Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Jul. 14, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Entity Registrant Name | WETRADE GROUP INC | ||
Entity Central Index Key | 0001784970 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | true | ||
Entity Current Reporting Status | No | ||
Document Period End Date | Dec. 31, 2022 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Entity Ex Transition Period | false | ||
Entity Common Stock Shares Outstanding | 1,054,530 | ||
Entity Public Float | $ 0 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Incorporation State Country Code | WY | ||
Entity Address Address Line 1 | Room 101 | ||
Entity Address Address Line 2 | Level 1 Building 8 | ||
Entity Address Address Line 3 | No. 18, Kechuang 10th Street | ||
Entity Address City Or Town | Beijing | ||
Entity Address Country | CN | ||
Entity Address Postal Zip Code | 100020 | ||
City Area Code | 86 | ||
Icfr Auditor Attestation Flag | true | ||
Local Phone Number | 135-011-76409 | ||
Security 12b Title | Common Stock, no par value | ||
Auditor Name | Assentsure PAC | ||
Auditor Location | Singapore | ||
Auditor Firm Id | 6783 | ||
Entity Interactive Data Current | Yes |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash and Cash Equivalents | $ 20,025,495 | $ 616,593 |
Accounts receivable- non related parties, net | 6,828,195 | 5,627,463 |
Account receivable- related parties, net | 549,606 | 3,603,402 |
Loan receivable | 1,614,841 | 3,798,130 |
Other receivables | 50,839 | 30,147 |
Prepayments | 3,160,932 | 2,760,658 |
Prepayments- related parties | 1,914,515 | 0 |
Total Current Assets | 34,144,423 | 16,436,393 |
Prepayments | 10,000,000 | 0 |
Amortised expenses, net | 828,983 | |
Property and equipment, net | 992,445 | 395,353 |
Non-Current Assets: | ||
Right of use assets | 0 | 2,328,950 |
Intangible asset, net | 23,188 | 37,765 |
Other receivable | 240,202 | |
Rental deposit- related party | 0 | 272,063 |
Total Non-Current Assets | 12,084,818 | 3,034,131 |
Total Assets: | 46,229,241 | 19,470,524 |
Current Liabilities: | ||
Account Payables | 143,917 | 7,710 |
Account payables- related parties | 281,136 | 54,436 |
Accrued expenses | 298,595 | 217,073 |
Tax payables | 128,979 | 711,841 |
Amount due to related parties | 1,291,296 | 1,105,532 |
Lease liabilities, current | 0 | 596,098 |
Other payables | 2,365,808 | 306,270 |
Total Current Liabilities | 4,509,731 | 2,998,960 |
Non-current liabilities | ||
Lease liabilities, non current | 0 | 1,942,242 |
Total Liabilities | 4,509,731 | 4,941,202 |
Stockholders' Equity: | ||
Common Stock; no par value; 195,057,503 issued and outstanding at December 31, 2022 and 305,451,498 issued and outstanding at December 31, 2021* | 0 | 0 |
Additional Paid in Capital | 43,732,196 | 6,197,520 |
Accumulated other comprehensive income | (298,576) | 898,497 |
(Accumulated Deficits)/ Retained Earnings | (1,714,110) | 7,433,305 |
Total Stockholders' Equity | 41,719,510 | 14,529,322 |
Total Liabilities and Stockholders' Equity | $ 46,229,241 | $ 19,470,524 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
CONSOLIDATED BALANCE SHEETS | ||
Common stock, shares no par value | $ 0 | $ 0 |
Common stock, shares issued | 195,057,503 | 305,451,498 |
Common stock, shares outstanding | 195,057,503 | 305,451,498 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue: | ||
Service revenue, non-related party | $ 10,803,232 | $ 9,734,966 |
Service revenue, related party | 868,103 | 4,646,329 |
Total service revenue | 11,671,335 | 14,381,295 |
Cost of Revenue | (9,695,290) | (2,681,939) |
Gross Profit | 1,976,045 | 11,699,356 |
Operating Expenses: | ||
General and Administrative | (11,843,048) | (5,705,063) |
Operations (Loss)/ profit | (9,867,003) | 5,994,293 |
Other income | 636,934 | 303,665 |
(Loss)/ Income before income tax | (9,230,069) | 6,297,958 |
Income tax income/ (expense) | 82,654 | (1,122,283) |
Net (Loss)/Income | (9,147,415) | 5,175,675 |
Other Comprehensive Income | ||
Foreign currency translation adjustment | (1,197,073) | 319,762 |
Comprehensive (Loss)/ Income | $ (10,344,488) | $ 5,495,437 |
Net (loss)/ income per share - basic and diluted | $ (0.04) | $ 0.02 |
Weighted average number of shares outstanding*; Basic and Diluted | 223,259,181 | 305,451,498 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders Equity - USD ($) | Total | Additional Paid-In Capital | Retained Earnings (Accumulated Deficits) | Accumulated Other Comprehensive Income | Common Stock |
Balance, amount at Dec. 31, 2020 | $ 8,893,885 | $ 6,057,520 | $ 2,257,630 | $ 578,735 | $ 0 |
Balance, shares at Dec. 31, 2020 | 305,451,498 | ||||
Related party payable forgiveness | 140,000 | 140,000 | 0 | 0 | $ 0 |
Foreign currency translation adjustment | 319,762 | 0 | 0 | 319,762 | 0 |
Net income/loss for the year | 5,175,675 | 0 | 5,175,675 | 0 | 0 |
Balance, amount at Dec. 31, 2021 | 14,529,322 | 6,197,520 | 7,433,305 | 898,497 | $ 0 |
Balance, shares at Dec. 31, 2021 | 305,451,498 | ||||
Foreign currency translation adjustment | (1,197,073) | 0 | 0 | (1,197,073) | $ 0 |
Net income/loss for the year | (9,147,415) | 0 | (9,147,415) | 0 | $ 0 |
Share cancellation, shares | (120,418,995) | ||||
Share cancellation, amount | 0 | 0 | 0 | 0 | $ 0 |
Sale of common shares, net of fees, shares | 10,000,000 | ||||
Sale of common shares, net of fees, amount | 37,057,176 | 37,057,176 | 0 | 0 | $ 0 |
Stock compensation, shares | 25,000 | ||||
Stock compensation, amount | 477,500 | 477,500 | 0 | 0 | $ 0 |
Balance, amount at Dec. 31, 2022 | $ 41,719,510 | $ 43,732,196 | $ (1,714,110) | $ (298,576) | $ 0 |
Balance, shares at Dec. 31, 2022 | 195,057,503 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flows from Operating Activities: | ||
Net (Loss)/ Income | $ (9,147,415) | $ 5,175,675 |
Adjustment to reconcile net income to cash flows from operating activities: | ||
Depreciation expenses | 263,260 | 23,353 |
Amortization of intangible assets | 14,577 | 12,519 |
Forgiveness of related party debt | 0 | 140,000 |
Changes in Operating Assets and Liabilities: | ||
Account receivables | (1,200,732) | (2,910,665) |
Account receivables- related parties | 2,813,594 | (3,558,398) |
Other receivables | 251,371 | 244,749 |
Prepaid expenses | (10,400,274) | (2,926,541) |
Prepaid expenses- related parties | (1,914,515) | 0 |
Account payable | 136,207 | (910) |
Account payable- related parties | 226,700 | 51,031 |
Accrued expenses | 81,522 | (52,178) |
Tax payables | (582,862) | (177,836) |
Other payables | 2,059,538 | 250,870 |
Lease liabilities | (2,538,340) | (585,253) |
Right of use assets | 2,328,950 | 560,200 |
Net Cash Flows provided by/ (used in) Operating Activities: | (17,608,419) | (3,753,384) |
Cash flow from Investing activities: | ||
Loan receivable | 2,183,289 | 611,210 |
Amortised expenses | (995,775) | |
Office equipment | (693,560) | (417,112) |
Net cash flows provided by/(used in) investing activities: | 493,954 | (1,028,322) |
Cash flow from financing activities: | ||
Proceeds from issuance of common stock | 37,534,676 | 0 |
Related party loan | 185,764 | 689,031 |
Net cash provided by financing activities: | 37,720,440 | 689,031 |
Effect of exchange rate changes on cash | (1,197,073) | 68,665 |
Change in Cash and Cash Equivalents: | 19,408,902 | (4,024,010) |
