| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES Basis of Preparation of Financial Statements The condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). The condensed
consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company
transactions and balances have been eliminated in consolidation. The condensed consolidated financial statements of
the Company as of and for the nine months ended September 30, 2023 and 2022 are unaudited. In the opinion of management, all adjustments
(including normal recurring adjustments) that have been made are necessary to fairly present the financial position of the Company as
of September 30, 2023, the results of its operations for the nine months ended September 30, 2023 and 2022, and its cash flows for the
nine months ended September 30, 2023 and 2022. Operating results for the quarterly periods presented are not necessarily indicative of
the results to be expected for a full fiscal year. The statements and related notes have been prepared
pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, certain information
and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to
such rules and regulations. These financial statements should be read in conjunction with the financial statements and other information
included in the Company’s Annual Report on Form 10-K as filed with the SEC for the fiscal year ended December 31, 2022. Revenue recognition The Company follows the guidance of Accounting Standards
Codification (ASC) 606, Revenue from Contracts Digital Assets The Company accounts for its digital assets, which
are comprised solely of bitcoin, as indefinite-lived intangible assets in accordance with Accounting Standards Codification (“ASC”)
350, Intangibles—Goodwill and Other. The Company’s digital assets are initially recorded at cost. Subsequently, they are measured
at cost, net of any impairment losses incurred since acquisition. Impairment losses are recognized as “Digital asset impairment
losses” in the Company’s Consolidated Statement of Operations in the period in which the impairment occurs. Gains (if any)
are not recorded until realized upon sale, at which point they are presented net of any impairment losses in the Company’s Consolidated
Statements of Operations. In determining the gain to be recognized upon sale, the Company calculates the difference between the sales
price and carrying value of the specific bitcoins sold immediately prior to sale. The following table summarizes the Company’s
digital asset holdings as of:
Schedule of digital asset holdings
September
30, December 31,
Approximate number of bitcoins held 833 —
Digital assets carrying value $ 21,930,658 $ —
Cumulative asset impairment losses $ 3,059,342 $ — As of September 30, 2023, approximately 833 21,930,658 million on the Company’s Consolidated Balance Sheets as of September 30, 2023. Cash and Cash Equivalents The Company considers all highly liquid debt instruments
purchased with a maturity period of three months or less to be cash or cash equivalents. The carrying amounts reported in the accompanying
unaudited condensed consolidated balance sheets for cash and cash equivalents approximate their fair value. All of the Company’s
cash that is held in bank accounts in Singapore, Hong Kong and PRC are not protected by Federal Deposit Insurance Corporation (“FDIC”)
insurance. Foreign Currency The Company’s principal country of operations
is the PRC. The accompanying condensed consolidated financial statements are presented in US$. The functional currency of the Company
is US$, and the functional currency of the Company’s subsidiaries is RMB. The condensed consolidated financial statements are translated
into US$ from RMB at year-end exchange rates as to assets and liabilities and average exchange rates as to revenues and expenses. Capital
accounts are translated at their historical exchange rates when the capital transactions occurred. The resulting translation adjustments
are recorded as a component of shareholders’ equity included in other comprehensive income. Gains and losses from foreign currency
transactions are included in profit or loss. There were no gains and losses from foreign currency transactions from the inception to September
30, 2023.
Schedule of exchange rate
September 30, December 31,
RMB: US$ exchange rate 7.27 6.9
The balance sheet amounts, with the exception of equity,
September 30, 2023 and December 31, 2022 were translated at 7.27 6.9 1.00 7.05 6.75 1.00 Consolidation The Company’s condensed consolidated financial
statements include the financial statements of the Group and subsidiaries. All transactions and balances among the Group and its subsidiaries
have been eliminated upon consolidation. Use of Estimates The preparation of financial statements in conformity
with US GAAP requires management to make judgement estimates and assumptions that affect the amounts reported in the condensed consolidated
financial statements and accompanying notes. Management believes that the estimates used in preparing the financial statements are reasonable
and prudent; however, actual results could differ from these estimates. Significant accounting estimates include the allowance for doubtful
accounts, useful lives of intangible asset, valuation of deferred tax assets, and certain accrued liabilities such as contingent liabilities. Accounts Receivable Accounts receivables are presented net of allowance
for doubtful accounts. The Company uses specific identification in providing for bad debts when facts and circumstances indicate that
collection is doubtful and based on factors listed in the following paragraph. If the financial conditions of its customers were to deteriorate,
resulting in an impairment of their ability to make payments, additional allowance may be required. The Company maintains an allowance for doubtful accounts
which reflects its best estimate of amounts that potentially will not be collected. The Company determines the allowance for doubtful
accounts on general basis taking into consideration various factors including but not limited to historical collection experience and
credit-worthiness of the customers as well as the age of the individual receivables balance. Additionally, the Company makes specific
bad debt provisions based on any specific knowledge the Company has acquired that might indicate that an account is uncollectible. The
facts and circumstances of each account may require the Company to use substantial judgment in assessing its collectability. Leases The Company adopted Accounting Standards Update No.
