Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 17, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-41037 | |
Entity Registrant Name | SOCIETY PASS INCORPORATED | |
Entity Central Index Key | 0001817511 | |
Entity Tax Identification Number | 83-1019155 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 701 S. Carson Street | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | Carson City | |
Entity Address, State or Province | NV | |
Entity Address, Postal Zip Code | 89701 | |
City Area Code | +65 | |
Local Phone Number | 6518-9382 | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | SOPA | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 25,375,174 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 28,012,846 | $ 23,264,777 |
Accounts receivable, net | 51,891 | 52,588 |
Inventories, net | 336,476 | 221,068 |
Deposits, prepayments and other receivables | 4,549,753 | 6,094,254 |
Total current assets | 32,950,966 | 29,632,687 |
Non-current assets: | ||
Deposits, prepayments and other receivables | 858,667 | |
Intangible assets, net | 3,284,230 | 4,000,000 |
Goodwill | 454,519 | |
Property, plant and equipment, net | 96,713 | 57,035 |
Right of use assets, net | 710,586 | 627,968 |
Total non-current assets | 4,546,048 | 5,543,670 |
TOTAL ASSETS | 37,497,014 | 35,176,357 |
Current liabilities: | ||
Accounts payables | 903,715 | 261,907 |
Contract liabilities | 4,618 | 25,229 |
Accrued liabilities and other payables | 1,271,656 | 813,598 |
Due to related parties | 22,822 | 524,763 |
Operating lease liabilities | 292,968 | 218,077 |
Due to first insurance funding | 148,137 | 596,047 |
Loan | 63,460 | |
Total current liabilities | 2,707,376 | 2,439,621 |
Non-current liabilities | ||
Operating lease liabilities | 426,650 | 411,053 |
TOTAL LIABILITIES | 3,134,026 | 2,850,674 |
COMMITMENTS AND CONTINGENCIES | ||
Convertible preferred shares; $0.0001 par value, 5,000,000 shares authorized, 4,916,500 and 4,916,500 shares undesignated as of June 30, 2022 and December 31, 2021, respectively | ||
EQUITY (DEFICIT) | ||
Common shares; $0.0001 par value, 95,000,000 shares authorized; 24,544,443 and 19,732,406 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively | 2,454 | 1,973 |
Additional paid-in capital | 96,026,414 | 79,833,290 |
Accumulated other comprehensive loss | (35,997) | (54,340) |
Accumulated deficit | (61,405,158) | (47,352,456) |
Total equity attributable to Society Pass Incorporated | 34,587,713 | 32,428,467 |
Non-controlling interest | (224,725) | (102,784) |
TOTAL EQUITY | 34,362,988 | 32,325,683 |
TOTAL LIABILITIES AND EQUITY | 37,497,014 | 35,176,357 |
Series A Preferred Stock [Member] | ||
COMMITMENTS AND CONTINGENCIES | ||
Preferred stock, value | ||
Series B Preferred Stock [Member] | ||
COMMITMENTS AND CONTINGENCIES | ||
Preferred stock, value | ||
Series B1 Preferred Stock [Member] | ||
COMMITMENTS AND CONTINGENCIES | ||
Preferred stock, value | ||
Series C Preferred Stock [Member] | ||
COMMITMENTS AND CONTINGENCIES | ||
Preferred stock, value | ||
Series C 1 Preferred Stock [Member] | ||
COMMITMENTS AND CONTINGENCIES | ||
Preferred stock, value | ||
Series X Preferred Stock [Member] | ||
COMMITMENTS AND CONTINGENCIES | ||
Preferred stock, value |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding | 4,916,500 | 4,916,500 |
Preferred stock, shares issued | 4,916,500 | 4,916,500 |
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 95,000,000 | 95,000,000 |
Common stock, shares outstanding | 24,544,443 | 19,732,406 |
Common stock, shares issued | 24,544,443 | 19,732,406 |
Series A Preferred Stock [Member] | ||
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, shares outstanding | 0 | 0 |
Preferred stock, shares issued | 0 | 0 |
Series B Preferred Stock [Member] | ||
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, shares outstanding | 0 | 0 |
Preferred stock, shares issued | 0 | 0 |
Series B1 Preferred Stock [Member] | ||
Preferred stock, shares authorized | 15,000 | 15,000 |
Preferred stock, shares outstanding | 0 | 0 |
Preferred stock, shares issued | 0 | 0 |
Series C Preferred Stock [Member] | ||
Preferred stock, shares authorized | 15,000 | 15,000 |
Preferred stock, shares outstanding | 0 | 0 |
Preferred stock, shares issued | 0 | 0 |
Series C 1 Preferred Stock [Member] | ||
Preferred stock, shares authorized | 30,000 | 30,000 |
Preferred stock, shares outstanding | 0 | 0 |
Preferred stock, shares issued | 0 | 0 |
Series X Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 3,500 | 3,500 |
Preferred stock, shares outstanding | 3,500 | 3,500 |
Preferred stock, shares issued | 3,500 | 3,500 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE LOSS (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue, net | ||||
Total revenue | $ 499,062 | $ 7,783 | $ 944,152 | $ 17,289 |
Cost of sales: | ||||
Total cost of revenue | (499,200) | (86,562) | (959,083) | (104,857) |
Gross loss | (138) | (78,779) | (14,931) | (87,568) |
Operating expenses: | ||||
Sales and marketing expenses | (253,290) | (41,284) | (449,392) | (42,184) |
Software development costs | (17,320) | (36,828) | (36,868) | (66,989) |
Impairment loss | (528,583) | (200,000) | ||
General and administrative expenses | (7,345,364) | (4,167,802) | (13,186,062) | (6,121,899) |
Total operating expenses | (7,615,974) | (4,245,914) | (14,200,905) | (6,431,072) |
Loss from operations | (7,616,112) | (4,324,693) | (14,215,836) | (6,518,640) |
Other income (expense): | ||||
Interest income | 6,027 | 10 | 6,072 | 16 |
Interest expense | (384) | (12,157) | (4,429) | (24,214) |
Loss on settlement of litigation | (550,000) | |||
Other income | 24,672 | 992 | 38,293 | 1,747 |
Total other expense | 30,315 | (11,155) | 39,936 | (572,451) |
Loss before income taxes | (7,585,797) | (4,335,848) | (14,175,900) | (7,091,091) |
Income taxes | (797) | (6,903) | (2,099) | (8,640) |
Net loss | (7,586,594) | (4,342,751) | (14,177,999) | (7,099,731) |
Net loss attributable to non-controlling interest | (82,270) | (125,297) | ||
NET LOSS ATTRIBUTABLE TO SOCIETY PASS INCORPORATED | (7,504,324) | (4,342,751) | (14,052,702) | (7,099,731) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 66,875 | (6,583) | 21,699 | 26,899 |
COMPREHENSIVE LOSS | (7,519,719) | (4,349,334) | (14,156,300) | (7,072,832) |
Foreign currency translation adjustment attributable to non-controlling interest | 6,371 | 3,356 | ||
Comprehensive loss attributable to Society Pass Incorporated | $ (7,443,820) | $ (4,349,334) | $ (14,034,359) | $ (7,072,832) |
Net loss per share attributable to Society Pass Incorporated : | ||||
– Basic | $ (0.31) | $ (0.59) | $ (0.61) | $ (0.96) |
– Diluted | $ (0.31) | $ (0.59) | $ (0.61) | $ (0.96) |
Weighted average common shares outstanding: | ||||
– Basic | 24,347,607 | 7,413,600 | 23,126,643 | 7,413,600 |
– Diluted | 24,347,607 | 7,413,600 | 23,126,643 | 7,413,600 |
Sales Online Ordering [Member] | ||||
Revenue, net | ||||
Total revenue | $ 482,410 | $ 916,551 | ||
Cost of sales: | ||||
Total cost of revenue | (456,968) | (852,858) | ||
Sales Data [Member] | ||||
Revenue, net | ||||
Total revenue | 5,642 | 5,642 | ||
Cost of sales: | ||||
Total cost of revenue | ||||
Software Sales [Member] | ||||
Revenue, net | ||||
Total revenue | 10,941 | 7,714 | 21,890 | 16,954 |
Cost of sales: | ||||
Total cost of revenue | (41,212) | (86,498) | (105,205) | (104,692) |
Hardware Sales [Member] | ||||
Revenue, net | ||||
Total revenue | 69 | 69 | 69 | 335 |
Cost of sales: | ||||
Total cost of revenue | (45) | $ (64) | (45) | $ (165) |
Cost Of Data [Member] | ||||
Cost of sales: | ||||
Total cost of revenue | $ (975) | $ (975) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT) (Unaudited) - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Total |
Beginning balance, value at Dec. 31, 2020 | $ 1,854 | $ 2,225,921 | $ (55,236) | $ (12,587,311) | $ (10,414,772) | ||
Beginning balance, shares at Dec. 31, 2020 | 18,534,000 | ||||||
Imputed interest | 11,994 | 11,994 | |||||
Foreign currency translation adjustment | 33,482 | 33,482 | |||||
Net loss for the period | (2,756,980) | (2,756,980) | |||||
Ending balance, value at Mar. 31, 2021 | $ 1,854 | 2,237,915 | (21,754) | (15,344,291) | (13,126,276) | ||
Ending balance, shares at Mar. 31, 2021 | 18,534,000 | ||||||
Imputed interest | 12,126 | 12,126 | |||||
Stock-based compensation | 2,894,075 | 2,894,075 | |||||
Foreign currency translation adjustment | (6,583) | (6,583) | |||||
Net loss for the period | (4,342,751) | (4,342,751) | |||||
Ending balance, value at Jun. 30, 2021 | $ 1,854 | 5,144,116 | (28,337) | (19,687,042) | (14,569,409) | ||
Ending balance, shares at Jun. 30, 2021 | 18,534,000 | ||||||
Beginning balance, value at Dec. 31, 2021 | $ 1,973 | 79,833,290 | (54,340) | (47,352,456) | (102,784) | 32,325,683 | |
Beginning balance, shares at Dec. 31, 2021 | 3,500 | 19,732,406 | |||||
Shares issued for services | $ 11 | 1,632,162 | 1,632,173 | ||||
Shares issued for services, shares | 116,000 | ||||||
Shares issued for accrued salaries | $ 3 | 86,466 | 86,469 | ||||
Shares issued for accrued salaries, shares | 25,444 | ||||||
Sale of units in public offering (net of expense) | $ 348 | 10,402,543 | 10,402,891 | ||||
Sale of units in initial public offering (net of expense), shares | 3,484,845 | ||||||
Shares issued to for the business acquisition of Gorilla Group | $ 23 | 799,977 | 800,000 | ||||
Shares issued to acquire subsidiary, shares | 226,629 | ||||||
Share issued upon the exercise of warrant | $ 16 | 356,984 | 357,000 | ||||
Share issued upon the exercise of warrant, shares | 160,000 | ||||||
Share issued for accrued services | $ 1 | 119,456 | 119,457 | ||||
Share issued for accrued services, shares | 13,273 | ||||||
Fair value of stock option granted for director’s bonus | 303,990 | 303,990 | |||||
Shares issued to acquire non-controlling interest | 22,470 | 22,470 | |||||
Shares from non-controlling interest, shares | 2,497 | ||||||
Foreign currency translation adjustment | (42,161) | (3,015) | (45,176) | ||||
Net loss for the period | (6,548,378) | (43,027) | (6,591,405) | ||||
Ending balance, value at Mar. 31, 2022 | $ 2,375 | 93,557,338 | (96,501) | (53,900,834) | (148,826) | 39,413,552 | |
Ending balance, shares at Mar. 31, 2022 | 3,500 | 23,761,094 | |||||
Shares issued for services | $ 37 | 1,694,702 | 1,694,739 | ||||
Shares issued for services, shares | 370,000 | ||||||
Shares issued for accrued salaries | $ 3 | 61,747 | 61,750 | ||||
Shares issued for accrued salaries, shares | 29,353 | ||||||
Shares issued for director’s remuneration | $ 32 | 899,964 | 899,996 | ||||
Shares issued for director's remuneration, shares | 316,092 | ||||||
Shares issued to for the business acquisition of Gorilla Group | $ 4 | 83,236 | 83,240 | ||||
Shares issued to acquire subsidiary, shares | 40,604 | ||||||
Share issued upon the exercise of warrant | $ 3 | 55,887 | 55,890 | ||||
Share issued upon the exercise of warrant, shares | 27,300 | ||||||
Fair value of stock option granted for director’s bonus | (303,990) | (303,990) | |||||
Shares issued to acquire non-controlling interest | (22,470) | (22,470) | |||||
Foreign currency translation adjustment | 60,504 | 6,371 | 66,875 | ||||
Net loss for the period | (7,504,324) | (82,270) | (7,586,594) | ||||
Ending balance, value at Jun. 30, 2022 | $ 2,454 | $ 96,026,414 | $ (35,997) | $ (61,405,158) | $ (224,725) | $ 34,362,988 | |
Ending balance, shares at Jun. 30, 2022 | 3,500 | 24,544,443 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (14,177,999) | $ (7,099,731) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization | 1,614,617 | 1,604,451 |
Impairment loss | 528,583 | 200,000 |
Imputed interest | 24,120 | |
Financing charges – first insurance funding | 4,429 | |
Loss on settlement of litigation | 550,000 | |
Stock based compensation for services | 4,208,568 | 3,507,275 |
Change in operating assets and liabilities: | ||
Accounts receivable | 8,699 | (38) |
Inventories | (111,060) | |
Deposits, prepayments and other receivables | 2,470,800 | (1,689) |
Contract liabilities | (20,611) | (15,262) |
Accounts payables | 104,097 | 10,793 |
Accrued liabilities and other payables | 436,712 | (517,929) |
Advances to related parties | (502,014) | 225,000 |
Right of use assets | 139,420 | 17,819 |
Operating lease liabilities | (152,715) | (18,529) |
Net cash used in operating activities | (5,448,474) | (1,513,720) |
Cash flows from investing activities: | ||
Purchase of investment assets | (200,000) | |
Purchase of property, plant, and equipment | (58,901) | |
Purchase of subsidiary | (200,000) | |
Cash from purchase subsidiary | 31,028 | |
Net cash used in investing activities | (227,873) | (200,000) |
Cash flows from financing activities: | ||
Proceeds from the issuance of preferred stock and exercise of warrants into preferred stock | 412,890 | 1,322,505 |
Proceeds from public offering, net of offering expenses | 10,402,891 | |
Repayment of loan | (464,368) | |
Net cash provided by financing activities | 10,351,413 | 1,322,505 |
Effect on exchange rate change on cash and cash equivalents | 73,003 | 27,182 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 4,748,069 | (364,033) |
CASH AND CASH EQUIVALENT AT BEGINNING OF YEAR | 23,264,777 | 506,666 |
CASH AND CASH EQUIVALENT AT END OF PERIOD | 28,012,846 | 142,633 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 94 | |
Cash paid for income tax | ||
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Common stock issued for accrued salaries | 209,969 | |
Shares issued to acquire subsidiary | 883,240 | |
Shares issued for accrued services | 119,457 | |
Impact of adoption of ASC Topic 842 - lease obligation and ROU asset | 243,186 | |
Purchase consideration accrued for asset purchase transactions | 160,000 | |
Preferred stock issued but amount collected subsequently | $ 251,250 |
DESCRIPTION OF BUSINESS AND ORG
DESCRIPTION OF BUSINESS AND ORGANIZATION | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
DESCRIPTION OF BUSINESS AND ORGANIZATION | NOTE-1 DESCRIPTION OF BUSINESS AND ORGANIZATION Society Pass Incorporated (the “Company”) is incorporated in State of Nevada on June 22, 2018 under the name of Food Society Inc. On October 3, 2018, the Company changed its company name to Society Pass Incorporated. The Company through its subsidiaries, mainly sells and distributes the hardware and software of Point of Sales (POS) application in Vietnam. The Company also has online lifestyle platform to enable the consumers to purchase high-end brands of all categories under its own brand name of “Leflair”. In February 2022, the Company completed the acquisition of 100% equity interest of New Retail Experience Incorporated and Dream Space Trading Company Limited through its subsidiary, mainly provide on-line Grocery and food delivery platform in Philippines and Vietnam respectively. In May 2022, the Company completed another acquisition of 100% equity interest of Gorilla Networks Pte Ltd, Gorilla Mobile Pte Ltd, Gorilla Connects Pte Ltd and Gorilla Networks (VN) Co Ltd. On February 10, 2021, the Company effected a 750 for 1 On September 21, 2021, the Company effected a 1 for 2.5 An additional result of the stock split was that the stated value of preferred stock, the number of designated shares and outstanding shares of each series of preferred stock was unchanged in accordance to the respective certificate of designations. The number of authorized shares of preferred stock remained unchanged. The registration statement for the Company’s Initial Public Offering became effective on November 8, 2021. On November 8, 2021, the Company entered into an underwriting agreement with Maxim Group LLC, related to the offering of 2,888,889 9.00 236,111 26,000,001 2,124,999 On February 8, 2022, the Company entered into an underwriting agreement (the “Underwriting Agreement”) with Maxim Group LLC (the “Underwriter”), related to the offering of 3,030,300 shares (the “Shares”) of the Company’s common stock and warrants to purchase up to 3,030,300 shares of common stock of the Company (the “Warrants”). Each Share is being sold together with one Warrant to purchase one Share at a combined offering price of $ 3.30 . In addition, the Company granted the Underwriter a 45-day over-allotment option to purchase up to an additional 454,545 Shares and/or Warrants, at the public offering price, less discounts and commissions. On February 10, 2022, the Underwriter gave notice to the Company of the full exercise of their over-allotment option and that delivery of the overallotment securities has made on February 11, 2022. Description of subsidiaries incorporated or acquired by the Company Schedule of Description of subsidiaries Schedule of Description of subsidiaries Name Place and date of incorporation Principal activities Particulars of registered/ paid up share capital Effective interest held Society Technology LLC State of Nevada January 24, 2019 IP Licensing US$1 100 % SOPA Cognitive Analytics Private Limited India February 5, 2019 Computer sciences consultancy and data analytics INR 1,238,470 100 % SOPA Technology Pte. Ltd. Singapore June 4, 2019 Investment holding SGD 1,250,000 95 % SOPA Technology Company Limited Vietnam October 1, 2019 Software production Registered: VND 2,307,300,000; 100 % Hottab Pte Ltd. (HPL) Singapore January 17, 2015 Software development and marketing for the F&B industry SGD 620,287.75 100 % Hottab Vietnam Co. Ltd Vietnam April 17, 2015 Sale of POS hardware and software VND 1,000,000,000 100 % Hottab Asset Company Limited Vietnam July 25, 2019 Sale of POS hardware and software VND 5,000,000,000 100 % Leflair Incorporated United States December 07, 2021 Investment holding US$ 1 100 % SOPA Capital Limited United Kingdom December 07, 2021 Investment holding GBP 1 100 % SOPA (Phil) Incorporated Philippines Jan 11, 2022 Investment holding PHP 11,000,000 100 % New Retail Experience Incorporated Philippines Jan 16, 2020 On-line Grocery delivery platform PHP 3,750,000 100 % Dream Space Trading Co Ltd Vietnam May 23, 2018 On-line Grocery and food delivery platform VND 500,000,000 100 % Push Delivery Pte Ltd Singapore January 07, 2022 Investment holding US$ 2,000 100 % Gorilla Networks Pte. Ltd. Singapore September 3, 2019 Investment holding US$ 2,620,000 and SGD 730,000 100 % Gorilla Connect Pte. Ltd. Singapore May 18, 2022 Telecommunication resellers SGD 100 100 % Gorilla Mobile Singapore Pte. Ltd. Singapore August 6, 2020 Telecommunication resellers SGD 100 100 % Gorilla Networks (VN) LLC Vietnam December 16, 2020 Telecommunication resellers VND 233,000,000 100 % The Company and its subsidiaries are hereinafter referred to as (the “Company”). |
LIQUIDITY AND CAPITAL RESOURCES
LIQUIDITY AND CAPITAL RESOURCES | 6 Months Ended |
Jun. 30, 2022 | |
Liquidity And Capital Resources | |
LIQUIDITY AND CAPITAL RESOURCES | NOTE-2 LIQUIDITY AND CAPITAL RESOURCES As of June 30, 2022, the Company had cash balances of $ 28,012,846 30,243,590 61,405,158 14,177,999 5,448,474 227,873 10,351,413 10,402,891 412,890 464,368 The Company believes that it will be able to continue to grow the Company’s revenue base and control expenditures, there is no assurance. In parallel, the Company continually monitors its capital structure and operating plans and evaluates various potential funding alternatives that may be needed in order to finance the Company’s business development activities, general and administrative expenses and growth strategy. COVID-19 (Delta and Omicron variants) Due to the current or future resurgence of the pandemic (including the potential emergence of new and more transmissible variants, such as the Delta and Omicron variants), it has significantly impacted health and economic conditions throughout Vietnam, Indonesia, Philippines, Singapore and Southeast Asia. National, regional and local governments took a variety of actions to contain the spread of COVID-19, including office and store closures, quarantining suspected COVID-19 patients, and capacity limitations. These developments have significantly impacted the results of operations, financial condition and cash flows of the Company included in this reporting. The impact included the difficulties of working remotely from home including slow Internet connection, the inability of our accounting and financial officers to collaborate as effectively as they would otherwise have in an office environment and issues arising from mandatory state quarantines. While it is not possible at this time to estimate with sufficient certainty the impact that COVID-19 could have on the Company’s business, the continued spread of COVID-19 and the measures taken by federal, state, local and foreign governments could disrupt the operation of the Company’s business. The COVID-19 outbreak and mitigation measures have also had and may continue to have an adverse impact on global and domestic economic conditions, which could have an adverse effect on the Company’s business and financial condition, including on its potential to conduct financings on terms acceptable to the Company, if at all. In addition, the Company has taken temporary precautionary measures intended to help minimize the risk of the virus to its employees, by following local safe management measures, which may negatively affect the Company’s business. These measures are continuing but lightened. The extent to which the COVID-19 outbreak impacts the Company’s results will depend on future developments that are highly uncertain and cannot be predicted, including new information that may emerge concerning the severity of the virus and the actions to contain its impact. The Russian-Ukraine war and the supply chain disruption have not affected any specific segment of our business. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE-3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited condensed consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying condensed consolidated financial statements and notes. • Basis of presentation The Company has prepared the accompanying condensed financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. These financial statements are unaudited and, in our opinion, include all adjustments consisting of normal recurring adjustments and accruals necessary for a fair presentation of our condensed balance sheets, statements of operations and other comprehensive loss, statements of stockholders’ deficit and cash flows for the periods presented. Operating results for the periods presented are not necessarily indicative of the results that may be expected for 2022 due to various factors. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been omitted in accordance with the rules and regulations of the SEC. These condensed financial statements should be read in conjunction with the 2021 audited financial statements and accompanying notes filed with the SEC. • Emerging Growth Company We are an “emerging growth company” under the JOBS Act. For as long as we are an “emerging growth company,” we are not required to: (i) comply with any new or revised financial accounting standards that have different effective dates for public and private companies until those standards would otherwise apply to private companies, (ii) provide an auditor’s attestation report on management’s assessment of the effectiveness of internal control over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act, (iii) comply with any new requirements adopted by the Public Company Accounting Oversight Board (“PCAOB”) or a supplement to the auditor’s report in which the auditor would be required to provide additional information about the audit and the financial statements of the issuer or (iv) comply with any new audit rules adopted by the PCAOB after April 5, 2012, unless the SEC determines otherwise. However, we have elected to “opt out” of the extended transition period discussed in (i) and will therefore comply with new or revised accounting standards on the applicable dates on which the adoption of such standards are required for non-emerging growth companies. Section 107 of the JOBS Act provides that our decision to opt out of such extended transition period for compliance with new or revised accounting standards is irrevocable. • Use of estimates and assumptions In preparing these condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheet and revenues and expenses during the years reported. Actual results may differ from these estimates. If actual results significantly differ from the Company’s estimates, the Company’s financial condition and results of operations could be materially impacted. Significant estimates in the period include the allowance for doubtful accounts on accounts receivable, incremental borrowing rate used to calculate right of use assets and lease liabilities, valuation and useful lives of intangible assets, valuation of impairment of long-lived assets, valuation of common stock and stock warrants, stock option valuations, imputed interest on due to related parties, inventory valuation, revenue recognition, business acquisition allocation of purchase consideration, and deferred tax valuation allowance. • Basis of consolidation The condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company balances and transactions have been eliminated upon consolidation. • Business Combination The Company follows Accounting Standards Codification (“ASC”) ASC Topic 805, Business Combinations (“ASC 805”) and ASC Topic 810-10-65, Consolidation. ASC Topic 805 requires most identifiable assets, liabilities, non-controlling interests, and goodwill acquired in a business combination to be recorded at “fair value.” The statement applies to all business combinations, including combinations among mutual entities and combinations by contract alone. Under ASC Topic 805, all business combinations are accounted for by applying the acquisition method. Accounting for goodwill requires significant management estimates and judgment. Management performs periodic reviews of the carrying value of goodwill to determine whether events and circumstances indicate that an impairment in value may have occurred. A variety of factors could cause the carrying value of goodwill to become impaired. A write-down of the carrying value of goodwill could result in a non-cash charge, which could have an adverse effect on the Company’s results of operations. • Noncontrolling interest The Company accounts for noncontrolling interest in accordance with ASC Topic 810-10-45, which requires the Company to present noncontrolling interests as a separate component of total shareholders’ equity on the consolidated balance sheets and the consolidated net loss attributable to the its noncontrolling interest be clearly identified and presented on the face of the consolidated statements of operations and comprehensive loss. • Segment Reporting ASC Topic 280, “Segment Reporting” establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organization structure as well as information about geographical areas, business segments and major customers in consolidated financial statements. The Company currently operates in two reportable operating segments: (i) e-commerce, (ii) Merchant POS, (iii) Online Grocery and Food and Groceries Deliveries and (iv) Telecommunications Reseller. • Cash and cash equivalents Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. As of June 30 2022 and December 31, 2021, the cash and cash equivalents amounted to $28,012,846 23,264,777 The Company currently has bank deposits with financial institutions in the U.S. which exceed FDIC insurance limits. FDIC insurance provides protection for bank deposits up to $ 250,000 10,780,926 13,699,082 16,966,211 9,315,695 • Accounts receivable Accounts receivable are recorded at the invoiced amount and do not bear interest, which are due within contractual payment terms, generally 30 to 90 days from completion of service. Credit is extended based on evaluation of a customer’s financial condition, the customer credit-worthiness and their payment history. Accounts receivable outstanding longer than the contractual payment terms are considered past due. Past due balances over 90 days and over a specified amount are reviewed individually for collectibility. At the end of fiscal year, the Company specifically evaluates individual customer’s financial condition, credit history, and the current economic conditions to monitor the progress of the collection of accounts receivables. The Company considers the allowance for doubtful accounts for any estimated losses resulting from the inability of its customers to make required payments. For the receivables that are past due or not being paid according to payment terms, the appropriate actions are taken to exhaust all means of collection, including seeking legal resolution in a court of law. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. As of June 30, 2022 and December 31, 2021, the allowance for doubtful accounts amounted to $- 0 0 • Inventories Inventories are stated at the lower of cost or net realizable value, cost being determined on a first-in-first-out method. Costs include hardware equipment and peripheral costs which are purchased from the Company’s suppliers as merchandized goods. The Company provides inventory allowances based on excess and obsolete inventories determined principally by customer demand. During the three and six months ended June 30, 2022 and 2021, the Company recorded an allowance for obsolete inventories of $- 0 0 336,476 221,068 • Prepaid Expenses Prepaid expenses represent future expenses paid in advance, until the associated benefits are realized, the future expense remains at current asset within the next twelve months and non-current asset after twelve months.. Since prepaid expenses are categorized as “current and non-current” assets, the benefits associated with the products or services paid for upfront are expected to be used for the next twelve months and thereafter. Once the benefits of the assets are gradually realized, the prepaid expense is reduced as the asset is expensed off on the statement of operations. • Property, plant and equipment Plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values: Schedule of Expected useful life Expected useful lives Computer equipment 3 Office equipment 5 Renovation 5 Expenditures for repairs and maintenance are expensed as incurred. When assets have been retired or sold, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the results of operations. • Impairment of long-lived assets In accordance with the provisions of ASC Topic 360, “ Impairment or Disposal of Long-Lived Assets • Revenue recognition The Company adopted Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). Under ASU 2014-09, the Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: • identify the contract with a customer; • identify the performance obligations in the contract; • determine the transaction price; • allocate the transaction price to performance obligations in the contract; and • recognize revenue as the performance obligation is satisfied. The Company generates its revenues from a diversified a mix of e-commerce activities (B2C), grocery and food delivery (B2C), telecommunication reseller (B2C) and the services providing to merchants for their business growth (B2B), which are operated under four business segments of e-Commerce (previously mentioned as Consumer Facing Business), grocery and food delivery, telecommunication reseller, and Merchant POS (previously mentioned as Merchant Facing Business). The Company’s performance obligation includes providing the connectivity among merchants and consumers, generally through an online ordering platform. The platform allows merchants to create account, place menu and track their sale reports on the merchant facing application. The platform also allows the consumers to create account and make orders from merchants on the consumer facing application. The platform allows delivering company to accept online delivery request and ship order from merchant to consumer. The Company has online lifestyle platform to enable the consumers to purchase high-end brands of all categories under its own brand name of “Leflair”. Under the deployment of the Company’s smart search engine, consumers search or review their favorite brands among hundreds of choices in Apparel, Bags & Shoes, Accessories, Health & Beauty, Home & Lifestyle, International, Women, Men and Kids & Babies categories. The platform also allows consumers to order from hundreds of vendor choices with personalized promotions based on purchase history and location. The platform has also partnered up with a Vietnam-based delivery company, Tikinow, to offer seamless delivery of product from merchant to consumer’s home or office at the touch of a button. Consumers can place orders for delivery or collect at the Company’s logistics center. Other online platforms include brand name of “Handcart” and “Pushkart” to enable the consumers to purchase grocery and food from difference local grocery and food merchants and deliver to them in their area. The Company also has online telecommunication reseller platform operate under brand name of “Gorilla” to enable the consumers to subscribe local mobile data and overseas internet data in different subscription package. e-Commerce 1) Customer placed orders on the website / app, sales orders report will be generated in the system. The Company will inform its business partners proceed to packaging to the logistic partner warehouse and therefore, logistic partner delivered to the end customer. The sales is recognized when the delivery is completed by the shipper to the end customer. Sale of products are offered with a limited right of return ranging from 3 to 30 days, from the date of purchase and not subject to no product warranty. The Company is considered as a principal in this e-commerce transaction and reported revenue in gross basis as the Company takes the responsibility for fulfillment, retaining the risk for collection, and establishing the price of the products. During the six months ended June 30, 2022 and 2021, the Company has generated the revenue of $ 892,715 0 During the three months ended June 30, 2022 and 2021, the Company has generated the revenue of $ 482,410 0 Merchant POS Software sales consist of: 1) Subscription fees consist of the fees that the Company charge merchants to get on the Merchant Marketing Program. 