Cash and Cash Equivalents, Beginning of Period | 616,593 | 4,640,603 |
Cash and Cash Equivalents, End of Period | 20,025,495 | 616,593 |
NON-CASH FINANCING TRANSACTION | ||
Forgiveness of related party payable | 0 | 140,000 |
Supplemental Cash Flow Information: | ||
Cash paid for interest | 0 | 0 |
Cash paid for taxes | $ 0 | $ 480,528 |
NATURE OF BUSINESS
NATURE OF BUSINESS | 12 Months Ended |
Dec. 31, 2022 | |
NATURE OF BUSINESS | |
NATURE OF BUSINESS | NOTE 1. NATURE OF BUSINESS Organization WeTrade Group, Inc was incorporated in the State of Wyoming on March 28, 2019. As of December 31, 2022, the company is in the business of providing technical services and solutions via its social e-commerce platform and chatGPT technical services. We are committed to providing an international cloud-based intelligence system and independently developed a micro-business cloud intelligence system called the “YCloud.” Our goal is to provide technical and auto-billing management services to micro-business online stores in China through big data analytics, machine learning mechanisms, social network recommendations, and multi-channel data analysis. We provide technology services to both individual and corporate users. Through Yueshang Information Technology (Beijing) Limited, or Yueshang Beijing, we provide access to “YCloud” to our two customers, which are Zhuozhou Weijiafu Information Technology Limited (“Weijiafu”), a PRC technology company, which then provide “YCloud” services to individual and corporate micro-business owners and Changtongfu Technology (Hainan) Co Limited (“Changtongfu”), a PRC technology company, which then provide “YCloud” services to individual and corporate business owners in the hotel and travel industries. The market of individual micro-business owners represents a potential of 330 million users by the year of 2023. YCloud serves corporate users in multiple industries, including Yuetao Group, Zhiding, Lvyue, Yuebei, Yuedian, Coke GO, and Zhongyanshangyue. We conduct business operations in mainland China and have established trial operations in Singapore. We expect to utilize the YCloud system to establish a global strategic cooperation with various social media platforms. The main functions of the YCloud system are assisting users to manage its marketing relationships, CPS commission profit management, multi-channel data statistics, AI fission and management, and improved supply chain systems. Currently, YCloud serves the micro business industry which include tourism, hospitality, medical beauty and traditional retail industries. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Recently Issued and Adopted Financial Accounting Standards Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“ASU 2016-02”), which requires lessees to recognize lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under current U.S. GAAP. ASU 2016-02 requires a lessee to recognize a lease liability and a right-of-use asset for each lease with a term longer than twelve months. The new guidance also requires additional qualitative and quantitative disclosures related to the nature, timing and uncertainty of cash flows arising from leases. The Company adopted the new standard effective January 1, 2022, using a modified retrospective approach and electing to use the package of practical expedients permitted under the transition guidance, which allows for the carry forward of historical lease classification for existing leases on the adoption date and does not require the assessment of existing lease contracts to determine whether the contracts contain a lease or initial direct costs. Prior periods were not retrospectively adjusted. The Company did not have any finance lease liabilities as of the adoption date. There was no cumulative effect adjustment to the opening balance of accumulated deficit as of January 1, 2022. Adoption of this new guidance did not have a material impact on the consolidated statements of operations or cash flows. Accounting Standards Effective in Future Periods Financial Instruments—Credit Losses In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-03”).” The amendments in this update introduce a new standard to replace the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. Subsequent to the initial standards, the FASB has also issued several ASUs to clarify specific topics. ASU 2016-13 is effective for the Company’s fiscal year beginning January 1, 2023. The Company does not expect the implementation of ASU 2016-13 to have a material impact on consolidated financial statements. Basis of Presentation The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company transactions and balances have been eliminated on consolidation. As of December 31, 2022, the details of the consolidating subsidiaries are as follows: Place of Attributable Name of Company incorporation equity 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 % Yueshang Group Network (Hunan) Co., Limited (“Yueshang Hunan”) P.R.C 100 % WeTrade Digital Technology (Beijing) 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 % Consolidation The Company’s 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 and Assumptions 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 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. 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 nonfinancial items that are recognized and disclosed at fair value in the financial statements on a nonrecurring 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. Concentrations of Credit Risk, Significant Customers The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of accounts receivable. The Company does not require collateral for accounts receivables. The Company maintains an allowance for its doubtful accounts receivable due to estimated credit losses. The Company does not record the allowance against bad debt expense through the 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. As of December 31, 2022 and 2021, accounts receivable from two main customers amounted to $7,377,801 and $9,230,865 respectively. Revenue Recognition The Company follows the guidance of Accounting Standards Codification (ASC) 606, Revenue from Contracts. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contracts, which includes (1) identifying the contracts or agreements with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the services it transfers to its clients. Cash and Cash Equivalents The Company considers all highly liquid debt instruments purchased with a maturity period of three months or less to be cash or cash equivalents. The carrying amounts reported in the accompanying consolidated balance sheets for cash and cash equivalents approximate their fair value. All of the Company’s cash that is held in bank accounts in Singapore, Hong Kong, and PRC are not protected by Federal Deposit Insurance Corporation (“FDIC”) insurance. Foreign Currency The Company’s principal country of operations is the PRC. The accompanying consolidated financial statements are presented in US$. The functional currency of the Company is US$, and the functional currency of the Company’s subsidiaries is RMB. The consolidated financial statements are translated into US$ 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 December 31, 2022. Year ended December 31, 2022 2021 RMB: US$ exchange rate 6.9 6.36 The balance sheet amounts, with the exception of equity, December 31, 2022 and December 31, 2021 were translated at 6.9 RMB and 6.36 RMB to $1.00, respectively. The equity accounts were stated at their historical rates. The average translation rates applied to statements of operations and comprehensive income (loss) accounts for the year ended December 31, 2022 and year ended December 31, 2021 were 6.75 RMB and 6.44 RMB to $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 consolidated balance sheet. The transactions dominated in SGD are immaterial. Intangible Asset Intangible asset is software development cost of YCloud system incurred by the Company, it will be amortized on a straight line basis over the estimated useful life of 5 years. 