current 63,301 263,796 Accrued expenses and other current liabilities 529,184 1,338,073 Total current liabilities 5,583,463 6,866,325 Operating lease liabilities, non-current 3,196 104,785 Non-current liabilities 3,196 104,785 Total liabilities $ 5,586,659 $ 6,971,110 |
Schedule of income statement | For the years ended 2020 2019 Total net revenue $ 23,107,340 $ 17,925,476 Net income $ 11,931,079 $ 9,396,130 |
Schedule of cash flow | For the years ended 2020 2019 Net cash provided by operating activities $ 6,769,950 $ 1,213,794 Net cash used in investing activities $ (6,137,098 ) $ (3,525,061 ) Net cash provided by financing activities $ 119,996 $ 238,128 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of currency exchange rates | December 31, December 31, December 31, Year-end spot rate US$1= RMB 6.5249 US$1= RMB 6.9762 US$1= RMB 6.8632 Average rate US$1= RMB 6.8976 US$1= RMB 6.8985 US$1= RMB 6.6174 |
Schedule of Property and equipment are stated at cost less accumulated depreciation | Building 30 years Electronic equipment 3 years Furniture, fixtures and equipment 3 years Vehicle 3 years Leasehold improvements The shorter of useful life and lease term |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Credit Loss, Additional Improvements [Abstract] | |
Schedule of accounts receivable | As of December 31, 2020 2019 Accounts receivable $ 14,027,362 $ 5,473,641 Less: allowance for doubtful accounts (1,808,889 ) (194,375 ) Accounts receivable, net $ 12,218,473 $ 5,279,266 |
Schedule of changes of allowance for doubtful accounts | As of December 31, 2020 2019 2018 Balance at beginning of the year $ (194,375 ) $ (43,129 ) $ (42,852 ) Current year addition (1,614,514 ) (151,246 ) (277 ) Balance at end of the year $ (1,808,889 ) $ (194,375 ) $ (43,129 ) |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | As of December 31, 2020 2019 Healthcare service gift cards $ 1,094,101 $ 1,146,756 Chinese tea 702,051 798,069 Learning course gift cards 444,451 716,723 Latex pillows 137,119 380,561 Healthcare products 216,733 220,819 Others 112,441 24,344 Total $ 2,706,896 $ 3,287,272 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Prepaid Expenses And Other Current Assets [Abstract] | |
Schedule of prepaid expenses and other current assets | As of December 31, 2020 2019 Prepaid expenses (1) $ 1,324,676 $ 159,569 Deferred offering cost 553,227 365,089 Other receivables 265,653 418,364 Interest receivable 128,388 297,191 Deposits for operating lease 40,384 44,587 Prepaid VAT 19,099 320,739 Loans to third parties 15,326 82,268 Subtotal 2,346,753 1,687,807 Less: allowance for other receivables (153,259 ) (143,345 ) Prepaid expenses and other current assets $ 2,193,494 $ 1,544,462 (1) Prepaid expenses as of December 31, 2020 mainly consisted of prepaid service fee paid by GMB Zibo which amounted to $760,548, and R&D prepayment paid by GMB IT which amounted to $379,354. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment, stated at cost less accumulated depreciation | As of December 31, 2020 2019 Building $ 2,991,492 $ - Vehicles 103,836 97,119 Electronic equipment 93,020 85,612 Furniture, fixtures and equipment 71,517 65,823 Leasehold improvements 30,652 - Construction in progress 319,735 - Subtotal 3,610,252 248,554 Less: Accumulated depreciation 212,979 79,605 Property and equipment, net $ 3,397,273 $ 168,949 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets stated at cost less accumulated amortization | As of December 31, 2020 2019 Copyrights of course videos $ 5,205,025 $ 4,868,304 Less: accumulated amortization 911,212 121,752 Intangible assets, net $ 4,293,813 $ 4,746,552 |
Schedule of future amortization of intangible asset | 2021 781,039 2022 781,039 2023 781,039 Thereafter 1,950,696 Total $ 4,293,813 |
Long-Term Investments (Tables)
Long-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of long-term investments | As of December 31, 2020 2019 Equity method investments: Shidong (Suzhou) Investment Co., Ltd. (“Suzhou Investment”) $ 67,926 $ 78,941 Equity investments without readily determinable fair value: Shenzhen Jiazhong Creative Capital LLP ("Jiazhong") 1,532,591 - Hangzhou Zhongfei Aerospace Health Management Co., Ltd. ("Zhongfei") 459,774 - Shanghai Zhongren Yinzhirun Investment Management Partnership (“Yinzhirun”) 306,518 286,689 Jiangxi Cheyi Tongcheng Car Networking Tech Co., Ltd.("Cheyi") 243,332 - Chengdu Zhongfuze Management LLP(“Zhongfuze”) 76,630 71,672 Shanghai Outu Home Furnishings Co., Ltd. (“Outu”) 76,630 71,672 Zhejiang Qianshier Household Co., Ltd.("Qianshier") 76,630 - Taizhoujia Menkou Auto Greengrocer’s Delivery Technology Co., Ltd. (“Taizhoujia”) 76,630 - Zhejiang Yueteng Information Technology Co., Ltd. (“Yueteng”) 76,630 - Shidong Funeng(Ruzhou) Industry Development Co., Ltd.( “Funeng”) 41,380 38,703 Dongguan Zhiduocheng Car Service Co., Ltd. (“Car Service”) 27,587 12,901 Beijing Yunshang E-commerce Co., Ltd. (“Yunshang E-commerce”) 22,989 21,502 Total $ 3,085,247 $ 582,080 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ASU 2016-02 Transition [Abstract] | |
Schedule of the components of lease expense | Statement of Income Location For the year ended December 31, For the year ended December 31, Lease Costs Operating lease expense General and administrative expenses $ 352,645 $ 379,355 Total lease expenses $ 352,645 $ 379,355 |
Schedule of maturity of lease liabilities under the non-cancelable operating leases | Operating 2021 $ 68,507 Total lease payments 68,507 Less: interest 2,010 Present value of lease liabilities $ 66,497 |