2) The Company provides optional add-on software services which includes Analytics and Chat box capabilities at a fixed fee per month. 3) The Company collects commissions when they sell third party hardware and equipment (cashier stations, waiter tablets and printers) to merchants. During the six months ended June 30, 2022 and 2021, the Company has generated $ 21,890 16,954 During the three months ended June 30, 2022 and 2021, the Company has generated $ 10,941 7,714 Hardware sales — the Company generally is involved with the sale of on-premise appliances and end-point devices. The single performance obligation is to transfer the hardware product (which is to be installed with its licensed software integral to the functionality of the hardware product). The entire transaction price is allocated to the hardware product and is generally recognized as revenue at the time of delivery because the customer obtains control of the product at that point in time. It is concluded that control generally transfers at that point in time because the customer has title to the hardware, physical possession, and a present obligation to pay for the hardware. Payments for hardware contracts are generally due 30 to 90 days after shipment of the hardware product. The Company records revenues from the sales of third-party products on a “gross” basis pursuant to ASC Topic 606-10 Revenue Recognition – Revenue from Contracts with Customers, when the Company controls the specified good before it is transferred to the end customer and have the risks and rewards as principal in the transaction, such as responsibility for fulfillment, retaining the risk for collection, and establishing the price of the products. If these indicators have not been met, or if indicators of net revenue reporting specified in ASC Topic 606-10 are present in the arrangement, revenue is recognized net of related direct costs. Software subscription fee — The Company’s performance obligation includes providing connectivity to software, generally through a monthly subscription, where the Company typically satisfies its performance obligations prior to the submission of invoices to the customer for such services. The Company’s software sale arrangements grant customers the right to access and use the software products which are to be installed with the relevant hardware for connectivity at the outset of an arrangement, and to be entitled to both technical support and software upgrades and enhancements during the term of the agreement. The term of the subscription period is generally 12 months, with the automatic renewal of another one year, and the subscription license service is billed monthly, quarterly or annually. Sales are generally recorded in the month the service is provided. For clients who are billed on an annual basis, deferred revenue is recorded and amortized over the life of the contract. Payments are generally due 30 to 90 days after delivery of the software licenses. The Company records its revenues, net of value added taxes (“VAT”), which is levied at the rate of 10% on the invoiced value of sales. Grocery and food delivery Customers place order of grocery and food through online platform of “Pushkart” and “Handcart” respectively. Upon received order by the grocery and food merchant, the platform will assign third party delivery man to pick up and deliver the grocery and food to the customers. Revenue are thus recognized at the point of the grocery and food delivered and paid by the customer in cash. During the six months ended June 30, 2022 and 2021, the Company has generated $ 23,836 0 During the three months ended June 30, 2022 and 2021, the Company has generated $ 8,042 0 Telecommunication reseller Local mobile plan - customers subscribe their desired monthly local mobile plan through online platform of “Gorilla” after customer account registration completed. The Company will proceed to register the Sim card and arrange delivery to the customer. Upon the Sim card activation, the system will capture the data usage of each customers at the end of each month, prorated by the package data capacity and monthly subscription rate for revenue recognition. Unused data will be converted to Rewards Point and carry forward to next month for subsequent revenue recognition point. With this, the company also recognize revenue from Rewards Point redemption for subscription offset, voucher redemption, extra data purchase, at the point of transaction accepted through the customer account in the online platform. Overseas internet data plan – customers place order of their desired overseas internet data plan through online platform of “Gorilla” or third party partner platforms. The revenue is recognize at the point of time when the Sim card delivered and activated. During the six months ended June 30, 2022 and 2021, the Company has generated $ 5,642 0 During the three months ended June 30, 2022 and 2021, the Company has generated $ 5,642 0 Contract assets In accordance with ASC Topic 606-10-45-3, contract asset is when the Company’s right to payment for goods and services already transferred to a customer if that right to payment is conditional on something other than the passage of time. The Company will recognize a contract asset when it has fulfilled a contract obligation but must perform other obligations before being entitled to payment. There were no contract assets at June 30, 2022 and December 31, 2021. Contract liabilities In accordance with ASC Topic 606-10-45-2, a contract liability is Company’s obligation to transfer goods or services to a customer when the customer prepays consideration or when the customer’s consideration is due for goods and services that the Company will yet provide whichever happens earlier. Contract liabilities represent amounts collected from, or invoiced to, customers in excess of revenues recognized, primarily from the billing of annual subscription agreements. The value of contract liabilities will increase or decrease based on the timing of invoices and recognition of revenue. The Company’s contract liability balance was $ 4,618 25,229 • Software development costs In accordance with the relevant FASB accounting guidance regarding the development of software to be sold, leased, or marketed, the Company expenses such costs as they are incurred until technological feasibility has been established, at and after which time these costs are capitalized until the product is available for general release to customers. Once the technological feasibility is established per ASC Topic 985-20, the Company capitalizes costs associated with the acquisition or development of major software for internal and external use in the balance sheet. Costs incurred to enhance the Company’s software products, after general market release of the services using the products, is expensed in the period they are incurred. The Company only capitalizes subsequent additions, modifications or upgrades to internally developed software to the extent that such changes allow the software to perform a task it previously did not perform. The Company also expenses website costs as incurred. Research and development expenditures in the development of its own software are charged to operations as incurred. Based on the software development process, technological feasibility is established upon completion of a working model, which also requires certification and extensive testing. Costs incurred by the Company between completion of the working model and the point at which the product is ready for general release are immaterial. For the six months ended June 30, 2022 and 2021, the software development costs were $ 36,868 66,989 17,320 36,828 • Cost of sales Cost of sales under online ordering consist of the cost of merchandizes ordered by the consumers and the related shipping and handling costs, which are directly attributable to the sales of online ordering. Cost of sales under software sales consist of the cost of software and payroll, which are directly attributable to the sales of software. Cost of sales under hardware sales consist of the cost of hardware and payroll, which are directly attributable to the sales of hardware. Cost of sales under grocery and food delivery consist of the cost of outsource delivery and outsource payment gateway, which are directly attributable t the sales of grocery and food delivery. Cost of sales under telecommunication data reseller consist of the cost of primary telecommunication service, which are directly attributable to the sales of telecommunication data. • Shipping and handling costs No shipping and handling costs are associated with the distribution of the products to the customers which are borne by the Company’s suppliers or distributors for merchant POS business. Except for e-Commerce business, the shipping and handling costs billed to customers are recorded in sales. Shipping costs incurred by the Company are recorded in cost of sales. • Sales and marketing Sales and marketing expenses include payroll, employee benefits and other headcount-related expenses associated with sales and marketing personnel, and the costs of advertising, promotions, seminars, and other programs. Advertising costs are expensed as incurred. Advertising expense was $ 253,290 449,392 41,284 42,184 • Product warranties The Company’s provision for estimated future warranty costs is based upon historical relationship of warranty claims to sales. Based upon historical sales trends and warranties provided by the Company’s suppliers, the Company has concluded that no warranty liability is required as of June 30, 2022 and December 31, 2021. To date, product allowance and returns have been minimal and, based on its experience, the Company believes that returns of its products will continue to be minimal. • Income tax The Company adopted the ASC 740 Income Tax The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its balance sheets and provides valuation allowances as management deems necessary. The Company and its wholly-owned foreign subsidiary, is subject to income taxes in the jurisdictions in which it operates. Significant judgment is required in determining the provision for income tax. There are many transactions and calculations undertaken during the ordinary course of business for which the ultimate tax determination is uncertain. The company recognizes liabilities for anticipated tax audit issues based on the Company’s current understanding of the tax law. Where the final tax outcome of these matters is different from the carrying amounts, such differences will impact the current and deferred tax provisions in the period in which such determination is made. • Uncertain tax positions The Company did not take any uncertain tax positions and had no adjustments to its income tax liabilities or benefits pursuant to the ASC 740 provisions of Section 740-10-25 for the six months ended June 30 2022 and 2021. • Foreign currencies translation and transactions The reporting currency of the Company is United States Dollar ("US$") and the accompanying consolidated financial statements have been expressed in US$. In addition, the Company’s subsidiary is operating in the Republic of Vietnam, Singapore, India and Philippines and maintains its books and record in its local currency, Vietnam Dong (“VND”), Singapore Dollar (“SGD”), Indian Rupee (“INR”) and Philippines Pesos (“PHP”), respectively, which are the functional currency as being the primary currency of the economic environment in which their operations are conducted. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “Translation of Financial Statement”, using the exchange rate on the balance sheet date. Shareholders’ equity is translated using the historical rates. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income (loss) within the statements of changes in shareholder’s equity. Translation of amounts from SGD into US$ has been made at the following exchange rates for the six months ended June 30, 2022 and 2021: Schedule of Foreign currencies translation and transactions Schedule of Foreign currencies translation and transactions June 30, 2022 June 30, 2021 Period-end SGD:US$ exchange rate $ 0.71874 $ 0.74356 Period average SGD:US$ exchange rate $ 0.73258 $ 0.75028 Translation of amounts from VND into US$ has been made at the following exchange rates for the six months ended June 30, 2022 and 2021: June 30, 2022 June 30, 2021 Period-end VND:US$ exchange rate $ 0.000043 $ 0.000043 Period average VND:US$ exchange rate $ 0.000044 $ 0.000043 Translation of amounts from INR into US$ has been made at the following exchange rates for the six months ended June 30, 2022 and 2021: June 30, 2022 June 30, 2021 Period-end INR:US$ exchange rate $ 0.012675 $ 0.013450 Period average INR:US$ exchange rate $ 0.013126 $ 0.013617 Translation of amounts from PHP into US$ has been made at the following exchange rates for the six months ended June 30, 2022 and 2021: June 30, 2022 June 30, 2021 Period-end PHP:US$ exchange rate $ 0.018176 $ N/A Period average PHP:US$ exchange rate $ 0.019173 $ N/A Translation gains and losses that arise from exchange rate fluctuations from transactions denominated in a currency other than the functional currency are translated, as the case may be, at the rate on the date of the transaction and included in the results of operations as incurred. • Comprehensive income ASC Topic 220, “ Comprehensive Income • Earning per share Basic per share amounts are calculated using the weighted average shares outstanding during the year, excluding unvested restricted stock units. The Company uses the treasury stock method to determine the dilutive effect of stock options and other dilutive instruments. Under the treasury stock method, only “in the money” dilutive instruments impact the diluted calculations in computing diluted earnings per share. Diluted calculations reflect the weighted average incremental common shares that would be issued upon exercise of dilutive options assuming the proceeds would be used to repurchase shares at average market prices for the periods. For the three and six months ended June 30, 2022 and 2021, diluted weighted-average common shares outstanding is equal to basic weighted-average common shares, due to the Company’s net loss position. Hence, no common stock equivalents were included in the computation of diluted net loss per share since such inclusion would have been antidilutive. Schedule of computation of diluted net loss per share Schedule of computation of diluted net loss per share Three months ended June 30, 2022 2021 Net loss attributable to Society Pass Incorporated $ (7,504,324 ) $ (4,342,751 ) Weighted average common shares outstanding – Basic and diluted 24,347,607 7,413,600 Net loss per share – Basic and diluted $ (0.31 ) $ (0.59 ) Six months ended June 30, 2022 2021 Net loss attributable to Society Pass Incorporated $ (14,052,702 ) $ (7,099,731 ) Weighted average common shares outstanding – Basic and diluted 23,126,632 7,413,600 Net loss per share – Basic and diluted $ (0.61 ) $ (0.96 ) The following potentially dilutive securities outstanding have been excluded from the computation of diluted weighted-average shares outstanding, because such securities had an antidilutive impact: Schedule of Common stock issued Schedule of Common stock issued Six months ended June 30, Six months ended June 30, 2022 2021 Series A Convertible Preferred Stock (a) — 8,000 Series B Convertible Preferred Stock — 764,400 Series B-1 Convertible Preferred Stock — 48,000 Series C Convertible Preferred Stock — 113,100 Series C-1 Convertible Preferred Stock — 2,186,400 Options to purchase common stock (b) 1,945,270 — Warrants granted to underwriter 3,793,929 — Warrants granted with Series C-1 Convertible Preferred Stock (c) — 1,178,700 Total of common stock equivalents 5,739,199 4,298,600 (a) The Series A the conversion formula is aggregate Stated Value divided by IPO price (State Value for each Series A preferred shares is $1,000). These are 8,000 shares of Series A Preferred Stock issued and outstanding (10,000 shares are designated Series A). The conversion formula would be $8 million (the aggregate stated value) divided by IPO price. (b) The Board of Directors have approved a 10-years option at an exercise price of $6.49 per share that will be exercisable at any time. (c) The expiry date of warrants granted with Series C-1 was expired on June 30, 2022. • Leases The Company adopted Topic 842, Leases ROU assets represent the 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 Company’s leases do not provide an implicit rate, the Company generally use the incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. 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 the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. In accordance with the guidance in ASC 842, components of a lease should be split into three categories: lease components (e.g. land, building, etc.), non-lease components (e.g. common area maintenance, consumables, etc.), and non-components (e.g. property taxes, insurance, etc.). Subsequently, the fixed and in-substance fixed contract consideration (including any related to non-components) must be allocated based on the respective relative fair values to the lease components and non-lease |
REVENUE
REVENUE | 6 Months Ended |
Jun. 30, 2022 | |
Revenue | |
REVENUE | NOTE-4 REVENUE Revenue consisted of the following deliverables: Schedule of Revenue Six Months ended June 30, 2022 2021 Sales – online ordering $ 916,551 $ — Sales – data 5,642 — Software subscription sales 21,890 16,954 Hardware sales 69 335 $ 944,152 $ 17,289 Three Months ended June 30, 2022 2021 Sales – online ordering $ 482,410 $ — Sales – data 5,642 — Software subscription sales 10,941 7,714 Hardware sales 69 69 $ 499,062 $ 7,783 Contract liabilities recognized was related to software sales only and the following is reconciliation for the periods presented: Schedule of Contract liabilities Schedule of Contract liabilities Six Months ended June 30, 2022 Year ended December 31, 2021 Contract liabilities, brought forward $ 25,229 $ 18,646 Add: recognized as deferred revenue 3,969 44,064 Less: recognized as revenue (24,580 ) (37,481 ) Contract liabilities, carried forward $ 4,618 $ 25,229 |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE-5 SEGMENT REPORTING Currently, the Company has four reportable business segments: (i) e-Commerce operates an online lifestyle platform under the brand name of “Leflair” covering a diversity of services and products, such as Fashion & Accessories, Beauty & Personal Care, and Home & Lifestyle, and managed by SOPA Technology Company Ltd, and (ii) Merchant POS operates the sale of hardware and software, managed by Hottab group and SOPA entities except SOPA Technology Company Ltd, and (iii) Online grocery and food deliveries operates an online food delivery under brand name of “Handycart” and online grocery delivery under “Pushkart”, managed by Dream Space Trading Co Ltd and New Retail Experience Incorporated respectively, and (iv) Telecommunication reseller operates the sales of local mobile plan and global internet plan, managed by Gorilla Group. The Company’s Chief Finance Officer (CFO) evaluates operating segments using the following table presents revenues and gross profits by reportable segment and asset except liability information. Schedule of Segment Reporting Schedule of Segment Reporting Six Months Ended June 30, 2022 Online Grocery and Food Deliveries Telecommunication Reseller e-Commerce Merchant POS Total Revenue from external customers: Sales – online ordering $ — $ — $ 892,715 $ — $ 892,715 Sales – online platform 23,836 — — — 23,836 Sales – data — 5,642 — — 5,642 Software sales — — — 21,890 21,890 Hardware sales — — — 69 69 Total revenue 23,836 5,642 892,715 21,959 944,152 Cost of sales: Cost of online ordering — (825,960 ) — (825,960 ) Cost of online platform (26,898 ) — — — (26,898 ) Cost of data — (975 ) (975 ) Software sales — — (92,541 ) (12,664 ) (105,205 ) Hardware sales — — — (45 ) (45 ) Total cost of revenue (26,898 ) (975 ) (918,501 ) (12,709 ) (959,083 ) Gross income (loss) (3,062 ) 4,667 (25,786 ) 9,250 (14,931 ) Operating Expenses Sales and marketing expenses (818 ) — (448,574 ) — (449,392 ) Software development costs — — — (36,868 ) (36,868 ) Impairment loss — — — (528,583 ) (528,583 ) Depreciation (77 ) (1,270 ) — (13,270 ) (14,617 ) Amortization — — — (1,600,000 ) (1,600,000 ) General and administrative expenses (59,372 ) (79,852 ) (606,910 ) (10,825,311 ) (11,571,445 ) Total operating expenses (60,267 ) (81,122 ) (1,055,484 ) (13,004,032 ) (14,200,905 ) Loss from operations (63,329 ) (76,455 ) (1,081,270 ) (12,994,782 ) (14,215,836 ) Other income (expense) Interest income — — 186 5,886 6,072 Interest expense — — — (4,429 ) (4,429 ) Other income — 1,777 699 35,817 38,293 Total other income — 1,777 885 37,274 39,936 Loss before income taxes $ (63,329 ) $ (74,678 ) $ (1,080,385 ) $ (12,957,508 ) $ (14,175,900 ) Six Months Ended June 30, 2021 Online Grocery and Food Deliveries Telecommunication Reseller e-Commerce Merchant POS Total Revenue from external customers: Sales – online ordering $ — $ — $ — $ — $ — Sales – online platform — — — — — Sales – data — — — — — Software sales — — — 16,954 16,954 Hardware sales — — — 335 335 Total revenue — — — 17,289 17,289 Cost of sales: Cost of online ordering — — — — — Cost of online platform — — — — — Cost of data — — — — — Software sales — — — (104,692 ) (104,692 ) Hardware sales — — — (165 ) (165 ) Total cost of revenue — — — (104,857 ) (104,857 ) Gross income (loss) — — — (87,568 ) (87,568 ) Operating Expenses Sales and marketing expenses — — — (42,184 ) (42,184 ) Software development costs — — — (66,989 ) (66,989 ) Impairment loss — — — (200,000 ) (200,000 ) Depreciation — — — (4,451 ) (4,451 ) Amortization — — — (1,600,000 ) (1,600,000 ) General and administrative expenses — — — (4,517,448 ) (4,517,448 ) Total operating expenses — — — (6,431,072 ) (6,431,072 ) Loss from operations — — — (6,518,640 ) (6,518,640 ) Other income (expense) Interest income — — — 16 16 Interest expense — — — (24,214 ) (24,214 ) Loss on settlement of litigation (550,000 ) (550,000 ) Other income — — — 1,747 1,747 Total other income — — — (572,451 ) (572,451 ) Loss before income taxes $ — $ — $ — $ (7,091,091 ) $ (7,091,091 ) Three Months Ended June 30, 2022 Online Grocery and Food Deliveries Telecommunication Reseller e-Commerce Merchant POS Total Revenue from external customers: Sales – online ordering $ — $ — $ 466,616 $ — $ 466,616 Sales – online platform 23,836 — (8,042 ) — 15,794 Sales – data — 5,642 — — 5,642 Software sales — — — 10,941 10,941 Hardware sales — — — 69 69 Total revenue 23,836 5,642 458,574 11,010 499,062 Cost of sales: Cost of online ordering — (432,707 ) — (432,707 ) Cost of online platform (26,898 ) — 2,637 — (24,261 ) Cost of data — (975 ) — — (975 ) Software sales — — (34,836 ) (6,376 ) (41,212 ) Hardware sales — — — (45 ) (45 ) Total cost of revenue (26,898 ) (975 ) (464,906 ) (6,421 ) (499,200 ) Gross income (loss) (3,062 ) 4,667 (6,332 ) 4,589 (138 ) Operating Expenses Sales and marketing expenses (818 ) — (252,472 ) — (253,290 ) Software development costs — — — (17,320 ) (17,320 ) Impairment loss — — — — — Depreciation (77 ) (1,270 ) 5 (6,653 ) (7,995 ) Amortization — — — (800,000 ) (800,000 ) General and administrative expenses (59,372 ) (79,852 ) (435,855 ) (5,962,290 ) (6,537,369 ) Total operating expenses (60,267 ) (81,122 ) (688,322 ) (6,786,263 ) (7,615,974 ) Loss from operations (63,329 ) (76,455 ) (694,654 ) (6,781,674 ) (7,616,112 ) Other income (expense) Interest income — — 146 5,881 6,027 Interest expense — — — (384 ) (384 ) Other income — 1,777 — 22,895 24,672 Total other income — 1,777 146 28,392 30,315 Loss before income taxes $ (63,329 ) $ (74,678 ) $ (694,508 ) $ (6,753,282 ) $ (7,585,797 ) Three Months Ended June 30, 2021 Online Grocery and Food Deliveries Telecommunication Reseller e-Commerce Merchant POS Total Revenue from external customers: Sales – online ordering $ — $ — $ — $ — $ — Sales – online platform — — — — — Sales – data — — — — — Software sales — — — 7,714 7,714 Hardware sales — — — 69 69 Total revenue — — — 7,783 7,783 Cost of sales: Cost of online ordering — — — — — Cost of online platform — — — — — Cost of data — — — — — Software sales — — — (86,498 ) (86,498 ) Hardware sales — — — (64 ) (64 ) Total cost of revenue — — — (86,562 ) (86,562 ) Gross income (loss) — — — (78,779 ) (78,779 ) Operating Expenses Sales and marketing expenses — — — (41,284 ) (41,284 ) Software development costs — — — (36,828 ) (36,828 ) Impairment loss — — — — — Depreciation — — — (2,214 ) (2,214 ) Amortization — — — (800,000 ) (800,000 ) General and administrative expenses — — — (3,365,588 ) (3,365,588 ) Total operating expenses — — — (4,245,914 ) (4,245,914 ) — — Loss from operations — — — (4,324,693 ) (4,324,693 ) Other income (expense) Interest income — — — 10 10 Interest expense — — — (12,157 ) (12,157 ) Other income — — — 992 992 Total other income — — — (11,115 ) (11,155 ) Loss before income taxes $ — $ — $ — $ (4,335,848 ) $ (4,335,848 ) June 30, 2022 Online Grocery and Food Deliveries Telecommunication Reseller e-Commerce Merchant POS Total Intangible assets, net $ — $ 884,230 $ — $ 2,854,519 $ 3,738,749 Identifiable assets $ 95,155 $ 184,102 $ 699,561 $ 32,779,447 $ 33,758,265 December 31, 2021 Online Grocery and Food Deliveries Telecommunication Reseller e-Commerce Merchant POS Total Intangible assets, net $ — $ — $ — $ 4,000,000 $ 4,000,000 Identifiable assets $ — $ — $ 9,638,035 $ 21,538,322 $ 31,176,357 Six Months Ended June 30, 2022 Online Grocery and Food Deliveries Telecommunication Reseller e-Commerce Merchant POS Total Capital Expenditure: Purchase of property, plant, and equipment $ — $ — $ 30,783 $ 57,613 $ 88,396 Total capital expenditure $ — $ — $ 30,783 $ 57,613 $ 88,396 Six Months Ended June 30, 2021 Online Grocery and Food Deliveries Telecommunication Reseller e-Commerce Merchant POS Total Capital Expenditure: Purchase of property, plant, and equipment $ — $ — $ — $ — $ — Total capital expenditure $ — $ — $ — $ — $ — The below sales are based on the countries in which the customer is located. Summarized financial information concerning our geographic segments is shown in the following tables: Schedule of geographic revenue segments Schedule of geographic segments Six Months Ended June 30, 2022 2021 Indonesia $ 20,696 $ 14,974 Vietnam 896,661 2,315 Singapore 5,641 — Philippines 21,154 — $ 944,152 $ 17,289 Three Months Ended June 30, 2022 2021 Indonesia $ 10,328 $ 6,930 Vietnam 469,137 853 Singapore 5,641 — Philippines 13,956 — $ 499,062 $ 7,783 |
BUSINESS COMBINATION
BUSINESS COMBINATION | 6 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS COMBINATION | NOTE-6 BUSINESS COMBINATION On February 14, 2022 and February 25, 2022, the Company completed the acquisition of 100 (c) Acquisition of New Retail: The total consideration of the acquisition is 226,629 800,000 200,000 Schedule of Acquisition of assets and liability Purchase price consisted of the following: Fair value of stock at closing $ 800,000 Cash paid 200,000 Less cash received (5,445 ) Purchase price $ 994,555 The transaction was accounted for using the acquisition method. Accordingly, goodwill has been measured as the excess of the total consideration over the amounts assigned to the identifiable assets acquired and liabilities assumed based on their preliminary estimated fair values. The Company expects to retain the services of an independent valuation firm to determine the fair value of these identifiable intangible assets. Once determined, the Company will reallocate the purchase price of the acquisition based on the results of the independent evaluation if they are materially different from the allocations as recorded on February 14, 2022. The preliminary estimated fair value of assets acquired, and liabilities assumed in were as follows: The purchase price allocation resulted in $ 983,103 Schedule of Acquisition of assets and liability Acquired assets: Trade receivables $ 4,728 Other receivables 9,603 Property and equipment 204 Total acquired assets 14,535 Less: Assumed liabilities Trade payables 2,804 Accrued liabilities and other payable 279 Total Assumed liabilities 3,083 Fair value of net assets assumed 11,452 Goodwill recorded 983,103 Cash consideration allocated $ 994,555 Under the acquisition method of accounting, the total acquisition consideration price was allocated to the assets acquired and liabilities assumed based on their preliminary estimated fair values. The fair value measurements utilize estimates based on key assumptions of the Acquisition, and historical and current market data. The preliminary allocation of the purchase price is based on the best information available and is pending, amongst other things: (i) the finalization of the valuation of the fair values and useful lives of tangible assets acquired; (ii) the finalization of the valuations and useful lives for the intangible assets acquired; (iii) finalization of the valuation of accounts payable and accrued expenses; and (iv) finalization of the fair value of non-cash consideration. The Acquisition was accounted for as a business combination in accordance with ASC 805 “Business Combinations”. The Company has allocated the purchase price consideration based upon the fair value of the identifiable assets acquired and liabilities assumed on the acquisition date. Management of the Company is responsible for determining the fair value of assets acquired, liabilities assumed and intangible assets identified as of the acquisition date and considered a number of factors including valuations from management estimation. Acquisition-related costs incurred for the acquisitions are not material and have been expensed as incurred in general and administrative expense. The goodwill is not expected to be deductible for tax purposes. The Company recognized a goodwill impairment of $528,583 during the six months ended June 30, 2022, because there were continuous operating losses and negative cash flows incurred subsequent to the acquisition date. Under ASC 350-20-50, the Company recognized the goodwill impairment loss by comparing the actual operating results of New Retail to the profit forecast which indicated that the goodwill was impaired. Goodwill impairments may not be subsequently reversed. During the measurement period (which is the period required to obtain all necessary information that existed at the acquisition date, or to conclude that such information is unavailable, not to exceed one year), additional assets or liabilities may be recognized, or there could be changes to the amounts of assets or liabilities previously recognized on a preliminary basis, if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in the recognition of these assets or liabilities as of that date. The following unaudited pro forma information presents the combined results of operations as if the acquisitions had been completed on January 1, 2022 and 2021. Schedule of net loss per share Six months ended June 30, 2022 Six months ended June 30, 2021 Revenue $ 1,181,847 $ 185,266 Net loss $ (14,202,024 ) $ (2,763,079 ) Net loss per share $ (0.57 ) $ (0.15 ) (ii) Acquisition of Dream Space: The total acquisition consideration of the acquisition is cash consideration of VND 2,300,000 US$104). Schedule of Acquisition of assets and liability Purchase price consisted of the following: Cash paid $ 104 Less cash received - Purchase price $ 104 The transaction was accounted for using the acquisition method. Accordingly, goodwill has been measured as the excess of the total consideration over the amounts assigned to the identifiable assets acquired and liabilities assumed based on their preliminary estimated fair values. The purchase price allocation resulted in $-0- of goodwill, as below: Schedule of Acquisition of assets and liability Acquired assets: Trade receivables $ 1,168 Other receivables 5 Cash 1,429 Property and equipment Total acquired assets 2,602 Less: Assumed liabilities Trade payables 1,228 Accrued liabilities and other payable 2,557 Total Assumed liabilities 3,805 Fair value of net liabilities assumed (1,203 ) Exchange difference 1,307 Goodwill recorded — Cash consideration allocated $ 104 Under the acquisition method of accounting, the total acquisition consideration price was allocated to the assets acquired and liabilities assumed based on their preliminary estimated fair values. The fair value measurements utilize estimates based on key assumptions of the Acquisition, and historical and current market data. The preliminary allocation of the purchase price is based on the best information available and is pending, among other things: (i) the finalization of the valuation of the fair values and useful lives of tangible assets acquired; (ii) the finalization of the valuations and useful lives for the intangible assets acquired; (iii) finalization of the valuation of accounts payable and accrued expenses; and (iv) finalization of the fair value of non-cash consideration. The Acquisition was accounted for as a business combination in accordance with ASC 805 “Business Combinations”. The Company has allocated the purchase price consideration based upon the fair value of the identifiable assets acquired and liabilities assumed on the acquisition date. Management of the Company is responsible for determining the fair value of assets acquired, liabilities assumed and intangible assets identified as of the acquisition date and considered a number of factors including valuations from management estimation. Acquisition-related costs incurred for the acquisitions are not material and have been expensed as incurred in general and administrative expense. During the measurement period (which is the period required to obtain all necessary information that existed at the acquisition date, or to conclude that such information is unavailable, not to exceed one year), additional assets or liabilities may be recognized, or there could be changes to the amounts of assets or liabilities previously recognized on a preliminary basis, if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in the recognition of these assets or liabilities as of that date. No additional assets or liabilities were recognized during the measurement period, or the changes to the amounts of assets or liabilities previously recognized. The following unaudited pro forma