| Summary of Significant Accounting Policies | Note
2 –– Summary of Significant Accounting Policies Basis
of presentation and principles of consolidation The
accompanying unaudited condensed consolidated financial statements as of and for the six months ended June 30, 2022 and 2021 have been
prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) that permit reduced
disclosure for interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance
with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted.
In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation
have been included. Operating results for the period ended June 30, 2022 are not necessarily indicative of the results that may be expected
for the year ending December 31, 2022. The Condensed Consolidated Balance Sheet information as of December 31, 2021 was derived from
the Company’s audited Consolidated Financial Statements as of and for the year ended December 31, 2021. The
accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries
and majority-owned subsidiaries which the Company controls and entities for which the Company is the primary beneficiary. For those consolidated
subsidiaries where the Company’s ownership is less than 100 Use
of estimates The
preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates and judgments that affect the
reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. These
estimates and judgments are based on historical information, information that is currently available to the Company and on various other
assumptions that the Company believes to be reasonable under the circumstances. Actual results could differ from those estimates. Foreign
currency translation and transactions The
Company uses United States dollars (“$”) as reporting currency. The functional currency of company’s subsidiary incorporated
in Labuan is maintained in United States dollars (“$”). In addition, VIE and subsidiaries incorporated in Malaysia are maintained
in their local currencies which are Malaysia Ringgit (“MYR”). Monetary assets and liabilities denominated in currencies other
than their local currencies are translated into local currencies at the rates of exchange in effect at the consolidated balance sheet
dates. Transactions
denominated in currencies other than their local currencies during the year are converted into local currencies at the applicable rates
of exchange prevailing when the transactions occur. Transaction gains and losses are recorded in other income, net in the consolidated
statements of income and comprehensive income. Transactions
denominated in foreign currencies are re-measured into the functional currency at the exchange rates prevailing on the transaction dates.
Financial assets and liabilities denominated in foreign currencies are re-measured into the functional currency at the exchange rates
prevailing at the balance sheet date. The
following table outlines the currency exchange rates that were used for the respective periods: Schedule of Foreign Exchange Rates
As of and for the period ended June 30, 2022 As of and for the period ended June 30, 2021
Year/Period-end MYR:US$1 exchange rate 4.4055 4.1520
Year/Period-average MYR:US$1 exchange rate 4.2704 4.0981
Year/Period-end MYR:HKD$1 exchange rate 0.5614 0.5350
Year/Period-average MYR:HKD$1 exchange rate 0.5458 0.5280
Year/Period-end MYR:SGD$1 exchange rate 3.1656 3.0902
Year/Period-average MYR:SGD$1 exchange rate 3.1295 3.0749
Year/Period-end MYR:CNY$1 exchange rate 0.6581 0.6433
Year/Period-average MYR:CNY$1 exchange rate 0.6594 0.6333 Going
Concern The
accompanying financial statements have been prepared assuming that the Company will continue as a going concern. For the period ended
June 30, 2022 and 2021 the Company incurred a net loss of $ 425,126 148,810 795,802 342,873 970,535 The
Company’s ability to continue as a going concern is dependent upon improving its profitability and the continuing financial support
from its shareholders. Management believes the existing shareholders or external financing will provide the additional cash to meet the
Company’s obligations as they become due. No assurance can be given that any future financing, if needed, will be available or,
if available, that it will be on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing,
if needed, it may contain undue restrictions on its operations, in the case of debt financing, or cause substantial dilution for its
stock holders, in the case of equity financing. Cash
and cash equivalents Cash
and cash equivalents consist of cash on hand, bank balances, deposits with licensed banks, other short-term, highly liquid investments
with original maturities of three months or less that are readily convertible to known amounts of cash and subject to an insignificant
risk of changes in value, net of bank overdrafts and pledged deposits, if any. Accounts
Receivable Accounts
receivable are recorded in accordance with ASC 310, “Receivables.” Accounts receivable are recorded at the invoiced amount
and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses
in its existing accounts receivable. The Company does not currently have any amount recorded as an allowance for doubtful accounts. Based
on management’s estimate and based on all accounts being current, the Company has not deemed it necessary to reserve for doubtful
accounts at this time. Property,
Plant and Equipment (PPE) Property,
plant and equipment, consist of office equipment and computer software, is recorded at cost reduced by accumulated depreciation and impairment,
if any. Depreciation expense is recognized over the assets’ estimated useful lives of five years using the straight-line method Right-of-use
assets (ROU) As
of June 30, 2022, the Company has an operating lease agreement for one land in Malaysia. The Company does not have any other leases.