Accounts Payable (Tables)
Accounts Payable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of accounts payable | As of December 31, 2020 2019 Payable for purchase of intangible assets $ - $ 2,704,614 Payable for service costs 33,697 110,048 Total $ 33,697 $ 2,814,662 |
Deferred Revenue (Tables)
Deferred Revenue (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Revenue [Abstract] | |
Schedule of deferred revenue | As of December 31, 2020 2019 Advance from member services $ 231,182 $ 579,935 Advance from enterprise services 19,127 3,585 Total $ 250,309 $ 583,520 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Schedule of components of accrued expenses and other current liabilities | As of December 31, 2020 2019 VAT payable $ 472,926 $ 866,121 Accrued payroll and welfare 25,927 78,409 Refundable deposits - 289,556 Accrued expenses - 24,259 Others 30,331 79,728 Total $ 529,184 $ 1,338,073 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax provision | For the years ended 2020 2019 2018 Current Cayman Islands $ - $ - $ - BVI - - - Hong Kong - - - China 3,367,763 1,790,739 993,144 Deferred - - Cayman Islands - - - BVI - - - Hong Kong - - - China (312,780 ) (201,638 ) 165,321 Total $ 3,054,983 $ 1,589,101 $ 1,158,465 |
Schedule of income before income taxes and the actual provision of income taxes | For the years ended 2020 2019 2018 Profit before income taxes $ 15,012,270 $ 10,985,232 8,810,938 PRC EIT rate 25 % 25 % 25 % Income taxes computed at statutory EIT rate $ 3,753,068 $ 2,746,308 2,202,734 Reconciling items: Effect of tax holiday and preferential tax rate(a) (627,764 ) (1,072,447 ) (972,088 ) Effect of non-deductible expense 5,202 4,738 2,674 Super deduction of qualified R&D expenditures (75,523 ) (89,498 ) (74,855 ) Income tax expense $ 3,054,983 $ 1,589,101 1,158,465 Effective tax rate 20.35 % 14.47 % 13.15 % (a) For years ended December 31, 2020, 2019 and 2018, the tax saving as the result of the preferential tax rate amounted to $627,764, $1,072,447 and $972,088, respectively, and per share effect of the preferential tax rate were $0.04, $0.06 and $0.06, respectively. |
Schedule of deferred tax assets | As of December 31, 2020 2019 Net operating loss carry forwards $ 276,730 $ 184,458 Provision for doubtful debts 326,076 70,095 Deferred tax assets, gross 602,806 254,553 Less: Valuation allowance - - Deferred tax assets, net $ 602,806 $ 254,553 |
Related Party Balance and Tra_2
Related Party Balance and Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of due to related parties | As of December 31, 2020 2019 Due from related parties Bally $ 5,168 $ 12,250 Zhuhai Investment (1 ) 155,378 - Yihe Beijing (2 ) 12,184 - Total $ 172,730 $ 12,250 |
Shareholders_ Equity (Tables)
Shareholders’ Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of non-controlling interest | As of December 31, 2020 2019 GMB (Beijing) $ 75,853 $ 161,923 GMB Culture 146,872 130,346 GMB Linking 2,673 4,644 GMB Consulting 20,677 37,654 GMB Technology (134,925 ) (131,554 ) Total $ 111,150 $ 203,013 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of revenue by major service categories | For the years ended 2020 2019 2018 Member services $ 872,629 $ 2,525,084 $ 5,280,587 Enterprise services -Comprehensive tailored services 13,345,880 5,733,342 4,732,980 -Sponsorship advertising services 6,598,527 8,288,164 2,520,026 -Consulting services 416,634 1,189,169 793,400 Online services 361,933 66,304 8,098 Other revenues 1,585,481 123,413 203,908 Revenue, net $ 23,181,084 $ 17,925,476 $ 13,538,999 |
Organization and Business Des_3
Organization and Business Description (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2020¥ / shares | Dec. 31, 2019USD ($) | |
Organization and Business Description (Details) [Line Items] | |||
Option price | (per share) | $ 1.45 | ¥ 10 | |
Variable interest entity subsidiaries amount | $ 4,463,857 | $ 4,343,861 | |
Statutory reserves | $ 2,473,797 | $ 1,636,414 | |
Equity Pledge Agreement [Member] | SDH Shareholders [Member] | |||
Organization and Business Description (Details) [Line Items] | |||
Percentage of effective ownership | 100.00% | 100.00% |
Organization and Business Des_4
Organization and Business Description (Details) - Schedule subsidiaries and variable interest entities | 12 Months Ended |
Dec. 31, 2020 | |
Global Mentor Board Information Technology Limited (“GMB HK”) [Member] | |
Wholly owned subsidiaries | |
Date of Incorporation | Mar. 22, 2019 |
Place of incorporation | HK |
Percentage of effective ownership | 100.00% |
Principal Activities | Holding company of WFOE |
Beijing Mentor Board Union Information Technology Co, Ltd. (“GIOP BJ” or “WFOE”) [Member] | |
Wholly owned subsidiaries | |
Date of Incorporation | Jun. 3, 2019 |
Place of incorporation | PRC |
Percentage of effective ownership | 100.00% |
Principal Activities | Holding company |
Global Mentor Board (Beijing) Information Technology Co., Ltd. (“SDH” or “VIE”) [Member] | |
Wholly owned subsidiaries | |
Date of Incorporation | Dec. 5, 2014 |
Place of incorporation | PRC |
Percentage of effective ownership | 0.00% |
Principal Activities | peer-to-peer knowledge sharing and enterprise service platform provider |
Global Mentor Board (Hangzhou) Technology Co., Ltd. (“GMB (Hangzhou)”) [Member] | |
Wholly owned subsidiaries | |
Date of Incorporation | Nov. 1, 2017 |
Place of incorporation | PRC |
Percentage of effective ownership | 100.00% |
Principal Activities | Consulting, training and tailored services provider |
Global Mentor Board (Shanghai) Enterprise Management Consulting Co., Ltd. (“GMB Consulting”) [Member] | |