information presents the combined results of operations as if the acquisitions had been completed on January 1, 2022 and 2021. Schedule of net loss per share Six months ended June 30, 2022 Six months ended June 30, 2021 Revenue $ 947,354 $ 25,728 Net loss $ (14,200,611 ) $ (7,099,708 ) Net loss per share $ (0.57 ) $ (0.38 ) (iii) Acquisition of Gorilla: On May 31, 2022, the Company (“Buyer”) entered into Stock Purchase Agreement with Gorilla Networks Pte Ltd. (“Gorilla”) for the acquisition of 100% of the equity interests in Gorilla for an aggregate purchase price equal to (i) the number of the Buyer’s shares of restricted common stock equal to the quotient of $150,000 divided by the closing price of the Buyer’s common stock on the Nasdaq Capital Market on the day immediately before the Closing Date (“Closing Price”) issued on the Closing Date (“First Tranche”) and (ii) the number of the Buyer’s shares of restricted common stock equal to the quotient of $1,000,000 (less the amount of the First Tranche and the amount of the Assumed Liabilities) divided by the Closing Price issued on the six month anniversary of the Closing Date (“Second Tranche”). The approximately $ 338,785 ($1,000,000 less assumed liabilities of $ 661,215 The Company accounted for the transaction as an acquisition of a business, on May 31, 2022, pursuant to ASC 805, “Business Combinations” (“ASC 805”). Schedule of Acquisition of assets and liability Purchase price consisted of the following: Fair value of stock at closing $ 338,785 Less: cash received (25,583 ) Purchase price $ 313,202 The Company accounts for business combinations using the acquisition method and that the Company has early adopted the amendments of Regulation S-X dated May 21, 2020 and has concluded that this acquisition was not significant. Accordingly, the presentation of the assets acquired, historical financial statements under Rule 3-05 and related pro forma information under Article 8 of Regulation S-X, respectively, are not required to be presented. The transaction was accounted for using the acquisition method. Accordingly, goodwill has been measured as the excess of the total consideration over the amounts assigned to the identifiable assets acquired and liabilities assumed based on their preliminary estimated fair values. The Company expects to retain the services of an independent valuation firm to determine the fair value of these identifiable intangible assets. Once determined, the Company will reallocate the purchase price of the acquisition based on the results of the independent evaluation if they are materially different from the allocations as recorded on May 31, 2022. The preliminary estimated fair value of assets acquired, and liabilities assumed in were as follows: The purchase price allocation resulted in $-0- of goodwill, as below: Schedule of Acquisition of assets and liability Acquired assets: Inventories $ 4,348 Trade receivables 3,273 Other receivables 58,029 Property and equipment 8,876 Intangible assets (Apps development cost) 899,891 Total acquired assets 974,417 Less: Assumed liabilities — Trade payables 534,907 Accrued liabilities and other payable 51,538 Amount due to related parties 73 Amount due to shareholder 74,697 Total acquired Liabilities 661,215 Fair value of net assets assumed 313,202 Goodwill recorded — Net consideration allocated, net $ 313,202 Under the acquisition method of accounting, the total acquisition consideration price was allocated to the assets acquired and liabilities assumed based on their preliminary estimated fair values. The fair value measurements utilize estimates based on key assumptions of the Acquisition, and historical and current market data. The preliminary allocation of the purchase price is based on the best information available and is pending, amongst other things: (i) the finalization of the valuation of the fair values and useful lives of tangible assets acquired; (ii) the finalization of the valuations and useful lives for the intangible assets acquired; (iii) finalization of the valuation of accounts payable and accrued expenses; and (iv) finalization of the fair value of non-cash consideration. The Acquisition was accounted for as a business combination in accordance with ASC 805 “Business Combinations”. The Company has allocated the purchase price consideration based upon the fair value of the identifiable assets acquired and liabilities assumed on the acquisition date. Management of the Company is responsible for determining the fair value of assets acquired, liabilities assumed and intangible assets identified as of the acquisition date and considered a number of factors including valuations from management estimation. Acquisition-related costs incurred for the acquisitions are not material and have been expensed as incurred in general and administrative expense. During the measurement period (which is the period required to obtain all necessary information that existed at the acquisition date, or to conclude that such information is unavailable, not to exceed one year), additional assets or liabilities may be recognized, or there could be changes to the amounts of assets or liabilities previously recognized on a preliminary basis, if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in the recognition of these assets or liabilities as of that date. The following unaudited pro forma information presents the combined results of operations as if the acquisitions had been completed on January 1, 2022 and 2021. Schedule of net loss per share Six months ended June 30, 2022 Six months ended June 30, 2021 Revenue $ 1,076,601 $ 17,289 Net loss $ (17,143,580 ) $ (7,129,282 ) Net loss per share $ (0.69 ) $ (0.38 ) |
DEPOSITS, PREPAYMENTS AND OTHER
DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES | 6 Months Ended |
Jun. 30, 2022 | |
Deposits Prepayments And Other Receivables | |
DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES | NOTE-7 DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES Schedule of prepayments and other receivables June 30, 2022 December 31, 2021 Deposits $ 129,289 $ 68,991 Prepayments (a) 587,437 32,279 Prepayments for consultancy fee (b) 3,434,666 6,010,667 Prepayments for first insurance funding (c) 247,500 742,500 Value added tax 142,536 96,818 Other receivables 6,787 1,666 Advance to related party 1,538 — Total $ 4,549,753 $ 6,952,921 Less: non-current portion Prepayments for consultancy fee — (858,667 ) Current portion $ 4,549,753 $ 6,094,254 (a) Consists mainly prepayments for legal and professional fees to GrowHub Innovations Company Pte Ltd, Mesa and Red Eminent. The company entered into agreement with them, The total consideration of the service are $918,472. The Company’s due to these 3 companies was $523,512 and $-0- as of June 30, 2022 and Dec 31, 2021, respectively. For the six months ended June 30, 2022 and 2021, the Company recognized the amortization of prepaid legal and professional fee of $ 394,960 and $-0-, respectively, using the straight- line method over a term of 6 months, 9 months and 12 months. For the three months ended June 30, 2022 and 2021, the Company recognized the amortization of prepaid legal and professional fee of $366,659 and $-0-, respectively. (b) On December 6, 2021, the Company entered into two consulting agreements with China-America Culture Media Inc. and New Continental Technology Inc., acting as consultants to assist the Company in completing certain Business Opportunities with potential partners until February 28, 2023. The consideration of the service are $ 3,250,000 3,190,000 1,733,333 3,033,334 1,701,333 2,977,333 2,576,000 0 1,288,000 0 (c) On October 7, 2021, the Company purchased the Directors and Officers (D&O) insurance at a premium fee of $990,000 for a term of 12 months. Also, the Company entered a loan agreement with First Insurance Funding to finance 75% of the total premium, to repay the premium of $990,000. The Company paid the down payment of $247,500 (25%) and the remaining balance $742,500 (75%) to be repaid by 10 installments until August 7, 2022. The Company’s D&O insurance prepayment balance was $ 247,500 742,500 495,000 0 247,500 0 |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2022 | |
Inventories | |
INVENTORIES | NOTE-8 INVENTORIES Schedule of inventories June 30, 2022 December 31, 2021 Finished goods $ 336,476 $ 221,068 Less Reserve for excess and obsolete inventory — — Total Inventories $ 336,476 $ 221,068 All finished goods inventories were related to e-commerce business and was held by the third party logistic. The cost of sales totaled $852,858 456,968 0 0 $336,476 $221,068 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE-9 INTANGIBLE ASSETS As of June 30, 2022 and December 31, 2021, intangible assets consisted of the following: Schedule of intangible assets Useful life June 30, 2022 December 31, 2021 At cost: (Unaudited) Software platform 2.5 $ 8,000,000 $ 8,000,000 Apps development 884,230 — Other intangible assets 3 5 1,725 1,725 8,885,955 8,001,725 Less: accumulated depreciation (5,601,725 ) (4,001,725 ) $ 3,284,230 $ 4,000,000 On November 1 2018, the Company entered software development agreement with CVO Advisors Pte Ltd (CVO) 2018 to design and build App and Web-based platform for the total consideration of $8,000,000. CVO who is a third party vendor in the business of designing, developing, operating computer software applications including mobile and web application for social media, big data, point of sales, loyalty rewards, food delivery and technology platforms in Asia. The CVO developer performed and accepted technical work, of software development phase, which was materially completed by December 23, 2018. The Company obtained a third party license (Wallet Factory International Ltd) for their technology build up by CVO. The delivered platform was further developed by the Company’s in-house technology team (based in Noida that Sopa is currently using for the loyalty platform. The platform can be downloaded from Apple store or Googleplay store (i.e. SoPaApp) and the Company’s web version is on www.sopa.asia. The platform was completed developed on September 30, 2020 and has estimated life of 2.5 years. The platform started to be amortized from October 1, 2020. Further, the Company entered subscription agreement with CVO to issued 8,000 1,000 Pursuant to the subscription agreement entered with CVO, the Company issued 8,000 1,000 8,000,000 Also, owner of CVO entered into call option agreement with the CEO of the Company to sale all the shares of CVO for the sum of $10 per share, as of date, these options were exercised by the CEO of the Company, but the equity holders of CVO Advisors Pte. Ltd. have not honored the exercise of the call. The parties are currently in litigation (refer Note 19). As a result of this option exercise, there were no accounting effect on the Company’s financial statement during the period ended June 30, 2022. Amortization of intangible assets attributable to future periods is as follows: Schedule of Amortization of intangible assets Six months ended June 30, 2022: Amount 2022 (remaining period) $ 1,600,000 2023 800,000 Total $ 2,400,000 Amortization of intangible assets was $ 1,600,000 1,600,000 Amortization of intangible assets was $ 800,000 and $ 800,000 for the three months ended June 30, 2022 and 2021, respectively. Apps development costs for the development stage of mobile apps development with blockchain feature used by the subsidiaries under Telecommunications Reseller segment business amounted to $ 884,230 0 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE-10 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following: Schedule of Property plant and equipment June 30, 2021 December 31, 2021 (Unaudited) At cost: Computer $ 84,942 $ 33,207 Office equipment 8,286 16,826 Furniture and fixtures 8,387 — Renovation 38,451 27,731 140,066 77,764 Less: accumulated depreciation (36,360 ) (21,743 ) Less: exchange difference (6,993 ) 1,014 $ 96,713 $ 57,035 Depreciation expense for the six months ended June 30, 2022 and 2021 was $ 14,617 4,451 Depreciation expense for the three months ended June 30, 2022 and 2021 was $ 12,380 4,395 |
ASSET PURCHASE AGREEMENT
ASSET PURCHASE AGREEMENT | 6 Months Ended |
Jun. 30, 2022 | |
Asset Purchase Agreement | |
ASSET PURCHASE AGREEMENT | NOTE—11 ASSET PURCHASE AGREEMENT On February 16, 2021, the Company entered into an agreement to acquire assets of Goodventures SEA Limited (“Goodventure”). The acquired assets consisted of intellectual property for it lifestyle e-commerce retail business. As consideration for entering into the Asset Purchase Agreement, the Company agreed to pay Goodventure a total of $200,000 Schedule of Asset acquisition Acquired assets: Intellectual property $ 200,000 Less: Assumed liabilities Accrued liabilities and other payable — Fair value of net assets acquired 200,000 Impairment loss recorded (200,000 ) Net asset value $ — The Company has paid $ 40,000 160,000 The Company paid the purchase price of $200,000 during the year ended December 31, 2021. The purchase price of $200,000 shall be allocated amongst the intangible assets acquired, further, these intangible have a short term life as well as the quantum of the value, the company decided to expense it and accounted $ 200,000 The shares issued as part of this transaction do not give the holders the right to influence or control SoPa Pte Ltd. The holders do not have any special voting rights or the right to appoint any board members. SOPA Technology Pte Ltd is a private company that was incorporated under the laws of Singapore on June 6, 2019. SOPA Technology Pte Ltd manages Society Pass Incorporated’s operating activities in SEA countries and South Asia. As a pass-through holding company, the value of the 15 3,750,000 9 277,409 102,784 The following table summarizes the changes in non-controlling interest from December 31, 2021 to June 30, 2022: Schedule of non-controlling interest Schedule of non-controlling interest Balance, December 31, 2021 5 % Transfer (to) from the non-controlling interest as a result of Leflair Purchase Agreement — % Parent Co. acquired/exchanged the non controlling interest holding with their shares — % Balance, June 30, 2022 5 % A reconciliation of the non-controlling loss attributable to the Company: Schedule of reconciliation non-controlling loss attributable to the company Schedule of reconciliation non-controlling loss attributable to the company Non Controlling Interest, December 31, 2021 $ (102,784 ) Acquisition cost — Net loss attributable to non-controlling interest (125,297 ) Foreign currency translation adjustment 3,356 Non Controlling Interest, June 30, 2022 $ (224,725 ) Net loss attributable to non-controlling interest for the six months ended June 30, 2022: Schedule of Net loss attributable to non-controlling interest Schedule of Net loss attributable to non-controlling interest Net loss generated by SOPA Technology Pte Ltd for the six months ended June 30, 2022 $ (2,546,684 ) Non controlling interest percentage 5 % Net loss attributable to non-controlling interest $ (125,297 ) Foreign currency translation adjustment 3,356 Non Controlling Interest $ (121,941 ) For the six months ended June 30, 2022, 5 125,297 |
AMOUNTS DUE TO RELATED PARTIES
AMOUNTS DUE TO RELATED PARTIES | 6 Months Ended |
Jun. 30, 2022 | |
Amounts Due To Related Parties | |
AMOUNTS DUE TO RELATED PARTIES | NOTE-12 AMOUNTS DUE TO RELATED PARTIES Amounts due to related parties consisted of the following: Schedule of Amount due to related parties June 30, 2022 December 31, 2021 (Unaudited) Amounts due to related parties (a) $ 22,822 $ 24,763 Amount due to a director (b) — 500,000 $ 22,822 $ 524,763 (a) The amounts represented temporary advances to the Company including related parties (two officers), which were unsecured, interest-free and had no fixed terms of repayments. On September 30, 2021, the Company received the notifications that the outstanding amounts of $ 72,176 22,822 24,763 (b) The amount represented paid salaries and bonus to the Director which was unsecured, interest-free and had no fixed terms of repayments. As of June 30, 2021, the Director had $ 960,833 0.83 1,157,630 3,854,908 2,894,075 0 500,000 |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 6 Months Ended |
Jun. 30, 2022 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | NOTE-13 ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities consisted of the following: Schedule of Accounts payable June 30, 2022 December 31, 2021 (Unaudited) Accounts payable $ 903,715 $ 261,907 Accrued liabilities and other payables- Related Party (a) 434,301 60,253 Accrued liabilities and other payables (b) 837,355 753,345 Other Accounts payable 1,271,656 813,959 Total Accounts payable $ 2,175,371 $ 1,075,505 Accounts payable includes significant third parties balance of $ 532,752 (a) The amount represented due to one related parties in respect to unpaid salaries amounted to $ 3,440 as of June 30, 2022. The amount represented due to one related parties in respect to unpaid salaries amounted to $ 6,818 (b) Accrued liabilities and other payables consisted of the following: Schedule of Accrued liabilities June 30, 2022 December 31, 2021 (Unaudited) Accrued payroll $ 75,627 $ 85,888 Accrued VAT expenses 76,343 62,044 Accrued taxes 72,703 62,272 Other accrual (d) 367,682 298,141 Other payables (c) 245,000 245,000 Total Accrued liabilities $ 837,355 $ 753,345 (c) This included $75,000 related to SOSV. In January 2019, the HPL entered into stock purchase agreement and accelerator contract for equity (ACE) with SOSV IV LLC (SOSV) whereby the HPL will issue shares representing 5% of their capital stock for the amounts of $ 168,000 75,000 48,000 45,000 75,000 75,000 75,000 75,000 (d) This included $ 255,000 |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
LEASES | NOTE-14 LEASES We adopted ASU No. 2016-02, Leases, on January 1, 2019, the beginning of our fiscal 2019, using the modified retrospective approach. We determine whether an arrangement is a lease at inception. This determination generally depends on whether the arrangement conveys the right to control the use of an identified fixed asset explicitly or implicitly for a period of time in exchange for consideration. Control of an underlying asset is conveyed if we obtain the rights to direct the use of and to obtain substantially all of the economic benefit from the use of the underlying asset. Some of our leases include both lease and non-lease components which are accounted for as a single lease component as we have elected the practical expedient. Some of our operating lease agreements include variable lease costs, primarily taxes, insurance, common area maintenance or increases in rental costs related to inflation. Substantially all of our equipment leases and some of our real estate leases have terms of less than one year and, as such, are accounted for as short-term leases as we have elected the practical expedient. Operating leases are included in the right-of-use lease assets, other current liabilities and long-term lease liabilities on the Consolidated Balance Sheet. Right-of-use assets and lease liabilities are recognized at each lease’s commencement date based on the present values of its lease payments over its respective lease term. When a borrowing rate is not explicitly available for a lease, our incremental borrowing rate is used based on information available at the lease’s commencement date to determine the present value of its lease payments. Operating lease payments are recognized on a straight-line basis over the lease term. We had no financing leases as of June 30, 2022 and December 31, 2021. The Company adopts a 5.26 2.57 During the six months ended June 30, 2022, the Company enter into new lease arrangements, and accounted as per ASC Topic 842, the ROU asset and lease obligation of $ 243,186 The Company excluded short-term leases (those with lease terms of less than one year at inception) from the measurement of lease liabilities or right-of-use assets. The following tables summarize the lease expense, as follows: Schedule of Lease expenses June 30, 2022 June 30, 2021 Operating lease expense (per ASC 842) $ 139,420 $ 20,668 Short-term lease expense (other than ASC 842) 4,653 810 Total lease expense $ 144,073 $ 21,478 As of June 30, 2022, right-of-use assets were $ 710,586 719,618 As of December 31, 2021, right-of-use assets were $ 627,968 629,130 Components of Lease Expense We recognize lease expense on a straight-line basis over the term of our operating leases, as reported within “general and administrative” expense on the accompanying consolidated statement of operations. Future Contractual Lease Payments as of June 30, 2022 The below table summarizes our (i) minimum lease payments over the next five years, (ii) lease arrangement implied interest, and (iii) present value of future lease payments for the next three years ending June 30: Schedule of Future Contractual Lease Payments Years ended June 30, Operating lease amount 2023 $ 316,436 2024 266,661 2025 137,841 2026 17,760 Total 738,698 Less: interest (19,080 ) Present value of lease liabilities $ 719,618 Less: non-current portion 426,650 Present value of lease liabilities – current liability $ 292,968 |
DUE TO FIRST INSURANCE FUNDING
DUE TO FIRST INSURANCE FUNDING | 6 Months Ended |
Jun. 30, 2022 | |
Due To First Insurance Funding | |
DUE TO FIRST INSURANCE FUNDING | NOTE-15 DUE TO FIRST INSURANCE FUNDING On October 7, 2021, the Company purchased the Directors and Officers (D&O) insurance at a premium fee of $ 990,000 75 990,000 The Company paid the down-payment of $247,500 (25%) and remaining balance $742,500 (75%) to be repaid by 10 installments until August 7, 2022. 5.35 4,429 0 For the three months ended June 30, 2022 and 2021, the Company recognized the amortization of interest expense of $ 384 0 During the six months ended June 30, 2022 the Company has repaid the installments for $ 454,430 148,137 During the year ended December 31, 2021 the Company has repaid the installments for $ 151,476 596,047 Future contractual amortization of debt as of June 30, 2022 The below table summarizes our (i) minimum payments in the next twelve months, (ii) implied interest, and (iii) present value of future payments in the next twelve months: Schedule of Future contractual amortization of debt Schedule of Future contractual amortization of debt Year ending June 30, Future payment 2023 $ 150,989 Less: imputed interest (2,852 ) Present value of first insurance funding – current liability $ 148,137 |
LOAN
LOAN | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
LOAN | NOTE-16 LOAN Schedule of loan June 30, 2022 December 31, 2021 (Unaudited) Loan – A (i) $ 22,161 $ — Loan – B (ii) 10,781 — Loan – C (iii) 30,518 — $ 63,460 $ — i) On March 15, 2022, the newly acquired Company borrow loan from credit company of SGD 50,000, approximately US$ 35,937 9 December 15, 2022 30 916 0 916 0 ii) On January 23, 2022, the newly acquired Company borrow loan from credit company of SGD 30,000, approximately US$ 21,562 12 January 23, 2023 30 440 0 440 0 iii) On August 17, 2021, the newly acquired Company borrow loan from bank of SGD 50,000, approximately US$ 35,937 60 August 31, 2026 4.75 121 0 121 0 |
SHAREHOLDERS_ DEFICIT
SHAREHOLDERS’ DEFICIT | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
SHAREHOLDERS’ DEFICIT | NOTE-17 SHAREHOLDERS’ DEFICIT Authorized stock The Company is authorized to issue two classes of stock. The total number of shares of stock which the Company is authorized to issue is 100,000,000 shares of capital stock, consisting of 95,000,000 0.0001 5,000,000 0.0001 The holders of the Company’s common stock are entitled to the following rights: Voting Rights Dividend Right Liquidation Right Other Matters Common stock outstanding As of June 30, 2022 and December 31, 2021, the Company had a total of 24,544,443 19,732,406 On February 10, 2021, the Company effected a 750 for 1 stock split of the issued and outstanding shares of the Company’s common stock. The number of authorized shares and par value remain unchanged. All share and per share information in this financial statements and footnotes have been retroactively adjusted for the periods presented, unless otherwise indicated, to give effect to the forward stock split. On September 21, 2021, the Company effected a 1 for 2.5 An additional result of the stock split was that the stated value of preferred stock, the number of designated shares and outstanding shares of each series of preferred stock was unchanged in accordance to the respective certificate of designations. The number of authorized shares of preferred stock remained unchanged as a result of the stock split and reverse stock split described above. On November 8, 2021, the Company entered into an underwriting agreement with Maxim Group LLC, related to the offering of 2,888,889 9.00 236,111 26,000,001 2,124,999 Upon the IPO Closings, all outstanding shares of preferred stock series A, B, B-1, C and C-1 were automatically converted into 888,889 shares, 764,400 shares, 48,000 shares, 465,600 shares and 4,195,200 shares of the Company’s common stock for the value of $8,000,000, $3,412,503, $466,720, $8,353,373 and $5,536,832, respectively. During the six months ended June 30, 2022 and 2021, the Company issued 2,497 0 On February 8, 2022, the Company entered into an underwriting agreement (the “Underwriting Agreement”) with Maxim Group LLC (the “Underwriter”), related to the offering of 3,484,845 shares including over-allotment (the “Shares”) of the Company’s common stock,. Each Share is being sold together with one Warrant to purchase one Share at a combined offering price of $3.30. During the six months ended June 30, 2022, a total of 70,791 warrants were exercised in exchange to 187,300 shares of its common stock for the value of $412,890. During the six months ended June 30, 2021, no warrants were exercised to common stock. During the three months ended June 30, 2022, a total of 91 warrants were exercised in exchange to 27,300 shares of its common stock for the value of $55,890. During the three months ended June 30, 2021, no warrants were exercised to common stock. During six months ended June 30, 2022, the Company issued 486,000 1,524,059 During three months ended June 30, 2022, the Company issued 370,000 shares of our common stock to consultants in exchange for consulting services value of $ 1,060,500 During the six months ended June 30, 2022, the Company issued 54,797 148,219 During the three months ended June 30, 2022, the Company issued 29,353 61,750 During three and six months ended June 30, 2022, the Company issued 13,273 119,457 During February 2022, the Company issued 226,629 shares of its common stock for share exchange with the subsidiary’s 100% non-controlling interest at $3.53, total amounting to $800,000 and valued it at par as there was no change in the control over the subsidiary. During May 2022, the Company issued partial first tranche 40,604 shares of its common stock for share exchange with the subsidiary’s 100% controlling interest at $ 2.05, total amounting to $ 1,000,000 less assumed liabilities of $ 661,215 and valued it at par as there was no change in the control over the subsidiary. .As of June 30, 2022 the accrued consideration liability outstanding is approximately $ 255,000 Warrants In August 2019, the Company issued 21,000 shares of warrants to one employee for compensation of his service to purchase 21,000 shares of its common stock for the fair value of $17,500. Each share of warrant is converted to one share of common stock at an exercise price of $0.0001. The warrants will expire on the second (2nd) anniversary of the initial date of issuance. As at December 31, 2019, none of the warrants have been exercised. 21,000 shares fully exercised during the year ended December 31, 2020. In December 2020, the Company issued certain numbers of warrants pursuant to the Series C-1 Subscription Agreement. Each redeemable warrant is entitled the holder to purchase one C-1 preferred share at a price of $ 420 1,880 In December 2020, a total of 838 warrants are exercised in exchanged to 838 Series C-1 preferred shares. (refer note 13 for details). Below is a summary of the Company’s issued and outstanding warrants as of June 30, 2022 and December 31, 2021: Schedule of warrants issued and outstanding Warrants Weighted average exercise price Weighted Outstanding as of December 31, 2020 (a) 2,047 $ 420 0.6 Issued (b) 2,120 $ 420 0.5 Issued (a) 144,445 $ 9.90 5.0 Exercised (307 ) $ (420 ) — Expired — — — Outstanding as of December 31, 2021 148,305 $ 20.57 4.88 Issued (c) 3,728,784 3.28 4.11 Exercised (79,661 ) $ (3.28 ) 0.5 Expired (3,500 ) (420 ) — Outstanding as of June 30, 2022 3,793,928 $ 3.57 4.45 There is no intrinsic value for warrants as of June 30, 2021 and December 31, 2020. (a) Common stock will be issued if those warrants exercise the 144,445 warrants having intrinsic value of $-0- and $73,667 as of June 30, 2022 and December 31, 2021, respectively. (b) Preferred stock series C-1 will be issued if those warrants exercise. Those preferred stock series C-1 was automatically converted into the 0 and 1,158,000 common stock with the intrinsic value of $0 and $10,433,580 as of June 30, 2022 and December 31, 2021, respectively. (c) Common stock will be issued if those warrants exercise 3,649,484 warrants having no intrinsic value as of June 30, 2022. On April 19, 2021, the Company extended the expiry date of the Warrant issued to Preferred Series C-1 holder by six months from June 30, 2021 to December 31, 2021. Further, on November 16, 2021, the Company extended the expiry date of the Warrant issued to Preferred Series C-1 holder by six months from December 31, 2021 to June 30, 2022. The Company considered this warrant as permanent equity per ASC Topic 815-40-35-2, the warrants would not be marked to market at each financial reporting date. However, where there is a subsequent changes in assumptions related warrants (in the instant case, an extension of the expiration date of the warrants), the difference between the amount originally recorded and the newly calculated amount, based upon the changed assumptions, is determined and the difference between the before and after valuation is recorded as an expense, with the corresponding credit to additional paid-in capital. The Company recorded additional warrants modification expense of $ 58,363 The Company determined the fair value using the Black-Scholes option pricing model with the following assumptions Schedule of Stock options assumptions Schedule of Stock option assumptions Before modification After Modification Dividend rate 0 % 0 % Risk-free rate 0.06 % 0.12 % Weighted average expected life (years) 9 18 Expected volatility 25 % 25 % Exercise price $ 1.4 $ 1.4 (a) The Company considered 25% volatility as from inception through the date of the Company common stocks. Director’s Stock option On December 8, 2021, the Board of Directors approved a grant to Dennis Nguyen of a 10-year options to purchase 1,945,270 shares options at an exercise price of $6.49 per share that will be exercisable at any time. Schedule of Stock Option Schedule of Director’s stock awards Share option Weighted average exercise price Weighted Outstanding as of December 31, 2020 — — — Granted 1,945,270 6.49 10 Exercised — — — Expired — — — Outstanding as of December 31, 2021 1,945,270 $ 6.49 10 Granted — — — Exercised — — — Expired — — — Outstanding as of June 30, 2022 1,945,270 $ 6.49 9.5 The total fair value of options vested during the six months ended June 30, 2022 and year ended December 31, 2021 was $- 0 12,159,652 The Company determined the fair value using the Black-Scholes option pricing model with the following assumptions for the six months ended June 30, 2022 and years ended December 31, 2021 Schedule of Stock option assumptions December 31, 2021 Dividend rate 0 % Risk-free rate 1.52 % Weighted average expected life (years) 10 Expected volatility 130 % Share price $ 6.49 Director’s stock awards Schedule of Director’s stock awards Share option Weighted average exercise price Weighted average remaining contractual life (in years) Unvested as of December 31, 2020 — — — Issued 814,950 7.65 2 Vested (162,990 ) 7.65 — Cancelled — — — Unvested as of December 31, 2021 651,960 $ 7.65 1.67 Issued — — — Vested (162,990 ) 7.65 — Cancelled — — — Unvested as of June 30, 2022 488,970 $ 7.65 1.17 Shares Unvested at period-end 488,970 $ 7.65 Below is the unvested shares vesting schedule at future years Schedule of Future years Year ended December 31 2022 162,990 Year ended December 31 2023 325,980 Total 448,970 The Company issued 814,950 shares of its common stock on September 1, 2021 (“start date”) of which 651,960 shares shall be subject to vesting. The vesting shares shall be vested in accordance with the following vesting schedule: 162,990 vesting shares will vest every six-months for a two-year period from the start date, with the first vesting date being March 1, 2022. For the six months ended June 30, 2022 and 2021, the Company recognized the amortization of stock compensation expense of $ 1,802,584 0 634,240 0 |
PREFERRED STOCKS AND WARRANTS
PREFERRED STOCKS AND WARRANTS | 6 Months Ended |
Jun. 30, 2022 | |
Preferred Stocks And Warrants | |
