| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis
of Presentation The
consolidated financial statements for catTHIS Holdings Corp. and its subsidiary for the six months ended June 30, 2023 are prepared
in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and include the
accounts of catTHIS Holdings Corp. and its wholly owned subsidiary. 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 subsidiary. All inter-company accounts and
transactions have been eliminated upon consolidation. 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. Intangible
assets, net The
Company follows ASC 360 in accounting for intangible assets, which requires impairment losses to be recorded when indicators of impairment
are present and the undiscounted cash flows estimated to be generated by the assets are less than the assets’ carrying amounts.
For the period ended June 30, 2023 the Company determined there were no indicators of impairment of intangible assets. The
amortization is provided on straight line method so as to write off the amortization amount of the respective classes of intangible assets
as follows: SCHEDULE
OF AMORTIZATION OF INTANGIBLE ASSETS
Asset
Categories Amortization
Periods
Software
and applications 5 Equipment, net Equipment
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. SCHEDULE OF ESTIMATED
USEFUL LIVES OF PROPERTY, PLANT AND EQUIPMENT
Asset
Categories Depreciation
Periods
Office
equipment 10
Photography
and videography equipment 5 Lease The
Company recognizes lease payments for its short-term lease on a straight-line basis over the lease term in accordance with ASC 842. The
right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments
made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. Costs associated
with operating lease assets are recognized on a straight-line basis within operating expenses over the term of the lease. In
determining the present value of the unpaid lease payments, ASC 842 requires a lessee to discount its unpaid lease payments using the
interest rate implicit in the lease or, if that rate cannot be readily determined, its incremental borrowing rate. As most of the Company
leases do not provide an implicit rate, the Company uses its incremental borrowing rate as the discount rate for the lease. The Company
incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments. 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. Revenue
recognition The
Company follows the guidance of ASC 606, “Revenue from Contracts”. ASC 606 creates a five-step model that requires entities
to exercise judgment when considering the terms of contracts, which includes (1) identifying the contracts or agreements with a customer,
(2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction
price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. The Company only
applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange
for the services it transfers to its clients. Revenue
is measured at the fair value of the consideration received or receivable, net of discounts and taxes applicable to the revenue. The
Company derives its revenue from provision of digital marketing services to customers. Income
tax expense 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 years 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 disclosed 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. 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, 2023, the Company suffered net loss of $ 45,357 657,338 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. Net
loss per share The
Company calculates net loss per share in accordance with ASC Topic 260, “Earnings per Share.” Basic loss
per share is computed by dividing the net loss by the weighted-average number of common shares outstanding during the period.
Diluted income per share is computed similar to basic loss per share except that the denominator is increased to include the
number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if
the additional common shares were dilutive. Foreign
currencies translation 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. The
reporting currency of the Company is United States Dollars (“US$”). The Company’s subsidiary in Labuan maintains its
books and record in United States Dollars (“US$”) respectively, and Ringgits Malaysia (“MYR”) is functional currency
as being the primary currency of the economic environment in which the entity operates. In
general, for consolidation purposes, assets and liabilities of its subsidiary whose functional currency is not the US$ are translated
into US$, in accordance with ASC Topic 830-30, “ Translation of Financial Statement Translation
of amounts from RM into US$1 has been made at the following exchange rates for the respective periods: SCHEDULE OF FOREIGN EXCHANGE RATES
2023 2022
MYR : US$1 exchange rate, as of June 30, 2023 4.6679 4.4055
MYR : US$1 exchange rate, for six months ended June 30, 2023 4.4883 4.3506 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. Fair
value of financial instruments The
carrying value of the Company’s financial instruments: cash and cash equivalents, trade receivable, deposits and other
receivables, amount due to related parties, trade payables, other payables and accrual 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 : Observable inputs such as quoted prices in active markets; Level
2 : Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level
3 : Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. As
of June 30, 2023 and 2022, the Company did not have any nonfinancial assets and liabilities that are recognized or disclosed at fair
value in the financial statements, at least annually, on a recurring basis, nor did the Company have any assets or liabilities measured
at fair value on a non-recurring basis. Recently Adopted Accounting Standards In June 2016, the FASB issued Accounting Standards
Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which
introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost
basis, replacing the previous incurred loss methodology. In November 2019, the FASB issued ASU 2019-10 highlighted the adoption timeline.
For smaller reporting entities, Topic 326 is effective for annual periods beginning after December 15, 2022, including interim periods
within those fiscal years, of which is effective for the Company on January 1, 2023. 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. Recently
Issued Accounting Standards The
Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have
a significant impact on the Company’s unaudited condensed consolidated financial statements. |