Wholly owned subsidiaries | |
Date of Incorporation | Jun. 30, 2017 |
Place of incorporation | PRC |
Percentage of effective ownership | 51.00% |
Principal Activities | Consulting services provider |
Linking (Shanghai) Network Technology Co., Ltd. (“Linking”) [Member] | |
Wholly owned subsidiaries | |
Date of Incorporation | Dec. 29, 2017 |
Place of incorporation | PRC |
Percentage of effective ownership | 51.00% |
Principal Activities | network technology development services and technical consulting services provider |
Shanghai Voice of Seedling Cultural Media Co., Ltd. (“GMB Culture”) [Member] | |
Wholly owned subsidiaries | |
Date of Incorporation | Jun. 22, 2017 |
Place of incorporation | PRC |
Percentage of effective ownership | 51.00% |
Principal Activities | cultural and artistic exchanges and planning, conference services provider |
Shidong(Beijing)Information Technology Co., LTD. (“GMB (Beijing)”) [Member] | |
Wholly owned subsidiaries | |
Date of Incorporation | Jun. 19, 2018 |
Place of incorporation | PRC |
Percentage of effective ownership | 51.00% |
Principal Activities | information technology services provider |
Mentor Board Voice of Seeding (Shanghai) Cultural Technology Co., Ltd. (“GMB Technology”) [Member | |
Wholly owned subsidiaries | |
Date of Incorporation | Aug. 29, 2018 |
Place of incorporation | PRC |
Percentage of effective ownership | 51.00% |
Principal Activities | Technical services provider |
Shidong Zibo Digital Technology Co., Ltd. (“GMB Zibo”) [Member] | |
Wholly owned subsidiaries | |
Date of Incorporation | Oct. 16, 2020 |
Place of incorporation | PRC |
Percentage of effective ownership | 100.00% |
Principal Activities | Technical services provider |
Organization and Business Des_5
Organization and Business Description (Details) - Schedule of balance sheets - VIE's [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Cash and cash equivalents | $ 10,876,365 | $ 9,417,214 |
Accounts receivable, net | 12,218,473 | 5,279,266 |
Inventories | 2,706,896 | 3,287,272 |
Due from related parties | 167,562 | |
Prepaid expenses and other current assets | 2,148,563 | 1,593,796 |
Total current assets | 28,117,859 | 19,577,548 |
Property and equipment, net | 3,397,273 | 168,949 |
Prepayments for property | 1,204,094 | |
Intangible assets, net | 4,293,813 | 4,746,552 |
Long-term investments | 3,085,247 | 582,080 |
Operating lease right-of-use assets | 100,099 | 449,124 |
Deferred tax assets | 602,806 | 254,553 |
Total non-current assets | 11,479,238 | 7,405,352 |
Total assets | 39,597,097 | 26,982,900 |
Accounts payable | 33,697 | 2,814,662 |
Deferred revenue | 250,309 | 583,520 |
Income taxes payable | 4,706,972 | 1,866,274 |
Operating lease liabilities, current | 63,301 | 263,796 |
Accrued expenses and other current liabilities | 529,184 | 1,338,073 |
Total current liabilities | 5,583,463 | 6,866,325 |
Operating lease liabilities, non-current | 3,196 | 104,785 |
Non-current liabilities | 3,196 | 104,785 |
Total liabilities | $ 5,586,659 | $ 6,971,110 |
Organization and Business Des_6
Organization and Business Description (Details) - Schedule of income statement - VIE's [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Income Statements, Captions [Line Items] | ||
Total net revenue | $ 23,107,340 | $ 17,925,476 |
Net income | $ 11,931,079 | $ 9,396,130 |
Organization and Business Des_7
Organization and Business Description (Details) - Schedule of cash flow - VIE's [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by operating activities | $ 6,769,950 | $ 1,213,794 |
Net cash used in investing activities | (6,137,098) | (3,525,061) |
Net cash provided by financing activities | $ 119,996 | $ 238,128 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | ||||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2020CNY (¥)¥ / shares | |
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Allowance amount | $ 1,808,889 | $ 194,375 | $ 43,129 | ||
Investment losses | $ 1,087 | 23,799 | 20,194 | ||
Q&A session fees description | The Q&A session is usually provided by chosen Mentors or Experts within a course of a 72-hour period. The Company charges 30% of the Q&A fees as a facilitator of online services. The Q&A fees are allocated to the Company and chosen Mentors or Experts automatically by the APP on a 30%/70% split upon completion of Q&A sessions. The Company recognizes this online service fees as revenue at completion of Q&A sessions on a net basis, i.e., in the amount of 30% of allocated Q&A fees, as the Company merely provides a platform for its Users and is not the primary obligor of the Q&A session, neither has risks and rewards as principal. | The Q&A session is usually provided by chosen Mentors or Experts within a course of a 72-hour period. The Company charges 30% of the Q&A fees as a facilitator of online services. The Q&A fees are allocated to the Company and chosen Mentors or Experts automatically by the APP on a 30%/70% split upon completion of Q&A sessions. The Company recognizes this online service fees as revenue at completion of Q&A sessions on a net basis, i.e., in the amount of 30% of allocated Q&A fees, as the Company merely provides a platform for its Users and is not the primary obligor of the Q&A session, neither has risks and rewards as principal. | |||
Annual rate (in Yuan Renminbi) | ¥ | ¥ 299 | ||||
Service costs | $ 2,087,425 | $ 2,109,649 | $ 1,142,596 | ||
Deposits (in Yuan Renminbi) | ¥ | ¥ 500,000 | ||||
Concentration of credit risk, percentage | 10.00% | 10.00% | 10.00% | 10.00% | |