PREFERRED STOCKS AND WARRANTS | NOTE-18 PREFERRED STOCKS AND WARRANTS As of June 30, 2022 and December 31, 2021, the Company’s preferred stocks have been designated as follow: Schedule of Preferred stocks No. of shares Stated Value Series A Convertible Preferred Stock 10,000 $ 1,000 Series B Convertible Preferred Stock 10,000 $ 1,336 Series B-1 Convertible Preferred Stock 15,000 $ 2,917 Series C Convertible Preferred Stock 15,000 $ 5,763 Series C-1 Convertible Preferred Stock 30,000 $ 420 Series X Super Voting Preferred Stock 3,500 $ 0.0001 All of the Series A, B, B-1, C and C-1 Preferred Shares were issued at a value of respective stated value per share. These all Series of Preferred Shares contain a conversion option, are convert into a fixed number of common shares or redeemable with the cash repayment at the liquidation, so as a result of this liquidation preference, under U.S GAAP, the Company has classified the all these Series of Preferred Shares within mezzanine equity in the condensed consolidated balance sheet. Series X Super Voting Preferred Stock was issued at a par value. This Series of Preferred Shares does not contain a conversion option, so as a result of this liquidation preference, under U.S GAAP, the Company has classified the this Series of Preferred Shares within permanent equity in the consolidated balance sheet. Voting Rights: (a) increase or decrease the par value of the shares of the Series A Preferred Stock, alter or change the powers, preferences or rights of the shares of Series A Preferred Stock or create, alter or change the powers, preferences or rights of any other capital stock of the Company if after such alteration or change such capital stock would be senior to or pari passu with Series A Preferred Stock; and (b) adversely affect the shares of Series A Preferred Stock, including in connection with a merger, recapitalization, reorganization or otherwise. (2) The affirmative vote of at least a majority of the holders of the shares of the Series A Preferred Stock shall be necessary to: (a) enter into a transaction or series of related transactions deemed to be a liquidation, dissolution or winding up of the Corporation, or voluntarily liquidate or dissolve; (b) authorize a merger, acquisition or sale of substantially all of the assets of the Company or any of its subsidiaries (other than a merger exclusively to effect a change of domicile of the Company to another state of the United States); (c) increase or decrease (other than decreases resulting from conversion of the Series A Preferred Stock) the authorized number of shares of the Company’s preferred stock or any series thereof, the number of shares of the Company’s common stock or any series thereof or the number of shares of any other class or series of capital stock of the Company; and (d) any repurchase or redemption of capital stock of the Company except any repurchase or redemption at cost upon the termination of services of a service provider to the Company or the exercise by the Company of contractual rights of first refusal as applied to such capital stock. Dividend Rights Conversion Rights Conversion Rights Liquidation Rights: Other Matters Series A Preferred Shares There was no Upon the IPO Closings, all outstanding shares of Series A Preferred Shares were automatically converted into 888,889 8,000,000 9 As of June 30, 2022 and December 31, 2021, there were 0 0 Series B Preferred Shares There was no Upon the IPO Closings, all outstanding shares of Series B Preferred Stock were automatically converted into 764,400 3,412,503 4.46 As of June 30, 2022 and December 31, 2021, there were 0 0 Series B-1 Preferred Shares There was 0 Series B-1 Preferred Shares issued during the three and six months ended June 30, 2022 and 2021. Upon the IPO Closings, all outstanding shares of Series B-1 Preferred Shares were automatically converted into 48,000 466,720 9.72 As of June 30, 2022 and December 31, 2021, there were 0 0 Series C Preferred Shares There was no Upon the IPO Closings, all outstanding shares of Series C Preferred Shares were automatically converted into 465,600 8,353,373 17.9 As of June 30, 2022 and December 31, 2021, there were 0 0 Series C-1 Preferred Shares The Company accounts for warrants issued in accordance with the guidance on “ Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity Upon the IPO Closings, all outstanding shares of Series C-1 Preferred Shares were automatically converted into 4,195,200 5,536,832 1.21 As of June 30, 2022 and December 31, 2021, there were 0 0 Series X Super Voting Preferred Shares In August 2021, the Company created a new series of preferred stock to be titled “Series X Super Voting Preferred Stock”, at $0.0001 par value, consisting of 3,500 authorized shares and to provide to such preferred stock certain rights and privileges including but not limited to the right to 10,000 votes per share (post reverse split: 4,000 votes per share) to vote on all matters that may come before the stockholders of the Corporation, voting together with the common stock as a single class on all matters to be voted or consented upon by the stockholders but is not entitled to any dividends, liquidation preference or conversion or redemption rights, so accordingly it is accounted as an equity classification. As of June 30, 2022 and December 31, 2021, there were 3,500 3,500 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE-19 INCOME TAXES For the six months ended June 30, 2022 and 2021, the local (“Nevada”) and foreign components of loss before income taxes were comprised of the following: Schedule of provision for income taxes Six months ended June 30, 2022 2021 Tax jurisdiction from: - Local $ 11,263,271 $ 6,423,481 - Foreign 2,912,629 (667,610 ) Loss before income taxes $ 14,175,900 $ (7,091,091 ) The provision for income taxes consisted of the following: Schedule of provision for income taxes Six months ended June 30, 2022 2021 Current: - United States $ — $ — - Singapore — — - Vietnam — — - Philippines — — - India 2,099 8,640 Deferred: - United States — — - Singapore — — - Vietnam — — - Philippines — — - India — — Income tax expense $ 2,099 $ 8,640 The effective tax rate in the years presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rate. The Company operates in various countries: Singapore and Vietnam that are subject to taxes in the jurisdictions in which they operate, as follows: United States The Company is registered in the Nevada and is subject to the tax laws of United States. A reconciliation of the income tax provision (benefit) by applying the statutory United States federal income tax rate to income (loss) before income taxes is as follows: Schedule of Effective Income Tax Rate Reconciliation Six months ended June 30, 2022 2021 Loss before income taxes $ (11,263,271 ) $ (6,423,481 ) Statutory income tax rate 21 % 21 % Income tax expense at statutory rate (2,365,287 ) (1,348,931 ) Tax effect of allowance 2,365,287 1,348,931 Income tax expense $ — $ — As of June 30, 2022, the operation in the United States incurred $15,983,953 $3,356,630 Singapore The Company’s subsidiary is registered in the Republic of Singapore and is subject to the tax laws of Singapore. Schedule of Effective Income Tax Rate Reconciliation Six months ended June 30, 2022 2021 Loss before income taxes $ (1,787,435 ) $ (419,416 ) Statutory income tax rate 17 % 16 % Income tax expense at statutory rate (303,864 ) (67,107 ) Tax effect of allowance 303,864 67,107 Income tax expense $ — $ — As of June 30, 2022, the operations in Singapore incurred $2,964,941 $504,040 Vietnam The Company’s subsidiary operating in Vietnam is subject to the Vietnam Income Tax at a standard income tax rate of 20 Schedule of Effective Income Tax Rate Reconciliation Six months ended June 30, 2022 2021 Loss before income taxes $ (966,387 ) $ (260,623 ) Statutory income tax rate 20 % 20 % Income tax expense at statutory rate (193,277 ) (52,125 ) Tax effect of allowance 193,277 52,125 Income tax expense $ — $ — As of June 30, 2022, the operation in the Vietnam incurred $ 2,268,477 453,695 India The Company’s subsidiary operating in India is subject to the India Income Tax at a standard income tax rate of 25 Schedule of Effective Income Tax Rate Reconciliation Six months ended June 30, 2022 2021 Profit before income taxes $ 8,530 $ 12,429 Statutory income tax rate 25 % 25 % Income tax expense at statutory rate 2,133 3,107 Tax effect of allowance (2,133 ) (3,107 ) Income tax expense $ — $ — As of June 30, 2022, the operation in the India incurred $ 8,530 of net operating gain. The Company has provided for a full tax effect allowance against the current and deferred tax expenses of $ 2,133 . Philippines The Company’s subsidiary operating in Philippines is subject to the Philippines Income Tax at a standard income tax rate of 25% during its tax year. The reconciliation of income tax rate to the effective income tax rate for the six months ended June 30, 2022 and 2021 is as follows: Schedule of Effective Income Tax Rate Reconciliation Six months ended June 30, 2022 2021 Loss before income taxes $ (167,337 ) $ — Statutory income tax rate 25 % 25 % Income tax expense at statutory rate 41,834 — Tax effect of allowance (41,834 ) — Income tax expense $ — $ — As of June 30, 2022, the operation in the Philippines incurred $ 167,337 41,834 Deferred tax assets and liabilities are recognized for future tax consequences between the carrying amounts of assets and liabilities and their respective tax basis using enacted tax rates in effect for the tax year in which the differences are expected to reverse. Significant deferred tax assets and liabilities of the Company as of June 30, 2022 and December 31, 2021 consist of the following: Schedule of Deferred Tax Assets and Liabilities Schedule of Deferred Tax Assets and Liabilities June 30, 2022 December 31, 2021 Deferred tax assets: Software intangibles (U.S) $ 150,465 $ 150,465 Deferred Stock Compensation (U.S.) 5,864,670 5,864,670 Net operating loss carryforwards - United States 3,356,630 1,875,143 - Singapore 504,040 272,937 - Vietnam 453,695 260,418 - India — — - Philippines 41,834 — 10,371,334 8,423,632 Less: valuation allowance (10,371,334 ) (8,423,632 ) Deferred tax assets, net $ — $ — The Internal Revenue Code includes a provision, referred to as Global Intangible Low-Taxed Income (“GILTI”), which provides for a 10.5 % tax on certain income of controlled foreign corporations. We have elected to account for GILTI as a period cost if and when occurred, rather than recognizing deferred taxes for basis differences expected to reverse. The Company is subject to taxation in the U.S. and various foreign jurisdictions. U.S. federal income tax returns for 2018 and after remain open to examination. We and our subsidiaries are also subject to income tax in multiple foreign jurisdictions. Generally, foreign income tax returns after 2017 remain open to examination. No income tax returns are currently under examination. As of June 30, 2022 and 2021, the Company does no no |
PENSION COSTS
PENSION COSTS | 6 Months Ended |
Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |
PENSION COSTS | NOTE-20 PENSION COSTS The Company is required to make contribution to their employees under a government-mandated defined contribution pension scheme for its eligible full-times employees in all countries in which the Company operates. The Company is required to contribute a specified percentage of the participants’ relevant income based on their ages and wages level. During the six months ended June 30, 2022 and 2021, $45,762 $3,986 $37,672 $1,925 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE-21 RELATED PARTY TRANSACTIONS From time to time, the shareholder and director of the Company advanced funds to the Company for working capital purpose. Those advances are unsecured, non-interest bearing and due on demand. The Company paid and accrued to the directors, the total salaries of $ 596,119 0 163,280 251,804 The Company paid and accrued to the directors, the total salaries of $ 378,060 0 26,001 251,804 The company subsidiaries paid their one officer, total professional fee of $ 5,599 8,316 The company subsidiaries paid their one officers, total professional fee of $ 1,151 4,752 The Company paid and accrued to its shareholders, total professional fee of $ 1,328,010 150,000 70,000 230,785 The Company paid and accrued to its shareholders, total professional fee of $ 1,151,592 150,000 77,080 230,785 The Company issued 370,000 shares to related parties for total professional fee of $ 1,060,500 0 The Company issued 316,092 shares to related parties for total salaries of $ 899,996 0 On May 20, 2022, the Company’s has internal restructuring of SOPA Technology Company Limited portion, who was previously under 100% holding of SOPA Technology Pte. Ltd., effectively 95% under Society Pass Incorporated, now 100% holding of Leflair Incorporated, effectively 100% under Society Pass Incorporated. Apart from the transactions and balances detailed elsewhere in these accompanying condensed consolidated financial statements, the Company has no other significant or material related party transactions during the periods presented. |
CONCENTRATIONS OF RISK
CONCENTRATIONS OF RISK | 6 Months Ended |
Jun. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS OF RISK | NOTE-22 CONCENTRATIONS OF RISK The Company is exposed to the following concentrations of risk: (a) Major customers For the six months ended June 30, 2022 and 2021, the customers who accounted for 10% or more of the Company’s revenues and its outstanding receivable balances at period-end dates, are presented as follows: Schedule of concentrations of risk Six months ended June 30, 2022 June 30, 2022 Customers Revenues Percentage Accounts Customer A $ 783,141 82.94 % $ 34,062 Customer B $ 109,567 11.60 % $ ( 11,818 ) Three months ended June 30, 2022 June 30, 2022 Customers Revenues Percentage Accounts Customer A $ 392,739 88.24 % $ — Customer B $ 73,876 14.80 % — Six months ended June 30, 2021 June 30, 2021 Customers Revenues Percentage Accounts Customer A $ 14,797 85.59 % $ — Three months ended June 30, 2021 June 30, 2021 Customers Revenues Percentage Accounts Customer A $ 7,009 88.11 % $ — The customers are located in Vietnam except one located in Indonesia. (b) Major vendors For the three and six months ended June 30, 2022 and 2021, the vendors who accounts for 10% or more of the Company’s hardware purchases and software cost and its outstanding payable balances as at period-end dates, are presented as follows: Three and Six months ended June 30, 2022 June 30, 2022 Vendors Purchases Percentage Accounts Vendor A $ — - $ — Six months ended June 30, 2021 June 30, 2021 Vendors Purchases Percentage Accounts Vendor A $ 12,436 11.86 % $ — Three months ended June 30, 2021 June 30, 2021 Vendors Purchases Percentage Accounts Vendor A $ 12,436 14.37 % $ — All vendors are located in Vietnam. (c) Credit risk Financial instruments that are potentially subject to credit risk consist principally of trade receivables. The Company believes the concentration of credit risk in its trade receivables is substantially mitigated by its ongoing credit evaluation process and relatively short collection terms. The Company does not generally require collateral from customers. The Company evaluates the need for an allowance for doubtful accounts based upon factors affecting the credit risk of specific customers, historical trends and other information. (d) Exchange rate risk The reporting currency of the Company is US$, to date the majority of the revenues and costs are denominated in VND, SGD, PHP and INR and a significant portion of the assets and liabilities are denominated in VND, SGD and INR. As a result, the Company is exposed to foreign exchange risk as its revenues and results of operations may be affected by fluctuations in the exchange rate between US$ and VND, SGD, PHP and INR. If VND, SGD, PHP and INR depreciates against US$, the value of VND, SGD, PHP and INR revenues and assets as expressed in US$ financial statements will decline. The Company does not hold any derivative or other financial instruments that expose to substantial market risk. (e) Economic and political risks The Company’s operations are conducted in the Republic of Vietnam. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the Vietnam, and by the general state of the Vietnam economy. The Company’s operations in the Vietnam and India are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in Vietnam and India, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2022 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE-23 COMMITMENTS AND CONTINGENCIES As of June 30, 2022, the Company has no material commitments or contingencies . Right issues under Series C-1 preferred stock The Company has issued warrant pursuant to the Series C-1 Subscription Agreement. Each redeemable warrant entitles the holder to purchase two (2) common shares at a price of $168 Financing arrangement (due to a shareholder) In February 2018, the Company entered into MOU with Connect Investment Pte Ltd (Enter Asia) for capital alliance for approximately 27% of shareholdings in the Company. Further, in August 2018, the said MOU was modified and shareholding was revised from 27% to 10% in the Company. However, subsequently in October 2020, it was agreed between both the parties to cease the said MOU with the understanding that there is no current and future obligation with either of them i.e., neither Enter Asia to make investment in the Company nor the Company to issue shares to Enter Asia. Further, the Enter Asia is going to get the shares of the Hottab Holdings Ltd (HHL) for the amount so far invested in the Company and therefore the amount due to Enter Asia is reclassified into the amount due to shareholder “Hottab Holdings Ltd”. SOSV In January 2019, the HPL entered into stock purchase agreement and accelerator contract for equity (ACE) with SOSV IV LLC (SOSV) whereby the HPL will issue shares representing 5% of their capital stock for the amounts of $168,000 $75,000 $48,000 $45,000 $75,000 117,000 100% $75,000 75,000 Service contracts The Company carries various service contracts on its vendors for repairs, maintenance and inspections. All contracts are short term and can be cancelled. Material contracts On May 28, 2021, the Company entered into a business cooperation agreement with Paytech Company Limited (Strategic Partners) to provide payment integration and loyalty services to the platform that allows merchants to process transactions with consumers. As of date, this program have not started and are expected to commence later in 2022 or in 202. On August 15, 2021, the Company entered into a business cooperation agreement with Rainbow Loyalty Company Limited (Strategic Partners) to provide loyalty services for merchants on the platform. As of June 30, 2022, this program has not started and is expected to commence in the latter part of 2022 or early 2023. On May 26, 2021, the company entered into a business cooperation agreement with TikiNow Smart Logistic Limited Company to provide warehouse service, packing service, delivery service and payment collection of online orders that paid by cash (COD). This agreement has been implemented since effective on October 1, 2021. On May 15, 2021, the company entered into a business cooperation agreement with AsiaPay Company Limited (Partner) to provide payment gateway service for customers who make payment by credit cards on the platform. This agreement has been implemented effective September 7th, 2021. On December 6, 2021, the Company entered into two consulting agreements with China-America Culture Media Inc. and New Continental Technology Inc., acting as Consultant to assist the Company in completing certain Business Opportunities with potential partners until February 28, 2023. The consideration of the service are $3,250,000 and $3,190,000. Executive service agreements On April 1, 2017 the Company entered into an at-will employment agreement with Dennis Nguyen, its Chairman and Chief Executive Officer. The Employment Agreement provides for a monthly salary of $ 40,000 250 250,000 On September 1, 2021 the Company entered into a 5-year employment agreement with Raynauld Liang, its Chief Financial Officer and Singapore Country General Manager. The employment agreement provides Mr. Liang with compensation of (i) an annual base salary of $ 240,000 (ii) an annual discretionary incentive cash bonus with a minimum target of 25% of base salary; (iii) 814,950 shares of the Company’s common stock (taking into account the Company’s stock split 1:750 and reverse stock split 1:2.5), of which 651,960 shares are subject to vesting over a two-year period; and (iv) all other executive benefits sponsored by the Company. If a change of control of the Company occurs and if at the time of such change of control the Company’s common stock is trading at a price that is double the initial public offering price, then Mr. Liang will be entitled to a cash bonus equal to three (3) times his base salary. If Mr. Liang is terminated other than for cause or resigns for good reason, he will be entitled to receive continued base salary until the earlier of (x) the anniversary date of such termination and (y) the end of the 5-year term of the employment agreement; provided, however, if the termination is after September 1, 2022, then the period set forth in clause (x) shall be 18 months from the date of the employment agreement. On November 16, 2021, the Board of Directors awarded Dennis Nguyen a 10-year option to purchase 1,945,270 6.49 Litigation From time to time, the Company may become involved in various lawsuits and legal proceedings, which arise, in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm the Company’s business. The Company is not aware of any such legal proceedings that will have, individually or in the aggregate, a material adverse effect on its business, financial condition or operating results. The litigation docket of Carmel, Milazzo & Feil LLP (the Company’s outside counsel) Rahul Narain v. Society Pass, Inc. Supreme Court of the State of New York, County of New York, Index 656956/2019 Thomas O’Connor & CVO Advisors Pte. Ltd. v. Society Pass, Inc. Supreme Court of the State of New York, County of New York, Index 656938/2019 Dennis Nguyen v. Thomas O’Connor Supreme Court of the State of New York, County of New York, Index 651015/2020 The Company is currently litigating three cases pending in the Supreme Court for the State of New York, New York County. Two cases are employment actions filed by former employees who seek compensation alleged to be due pursuant to agreements with the Company. Both of the employees are represented by the same counsel and filed their cases in the Supreme Court of the State of New York, County of New York, in December 2019. In one of those actions, a former employee claims entitlement to compensation and a bonus totaling $566,000 and 39,000-58,500 shares of Company common stock, together with costs. The Company responded to the complaint and also asserted counterclaims in the proceeding for $1,500,000 to $4,000,000 plus punitive damages, together with interest and costs, arising from, inter alia, the former employee’s breach of contract, unfair competition, misappropriation of trade secrets and breach of fiduciary duty. The former employee has responded to the Company’s counterclaims and this action is in the discovery phase of the litigation. In the other employment action, another former employee claims entitlement to salary payments and expense reimbursement in the amount of $122,042.60, plus liquidated damages, together with costs. This former employee also claims entitlement to 516,300 to 760,800 shares of the Company’s common stock. In addition, this action also includes claims by a plaintiff-entity alleging entitlement to $8 million in shares of the Company’s Series A Preferred stock. The Company responded to the complaint and also asserted counterclaims against the former employee in the proceeding for $1,500,000 to $2,000,000 plus punitive damages, together with costs, arising from, inter alia, the former employee’s breach of contract, breach of fiduciary duty, tortious interference and fraud. The former employee has responded to the Company’s counterclaims and this action is still in the discovery phase of litigation. The third case also involves one of those former employees; therein, a Company affiliate filed suit in February 2020 seeking enforcement, by way of specific performance, of an agreement which entitles the affiliate to purchase all of the 99 percent of the shares of the plaintiff-entity which alleges entitlement to $8 million in shares of the Company’s Series A Preferred Stock in one of the employment actions described above. The former employee has responded to the Company’s complaint in this action with a motion to dismiss, which was later withdrawn by same, and then by way of an answer without counterclaims. The judge assigned to this action has announced his retirement at the end of the calendar year; it is unclear to whom the case will be assigned in the future. The Company was in an AAA arbitration defending allegations of breach of an agreement. The Demand for Arbitration therein, dated August 25, 2020, asserts that the Petitioner, an LLC, had an agreement with the Company and its CEO granting the Petitioner the right to require the Company to redeem certain common stock in the Company for a cash payment. The Demand alleges that the Petitioner submitted a Redemption Notice, as required under the alleged agreement, obligating the Company to redeem the shares. The Demand alleges that the failure of the Company to redeem the shares and pay Petitioner further obligates the Company to provide additional common stock to the Petitioner. The amount alleged to be due to the Petitioner as of July 31, 2020 was said to be $590,461.94 and growing daily while the number of additional common stock shares alleged to be due to Petitioner as of July 31, 2020 was said to be 283,417,033 and growing, daily. The Company has submitted a total and general denial of the allegations of the Demand. The matter has been assigned to an arbitrator and a Preliminary Hearing and Scheduling Order was issued in or around November 9, 2020. Dispositive motions were due at the end of January 2021 but otherwise this matter was in the discovery phase with any Final Hearing before the arbitrator tentatively scheduled for mid-September 2021. On May 21, 2021, the Company agreed to settle the matter for the sum of $ 550,000 $250,000 $250,000 $300,000 550,000 SOSV IV LLV v. Society Pass Inc., et al. United States District Court for New Jersey, Index No. 21-cv-12386 On or about March 5, 2021, SOSV IV LLC (“SOSV”) sent a demand letter to the Company in regard to its investment in Hottab Pte. Ltd. (“Hottab”). Thereafter, SOSV filed suit in the District Court for New Jersey on June 10, 2021. In this lawsuit, SOSV alleges that it entered into an investment arrangement with Hottab in which SOSV was to receive five percent (5%) of the common stock of Hottab and entered into an Accelerator Contract for Equity (the “ACE”) pursuant to which it alleges to have invested a sum of $ 168,000 336,000 SOSV further alleges that subsequent to a term sheet between the Company and Hottab being executed, the Company entered into an agreement to purchase one hundred percent (100%) of the issued and outstanding shares of Hottab from Hottab Holdings Limited (“Hottab Holdings”). As SOSV does not have any interest in Hottab Holdings, it alleges it did not receive any consideration as allegedly provided under the ACE. Upon these allegations, SOSV asserts causes of action sounding in fraudulent misrepresentation/concealment, breach of contract, breach of the covenant of good faith and fair dealing, quantum meruit and/or unjust enrichment, promissory estoppel, oppression of minority shareholder, and breach of fiduciary duties. SOSV seeks damages in the amount of $336,000 Initially, SOSV filed suit in the District Court for New Jersey on June 10, 2021. SOSV voluntarily dismissed its New Jersey lawsuit and on October 29, 2021, re-filed the action in the Southern District of New York. The Southern District of New York lawsuit was also voluntarily dismissed by SOSV. SOSV has recently re-filed the suit in the Supreme Court of the State of New York, County of New York. The most recently filed complaint contains largely similar allegations and asserts causes of action sounding in fraudulent misrepresentation/concealment, intentional interference with contract, breach of the implied covenant of good faith and fair dealing, quantum meruit/unjust enrichment, oppression of minority shareholder, breach of fiduciary duty, and recission (or in the alternative declaration of ownership interest). The most recently filed complaint demands $336,000 and damages equal to the value of SOSV’s alleged ownership interest in Hottab, or alternatively an Order compelling the issuance of shares in SoPa in an amount equal to Plaintiff’s ownership interest in Hottab at the time of the Agreement of Purchase and Sale. SOSV also seeks disgorgement, though this does not include any pertinent dollar figure. The Company denies the accusations of SOSV and intends to vigorously defend this matter. As the lawsuit is still in the pleadings stage, we are unable to prognosticate a likelihood of success. The Company reserved a provision for $ 75,000 As of June 30, 2022, the Company had a total of $ 240,981 As of June 30 2022, the Company expects no possible loss from these legal proceedings and no provision is accrued accordingly. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE-24 SUBSEQUENT EVENTS In accordance with ASC Topic 855, “ Subsequent Events On July 7, 2022, the Company, through its wholly-owned subsidiary, Thoughtful Media Group Incorporated, a Nevada corporation (the “Buyer"), acquired from AdActive Media Group, Inc., a Delaware corporation (the “Seller”), (i) all of the outstanding capital stock of AdActive Media CA, Inc., a California corporation (the “CA Sub”), and (ii) 99.75% of all of the outstanding capital stock of Thoughtful Thailand Limited, a Thailand corporation. The consideration paid to the Seller by the Company and the Buyer, included in a Stock Purchase Agreement, among the Company, Buyer and Seller (the “Stock Purchase Agreement”), was 609,327 shares of the Company’s common stock. The Company also issued the Seller a warrant, expiring on July 7, 2023 , to purchase 203,109 shares of the Company’s common stock at an exercise price of $ 2.1335 . The Company also assumed two loans, with a principal balance of $ 300,000 not including interest, payable by the Seller and the CA Sub (“Assumed Liabilities”). The Seller, however, agreed to indemnify the Company if the Parent or Buyer make payments for any liabilities of the Buyer and the CA sub greater than $ 700,000 , including the Assumed Loans. On July 1, 2022, the Company through the subsidiary “Leflair Incorporated” issued a warrant to purchase 5,900,000 0.60 On July 20, 2022, the Company, through its wholly-owned subsidiary, New Retail Experience Incoroproated, a Philippines corporation (“ the Buyer”) acquired Mangan PH Food Delivery Services Corp., a corporation registered in Philippines at a consideration price of US$ 400,000 132,000 268,000 69,072 134,000 1.94 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation | • Basis of presentation The Company has prepared the accompanying condensed financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. These financial statements are unaudited and, in our opinion, include all adjustments consisting of normal recurring adjustments and accruals necessary for a fair presentation of our condensed balance sheets, statements of operations and other comprehensive loss, statements of stockholders’ deficit and cash flows for the periods presented. Operating results for the periods presented are not necessarily indicative of the results that may be expected for 2022 due to various factors. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been omitted in accordance with the rules and regulations of the SEC. These condensed financial statements should be read in conjunction with the 2021 audited financial statements and accompanying notes filed with the SEC. |
Emerging Growth Company | • Emerging Growth Company We are an “emerging growth company” under the JOBS Act. For as long as we are an “emerging growth company,” we are not required to: (i) comply with any new or revised financial accounting standards that have different effective dates for public and private companies until those standards would otherwise apply to private companies, (ii) provide an auditor’s attestation report on management’s assessment of the effectiveness of internal control over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act, (iii) comply with any new requirements adopted by the Public Company Accounting Oversight Board (“PCAOB”) or a supplement to the auditor’s report in which the auditor would be required to provide additional information about the audit and the financial statements of the issuer or (iv) comply with any new audit rules adopted by the PCAOB after April 5, 2012, unless the SEC determines otherwise. However, we have elected to “opt out” of the extended transition period discussed in (i) and will therefore comply with new or revised accounting standards on the applicable dates on which the adoption of such standards are required for non-emerging growth companies. Section 107 of the JOBS Act provides that our decision to opt out of such extended transition period for compliance with new or revised accounting standards is irrevocable. |
Use of estimates and assumptions | • Use of estimates and assumptions In preparing these condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheet and revenues and expenses during the years reported. Actual results may differ from these estimates. If actual results significantly differ from the Company’s estimates, the Company’s financial condition and results of operations could be materially impacted. Significant estimates in the period include the allowance for doubtful accounts on accounts receivable, incremental borrowing rate used to calculate right of use assets and lease liabilities, valuation and useful lives of intangible assets, valuation of impairment of long-lived assets, valuation of common stock and stock warrants, stock option valuations, imputed interest on due to related parties, inventory valuation, revenue recognition, business acquisition allocation of purchase consideration, and deferred tax valuation allowance. |
Basis of consolidation | • Basis of consolidation The condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company balances and transactions have been eliminated upon consolidation. |
Business Combination | • Business Combination The Company follows Accounting Standards Codification (“ASC”) ASC Topic 805, Business Combinations (“ASC 805”) and ASC Topic 810-10-65, Consolidation. ASC Topic 805 requires most identifiable assets, liabilities, non-controlling interests, and goodwill acquired in a business combination to be recorded at “fair value.” The statement applies to all business combinations, including combinations among mutual entities and combinations by contract alone. Under ASC Topic 805, all business combinations are accounted for by applying the acquisition method. Accounting for goodwill requires significant management estimates and judgment. Management performs periodic reviews of the carrying value of goodwill to determine whether events and circumstances indicate that an impairment in value may have occurred. A variety of factors could cause the carrying value of goodwill to become impaired. A write-down of the carrying value of goodwill could result in a non-cash charge, which could have an adverse effect on the Company’s results of operations. |