Operating lease right-of-use (“ROU”) assets and liabilities are recognized at commencement date based on the present value
of lease payments over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities
represent our obligation to make lease payments arising from the lease. Generally, the implicit rate of interest (“discount rate”)
in arrangements is not readily determinable and the Company utilizes its incremental borrowing rate in determining the present value
of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit
rating would be. The operating lease ROU asset includes any lease payments made and excludes lease incentives. The
company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use).
Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement
of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred,
and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on
a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, as follows:
● Land 20 Goodwill Goodwill
is recognized for the excess of the purchase price over the fair value of tangible and identifiable intangible net assets of businesses
acquired. Goodwill is not being amortized but is reviewed at least annually for impairment and whenever events or changes in circumstances
indicate that the value of the asset may be impaired. In the evaluation of goodwill impairment, the Company performs a qualitative assessment
to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative
assessment is not conclusive, we proceed to a two-step process to test goodwill for impairment including comparing the fair value of
the reporting unit to its carrying value (including attributable goodwill). Fair value for the reporting units is determined using an
income or market approach incorporating market participant considerations and management’s assumptions on revenue growth rates,
operating margins, discount rates and expected capital expenditures. Fair value determinations may include both internal and third-party
valuations. Lease Prior
to January 1, 2019, the Company accounted for leases under ASC 840, Accounting for Leases. Effective January 1, 2019, the Company adopted
the guidance of ASC 842, Leases, which requires an entity to recognize a right-of-use asset and a lease liability for virtually all leases.
The implementation of ASC 842 did not have a material impact on the Company’s consolidated financial statements and did not have
a significant impact on our liquidity or on our compliance with our financial covenants associated with our loans. The Company adopted
ASC 842 using a modified retrospective approach. As a result, the comparative financial information has not been updated and the required
disclosures prior to the date of adoption have not been updated and continue to be reported under the accounting standards in effect
for those periods. The adoption of ASC 842 on January 1, 2019 resulted in the initial recognition of right-of-use assets of $ 450,630
lease liabilities for operating leases of $ 450,630
and a zero cumulative-effect adjustment to accumulated
deficit (see Note 12). Fair
Value Measurement The
Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring
basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement.
The hierarchy requires the Company to use observable inputs when available, and to minimize the use of unobservable inputs, when determining
fair value. The three tiers are defined as follows: ●
Level 1—Observable inputs that reflect quoted market prices (unadjusted) for identical assets or liabilities in active markets; ●
Level 2—Observable inputs other than quoted prices in active markets that are observable either directly or indirectly in the marketplace
for identical or similar assets and liabilities; and ●
Level 3—Unobservable inputs that are supported by little or no market data, which require the Company to develop its own assumptions. The
Company’s financial instruments, including cash, accounts receivable, prepaid expense and other current assets, accounts payable
and accrued liabilities, and loans payable, are carried at historical cost. At June 30, 2022 and December 31, 2021, the carrying amounts
of these instruments approximated their fair values because of the short-term nature of these instruments. Non-controlling
interests For
the Company’s subsidiaries majority-owned by the Company, non-controlling interests are recognized to reflect the portion of the
equity which is not attributable, directly or indirectly, to the Company as the controlling shareholder. Non-controlling interests acquired
through a business combination are recognized at fair value at the acquisition date, which is estimated with reference to the purchase
price per share as of the acquisition date. Revenue
Recognition In
accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic
606, Revenue from Contracts Revenue
is measured at the fair value of the consideration received or receivable, net of discounts and returns. The Company derives its revenue
from provision of providing services of information and communication technology. Earnings
per share Basic
earnings per share is computed by dividing net income attributable to common shareholders by the weighted average common shares outstanding
during the periods. Diluted earnings per share is calculated by dividing net income attributable to common shareholders by the weighted
average common shares outstanding during the period adjusted for the effect of dilutive common share equivalent (computed using the treasury
stock or if converted method). Income
taxes Income
taxes are determined in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC Topic 740”). Under
this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the
financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities
are measured using enacted income tax rates expected to apply to taxable income in the periods in which those temporary differences are
expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income
in the period that includes the enactment date. ASC
740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements
uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the
financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax
positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of
being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. Related
Parties The
Company follows ASC 850, “Related Party Disclosures”, Recent
Accounting Pronouncements The
Company has reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption of
any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations. | Note
2 - Summary of Significant Accounting Policies Basis
of presentation and principles of consolidation The
consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States
of America (“U.S. GAAP”) pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”).