GMB(Beijing) [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Ownership interest | 49.00% | 49.00% | 49.00% | ||
Minimum [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Estimated useful lives of intangible assets | 5 years | 5 years | |||
Price per share relating to course ot program (in Yuan Renminbi per share) | ¥ / shares | ¥ 9.9 | ||||
Maximum [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Estimated useful lives of intangible assets | 10 years | 10 years | |||
Price per share relating to course ot program (in Yuan Renminbi per share) | ¥ / shares | ¥ 299 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of currency exchange rates - RMB [Member] | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of Significant Accounting Policies (Details) - Schedule of currency exchange rates [Line Items] | |||
Year-end spot rate | US$1= RMB 6.5249 | US$1= RMB 6.9762 | US$1= RMB 6.8632 |
Average rate | US$1= RMB 6.8976 | US$1= RMB 6.8985 | US$1= RMB 6.6174 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of Property and equipment are stated at cost less accumulated depreciation | 12 Months Ended |
Dec. 31, 2020 | |
Building [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Property and equipment are stated at cost less accumulated depreciation [Line Items] | |
Expected useful lives | 30 years |
Electronic equipment [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Property and equipment are stated at cost less accumulated depreciation [Line Items] | |
Expected useful lives | 3 years |
Furniture, fixtures and equipment [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Property and equipment are stated at cost less accumulated depreciation [Line Items] | |
Expected useful lives | 3 years |
Vehicle [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Property and equipment are stated at cost less accumulated depreciation [Line Items] | |
Expected useful lives | 3 years |
Leasehold improvements [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Property and equipment are stated at cost less accumulated depreciation [Line Items] | |
Expected useful lives | The shorter of useful life and lease term |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - Schedule of accounts receivable - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of accounts receivable [Abstract] | ||
Accounts receivable | $ 14,027,362 | $ 5,473,641 |
Less: allowance for doubtful accounts | (1,808,889) | (194,375) |
Accounts receivable, net | $ 12,218,473 | $ 5,279,266 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details) - Schedule of changes of allowance for doubtful accounts - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of changes of allowance for doubtful accounts [Abstract] | |||
Balance at beginning of the period | $ (194,375) | $ (43,129) | $ (42,852) |
Current period addition | (1,614,514) | (151,246) | (277) |
Balance at end of the period | $ (1,808,889) | $ (194,375) | $ (43,129) |
Inventories, Net (Details) - Sc
Inventories, Net (Details) - Schedule of inventories - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory [Line Items] | ||
Total | $ 2,706,896 | $ 3,287,272 |
Healthcare service gift cards [Member] | ||
Inventory [Line Items] | ||
Total | 1,094,101 | 1,146,756 |
Chinese tea [Member] | ||
Inventory [Line Items] | ||
Total | 702,051 | 798,069 |
Learning course gift cards [Member] | ||
Inventory [Line Items] | ||
Total | 444,451 | 716,723 |
Latex pillows [Member] | ||
Inventory [Line Items] | ||
Total | 137,119 | 380,561 |
Healthcare products [Member] | ||
Inventory [Line Items] | ||
Total | 216,733 | 220,819 |
Others [Member] | ||
Inventory [Line Items] | ||
Total | $ 112,441 | $ 24,344 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Prepaid Expenses And Other Current Assets [Abstract] | |
Prepaid service fee | $ 760,548 |
R&D prepayments | $ 379,354 |
Prepaid Expenses and Other Cu_4
Prepaid Expenses and Other Current Assets (Details) - Schedule of prepaid expenses and other current assets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of prepaid expenses and other current assets [Abstract] | |||
Prepaid expenses | [1] | $ 1,324,676 | $ 159,569 |
Deferred offering cost | 553,227 | 365,089 | |
Other receivables | 265,653 | 418,364 | |
Interest receivable | 128,388 | 297,191 | |
Deposits for operating lease | 40,384 | 44,587 | |
Prepaid VAT | 19,099 | 320,739 | |
Loans to third parties | 15,326 | 82,268 | |
Subtotal | 2,346,753 | 1,687,807 | |
Less: allowance for other receivables | (153,259) | (143,345) | |
Prepaid expenses and other current assets | $ 2,193,494 | $ 1,544,462 | |
[1] | Prepaid expenses as of December 31, 2020 mainly consisted of prepaid service fee paid by GMB Zibo which amounted to $760,548, and R&D prepayment paid by GMB IT which amounted to $379,354. |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 126,589 | $ 46,124 | $ 20,882 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details) - Schedule of property and equipment, stated at cost less accumulated depreciation - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 3,610,252 | $ 248,554 |
Less: Accumulated depreciation | 212,979 | 79,605 |
Property and equipment, net | 3,397,273 | 168,949 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 2,991,492 | |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 103,836 | 97,119 |
Electronic equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 93,020 | 85,612 |
Furniture, fixtures and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 71,517 | 65,823 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 30,652 | |
Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 319,735 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 738,837 | $ 121,752 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of intangible assets stated at cost less accumulated amortization - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of intangible assets stated at cost less accumulated amortization [Abstract] | ||
Copyrights of course videos | $ 5,205,025 | $ 4,868,304 |
Less: accumulated amortization | 911,212 | 121,752 |
Intangible assets, net | $ 4,293,813 | $ 4,746,552 |
Intangible Assets, Net (Detai_3
Intangible Assets, Net (Details) - Schedule of future amortization of intangible asset - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of future amortization of intangible asset [Abstract] | ||
2021 | $ 781,039 | |
2022 | 781,039 | |
2023 | 781,039 | |
Thereafter | 1,950,696 | |
Total | $ 4,293,813 | $ 4,746,552 |
Long-Term Investments (Details)
Long-Term Investments (Details) | Jun. 30, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Sep. 30, 2019CNY (¥) | Aug. 31, 2019CNY (¥) | Dec. 31, 2017CNY (¥) | Nov. 30, 2017CNY (¥) | Mar. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Jun. 30, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Nov. 30, 2020CNY (¥) | May 31, 2019 |
Long-Term Investments (Details) [Line Items] | |||||||||||||||
Recognized investment losses (in Dollars) | $ | $ 1,087 | $ 23,799 | $ 20,194 | ||||||||||||
Diluted percentage of service | 0.98% | ||||||||||||||
Suzhou Investment [Member] | |||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||
Percentage of acquired shareholding | 17.00% | ||||||||||||||
Cash consideration | ¥ 850,000 | ||||||||||||||
Recognized investment losses (in Dollars) | $ | $ 15,585 | $ 24,014 | $ 20,194 | ||||||||||||
Yinzhirun [Member] | |||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||
Percentage of acquired shareholding | 0.45% | ||||||||||||||
Cash consideration | ¥ 2,000,000 | ||||||||||||||
Yunshang E-commerce [Member] | |||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||
Percentage of acquired shareholding | 1.25% | ||||||||||||||
Cash consideration | ¥ 150,000 | ||||||||||||||
Investment in Car Service [Member] | |||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||
Percentage of acquired shareholding | 1.50% | ||||||||||||||
Cash consideration | ¥ 90,000 | ||||||||||||||
Paid consideration | ¥ 10,000,000 | ||||||||||||||
Funeng [Member] | |||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||
Percentage of acquired shareholding | 19.00% | ||||||||||||||
Cash consideration | ¥ 570,000 | ||||||||||||||
Paid consideration | ¥ 270,000 | ||||||||||||||
Zhongfuze [Member] | |||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||
Percentage of acquired shareholding | 11.11% | ||||||||||||||
Cash consideration | ¥ 500,000 | ||||||||||||||
Paid consideration | ¥ 500,000 | ||||||||||||||
Outu [Member] | |||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||
Percentage of acquired shareholding | 15.00% | 15.00% | |||||||||||||
Cash consideration | ¥ 3,000,000 | ||||||||||||||
Paid consideration | ¥ 500,000 | ||||||||||||||
Total Consideration payable | ¥ 3,000,000 | ||||||||||||||
Taizhoujia [Member] | |||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||
Percentage of acquired shareholding | 5.00% | 5.00% | |||||||||||||
Account receivables due | ¥ 500,000 | ¥ 500,000 | |||||||||||||
Yueteng [Member] | |||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||
Percentage of acquired shareholding | 5.00% | 5.00% | |||||||||||||
Account receivables due | ¥ 500,000 | ¥ 500,000 | |||||||||||||
Qianshier [Member] | |||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||
Percentage of acquired shareholding | 5.00% | ||||||||||||||
Account receivables due | ¥ 500,000 | ||||||||||||||
Jiazhong [Member] | |||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||
Percentage of acquired shareholding | 33.00% | ||||||||||||||
Cash consideration | ¥ 10,000,000 | ||||||||||||||
Zhongfei [Member] | |||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||
Percentage of acquired shareholding | 3.00% | ||||||||||||||
Account receivables due | ¥ 3,000,000 | ||||||||||||||
Cheyi [Member] | |||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||
Percentage of acquired shareholding | 0.50% | ||||||||||||||
Account receivables due | ¥ 1,587,719 |
Long-Term Investments (Detail_2
Long-Term Investments (Details) - Schedule of long-term investments - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Long-Term Investments (Details) - Schedule of long-term investments [Line Items] | ||
Total | $ 3,085,247 | $ 582,080 |
Shidong (Suzhou) Investment Co., Ltd. (“Suzhou Investment”) [Member] | ||
Long-Term Investments (Details) - Schedule of long-term investments [Line Items] | ||
Total | 67,926 | 78,941 |
Shenzhen Jiazhong Creative Capital LLP ("Jiazhong") [Member] | ||
Long-Term Investments (Details) - Schedule of long-term investments [Line Items] | ||
Total | 1,532,591 | |
Hangzhou Zhongfei Aerospace Health Management Co., Ltd. ("Zhongfei") [Member] | ||
Long-Term Investments (Details) - Schedule of long-term investments [Line Items] | ||
Total | 459,774 | |
Shanghai Zhongren Yinzhirun Investment Management Partnership (“Yinzhirun”) [Member] | ||
Long-Term Investments (Details) - Schedule of long-term investments [Line Items] | ||
Total | 306,518 | 286,689 |
Jiangxi Cheyi Tongcheng Car Networking Tech Co., Ltd.("Cheyi") [Member] | ||
Long-Term Investments (Details) - Schedule of long-term investments [Line Items] | ||
