Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Apr. 01, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q/A | |
Amendment Flag | true | |
Amendment Description | WeTrade Group Inc. (the "Company") is filing this Amendment (the "Amendment") to the Quarterly Report on Form 10-Q for the nine months ended September 30, 2023, originally filed with the Securities and Exchange Commission on November 20, 2023 (the "Original Filing"), to amend our consolidated financial statements. In the course of its financial statements closing process subsequent to the period ended December 31, 2023, the management of the Company determined to update certain amounts and information in the notes to the financial statement, particularly Note 11 regarding the Company’s information and amounts related to the discontinued operation. In accordance with applicable SEC rules, this Amendment includes new certifications required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002, as amended, from our Chief Executive Officer and Chief Financial Officer. No other changes have been made to the Original Filing. Other than as expressly set forth herein, this Amendment does not, and does not purport to, amend, update, or restate the information in any item of the Original Filing or reflect any events that have occurred after the Original Filing was filed. | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-41450 | |
Entity Registrant Name | WETRADE GROUP INC | |
Entity Central Index Key | 0001784970 | |
Entity Tax Identification Number | 00-0000000 | |
Entity Incorporation, State or Country Code | WY | |
Entity Address, Address Line One | Room 519, 05/F Block T3 | |
Entity Address, Address Line Two | Qianhai Premier Finance Centre Unit 2 | |
Entity Address, Address Line Three | Guiwan Area | |
Entity Address, City or Town | Nanshan District | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 100020 | |
City Area Code | 852 | |
Local Phone Number | 52208810 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 2,625,130 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 1,416,885 | $ 24,232 |
Digital assets | 21,930,658 | |
Accounts receivable- non related parties, net | 129,764 | |
Other receivables-related parties | 5,805,500 | 5,805,500 |
Prepayments | 12,125,500 | 50,000 |
Assets related to discontinued operation | 40,349,508 | |
Total current assets | 41,408,307 | 46,229,240 |
Total assets | 41,408,307 | 46,229,240 |
Current liabilities: | ||
Account payables | 123,273 | |
Accrued expenses | 270,864 | |
Amount due to related parties | 1,673,683 | 1,303,296 |
Other payables | 50,517 | 50,000 |
Liabilities related to discontinued operation | 3,168,435 | |
Total current liabilities | 2,118,337 | 4,521,731 |
Total liabilities | 2,118,337 | 4,521,731 |
Stockholders’ equity: | ||
Common stock; no par value; 2,625,130 and 195,057,503 issued and outstanding at September 30, 2023 and December 31, 2022 respectively | ||
Additional paid in capital | 56,348,650 | 43,732,196 |
Accumulated other comprehensive loss | (175) | (310,577) |
Accumulated deficits | (17,058,505) | (1,714,110) |
Total stockholders’ equity | 39,289,970 | 41,707,509 |
Total liabilities and stockholders’ equity | $ 41,408,307 | $ 46,229,240 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock; par value (in Dollars per share) | $ 0 | $ 0 |
Common stock, shares issued | 2,625,130 | 195,057,503 |
Common stock, shares outstanding | 2,625,130 | 195,057,503 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Revenue: | |||||
Service revenue | $ 1,633,836 | $ 1,633,836 | |||
Total service revenue | 1,633,836 | 1,633,836 | |||
Cost of revenue | (398,537) | (398,537) | |||
Gross Profit | 1,235,299 | 1,235,299 | |||
Operating expenses | |||||
Impairment of digital assets | (3,059,342) | (3,059,342) | |||
General and administrative expense | (1,526,531) | (6,315,959) | (1,526,531) | (6,800,305) | |
Total operating expenses | (4,585,873) | (6,315,959) | (4,585,873) | (6,800,305) | |
Loss from operations | (3,350,574) | (6,315,959) | (3,350,574) | (6,800,305) | |
Other (expenses)/ income | (10,935,694) | 21,958 | (10,935,694) | ||
Loss before income taxes | (14,286,268) | (6,294,001) | (14,286,268) | (6,800,305) | |
Income tax expenses | |||||
Net loss from continuing operation | (14,286,268) | (6,294,001) | (14,286,268) | (6,800,305) | |
Discontinued Operations: | |||||
Loss from discontinued operation | 70,477 | (2,363,091) | (1,124,676) | (1,738,568) | |
Gain from discontinued operation | 115,630 | 66,549 | |||
Comprehensive income | |||||
Net loss | (14,100,161) | (8,657,092) | (15,344,395) | (8,538,873) | |
Other comprehensive income | |||||
Foreign currency translation adjustment | (175) | (175) | |||
Total comprehensive loss | $ (14,100,336) | $ (8,657,092) | $ (15,344,570) | $ (8,538,873) | |
Loss per share, basic | $ (0.29) | $ (0.04) | $ (0.13) | $ (0.03) | |
Loss per share, diluted | $ (0.29) | $ (0.04) | $ (0.13) | $ (0.03) | |
Weighted-average shares outstanding, basic | [1] | 48,205,725 | 192,768,916 | 114,844,076 | 233,072,453 |