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. 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 consolidated balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in our 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. 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 a subsidiary 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. Capital Structure Earnings (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 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 loss periods as their effect would be anti-dilutive. As of December 31, 2022 and 2021, there were no potentially dilutive shares. 2022 2021 Statement of Operations Summary Information: Net (loss)/ profit $ (9,147,415 ) $ 5,175,675 Weighted-average common shares outstanding - basic and diluted 223,259,181 305,451,498 Net (loss) / profit per share, basic and diluted $ (0.04 ) $ 0.02 |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2022 | |
REVENUE | |
REVENUE | NOTE 3. REVENUE The Company is in the business of providing an international cloud-based intelligence system, namely “YCloud” system. We aim to provide technical and auto-billing management system services to micro-business online stores in China through big data analytics, machine learning mechanisms, social network recommendations, and multi-channel data analysis. Weijiafu and Changtongfu are our customers to take charge of the Ycloud users’ profiles. Meanwhile, all YCloud users’ information is retained within YCloud system. We derive our revenue from system service fees charged for transactions conducted through YCloud. We receive 2%-3.5% of the total Gross Merchandise Volume generated in the platform as a system service fee from YCloud users through service agreement with our customers (such as Weijiafu and Changtongfu), depending on the type of service and industry. Gross Merchandise Volume, or GMV, is a term used in online retailing to indicate a total sales monetary-value for merchandise sold through a particular marketplace over a certain time frame. We generally receive the system service fee from Weijiafu and Changtongfu within the first ten days of each calendar month. As of reporting date, all the service fee receivable has been fully settled and received. As of December 31, 2022 and 2021, the Gross Merchandise Volume, or GMV in YCloud systems are as follow: Gross Merchandise Volume (“GMV”) 2022 2021 US$ US$ Non-related party 327,183,593 292,177,817 Related party 26,291,122 139,359,179 Total: 353,474,715 431,536,996 For the year end December 31, 2022 and 2021, we generated revenues from YCloud service fees amounting to $11,671,335 and $14,381,295. Service revenue from third party were $10,803,232 (2021: $9,734,966) and service revenue from related party were $868,103 (2021: $4,646,329) for the year ended December 31, 2022. |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2022 | |
CASH AND CASH EQUIVALENTS | |
CASH AND CASH EQUIVALENTS | NOTE 4 – CASH AND CASH EQUIVALENTS As of December 31, 2022 and 2021, the Company held cash in bank amounting to $20,025,495 which consists of the following: December 31, 2022 December 31, 2021 Bank Deposits-USA $ 22,926 - Bank Deposits- Outside USA 20,002,569 616,593 20,025,495 616,593 |
INTANGIBLE ASSET, NET
INTANGIBLE ASSET, NET | 12 Months Ended |
Dec. 31, 2022 | |
INTANGIBLE ASSET, NET | |
INTANGIBLE ASSET, NET | NOTE 5 – INTANGIBLE ASSET, NET Intangible asset is software development cost incurred by the Company which is amortized on a straight line basis over the useful life of 5 years as follow: December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Useful Life (Years) Intangible assets: Software development $ 57,143 $ (36,347 ) $ 20,796 5 Foreign currency translation adjustment - - 2,392 Intangible assets, net $ 57,143 $ (36,347 ) $ 23,188 December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Useful Life (Years) Intangible assets: Software development $ 57,143 $ (25,176 ) $ 31,967 5 Foreign currency translation adjustment - - 5,798 Intangible assets, net $ 57,143 $ (25,176 ) $ 37,765 Amortization expense for intangible assets was $14,577 and $12,519 for the year ended December 31, 2022 and 2021. Expected future intangible asset amortization as of December 31, 2022 was as follows: Fiscal years: Remaining 2023 $ 14,577 2024 8,611 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2022 | |
PROPERTY AND EQUIPMENT, NET | |
PROPERTY AND EQUIPMENT, NET | NOTE 6 – PROPERTY AND EQUIPMENT, NET As of December 31, 2022 and 2021, property and equipment consists of the following: December 31, 2022 December 31, 2021 Property and equipment: Office equipment $ 865,623 $ 150,915 Leasehold improvement 246,643 267,791 Subtotal 1,112,266 418,706 Less: Accumulated depreciation (119,821 ) (23,353 ) Property and equipment, net $ 992,445 $ 395,353 There is addition of $693,560 in office equipment and leasehold improvement in 2022. Depreciation expenses of office equipment and leasehold improvement were $96,468 and $23,353 for the year ended December 31, 2022 and 2021. December 31, 2022 December 31, 2021 Amortised expenses 995,775 - Less: Accumulated depreciation (166,792 ) - Amortised expenses, net $ 828,983 $ - Amortised expenses are related to the office renovation. There is addition of $995,775 in office renovation in 2022. Depreciation expense were $166,792 and $nil for the year ended December 31, 2022 and 2021. |
ACCOUNT RECEIVABLES, NET
ACCOUNT RECEIVABLES, NET | 12 Months Ended |
Dec. 31, 2022 | |
ACCOUNT RECEIVABLES, NET | |
ACCOUNT RECEIVABLES, NET | NOTE 7 – ACCOUNT RECEIVABLES, NET As of December 31, 2022 and 2021, account receivables consists of the following: December 31, 2022 December 31, 2021 Account Receivables- Non related party $ 6,828,195 $ 5,627,463 Account Receivables- Related party 549,606 3,603,402 $ 7,377,801 $ 9,230,865 The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of accounts receivable. 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 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. As of December 31, 2022, account receivable from non-related customers amounted to $6,828,195 (2021: $5,627,463) and related parties- Changtongfu are amounted to $549,606 (2021: $3,603,402). As of the reporting date, all the account receivables have been fully settled from 4 main non-related customers and 1 related party customer- Changtongfu. |
LOAN RECEIVABLE
LOAN RECEIVABLE | 12 Months Ended |
Dec. 31, 2022 | |
LOAN RECEIVABLE | |