Total | 243,332 | |
Chengdu Zhongfuze Management LLP(“Zhongfuze”) [Member] | ||
Long-Term Investments (Details) - Schedule of long-term investments [Line Items] | ||
Total | 76,630 | 71,672 |
Shanghai Outu Home Furnishings Co., Ltd. (“Outu”) [Member] | ||
Long-Term Investments (Details) - Schedule of long-term investments [Line Items] | ||
Total | 76,630 | 71,672 |
Zhejiang Qianshier Household Co., Ltd.("Qianshier") [Member] | ||
Long-Term Investments (Details) - Schedule of long-term investments [Line Items] | ||
Total | 76,630 | |
Taizhoujia Menkou Auto Greengrocer’s Delivery Technology Co., Ltd. (“Taizhoujia”) [Member] | ||
Long-Term Investments (Details) - Schedule of long-term investments [Line Items] | ||
Total | 76,630 | |
Zhejiang Yueteng Information Technology Co., Ltd. (“Yueteng”) [Member] | ||
Long-Term Investments (Details) - Schedule of long-term investments [Line Items] | ||
Total | 76,630 | |
Shidong Funeng(Ruzhou) Industry Development Co., Ltd.( “Funeng”) [Member] | ||
Long-Term Investments (Details) - Schedule of long-term investments [Line Items] | ||
Total | 41,380 | 38,703 |
Dongguan Zhiduocheng Car Service Co., Ltd. (“Car Service”) [Member] | ||
Long-Term Investments (Details) - Schedule of long-term investments [Line Items] | ||
Total | 27,587 | 12,901 |
Beijing Yunshang E-commerce Co., Ltd. (“Yunshang E-commerce”) [Member] | ||
Long-Term Investments (Details) - Schedule of long-term investments [Line Items] | ||
Total | $ 22,989 | $ 21,502 |
Leases (Details)
Leases (Details) | Dec. 31, 2020 |
Leases (Details) [Line Items] | |
Leases with an initial term | 12 months |
Land Related [Member] | |
Leases (Details) [Line Items] | |
Weighted average discount rate | 4.75% |
Equipment [Member] | |
Leases (Details) [Line Items] | |
Weighted average remaining lease terms | 1 year 127 days |
Leases (Details) - Schedule of
Leases (Details) - Schedule of the components of lease expense - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lease Costs | ||
Total lease expenses | $ 352,645 | $ 379,355 |
General and administrative expenses [Member] | ||
Lease Costs | ||
Operating lease expense | $ 352,645 | $ 379,355 |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of maturity of lease liabilities under the non-cancelable operating leases | Dec. 31, 2020USD ($) |
Schedule of maturity of lease liabilities under the non-cancelable operating leases [Abstract] | |
2021 | $ 68,507 |
Total lease payments | 68,507 |
Less: interest | 2,010 |
Present value of lease liabilities | $ 66,497 |
Accounts Payable (Details) - Sc
Accounts Payable (Details) - Schedule of accounts payable - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of accounts payable [Abstract] | ||
Payable for purchase of intangible assets | $ 2,704,614 | |
Payable for service costs | $ 33,697 | 110,048 |
Total | $ 33,697 | $ 2,814,662 |
Deferred Revenue (Details) - Sc
Deferred Revenue (Details) - Schedule of deferred revenue - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of deferred revenue [Abstract] | ||
Advance from member services | $ 231,182 | $ 579,935 |
Advance from enterprise services | 19,127 | 3,585 |
Total | $ 250,309 | $ 583,520 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - Schedule of components of accrued expenses and other current liabilities - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of components of accrued expenses and other current liabilities [Abstract] | ||
VAT payable | $ 472,926 | $ 866,121 |
Accrued payroll and welfare | 25,927 | 78,409 |
Refundable deposits | 289,556 | |
Accrued expenses | 24,259 | |
Others | 30,331 | 79,728 |
Total | $ 529,184 | $ 1,338,073 |
Taxes (Details)
Taxes (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jan. 17, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Taxes (Details) [Line Items] | ||||
Description of income tax | The applicable VAT rate is 6% for general taxpayers and 3% for small-scale taxpayer. | |||
Statutory income tax rate, percentage | 5.00% | |||
Preferential tax rate | 15.00% | |||
Description of income tax law | Therefore, SDH is eligible to enjoy a preferential tax rate of 15% from 2017 to 2023 to the extent it has taxable income under the EIT Law. | |||
Income tax rate policy, description | the State Taxation Administration issues the notice on the scope of small-scale and low-profit corporate income tax preferential policies of the Ministry of Finance and the State Administration of Taxation, [2019] No. 13 for small-scale and low-profit enterprises whose annual taxable income is less than RMB1,000,000 (including RMB 1,000,000), approximately US$153,259, their income is reduced by 25% to the taxable income, and enterprise income tax is paid at 20% tax rate, which is essentially resulting in a favorable income tax rate of 5%. While the portion of annual taxable income exceeding RMB1,000,000, approximately US$144,959, but not more than RMB3,000,000, approximately US$459,777, which is essentially resulting in a favorable income tax rate of 10%. | |||
PRC EIT rate | 25.00% | 25.00% | 25.00% | |
Tax saving as preferential tax rate | $ 627,764 | $ 1,072,447 | $ 972,088 | |
Preferential tax rate per share (in Dollars per share) | $ 0.04 | $ 0.06 | $ 0.06 | |
Accumulated operating loss | $ 1,106,920 | $ 746,141 | ||
Hong Kong [Member] | ||||
Taxes (Details) [Line Items] | ||||
Rate of income tax, description | From year of assessment of 2019/2020 onwards, Hong Kong profit tax rates are 8.25% on assessable profits up to HK$2,000,000, and 16.5% on any part of assessable profits over HK$2,000,000. | |||
China [Member] | ||||