The consolidated financial statements of the Company include the financial statements of the Company, its subsidiaries and VIE in which
the Company is the primary beneficiary. The results of the subsidiaries are consolidated from the date on which the Company obtained
control and continues to be consolidated until the date that such control ceases. Subsidiary company is consolidated using the merger
method of accounting as the business combination of this subsidiary company involved an entity under common control. All intercompany
balances and transactions between the Company and its subsidiaries have been eliminated in consolidation. Use
of estimates The
preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates and judgments that affect the
reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. These
estimates and judgments are based on historical information, information that is currently available to the Company and on various other
assumptions that the Company believes to be reasonable under the circumstances. Actual results could differ from those estimates. Foreign
currency translation and transactions The
Company uses United States dollars (“$”) as reporting currency. The functional currency of company’s subsidiary incorporated
in Labuan is maintained in United States dollars (“$”). In addition, VIE and subsidiaries incorporated in Malaysia are maintained
in their local currencies which are Malaysia Ringgit (“MYR”). Monetary assets and liabilities denominated in currencies other
than their local currencies are translated into local currencies at the rates of exchange in effect at the consolidated balance sheet
dates. Transactions
denominated in currencies other than their local currencies during the year are converted into local currencies at the applicable rates
of exchange prevailing when the transactions occur. Transaction gains and losses are recorded in other income, net in the consolidated
statements of income and comprehensive income. Transactions
denominated in foreign currencies are re-measured into the functional currency at the exchange rates prevailing on the transaction dates.
Financial assets and liabilities denominated in foreign currencies are re-measured into the functional currency at the exchange rates
prevailing at the balance sheet date. The
following table outlines the currency exchange rates that were used for the respective periods: Schedule of Foreign Exchange Rates
As
of and for the year ended December 31, 2021 As
of and for the year ended December 31, 2020
Year/Period-end
MYR:US$1 exchange rate 4.1650 4.0170
Year/Period-average
MYR:US$1 exchange rate 4.1456 4.1062
Year/Period-end
MYR:HKD$1 exchange rate 0.5353 0.5182
Year/Period-average
MYR:HKD$1 exchange rate 0.5334 0.5297
Year/Period-end
MYR:SGD$1 exchange rate 3.0869 3.0396
Year/Period-average
MYR:SGD$1 exchange rate 3.0842 3.0502
Year/Period-end
MYR:CNY$1 exchange rate 0.6549 0.6141
Year/Period-average
MYR:CNY$1 exchange rate 0.6427 0.6200 Going
Concern The
accompanying financial statements have been prepared assuming that the Company will continue as a going concern. For the years ended
December 31, 2021 and 2020 the Company incurred a net loss of $ 330,683 9,002 342,873 9,002 16,264 322,974 The
Company’s ability to continue as a going concern is dependent upon improving its profitability and the continuing financial support
from its shareholders. Management believes the existing shareholders or external financing will provide the additional cash to meet the
Company’s obligations as they become due. No assurance can be given that any future financing, if needed, will be available or,
if available, that it will be on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing,
if needed, it may contain undue restrictions on its operations, in the case of debt financing, or cause substantial dilution for its
stock holders, in the case of equity financing. Cash
and cash equivalents
Cash
and cash equivalents consist of cash on hand, bank balances, deposits with licensed banks, other short-term, highly liquid investments
with original maturities of three months or less that are readily convertible to known amounts of cash and subject to an insignificant
risk of changes in value, net of bank overdrafts and pledged deposits, if any. Accounts
Receivable Accounts
receivable are recorded in accordance with ASC 310, “Receivables.” Accounts receivable are recorded at the invoiced amount
and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses
in its existing accounts receivable. The Company does not currently have any amount recorded as an allowance for doubtful accounts. Based
on management’s estimate and based on all accounts being current, the Company has not deemed it necessary to reserve for doubtful
accounts at this time. Property,
Plant and Equipment (PPE) Property,
plant and equipment, consist of office equipment and computer software, is recorded at cost reduced by accumulated depreciation and impairment,
if any. Depreciation expense is recognized over the assets’ estimated useful lives of five years using the straight-line method Goodwill Goodwill
is recognized for the excess of the purchase price over the fair value of tangible and identifiable intangible net assets of businesses
acquired. Goodwill is not being amortized but is reviewed at least annually for impairment and whenever events or changes in circumstances
indicate that the value of the asset may be impaired. In the evaluation of goodwill impairment, the Company performs a qualitative assessment
to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative
assessment is not conclusive, we proceed to a two-step process to test goodwill for impairment including comparing the fair value of
the reporting unit to its carrying value (including attributable goodwill). Fair value for the reporting units is determined using an
income or market approach incorporating market participant considerations and management’s assumptions on revenue growth rates,
operating margins, discount rates and expected capital expenditures. Fair value determinations may include both internal and third-party
valuations. Lease Prior
to January 1, 2019, the Company accounted for leases under ASC 840, Accounting for Leases. Effective January 1, 2019, the Company adopted
the guidance of ASC 842, Leases, which requires an entity to recognize a right-of-use asset and a lease liability for virtually all leases.