Weighted-average shares outstanding, diluted | [1] | 48,205,725 | 192,768,916 | 114,844,076 | 233,072,453 |
[1]Share and per share amounts have been retroactively adjusted to reflect the decreased number of shares resulting from a reverse stock split and issuance of new shares. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Beginning balance, value at Dec. 31, 2021 | $ 6,197,520 | $ 7,433,305 | $ 898,497 | $ 14,529,322 | |
Beginning balance, shares at Dec. 31, 2021 | 305,451,498 | ||||
Share cancellation | |||||
Share cancellation (in Shares) | (120,418,995) | ||||
Stock issued during the period | 37,057,176 | 37,057,176 | |||
Stock issued during the period, shares | 10,000,000 | ||||
Stock compensation | 477,500 | 477,500 | |||
Stock compensation, shares | 25,000 | ||||
Foreign currency translation adjustment | (1,475,143) | (1,475,143) | |||
Disposition of discontinued operations | (1,738,568) | (1,738,568) | |||
Net loss for the period | (6,800,306) | (6,800,306) | |||
Ending balance, value at Sep. 30, 2022 | 43,732,196 | (1,105,569) | (576,646) | 42,049,981 | |
Ending balance, shares at Sep. 30, 2022 | 195,057,503 | ||||
Beginning balance, value at Jun. 30, 2022 | 6,197,520 | 7,551,523 | 187,388 | 13,936,431 | |
Beginning balance, shares at Jun. 30, 2022 | 185,032,503 | ||||
Stock issued during the period | 37,057,176 | 37,057,176 | |||
Stock issued during the period, shares | 10,000,000 | ||||
Stock compensation | 477,500 | 477,500 | |||
Stock compensation, shares | 25,000 | ||||
Foreign currency translation adjustment | (764,034) | (764,034) | |||
Disposition of discontinued operations | (2,363,091) | (4,703,664) | |||
Net loss for the period | (6,294,001) | (3,953,428) | |||
Ending balance, value at Sep. 30, 2022 | 43,732,196 | (1,105,569) | (576,646) | 42,049,981 | |
Ending balance, shares at Sep. 30, 2022 | 195,057,503 | ||||
Beginning balance, value at Dec. 31, 2022 | 43,732,196 | (1,714,110) | (310,577) | 41,707,509 | |
Beginning balance, shares at Dec. 31, 2022 | 195,057,503 | ||||
Reverse shares split | |||||
Reverse shares split (in Shares) | (194,002,973) | ||||
Stock issued during the period | 12,616,454 | 12,616,454 | |||
Stock issued during the period, shares | 1,570,600 | ||||
Foreign currency translation adjustment | 310,402 | 310,402 | |||
Disposition of discontinued operations | (1,124,676) | (1,124,676) | |||
Net gain from discontinued operation | 66,549 | 66,549 | |||
Net loss for the period | (14,286,268) | (14,286,268) | |||
Ending balance, value at Sep. 30, 2023 | 56,348,650 | (17,058,505) | (175) | 39,289,970 | |
Ending balance, shares at Sep. 30, 2023 | 2,625,130 | ||||
Beginning balance, value at Jun. 30, 2023 | 43,732,196 | (2,958,344) | (935,527) | 39,838,325 | |
Beginning balance, shares at Jun. 30, 2023 | 1,054,530 | ||||
Stock issued during the period | 12,616,454 | 12,616,454 | |||
Stock issued during the period, shares | 1,570,600 | ||||
Foreign currency translation adjustment | 935,352 | 935,352 | |||
Net gain from discontinued operation | 186,107 | 186,107 | |||
Net loss for the period | (14,286,268) | (14,286,268) | |||
Ending balance, value at Sep. 30, 2023 | $ 56,348,650 | $ (17,058,505) | $ (175) | $ 39,289,970 | |
Ending balance, shares at Sep. 30, 2023 | 2,625,130 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (14,286,268) | $ (6,800,305) |
Gain from discontinued operation | 66,549 | |
Loss from disposal operation | (1,124,676) | (1,738,568) |
Digital assets impairment loss | 3,059,342 | |
Changes in operating assets and liabilities: | ||
Accounts receivables | (129,766) | |
Prepaid expenses | (12,075,500) | (50,000) |
Account payables | 123,273 | |
Accrued expenses | 270,864 | |
Tax payables | 517 | |
Assets related to discontinued operations | 32,979,652 | (31,203,493) |
Liabilities related to discontinued operations | (1,008,856) | |
Net cash flows provided by/ (used in) operating activities | 8,883,987 | (40,801,222) |
Cash flow from investing activities: | ||
Digital assets | (24,990,000) | |
Property, plant and equipments | 395,353 | |
Amortised expenses | 37,766 | |
Net cash (used in)/ provided by investing activities | (24,990,000) | 433,119 |
Cash flow from financing activities: | ||
Proceed from issuance of common stock | 12,616,454 | 37,534,676 |
Note receivables | 3,844,030 | |
Proceed from disposal of subsidiaries | 4,500,000 | |
Shareholders loan | 382,387 | (111,765) |
Net cash flows provided by financing activities | 17,498,841 | 41,266,941 |
Effect of exchange rate changes on cash | (175) | (1,475,144) |
Change in cash and cash equivalents: | 1,392,653 | (576,306) |
Cash and cash equivalents, beginning of period | 24,232 | 616,593 |
Cash and cash equivalents, end of period | 1,416,885 | 40,287 |
Supplemental cash flow information: | ||
Cash paid for interest | ||
Cash paid for taxes |
NATURE OF BUSINESS