LOAN RECEIVABLE | NOTE 8 –LOAN RECEIVABLE December 31, 2022 December 31, 2021 Loan receivables $ 1,614,841 $ 3,798,130 Loan receivable relates to the short-term loan of RMB 23 million (approximately of US$3.33 million) to a third party, which will mature on August 31, 2023. The accrued interest and principal amount of the loan for the year ended December 31, 2022 and 2021 are as follow: December 31, 2022 December 31, 2021 Principal $ 1,614,841 $ 3,630,504 Accrued interest - 167,626 $ 1,614,841 $ 3,798,130 In 2022, the Company has waived the interest to the borrower and therefore there is no accrued interest during the year. |
OTHER RECEIVABLES
OTHER RECEIVABLES | 12 Months Ended |
Dec. 31, 2022 | |
OTHER RECEIVABLES | |
OTHER RECEIVABLES | NOTE 9 – OTHER RECEIVABLES As of December 31, 2022 and 2021, other receivables-current consists of staff advances and system set up fees as follow: December 31, 2022 December 31, 2021 Advances to staff 50,839 19,302 Others - 10,845 50,839 30,147 As of December 31, 2022 and 2021, other receivable non-current consist of office rental deposit as follow: December 31, 2022 December 31, 2021 Rental deposit 240,202 - |
PREPAYMENTS
PREPAYMENTS | 12 Months Ended |
Dec. 31, 2022 | |
PREPAYMENTS | |
PREPAYMENTS | NOTE 10 – PREPAYMENTS As of December 31, 2022 and 2021, prepayments consist of the following: December 31, 2022 December 31, 2021 Software development fee- Current $ 2,580,416 $ 61,165 Software development fee- Non current 10,000,000 Block chain software and annual fee 580,516 630,291 Office furniture - 1,895,591 Office rental - 173,611 $ 13,160,932 $ 2,760,658 As of December 31, 2022, software development fee and others is mainly related to the WT Pay system development prepayment of $10 million, which is expected to be completed by September 2023. As of December 31, 2022 and 2021, prepayments- related parties consist of the following: December 31, 2022 December 31, 2021 Y-cloud system upgrade $ 1,914,515 $ - As of December 31, 2022, the prepayment-related parties of $1.9 million are mainly related to the Y-cloud system upgrade, which is expected to be completed by September 2023. |
RENTAL DEPOSIT-RELATED PARTIES
RENTAL DEPOSIT-RELATED PARTIES | 12 Months Ended |
Dec. 31, 2022 | |
RENTAL DEPOSIT-RELATED PARTIES | |
RENTAL DEPOSIT-RELATED PARTIES | NOTE 11 – RENTAL DEPOSIT-RELATED PARTIES As of December 31, 2022 and December 31, 2021, rental deposit of $nil and $272,063 relates to office lease deposit. The office tenancy period is 5 years and it will be refundable after the end of tenancy. With effect from July 1, 2022, the office tenancy has been transferred to a related company- Zhiding Network Technology (Beijing) Co Limited (“ZNTB”), in which the remaining office rental will be paid by ZNTB under the remaining tenancy period. On July 1, 2022, the difference between the carrying amounts of the right-of-use asset and the lease liability amounting to $209,402 was recognized as other income. |
AMOUNT DUE TO RELATED PARTIES
AMOUNT DUE TO RELATED PARTIES | 12 Months Ended |
Dec. 31, 2022 | |
AMOUNT DUE TO RELATED PARTIES | |
AMOUNT DUE TO RELATED PARTIES | NOTE 12 – AMOUNT DUE TO RELATED PARTIES As of December 31, 2022 As of December 31, 2021 Related parties payable $ 521,296 $ 745,532 Director fee payable 770,000 360,000 $ 1,291,296 $ 1,105,532 As of December 31, 2022, the related party balance of $521,296 represented advances and professional expenses paid on behalf by Director, which consists of $260,198 advance from Dai Zheng, $42,000 advance from Li Zhuo, $10,000 from Che Kean Tat and $209,098 office rental advance from Liu Pijun through Zhiding Network Technology (Beijing) Co Limited (“ZNTB”). It is unsecured, interest-free with no fixed payment term and imputed interest is considered to be immaterial. As of December 31, 2022, the director fee payable of $770,000 represented the accrual of director fees from the appointment date to December 31, 2022. |
TAX PAYABLES
TAX PAYABLES | 12 Months Ended |
Dec. 31, 2022 | |
TAX PAYABLES | |
TAX PAYABLES | NOTE 13 – TAX PAYABLES As of December 31, 2022, tax payable of $128,979 (2021: $711,841) consisted of PRC corporate income tax at the rate from 15% to 25%, Value-added Tax at the rate from 6% to 13% and PRC Urban construction tax and levies as follow: As of December 31, 2022 As of December 31, 2021 Corporate income tax $ - $ 649,032 VAT, Urban construction tax and levies 128,979 62,809 $ 128,979 $ 711,841 |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2022 | |
ACCRUED EXPENSES | |
ACCRUED EXPENSES | NOTE 14 – ACCRUED EXPENSES Accrued expenses of $298,595 consists of the accrued payroll, CPF and social welfare as follow: December 31, 2022 December 31, 2021 Accrued payroll $ 298,595 $ 217,073 |
OTHER PAYABLES
OTHER PAYABLES | 12 Months Ended |
Dec. 31, 2022 | |
OTHER PAYABLES | |
OTHER PAYABLES | NOTE 15 – OTHER PAYABLES Other payables of $2,365,808 consists of the payables for system set up fee and related documentation expenses as follows: December 31, 2022 December 31, 2021 Y-Cloud System upgrade and iteration payables $ 1,879,673 $ - Security account set up fee-Staff 486,135 306,270 $ 2,365,808 $ 306,270 |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2022 | |
EQUITY | |
EQUITY | NOTE 16 – EQUITY The Company has an unlimited number of ordinary shares authorized, and has issued 195,057,503 shares with no par value as of December 31, 2022. On March 29, 2019, the Company has issued 100,000,000 shares with no par value to thirty-three founders. On September 3, 2019, the Company has issued a total 74,000 shares at $3 each to 5 non-US shareholders. The total outstanding shares has increased to 100,074,000 shares as of December 31, 2019. In February 2020, there are 1,666,666 shares were issued at $3 per share to 2 new shareholders. On July 10, 2020, the Company issued another 26,000 shares at $3 per share to 2 new shareholders and the total outstanding shares has increased to 101,766,666 shares. 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. The total issued and outstanding shares of the Company’s common stock has been increased from 101,766,666 to 305,299,998 shares, with the par value unchanged at zero. On September 21, 2020, there are 151,500 shares issued at $5 per share to 303 new shareholders, the Company’s common stock issued has been increased to 305,451,498 shares as of December 31, 2020. 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 shares of Common Stock (“Cancellation Shares”). Upon completion of the transaction, the outstanding shares of the Company’s Common Stock has been decreased from 305,451,498 shares to 185,032,503 shares as of June 30, 2022. On July 21, 2022, the Company has uplisted its common stock to the Nasdaq Capital Market, and the closing of its public offering of 10,000,000 shares of common stock with the gross proceeds of $40,000,000 and net proceeds of $37,057,176 after deducting the total offering cost of $2,942,824. The shares were priced at $4.00 per share, and the offering was conducted on a firm commitment basis. The shares continue to trade under the stock symbol “WETG.” The Company’s total issued and outstanding common stock has been increased to 195,032,503 shares after the offering. On July 22, 2022, the Company issued 25,000 shares of common stock to certain service providers for services in connection with the public offering, the fair value of the share was $477,500. The Company’s total issued and outstanding common stock has been increased to 195,057,503 shares as of December 31, 2022. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