Taxes (Details) [Line Items] | ||||
Statutory income tax rate, percentage | 25.00% |
Taxes (Details) - Schedule of i
Taxes (Details) - Schedule of income tax provision - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Taxes (Details) - Schedule of income tax provision [Line Items] | |||
Total | $ 3,054,983 | $ 1,589,101 | $ 1,158,465 |
Cayman Islands [Member] | |||
Taxes (Details) - Schedule of income tax provision [Line Items] | |||
Current | |||
Deferred | |||
BVI [Member] | |||
Taxes (Details) - Schedule of income tax provision [Line Items] | |||
Current | |||
Deferred | |||
Hong Kong [Member] | |||
Taxes (Details) - Schedule of income tax provision [Line Items] | |||
Current | |||
Deferred | |||
China [Member] | |||
Taxes (Details) - Schedule of income tax provision [Line Items] | |||
Current | 3,367,763 | 1,790,739 | 993,144 |
Deferred | $ (312,780) | $ (201,638) | $ 165,321 |
Taxes (Details) - Schedule of_2
Taxes (Details) - Schedule of income before income taxes and the actual provision of income taxes - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of income before income taxes and the actual provision of income taxes [Abstract] | |||
Profit before income taxes | $ 15,012,270 | $ 10,985,232 | $ 8,810,938 |
PRC EIT rate | 25.00% | 25.00% | 25.00% |
Income taxes computed at statutory EIT rate | $ 3,753,068 | $ 2,746,308 | $ 2,202,734 |
Reconciling items: | |||
Effect of tax holiday and preferential tax rate(a) | (627,764) | (1,072,447) | (972,088) |
Effect of non-deductible expense | 5,202 | 4,738 | 2,674 |
Super deduction of qualified R&D expenditures | (75,523) | (89,498) | (74,855) |
Income tax expense | $ 3,054,983 | $ 1,589,101 | $ 1,158,465 |
Effective tax rate | 20.35% | 14.47% | 13.15% |
Taxes (Details) - Schedule of d
Taxes (Details) - Schedule of deferred tax assets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of deferred tax assets [Abstract] | ||
Net operating loss carry forwards | $ 276,730 | $ 184,458 |
Provision for doubtful debts | 326,076 | 70,095 |
Deferred tax assets, gross | 602,806 | 254,553 |
Less: Valuation allowance | ||
Deferred tax assets, net | $ 602,806 | $ 254,553 |
Related Party Balance and Tra_3
Related Party Balance and Transactions (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Balance and Transactions (Details) [Line Items] | |||
Total revenue | $ 23,181,084 | $ 17,925,476 | $ 13,538,999 |
Zhifang Marketing [Member] | |||
Related Party Balance and Transactions (Details) [Line Items] | |||
Total revenue | 95,181 | ||
Service cost | 291,533 | ||
Yihe Beijing [Member] | |||
Related Party Balance and Transactions (Details) [Line Items] | |||
Service cost | 90,150 | ||
Yihe Beijing [Member] | |||
Related Party Balance and Transactions (Details) [Line Items] | |||
Service cost | |||
Yihe Beijing [Member] | |||
Related Party Balance and Transactions (Details) [Line Items] | |||
Shareholder equity, percentage | 40.00% | ||
Service cost | $ 69,134 | ||
Zhifang Marketing [Member] | |||
Related Party Balance and Transactions (Details) [Line Items] | |||
Shareholder equity, percentage | 49.00% | ||
Total revenue | |||
Service cost | 27,175 | ||
Zhuhai Investment [Member] | |||
Related Party Balance and Transactions (Details) [Line Items] | |||
Rental fee | $ 96,695 | $ 75,009 | |
Mr. Xiaoli Chen [Member] | |||
Related Party Balance and Transactions (Details) [Line Items] | |||
Shareholder equity, percentage | 33.00% |
Related Party Balance and Tra_4
Related Party Balance and Transactions (Details) - Schedule of balances of amount due from related parties - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | |
Due from related parties | |||
Total | $ 172,730 | $ 12,250 | |
Bally [Member] | |||
Due from related parties | |||
Total | 5,168 | 12,250 | |
Zhuhai Investment [Member] | |||
Due from related parties | |||
Total | [1] | 155,378 | |
Yihe Beijing [Member] | |||
Due from related parties | |||
Total | [2] | $ 12,184 | |
[1] | The balance as of December 31, 2020 represented the prepaid rental fee for 2021 to the related party. | ||
[2] | The balance as of December 31, 2020 represented the consulting fees prepaid to the related party. |
Shareholders_ Equity (Details)
Shareholders’ Equity (Details) - USD ($) | Apr. 02, 2020 | Aug. 08, 2019 | Apr. 24, 2020 | Feb. 22, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Feb. 16, 2019 |
Shareholders’ Equity (Details) [Line Items] | |||||||
Ordinary shares, authorized (in Shares) | 500,000,000 | 500,000,000 | |||||
Ordinary shares, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | |||||
First reverse stock split, description | 0.88-for-one reverse stock split of the Company’s outstanding and issued ordinary shares (the “First Reverse Stock Split”), which became effective on April 3, 2020. Any fractional ordinary share that would have otherwise resulted from the First Reverse Stock Split were rounded up to the nearest full share. The First Reverse Stock Split did not change the par value of the ordinary shares and had no effect on the number of authorized ordinary shares of the Company. As a result of the First Reverse Stock Split, 28,000,000 ordinary shares that were issued and outstanding at April 3, 2020 was reduced to 24,640,000 ordinary shares (taking into account the rounding of fractional shares). | one-for-0.68 reverse stock split of the Company’s issued and outstanding ordinary shares (the “Second Reverse Stock Split”), which became effective on April 24, 2020. Any fractional ordinary share that would have otherwise resulted from the Second Reverse Stock Split were rounded up to the nearest full share. The Second Reverse Stock Split did not change the par value of the ordinary shares and had no effect on the number of authorized ordinary shares of the Company. As a result of the Second Reverse Stock Split, 24,640,000 ordinary shares that were issued and outstanding at April 24, 2020 was reduced to 16,800,000 ordinary shares (taking into account the rounding of fractional shares). | |||||