NATURE OF BUSINESS | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF BUSINESS | NOTE 1 NATURE OF BUSINESS Business WeTrade Group, Inc was incorporated in the State of Wyoming on March 28, 2019. We currently pursue two corporate strategies. One business strategy is to continue providing software development services, and the other strategy is to acquire and hold bitcoin. Software development We provide AI-enabled software development services to our customers, which included developing, designing, and implementing various SAAS software solutions for businesses of all types, including industrial and other businesses. Bitcoin Acquisition Strategy Our bitcoin acquisition strategy generally involves acquiring bitcoin with our liquid assets that exceed working capital requirements, and from time to time, subject to market conditions, issuing debt or equity securities or engaging in other capital raising transactions with the objective of using the proceeds to purchase bitcoin. We view our bitcoin holdings as long-term holdings and expect to continue to accumulate bitcoin. We have not set any specific target for the amount of bitcoin we seek to hold, and we will continue to monitor market conditions in determining whether to engage in additional financings to purchase additional bitcoin. This overall strategy also contemplates that we may (i) periodically sell bitcoin for general corporate purposes, including to generate cash for treasury management or in connection with strategies that generate tax benefits in accordance with applicable law, (ii) enter into additional capital raising transactions that are collateralized by our bitcoin holdings, and (iii) consider pursuing additional strategies to create income streams or otherwise generate funds using our bitcoin holdings. We believe that, due to its limited supply, bitcoin offers the opportunity for appreciation in value if its adoption increases and has the potential to serve as a hedge against inflation in the long-term. The following table presents a roll-forward of our bitcoin holdings, including additional information related to our bitcoin purchases, and digital asset impairment losses during the period: Schedule of digital asset impairment losses Digital asset original cost basis Digital asset impairment losses Digital asset carrying amount Approximate number of Bitcoin held Balance at December 31, 2022 - - - - Digital asset purchase 24,990,000 - 24,990,000 833 Digital asset impairment loss - (3,059,342) - - Balance at September 30, 2023 24,990,000 (3,059,342) 21,930,658 833 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
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. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 3 – RECENT ACCOUNTING PRONOUNCEMENTS Recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force) and the United States Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future financial statements. |
REVENUE
REVENUE | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | NOTE 4 – REVENUE We are in the business of providing AI-enabled software development services for industrial and other customers. As of and for the period ended September 30, 2023, we generated revenues from customers amounting $ 1,633,836 as follow: Schedule of revenue September 30, September 30, AI Software development and industrial SAAS business $ 1,633,836 $ — $ 1,633,836 $ — |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 9 Months Ended |
Sep. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
CASH AND CASH EQUIVALENTS | NOTE 5 – CASH AND CASH EQUIVALENTS As of September 30, 2023, the Company held cash in bank in the amount of $ 1,416,885 Schedule of held cash in bank in the amount September 30, December 31, Bank Deposits-USA $ — $ 24,232 Bank Deposits- Outside USA 1,416,885 — $ 1,416,885 $ 24,232 |
DIGITAL ASSETS
DIGITAL ASSETS | 9 Months Ended |
Sep. 30, 2023 | |
Digital Assets | |
DIGITAL ASSETS | NOTE 6 – DIGITAL ASSETS As of September 30, 2023, digital assets holdings are as follow: Schedule of digital assets holdings September 30, December 31, Opening balance $ — $ — Purchase of BTC 24,990,000 — Impairment losses of digital assets (3,059,342 ) — Ending balance $ 21,930,658 $ — As of September 30, 2023, the Company has purchase approximately 833 21,930,658 3,059,342 Digital assets are available for sales and there is no term of maturity, it will be held for less than one year and can be sold at any time. |
ACCOUNT RECEIVABLES
ACCOUNT RECEIVABLES | 9 Months Ended |
Sep. 30, 2023 | |
Credit Loss [Abstract] | |
ACCOUNT RECEIVABLES | NOTE 7 – ACCOUNT RECEIVABLES As of September 30, 2023, accounts receivable are related to the services fee receivables from customers as follow: Schedule of account receivable September 30, December 31, Accounts Receivables $ 129,764 $ — The Company does not require collateral for accounts receivable. The Company maintains an allowance for its doubtful accounts receivable due to estimated credit losses. The Company records the allowance against bad debt expense through the condensed consolidated statements of operations, included in general and administrative expense, up to the amount of revenues recognized to date. Receivables are written off and charged against the recorded allowance when the Company has exhausted collection efforts without success. |