Noncontrolling interest | • Noncontrolling interest The Company accounts for noncontrolling interest in accordance with ASC Topic 810-10-45, which requires the Company to present noncontrolling interests as a separate component of total shareholders’ equity on the consolidated balance sheets and the consolidated net loss attributable to the its noncontrolling interest be clearly identified and presented on the face of the consolidated statements of operations and comprehensive loss. |
Segment Reporting | • Segment Reporting ASC Topic 280, “Segment Reporting” establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organization structure as well as information about geographical areas, business segments and major customers in consolidated financial statements. The Company currently operates in two reportable operating segments: (i) e-commerce, (ii) Merchant POS, (iii) Online Grocery and Food and Groceries Deliveries and (iv) Telecommunications Reseller. |
Cash and cash equivalents | • Cash and cash equivalents Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. As of June 30 2022 and December 31, 2021, the cash and cash equivalents amounted to $28,012,846 23,264,777 The Company currently has bank deposits with financial institutions in the U.S. which exceed FDIC insurance limits. FDIC insurance provides protection for bank deposits up to $ 250,000 10,780,926 13,699,082 16,966,211 9,315,695 |
Accounts receivable | • Accounts receivable Accounts receivable are recorded at the invoiced amount and do not bear interest, which are due within contractual payment terms, generally 30 to 90 days from completion of service. Credit is extended based on evaluation of a customer’s financial condition, the customer credit-worthiness and their payment history. Accounts receivable outstanding longer than the contractual payment terms are considered past due. Past due balances over 90 days and over a specified amount are reviewed individually for collectibility. At the end of fiscal year, the Company specifically evaluates individual customer’s financial condition, credit history, and the current economic conditions to monitor the progress of the collection of accounts receivables. The Company considers the allowance for doubtful accounts for any estimated losses resulting from the inability of its customers to make required payments. For the receivables that are past due or not being paid according to payment terms, the appropriate actions are taken to exhaust all means of collection, including seeking legal resolution in a court of law. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. As of June 30, 2022 and December 31, 2021, the allowance for doubtful accounts amounted to $- 0 0 |
Inventories | • Inventories Inventories are stated at the lower of cost or net realizable value, cost being determined on a first-in-first-out method. Costs include hardware equipment and peripheral costs which are purchased from the Company’s suppliers as merchandized goods. The Company provides inventory allowances based on excess and obsolete inventories determined principally by customer demand. During the three and six months ended June 30, 2022 and 2021, the Company recorded an allowance for obsolete inventories of $- 0 0 336,476 221,068 |
Prepaid Expenses | • Prepaid Expenses Prepaid expenses represent future expenses paid in advance, until the associated benefits are realized, the future expense remains at current asset within the next twelve months and non-current asset after twelve months.. Since prepaid expenses are categorized as “current and non-current” assets, the benefits associated with the products or services paid for upfront are expected to be used for the next twelve months and thereafter. Once the benefits of the assets are gradually realized, the prepaid expense is reduced as the asset is expensed off on the statement of operations. |
Property, plant and equipment | • Property, plant and equipment Plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values: Schedule of Expected useful life Expected useful lives Computer equipment 3 Office equipment 5 Renovation 5 Expenditures for repairs and maintenance are expensed as incurred. When assets have been retired or sold, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the results of operations. |
Impairment of long-lived assets | • Impairment of long-lived assets In accordance with the provisions of ASC Topic 360, “ Impairment or Disposal of Long-Lived Assets |
Revenue recognition | • Revenue recognition The Company adopted Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). Under ASU 2014-09, the Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: • identify the contract with a customer; • identify the performance obligations in the contract; • determine the transaction price; • allocate the transaction price to performance obligations in the contract; and • recognize revenue as the performance obligation is satisfied. The Company generates its revenues from a diversified a mix of e-commerce activities (B2C), grocery and food delivery (B2C), telecommunication reseller (B2C) and the services providing to merchants for their business growth (B2B), which are operated under four business segments of e-Commerce (previously mentioned as Consumer Facing Business), grocery and food delivery, telecommunication reseller, and Merchant POS (previously mentioned as Merchant Facing Business). The Company’s performance obligation includes providing the connectivity among merchants and consumers, generally through an online ordering platform. The platform allows merchants to create account, place menu and track their sale reports on the merchant facing application. The platform also allows the consumers to create account and make orders from merchants on the consumer facing application. The platform allows delivering company to accept online delivery request and ship order from merchant to consumer. The Company has online lifestyle platform to enable the consumers to purchase high-end brands of all categories under its own brand name of “Leflair”. Under the deployment of the Company’s smart search engine, consumers search or review their favorite brands among hundreds of choices in Apparel, Bags & Shoes, Accessories, Health & Beauty, Home & Lifestyle, International, Women, Men and Kids & Babies categories. The platform also allows consumers to order from hundreds of vendor choices with personalized promotions based on purchase history and location. The platform has also partnered up with a Vietnam-based delivery company, Tikinow, to offer seamless delivery of product from merchant to consumer’s home or office at the touch of a button. Consumers can place orders for delivery or collect at the Company’s logistics center. Other online platforms include brand name of “Handcart” and “Pushkart” to enable the consumers to purchase grocery and food from difference local grocery and food merchants and deliver to them in their area. The Company also has online telecommunication reseller platform operate under brand name of “Gorilla” to enable the consumers to subscribe local mobile data and overseas internet data in different subscription package. e-Commerce 1) Customer placed orders on the website / app, sales orders report will be generated in the system. The Company will inform its business partners proceed to packaging to the logistic partner warehouse and therefore, logistic partner delivered to the end customer. The sales is recognized when the delivery is completed by the shipper to the end customer. Sale of products are offered with a limited right of return ranging from 3 to 30 days, from the date of purchase and not subject to no product warranty. The Company is considered as a principal in this e-commerce transaction and reported revenue in gross basis as the Company takes the responsibility for fulfillment, retaining the risk for collection, and establishing the price of the products. During the six months ended June 30, 2022 and 2021, the Company has generated the revenue of $ 892,715 0 During the three months ended June 30, 2022 and 2021, the Company has generated the revenue of $ 482,410 0 Merchant POS Software sales consist of: 1) Subscription fees consist of the fees that the Company charge merchants to get on the Merchant Marketing Program. 2) The Company provides optional add-on software services which includes Analytics and Chat box capabilities at a fixed fee per month. 3) The Company collects commissions when they sell third party hardware and equipment (cashier stations, waiter tablets and printers) to merchants. During the six months ended June 30, 2022 and 2021, the Company has generated $ 21,890 16,954 During the three months ended June 30, 2022 and 2021, the Company has generated $ 10,941 7,714 Hardware sales — the Company generally is involved with the sale of on-premise appliances and end-point devices. The single performance obligation is to transfer the hardware product (which is to be installed with its licensed software integral to the functionality of the hardware product). The entire transaction price is allocated to the hardware product and is generally recognized as revenue at the time of delivery because the customer obtains control of the product at that point in time. It is concluded that control generally transfers at that point in time because the customer has title to the hardware, physical possession, and a present obligation to pay for the hardware. Payments for hardware contracts are generally due 30 to 90 days after shipment of the hardware product. The Company records revenues from the sales of third-party products on a “gross” basis pursuant to ASC Topic 606-10 Revenue Recognition – Revenue from Contracts with Customers, when the Company controls the specified good before it is transferred to the end customer and have the risks and rewards as principal in the transaction, such as responsibility for fulfillment, retaining the risk for collection, and establishing the price of the products. If these indicators have not been met, or if indicators of net revenue reporting specified in ASC Topic 606-10 are present in the arrangement, revenue is recognized net of related direct costs. Software subscription fee — The Company’s performance obligation includes providing connectivity to software, generally through a monthly subscription, where the Company typically satisfies its performance obligations prior to the submission of invoices to the customer for such services. The Company’s software sale arrangements grant customers the right to access and use the software products which are to be installed with the relevant hardware for connectivity at the outset of an arrangement, and to be entitled to both technical support and software upgrades and enhancements during the term of the agreement. The term of the subscription period is generally 12 months, with the automatic renewal of another one year, and the subscription license service is billed monthly, quarterly or annually. Sales are generally recorded in the month the service is provided. For clients who are billed on an annual basis, deferred revenue is recorded and amortized over the life of the contract. Payments are generally due 30 to 90 days after delivery of the software licenses. The Company records its revenues, net of value added taxes (“VAT”), which is levied at the rate of 10% on the invoiced value of sales. Grocery and food delivery Customers place order of grocery and food through online platform of “Pushkart” and “Handcart” respectively. Upon received order by the grocery and food merchant, the platform will assign third party delivery man to pick up and deliver the grocery and food to the customers. Revenue are thus recognized at the point of the grocery and food delivered and paid by the customer in cash. During the six months ended June 30, 2022 and 2021, the Company has generated $ 23,836 0 During the three months ended June 30, 2022 and 2021, the Company has generated $ 8,042 0 Telecommunication reseller Local mobile plan - customers subscribe their desired monthly local mobile plan through online platform of “Gorilla” after customer account registration completed. The Company will proceed to register the Sim card and arrange delivery to the customer. Upon the Sim card activation, the system will capture the data usage of each customers at the end of each month, prorated by the package data capacity and monthly subscription rate for revenue recognition. Unused data will be converted to Rewards Point and carry forward to next month for subsequent revenue recognition point. With this, the company also recognize revenue from Rewards Point redemption for subscription offset, voucher redemption, extra data purchase, at the point of transaction accepted through the customer account in the online platform. Overseas internet data plan – customers place order of their desired overseas internet data plan through online platform of “Gorilla” or third party partner platforms. The revenue is recognize at the point of time when the Sim card delivered and activated. During the six months ended June 30, 2022 and 2021, the Company has generated $ 5,642 0 During the three months ended June 30, 2022 and 2021, the Company has generated $ 5,642 0 Contract assets In accordance with ASC Topic 606-10-45-3, contract asset is when the Company’s right to payment for goods and services already transferred to a customer if that right to payment is conditional on something other than the passage of time. The Company will recognize a contract asset when it has fulfilled a contract obligation but must perform other obligations before being entitled to payment. There were no contract assets at June 30, 2022 and December 31, 2021. Contract liabilities In accordance with ASC Topic 606-10-45-2, a contract liability is Company’s obligation to transfer goods or services to a customer when the customer prepays consideration or when the customer’s consideration is due for goods and services that the Company will yet provide whichever happens earlier. Contract liabilities represent amounts collected from, or invoiced to, customers in excess of revenues recognized, primarily from the billing of annual subscription agreements. The value of contract liabilities will increase or decrease based on the timing of invoices and recognition of revenue. The Company’s contract liability balance was $ 4,618 25,229 |
Software development costs | • Software development costs In accordance with the relevant FASB accounting guidance regarding the development of software to be sold, leased, or marketed, the Company expenses such costs as they are incurred until technological feasibility has been established, at and after which time these costs are capitalized until the product is available for general release to customers. Once the technological feasibility is established per ASC Topic 985-20, the Company capitalizes costs associated with the acquisition or development of major software for internal and external use in the balance sheet. Costs incurred to enhance the Company’s software products, after general market release of the services using the products, is expensed in the period they are incurred. The Company only capitalizes subsequent additions, modifications or upgrades to internally developed software to the extent that such changes allow the software to perform a task it previously did not perform. The Company also expenses website costs as incurred. Research and development expenditures in the development of its own software are charged to operations as incurred. Based on the software development process, technological feasibility is established upon completion of a working model, which also requires certification and extensive testing. Costs incurred by the Company between completion of the working model and the point at which the product is ready for general release are immaterial. For the six months ended June 30, 2022 and 2021, the software development costs were $ 36,868 66,989 17,320 36,828 |
Cost of sales | • Cost of sales Cost of sales under online ordering consist of the cost of merchandizes ordered by the consumers and the related shipping and handling costs, which are directly attributable to the sales of online ordering. Cost of sales under software sales consist of the cost of software and payroll, which are directly attributable to the sales of software. Cost of sales under hardware sales consist of the cost of hardware and payroll, which are directly attributable to the sales of hardware. Cost of sales under grocery and food delivery consist of the cost of outsource delivery and outsource payment gateway, which are directly attributable t the sales of grocery and food delivery. Cost of sales under telecommunication data reseller consist of the cost of primary telecommunication service, which are directly attributable to the sales of telecommunication data. |
Shipping and handling costs | • Shipping and handling costs No shipping and handling costs are associated with the distribution of the products to the customers which are borne by the Company’s suppliers or distributors for merchant POS business. Except for e-Commerce business, the shipping and handling costs billed to customers are recorded in sales. Shipping costs incurred by the Company are recorded in cost of sales. |
Sales and marketing | • Sales and marketing Sales and marketing expenses include payroll, employee benefits and other headcount-related expenses associated with sales and marketing personnel, and the costs of advertising, promotions, seminars, and other programs. Advertising costs are expensed as incurred. Advertising expense was $ 253,290 449,392 41,284 42,184 |
Product warranties | • Product warranties The Company’s provision for estimated future warranty costs is based upon historical relationship of warranty claims to sales. Based upon historical sales trends and warranties provided by the Company’s suppliers, the Company has concluded that no warranty liability is required as of June 30, 2022 and December 31, 2021. To date, product allowance and returns have been minimal and, based on its experience, the Company believes that returns of its products will continue to be minimal. |
Income tax | • Income tax The Company adopted the ASC 740 Income Tax The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its balance sheets and provides valuation allowances as management deems necessary. The Company and its wholly-owned foreign subsidiary, is subject to income taxes in the jurisdictions in which it operates. Significant judgment is required in determining the provision for income tax. There are many transactions and calculations undertaken during the ordinary course of business for which the ultimate tax determination is uncertain. The company recognizes liabilities for anticipated tax audit issues based on the Company’s current understanding of the tax law. Where the final tax outcome of these matters is different from the carrying amounts, such differences will impact the current and deferred tax provisions in the period in which such determination is made. |
Uncertain tax positions | • Uncertain tax positions The Company did not take any uncertain tax positions and had no adjustments to its income tax liabilities or benefits pursuant to the ASC 740 provisions of Section 740-10-25 for the six months ended June 30 2022 and 2021. |
Foreign currencies translation and transactions | • Foreign currencies translation and transactions The reporting currency of the Company is United States Dollar ("US$") and the accompanying consolidated financial statements have been expressed in US$. In addition, the Company’s subsidiary is operating in the Republic of Vietnam, Singapore, India and Philippines and maintains its books and record in its local currency, Vietnam Dong (“VND”), Singapore Dollar (“SGD”), Indian Rupee (“INR”) and Philippines Pesos (“PHP”), respectively, which are the functional currency as being the primary currency of the economic environment in which their operations are conducted. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “Translation of Financial Statement”, using the exchange rate on the balance sheet date. Shareholders’ equity is translated using the historical rates. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income (loss) within the statements of changes in shareholder’s equity. Translation of amounts from SGD into US$ has been made at the following exchange rates for the six months ended June 30, 2022 and 2021: Schedule of Foreign currencies translation and transactions Schedule of Foreign currencies translation and transactions June 30, 2022 June 30, 2021 Period-end SGD:US$ exchange rate $ 0.71874 $ 0.74356 Period average SGD:US$ exchange rate $ 0.73258 $ 0.75028 Translation of amounts from VND into US$ has been made at the following exchange rates for the six months ended June 30, 2022 and 2021: June 30, 2022 June 30, 2021 Period-end VND:US$ exchange rate $ 0.000043 $ 0.000043 Period average VND:US$ exchange rate $ 0.000044 $ 0.000043 Translation of amounts from INR into US$ has been made at the following exchange rates for the six months ended June 30, 2022 and 2021: June 30, 2022 June 30, 2021 Period-end INR:US$ exchange rate $ 0.012675 $ 0.013450 Period average INR:US$ exchange rate $ 0.013126 $ 0.013617 Translation of amounts from PHP into US$ has been made at the following exchange rates for the six months ended June 30, 2022 and 2021: June 30, 2022 June 30, 2021 Period-end PHP:US$ exchange rate $ 0.018176 $ N/A Period average PHP:US$ exchange rate $ 0.019173 $ N/A Translation gains and losses that arise from exchange rate fluctuations from transactions denominated in a currency other than the functional currency are translated, as the case may be, at the rate on the date of the transaction and included in the results of operations as incurred. |
Comprehensive income | • Comprehensive income ASC Topic 220, “ Comprehensive Income |
Earning per share | • Earning per share Basic per share amounts are calculated using the weighted average shares outstanding during the year, excluding unvested restricted stock units. The Company uses the treasury stock method to determine the dilutive effect of stock options and other dilutive instruments. Under the treasury stock method, only “in the money” dilutive instruments impact the diluted calculations in computing diluted earnings per share. Diluted calculations reflect the weighted average incremental common shares that would be issued upon exercise of dilutive options assuming the proceeds would be used to repurchase shares at average market prices for the periods. For the three and six months ended June 30, 2022 and 2021, diluted weighted-average common shares outstanding is equal to basic weighted-average common shares, due to the Company’s net loss position. Hence, no common stock equivalents were included in the computation of diluted net loss per share since such inclusion would have been antidilutive. Schedule of computation of diluted net loss per share Schedule of computation of diluted net loss per share Three months ended June 30, 2022 2021 Net loss attributable to Society Pass Incorporated $ (7,504,324 ) $ (4,342,751 ) Weighted average common shares outstanding – Basic and diluted 24,347,607 7,413,600 Net loss per share – Basic and diluted $ (0.31 ) $ (0.59 ) Six months ended June 30, 2022 2021 Net loss attributable to Society Pass Incorporated $ (14,052,702 ) $ (7,099,731 ) Weighted average common shares outstanding – Basic and diluted 23,126,632 7,413,600 Net loss per share – Basic and diluted $ (0.61 ) $ (0.96 ) The following potentially dilutive securities outstanding have been excluded from the computation of diluted weighted-average shares outstanding, because such securities had an antidilutive impact: Schedule of Common stock issued Schedule of Common stock issued Six months ended June 30, Six months ended June 30, 2022 2021 Series A Convertible Preferred Stock (a) — 8,000 Series B Convertible Preferred Stock — 764,400 Series B-1 Convertible Preferred Stock — 48,000 Series C Convertible Preferred Stock — 113,100 Series C-1 Convertible Preferred Stock — 2,186,400 Options to purchase common stock (b) 1,945,270 — Warrants granted to underwriter 3,793,929 — Warrants granted with Series C-1 Convertible Preferred Stock (c) — 1,178,700 Total of common stock equivalents 5,739,199 4,298,600 (a) The Series A the conversion formula is aggregate Stated Value divided by IPO price (State Value for each Series A preferred shares is $1,000). These are 8,000 shares of Series A Preferred Stock issued and outstanding (10,000 shares are designated Series A). The conversion formula would be $8 million (the aggregate stated value) divided by IPO price. (b) The Board of Directors have approved a 10-years option at an exercise price of $6.49 per share that will be exercisable at any time. (c) The expiry date of warrants granted with Series C-1 was expired on June 30, 2022. |
Leases | • Leases The Company adopted Topic 842, Leases ROU assets represent the 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 Company’s leases do not provide an implicit rate, the Company generally use the incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. 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 the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. In accordance with the guidance in ASC 842, components of a lease should be split into three categories: lease components (e.g. land, building, etc.), non-lease components (e.g. common area maintenance, consumables, etc.), and non-components (e.g. property taxes, insurance, etc.). Subsequently, the fixed and in-substance fixed contract consideration (including any related to non-components) must be allocated based on the respective relative fair values to the lease components and non-lease components. When a lease is terminated before the expiration of the lease term, irrespective of whether the lease is classified as a finance lease or an operating lease, the lessee would derecognize the ROU asset and corresponding lease liability. Any difference would be recognized as a gain or loss related to the termination of the lease. Similarly, if a lessee is required to make any payments or receives any consideration when terminating the lease, it would include such amounts in the determination of the gain or loss upon termination. As of June 30, 2022 and December 31, 2021, the Company recorded the right of use asset of $ 710,586 627,968 |
Retirement plan costs | • Retirement plan costs Contributions to retirement plans (which are defined contribution plans) are charged to general and administrative expenses in the accompanying consolidated statements of operation as the related employee service is provided. |
Share-based compensation | • Share-based compensation Pursuant to ASU 2018-07, the Company follows ASC Topic 718, Compensation—Stock Compensation (“ASC 718”), which requires the measurement and recognition of compensation expense for all share-based payment awards (employee or non-employee), are measured at grant-date fair value of the equity instruments that an entity is obligated to issue. Restricted stock units are valued using the market price of the Company’s common shares on the date of grant. The Company uses a Black-Scholes option model to estimate the fair value of employee stock options at the date of grant. As of June 30, 2022, those shares issued and stock options granted for service compensations were vested 180 days later based on share issuance date, and therefore these amounts are thus recognized as expense during the six months ended June 30, 2022 and 2021, the stock-based compensations are recorded in the General and administrative expenses within the Consolidated Statements of Operations and Other Comprehensive Loss.” |
Common stock awards | • Common stock awards The Company grants common stock awards to employees and non-employees in exchange for services provided. The Company measures the fair value of these awards using the fair value of the services provided or the fair value of the awards granted, whichever is more reliably measurable. The fair value measurement date of these awards is generally the date the performance of services is complete. The fair value of the awards is recognized on a straight-line basis as services are rendered. The share-based payments related to common stock awards for the settlement of services provided is recorded in the general and administrative expenses and charged to the same account as if such settlements had been made in cash. The fair value of the Common Stock Awards to the Company’s director was estimated using a Black-Scholes Option Pricing Model. |
Warrants | • Warrants In connection with certain financing, consulting and collaboration arrangements, the Company has issued warrants to purchase shares of its Preferred stock and common stock. The outstanding warrants are standalone instruments that are not puttable or mandatorily redeemable by the holder and are classified as equity awards. The Company measures the fair value of the awards using a Black-Scholes Option Pricing Model as of the measurement date. The Company uses a Black-Scholes option model to estimate the fair value of compensation warrants. Warrants issued in conjunction with the issuance of common stock are initially recorded at fair value as a reduction in additional paid-in capital of the common stock issued. All other warrants are recorded at fair value as expense over the requisite service period, or at the date of issuance, if there is not a service period. |
Related parties | • Related parties The Company follows the ASC 850-10, Related Party Pursuant to section 850-10-20 the related parties include a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of section 825–10–15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and Income-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The condensed consolidated financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d) amount due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. |
Commitments and contingencies | • Commitments and contingencies The Company follows the ASC 450-20, Commitments If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time that these matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. |
Fair value of financial instruments | • Fair value of financial instruments The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and has adopted paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by paragraph 820-10-35-37 of the FASB Accounting Standards Codification are described below: Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally observable inputs and not corroborated by market data. Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The carrying amounts of the Company’s financial assets and liabilities, such as cash and cash equivalents, accounts receivable, deposits, prepayments and other receivables, contract liabilities, accrued liabilities and other payables, amounts due to related parties, approximate their fair values because of the short maturity of these instruments. |
Recent accounting pronouncements | • Recent accounting pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standard Board (“FASB”) or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. Accounting Standards Adopted In August 2020, the FASB issued ASU 2020-06 Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) related to the measurement and disclosure requirements for convertible instruments and contracts in an entity’s own equity. The pronouncement simplifies and adds disclosure requirements for the accounting and measurement of convertible instruments and the settlement assessment for contracts in an entity’s own equity. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2021 and early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company has evaluated and the adoption of this standard does not have a material impact on its financial position, results of operations or cash flows. In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40). ASU 2021-04 clarifies and reduces diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (for example, warrants) that remain equity classified after modification or exchange. The ASU provides guidance to clarify whether an issuer should account for a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange as (1) an adjustment to equity and, if so, the related earnings per share effects, if any, or (2) an expense and, if so, the manner and pattern of recognition. ASU 2021-04 is effective for annual beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company has evaluated and the adoption of this standard does not have a material impact on its financial position, results of operations or cash flows. Accounting Standards Issued, Not Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). This ASU requires measurement and recognition of expected credit losses for financial assets. ASU 2016-13 also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale debt securities. ASU 2016-13 is effective for the Company beginning January 1, 2023. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company is currently evaluating the potential effect of this standard on its financial statements, but does not believe that it will have a material affect on its consolidated financial statements. In March 2020, the FASB issued ASU 2020-03, “Codification Improvements to Financial Instruments”: The amendments in this update are to clarify, correct errors in, or make minor improvements to a variety of ASC topics. The changes in ASU 2020-03 are not expected to have a significant effect on current accounting practices. The ASU improves various financial instrument topics in the Codification to increase stakeholder awareness of the amendments and to expedite the improvement process by making the Codification easier to understand and easier to apply by eliminating inconsistencies and providing clarifications. The ASU is effective for smaller reporting companies for fiscal years beginning after December 15, 2022 with early application permitted. The Company is currently evaluating the impact the adoption of this guidance may have on its consolidated financial statements, but does not believe that it will have a material affect on its consolidated financial statements.. In October 2021, the FASB issued guidance which requires companies to apply Topic 606, Revenue from Contracts with Customers, to recognize and measure contract assets and contract liabilities from contracts with customers acquired in a business combination. Public entities must adopt the new guidance for fiscal years beginning after December 15, 2022 and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact and timing of adoption of this guidance, however, it appears that more revenue will be recorded under this new requirement than was previously allowed. No other new accounting pronouncements were issued or became effective in the period that had, or are expected to have, a material impact on our condensed consolidated Financial Statements. |
