| 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 three months ended June 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 June 30, 2023, the results of its operations for the three months
ended June 30, 2023 and 2022, and its cash flows for the three months ended June 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. As
of June 30, 2023, the details of the consolidating subsidiaries are as follows:
Place of Attributable equity
Name of Company incorporation interest %
Utour Pte Ltd Singapore 100 %
WeTrade Information Technology Limited (“WITL”) Hong Kong 100 %
Yueshang Information Technology (Beijing) Co., Ltd. (“YITB”) P.R.C. 100 %
WeTrade Digital Technology (Beijing) Co Limited P.R.C 100 %
Yueshang Technology Group (Zhuhai Hengqin) Limited P.R.C 100 %
Tibet Xiaoshang Technology Co Limited (“Tibet Xiaoshang”) P.R.C 100 %
Shanghai Yueshang Information Technology Limited P.R.C 100 % Nature
of Operations WeTrade
Group Inc. (the “Company” or “We’ or “Us”) is a Wyoming corporation incorporated on March 28, 2019.
The Company is an investment holding company that formed as a Wyoming corporation to use as a vehicle for raising equity outside the
US. As
of June 30, 2023, the nature operation of its subsidiaries are as follows:
Name
of Company Place
of incorporation Nature
of operation
Utour Pte Ltd Singapore Investment holding company
WeTrade Information Technology Limited (“WITL”) Hong Kong Investment holding company
Yueshang Information Technology (Beijing) Co., Ltd. (“YITB”) P.R.C. Providing of social e-commerce services, technical system support and services
WeTrade Digital Technology (“Beijing”) Co Limited P.R.C Providing of social e-commerce services, technical system support and services
Yueshang Technology Group (Zhuhai Hengqin) Limited P.R.C Providing of social e-commerce services, technical system support and services
Tibet Xiaoshang Technology Co Limited (“Tibet Xiaoshang”) P.R.C Providing of social e-commerce services, technical system support and services.
Shanghai Yueshang Information Technology Limited P.R.C Providing of social e-commerce services, technical system support and services. Revenue
recognition The
Company follows the guidance of Accounting Standards Codification (ASC) 606, Revenue from Contracts 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 June 30, 2023.
June 30, December 31,
RMB: US$ exchange rate 7.25 6.90 The balance sheet amounts, with the
exception of equity, June 30, 2023 and December 31, 2022 were translated at 7.25 RMB and 6.9 RMB to US$1.00, respectively. The
equity accounts were stated at their historical rates. The average translation rates applied to statements of operations and
comprehensive income accounts for the period ended June 30, 2023 and year ended December 31, 2022 were 6.97 RMB and 6.75 RMB to
US$1.00, respectively. Cash flows were also translated at average translation rates for the year and, therefore, amounts reported on
the statement of cash flows would not necessarily agree with changes in the corresponding balances on the condensed consolidated
balance sheet. The transactions dominated in SGD are immaterial. 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. Property
and Equipment, Net Property
and equipment are stated at the historical cost less accumulated depreciation. Depreciation on property and equipment is provided
using the straight-line method over the estimated useful lives of the assets for both financial and income tax reporting purposes as
follows:
Office equipment 3 years
Leasehold improvements 5 years Upon
sale or disposal of an asset, the historical cost and related accumulated depreciation or amortization of such asset were removed from
their respective accounts and any gain or loss is recorded in the statements of income. The
Company reviews the carrying value of property and equipment for impairment whenever events and circumstances indicate that the
carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition.
In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an
amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment
include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand,
competition and other economic factors. Based on this assessment, no impairment expenses for property and equipment
were recorded in operating expenses during the six months ended June 30, 2023 and 2022. Concentration
of Risk Financial
instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and equivalents and accounts receivable. Cash on hand amounted to $20,004,914 and accounts receivable is $ nil 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. Intangible
Asset, Net Intangible
asset is software development cost incurred by the Company and it will be amortized on a straight line basis over the estimated
useful life of 5 years. 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% likelihood of
being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. 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 June 30, 2023, there were no potentially dilutive shares.
For the For the
Statement of Operations Summary Information:
Net (Loss)/ Profit $ (958,761 ) $ 140,177
Weighted-average common shares outstanding - basic and diluted 172,526,771 231,052,498
Net (Loss)/ Profit per share, basic and diluted $ (0.00 ) $ 0.00 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. |