PREPAYMENTS
PREPAYMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Disclosure Prepayments Abstract | |
PREPAYMENTS | NOTE 8 – PREPAYMENTS As of September 30, 2023, prepayments consist of the following: Schedule of prepayments September 30, December 31, Digital assets $ 12,125,500 $ — Others — 50,000 $ 12,125,500 $ 50,000 As of September 30, 2023, there are prepayment of approximately $ 12,125,500 for the 40% prepayment of 1000 BTC, which is expected to be delivered by May 2024 with the lock up price of $30,000 per BTC. |
AMOUNT DUE TO RELATED PARTIES
AMOUNT DUE TO RELATED PARTIES | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
AMOUNT DUE TO RELATED PARTIES | NOTE 9 – AMOUNT DUE TO RELATED PARTIES Schedule of due to related parties September 30, December 31, Related parties payable $ 365,877 $ 377,464 Amount due to shareholders 411,806 155,832 Director fee payable 896,000 770,000 $ 1,673,683 $ 1,303,296 The related party balance of $ 365,877 represented advances from former shareholders for Company’s daily operation. As of September 30, 2023, the amount due to shareholders of $ 411,806 represented advances and professional expenses paid on behalf by Shareholders, which consist of audit fees, lawyers’ fee and other professional expenses. As of September 30, 2023, the director fee payable of $ 896,000 represented the accrual of director fees from the appointment date to September 30, 2023. The amount due to related parties are interest free, no collateral and have no fixed of repayment period. |
ACCRUED EXPENSES
ACCRUED EXPENSES | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | NOTE 10 – ACCRUED EXPENSES As of September 30, 2023, accrued expenses consists of outsourcing expenses of software developments as follow: Schedule of accrued expenses September 30, December 31, Software development fee for outsource staffs $ 270,864 $ — |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 9 Months Ended |
Sep. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | NOTE 11 – DISCONTINUED OPERATIONS On September 29, 2023, the Company’s Board of Directors passed a resolution to dissolve the operation of WeTrade Information System Limited and its wholly owned subsidiaries, resulting in a loss from discontinued operation of $ 1,124,675 Schedule of discontinued operations Nine Months Nine Months Revenue: Service revenue $ 596,162 $ 9,197,681 Cost of revenue (993,127 ) (7,670,837 ) Gross (loss)/profit (396,965 ) 1,526,844 Operating expenses: General and Administrative 11,998,680 3,619,568 Operations Loss (12,395,645 ) (2,092,724 ) Other revenue 11,302,830 308,360 Loss from discontinued operations before income tax (1,092,815 ) (1,784,364 ) Income tax (expense)/income (31,860 ) 45,795 Loss from discontinued operation after tax (1,124,675 ) (1,738,569 ) Loss from discontinued operation $ (1,124,675 ) $ (1,738,569 ) The major components of assets and liabilities related to discontinued operations are summarized below: Schedule of assets and liabilities related to discontinued operations September 30, December 31, ASSETS Current assets: Cash and cash equivalents $ 938 $ 20,001,263 Accounts receivables — 7,377,801 Loan receivables 7,246,164 1,614,840 Prepayments 3,394,583 9,219,947 Property and equipment, net 736,995 1,821,429 Intangible asset 18,365 23,188 Other receivables 708,702 291,040 Total assets related to discontinued operations 12,105,747 40,349,508 Account payables $ 212,173 $ 425,053 Other payables 7,460,121 2,743,382 Total liabilities related to discontinued operations $ 7,672,294 $ 3,168,435 |
SHAREHOLDERS_ EQUITY
SHAREHOLDERS’ EQUITY | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
SHAREHOLDERS’ EQUITY | NOTE 12 – SHAREHOLDERS’ EQUITY The Company has an unlimited number of ordinary shares authorized, and has issued 2,625,130 On March 29, 2019, the Company has issued 100,000,000 74,000 3 100,074,000 In February 2020, there are 1,666,666 3 2 26,000 3 2 101,766,666 On September 15, 2020, the Wyoming Secretary of State approved the Company’s certificate of amendment to amend its Articles of Incorporation to effect 3 for 1 forward stock split 101,766,666 305,299,998 On September 21, 2020, there are 151,500 5 303 On April 13, 2022, the Company and 15 shareholders entered into that certain Share Exchange Agreement (the “Share Exchange Agreement”), pursuant to which Company and the 15 Shareholders have cancelled 120,418,995 305,451,498 185,032,503 On July 21, 2022, the Company completed uplisting of its common stock to the Nasdaq Capital Market, and the closing of its public offering of 10,000,000 40,000,000 37,057,176 2,942,824 4.00 195,032,503 On July 22, 2022, the Company issued 25,000 477,500 195,057,503 On June 9, 2023, the Wyoming Secretary of State approved the Company’s certificate of amendment to amend its Articles of Incorporation to effect 1 for 185 195,057,503 1,054,530 0 In September, 2023, there are 1,570,600 