DESCRIPTION OF BUSINESS AND O_2
DESCRIPTION OF BUSINESS AND ORGANIZATION (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Description of subsidiaries | Schedule of Description of subsidiaries Name Place and date of incorporation Principal activities Particulars of registered/ paid up share capital Effective interest held Society Technology LLC State of Nevada January 24, 2019 IP Licensing US$1 100 % SOPA Cognitive Analytics Private Limited India February 5, 2019 Computer sciences consultancy and data analytics INR 1,238,470 100 % SOPA Technology Pte. Ltd. Singapore June 4, 2019 Investment holding SGD 1,250,000 95 % SOPA Technology Company Limited Vietnam October 1, 2019 Software production Registered: VND 2,307,300,000; 100 % Hottab Pte Ltd. (HPL) Singapore January 17, 2015 Software development and marketing for the F&B industry SGD 620,287.75 100 % Hottab Vietnam Co. Ltd Vietnam April 17, 2015 Sale of POS hardware and software VND 1,000,000,000 100 % Hottab Asset Company Limited Vietnam July 25, 2019 Sale of POS hardware and software VND 5,000,000,000 100 % Leflair Incorporated United States December 07, 2021 Investment holding US$ 1 100 % SOPA Capital Limited United Kingdom December 07, 2021 Investment holding GBP 1 100 % SOPA (Phil) Incorporated Philippines Jan 11, 2022 Investment holding PHP 11,000,000 100 % New Retail Experience Incorporated Philippines Jan 16, 2020 On-line Grocery delivery platform PHP 3,750,000 100 % Dream Space Trading Co Ltd Vietnam May 23, 2018 On-line Grocery and food delivery platform VND 500,000,000 100 % Push Delivery Pte Ltd Singapore January 07, 2022 Investment holding US$ 2,000 100 % Gorilla Networks Pte. Ltd. Singapore September 3, 2019 Investment holding US$ 2,620,000 and SGD 730,000 100 % Gorilla Connect Pte. Ltd. Singapore May 18, 2022 Telecommunication resellers SGD 100 100 % Gorilla Mobile Singapore Pte. Ltd. Singapore August 6, 2020 Telecommunication resellers SGD 100 100 % Gorilla Networks (VN) LLC Vietnam December 16, 2020 Telecommunication resellers VND 233,000,000 100 % |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Expected useful life | Schedule of Expected useful life Expected useful lives Computer equipment 3 Office equipment 5 Renovation 5 |
Schedule of Foreign currencies translation and transactions | Schedule of Foreign currencies translation and transactions June 30, 2022 June 30, 2021 Period-end SGD:US$ exchange rate $ 0.71874 $ 0.74356 Period average SGD:US$ exchange rate $ 0.73258 $ 0.75028 Translation of amounts from VND into US$ has been made at the following exchange rates for the six months ended June 30, 2022 and 2021: June 30, 2022 June 30, 2021 Period-end VND:US$ exchange rate $ 0.000043 $ 0.000043 Period average VND:US$ exchange rate $ 0.000044 $ 0.000043 Translation of amounts from INR into US$ has been made at the following exchange rates for the six months ended June 30, 2022 and 2021: June 30, 2022 June 30, 2021 Period-end INR:US$ exchange rate $ 0.012675 $ 0.013450 Period average INR:US$ exchange rate $ 0.013126 $ 0.013617 Translation of amounts from PHP into US$ has been made at the following exchange rates for the six months ended June 30, 2022 and 2021: June 30, 2022 June 30, 2021 Period-end PHP:US$ exchange rate $ 0.018176 $ N/A Period average PHP:US$ exchange rate $ 0.019173 $ N/A |
Schedule of computation of diluted net loss per share | Schedule of computation of diluted net loss per share Three months ended June 30, 2022 2021 Net loss attributable to Society Pass Incorporated $ (7,504,324 ) $ (4,342,751 ) Weighted average common shares outstanding – Basic and diluted 24,347,607 7,413,600 Net loss per share – Basic and diluted $ (0.31 ) $ (0.59 ) Six months ended June 30, 2022 2021 Net loss attributable to Society Pass Incorporated $ (14,052,702 ) $ (7,099,731 ) Weighted average common shares outstanding – Basic and diluted 23,126,632 7,413,600 Net loss per share – Basic and diluted $ (0.61 ) $ (0.96 ) |
Schedule of Common stock issued | Schedule of Common stock issued Six months ended June 30, Six months ended June 30, 2022 2021 Series A Convertible Preferred Stock (a) — 8,000 Series B Convertible Preferred Stock — 764,400 Series B-1 Convertible Preferred Stock — 48,000 Series C Convertible Preferred Stock — 113,100 Series C-1 Convertible Preferred Stock — 2,186,400 Options to purchase common stock (b) 1,945,270 — Warrants granted to underwriter 3,793,929 — Warrants granted with Series C-1 Convertible Preferred Stock (c) — 1,178,700 Total of common stock equivalents 5,739,199 4,298,600 (a) The Series A the conversion formula is aggregate Stated Value divided by IPO price (State Value for each Series A preferred shares is $1,000). These are 8,000 shares of Series A Preferred Stock issued and outstanding (10,000 shares are designated Series A). The conversion formula would be $8 million (the aggregate stated value) divided by IPO price. (b) The Board of Directors have approved a 10-years option at an exercise price of $6.49 per share that will be exercisable at any time. (c) The expiry date of warrants granted with Series C-1 was expired on June 30, 2022. |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue | |
Schedule of Revenue | Schedule of Revenue Six Months ended June 30, 2022 2021 Sales – online ordering $ 916,551 $ — Sales – data 5,642 — Software subscription sales 21,890 16,954 Hardware sales 69 335 $ 944,152 $ 17,289 Three Months ended June 30, 2022 2021 Sales – online ordering $ 482,410 $ — Sales – data 5,642 — Software subscription sales 10,941 7,714 Hardware sales 69 69 $ 499,062 $ 7,783 |
Schedule of Contract liabilities | Schedule of Contract liabilities Six Months ended June 30, 2022 Year ended December 31, 2021 Contract liabilities, brought forward $ 25,229 $ 18,646 Add: recognized as deferred revenue 3,969 44,064 Less: recognized as revenue (24,580 ) (37,481 ) Contract liabilities, carried forward $ 4,618 $ 25,229 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting | Schedule of Segment Reporting Six Months Ended June 30, 2022 Online Grocery and Food Deliveries Telecommunication Reseller e-Commerce Merchant POS Total Revenue from external customers: Sales – online ordering $ — $ — $ 892,715 $ — $ 892,715 Sales – online platform 23,836 — — — 23,836 Sales – data — 5,642 — — 5,642 Software sales — — — 21,890 21,890 Hardware sales — — — 69 69 Total revenue 23,836 5,642 892,715 21,959 944,152 Cost of sales: Cost of online ordering — (825,960 ) — (825,960 ) Cost of online platform (26,898 ) — — — (26,898 ) Cost of data — (975 ) (975 ) Software sales — — (92,541 ) (12,664 ) (105,205 ) Hardware sales — — — (45 ) (45 ) Total cost of revenue (26,898 ) (975 ) (918,501 ) (12,709 ) (959,083 ) Gross income (loss) (3,062 ) 4,667 (25,786 ) 9,250 (14,931 ) Operating Expenses Sales and marketing expenses (818 ) — (448,574 ) — (449,392 ) Software development costs — — — (36,868 ) (36,868 ) Impairment loss — — — (528,583 ) (528,583 ) Depreciation (77 ) (1,270 ) — (13,270 ) (14,617 ) Amortization — — — (1,600,000 ) (1,600,000 ) General and administrative expenses (59,372 ) (79,852 ) (606,910 ) (10,825,311 ) (11,571,445 ) Total operating expenses (60,267 ) (81,122 ) (1,055,484 ) (13,004,032 ) (14,200,905 ) Loss from operations (63,329 ) (76,455 ) (1,081,270 ) (12,994,782 ) (14,215,836 ) Other income (expense) Interest income — — 186 5,886 6,072 Interest expense — — — (4,429 ) (4,429 ) Other income — 1,777 699 35,817 38,293 Total other income — 1,777 885 37,274 39,936 Loss before income taxes $ (63,329 ) $ (74,678 ) $ (1,080,385 ) $ (12,957,508 ) $ (14,175,900 ) Six Months Ended June 30, 2021 Online Grocery and Food Deliveries Telecommunication Reseller e-Commerce Merchant POS Total Revenue from external customers: Sales – online ordering $ — $ — $ — $ — $ — Sales – online platform — — — — — Sales – data — — — — — Software sales — — — 16,954 16,954 Hardware sales — — — 335 335 Total revenue — — — 17,289 17,289 Cost of sales: Cost of online ordering — — — — — Cost of online platform — — — — — Cost of data — — — — — Software sales — — — (104,692 ) (104,692 ) Hardware sales — — — (165 ) (165 ) Total cost of revenue — — — (104,857 ) (104,857 ) Gross income (loss) — — — (87,568 ) (87,568 ) Operating Expenses Sales and marketing expenses — — — (42,184 ) (42,184 ) Software development costs — — — (66,989 ) (66,989 ) Impairment loss — — — (200,000 ) (200,000 ) Depreciation — — — (4,451 ) (4,451 ) Amortization — — — (1,600,000 ) (1,600,000 ) General and administrative expenses — — — (4,517,448 ) (4,517,448 ) Total operating expenses — — — (6,431,072 ) (6,431,072 ) Loss from operations — — — (6,518,640 ) (6,518,640 ) Other income (expense) Interest income — — — 16 16 Interest expense — — — (24,214 ) (24,214 ) Loss on settlement of litigation (550,000 ) (550,000 ) Other income — — — 1,747 1,747 Total other income — — — (572,451 ) (572,451 ) Loss before income taxes $ — $ — $ — $ (7,091,091 ) $ (7,091,091 ) Three Months Ended June 30, 2022 Online Grocery and Food Deliveries Telecommunication Reseller e-Commerce Merchant POS Total Revenue from external customers: Sales – online ordering $ — $ — $ 466,616 $ — $ 466,616 Sales – online platform 23,836 — (8,042 ) — 15,794 Sales – data — 5,642 — — 5,642 Software sales — — — 10,941 10,941 Hardware sales — — — 69 69 Total revenue 23,836 5,642 458,574 11,010 499,062 Cost of sales: Cost of online ordering — (432,707 ) — (432,707 ) Cost of online platform (26,898 ) — 2,637 — (24,261 ) Cost of data — (975 ) — — (975 ) Software sales — — (34,836 ) (6,376 ) (41,212 ) Hardware sales — — — (45 ) (45 ) Total cost of revenue (26,898 ) (975 ) (464,906 ) (6,421 ) (499,200 ) Gross income (loss) (3,062 ) 4,667 (6,332 ) 4,589 (138 ) Operating Expenses Sales and marketing expenses (818 ) — (252,472 ) — (253,290 ) Software development costs — — — (17,320 ) (17,320 ) Impairment loss — — — — — Depreciation (77 ) (1,270 ) 5 (6,653 ) (7,995 ) Amortization — — — (800,000 ) (800,000 ) General and administrative expenses (59,372 ) (79,852 ) (435,855 ) (5,962,290 ) (6,537,369 ) Total operating expenses (60,267 ) (81,122 ) (688,322 ) (6,786,263 ) (7,615,974 ) Loss from operations (63,329 ) (76,455 ) (694,654 ) (6,781,674 ) (7,616,112 ) Other income (expense) Interest income — — 146 5,881 6,027 Interest expense — — — (384 ) (384 ) Other income — 1,777 — 22,895 24,672 Total other income — 1,777 146 28,392 30,315 Loss before income taxes $ (63,329 ) $ (74,678 ) $ (694,508 ) $ (6,753,282 ) $ (7,585,797 ) Three Months Ended June 30, 2021 Online Grocery and Food Deliveries Telecommunication Reseller e-Commerce Merchant POS Total Revenue from external customers: Sales – online ordering $ — $ — $ — $ — $ — Sales – online platform — — — — — Sales – data — — — — — Software sales — — — 7,714 7,714 Hardware sales — — — 69 69 Total revenue — — — 7,783 7,783 Cost of sales: Cost of online ordering — — — — — Cost of online platform — — — — — Cost of data — — — — — Software sales — — — (86,498 ) (86,498 ) Hardware sales — — — (64 ) (64 ) Total cost of revenue — — — (86,562 ) (86,562 ) Gross income (loss) — — — (78,779 ) (78,779 ) Operating Expenses Sales and marketing expenses — — — (41,284 ) (41,284 ) Software development costs — — — (36,828 ) (36,828 ) Impairment loss — — — — — Depreciation — — — (2,214 ) (2,214 ) Amortization — — — (800,000 ) (800,000 ) General and administrative expenses — — — (3,365,588 ) (3,365,588 ) Total operating expenses — — — (4,245,914 ) (4,245,914 ) — — Loss from operations — — — (4,324,693 ) (4,324,693 ) Other income (expense) Interest income — — — 10 10 Interest expense — — — (12,157 ) (12,157 ) Other income — — — 992 992 Total other income — — — (11,115 ) (11,155 ) Loss before income taxes $ — $ — $ — $ (4,335,848 ) $ (4,335,848 ) June 30, 2022 Online Grocery and Food Deliveries Telecommunication Reseller e-Commerce Merchant POS Total Intangible assets, net $ — $ 884,230 $ — $ 2,854,519 $ 3,738,749 Identifiable assets $ 95,155 $ 184,102 $ 699,561 $ 32,779,447 $ 33,758,265 December 31, 2021 Online Grocery and Food Deliveries Telecommunication Reseller e-Commerce Merchant POS Total Intangible assets, net $ — $ — $ — $ 4,000,000 $ 4,000,000 Identifiable assets $ — $ — $ 9,638,035 $ 21,538,322 $ 31,176,357 Six Months Ended June 30, 2022 Online Grocery and Food Deliveries Telecommunication Reseller e-Commerce Merchant POS Total Capital Expenditure: Purchase of property, plant, and equipment $ — $ — $ 30,783 $ 57,613 $ 88,396 Total capital expenditure $ — $ — $ 30,783 $ 57,613 $ 88,396 Six Months Ended June 30, 2021 Online Grocery and Food Deliveries Telecommunication Reseller e-Commerce Merchant POS Total Capital Expenditure: Purchase of property, plant, and equipment $ — $ — $ — $ — $ — Total capital expenditure $ — $ — $ — $ — $ — |
Schedule of geographic segments | Schedule of geographic segments Six Months Ended June 30, 2022 2021 Indonesia $ 20,696 $ 14,974 Vietnam 896,661 2,315 Singapore 5,641 — Philippines 21,154 — $ 944,152 $ 17,289 Three Months Ended June 30, 2022 2021 Indonesia $ 10,328 $ 6,930 Vietnam 469,137 853 Singapore 5,641 — Philippines 13,956 — $ 499,062 $ 7,783 |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Acquisition Of New Retail [Member] | |
Schedule of Acquisition of assets and liability | Schedule of Acquisition of assets and liability Purchase price consisted of the following: Fair value of stock at closing $ 800,000 Cash paid 200,000 Less cash received (5,445 ) Purchase price $ 994,555 |
Schedule of Acquisition of assets and liability | Schedule of Acquisition of assets and liability Acquired assets: Trade receivables $ 4,728 Other receivables 9,603 Property and equipment 204 Total acquired assets 14,535 Less: Assumed liabilities Trade payables 2,804 Accrued liabilities and other payable 279 Total Assumed liabilities 3,083 Fair value of net assets assumed 11,452 Goodwill recorded 983,103 Cash consideration allocated $ 994,555 |
Schedule of net loss per share | Schedule of net loss per share Six months ended June 30, 2022 Six months ended June 30, 2021 Revenue $ 1,181,847 $ 185,266 Net loss $ (14,202,024 ) $ (2,763,079 ) Net loss per share $ (0.57 ) $ (0.15 ) |
Acquisition Of Dream Space [Member] | |
Schedule of Acquisition of assets and liability | Schedule of Acquisition of assets and liability Purchase price consisted of the following: Cash paid $ 104 Less cash received - Purchase price $ 104 |
Schedule of Acquisition of assets and liability | Schedule of Acquisition of assets and liability Acquired assets: Trade receivables $ 1,168 Other receivables 5 Cash 1,429 Property and equipment Total acquired assets 2,602 Less: Assumed liabilities Trade payables 1,228 Accrued liabilities and other payable 2,557 Total Assumed liabilities 3,805 Fair value of net liabilities assumed (1,203 ) Exchange difference 1,307 Goodwill recorded — Cash consideration allocated $ 104 |
Schedule of net loss per share | Schedule of net loss per share Six months ended June 30, 2022 Six months ended June 30, 2021 Revenue $ 947,354 $ 25,728 Net loss $ (14,200,611 ) $ (7,099,708 ) Net loss per share $ (0.57 ) $ (0.38 ) |
Acquisition Of Gorilla [Member] | |
Schedule of Acquisition of assets and liability | Schedule of Acquisition of assets and liability Purchase price consisted of the following: Fair value of stock at closing $ 338,785 Less: cash received (25,583 ) Purchase price $ 313,202 |
Schedule of Acquisition of assets and liability | Schedule of Acquisition of assets and liability Acquired assets: Inventories $ 4,348 Trade receivables 3,273 Other receivables 58,029 Property and equipment 8,876 Intangible assets (Apps development cost) 899,891 Total acquired assets 974,417 Less: Assumed liabilities — Trade payables 534,907 Accrued liabilities and other payable 51,538 Amount due to related parties 73 Amount due to shareholder 74,697 Total acquired Liabilities 661,215 Fair value of net assets assumed 313,202 Goodwill recorded — Net consideration allocated, net $ 313,202 |
Schedule of net loss per share | Schedule of net loss per share Six months ended June 30, 2022 Six months ended June 30, 2021 Revenue $ 1,076,601 $ 17,289 Net loss $ (17,143,580 ) $ (7,129,282 ) Net loss per share $ (0.69 ) $ (0.38 ) |
DEPOSITS, PREPAYMENTS AND OTH_2
DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Deposits Prepayments And Other Receivables | |
Schedule of prepayments and other receivables | Schedule of prepayments and other receivables June 30, 2022 December 31, 2021 Deposits $ 129,289 $ 68,991 Prepayments (a) 587,437 32,279 Prepayments for consultancy fee (b) 3,434,666 6,010,667 Prepayments for first insurance funding (c) 247,500 742,500 Value added tax 142,536 96,818 Other receivables 6,787 1,666 Advance to related party 1,538 — Total $ 4,549,753 $ 6,952,921 Less: non-current portion Prepayments for consultancy fee — (858,667 ) Current portion $ 4,549,753 $ 6,094,254 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventories | |
Schedule of inventories | Schedule of inventories June 30, 2022 December 31, 2021 Finished goods $ 336,476 $ 221,068 Less Reserve for excess and obsolete inventory — — Total Inventories $ 336,476 $ 221,068 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | Schedule of intangible assets Useful life June 30, 2022 December 31, 2021 At cost: (Unaudited) Software platform 2.5 $ 8,000,000 $ 8,000,000 Apps development 884,230 — Other intangible assets 3 5 1,725 1,725 8,885,955 8,001,725 Less: accumulated depreciation (5,601,725 ) (4,001,725 ) $ 3,284,230 $ 4,000,000 |
Schedule of Amortization of intangible assets | Schedule of Amortization of intangible assets Six months ended June 30, 2022: Amount 2022 (remaining period) $ 1,600,000 2023 800,000 Total $ 2,400,000 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property plant and equipment | Schedule of Property plant and equipment June 30, 2021 December 31, 2021 (Unaudited) At cost: Computer $ 84,942 $ 33,207 Office equipment 8,286 16,826 Furniture and fixtures 8,387 — Renovation 38,451 27,731 140,066 77,764 Less: accumulated depreciation (36,360 ) (21,743 ) Less: exchange difference (6,993 ) 1,014 $ 96,713 $ 57,035 |
ASSET PURCHASE AGREEMENT (Table
ASSET PURCHASE AGREEMENT (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Asset Purchase Agreement | |
Schedule of Asset acquisition | Schedule of Asset acquisition Acquired assets: Intellectual property $ 200,000 Less: Assumed liabilities Accrued liabilities and other payable — Fair value of net assets acquired 200,000 Impairment loss recorded (200,000 ) Net asset value $ — |
Schedule of non-controlling interest | Schedule of non-controlling interest Balance, December 31, 2021 5 % Transfer (to) from the non-controlling interest as a result of Leflair Purchase Agreement — % Parent Co. acquired/exchanged the non controlling interest holding with their shares — % Balance, June 30, 2022 5 % |
Schedule of reconciliation non-controlling loss attributable to the company | Schedule of reconciliation non-controlling loss attributable to the company Non Controlling Interest, December 31, 2021 $ (102,784 ) Acquisition cost — Net loss attributable to non-controlling interest (125,297 ) Foreign currency translation adjustment 3,356 Non Controlling Interest, June 30, 2022 $ (224,725 ) |
Schedule of Net loss attributable to non-controlling interest | Schedule of Net loss attributable to non-controlling interest Net loss generated by SOPA Technology Pte Ltd for the six months ended June 30, 2022 $ (2,546,684 ) Non controlling interest percentage 5 % Net loss attributable to non-controlling interest $ (125,297 ) Foreign currency translation adjustment 3,356 Non Controlling Interest $ (121,941 ) |
AMOUNTS DUE TO RELATED PARTIES
AMOUNTS DUE TO RELATED PARTIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Amounts Due To Related Parties | |
Schedule of Amount due to related parties | Schedule of Amount due to related parties June 30, 2022 December 31, 2021 (Unaudited) Amounts due to related parties (a) $ 22,822 $ 24,763 Amount due to a director (b) — 500,000 $ 22,822 $ 524,763 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts payable | Schedule of Accounts payable June 30, 2022 December 31, 2021 (Unaudited) Accounts payable $ 903,715 $ 261,907 Accrued liabilities and other payables- Related Party (a) 434,301 60,253 Accrued liabilities and other payables (b) 837,355 753,345 Other Accounts payable 1,271,656 813,959 Total Accounts payable $ 2,175,371 $ 1,075,505 |
Schedule of Accrued liabilities | Schedule of Accrued liabilities June 30, 2022 December 31, 2021 (Unaudited) Accrued payroll $ 75,627 $ 85,888 Accrued VAT expenses 76,343 62,044 Accrued taxes 72,703 62,272 Other accrual (d) 367,682 298,141 Other payables (c) 245,000 245,000 Total Accrued liabilities $ 837,355 $ 753,345 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Schedule of Lease expenses | Schedule of Lease expenses June 30, 2022 June 30, 2021 Operating lease expense (per ASC 842) $ 139,420 $ 20,668 Short-term lease expense (other than ASC 842) 4,653 810 Total lease expense $ 144,073 $ 21,478 |
Schedule of Future Contractual Lease Payments | Schedule of Future Contractual Lease Payments Years ended June 30, Operating lease amount 2023 $ 316,436 2024 266,661 2025 137,841 2026 17,760 Total 738,698 Less: interest (19,080 ) Present value of lease liabilities $ 719,618 Less: non-current portion 426,650 Present value of lease liabilities – current liability $ 292,968 |
DUE TO FIRST INSURANCE FUNDING
DUE TO FIRST INSURANCE FUNDING (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Due To First Insurance Funding | |
Schedule of Future contractual amortization of debt | Schedule of Future contractual amortization of debt Year ending June 30, Future payment 2023 $ 150,989 Less: imputed interest (2,852 ) Present value of first insurance funding – current liability $ 148,137 |
LOAN (Tables)
LOAN (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of loan | Schedule of loan June 30, 2022 December 31, 2021 (Unaudited) Loan – A (i) $ 22,161 $ — Loan – B (ii) 10,781 — Loan – C (iii) 30,518 — $ 63,460 $ — |
SHAREHOLDERS_ DEFICIT (Tables)
SHAREHOLDERS’ DEFICIT (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Schedule of Stock option assumptions | Schedule of Stock option assumptions December 31, 2021 Dividend rate 0 % Risk-free rate 1.52 % Weighted average expected life (years) 10 Expected volatility 130 % Share price $ 6.49 |
Schedule of Director’s stock awards | Schedule of Director’s stock awards Share option Weighted average exercise price Weighted Outstanding as of December 31, 2020 — — — Granted 1,945,270 6.49 10 Exercised — — — Expired — — — Outstanding as of December 31, 2021 1,945,270 $ 6.49 10 Granted — — — Exercised — — — Expired — — — Outstanding as of June 30, 2022 1,945,270 $ 6.49 9.5 |
Schedule of Future years | Schedule of Future years Year ended December 31 2022 162,990 Year ended December 31 2023 325,980 Total 448,970 |
Equity Option [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Schedule of warrants issued and outstanding | Schedule of warrants issued and outstanding Warrants Weighted average exercise price Weighted Outstanding as of December 31, 2020 (a) 2,047 $ 420 0.6 Issued (b) 2,120 $ 420 0.5 Issued (a) 144,445 $ 9.90 5.0 Exercised (307 ) $ (420 ) — Expired — — — Outstanding as of December 31, 2021 148,305 $ 20.57 4.88 Issued (c) 3,728,784 3.28 4.11 Exercised (79,661 ) $ (3.28 ) 0.5 Expired (3,500 ) (420 ) — Outstanding as of June 30, 2022 3,793,928 $ 3.57 4.45 There is no intrinsic value for warrants as of June 30, 2021 and December 31, 2020. (a) Common stock will be issued if those warrants exercise the 144,445 warrants having intrinsic value of $-0- and $73,667 as of June 30, 2022 and December 31, 2021, respectively. (b) Preferred stock series C-1 will be issued if those warrants exercise. Those preferred stock series C-1 was automatically converted into the 0 and 1,158,000 common stock with the intrinsic value of $0 and $10,433,580 as of June 30, 2022 and December 31, 2021, respectively. (c) Common stock will be issued if those warrants exercise 3,649,484 warrants having no intrinsic value as of June 30, 2022. |
Schedule of Stock option assumptions | Schedule of Stock option assumptions Before modification After Modification Dividend rate 0 % 0 % Risk-free rate 0.06 % 0.12 % Weighted average expected life (years) 9 18 Expected volatility 25 % 25 % Exercise price $ 1.4 $ 1.4 (a) The Company considered 25% volatility as from inception through the date of the Company common stocks. |
Directors Stock Awards [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Schedule of Director’s stock awards | Schedule of Director’s stock awards Share option Weighted average exercise price Weighted average remaining contractual life (in years) Unvested as of December 31, 2020 — — — Issued 814,950 7.65 2 Vested (162,990 ) 7.65 — Cancelled — — — Unvested as of December 31, 2021 651,960 $ 7.65 1.67 Issued — — — Vested (162,990 ) 7.65 — Cancelled — — — Unvested as of June 30, 2022 488,970 $ 7.65 1.17 Shares Unvested at period-end 488,970 $ 7.65 |
PREFERRED STOCKS AND WARRANTS (
PREFERRED STOCKS AND WARRANTS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Preferred Stocks And Warrants | |
Schedule of Preferred stocks | Schedule of Preferred stocks No. of shares Stated Value Series A Convertible Preferred Stock 10,000 $ 1,000 Series B Convertible Preferred Stock 10,000 $ 1,336 Series B-1 Convertible Preferred Stock 15,000 $ 2,917 Series C Convertible Preferred Stock 15,000 $ 5,763 Series C-1 Convertible Preferred Stock 30,000 $ 420 Series X Super Voting Preferred Stock 3,500 $ 0.0001 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Schedule of provision for income taxes | Schedule of provision for income taxes Six months ended June 30, 2022 2021 Tax jurisdiction from: - Local $ 11,263,271 $ 6,423,481 - Foreign 2,912,629 (667,610 ) Loss before income taxes $ 14,175,900 $ (7,091,091 ) |
Schedule of provision for income taxes | Schedule of provision for income taxes Six months ended June 30, 2022 2021 Current: - United States $ — $ — - Singapore — — - Vietnam — — - Philippines — — - India 2,099 8,640 Deferred: - United States — — - Singapore — — - Vietnam — — - Philippines — — - India — — Income tax expense $ 2,099 $ 8,640 |
Schedule of Effective Income Tax Rate Reconciliation | Schedule of Effective Income Tax Rate Reconciliation Six months ended June 30, 2022 2021 Loss before income taxes $ (11,263,271 ) $ (6,423,481 ) Statutory income tax rate 21 % 21 % Income tax expense at statutory rate (2,365,287 ) (1,348,931 ) Tax effect of allowance 2,365,287 1,348,931 Income tax expense $ — $ — |
Schedule of Deferred Tax Assets and Liabilities | Schedule of Deferred Tax Assets and Liabilities June 30, 2022 December 31, 2021 Deferred tax assets: Software intangibles (U.S) $ 150,465 $ 150,465 Deferred Stock Compensation (U.S.) 5,864,670 5,864,670 Net operating loss carryforwards - United States 3,356,630 1,875,143 - Singapore 504,040 272,937 - Vietnam 453,695 260,418 - India — — - Philippines 41,834 — 10,371,334 8,423,632 Less: valuation allowance (10,371,334 ) (8,423,632 ) Deferred tax assets, net $ — $ — |
PHILIPPINES | |
Schedule of Effective Income Tax Rate Reconciliation | Schedule of Effective Income Tax Rate Reconciliation Six months ended June 30, 2022 2021 Loss before income taxes $ (167,337 ) $ — Statutory income tax rate 25 % 25 % Income tax expense at statutory rate 41,834 — Tax effect of allowance (41,834 ) — Income tax expense $ — $ — |
SINGAPORE | |
Schedule of Effective Income Tax Rate Reconciliation | Schedule of Effective Income Tax Rate Reconciliation Six months ended June 30, 2022 2021 Loss before income taxes $ (1,787,435 ) $ (419,416 ) Statutory income tax rate 17 % 16 % Income tax expense at statutory rate (303,864 ) (67,107 ) Tax effect of allowance 303,864 67,107 Income tax expense $ — $ — |
VIET NAM | |
Schedule of Effective Income Tax Rate Reconciliation | Schedule of Effective Income Tax Rate Reconciliation Six months ended June 30, 2022 2021 Loss before income taxes $ (966,387 ) $ (260,623 ) Statutory income tax rate 20 % 20 % Income tax expense at statutory rate (193,277 ) (52,125 ) Tax effect of allowance 193,277 52,125 Income tax expense $ — $ — |
INDIA | |
Schedule of Effective Income Tax Rate Reconciliation | Schedule of Effective Income Tax Rate Reconciliation Six months ended June 30, 2022 2021 Profit before income taxes $ 8,530 $ 12,429 Statutory income tax rate 25 % 25 % Income tax expense at statutory rate 2,133 3,107 Tax effect of allowance (2,133 ) (3,107 ) Income tax expense $ — $ — |
CONCENTRATIONS OF RISK (Tables)
CONCENTRATIONS OF RISK (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
Schedule of concentrations of risk | Schedule of concentrations of risk Six months ended June 30, 2022 June 30, 2022 Customers Revenues Percentage Accounts Customer A $ 783,141 82.94 % $ 34,062 Customer B $ 109,567 11.60 % $ ( 11,818 ) |
DESCRIPTION OF BUSINESS AND O_3
DESCRIPTION OF BUSINESS AND ORGANIZATION (Details) | 6 Months Ended |
Jun. 30, 2022 | |
Society Technology L L C [Member] | |
Name of subsidiary | Society Technology LLC |
Place of incorporation | State of Nevada |
Entity Incorporation, Date of Incorporation | Jan. 24, 2019 |
Principal activity | IP Licensing |
Share capital | US$1 |
Equity Method Investment, Ownership Percentage | 100% |
SOPA Cognitive Analytics Private Limited [Member] | |
Name of subsidiary | SOPA Cognitive Analytics Private Limited |
Place of incorporation | India |
Entity Incorporation, Date of Incorporation | Feb. 05, 2019 |
Principal activity | Computer sciences consultancy and data analytics |
Share capital | INR 1,238,470 |
Equity Method Investment, Ownership Percentage | 100% |
S O P A Technology Pte Ltd [Member] | |
Name of subsidiary | SOPA Technology Pte. Ltd. |
Place of incorporation | Singapore |
Entity Incorporation, Date of Incorporation | Jun. 04, 2019 |
Principal activity | Investment holding |
Share capital | SGD 1,250,000 |
Equity Method Investment, Ownership Percentage | 95% |
S O P A Technology Company Limited [Member] | |
Name of subsidiary | SOPA Technology Company Limited |
Place of incorporation | Vietnam |
Entity Incorporation, Date of Incorporation | Oct. 01, 2019 |
Principal activity | Software production |
Share capital | Registered: VND 2,307,300,000; Paid up: VND 1,034,029,911 |
Equity Method Investment, Ownership Percentage | 100% |
Hottab Pte Ltd [Member] | |
Name of subsidiary | Hottab Pte Ltd. (HPL) |
Place of incorporation | Singapore |
Entity Incorporation, Date of Incorporation | Jan. 17, 2015 |
Principal activity | Software development and marketing for the F&B industry |
Share capital | SGD 620,287.75 |
Equity Method Investment, Ownership Percentage | 100% |
Hottab Vietnam Co Ltd [Member] | |
Name of subsidiary | Hottab Vietnam Co. Ltd |
Place of incorporation | Vietnam |
Entity Incorporation, Date of Incorporation | Apr. 17, 2015 |
Principal activity | Sale of POS hardware and software |
Share capital | VND 1,000,000,000 |
Equity Method Investment, Ownership Percentage | 100% |
Hottab Asset Company Limited [Member] | |
Name of subsidiary | Hottab Asset Company Limited |
Place of incorporation | Vietnam |
Entity Incorporation, Date of Incorporation | Jul. 25, 2019 |
Principal activity | Sale of POS hardware and software |
Share capital | VND 5,000,000,000 |
Equity Method Investment, Ownership Percentage | 100% |
Leflair Incorporated [Member] | |
Name of subsidiary | Leflair Incorporated |
Place of incorporation | United States |
Entity Incorporation, Date of Incorporation | Dec. 07, 2021 |
Principal activity | Investment holding |
Share capital | US$ 1 |
Equity Method Investment, Ownership Percentage | 100% |
S O P A Capital Limited [Member] | |
Name of subsidiary | SOPA Capital Limited |
Place of incorporation | United Kingdom |
Entity Incorporation, Date of Incorporation | Dec. 07, 2021 |
Principal activity | Investment holding |
Share capital | GBP 1 |
Equity Method Investment, Ownership Percentage | 100% |
S O P A Phil Incorporated [Member] | |
Name of subsidiary | SOPA (Phil) Incorporated |
Place of incorporation | Philippines |
Entity Incorporation, Date of Incorporation | Jan. 11, 2022 |
Principal activity | Investment holding |
Share capital | PHP 11,000,000 |
Equity Method Investment, Ownership Percentage | 100% |
New Retail Experience Incorporated [Member] | |
Name of subsidiary | New Retail Experience Incorporated |
Place of incorporation | Philippines |
Entity Incorporation, Date of Incorporation | Jan. 16, 2020 |
Principal activity | On-line Grocery delivery platform |
Share capital | PHP 3,750,000 |
Equity Method Investment, Ownership Percentage | 100% |
Dream Space Trading Co Ltd [Member] | |
Name of subsidiary | Dream Space Trading Co Ltd |
Place of incorporation | Vietnam |
Entity Incorporation, Date of Incorporation | May 23, 2018 |
Principal activity | On-line Grocery and food delivery platform |
Share capital | VND 500,000,000 |
Equity Method Investment, Ownership Percentage | 100% |
Push Delievery Pte Ltd [Member] | |
Name of subsidiary | Push Delivery Pte Ltd |
Place of incorporation | Singapore |
Entity Incorporation, Date of Incorporation | Jan. 07, 2022 |
Principal activity | Investment holding |
Share capital | US$ 2,000 |
Equity Method Investment, Ownership Percentage | 100% |
Gorilla Networks Pte Ltd [Member] | |