Statutory reserves, description | As of December 31, 2019 and 2020, the statutory reserves of the Company’s WFOE, VIE and VIE’s subsidiaries in the PRC have not reached 50% of their respective registered capital except GMB Zibo. | ||||||
Statutory reserves | $ 2,473,797 | $ 1,636,414 | |||||
GIOP [Member] | |||||||
Shareholders’ Equity (Details) [Line Items] | |||||||
Ordinary shares, authorized (in Shares) | 500,000,000 | ||||||
Ordinary shares, par value (in Dollars per share) | $ 0.0001 | ||||||
Share issued (in Shares) | 27,000,000 | 999,999 | |||||
Price per share (in Dollars per share) | $ 0.0001 | ||||||
Total consideration | $ 2,800 | ||||||
Statutory reserves, description | They are required to allocate 10% of their after-tax profits to fund statutory reserves until such reserves have reached 50% of their respective registered capital. | ||||||
GMB Culture [Member] | |||||||
Shareholders’ Equity (Details) [Line Items] | |||||||
Equity interest, percentage | 40.00% | ||||||
Capital contributions | 8,296 | ||||||
GMB Culture [Member] | Non-controlling shareholders [Member] | |||||||
Shareholders’ Equity (Details) [Line Items] | |||||||
Capital contributions | 87,247 | ||||||
GMB(Beijing) [Member] | |||||||
Shareholders’ Equity (Details) [Line Items] | |||||||
Capital contributions | 152,117 | ||||||
GMB(Beijing) [Member] | Non-controlling shareholders [Member] | |||||||
Shareholders’ Equity (Details) [Line Items] | |||||||
Capital contributions | $ 150,881 | ||||||
Osiris International Cayman Limited [Member] | |||||||
Shareholders’ Equity (Details) [Line Items] | |||||||
Price per share (in Dollars per share) | $ 0.0001 |
Shareholders_ Equity (Details)
Shareholders’ Equity (Details) - Schedule of non-controlling interest - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Shareholders’ Equity (Details) - Schedule of non-controlling interest [Line Items] | ||
Total | $ 111,150 | $ 203,013 |
GMB(Beijing) [Member] | ||
Shareholders’ Equity (Details) - Schedule of non-controlling interest [Line Items] | ||
Total | 75,853 | 161,923 |
GMB Culture [Member] | ||
Shareholders’ Equity (Details) - Schedule of non-controlling interest [Line Items] | ||
Total | 146,872 | 130,346 |
GMB Linking [Member] | ||
Shareholders’ Equity (Details) - Schedule of non-controlling interest [Line Items] | ||
Total | 2,673 | 4,644 |
GMB Consulting [Member] | ||
Shareholders’ Equity (Details) - Schedule of non-controlling interest [Line Items] | ||
Total | 20,677 | 37,654 |
GMB Technology [Member] | ||
Shareholders’ Equity (Details) - Schedule of non-controlling interest [Line Items] | ||
Total | $ (134,925) | $ (131,554) |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Decoration Agreements [Member] | |
Commitments and Contingencies (Details) [Line Items] | |
Description of commitments | the Company signed office decoration agreements with a third party to decorate the office space rented by GMB Zibo with a total consideration of US$805,022. The Company has paid US$241,507 as a prepayment as of December 31, 2020. The Company expects to pay the rest of consideration of US$563,515 in second quarter of 2021. |
Segment Reporting (Details) - S
Segment Reporting (Details) - Schedule of revenue by major service categories - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Member services [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenue, net | $ 872,629 | $ 2,525,084 | $ 5,280,587 |
Comprehensive tailored services [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenue, net | 13,345,880 | 5,733,342 | 4,732,980 |
Sponsorship advertising services [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenue, net | 6,598,527 | 8,288,164 | 2,520,026 |
Consulting services [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenue, net | 416,634 | 1,189,169 | 793,400 |
Online services [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenue, net | 361,933 | 66,304 | 8,098 |
Other services [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenue, net | 1,585,481 | 123,413 | 203,908 |
Revenue, net [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenue, net | $ 23,181,084 | $ 17,925,476 | $ 13,538,999 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Feb. 11, 2021 | Apr. 19, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Subsequent Events (Details) [Line Items] | ||||
Common stock, par value | $ 0.0001 | $ 0.0001 | ||
Subsequent Event [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Total net proceeds | $ 27,569,378 | |||
IPO [Member] | Subsequent Event [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Ordinary shares issued | 6,720,000 | |||
Common stock, par value | $ 0.001 | |||
Share price | $ 4 | |||
Total gross proceeds | $ 26,880,000 | |||
Over-Allotment Option [Member] | Subsequent Event [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Ordinary shares issued | 1,008,000 | |||
Common stock, par value | $ 0.001 | |||
Share price | $ 4 | |||
Total gross proceeds | $ 4,032,000 | |||
Forecast [Member] | Shidong Trading [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Ownership percentage | 60.00% | |||
Registered capital | $ 4,597,772 |