12,616,454 2,625,130 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 13 – INCOME TAXES The Company is subject to U.S. Federal tax laws. The Company has not recognized an income tax benefit for its operating losses in the United States because the Company does not expect to commence active operations in the United States. UTour Pte Ltd (“UTour”) was incorporated in Singapore and is subject to Singapore profits tax at a tax rate of 17% There are several subsidiaries were incorporated in Hong Kong and are subject to Hong Kong profits tax at a tax rate of 16.5%. The Company is currently conducting its certain operations in the PRC through its subsidiaries, which are subject to tax from 15% to 25% |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 14- SUBSEQUENT EVENTS Change of Company name On January 31, 2024 The Company has been filled with the Securities and Exchange Commission, pursuant to Section 14C of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), for the name change of the Company, from “WeTrade Group Inc.” to “Next Technology Holding Inc”; and be it further, changes its Nasdaq Trading Symbol from “WETG” to “NXTT”; and be it further, authorized that the first article of the Company’s Articles of Incorporation is revised to read as follows: “Next Technology Holding Inc.”, which expect will be effective in end March 2024. Other Events On November 7, 2023, the Chancery Court issued a temporary restraining order primarily restraining the plaintiff-shareholders and their affiliates (including former director-Zheng Dai, Pijun Liu, and Lina Jiang) from claiming to act on behalf of the Company. On November 30, 2023, the Company responded to plaintiffs’ arguments that they controlled WeTrade, pointing out that plaintiffs’ case was largely built upon forged signatures and other fabricated materials. In response, the plaintiffs withdrew their opposition to the Company’s request for an injunction. On January 5, 2024, the Chancery Court entered a preliminary injunction order (attached hereto). Specifically, the order restrained plaintiff-shareholders and their affiliates from the following conduct: (i) acting as or holding themselves out as majority shareholders, directors, executives, or employees of the Company and its affiliates; (ii) making any attempts to contact the SEC, Nasdaq, government authorities, or make any filing or press release on behalf of the Company; (iii) making any attempts to change the board composition and executive team; (iv) disseminating false statements regarding the Company and its leadership; (v) making any attempts to contact the Company’s service providers, including auditors, stock transfer agents, and filing agents; (vi) making any attempts to issue the Company’s shares. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Preparation of Financial Statements | 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 | Revenue recognition The Company follows the guidance of Accounting Standards Codification (ASC) 606, Revenue from Contracts |
Digital Assets | 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 | 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 | 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 | 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 | 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 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 | 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 | 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 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 | 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 | 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. |
NATURE OF BUSINESS (Tables)
NATURE OF BUSINESS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of digital asset impairment losses | Schedule of digital asset impairment losses Digital asset original cost basis Digital asset impairment losses Digital asset carrying amount Approximate number of Bitcoin held Balance at December 31, 2022 - - - - Digital asset purchase 24,990,000 - 24,990,000 833 Digital asset impairment loss - (3,059,342) - - Balance at September 30, 2023 24,990,000 (3,059,342) 21,930,658 833 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of digital asset holdings | 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 $ — |
Schedule of exchange rate | Schedule of exchange rate September 30, December 31, RMB: US$ exchange rate 7.27 6.9 |
Schedule of potentially diluted 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 ) |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of revenue | Schedule of revenue September 30, September 30, AI Software development and industrial SAAS business $ 1,633,836 $ — $ 1,633,836 $ — |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of held cash in bank in the amount | Schedule of held cash in bank in the amount September 30, December 31, Bank Deposits-USA $ — $ 24,232 Bank Deposits- Outside USA 1,416,885 — $ 1,416,885 $ 24,232 |
DIGITAL ASSETS (Tables)
DIGITAL ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Digital Assets | |