Name of subsidiary | Gorilla Networks Pte. Ltd. |
Place of incorporation | Singapore |
Entity Incorporation, Date of Incorporation | Sep. 03, 2019 |
Principal activity | Investment holding |
Share capital | US$ 2,620,000 and SGD 730,000 |
Equity Method Investment, Ownership Percentage | 100% |
Gorilla Connect Pte Ltd [Member] | |
Name of subsidiary | Gorilla Connect Pte. Ltd. |
Place of incorporation | Singapore |
Entity Incorporation, Date of Incorporation | May 18, 2022 |
Principal activity | Telecommunication resellers |
Share capital | SGD 100 |
Equity Method Investment, Ownership Percentage | 100% |
Gorilla Mobile Singapore Pte Ltd [Member] | |
Name of subsidiary | Gorilla Mobile Singapore Pte. Ltd. |
Place of incorporation | Singapore |
Entity Incorporation, Date of Incorporation | Aug. 06, 2020 |
Principal activity | Telecommunication resellers |
Share capital | SGD 100 |
Equity Method Investment, Ownership Percentage | 100% |
Groilla Networks V N L L C [Member] | |
Name of subsidiary | Gorilla Networks (VN) LLC |
Place of incorporation | Vietnam |
Entity Incorporation, Date of Incorporation | Dec. 16, 2020 |
Principal activity | Telecommunication resellers |
Share capital | VND 233,000,000 |
Equity Method Investment, Ownership Percentage | 100% |
DESCRIPTION OF BUSINESS AND O_4
DESCRIPTION OF BUSINESS AND ORGANIZATION (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | ||
Feb. 08, 2022 | Feb. 10, 2021 | Sep. 21, 2021 | Jun. 30, 2022 | |
Subsidiary, Sale of Stock [Line Items] | ||||
Stockholders' Equity Note, Stock Split | 750 for 1 | 1 for 2.5 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 236,111 | |||
Share issued, value | $ 26,000,001 | |||
Sale of Stock, Consideration Received on Transaction | $ 2,124,999 | |||
Underwriting Agreement [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 3,030,300 | |||
Share Price | $ 3.30 | |||
Class of Warrant or Right, Outstanding | 3,030,300 | |||
IPO [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 2,888,889 | |||
Share Price | $ 9 |
LIQUIDITY AND CAPITAL RESOURC_2
LIQUIDITY AND CAPITAL RESOURCES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Liquidity And Capital Resources | |||||
Cash and Cash Equivalents, at Carrying Value | $ 28,012,846 | $ 28,012,846 | $ 23,264,777 | ||
Working capital | 30,243,590 | 30,243,590 | |||
Retained Earnings, Appropriated | 61,405,158 | 61,405,158 | |||
Net Income (Loss) Attributable to Parent | $ 7,586,594 | $ 4,342,751 | 14,177,999 | $ 7,099,731 | |
Net Cash Provided by (Used in) Operating Activities | 5,448,474 | 1,513,720 | |||
Net Cash Provided by (Used in) Investing Activities | 227,873 | 200,000 | |||
Net Cash Provided by (Used in) Financing Activities | 10,351,413 | 1,322,505 | |||
Proceeds from Issuance Initial Public Offering | 10,402,891 | ||||
Proceeds from Issuance of Warrants | 412,890 | 1,322,505 | |||
Repayments of Construction Loans Payable | $ 464,368 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 6 Months Ended |
Jun. 30, 2022 | |
Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Office Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Renovation [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) | Jun. 30, 2022 | Jun. 30, 2021 |
Singapore, Dollars | Period End [Member] | ||
Foreign Currency Exchange Rate, Translation | 0.71874 | 0.74356 |
Singapore, Dollars | Period Average [Member] | ||
Foreign Currency Exchange Rate, Translation | 0.73258 | 0.75028 |
Viet Nam, Dong | Period End [Member] | ||
Foreign Currency Exchange Rate, Translation | 0.000043 | 0.000043 |
Viet Nam, Dong | Period Average [Member] | ||
Foreign Currency Exchange Rate, Translation | 0.000044 | 0.000043 |
India, Rupees | Period End [Member] | ||
Foreign Currency Exchange Rate, Translation | 0.012675 | 0.013450 |
India, Rupees | Period Average [Member] | ||
Foreign Currency Exchange Rate, Translation | 0.013126 | 0.013617 |
Mexico, Pesos | Period End [Member] | ||
Foreign Currency Exchange Rate, Translation | 0.018176 | |
Mexico, Pesos | Period Average [Member] | ||
Foreign Currency Exchange Rate, Translation | 0.019173 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accounting Policies [Abstract] | ||||
Net loss attributable to Society Pass Incorporated | $ (7,504,324) | $ (4,342,751) | $ (14,052,702) | $ (7,099,731) |
Weighted average common shares outstanding – Basic and diluted | 24,347,607 | 7,413,600 | 23,126,632 | 7,413,600 |
Net loss per share – Basic and diluted | $ (0.31) | $ (0.59) | $ (0.61) | $ (0.96) |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) - shares | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidiluted earnings per share | 5,739,199 | 4,298,600 | |
Series A Convertible Preferred Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidiluted earnings per share | [1] | 8,000 | |
Series B Convertible Preferred Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidiluted earnings per share | 764,400 | ||
Series B 1 Convertible Preferred Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidiluted earnings per share | 48,000 | ||
Series C Convertible Preferred Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidiluted earnings per share | 113,100 | ||
Series C 1 Convertible Preferred Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidiluted earnings per share | 2,186,400 | ||
Common Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidiluted earnings per share | [2] | 1,945,270 | |
Underwriter [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidiluted earnings per share | 3,793,929 | ||
Convertible Preferred Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidiluted earnings per share | [3] | 1,178,700 | |
[1]The Series A the conversion formula is aggregate Stated Value divided by IPO price (State Value for each Series A preferred shares is $1,000). These are 8,000 shares of Series A Preferred Stock issued and outstanding (10,000 shares are designated Series A). The conversion formula would be $8 million (the aggregate stated value) divided by IPO price.[2]The Board of Directors have approved a 10-years option at an exercise price of $6.49 per share that will be exercisable at any time.[3]The expiry date of warrants granted with Series C-1 was expired on June 30, 2022. |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Cash Equivalents, at Carrying Value | $ 28,012,846 | $ 28,012,846 | $ 23,264,777 | ||
Cash, FDIC Insured Amount | 250,000 | 250,000 | |||
Time Deposit Liability, Uninsured | 10,780,926 | 10,780,926 | 13,699,082 | ||
Cash, Uninsured Amount | 16,966,211 | 16,966,211 | 9,315,695 | ||
Allowance for Doubtful Accounts, Premiums and Other Receivables | 0 | 0 | 0 | ||
Allowance for obsolete inventories | 0 | $ 0 | 0 | $ 0 | |
Inventory net | 336,476 | 336,476 | 221,068 | ||
Revenues | 499,062 | 7,783 | 944,152 | 17,289 | |
Contract with Customer, Liability | 4,618 | 4,618 | 25,229 | ||
Research and Development Expense, Software (Excluding Acquired in Process Cost) | 17,320 | 36,828 | 36,868 | 66,989 | |
Advertising Expense | 41,284 | 42,184 | 253,290 | 449,392 | |
Operating Lease, Right-of-Use Asset | 710,586 | 710,586 | $ 627,968 | ||
E Commerce [Member] | |||||
Revenues | 482,410 | 0 | 892,715 | 0 | |
Merchant P O S [Member] | |||||
Revenues | 10,941 | 7,714 | 21,890 | 16,954 | |
Grocery Food Delivery [Member] | |||||
Revenues | 8,042 | 0 | 23,836 | 0 | |
Telecommunication Reseller [Member] | |||||
Revenues | $ 5,642 | $ 0 | $ 5,642 | $ 0 |
REVENUE (Details)
REVENUE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Total revenue | $ 499,062 | $ 7,783 | $ 944,152 | $ 17,289 |
Online Ordering [Member] | ||||
Total revenue | 482,410 | 916,551 | ||
Sales Data [Member] | ||||
Total revenue | 5,642 | 5,642 | ||
Software Development [Member] | ||||
Total revenue | 10,941 | 7,714 | 21,890 | 16,954 |
Hardware Sales [Member] | ||||
Total revenue | $ 69 | $ 69 | $ 69 | $ 335 |
REVENUES (Details 1)
REVENUES (Details 1) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Revenue | ||
Contract liabilities, brought forward | $ 25,229 | $ 18,646 |
Add: recognized as deferred revenue | 3,969 | 44,064 |
Less: recognized as current period/year revenue | (24,580) | (37,481) |
Contract liabilities, carried forward | $ 4,618 | $ 25,229 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Revenue from External Customer [Line Items] | |||||
Total revenue | $ 499,062 | $ 7,783 | $ 944,152 | $ 17,289 | |
Total cost of revenue | (499,200) | (86,562) | (959,083) | (104,857) | |
Gross income (loss) | (138) | (78,779) | (14,931) | (87,568) | |
Operating Expenses | |||||
Sales and marketing expenses | (253,290) | (41,284) | (449,392) | (42,184) | |
Impairment loss | 528,583 | 200,000 | |||
Depreciation | (12,380) | (4,395) | (14,617) | (4,451) | |
General and administrative expenses | (7,345,364) | (4,167,802) | (13,186,062) | (6,121,899) | |
Total operating expenses | (7,615,974) | (4,245,914) | (14,200,905) | (6,431,072) | |
Loss from operations | (7,616,112) | (4,324,693) | (14,215,836) | (6,518,640) | |
Other income (expense) | |||||
Interest income | 6,027 | 10 | 6,072 | 16 | |
Interest expense | (384) | (12,157) | (4,429) | (24,214) | |
Other income | 24,672 | 992 | 38,293 | 1,747 | |
Total other income | 30,315 | (11,155) | 39,936 | (572,451) | |
Loss before income taxes | (7,585,797) | (4,335,848) | (14,175,900) | (7,091,091) | |
Loss on settlement of litigation | (550,000) | ||||
Total revenue | (499,062) | (7,783) | (944,152) | (17,289) | |
Total cost of revenue | 499,200 | 86,562 | 959,083 | 104,857 | |
Intangible assets, net | 3,284,230 | 3,284,230 | $ 4,000,000 | ||
Identifiable assets | 37,497,014 | 37,497,014 | 35,176,357 | ||
Payments to Acquire Property, Plant, and Equipment | 58,901 | ||||
Online Grocery And Food Deliveries [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total revenue | 23,836 | 23,836 | |||
Total cost of revenue | (26,898) | (26,898) | |||
Gross income (loss) | (3,062) | (3,062) | |||
Operating Expenses | |||||
Sales and marketing expenses | (818) | (818) | |||
Software development costs | |||||
Impairment loss | |||||
Depreciation | (77) | (77) | |||
Amortization | |||||
General and administrative expenses | (59,372) | (59,372) | |||
Total operating expenses | (60,267) | (60,267) | |||
Loss from operations | (63,329) | (63,329) | |||
Other income (expense) | |||||
Interest income | |||||
Interest expense | |||||
Other income | |||||
Total other income | |||||
Loss before income taxes | (63,329) | (63,329) | |||
Total revenue | (23,836) | (23,836) | |||
Total cost of revenue | 26,898 | 26,898 | |||
Intangible assets, net | |||||
Identifiable assets | 95,155 | 95,155 | |||
Payments to Acquire Property, Plant, and Equipment | |||||
Payments to Acquire Productive Assets | |||||
Telecommunication Reseller [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total revenue | 5,642 | 5,642 | |||
Total cost of revenue | (975) | (975) | |||
Gross income (loss) | 4,667 | 4,667 | |||
Operating Expenses | |||||
Sales and marketing expenses | |||||
Software development costs | |||||
Impairment loss | |||||
Depreciation | (1,270) | (1,270) | |||
Amortization | |||||
General and administrative expenses | (79,852) | (79,852) | |||
Total operating expenses | (81,122) | (81,122) | |||
Loss from operations | (76,455) | (76,455) | |||
Other income (expense) | |||||
Interest income | |||||
Interest expense | |||||
Other income | 1,777 | 1,777 | |||
Total other income | 1,777 | 1,777 | |||
Loss before income taxes | (74,678) | (74,678) | |||
Total revenue | (5,642) | (5,642) | |||
Total cost of revenue | 975 | 975 | |||
Intangible assets, net | 884,230 | 884,230 | |||
Identifiable assets | 184,102 | 184,102 | |||
Payments to Acquire Property, Plant, and Equipment | |||||
Payments to Acquire Productive Assets | |||||
E Commerce [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total revenue | 458,574 | 892,715 | |||
Total cost of revenue | (464,906) | (918,501) | |||
Gross income (loss) | (6,332) | (25,786) | |||
Operating Expenses | |||||
Sales and marketing expenses | (252,472) | (448,574) | |||
Software development costs | |||||
Impairment loss | |||||
Depreciation | 5 | ||||
Amortization | |||||
General and administrative expenses | (435,855) | (606,910) | |||
Total operating expenses | (688,322) | (1,055,484) | |||
Loss from operations | (694,654) | (1,081,270) | |||
Other income (expense) | |||||
Interest income | 146 | 186 | |||
Interest expense | |||||
Other income | 699 | ||||
Total other income | 146 | 885 | |||
Loss before income taxes | (694,508) | (1,080,385) | |||
Total revenue | (458,574) | (892,715) | |||
Total cost of revenue | 464,906 | 918,501 | |||
Intangible assets, net | |||||
Identifiable assets | 699,561 | 699,561 | 9,638,035 | ||
Payments to Acquire Property, Plant, and Equipment | 30,783 | ||||
Payments to Acquire Productive Assets | 30,783 | ||||
Merchant P O S [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total revenue | 11,010 | 7,783 | 21,959 | 17,289 | |
Total cost of revenue | (6,421) | (86,562) | (12,709) | (104,857) | |
Gross income (loss) | 4,589 | (78,779) | 9,250 | (87,568) | |
Operating Expenses | |||||
Sales and marketing expenses | (41,284) | (42,184) | |||
Software development costs | (17,320) | (36,828) | (36,868) | (66,989) | |
Impairment loss | (528,583) | (200,000) | |||
Depreciation | (6,653) | (2,214) | (13,270) | (4,451) | |
Amortization | (800,000) | (800,000) | (1,600,000) | (1,600,000) | |
General and administrative expenses | (5,962,290) | (3,365,588) | (10,825,311) | (4,517,448) | |
Total operating expenses | (6,786,263) | (4,245,914) | (13,004,032) | (6,431,072) | |
Loss from operations | (6,781,674) | (4,324,693) | (12,994,782) | (6,518,640) | |
Other income (expense) | |||||
Interest income | 5,881 | 10 | 5,886 | 16 | |
Interest expense | (384) | (12,157) | (4,429) | (24,214) | |
Other income | 22,895 | 992 | 35,817 | 1,747 | |
Total other income | 28,392 | (11,115) | 37,274 | (572,451) | |
Loss before income taxes | (6,753,282) | (4,335,848) | (12,957,508) | (7,091,091) | |
Loss on settlement of litigation | (550,000) | ||||
Total revenue | (11,010) | (7,783) | (21,959) | (17,289) | |
Total cost of revenue | 6,421 | 86,562 | 12,709 | 104,857 | |
Intangible assets, net | 2,854,519 | 2,854,519 | 4,000,000 | ||
Identifiable assets | 32,779,447 | 32,779,447 | 21,538,322 | ||
Payments to Acquire Property, Plant, and Equipment | 57,613 | ||||
Payments to Acquire Productive Assets | 57,613 | ||||
Total [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total revenue | 499,062 | 7,783 | 944,152 | 17,289 | |
Total cost of revenue | (499,200) | (86,562) | (959,083) | (104,857) | |
Gross income (loss) | (138) | (78,779) | (14,931) | (87,568) | |
Operating Expenses | |||||
Sales and marketing expenses | (253,290) | (41,284) | (449,392) | (42,184) | |
Software development costs | (17,320) | (36,828) | (36,868) | (66,989) | |
Impairment loss | (528,583) | (200,000) | |||
Depreciation | (7,995) | (2,214) | (14,617) | (4,451) | |
Amortization | (800,000) | (800,000) | (1,600,000) | (1,600,000) | |
General and administrative expenses | (6,537,369) | (3,365,588) | (11,571,445) | (4,517,448) | |
Total operating expenses | (7,615,974) | (4,245,914) | (14,200,905) | (6,431,072) | |
Loss from operations | (7,616,112) | (4,324,693) | (14,215,836) | (6,518,640) | |
Other income (expense) | |||||
Interest income | 6,027 | 10 | 6,072 | 16 | |
Interest expense | (384) | (12,157) | (4,429) | (24,214) | |
Other income | 24,672 | 992 | 38,293 | 1,747 | |
Total other income | 30,315 | (11,155) | 39,936 | (572,451) | |
Loss before income taxes | (7,585,797) | (4,335,848) | (14,175,900) | (7,091,091) | |
Loss on settlement of litigation | (550,000) | ||||
Total revenue | (499,062) | (7,783) | (944,152) | (17,289) | |
Total cost of revenue | 499,200 | 86,562 | 959,083 | 104,857 | |
Intangible assets, net | 3,738,749 | 3,738,749 | 4,000,000 | ||
Identifiable assets | 33,758,265 | 33,758,265 | $ 31,176,357 | ||
Payments to Acquire Property, Plant, and Equipment | 88,396 | ||||
Payments to Acquire Productive Assets | 88,396 | ||||
Sale Online Ordering [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total revenue | 466,616 | 892,715 | |||
Total cost of revenue | |||||
Other income (expense) | |||||
Total revenue | (466,616) | (892,715) | |||
Total cost of revenue | |||||
Sale Online Ordering [Member] | Online Grocery And Food Deliveries [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total revenue | |||||
Total cost of revenue | |||||
Other income (expense) | |||||
Total revenue | |||||
Total cost of revenue | |||||
Sale Online Ordering [Member] | Telecommunication Reseller [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total revenue | |||||
Total cost of revenue | |||||
Other income (expense) | |||||
Total revenue | |||||
Total cost of revenue | |||||
Sale Online Ordering [Member] | E Commerce [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total revenue | 466,616 | 892,715 | |||
Total cost of revenue | |||||
Other income (expense) | |||||
Total revenue | (466,616) | (892,715) | |||
Total cost of revenue | |||||
Sales Online Ordering [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total revenue | 482,410 | 916,551 | |||
Total cost of revenue | (456,968) | (852,858) | |||
Other income (expense) | |||||
Total revenue | (482,410) | (916,551) | |||
Total cost of revenue | 456,968 | 852,858 | |||
Sales Online Ordering [Member] | Merchant P O S [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total revenue | |||||
Total cost of revenue | |||||
Other income (expense) | |||||
Total revenue | |||||
Total cost of revenue | |||||
Sales Online Platform [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total revenue | 15,794 | 23,836 | |||
Total cost of revenue | (24,261) | (26,898) | |||
Other income (expense) | |||||
Total revenue | (15,794) | (23,836) | |||
Total cost of revenue | 24,261 | 26,898 | |||
Sales Online Platform [Member] | Online Grocery And Food Deliveries [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total revenue | 23,836 | 23,836 | |||
Total cost of revenue | (26,898) | (26,898) | |||
Other income (expense) | |||||
Total revenue | (23,836) | (23,836) | |||
Total cost of revenue | 26,898 | 26,898 | |||
Sales Online Platform [Member] | Telecommunication Reseller [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total revenue | |||||
Total cost of revenue | |||||
Other income (expense) | |||||
Total revenue | |||||
Total cost of revenue | |||||
Sales Online Platform [Member] | E Commerce [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total revenue | 8,042 | ||||
Total cost of revenue | (2,637) | ||||
Other income (expense) | |||||
Total revenue | (8,042) | ||||
Total cost of revenue | 2,637 | ||||
Sales Online Platform [Member] | Merchant P O S [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total revenue | |||||
Total cost of revenue | |||||
Other income (expense) | |||||
Total revenue | |||||
Total cost of revenue | |||||
Sales Data [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total revenue | 5,642 | 5,642 | |||
Total cost of revenue | |||||
Other income (expense) | |||||
Total revenue | (5,642) | (5,642) | |||
Total cost of revenue | |||||
Sales Data [Member] | Online Grocery And Food Deliveries [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total revenue | |||||
Total cost of revenue | |||||
Other income (expense) | |||||
Total revenue | |||||
Total cost of revenue | |||||
Sales Data [Member] | Telecommunication Reseller [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total revenue | 5,642 | 5,642 | |||
Total cost of revenue | |||||
Other income (expense) | |||||
Total revenue | (5,642) | (5,642) | |||
Total cost of revenue | |||||
Sales Data [Member] | E Commerce [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total revenue | |||||
Total cost of revenue | |||||
Other income (expense) | |||||
Total revenue | |||||
Total cost of revenue | |||||
Sales Data [Member] | Merchant P O S [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total revenue | |||||
Total cost of revenue | |||||
Other income (expense) | |||||
Total revenue | |||||
Total cost of revenue | |||||
Software Development [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total revenue | 10,941 | 7,714 | 21,890 | 16,954 | |
Total cost of revenue | (41,212) | (86,498) | (105,205) | (104,692) | |
Other income (expense) | |||||
Total revenue | (10,941) | (7,714) | (21,890) | (16,954) | |
Total cost of revenue | 41,212 | 86,498 | 105,205 | 104,692 | |
Software Development [Member] | Online Grocery And Food Deliveries [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total revenue | |||||
Total cost of revenue | |||||
Other income (expense) | |||||
Total revenue | |||||
Total cost of revenue | |||||
Software Development [Member] | Telecommunication Reseller [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total revenue | |||||
Total cost of revenue | |||||
Other income (expense) | |||||
Total revenue | |||||
Total cost of revenue | |||||
Software Development [Member] | E Commerce [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total revenue | 10,941 | ||||
Total cost of revenue | (34,836) | (92,541) | |||
Other income (expense) | |||||
Total revenue | (10,941) | ||||
Total cost of revenue | 34,836 | 92,541 | |||
Software Development [Member] | Merchant P O S [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total revenue | 10,941 | 7,714 | 21,890 | 16,954 | |
Total cost of revenue | (6,376) | (86,498) | (12,664) | (104,692) | |
Other income (expense) | |||||
Total revenue | (10,941) | (7,714) | (21,890) | (16,954) | |
Total cost of revenue | 6,376 | 86,498 | 12,664 | 104,692 | |
Hardware [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total revenue | 69 | 69 | 69 | 335 | |
Total cost of revenue | (45) | (64) | (45) | (165) | |
Other income (expense) | |||||
Total revenue | (69) | (69) | (69) | (335) | |
Total cost of revenue | 45 | 64 | 45 | 165 | |
Hardware [Member] | Online Grocery And Food Deliveries [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total revenue | |||||
Total cost of revenue | |||||
Other income (expense) | |||||
Total revenue | |||||
Total cost of revenue | |||||
Hardware [Member] | Telecommunication Reseller [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total revenue | |||||
Total cost of revenue | |||||
Other income (expense) | |||||
Total revenue | |||||
Total cost of revenue | |||||
Hardware [Member] | E Commerce [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total revenue | |||||
Total cost of revenue | |||||
Other income (expense) | |||||
Total revenue | |||||
Total cost of revenue | |||||
Hardware [Member] | Merchant P O S [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total revenue | 69 | 69 | 69 | 335 | |
Total cost of revenue | (45) | (64) | (45) | (165) | |
Other income (expense) | |||||
Total revenue | (69) | (69) | (69) | (335) | |
Total cost of revenue | 45 | $ 64 | 45 | $ 165 | |
Cost Online Ordering [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total cost of revenue | (432,707) | (825,960) | |||
Other income (expense) | |||||
Total cost of revenue | 432,707 | 825,960 | |||
Cost Online Ordering [Member] | E Commerce [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total cost of revenue | (432,707) | (825,960) | |||
Other income (expense) | |||||
Total cost of revenue | 432,707 | 825,960 | |||
Cost Of Data [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total cost of revenue | (975) | (975) | |||
Other income (expense) | |||||
Total cost of revenue | 975 | 975 | |||
Cost Of Data [Member] | Telecommunication Reseller [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total cost of revenue | (975) | (975) | |||
Other income (expense) | |||||
Total cost of revenue | $ 975 | $ 975 |
SEGMENT REPORTING (Details 1)
SEGMENT REPORTING (Details 1) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 499,062 | $ 7,783 | $ 944,152 | $ 17,289 |
INDONESIA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 10,328 | 6,930 | 20,696 | 14,974 |
VIET NAM | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 469,137 | 853 | 896,661 | 2,315 |
SINGAPORE | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 5,641 | 5,641 | ||
PHILIPPINES | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 13,956 | $ 21,154 |
BUSINESS COMBINATION (Details)
BUSINESS COMBINATION (Details) - Acquisition Of New Retail [Member] | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Fair value of stock at closing | $ 800,000 |
Cash paid | 200,000 |
Less cash received | (5,445) |
Purchase price | $ 994,555 |
BUSINESS COMBINATION (Details 1
BUSINESS COMBINATION (Details 1) - Acquisition Of New Retail [Member] | Jun. 30, 2022 USD ($) |
Acquired assets: | |
Trade receivables | $ 4,728 |
Other receivables | 9,603 |
Property and equipment | 204 |
Total acquired assets | 14,535 |
Less: Assumed liabilities | |
Trade payables | 2,804 |
Accrued liabilities and other payable | 279 |
Total Assumed liabilities | 3,083 |
Fair value of net assets assumed | 11,452 |
Goodwill recorded | 983,103 |
Cash consideration allocated | $ 994,555 |
BUSINESS COMBINATION (Details 2
BUSINESS COMBINATION (Details 2) - Acquisition Of New Retail [Member] - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue | $ 1,181,847 | $ 185,266 |
Net loss | $ (14,202,024) | $ (2,763,079) |
Net loss per share | $ (0.57) | $ (0.15) |
BUSINESS COMBINATION (Details 3
BUSINESS COMBINATION (Details 3) - Acquisition Of Dream Space [Member] | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Cash paid | $ 104 |
Less cash received | |
Purchase price | $ 104 |
BUSINESS COMBINATION (Details 4
BUSINESS COMBINATION (Details 4) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Less: Assumed liabilities | ||
Exchange difference | $ (6,993) | $ 1,014 |
Acquisition Of Dream Space [Member] | ||
Acquired assets: | ||
Trade receivables | 1,168 | |
Other receivables | 5 | |
Cash | 1,429 | |
Total acquired assets | 2,602 | |
Less: Assumed liabilities | ||
Trade payables | 1,228 | |
Accrued liabilities and other payable | 2,557 | |
Total Assumed liabilities | 3,805 | |
Fair value of net liabilities assumed | (1,203) | |
Exchange difference | 1,307 | |
Goodwill recorded | ||
Cash consideration allocated | $ 104 |
BUSINESS COMBINATION (Details 5
BUSINESS COMBINATION (Details 5) - Acquisition Of Dream Space [Member] - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue | $ 947,354 | $ 25,728 |
Net loss | $ (14,200,611) | $ (7,099,708) |
Net loss per share | $ (0.57) | $ (0.38) |
BUSINESS COMBINATION (Details 6
BUSINESS COMBINATION (Details 6) - Acquisition Of Gorilla [Member] | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Fair value of stock at closing | $ 338,785 |
Less: cash received | (25,583) |
Purchase price | $ 313,202 |
BUSINESS COMBINATION (Details 7
BUSINESS COMBINATION (Details 7) - Acquisition Of Gorilla [Member] | Jun. 30, 2022 USD ($) |
Acquired assets: | |
Inventories | $ 4,348 |
Trade receivables | 3,273 |
Other receivables | 58,029 |
Property and equipment | 8,876 |
Intangible assets (Apps development cost) | 899,891 |
Total acquired assets | 974,417 |
Less: Assumed liabilities | |
Trade payables | 534,907 |
Accrued liabilities and other payable | 51,538 |
Amount due to related parties | 73 |
Amount due to shareholder | 74,697 |
Total acquired Liabilities | 661,215 |
Fair value of net assets assumed | 313,202 |
Goodwill recorded | |
Net consideration allocated, net | $ 313,202 |
BUSINESS COMBINATION (Details 8
BUSINESS COMBINATION (Details 8) - Acquisition Of Gorilla [Member] - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue | $ 1,076,601 | $ 17,289 |
Net loss | $ (17,143,580) | $ (7,129,282) |
Net loss per share | $ (0.69) | $ (0.38) |
BUSINESS COMBINATION (Details N
BUSINESS COMBINATION (Details Narrative) - USD ($) | 6 Months Ended | ||
Jun. 30, 2022 | Feb. 25, 2022 | Feb. 14, 2022 | |
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | 100% | 100% | |
Sale of Stock, Consideration Received on Transaction | $ 2,124,999 | ||
Share issued, value | 26,000,001 | ||
Goodwill | $ 983,103 | ||
New Retail [Member] | |||
Sale of Stock, Consideration Received on Transaction | 226,629 | ||
Share issued, value | 800,000 | ||
Aggregate value | 200,000 | ||
Dream Space [Member] | |||
Share issued, value | 2,300,000 | ||
Aggregate value | 104 | ||
Acquisition Of Gorilla [Member] | |||
Share issued, value | 338,785 | ||
Assumed liabilities | $ 661,215 |
DEPOSITS, PREPAYMENTS AND OTH_3
DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | ||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Deposits | $ 129,289 | $ 129,289 | $ 68,991 | |||
Prepayments (a) | 587,437 | 587,437 | 32,279 | |||
Prepayments for consultancy fee (b) | [1] | 3,434,666 | 3,434,666 | 6,010,667 | ||
Prepayments for first insurance funding (c) | 247,500 | 247,500 | 742,500 | |||
Value added tax | 142,536 | 142,536 | 96,818 | |||
Other receivables | 6,787 | 6,787 | 1,666 | |||
Advance to related party | 1,538 | 1,538 | ||||
Total | 4,549,753 | 4,549,753 | 6,952,921 | |||
Prepayments for consultancy fee | (858,667) | |||||
Current portion | 4,549,753 | 4,549,753 | 6,094,254 | |||
Consideration service, amount | 3,250,000 | 3,250,000 | 3,190,000 | |||
Consulting expense | 1,288,000 | $ 0 | 2,576,000 | $ 0 | ||
Insurance prepayment | 247,500 | 247,500 | 742,500 | |||
Amortization of prepaid insurance expense | 247,500 | $ 0 | 495,000 | $ 0 | ||
China America Culture Media Inc [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Due to relate party | 1,733,333 | 1,733,333 | 3,033,334 | |||
New Continental Technology Inc [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Due to relate party | $ 1,701,333 | $ 1,701,333 | $ 2,977,333 | |||
[1]On December 6, 2021, the Company entered into two consulting agreements with China-America Culture Media Inc. and New Continental Technology Inc., acting as consultants to assist the Company in completing certain Business Opportunities with potential partners until February 28, 2023. The consideration of the service are $ 3,250,000 3,190,000 1,733,333 3,033,334 1,701,333 2,977,333 2,576,000 0 1,288,000 0 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Inventories | ||
Finished goods | $ 336,476 | $ 221,068 |
Reserve for excess and obsolete inventory | ||
Total Inventories | $ 336,476 | $ 221,068 |
INVENTORIES (Details Narrative)
INVENTORIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Inventories | |||||
Cost of Goods and Services Sold | $ 456,968 | $ 0 | $ 852,858 | $ 0 | |
Inventories, net | $ 336,476 | $ 336,476 | $ 221,068 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 8,885,955 | $ 8,001,725 |
Less: accumulated amortization | (5,601,725) | (4,001,725) |
Intangible assets, net | $ 3,284,230 | 4,000,000 |
Software Platform [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 2 months 15 days | |
Intangible assets, gross | $ 8,000,000 | 8,000,000 |
Software and Software Development Costs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 884,230 | 0 |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 1,725 | $ 1,725 |
Other Intangible Assets [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 3 years | |
Other Intangible Assets [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years |
INTANGIBLE ASSETS (Details 1)
INTANGIBLE ASSETS (Details 1) | Jun. 30, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 (remaining period) | $ 1,600,000 |
2023 | 800,000 |
Total | $ 2,400,000 |
INTANGIBLE ASSETS (Details Narr
INTANGIBLE ASSETS (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Oct. 02, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Preferred Stock, Shares Subscribed but Unissued | 8,000 | 8,000 | ||||
Stated value | $ 1,000 | $ 1,000 | ||||
Stock Issued | $ 3,750,000 | $ 3,854,908 | ||||
Amortization of Intangible Assets | $ 800,000 | $ 800,000 | 1,600,000 | $ 1,600,000 | ||
Finite-Lived Intangible Assets, Gross | 8,885,955 | 8,885,955 | $ 8,001,725 | |||
Software and Software Development Costs [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-Lived Intangible Assets, Gross | $ 884,230 | $ 884,230 | $ 0 | |||
Series A Convertible Preferred Stock [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Preferred Stock, Shares Subscribed but Unissued | 8,000 | 8,000 | ||||
Stated value | $ 1,000 | $ 1,000 | ||||
Series A Preferred Stock [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Stock Issued | $ 8,000,000 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 140,066 | $ 77,764 |
Less: accumulated depreciation | (36,360) | (21,743) |
Less: exchange difference | (6,993) | 1,014 |
Property, Plant and Equipment, Net | 96,713 | 57,035 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 84,942 | 33,207 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 8,286 | 16,826 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 8,387 | |
Renovation [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 38,451 | $ 27,731 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 12,380 | $ 4,395 | $ 14,617 | $ 4,451 |
ASSET PURCHASE AGREEMENT (Detai
ASSET PURCHASE AGREEMENT (Details) | Jun. 30, 2022 USD ($) |
Acquired assets: | |
Intellectual property | $ 200,000 |
Accrued liabilities and other payable | |
Fair value of net assets acquired | 200,000 |
Impairment loss recorded | (200,000) |
Net asset value |
ASSET PURCHASE AGREEMENT (Det_2
ASSET PURCHASE AGREEMENT (Details 1) | 6 Months Ended |
Jun. 30, 2022 | |
Asset Purchase Agreement | |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 5% |
Effective Income Tax Rate Reconciliation, Noncontrolling Interest Income (Loss), Percent | |
Parent Co. acquired/exchanged the non controlling interest holding with their shares | |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 5% |
ASSET PURCHASE AGREEMENT (Det_3
ASSET PURCHASE AGREEMENT (Details 2) | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Asset Purchase Agreement | |
Non Controlling Interest Beginning Balance | $ (102,784) |
Acquisition cost | |
Net loss attributable to non-controlling interest | (125,297) |
Foreign currency translation adjustment | 3,356 |
Non Controlling Interest Ending Balance | $ (224,725) |
ASSET PURCHASE AGREEMENT (Det_4
ASSET PURCHASE AGREEMENT (Details 3) | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Asset Purchase Agreement | |
Net loss generated by SoPa Technology Pte Ltd | $ (2,546,684) |
Noncontrolling Interest, Ownership Percentage by Parent | 5% |