INCOME TAXES | |
INCOME TAXES | NOTE 17 – 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%. Since UTour had no taxable income during the reporting period, it has not paid Singapore profits taxes. UTour has not recognized an income tax benefit for its operating losses in Singapore because it does not expect to commence active operations in Singapore. WeTrade Information Technology Limited (“WITL”) was incorporated in Hong Kong and is subject to Hong Kong profits tax at a tax rate of 16.5%. Since WITL had no taxable income during the reporting period, it has not paid Hong Kong profits taxes. WITL has not recognized an income tax benefit for its operating losses in Hong Kong because the Company does not expect to commence active operations in Hong Kong. The Company is currently conducting its major operations in the PRC through Yueshang Information Technology (Beijing) Co., Ltd., Yushang Group (Hunan) Network Technology Limited, Yueshang Technology Group ( Hainan) Limited and Tibet Xiaoshang Technology Group Limited, which are subject to tax from 15% to 25%. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2022 | |
SUBSEQUENT EVENT | |
SUBSEQUENT EVENT | NOTE 18 – SUBSEQUENT EVENT 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 reverse stock split. The total issued and outstanding shares of the Company’s common stock decreased from 195,057,503 to 1,054,364 shares, with the par value unchanged at zero. The Reverse Stock Split is intended to more expediently enable to Company to regain compliance to achieve a minimum bid price of $1.00 per share for continued listing on Nasdaq, as set forth in Nasdaq Listing Rule 5550(a)(2) (the "Minimum Bid Requirement"). As a result of the Reverse Stock Split, every one-for-one hundred and eighty-five (185) shares of the Company's Common Stock then issued and outstanding will automatically, and without any action of the Company or any holder thereof, be combined, converted, and changed into one (1) validly issued and non-assessable share of Common Stock. No fractional shares will be issued to any shareholder, and in lieu of issuing any such fractional shares, the fractional shares resulting from the Reverse Stock Split will be rounded up to the nearest whole share of Common Stock. |
RECLASSIFICATION
RECLASSIFICATION | 12 Months Ended |
Dec. 31, 2022 | |
RECLASSIFICATION | |
RECLASSIFICATION | NOTE 19 – RECLASSIFICATION A prior year amount have been reclassified for consistency with the current year presentation. This reclassification had no effect on the reported results of operations and performance position. A reclassification has been made to the Consolidated Statements of Cash Flows for the year ended December 31, 2021, to reclassify the loan receivable from cash flow financing activities to cash flow investing activities. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Recently Issued and Adopted Financial Accounting Standards | Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“ASU 2016-02”), which requires lessees to recognize lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under current U.S. GAAP. ASU 2016-02 requires a lessee to recognize a lease liability and a right-of-use asset for each lease with a term longer than twelve months. The new guidance also requires additional qualitative and quantitative disclosures related to the nature, timing and uncertainty of cash flows arising from leases. The Company adopted the new standard effective January 1, 2022, using a modified retrospective approach and electing to use the package of practical expedients permitted under the transition guidance, which allows for the carry forward of historical lease classification for existing leases on the adoption date and does not require the assessment of existing lease contracts to determine whether the contracts contain a lease or initial direct costs. Prior periods were not retrospectively adjusted. The Company did not have any finance lease liabilities as of the adoption date. There was no cumulative effect adjustment to the opening balance of accumulated deficit as of January 1, 2022. Adoption of this new guidance did not have a material impact on the consolidated statements of operations or cash flows. |
Accounting Standards Effective in Future Periods | Financial Instruments—Credit Losses In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-03”).” The amendments in this update introduce a new standard to replace the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. Subsequent to the initial standards, the FASB has also issued several ASUs to clarify specific topics. ASU 2016-13 is effective for the Company’s fiscal year beginning January 1, 2023. The Company does not expect the implementation of ASU 2016-13 to have a material impact on consolidated financial statements. |
Basis of Presentation | The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company transactions and balances have been eliminated on consolidation. As of December 31, 2022, the details of the consolidating subsidiaries are as follows: Place of Attributable Name of Company incorporation equity 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 % Yueshang Group Network (Hunan) Co., Limited (“Yueshang Hunan”) P.R.C 100 % WeTrade Digital Technology (Beijing) 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 % |
Consolidation | The Company’s 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 and Assumptions | 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 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. |
Fair Value Mesurement | 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 nonfinancial items that are recognized and disclosed at fair value in the financial statements on a nonrecurring 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. |
Concentrations of Credit Risk, Significant Customers | The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of accounts receivable. The Company does not require collateral for accounts receivables. The Company maintains an allowance for its doubtful accounts receivable due to estimated credit losses. The Company does not record the allowance against bad debt expense through the 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. As of December 31, 2022 and 2021, accounts receivable from two main customers amounted to $7,377,801 and $9,230,865 respectively. |
Revenue Recognition | The Company follows the guidance of Accounting Standards Codification (ASC) 606, Revenue from Contracts. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contracts, which includes (1) identifying the contracts or agreements with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the services it transfers to its clients. |
Cash and Cash Equivalents | The Company considers all highly liquid debt instruments purchased with a maturity period of three months or less to be cash or cash equivalents. The carrying amounts reported in the accompanying consolidated balance sheets for cash and cash equivalents approximate their fair value. All of the Company’s cash that is held in bank accounts in Singapore, Hong Kong, and PRC are not protected by Federal Deposit Insurance Corporation (“FDIC”) insurance. |