Schedule of digital assets holdings | Schedule of digital assets holdings September 30, December 31, Opening balance $ — $ — Purchase of BTC 24,990,000 — Impairment losses of digital assets (3,059,342 ) — Ending balance $ 21,930,658 $ — |
ACCOUNT RECEIVABLES (Tables)
ACCOUNT RECEIVABLES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Credit Loss [Abstract] | |
Schedule of account receivable | Schedule of account receivable September 30, December 31, Accounts Receivables $ 129,764 $ — |
PREPAYMENTS (Tables)
PREPAYMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Disclosure Prepayments Abstract | |
Schedule of prepayments | Schedule of prepayments September 30, December 31, Digital assets $ 12,125,500 $ — Others — 50,000 $ 12,125,500 $ 50,000 |
AMOUNT DUE TO RELATED PARTIES (
AMOUNT DUE TO RELATED PARTIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of due to related parties | Schedule of due to related parties September 30, December 31, Related parties payable $ 365,877 $ 377,464 Amount due to shareholders 411,806 155,832 Director fee payable 896,000 770,000 $ 1,673,683 $ 1,303,296 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses | Schedule of accrued expenses September 30, December 31, Software development fee for outsource staffs $ 270,864 $ — |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of discontinued operations | Schedule of discontinued operations Nine Months Nine Months Revenue: Service revenue $ 596,162 $ 9,197,681 Cost of revenue (993,127 ) (7,670,837 ) Gross (loss)/profit (396,965 ) 1,526,844 Operating expenses: General and Administrative 11,998,680 3,619,568 Operations Loss (12,395,645 ) (2,092,724 ) Other revenue 11,302,830 308,360 Loss from discontinued operations before income tax (1,092,815 ) (1,784,364 ) Income tax (expense)/income (31,860 ) 45,795 Loss from discontinued operation after tax (1,124,675 ) (1,738,569 ) Loss from discontinued operation $ (1,124,675 ) $ (1,738,569 ) |
Schedule of assets and liabilities related to discontinued operations | Schedule of assets and liabilities related to discontinued operations September 30, December 31, ASSETS Current assets: Cash and cash equivalents $ 938 $ 20,001,263 Accounts receivables — 7,377,801 Loan receivables 7,246,164 1,614,840 Prepayments 3,394,583 9,219,947 Property and equipment, net 736,995 1,821,429 Intangible asset 18,365 23,188 Other receivables 708,702 291,040 Total assets related to discontinued operations 12,105,747 40,349,508 Account payables $ 212,173 $ 425,053 Other payables 7,460,121 2,743,382 Total liabilities related to discontinued operations $ 7,672,294 $ 3,168,435 |
NATURE OF BUSINESS (Details)
NATURE OF BUSINESS (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 USD ($) Integer | Dec. 31, 2022 USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Digital asset original cost basis at beginning | ||
Digital assets carrying amount at beginning | ||
Digital asset purchase | 24,990,000 | |
Digital asset purchase for carrying amount | $ 24,990,000 | |
Approximate number of Bitcoin held | Integer | 833 | |
Digital asset impairment loss | $ (3,059,342) | |
Digital asset original cost basis at end | 24,990,000 | |
Digital assets carrying amount at end | $ 21,930,658 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 USD ($) Integer | Dec. 31, 2022 USD ($) Integer | Dec. 31, 2021 USD ($) | |
Accounting Policies [Abstract] | |||
Approximate number of bitcoins held | Integer | 833 | ||
Digital assets carrying value | $ 21,930,658 | ||
Cumulative asset impairment losses | $ 3,059,342 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - ¥ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
RMB: US$ exchange rate | ¥ 7.27 | ¥ 6.9 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Accounting Policies [Abstract] | |||||
Net Loss | $ (14,286,268) | $ (6,294,001) | $ (14,286,268) | $ (6,800,305) | |
Weighted-average common shares outstanding - basic | [1] | 48,205,725 | 192,768,916 | 114,844,076 | 233,072,453 |
Weighted-average common shares outstanding - diluted | [1] | 48,205,725 | 192,768,916 | 114,844,076 | 233,072,453 |
Net loss per share, basic | $ (0.12) | $ (0.03) | |||
Net loss per share, diluted | $ (0.12) | $ (0.03) | |||
[1]Share and per share amounts have been retroactively adjusted to reflect the decreased number of shares resulting from a reverse stock split and issuance of new shares. |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2023 USD ($) Integer $ / shares | Sep. 30, 2023 USD ($) Integer $ / shares ¥ / shares | Dec. 31, 2022 USD ($) Integer ¥ / shares | Sep. 30, 2023 ¥ / shares | Dec. 31, 2022 ¥ / shares | Dec. 31, 2021 USD ($) | |
Property, Plant and Equipment [Line Items] | ||||||
Approximate number of bitcoins held | Integer | 833 | 833 | ||||
Digital assets carrying value | $ | $ 21,930,658 | $ 21,930,658 | ||||
Exception of equity | ¥ / shares | ¥ 7.27 | ¥ 6.9 | ||||
Operations and comprehensive income | ¥ / shares | $ 7.05 | $ 6.75 | ||||
Percentage of tax benefit | 50% | 50% | ||||
