| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis
of presentation The
consolidated financial statements for Jocom Holdings Corp. and its subsidiaries (‘the Company’) for the six months ended
June 30, 2024 are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”)
and include the accounts of Jocom Holdings Corp. and its wholly owned subsidiary, Jocom Holdings Corp and JHC Digital Sdn Bhd. The Company
has adopted December 31 as its fiscal year end. Basis
of consolidation The
condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All inter-company accounts and
transactions have been eliminated upon consolidation. Revenue
recognition The
Company follows the guidance of ASC 606, “Revenue from Contracts” The
revenue generated was a service fee paid by a client to carry out data analytic services in the Southeast Asia online grocery market. Use
of estimates Management
uses estimates and assumptions in preparing these financial statements in accordance with US GAAP. Those estimates and assumptions affect
the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities in the balance sheets, and the reported
revenue and expenses during the periods reported. Actual results may differ from these estimates. 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. Intangible
Asset The
Company follows the guidance according ASC Topic 350, “Testing Indefinite-Lived Intangible Assets for Impairment” Credit
losses The
Company estimates and records a provision for its expected credit losses related to its financial instruments, including its trade receivables.
Management considers historical collection rates, the current financial status of the Company’s customers, macroeconomic factors,
and other industry-specific factors when evaluating current expected credit losses. Forward-looking information is also considered in
the evaluation of current expected credit losses. However, because of the short time to the expected receipt of accounts receivable,
management believes that the carrying value, net of expected losses, approximates fair value and therefore, relies more on historical
and current analysis of such financial instruments, including its trade receivables. Credit
loss rate is determined by historical collection based on aging schedule, adjusted for current conditions using reasonable and supportable
forecasts. Based on the aging categorization and the adjusted loss rate per category, an allowance for credit losses is calculated by
multiplying the adjusted loss rate with the amortized cost in the respective age category. JOCOM
HOLDINGS CORP. NOTES
TO CONDENSED FINANCIAL STATEMENTS FOR
THE SIX MONTHS ENDED JUNE 30, 2024 AND 2023 (Currency
expressed in United States Dollars (“US$”), except for number of shares) (UNAUDITED) Income
taxes Income
taxes are determined in accordance with the provisions of ASC Topic 740, “ Income Taxes 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 Going
Concern The
accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the
settlement of liabilities and commitments in the normal course of business. As reflected in the accompanying financial statements,
for the period ended June 30, 2024, the Company suffered an accumulated deficit of $ 687,740 111,844 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
stockholders, in the case of equity financing. JOCOM
HOLDINGS CORP. NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR
THE SIX MONTHS ENDED JUNE 30, 2024 AND 2023 (Currency
expressed in United States Dollars (“US$”), except for number of shares) (UNAUDITED) Net
loss per share The
Company calculates net income/(loss) per share in accordance with ASC Topic 260, “Earnings per Share.” Foreign
currencies translation The
reporting and functional currency of the Company and its subsidiaries in Labuan is United States Dollars (“US$”) which being
the primary currency of the economic environment in which these entities operate. In
addition, the Company’s subsidiary in Kuala Lumpur, Malaysia maintains its books and record in Malaysian Ringgit (“RM”),
which is the respective functional currency as being the primary currency of the economic environment in which the entity operates. Transactions
denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing
at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated
into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded
in the statements of operations. Translation
of amounts from RM into US$1 has been made at the following exchange rates for the respective periods: SCHEDULE
OF EXCHANGE RATES
As of and for the June 30, 2024 As of and for the
Period-end RM : US$1 exchange rate 4.719 4.589
Period-average RM : US$1 exchange rate 4.726 4.561
Exchange rate 4.726 4.561 Related
parties Parties,
which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control
the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also
considered to be related if they are subject to common control or common significant influence. JOCOM
HOLDINGS CORP. NOTES
TO CONDENSED FINANCIAL STATEMENTS FOR
THE SIX MONTHS ENDED JUNE 30, 2024 AND 2023 (Currency
expressed in United States Dollars (“US$”), except for number of shares) (UNAUDITED) Fair
value of financial instruments The
carrying value of the Company’s financial instruments: cash and cash equivalents, prepayment, deposits, accounts payable and accrued
liabilities approximate at their fair values because of the short-term nature of these financial instruments. The
Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”),
with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy
that prioritizes the inputs used in measuring fair value as follows: Level
1 Level
2 Level
3: 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. JOCOM
HOLDINGS CORP. NOTES
TO CONDENSED FINANCIAL STATEMENTS FOR
THE SIX MONTHS ENDED JUNE 30, 2024 AND 2023 (Currency
expressed in United States Dollars (“US$”), except for number of shares) (UNAUDITED) |