Foreign Currency | The Company’s principal country of operations is the PRC. The accompanying consolidated financial statements are presented in US$. The functional currency of the Company is US$, and the functional currency of the Company’s subsidiaries is RMB. The consolidated financial statements are translated into US$ 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 December 31, 2022. Year ended December 31, 2022 2021 RMB: US$ exchange rate 6.9 6.36 The balance sheet amounts, with the exception of equity, December 31, 2022 and December 31, 2021 were translated at 6.9 RMB and 6.36 RMB to $1.00, respectively. The equity accounts were stated at their historical rates. The average translation rates applied to statements of operations and comprehensive income (loss) accounts for the year ended December 31, 2022 and year ended December 31, 2021 were 6.75 RMB and 6.44 RMB to $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 consolidated balance sheet. The transactions dominated in SGD are immaterial. |
Intangible Asset | Intangible asset is software development cost of YCloud system incurred by the Company, it will be amortized on a straight line basis over the estimated useful life of 5 years. |
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. |
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 consolidated balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in our 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. |
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 a subsidiary 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. |
Capital Structure | The Company currently has unlimited authorized shares of $0.00 par value common stock, with 195,057,503 shares issued and outstanding as of December 31, 2022. |
Earnings (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 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 loss periods as their effect would be anti-dilutive. As of December 31, 2022 and 2021, there were no potentially dilutive shares. 2022 2021 Statement of Operations Summary Information: Net (loss)/ profit $ (9,147,415 ) $ 5,175,675 Weighted-average common shares outstanding - basic and diluted 223,259,181 305,451,498 Net (loss) / profit per share, basic and diluted $ (0.04 ) $ 0.02 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of consolidated subsidiaries | Place of Attributable Name of Company incorporation equity 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 % Yueshang Group Network (Hunan) Co., Limited (“Yueshang Hunan”) P.R.C 100 % WeTrade Digital Technology (Beijing) 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 % |
Schedule of exchange rate | Year ended December 31, 2022 2021 RMB: US$ exchange rate 6.9 6.36 |
Schedule of potentially diluted shares | 2022 2021 Statement of Operations Summary Information: Net (loss)/ profit $ (9,147,415 ) $ 5,175,675 Weighted-average common shares outstanding - basic and diluted 223,259,181 305,451,498 Net (loss) / profit per share, basic and diluted $ (0.04 ) $ 0.02 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
REVENUE | |
Schedule of Gross Merchandise Volume of Related & Non Related Party | Gross Merchandise Volume (“GMV”) 2022 2021 US$ US$ Non-related party 327,183,593 292,177,817 Related party 26,291,122 139,359,179 Total: 353,474,715 431,536,996 |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
CASH AND CASH EQUIVALENTS | |
Schedule of cash in bank | December 31, 2022 December 31, 2021 Bank Deposits-USA $ 22,926 - Bank Deposits- Outside USA 20,002,569 616,593 20,025,495 616,593 |
INTANGIBLE ASSET, NET (Tables)
INTANGIBLE ASSET, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INTANGIBLE ASSET, NET | |
Schedule of intangible assets | December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Useful Life (Years) Intangible assets: Software development $ 57,143 $ (36,347 ) $ 20,796 5 Foreign currency translation adjustment - - 2,392 Intangible assets, net $ 57,143 $ (36,347 ) $ 23,188 December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Useful Life (Years) Intangible assets: Software development $ 57,143 $ (25,176 ) $ 31,967 5 Foreign currency translation adjustment - - 5,798 Intangible assets, net $ 57,143 $ (25,176 ) $ 37,765 |
Schedule of intangible assets amortization expenses | Fiscal years: Remaining 2023 $ 14,577 2024 8,611 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PROPERTY AND EQUIPMENT, NET | |
Schedule of property and equipment | December 31, 2022 December 31, 2021 Property and equipment: Office equipment $ 865,623 $ 150,915 Leasehold improvement 246,643 267,791 Subtotal 1,112,266 418,706 Less: Accumulated depreciation (119,821 ) (23,353 ) Property and equipment, net $ 992,445 $ 395,353 |
Schedule of office renovation | December 31, 2022 December 31, 2021 Amortised expenses 995,775 - Less: Accumulated depreciation (166,792 ) - Amortised expenses, net $ 828,983 $ - |
ACCOUNT RECEIVABLES, NET (Table
ACCOUNT RECEIVABLES, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ACCOUNT RECEIVABLES, NET | |
Schedule of Account receivable | December 31, 2022 December 31, 2021 Account Receivables- Non related party $ 6,828,195 $ 5,627,463 Account Receivables- Related party 549,606 3,603,402 $ 7,377,801 $ 9,230,865 |
LOAN RECEIVABLE (Tables)
LOAN RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LOAN RECEIVABLE | |
Schedule of Note receivables | December 31, 2022 December 31, 2021 Loan receivables $ 1,614,841 $ 3,798,130 |
Schedule of accrued interest and principal amount | December 31, 2022 December 31, 2021 Principal $ 1,614,841 $ 3,630,504 Accrued interest - 167,626 $ 1,614,841 $ 3,798,130 |
OTHER RECEIVABLES (Tables)
OTHER RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
OTHER RECEIVABLES | |
Schedule of other receivables current | December 31, 2022 December 31, 2021 Advances to staff 50,839 19,302 Others - 10,845 50,839 30,147 |
Schedule of other receivables non current | December 31, 2022 December 31, 2021 Rental deposit 240,202 - |
PREPAYMENTS (Tables)
PREPAYMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PREPAYMENTS | |
Schedule of Prepayments | December 31, 2022 December 31, 2021 Software development fee- Current $ 2,580,416 $ 61,165 Software development fee- Non current 10,000,000 Block chain software and annual fee 580,516 630,291 Office furniture - 1,895,591 Office rental - 173,611 $ 13,160,932 $ 2,760,658 |
Schedule of Prepayments related party | December 31, 2022 December 31, 2021 Y-cloud system upgrade $ 1,914,515 $ - |
AMOUNT DUE TO RELATED PARTIES (
AMOUNT DUE TO RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
AMOUNT DUE TO RELATED PARTIES | |
Schedule of due to related parties | As of December 31, 2022 As of December 31, 2021 Related parties payable $ 521,296 $ 745,532 Director fee payable 770,000 360,000 $ 1,291,296 $ 1,105,532 |
TAX PAYABLES (Tables)
TAX PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
TAX PAYABLES | |
Schedule of Tax payable | As of December 31, 2022 As of December 31, 2021 Corporate income tax $ - $ 649,032 VAT, Urban construction tax and levies 128,979 62,809 $ 128,979 $ 711,841 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ACCRUED EXPENSES | |