Maximum [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Exception of equity | $ / shares | $ 1 | $ 1 | ||||
Operations and comprehensive income | $ / shares | $ 1 |
REVENUE (Details)
REVENUE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from customers | $ 1,633,836 | $ 1,633,836 | ||
A I Software Development And Industrial S A A S Business [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from customers | $ 1,633,836 |
REVENUE (Details Narrative)
REVENUE (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | ||||
Revenues (in Dollars) | $ 1,633,836 | $ 1,633,836 |
CASH AND CASH EQUIVALENTS (Deta
CASH AND CASH EQUIVALENTS (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Bank Deposits | $ 1,416,885 | $ 24,232 |
Bank Deposits-USA [Member] | ||
Bank Deposits | 24,232 | |
Bank Deposits- Outside USA [Member] | ||
Bank Deposits | $ 1,416,885 |
CASH AND CASH EQUIVALENTS (De_2
CASH AND CASH EQUIVALENTS (Details Narrative) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Cash and Cash Equivalents [Abstract] | ||
Cash in bank | $ 1,416,885 | $ 24,232 |
DIGITAL ASSETS (Details)
DIGITAL ASSETS (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Digital Assets | ||
Digital assets carrying amount at beginning | ||
Digital asset purchase | 24,990,000 | |
Digital asset impairment loss | (3,059,342) | |
Digital assets carrying amount at end | $ 21,930,658 |
DIGITAL ASSETS (Details Narrati
DIGITAL ASSETS (Details Narrative) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 USD ($) Integer | Dec. 31, 2022 USD ($) Integer | Dec. 31, 2021 USD ($) | |
Digital Assets | |||
Approximate number of bitcoins held | Integer | 833 | ||
Digital assets carrying value | $ 21,930,658 | ||
Cumulative asset impairment losses | $ 3,059,342 |
ACCOUNT RECEIVABLES, NET (Detai
ACCOUNT RECEIVABLES, NET (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Credit Loss [Abstract] | ||
Account Receivable- Non related parties | $ 129,764 |
PREPAYMENTS (Details)
PREPAYMENTS (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Indefinite-Lived Intangible Assets [Line Items] | ||
Prepayments | $ 12,125,500 | $ 50,000 |
Digital Assets [Member] | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Prepayments | 12,125,500 | |
Others [Member] | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Prepayments | $ 50,000 |
PREPAYMENTS (Details Narrative)
PREPAYMENTS (Details Narrative) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Indefinite-Lived Intangible Assets [Line Items] | ||
Prepayments | $ 12,125,500 | $ 50,000 |
Digital Assets [Member] | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Prepayments | $ 12,125,500 |
AMOUNT DUE TO RELATED PARTIES_2
AMOUNT DUE TO RELATED PARTIES (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Related Party Transactions [Abstract] | ||
Related parties payable | $ 365,877 | $ 377,464 |
Amount due to shareholders | 411,806 | 155,832 |
Director fee payable | 896,000 | 770,000 |
Amount due to related parties | $ 1,673,683 | $ 1,303,296 |
AMOUNT DUE TO RELATED PARTIES_3
AMOUNT DUE TO RELATED PARTIES (Details Narrative) | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Related Party Transactions [Abstract] | |
Advances from shareholders | $ 365,877 |
Professional expenses | 411,806 |
Director fees | $ 896,000 |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Accrued Payroll [Member] | ||
Line of Credit Facility [Line Items] | ||
Software development fee for outsource staffs | $ 270,864 |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Operating expenses: | |||||
Operations Loss | $ (3,350,574) | $ (6,315,959) | $ (3,350,574) | $ (6,800,305) | |
Loss from discontinued operation after tax | 66,549 | ||||
Loss from discontinued operation | 1,124,676 | 1,738,568 | |||
Discontinued Operations [Member] | |||||
Revenue: | |||||
Service revenue | 596,162 | 9,197,681 | |||
Cost of revenue | (993,127) | (7,670,837) | |||
Gross (loss)/profit | (396,965) | 1,526,844 | |||
Operating expenses: | |||||
General and Administrative | 11,998,680 | 3,619,568 | |||
Operations Loss | (12,395,645) | (2,092,724) | |||
Other revenue | 11,302,830 | 308,360 | |||
Loss from discontinued operations before income tax | (1,092,815) | (1,784,364) | |||
Income tax (expense)/income | (31,860) | 45,795 | |||
Loss from discontinued operation after tax | (1,124,675) | (1,738,569) | |||
Loss from discontinued operation | $ 1,124,675 | $ (1,124,675) | $ (1,738,569) |
DISCONTINUED OPERATIONS (Deta_2
DISCONTINUED OPERATIONS (Details 1) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
ASSETS | $ 41,408,307 | $ 46,229,240 |
Current assets: | ||
Cash and cash equivalents | 1,416,885 | 24,232 |
Prepayments | 12,125,500 | 50,000 |
Account payables | 123,273 | |
Other payables | 50,517 | 50,000 |
Discontinued Operations [Member] | ||
Current assets: | ||
Cash and cash equivalents | 938 | 20,001,263 |
Accounts receivables | 7,377,801 | |
Loan receivables | 7,246,164 | 1,614,840 |
Prepayments | 3,394,583 | 9,219,947 |
Property and equipment, net | 736,995 | 1,821,429 |