2016-02, Leases (Topic 842) (ASU 2016-02), and generally requires lessees to recognize operating and financing lease liabilities and corresponding
right-of-use (ROU) assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash
flows arising from leasing arrangements. Operating leases are included in operating lease right-of-use
(“ROU”) assets and short-term and long-term lease liabilities in our condensed consolidated balance sheets. Finance leases
are included in property and equipment, other current liabilities, and other long-term liabilities in our condensed consolidated balance
sheets. ROU assets represent the Company’s right to
use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising
from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments
over the lease term. As most of the leases do not provide an implicit rate, we use the industry incremental borrowing rate based on the
information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable.
The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The lease terms may include options
to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is
recognized on a straight-line basis over the lease term. ASU 2016-02 requires that public companies use a secured
incremental browning rate for the present value of lease payments when the rate implicit in the contract is not readily determinable.
We determine a secured rate on a quarterly basis and update the weighted average discount rate accordingly. Software Development Costs We apply ASC 985-20, Software—Costs of Software
to Be Sold, Leased, or Marketed, in analyzing our software development costs. ASC 985-20 requires the capitalization of certain software
development costs subsequent to the establishment of technological feasibility for a software product in development. Research and development
costs associated with establishing technological feasibility are expensed as incurred. Based on our software development process, technological
feasibility is established upon the completion of a working model. In addition, we apply this to our review of development projects related
to software used exclusively for our SaaS subscription offerings. In these reviews, all costs incurred during the preliminary project
stages are expensed as incurred. Once the projects have been committed to and it is probable that the projects will meet functional requirements,
costs are capitalized. Income Tax Income taxes are determined in accordance with the
provisions of ASC Topic 740, “Income Taxes” (“ASC Topic 740”). Under this method, deferred tax assets and liabilities
are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing
assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates
expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. Any effect
on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. ASC 740 prescribes a comprehensive model for how companies
should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on
a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the
position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as
the largest amount of tax benefit that has a greater than 50% The Company has subsidiaries in Singapore and PRC.
The Company is subject to tax in Singapore and PRC jurisdictions. As a result of its future business activities, the Company will be required
to file tax returns that are subject to examination by the Inland Revenue Authority of Singapore and Tax Department of PRC. Loss Per Share Basic net income per share of common stock attributable
to common stockholders is calculated by dividing net income attributable to common stockholders by the weighted-average shares of common
stock outstanding for the period. Potentially dilutive shares, which are based on the weighted-average shares of common stock underlying
outstanding stock-based awards, warrants, options, or convertible debt using the treasury stock method or the if-converted method, as
applicable, are included when calculating diluted net income (loss) per share of common stock attributable to common stockholders when
their effect is dilutive. Potential dilutive securities are excluded from the
calculation of diluted EPS in profit periods as their effect would be anti-dilutive. As of September 30, 2023, there were no potentially
dilutive shares.
Schedule of potentially diluted shares
For
the For
the
Statement of Operations Summary Information:
Net Loss $ (14,286,268 ) $ (6,800,305 )
Weighted-average common shares
outstanding - basic and diluted 114,844,076 233,072,453
Net loss per share, basic and diluted $ (0.12 ) $ (0.03 ) Fair Value Measurements The Company follows guidance for accounting for fair
value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized
or disclosed at fair value in the financial statements on a recurring basis. Additionally, the Company adopted guidance for fair value
measurement related to non-financial items that are recognized and disclosed at fair value in the financial statements on a non-recurring
basis. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted
quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving
significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1 inputs are quoted prices (unadjusted) in active
markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices
included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset
or liability. The carrying amounts of financial assets such as cash approximate their fair values because of the short maturity of these
instruments. |