Schedule of accrued expenses | December 31, 2022 December 31, 2021 Accrued payroll $ 298,595 $ 217,073 |
OTHER PAYABLES (Tables)
OTHER PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
OTHER PAYABLES | |
Schedule of other Payables | December 31, 2022 December 31, 2021 Y-Cloud System upgrade and iteration payables $ 1,879,673 $ - Security account set up fee-Staff 486,135 306,270 $ 2,365,808 $ 306,270 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Yueshang Information Technology (Beijing) Co., Ltd. ("YITB") [Member] | |
Attributable equity interest | 100% |
Place of incorporation | P.R.C |
WeTrade Information Technology Limited [Member] | |
Attributable equity interest | 100% |
Place of incorporation | Hong Kong |
Yueshang Group Network (Hunan) Co., Limited ("Yueshang Hunan") [Member] | |
Attributable equity interest | 100% |
Place of incorporation | P.R.C |
WeTrade Digital (Beijing) Technology Co Limited [Member] | |
Attributable equity interest | 100% |
Place of incorporation | P.R.C |
Tibet XiaoShang Technology Co Limited (Tibet Xiaoshang) [Member] | |
Attributable equity interest | 100% |
Place of incorporation | P.R.C |
Shanghai Yueshang Information Technology Limited [Member] | |
Attributable equity interest | 100% |
Place of incorporation | P.R.C |
Utour Pte Ltd [Member] | |
Attributable equity interest | 100% |
Place of incorporation | Singapore |
Yueshang Technology Group (Zhuhai) Limited [Member] | |
Attributable equity interest | 100% |
Place of incorporation | P.R.C |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) | Dec. 31, 2022 | Dec. 31, 2021 |
RMB [Member] | ||
Exchange rate | 6.9 | 6.36 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Net (Loss)/ Income | $ (9,147,415) | $ 5,175,675 |
Weighted-average common shares outstanding - basic and diluted | 223,259,181 | 305,451,498 |
Net (loss) / profit per share, basic and diluted | $ (0.04) | $ 0.02 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Jul. 21, 2022 shares | |
Accounts receivable from customers | $ | $ 7,377,801 | $ 9,230,865 | |
Common stock, shares par value | $ / shares | $ 0 | $ 0 | |
Common stock, shares issued | 195,057,503 | 305,451,498 | 195,032,503 |
Common stock, shares outstanding | 195,057,503 | 305,451,498 | |
Sotware developments [Member] | |||
Intangible assets, estimated useful lives | 5 years | 5 years | |
RMB [Member] | |||
Exchange rate | 6.9 | 6.36 | |
Average exchange rate | 6.75 | 6.44 |
REVENUE (Details)
REVENUE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
REVENUE | ||
Non-related party | $ 327,183,593 | $ 292,177,817 |
Related party | 26,291,122 | 139,359,179 |
Total | $ 353,474,715 | $ 431,536,996 |
REVENUE (Details Narrative)
REVENUE (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
REVENUE | ||
System Services Fees From Related Party, Description | We receive 2%-3.5% of the total Gross Merchandise Volume generated in the platform as a system service fee from YCloud users through service agreement with our customers (such as Weijiafu and Changtongfu), depending on the type of service and industry. | |
Service Revenue, related Party | $ 868,103 | $ 4,646,329 |
Service revenue from third party | 10,803,232 | 9,734,966 |
Service revenue from YCloud service | $ 11,671,335 | $ 14,381,295 |
CASH AND CASH EQUIVALENTS (Deta
CASH AND CASH EQUIVALENTS (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Bank Deposits | $ 20,025,495 | $ 616,593 |
Bank Deposits - Outside USA [Member] | ||
Bank Deposits | 20,002,569 | 616,593 |
Bank Deposits - USA [Member] | ||
Bank Deposits | $ 22,926 | $ 0 |
CASH AND CASH EQUIVALENTS (De_2
CASH AND CASH EQUIVALENTS (Details Narrative) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
CASH AND CASH EQUIVALENTS | ||
Cash in bank | $ 20,025,495 | $ 616,593 |
INTANGIBLE ASSET, NET (Details)
INTANGIBLE ASSET, NET (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible assets, Net carrying amount | $ 23,188 | $ 37,765 |
Sotware developments [Member] | ||
Intangible assets, Gross carrying amount | 57,143 | 57,143 |
Intangible assets, Accumulated amortization | (36,347) | (25,176) |
Intangible assets, Net carrying amount | $ 20,796 | $ 31,967 |
Intangible assets, Weighted average useful lives | 5 years | 5 years |
Total [Member] | ||
Intangible assets, Gross carrying amount | $ 57,143 | $ 57,143 |
Intangible assets, Accumulated amortization | (36,347) | (25,176) |
Intangible assets, Net carrying amount | 23,188 | 37,765 |
Foreign Currency Translation Adjustment [Member] | ||
Intangible assets, Gross carrying amount | 0 | 0 |
Intangible assets, Accumulated amortization | 0 | 0 |
Intangible assets, Net carrying amount | $ 2,392 | $ 5,798 |
INTANGIBLE ASSET, NET (Details
INTANGIBLE ASSET, NET (Details 1) | Dec. 31, 2022 USD ($) |
Fiscal years: | |
Remaining 2023 | $ 14,577 |
2024 | $ 8,611 |
INTANGIBLE ASSET, NET (Detail_2
INTANGIBLE ASSET, NET (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible assets, amortization expense | $ 14,577 | $ 12,519 |
Sotware developments [Member] | ||
Intangible assets, estimated useful lives | 5 years | 5 years |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Property and equipment, Net carrying amount | $ 992,445 | $ 395,353 |
Office Equipment [Member] | ||
Office equipment | 865,623 | 150,915 |
Leasehold improvement | 246,643 | 267,791 |
Property and equipment, Gross carrying amount | 1,112,266 | 418,706 |
Property and equipment, Accumulated amortization | (119,821) | (23,353) |
Property and equipment, Net carrying amount | $ 992,445 | $ 395,353 |
PROPERTY AND EQUIPMENT, NET (_2
PROPERTY AND EQUIPMENT, NET (Details 1) - Office Renovation [Member] - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Amortised expenses | $ 995,775 | $ 0 |
Less: Accumulated depreciation | (166,792) | 0 |
Amortised expenses, net | $ 828,983 | $ 0 |
PROPERTY AND EQUIPMENT, NET (_3
PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Office Equipment [Member] | ||
Depreciation | $ 96,468 | $ 23,353 |
Office Renovation One [Member] | ||
Depreciation | 166,792 | $ 0 |
Amortization expenses | 995,775 | |
Leasehold Improvement [Member] | ||
Amortization expenses | $ 693,560 |
ACCOUNT RECEIVABLES, NET (Detai
ACCOUNT RECEIVABLES, NET (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
ACCOUNT RECEIVABLES, NET | ||
Account Receivables- Non related party | $ 6,828,195 | $ 5,627,463 |
Account Receivables- Related party | 549,606 | 3,603,402 |
Total accounts receivables | $ 7,377,801 | $ 9,230,865 |
ACCOUNT RECEIVABLES, NET (Det_2
ACCOUNT RECEIVABLES, NET (Details Narrative) | Dec. 31, 2022 USD ($) integer | Dec. 31, 2021 USD ($) integer |
ACCOUNT RECEIVABLES, NET | ||
Accounts Receivable Non related customer | $ 6,828,195 | $ 5,627,463 |
Accounts Receivable | $ 549,606 | $ 3,603,402 |
Number of customer | integer | 4 | 1 |
LOAN RECEIVABLE (Details)
LOAN RECEIVABLE (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Loans Receivable [Member] | ||
Loan receivables | $ 1,614,841 | $ 3,798,130 |
LOAN RECEIVABLE (Details 1)
LOAN RECEIVABLE (Details 1) - Accounts Receivable [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Principal | $ 1,614,841 | $ 3,630,504 |
Accrued interest | 0 | 167,626 |
Total | $ 1,614,841 | $ 3,798,130 |
LOAN RECEIVABLE (Details Narrat