Intangible asset | 18,365 | 23,188 |
Other receivables | 708,702 | 291,040 |
Total assets related to discontinued operations | 12,105,747 | 40,349,508 |
Account payables | 212,173 | 425,053 |
Other payables | 7,460,121 | 2,743,382 |
Total liabilities related to discontinued operations | $ 7,672,294 | $ 3,168,435 |
DISCONTINUED OPERATIONS (Deta_3
DISCONTINUED OPERATIONS (Details Narrative) - USD ($) | 1 Months Ended | 9 Months Ended | |
Sep. 29, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | |
Loss from discontinued operation | $ 1,124,676 | $ 1,738,568 | |
Discontinued Operations [Member] | |||
Loss from discontinued operation | $ 1,124,675 | $ (1,124,675) | $ (1,738,569) |
SHAREHOLDERS_ EQUITY (Details N
SHAREHOLDERS’ EQUITY (Details Narrative) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||
Jun. 09, 2023 $ / shares shares | Apr. 13, 2022 shares | Jul. 10, 2020 Integer $ / shares shares | Jul. 22, 2022 USD ($) shares | Sep. 21, 2020 Integer $ / shares shares | Sep. 15, 2020 shares | Feb. 29, 2020 Integer $ / shares shares | Sep. 30, 2023 shares | Sep. 30, 2022 shares | Sep. 30, 2023 USD ($) shares | Sep. 30, 2022 shares | Dec. 31, 2022 shares | Jul. 21, 2022 USD ($) $ / shares shares | Jun. 30, 2022 shares | Dec. 31, 2019 shares | Sep. 03, 2019 $ / shares shares | Mar. 29, 2019 shares | |
Subsidiary or Equity Method Investee [Line Items] | |||||||||||||||||
Common stock shares issued | 2,625,130 | 2,625,130 | 195,057,503 | ||||||||||||||
Total shares | 74,000 | ||||||||||||||||
Per share (in Dollars per share) | $ / shares | $ 3 | ||||||||||||||||
Common stock, shares outstanding | 2,625,130 | 2,625,130 | 195,057,503 | ||||||||||||||
New shareholders | Integer | 2 | 2 | |||||||||||||||
Shares outstanding | 101,766,666 | ||||||||||||||||
Fair value (in Dollars) | $ | $ 477,500 | $ 12,616,454 | |||||||||||||||
Stockholders' Equity, Reverse Stock Split | 1 for 185 | ||||||||||||||||
Common Stock, No Par Value | $ / shares | $ 0 | ||||||||||||||||
Shares issued | 1,570,600 | 1,570,600 | |||||||||||||||
Common Stock [Member] | |||||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||||||||
Common stock, shares outstanding | 195,057,503 | ||||||||||||||||
Shares issued | 1,570,600 | 10,000,000 | 1,570,600 | 10,000,000 | |||||||||||||
IPO [Member] | |||||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||||||||
Common stock shares issued | 10,000,000 | ||||||||||||||||
Per share (in Dollars per share) | $ / shares | $ 4 | ||||||||||||||||
Gross proceeds (in Dollars) | $ | $ 40,000,000 | ||||||||||||||||
Net proceeds (in Dollars) | $ | 37,057,176 | ||||||||||||||||
Total offering cost (in Dollars) | $ | $ 2,942,824 | ||||||||||||||||
Maximum [Member] | |||||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||||||||
Common Stock Dividends, Shares | 195,057,503 | ||||||||||||||||
Minimum [Member] | |||||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||||||||
Increased common stock shares | 101,766,666 | ||||||||||||||||
Common Stock Dividends, Shares | 1,054,530 | ||||||||||||||||
Certificate Of Amendment [Member] | Maximum [Member] | |||||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||||||||
Stock split | 3 for 1 forward stock split | ||||||||||||||||
Increased common stock shares | 305,299,998 | ||||||||||||||||
Shareholders [Member] | |||||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||||||||
Per share (in Dollars per share) | $ / shares | $ 3 | ||||||||||||||||
Shares issued | 151,500 | 1,666,666 | |||||||||||||||
New shareholders | Integer | 303 | ||||||||||||||||
Per share value (in Dollars per share) | $ / shares | $ 5 | ||||||||||||||||
Share Exchange Agreement [Member] | |||||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||||||||
Common stock, shares outstanding | 100,074,000 | ||||||||||||||||
Cancellation Shares | 120,418,995 | ||||||||||||||||
Share Exchange Agreement [Member] | Maximum [Member] | |||||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||||||||
Common stock, shares outstanding | 305,451,498 | ||||||||||||||||
Share Exchange Agreement [Member] | Minimum [Member] | |||||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||||||||
Common stock, shares outstanding | 195,032,503 | 185,032,503 | |||||||||||||||
Founders [Member] | |||||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||||||||
Per share (in Dollars per share) | $ / shares | $ 3 | ||||||||||||||||
July Ten Twenty Twenty Two [Member] | |||||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||||||||
Common stock shares issued | 26,000 | 25,000 | 100,000,000 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 9 Months Ended |
Sep. 30, 2023 | |
Operating Loss Carryforwards [Line Items] | |
Profits tax rate | 50% |
Minimum [Member] | |
Operating Loss Carryforwards [Line Items] | |
Major operations percentage | 15% |
Maximum [Member] | |
Operating Loss Carryforwards [Line Items] | |
Major operations percentage | 25% |
Singapore Tax Rate Authority [Member] | |
Operating Loss Carryforwards [Line Items] | |
Profits tax rate | 17% |