ORGANIZATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 - ORGANIZATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Operations PONY GROUP INC, (The “Company” or “PONY”) was incorporated on Jan 7, 2019 in the state of Delaware. On March 7, 2019, Pony Group Inc (the “Purchaser”), and Wenxian Fan, the sole owner of PONY LIMOUSINE SERVICES LIMITED, entered into a Stock Purchase Agreement (the “Purchase Agreement”), pursuant to which Wenxian Fan (the “Seller”) would sell to the Purchaser, and the Purchaser will purchase from the Seller, 10,000 shares of the PONY LIMOUSINE SERVICES LIMITED, which represented 100% of the shares. On March 07, 2019, this transaction was completed. PONY LIMOUSINE SERVICES LIMITED (“PONYHK”) is a limited liability company formed under the laws of Hong Kong on April 28, 2106, which was formed by FAN WENXIAN. Its registered office is located at FLAT/RM 01 11/f, LUCKY COMM BLDG, 103 DES VOEUX RD WEST, SHEUNG WAN, HONG KONG. The business nature of the Company is to provide cross boarder limousine services to customers. On February 2, 2019, Universe Travel Culture & Technology Ltd. (“Universe Travel”) was incorporated as a wholly-owned PRC subsidiary of Pony HK Details of the Company’s structure as of June 30, 2021 is as follow: Reverse Merger Accounting Basis of Accounting and Presentation Cash and Cash Equivalents Accounts Receivable As of June 30, 2021 and December 31, 2020, accounts receivable was $13,380 and $40,705, respectively. The company considers accounts receivable to be fully collectible and determined that an allowance for doubtful accounts was not necessary. PONY LIMOUSINE SERVICES LIMITED, a 100% subsidiary of the Company, has agreements with its two major clients that the payments for the services rendered be settled every six months. The two major clients account for 87.00% of the revenue for the six months ended June 30, 2021 and 57.00% for the same period 2020, respectively. Revenue Recognition Cost of revenue Income Taxes Foreign Currency Translation The exchange rates used to translate amounts in HK$ and RMB into USD for the purposes of preparing the financial statements were as follows: June 30, 2020 Balance sheet HK$7.77 to US $1.00 RMB 6.46 to US $1.00 Statement of operation and other comprehensive income HK$7.77 to US $1.00 RMB 6.46 to US$1.00 December 31, 2020 Balance sheet HK$7.75 to US $1.00 RMB 6.53 to US $1.00 June 30, 2020 Statement of operation and other comprehensive income HK$7.76 to US $1.00 RMB 7.03 to US$1.00 |