LOAN RECEIVABLE (Details Narrative) ¥ in Millions | 12 Months Ended |
Dec. 31, 2022 CNY (¥) | |
LOAN RECEIVABLE | |
Maturity date | August 31, 2023 |
Accrued interest for the loan | ¥ 23 |
OTHER RECEIVABLES (Details)
OTHER RECEIVABLES (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
OTHER RECEIVABLES | ||
Advances to staff | $ 50,839 | $ 19,302 |
Others | 0 | 10,845 |
Other receivables | $ 50,839 | $ 30,147 |
OTHER RECEIVABLES (Details 1)
OTHER RECEIVABLES (Details 1) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
OTHER RECEIVABLES | ||
Rental deposit | $ 240,202 | $ 0 |
PREPAYMENTS (Details)
PREPAYMENTS (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Prepayments | $ 13,160,932 | $ 2,760,658 |
Office furniture [Member] | ||
Prepayments | 0 | 1,895,591 |
Office Rental [Member] | ||
Prepayments | 0 | 173,611 |
Software development fee- Non current [Member] | ||
Prepayments | 10,000,000 | |
Software development fee- Current [Member] | ||
Prepayments | 2,580,416 | 61,165 |
Block chain software and annual fee [Member] | ||
Prepayments | $ 580,516 | $ 630,291 |
PREPAYMENTS (Details 1)
PREPAYMENTS (Details 1) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
System Development Of Y CLoud System Upgrade Software Development [Member] | ||
Prepayment | $ 1,914,515 | $ 0 |
PREPAYMENTS (Details Narrative)
PREPAYMENTS (Details Narrative) $ in Millions | Dec. 31, 2022 USD ($) |
System Development Of Y CLoud System Upgrade Software Development [Member] | |
Prepayments | $ 1.9 |
System development of WT Pay, Block-Chain software development [Member] | |
Prepayments | $ 10 |
RENTAL DEPOSIT-RELATED PARTIES
RENTAL DEPOSIT-RELATED PARTIES (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Jul. 01, 2022 | Dec. 31, 2021 | |
RENTAL DEPOSIT-RELATED PARTIES | |||
Rental deposit | $ 0 | $ 272,063 | |
Tenancy period | 5 years | ||
Right of use asset and the lease liabilty | $ 209,402 |
AMOUNT DUE TO RELATED PARTIES_2
AMOUNT DUE TO RELATED PARTIES (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
AMOUNT DUE TO RELATED PARTIES | ||
Related parties payable | $ 521,296 | $ 745,532 |
Director fee payable | 770,000 | 360,000 |
Amount due to related parties | $ 1,291,296 | $ 1,105,532 |
AMOUNT DUE TO RELATED PARTIES_3
AMOUNT DUE TO RELATED PARTIES (Details Narrative) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Related party payable | $ 521,296 | $ 745,532 |
Director fee payable | 770,000 | $ 360,000 |
Director [Member] | ||
Related party payable | 521,296 | |
Che Kean Tat [Member] | ||
Related party payable | 10,000 | |
Li Zhuo [Member] | ||
Related party payable | 42,000 | |
Liu Pijun [Member] | ||
Related party payable | 209,098 | |
Dai Zheng [Member] | ||
Related party loan | $ 260,198 |
TAX PAYABLES (Details)
TAX PAYABLES (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
TAX PAYABLES | ||
Corporate income tax | $ 0 | $ 649,032 |
VAT, Urban construction tax and levies | 128,979 | 62,809 |
Total | $ 128,979 | $ 711,841 |
TAX PAYABLES (Details Narrative
TAX PAYABLES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Tax payables | $ 128,979 | $ 711,841 |
Minimum [Member] | ||
VAT rate | 6% | |
Income tax rate | 15% | |
Maximum [Member] | ||
VAT rate | 13% | |
Income tax rate | 25% |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Accrued expenses | $ 298,595 | $ 217,073 |
Accrued Payroll [Member] | ||
Accrued expenses | $ 298,595 | $ 217,073 |
ACCRUED EXPENSES (Details Narra
ACCRUED EXPENSES (Details Narrative) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
ACCRUED EXPENSES | ||
Accrued expenses | $ 298,595 | $ 217,073 |
OTHER PAYABLES (Details)
OTHER PAYABLES (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Other payables | $ 2,365,808 | $ 306,270 |
Security Account Eet up Fee-Staff [Member] | ||
Other payables | 486,135 | 306,270 |
Y-Cloud System Upgrade and Iteration Payables [Member] | ||
Other payables | $ 1,879,673 | $ 0 |
OTHER PAYABLES (Details Narrati
OTHER PAYABLES (Details Narrative) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
OTHER PAYABLES | ||
Other payables | $ 2,365,808 | $ 306,270 |
EQUITY (Details Narrative)
EQUITY (Details Narrative) | 1 Months Ended | ||||||||||||
Apr. 13, 2022 shares | Jul. 10, 2020 $ / shares shares | Sep. 03, 2019 shares | Jul. 22, 2022 USD ($) shares | Sep. 21, 2020 integer $ / shares shares | Sep. 15, 2020 shares | Feb. 29, 2020 integer $ / shares shares | Mar. 29, 2019 $ / shares shares | Dec. 31, 2022 shares | Jul. 31, 2022 USD ($) $ / shares shares | Jul. 21, 2022 shares | Dec. 31, 2021 shares | Dec. 31, 2019 shares | |
Common stock, shares issued | 195,057,503 | 195,032,503 | 305,451,498 | ||||||||||
Common stock, shares outstanding | 195,057,503 | 305,451,498 | |||||||||||
Shares issued for service, value | $ | $ 477,500 | ||||||||||||
Per share value | $ / shares | $ 4 | ||||||||||||
Gross proceeds | $ | $ 40,000,000 | ||||||||||||
Net of fees | $ | 37,057,176 | ||||||||||||
Total offering cost | $ | $ 2,942,824 | ||||||||||||
July 10 2022 [Member] | |||||||||||||
Common stock, shares issued | 26,000 | 25,000 | |||||||||||
Common stock, shares outstanding | 101,766,666 | ||||||||||||
Shares issued for service, value | $ / shares | $ 3 | ||||||||||||
Shareholders [Member] | |||||||||||||
Common stock, shares outstanding | 305,451,498 | ||||||||||||
Common stock, shares issued | 151,500 | 1,666,666 | |||||||||||
Per share value | $ / shares | $ 5 | $ 3 | |||||||||||
Number of shareholder | integer | 303 | 2 | |||||||||||
Founders [Member] | |||||||||||||
Per share value | $ / shares | $ 3 | ||||||||||||
Common stock, shares issued | 100,000,000 | ||||||||||||
5 non-US shareholders [Member] | |||||||||||||
Common stock, shares issued | 74,000 | ||||||||||||
Share Exchange Agreement [Member] | |||||||||||||
Common stock, shares outstanding | 305,451,498 | 185,032,503 | 100,074,000 | ||||||||||
Cancelled shares | 120,418,995 | ||||||||||||
IPO [Member] | |||||||||||||
Common stock, shares issued | 10,000,000 | ||||||||||||
Minimum [Member] | |||||||||||||
Increase in common stock outstanding | 101,766,666 | ||||||||||||
Maximum [Member] | Certificate Of Amendment [Member] | |||||||||||||
Increase in common stock outstanding | 305,299,998 | ||||||||||||
Stock split, description | 3 for 1 forward stock split | ||||||||||||
Commom Stock [Member] | |||||||||||||
Common stock, shares outstanding | 195,057,503 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 12 Months Ended |
Dec. 31, 2022 | |
Maximum [Member] | |
Income tax rate | 25% |
Minimum [Member] | |
Income tax rate | 15% |
China [Member] | Maximum [Member] | |
Corporate income tax rate | 25% |
China [Member] | Minimum [Member] | |
Corporate income tax rate | 15% |
Hong Kong [Member] | |
Income tax rate | 16.50% |
Singapore [Member] | |
Income tax rate | 17% |
SUBSEQUENT EVENT (Details Narra
SUBSEQUENT EVENT (Details Narrative) | Jun. 09, 2023 |
Subsequent Events [Member] | |
Description related to certificate of amendement | the Wyoming Secretary of State approved the Company’s certificate of amendment to amend its Articles of Incorporation to effect 1 for 185 reverse stock split. The total issued and outstanding shares of the Company’s common stock decreased from 195,057,503 to 1,054,364 shares, with the par value unchanged at zero |