The implementation of ASC 842 did not have a material impact on the Company’s consolidated financial statements and did not have
a significant impact on our liquidity or on our compliance with our financial covenants associated with our loans. The Company adopted
ASC 842 using a modified retrospective approach. As a result, the comparative financial information has not been updated and the required
disclosures prior to the date of adoption have not been updated and continue to be reported under the accounting standards in effect
for those periods. The adoption of ASC 842 on January 1, 2019 resulted in the initial recognition of right-of-use assets of $ 450,630, 450,630, Fair
Value Measurement The
Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring
basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement.
The hierarchy requires the Company to use observable inputs when available, and to minimize the use of unobservable inputs, when determining
fair value. The three tiers are defined as follows: ●
Level 1—Observable inputs that reflect quoted market prices (unadjusted) for identical assets or liabilities in active markets; ●
Level 2—Observable inputs other than quoted prices in active markets that are observable either directly or indirectly in the marketplace
for identical or similar assets and liabilities; and ●
Level 3—Unobservable inputs that are supported by little or no market data, which require the Company to develop its own assumptions. The
Company’s financial instruments, including cash, accounts receivable, prepaid expense and other current assets, accounts payable
and accrued liabilities, and loans payable, are carried at historical cost. At December 31, 2021 and December 31, 2020, the carrying
amounts of these instruments approximated their fair values because of the short-term nature of these instruments. Non-controlling
interests For
the Company’s subsidiaries majority-owned by the Company, non-controlling interests are recognized to reflect the portion of the
equity which is not attributable, directly or indirectly, to the Company as the controlling shareholder. Non-controlling interests acquired
through a business combination are recognized at fair value at the acquisition date, which is estimated with reference to the purchase
price per share as of the acquisition date. Revenue
Recognition In
accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic
606, Revenue from Contracts Revenue
is measured at the fair value of the consideration received or receivable, net of discounts and returns. The Company derives its revenue
from provision of providing services of information and communication technology. Earnings
per share Basic
earnings per share is computed by dividing net income attributable to common shareholders by the weighted average common shares outstanding
during the periods. Diluted earnings per share is calculated by dividing net income attributable to common shareholders by the weighted
average common shares outstanding during the period adjusted for the effect of dilutive common share equivalent (computed using the treasury
stock or if converted method). Income
taxes Income
taxes are determined in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC Topic 740”). Under
this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the
financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities
are measured using enacted income tax rates expected to apply to taxable income in the periods in which those temporary differences are
expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income
in the period that includes the enactment date. ASC
740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements
uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the
financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax
positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of
being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. Related
Parties The
Company follows ASC 850, “Related Party Disclosures”, Recent
Accounting Pronouncements The
Company has reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption of
any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations. In
August 2020, the FASB issued “ASU 2020-06, Debt with Conversion and Other Options (Subtopic 47020) and Derivatives and Hedging
– Contracts in Equity’s Own Equity (Subtopic 815-40)” which simplifies the accounting for convertible instruments.
The guidance removes certain accounting models which separate the embedded conversion features from the host contract for convertible
instruments. Either a modified retrospective method of transition or a fully retrospective method of transition is permissible for the
adoption of this standard. Update No. 2020-06 is effective for the fiscal years beginning after December 15, 2021, including interim
periods within those fiscal years. Early adoption is permitted no earlier than the fiscal year beginning after December 15, 2020. The
Company is currently evaluating the potential on its financial statements. ASC
842 originally required all entities to use a “modified retrospective” transition approach that is intended to maximize comparability
and be less complex than a full retrospective approach. On July 30, 2018, the FASB issued ASU 2018-11 to provide entities with relief
from the costs of implementing certain aspects of the new leasing standard, ASU 2016-02 of which permits entities may elect not to recast
the comparative years presented when transitioning to ASC 842. As permitted by ASU 2018-11, the Company elect not to recast comparative
years, thusly. In
June 2016, the FASB issued ASE No. 2016-13, Credit Losses – Measurement of Credit Losses on Financial Instruments (“ASC 326”).
The standard significantly changes how entities will measure credit losses for most financial assets, including accounts and notes receivables.
The standard will replace today’s “incurred loss” approach with an “expected loss” model, under which companies
will recognize allowances based on expected rather than incurred losses. 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 effective. The standard is
effective for interim and annual reporting periods beginning after December 15, 2022. The Company is currently assessing the impact of
adopting this standard on the Company’s financial statements and related disclosures. Other
recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public
Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s
present or future financial statements. |