Net loss attributable to non-controlling interest | $ (125,297) |
Foreign currency translation adjustment | 3,356 |
Non Controlling Interest | $ (121,941) |
ASSET PURCHASE AGREEMENT (Det_5
ASSET PURCHASE AGREEMENT (Details Narrative) - USD ($) | 6 Months Ended | ||||
Oct. 02, 2021 | Jun. 06, 2019 | Jun. 30, 2022 | Dec. 31, 2021 | Feb. 16, 2021 | |
Asset Purchase Agreement | |||||
Cash payable | $ 200,000 | ||||
Amount paid to related parties | $ 40,000 | ||||
Notes payable | 160,000 | ||||
ImpairmentLoss | 200,000 | ||||
Short-Term Debt, Interest Rate Increase | 15% | ||||
Stock Issued | $ 3,750,000 | $ 3,854,908 | |||
Sale of Stock, Price Per Share | $ 9 | ||||
Exchange of shares | 277,409 | ||||
Noncontrolling interest | $ 224,725 | $ 102,784 | |||
Noncontrolling Interest, Ownership Percentage by Parent | 5% | ||||
Minority interests | $ 125,297 |
AMOUNTS DUE TO RELATED PARTIE_2
AMOUNTS DUE TO RELATED PARTIES (Details) - USD ($) | 6 Months Ended | ||||
Oct. 02, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | ||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||
Due to Related Parties | $ 22,822 | $ 524,763 | |||
Due to Related Parties, Current | $ 22,822 | 524,763 | |||
Unpaid compensation | $ 960,833 | ||||
Debt Instrument, Convertible, Conversion Price | $ 0.83 | ||||
Conversion of Stock, Shares Converted | 1,157,630 | ||||
Stock Issued | $ 3,750,000 | $ 3,854,908 | |||
Additional compensation expenses | 2,894,075 | ||||
Related Party [Member] | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||
Due to Related Parties | [1] | 22,822 | 24,763 | ||
Debt Instrument, Decrease, Forgiveness | 72,176 | ||||
Due to Related Parties, Current | 22,822 | 24,763 | |||
Director [Member] | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||
Due to Related Parties | [2] | 500,000 | |||
Due to Related Parties, Current | $ 0 | $ 500,000 | |||
[1]The amounts represented temporary advances to the Company including related parties (two officers), which were unsecured, interest-free and had no fixed terms of repayments. On September 30, 2021, the Company received the notifications that the outstanding amounts of $ 72,176 22,822 24,763 960,833 0.83 1,157,630 3,854,908 2,894,075 0 500,000 |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 903,715 | $ 261,907 |
Accrued liabilities and other payables- Related Party (a) | 434,301 | 60,253 |
Accrued liabilities and other payables (b) | 837,355 | 753,345 |
Other Accounts payable | 1,271,656 | 813,959 |
Total Accounts payable | $ 2,175,371 | $ 1,075,505 |
ACCOUNTS PAYABLE AND ACCRUED _4
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details 1) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |||
Accrued payroll | $ 75,627 | $ 85,888 | |
Accrued VAT expenses | 76,343 | 62,044 | |
Accrued taxes | 72,703 | 62,272 | |
Other accrual (d) | [1] | 367,682 | 298,141 |
Other payables (c) | [2] | 245,000 | 245,000 |
Total Accrued liabilities | $ 837,355 | $ 753,345 | |
[1]This included $ 255,000 168,000 75,000 48,000 45,000 75,000 75,000 75,000 75,000 |
ACCOUNTS PAYABLE AND ACCRUED _5
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |
Jan. 31, 2019 | Jun. 30, 2022 | Dec. 31, 2021 | May 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Accounts payable | $ 903,715 | $ 261,907 | ||
Banking Regulation, Total Capital, Actual | $ 168,000 | |||
Assets, Average Outstanding | 75,000 | 75,000 | ||
S O S V [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Payments for (Proceeds from) Loans Receivable | 75,000 | |||
Acquisition Of Gorilla [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Purchase price consideration | 255,000 | |||
Share-Based Payment Arrangement, Tranche One [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Capital Leases, Future Minimum Payments Receivable | 75,000 | |||
H P L [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Banking Regulation, Total Capital, Actual | 75,000 | |||
H P L 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Banking Regulation, Total Capital, Actual | 48,000 | |||
H P L 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Banking Regulation, Total Capital, Actual | $ 45,000 | |||
Gorilla Business [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Accounts payable | $ 532,752 | |||
Related Party 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Unpaid salaries | $ 3,440 | $ 6,818 |
LEASES (Details)
LEASES (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | ||
Operating lease expense (per ASC 842) | $ 139,420 | $ 20,668 |
Short-term lease expense (other than ASC 842) | 4,653 | 810 |
Total lease expense | $ 144,073 | $ 21,478 |
LEASES (Details 1)
LEASES (Details 1) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2023 | $ 316,436 | |
2024 | 266,661 | |
2025 | 137,841 | |
2026 | 17,760 | |
Total | 738,698 | |
Less: interest | (19,080) | |
Present value of lease liabilities | 719,618 | $ 629,130 |
Less: non-current portion | (426,650) | (411,053) |
Present value of lease liabilities – current liability | $ 292,968 | $ 218,077 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Lessee, Operating Lease, Discount Rate | 5.26% | |
Operating Lease, Weighted Average Remaining Lease Term | 2 years 6 months 25 days | |
Capital Lease Obligations | $ 243,186 | |
Operating Lease, Right-of-Use Asset | 710,586 | $ 627,968 |
Operating Lease, Liability | $ 719,618 | $ 629,130 |
DUE TO FIRST INSURANCE FUNDIN_2
DUE TO FIRST INSURANCE FUNDING (Details) | Dec. 31, 2022 USD ($) |
Due To First Insurance Funding | |
2023 | $ 150,989 |
Less: imputed interest | (2,852) |
Present value of first insurance funding – current liability | $ 148,137 |
DUE TO FIRST INSURANCE FUNDIN_3
DUE TO FIRST INSURANCE FUNDING (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Oct. 07, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Due To First Insurance Funding | ||||||
Federal Deposit Insurance Corporation Premium Expense | $ 990,000 | |||||
Insurance Funding Percentage | 75% | |||||
Payment to Acquire Life Insurance Policy, Investing Activities | $ 990,000 | |||||
Insurance funding Description | The Company paid the down-payment of $247,500 (25%) and remaining balance $742,500 (75%) to be repaid by 10 installments until August 7, 2022. | |||||
Accounts Payable, Interest-Bearing, Interest Rate | 5.35% | 5.35% | ||||
Amortization of Debt Discount (Premium) | $ 384 | $ 0 | $ 4,429 | $ 0 | ||
Repayments of Other Debt | 454,430 | $ 151,476 | ||||
Balance outstanding amount | $ 148,137 | $ 596,047 |
LOAN (Details)
LOAN (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Mar. 15, 2022 | Jan. 23, 2022 | Aug. 27, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | ||
Debt Instrument [Line Items] | |||||||||
Loan | $ 63,460 | $ 63,460 | |||||||
Loan | 63,460 | 63,460 | |||||||
Interest expense | 384 | $ 12,157 | 4,429 | $ 24,214 | |||||
S G D [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Loan | $ 35,937 | ||||||||
Loan term | 9 months | ||||||||
Maturity date | Dec. 15, 2022 | ||||||||
Interest rate | 30% | ||||||||
Interest expense | $ 0 | 916 | 0 | 916 | |||||
S G D 1 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Loan | $ 21,562 | ||||||||
Loan term | 12 months | ||||||||
Maturity date | Jan. 23, 2023 | ||||||||
Interest rate | 30% | ||||||||
Interest expense | 0 | 440 | 0 | 440 | |||||
S G D 2 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Loan | $ 35,937 | ||||||||
Loan term | 60 months | ||||||||
Maturity date | Aug. 31, 2026 | ||||||||
Interest rate | 4.75% | ||||||||
Interest expense | $ 0 | 121 | $ 0 | 121 | |||||
Loan A [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Loan | [1] | 22,161 | 22,161 | ||||||
Loan B [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Loan | [2] | 10,781 | 10,781 | ||||||
Loan C [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Loan | [3] | $ 30,518 | $ 30,518 | ||||||
[1]On March 15, 2022, the newly acquired Company borrow loan from credit company of SGD 50,000, approximately US$ 35,937 9 December 15, 2022 30 916 0 916 0 21,562 12 January 23, 2023 30 440 0 440 0 35,937 60 August 31, 2026 4.75 121 0 121 0 |
SHAREHOLDERS' DEFICIT (Details)
SHAREHOLDERS' DEFICIT (Details) - Warrant [Member] - $ / shares | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | [1] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Warrants Beginning balance | 148,305 | 2,047 | [1] | ||||
Weighted average exercise price Beginning balance | $ 20.57 | $ 420 | [1] | ||||
Weighted average remaining contractual life (in years) Beginning balance | 4 years 10 months 17 days | 7 months 6 days | |||||
Warrants Issued | 3,728,784 | [2] | 2,120 | [3] | |||
Weighted average exercise price Issued | $ 3.28 | [2] | $ 420 | [3] | |||
Weighted average remaining contractual life (in years), issued | 4 years 1 month 9 days | [2] | 6 months | [3] | |||
Warrants Issued | [1] | 144,445 | |||||
Weighted average exercise price Issued one | [1] | $ 9.90 | |||||
Weighted average remaining contractual life (in years), issued one | [1] | 5 years | |||||
Warrants Exercised | (79,661) | (307) | |||||
Weighted average exercise price Exercised | $ (3.28) | $ (420) | |||||
Warrants Expired | (3,500) | ||||||
Expired | $ (420) | ||||||
Weighted average remaining contractual life (in years), exercised | 6 months | ||||||
Warrants Ending balance | 3,793,928 | 148,305 | 2,047 | ||||
Weighted average exercise price Ending balance | $ 3.57 | $ 20.57 | $ 420 | ||||
Weighted average remaining contractual life (in years) Ending balance | 4 years 5 months 12 days | ||||||
[1]Common stock will be issued if those warrants exercise the 144,445 warrants having intrinsic value of $-0- and $73,667 as of June 30, 2022 and December 31, 2021, respectively.[2]Common stock will be issued if those warrants exercise 3,649,484 warrants having no intrinsic value as of June 30, 2022.[3]Preferred stock series C-1 will be issued if those warrants exercise. Those preferred stock series C-1 was automatically converted into the 0 and 1,158,000 common stock with the intrinsic value of $0 and $10,433,580 as of June 30, 2022 and December 31, 2021, respectively. |
SHAREHOLDERS' DEFICIT (Details
SHAREHOLDERS' DEFICIT (Details 1) | 6 Months Ended |
Jun. 30, 2022 $ / shares | |
Before Modification [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Dividend rate | 0% |
Risk-free rate | 0.06% |
Weighted average expected life (years) | 9 months |
Expected volatility | 25% |
Exercise price | $ 1.4 |
After Modification [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Dividend rate | 0% |
Risk-free rate | 0.12% |
Weighted average expected life (years) | 18 months |
Expected volatility | 25% |
Exercise price | $ 1.4 |
SHAREHOLDERS' DEFICIT (Detail_2
SHAREHOLDERS' DEFICIT (Details 2) - Equity Option [Member] - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Offsetting Assets [Line Items] | ||
Warrants Beginning balance | 1,945,270 | |
Weighted average exercise price Beginning balance | $ 6.49 | |
Share option Granted | 1,945,270 | |
Weighted average exercise price granted | $ 6.49 | |
Weighted average remaining contractual life (in years), granted | 10 years | |
Shares option Exercised | ||
Weighted average exercise price Exercised | ||
Shares option Expired | ||
Weighted average exercise price Expired | ||
Weighted average remaining contractual life (in years) | 9 years 6 months | 10 years |
Warrants Ending balance | 1,945,270 | 1,945,270 |
Weighted average exercise price Ending balance | $ 6.49 | $ 6.49 |
SHAREHOLDERS' DEFICIT (Detail_3
SHAREHOLDERS' DEFICIT (Details 3) - Equity Option [Member] - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Offsetting Assets [Line Items] | ||
Preferred Stock, Dividend Rate, Percentage | 0% | 0% |
Risk-free rate | 1.52% | 1.52% |
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life | 10 months | 10 years |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 130% | 130% |
Share price | $ 6.49 | $ 6.49 |
SHAREHOLDERS' DEFICIT (Detail_4
SHAREHOLDERS' DEFICIT (Details 4) - Directors Stock Awards [Member] - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Warrants Beginning balance | 651,960 | |
Weighted average exercise price Beginning balance | $ 7.65 | |
Share awards Granted | 814,950 | |
Weighted average grant date fair value per share granted | $ 7.65 | |
Weighted average remaining contractual life (in years), issued | 2 years | |
Share awards Exercised | (162,990) | (162,990) |
Weighted average grant date fair value per share Exercised | $ 7.65 | $ 7.65 |
Share awards Expired | ||
Cancelled | ||
Weighted average remaining contractual life (in years) | 1 year 2 months 1 day | 1 year 8 months 1 day |
Warrants Ending balance | 488,970 | 651,960 |
Weighted average exercise price Ending balance | $ 7.65 | $ 7.65 |
SHAREHOLDERS' DEFICIT (Detail_5
SHAREHOLDERS' DEFICIT (Details 5) | 6 Months Ended |
Jun. 30, 2022 shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Total | 448,970 |
2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Total | 162,990 |
2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Total | 325,980 |
SHAREHOLDERS_ DEFICIT (Details
SHAREHOLDERS’ DEFICIT (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Nov. 12, 2021 | Nov. 08, 2021 | May 31, 2022 | Sep. 21, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Mar. 31, 2022 | Feb. 28, 2022 | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||||||
Common Stock, Shares Authorized | 95,000,000 | 95,000,000 | 95,000,000 | ||||||||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 | 5,000,000 | ||||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||
Common Stock, Shares, Issued | 24,544,443 | 24,544,443 | 19,732,406 | ||||||||
Common Stock, Shares, Outstanding | 24,544,443 | 24,544,443 | 19,732,406 | ||||||||
Stockholders' Equity, Reverse Stock Split | 1 for 2.5 | ||||||||||
Common Stock Dividends, Shares | 2,888,889 | ||||||||||
Public offering price per shares | $ 9 | ||||||||||
Option Indexed to Issuer's Equity, Shares | 236,111 | ||||||||||
Firm Shares | $ 26,000,001 | ||||||||||
OptionShares | $ 2,124,999 | ||||||||||
IPO closings description | the IPO Closings, all outstanding shares of preferred stock series A, B, B-1, C and C-1 were automatically converted into 888,889 shares, 764,400 shares, 48,000 shares, 465,600 shares and 4,195,200 shares of the Company’s common stock for the value of $8,000,000, $3,412,503, $466,720, $8,353,373 and $5,536,832, respectively. | ||||||||||
Warrant Description | During the three months ended June 30, 2022, a total of 91 warrants were exercised in exchange to 27,300 shares of its common stock for the value of $55,890. During the three months ended June 30, 2021, no warrants were exercised to common stock. | During the six months ended June 30, 2022, a total of 70,791 warrants were exercised in exchange to 187,300 shares of its common stock for the value of $412,890. During the six months ended June 30, 2021, no warrants were exercised to common stock. | |||||||||
Consulting services share | 486,000 | 486,000 | 370,000 | ||||||||
Consulting services share, Value | $ 1,060,500 | $ 1,524,059 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 661,215 | ||||||||||
Accrued consideration liability | $ 255,000 | $ 255,000 | |||||||||
Class of Warrant or Right, Expense or Revenue Recognized | Company issued 21,000 shares of warrants to one employee for compensation of his service to purchase 21,000 shares of its common stock for the fair value of $17,500. Each share of warrant is converted to one share of common stock at an exercise price of $0.0001. The warrants will expire on the second (2nd) anniversary of the initial date of issuance. As at December 31, 2019, none of the warrants have been exercised. 21,000 shares fully exercised during the year ended December 31, 2020. | ||||||||||
Redeemable warrant per share | $ 420 | $ 420 | |||||||||
Debt Conversion, Converted Instrument, Warrants or Options Issued | 1,880 | ||||||||||
Adjustments to Additional Paid in Capital, Warrant Issued | $ 58,363 | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested in Period, Fair Value | $ 0 | $ 12,159,652 | |||||||||
Amortization of stock compensation expense | $ 634,240 | $ 0 | $ 1,802,584 | $ 0 | |||||||
Subsidiary [Member] | |||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||||||
Shares, Issued | 2,497 | 0 | 2,497 | 0 | 226,629 | ||||||
Six Employees [Member] | |||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||||||
Shares, Issued | 54,797 | 54,797 | |||||||||
Workers' Compensation Liability, Current | $ 148,219 | $ 148,219 | |||||||||
Six Employees One [Member] | |||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||||||
Shares, Issued | 29,353 | 29,353 | |||||||||
Workers' Compensation Liability, Current | $ 61,750 | $ 61,750 | |||||||||
Brugau Pte Ltd [Member] | |||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||||||
Common Unit, Issued | 13,273 | 13,273 | |||||||||
Cory Bentley [Member] | |||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||||||
Agreement value | $ 119,457 | $ 119,457 | |||||||||
First Tranche [Member] | |||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||||||
Stock Issued During Period, Shares, New Issues | 40,604 | ||||||||||
Controlling interest | $ 2.05 | ||||||||||
Stock Issued During Period, Value, New Issues | $ 1,000,000 |
PREFERRED STOCKS AND WARRANTS_2
PREFERRED STOCKS AND WARRANTS (Details) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Series A Preferred Stock [Member] | ||
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, shares Stated Value | $ 1,000 | |
Series B Preferred Stock [Member] | ||
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, shares Stated Value | $ 1,336 | |
Series B1 Preferred Stock [Member] | ||
Preferred stock, shares authorized | 15,000 | 15,000 |
Preferred stock, shares Stated Value | $ 2,917 | |
Series C Preferred Stock [Member] | ||
Preferred stock, shares authorized | 15,000 | 15,000 |
Preferred stock, shares Stated Value | $ 5,763 | |
Series C 1 Preferred Stock [Member] | ||
Preferred stock, shares authorized | 30,000 | 30,000 |
Preferred stock, shares Stated Value | $ 420 | |
Series X Super Voting Preferred Stock [Member] | ||
Preferred stock, shares authorized | 3,500 | |
Preferred stock, shares Stated Value | $ 0.0001 |
PREFERRED STOCKS AND WARRANTS_3
PREFERRED STOCKS AND WARRANTS (Details Narrative) - USD ($) | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Preferred Stock, Shares issued | 4,916,500 | 4,916,500 | |
Preferred Stock, Shares Outstanding | 4,916,500 | 4,916,500 | |
Series A Preferred Stock [Member] | |||
Stock Issued During Period, Shares, Other | 0 | 0 | |
Stock Issued During Period, Shares, Purchase of Assets | 888,889 | ||
Stock Issued During Period, Value, Purchase of Assets | $ 8,000,000 | ||
Share Price | $ 9 | ||
Preferred Stock, Shares issued | 0 | 0 | |
Preferred Stock, Shares Outstanding | 0 | 0 | |
Series B Preferred Stock [Member] | |||
Stock Issued During Period, Shares, Other | 0 | 0 | |
Stock Issued During Period, Shares, Purchase of Assets | 764,400 | ||
Stock Issued During Period, Value, Purchase of Assets | $ 3,412,503 | ||
Share Price | $ 4.46 | ||
Preferred Stock, Shares issued | 0 | 0 | |
Preferred Stock, Shares Outstanding | 0 | 0 | |
Series B1 Preferred Stock [Member] | |||
Stock Issued During Period, Shares, Other | 0 | ||
Stock Issued During Period, Shares, Purchase of Assets | 48,000 | ||
Stock Issued During Period, Value, Purchase of Assets | $ 466,720 | ||
Share Price | $ 9.72 | ||
Preferred Stock, Shares issued | 0 | 0 | |
Preferred Stock, Shares Outstanding | 0 | 0 | |
Series C Preferred Stock [Member] | |||
Stock Issued During Period, Shares, Other | 0 | 0 | |
Stock Issued During Period, Shares, Purchase of Assets | 465,600 | ||
Stock Issued During Period, Value, Purchase of Assets | $ 8,353,373 | ||
Share Price | $ 17.9 | ||
Preferred Stock, Shares issued | 0 | 0 | |
Preferred Stock, Shares Outstanding | 0 | 0 | |
Series C 1 Preferred Stock [Member] | |||
Stock Issued During Period, Shares, Purchase of Assets | 4,195,200 | ||
Stock Issued During Period, Value, Purchase of Assets | $ 5,536,832 | ||
Share Price | $ 1.21 | ||
Preferred Stock, Shares issued | 0 | 0 | |
Preferred Stock, Shares Outstanding | 0 | 0 | |
Series X Super Voting Preferred Stock [Member] | |||
Preferred Stock, Shares Outstanding | 3,500 | 3,500 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||
- Local | $ 11,263,271 | $ 6,423,481 |
- Foreign | 2,912,629 | (667,610) |
Loss before income taxes | $ 14,175,900 | $ (7,091,091) |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income tax expense | $ 797 | $ 6,903 | $ 2,099 | $ 8,640 |
UNITED STATES | ||||
Income tax expense Current | ||||
Income tax expense Deferred | ||||
SINGAPORE | ||||
Income tax expense Current | ||||
Income tax expense Deferred | ||||
Income tax expense | ||||
VIET NAM | ||||
Income tax expense Current | ||||
Income tax expense Deferred | ||||
Income tax expense | ||||
PHILIPPINES | ||||
Income tax expense Current | ||||
Income tax expense Deferred | ||||
Income tax expense | ||||
INDIA | ||||
Income tax expense Current | 2,099 | 8,640 | ||
Income tax expense Deferred | ||||
Income tax expense |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||
Loss before income taxes | $ (11,263,271) | $ (6,423,481) |
Statutory income tax rate | 21% | 21% |
Income tax expense at statutory rate | $ (2,365,287) | $ (1,348,931) |
Tax effect of allowance | 2,365,287 | 1,348,931 |
Income tax expense |
INCOME TAXES (Details 3)
INCOME TAXES (Details 3) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Loss before income taxes | $ (11,263,271) | $ (6,423,481) | ||
Statutory income tax rate | 21% | 21% | ||
Income tax expense at statutory rate | $ (2,365,287) | $ (1,348,931) | ||
Tax effect of allowance | 2,365,287 | 1,348,931 | ||
Income tax expense | $ 797 | $ 6,903 | 2,099 | 8,640 |
SINGAPORE | ||||
Loss before income taxes | $ (1,787,435) | $ (419,416) | ||
Statutory income tax rate | 17% | 16% | ||
Income tax expense at statutory rate | $ (303,864) | $ (67,107) | ||
Tax effect of allowance | 303,864 | 67,107 | ||
Income tax expense |
INCOME TAXES (Details 4)
INCOME TAXES (Details 4) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Income (Loss) before income taxes | $ (11,263,271) | $ (6,423,481) | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | 21% | |||
Income tax expense at statutory rate | $ (2,365,287) | $ (1,348,931) | |||
Tax effect of allowance | 2,365,287 | 1,348,931 | |||
Income tax expense | $ 797 | $ 6,903 | 2,099 | 8,640 | |
Deferred tax assets Net operating loss carryforwards | 10,371,334 | 10,371,334 | $ 8,423,632 | ||
Less: valuation allowance | (10,371,334) | (10,371,334) | (8,423,632) | ||
Deferred tax assets, net | |||||
VIET NAM | |||||
Income (Loss) before income taxes | $ (966,387) | $ (260,623) | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 20% | 20% | |||
Income tax expense at statutory rate | $ (193,277) | $ (52,125) | |||
Tax effect of allowance | 193,277 | 52,125 | |||
Income tax expense | |||||
Deferred tax assets Net operating loss carryforwards | 453,695 | 453,695 | 260,418 | ||
UNITED STATES | |||||
Deferred tax assets Software intangibles | 150,465 | 150,465 | 150,465 | ||
Deferred Stock Compensation | 5,864,670 | 5,864,670 | 5,864,670 | ||
Deferred tax assets Net operating loss carryforwards | 3,356,630 | 3,356,630 | 1,875,143 | ||
SINGAPORE | |||||
Income (Loss) before income taxes | $ (1,787,435) | $ (419,416) | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 17% | 16% | |||
Income tax expense at statutory rate | $ (303,864) | $ (67,107) | |||
Tax effect of allowance | 303,864 | 67,107 | |||
Income tax expense | |||||
Deferred tax assets Net operating loss carryforwards | 504,040 | 504,040 | 272,937 | ||
INDIA | |||||
Income (Loss) before income taxes | $ 8,530 | $ 12,429 | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25% | 25% | |||
Income tax expense at statutory rate | $ 2,133 | $ 3,107 | |||
Tax effect of allowance | (2,133) | (3,107) | |||
Income tax expense | |||||
Deferred tax assets Net operating loss carryforwards | |||||
PHILIPPINES | |||||
Income (Loss) before income taxes | $ (167,337) | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25% | 25% | |||
Income tax expense at statutory rate | $ 41,834 | ||||
Tax effect of allowance | (41,834) | ||||
Income tax expense | |||||
Deferred tax assets Net operating loss carryforwards | $ 41,834 | $ 41,834 |
INCOME TAXES (Details 5)
INCOME TAXES (Details 5) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income (Loss) before income taxes | $ (11,263,271) | $ (6,423,481) | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | 21% | ||
Income tax expense at statutory rate | $ (2,365,287) | $ (1,348,931) | ||
Tax effect of allowance | 2,365,287 | 1,348,931 | ||
Income tax expense | $ 797 | $ 6,903 | 2,099 | 8,640 |
INDIA | ||||
Income (Loss) before income taxes | $ 8,530 | $ 12,429 | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25% | 25% | ||
Income tax expense at statutory rate | $ 2,133 | $ 3,107 | ||
Tax effect of allowance | (2,133) | (3,107) | ||
Income tax expense |
NCOME TAXES (Details 6)
NCOME TAXES (Details 6) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Loss before income taxes | $ (11,263,271) | $ (6,423,481) | ||
Statutory income tax rate | 21% | 21% | ||
Income tax expense at statutory rate | $ (2,365,287) | $ (1,348,931) | ||
Tax effect of allowance | 2,365,287 | 1,348,931 | ||
Income tax expense | $ 797 | $ 6,903 | 2,099 | 8,640 |
PHILIPPINES | ||||
Loss before income taxes | $ (167,337) | |||
Statutory income tax rate | 25% | 25% | ||
Income tax expense at statutory rate | $ 41,834 | |||
Tax effect of allowance | (41,834) | |||
Income tax expense |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Effective Income Tax Rate Reconciliation, Percent | 10.50% | |
Unrecognized Tax Benefits | $ 0 | |
Income Tax Examination, Penalties Expense | $ 0 | |
UNITED STATES | ||
Operating Loss Carryforwards | $ 15,983,953 | |
Deferred Tax Assets, Net of Valuation Allowance | 3,356,630 | |
SINGAPORE | ||
Operating Loss Carryforwards | 2,964,941 | |
Deferred Tax Assets, Net of Valuation Allowance | 504,040 | |
VIET NAM | ||
Operating Loss Carryforwards | 2,268,477 | |
Deferred Tax Assets, Net of Valuation Allowance | $ 453,695 | |
Effective Income Tax Rate Reconciliation, Percent | 20% | |
INDIA | ||
Operating Loss Carryforwards | $ 8,530 | |
Deferred Tax Assets, Net of Valuation Allowance | $ 2,133 | |
Effective Income Tax Rate Reconciliation, Percent | 25% | |
PHILIPPINES | ||
Operating Loss Carryforwards | $ 167,337 | |
Deferred Tax Assets, Net of Valuation Allowance | $ 41,834 |
PENSION COSTS (Details Narrativ
PENSION COSTS (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Retirement Benefits [Abstract] | ||||
Pension Cost (Reversal of Cost) | $ 37,672 | $ 1,925 | $ 45,762 | $ 3,986 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Shareholder Service [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||
Professional Fees | $ 8,316 | |||
Accrued professional fee | $ 150,000 | $ 230,785 | $ 150,000 | 230,785 |
Director [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||
Repayments of Related Party Debt | 378,060 | 0 | 596,119 | 0 |
Increase (Decrease) in Accrued Salaries | 26,001 | 251,804 | 163,280 | 251,804 |
Officer [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||
Professional Fees | 1,151 | 4,752 | 5,599 | |
Accrued professional fee | 1,151,592 | 77,080 | 1,328,010 | 70,000 |
Related parties professional fee | 1,060,500 | 0 | 1,060,500 | 0 |
Related parties salaries | $ 899,996 | $ 0 | $ 899,996 | $ 0 |
CONCENTRATIONS OF RISK (Details
CONCENTRATIONS OF RISK (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Revenues | $ 499,062 | $ 7,783 | $ 944,152 | $ 17,289 | |
Cost of sales | 456,968 | 0 | 852,858 | 0 | |
Accounts payable | 903,715 | 903,715 | $ 261,907 | ||
Customer A [Member] | |||||
Revenues | $ 392,739 | $ 7,009 | $ 783,141 | $ 14,797 | |
Concentration Risk, Percentage | 88.24% | 88.11% | 82.94% | 85.59% | |
Accounts receivable | $ 34,062 | $ 34,062 | |||
Customer B [Member] | |||||
Revenues | $ 73,876 | $ 109,567 | |||
Concentration Risk, Percentage | 14.80% | 11.60% | |||
Accounts receivable | $ 11,818 | $ 11,818 | |||
Vendor A [Member] | |||||
Concentration Risk, Percentage | 14.37% | 11.86% | |||
Cost of sales | $ 12,436 | $ 12,436 | |||
Accounts payable |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||
Sep. 02, 2021 | Sep. 02, 2021 | Apr. 01, 2017 | Nov. 16, 2021 | May 28, 2021 | May 25, 2021 | May 21, 2021 | Jul. 31, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Feb. 25, 2022 | Feb. 14, 2022 | Feb. 02, 2021 | Jan. 31, 2019 | |
Common shares at a price | $ 250 | ||||||||||||||
Banking Regulation, Total Capital, Actual | $ 168,000 | ||||||||||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | 100% | 100% | |||||||||||||
Assets, Average Outstanding | $ 75,000 | $ 75,000 | |||||||||||||
Salary and Wage, NonOfficer, Excluding Cost of Good and Service Sold | $ 40,000 | ||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Description | former employee claims entitlement to compensation and a bonus totaling $566,000 and 39,000-58,500 shares of Company common stock, together with costs. The Company responded to the complaint and also asserted counterclaims in the proceeding for $1,500,000 to $4,000,000 plus punitive damages, together with interest and costs, arising from, inter alia, the former employee’s breach of contract, unfair competition, misappropriation of trade secrets and breach of fiduciary duty. The former employee has responded to the Company’s counterclaims and this action is in the discovery phase of the litigation. | ||||||||||||||
Salary payments and expense description | former employee claims entitlement to salary payments and expense reimbursement in the amount of $122,042.60, plus liquidated damages, together with costs. This former employee also claims entitlement to 516,300 to 760,800 shares of the Company’s common stock. In addition, this action also includes claims by a plaintiff-entity alleging entitlement to $8 million in shares of the Company’s Series A Preferred stock. The Company responded to the complaint and also asserted counterclaims against the former employee in the proceeding for $1,500,000 to $2,000,000 plus punitive damages, together with costs, arising from, inter alia, the former employee’s breach of contract, breach of fiduciary duty, tortious interference and fraud. The former employee has responded to the Company’s counterclaims and this action is still in the discovery phase of litigation. | ||||||||||||||
Petitioner description | The amount alleged to be due to the Petitioner as of July 31, 2020 was said to be $590,461.94 and growing daily while the number of additional common stock shares alleged to be due to Petitioner as of July 31, 2020 was said to be 283,417,033 and growing, daily. | ||||||||||||||
Other Expenses | $ 550,000 | $ 550,000 | |||||||||||||
Proceeds from (Repayments of) Debt | $ 250,000 | $ 250,000 | $ 300,000 | ||||||||||||
Payments for (Proceeds from) Investments | $ 336,000 | ||||||||||||||
Legal Fees | 75,000 | ||||||||||||||
Total outstanding | 240,981 | ||||||||||||||
Mr Dennis [Member] | |||||||||||||||
Stock Issued During Period, Shares, New Issues | 1,945,270 | ||||||||||||||
Exercise price per share | $ 6.49 | ||||||||||||||
Hottab [Member] | |||||||||||||||
Investments | 168,000 | ||||||||||||||
S O S V [Member] | |||||||||||||||
Loss Contingency, Damages Awarded, Value | $ 336,000 | ||||||||||||||
Mr Nguyen [Member] | |||||||||||||||
Annual cash bonus | $ 250,000 | ||||||||||||||
Mr Liang [Member] | |||||||||||||||
Annual base salary | $ 240,000 | ||||||||||||||
Employment agreement description | (ii) an annual discretionary incentive cash bonus with a minimum target of 25% of base salary; (iii) 814,950 shares of the Company’s common stock (taking into account the Company’s stock split 1:750 and reverse stock split 1:2.5), of which 651,960 shares are subject to vesting over a two-year period; and (iv) all other executive benefits sponsored by the Company. If a change of control of the Company occurs and if at the time of such change of control the Company’s common stock is trading at a price that is double the initial public offering price, then Mr. Liang will be entitled to a cash bonus equal to three (3) times his base salary. If Mr. Liang is terminated other than for cause or resigns for good reason, he will be entitled to receive continued base salary until the earlier of (x) the anniversary date of such termination and (y) the end of the 5-year term of the employment agreement; provided, however, if the termination is after September 1, 2022, then the period set forth in clause (x) shall be 18 months from the date of the employment agreement. | ||||||||||||||
Share-Based Payment Arrangement, Tranche One [Member] | |||||||||||||||
Capital Leases, Future Minimum Payments Receivable | 75,000 | ||||||||||||||
H P L [Member] | |||||||||||||||
Banking Regulation, Total Capital, Actual | 75,000 | ||||||||||||||
H P L 1 [Member] | |||||||||||||||
Banking Regulation, Total Capital, Actual | 48,000 | ||||||||||||||
H P L 2 [Member] | |||||||||||||||
Banking Regulation, Total Capital, Actual | $ 45,000 | ||||||||||||||
Series C 1 Preferred Stock [Member] | |||||||||||||||
Common shares at a price | $ 168 | ||||||||||||||
Series C Preferred Stock [Member] | H P L [Member] | |||||||||||||||
Acquired shares | 117,000 | ||||||||||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | 100% |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] - USD ($) | Jul. 20, 2022 | Jul. 19, 2022 | Jul. 07, 2022 | Jul. 02, 2022 |
Subsequent Event [Line Items] | ||||
Debt Instrument, Face Amount | $ 300,000 | |||
Loans Assumed | $ 700,000 | |||
Warrant to purchase | 400,000 | 69,072 | 5,900,000 | |
Purchase price | $ 1.94 | $ 0.60 | ||
Consideration Cash | $ 132,000 | |||
Issued price | $ 268,000 | |||
First Tranche [Member] | ||||
Subsequent Event [Line Items] | ||||
Warrant to purchase | 134,000 | |||
Warrant [Member] | ||||
Subsequent Event [Line Items] | ||||
Warrants and Rights Outstanding, Maturity Date | Jul. 07, 2023 | |||
Warrant issued | 203,109 | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 2.1335 | |||
Stock Purchase Agreement [Member] | ||||
Subsequent Event [Line Items] | ||||
Noncash or Part Noncash Acquisition, Noncash Financial or Equity Instrument Consideration, Shares Issued | 609,327 |