| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE
2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis
of presentation and principles of consolidation The
accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the
United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission
(the “SEC”). The accompanying consolidated financial statements include the financial statements of the Company and its wholly
owned subsidiaries. All inter-company balances and transactions are eliminated upon consolidation. Uses
of estimates In
preparing the consolidated financial statements in conformity with U.S. GAAP, management makes estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenue and expenses during the reporting period. These estimates are based on information as of the date
of the consolidated financial statements. Significant estimates required to be made by management include the valuation of accounts receivable,
useful lives of property and equipment and intangible assets, the recoverability of long-lived assets, realization of deferred tax assets,
provision necessary for contingent liabilities, and revenue recognition. Actual results could differ from those estimates. Risks
and uncertainties The
main operations of the Company are located in Malaysia. Accordingly, the Company’s business, financial condition, and results of
operations may be influenced by changes in political, economic, social, regulatory, and legal environments in Malaysia, as well as by
the general state of the economy in Malaysia. Although the Company has not experienced losses from these situations and believes that
it complies with existing laws and regulations, including its organization and structure disclosed in Note 1, this may not be indicative
of future results. The
Company’s business, financial condition, and results of operations may also be negatively impacted by risks related to natural
disasters, extreme weather conditions, health epidemics, and other catastrophic incidents, which could significantly disrupt the Company’s
operations. The
COVID-19 pandemic has adversely affected the Company’s business operations. Specifically, prior to April 1, 2022, significant governmental
measures implemented by the Malaysian government, including various stages of lockdowns, closures, quarantines, and travel bans, led
to the store closure of some of the Company’s offline merchants. As a result, although business in Malaysia had gradually
resumed since April 1, 2022, the Company’s cash rebate service business was negatively affected to a certain extent, because the
number of offline sales transactions between retail shoppers and retail merchants facilitated by the Company did not grow as much as
the Company expected, leading to a lower amount of cash rebate service revenue than the Company expected during the fiscal years ended
September 30, 2022, 2021, and 2020. However, the Company’s digital advertising service revenue was not significantly affected by
the COVID-19 pandemic, because more people have opted to use various online services since the beginning of the COVID-19 pandemic. As
more advertisers used the Company’s digital advertising services through its websites and mobile apps and third-party social media
channels to target their audiences, the Company’s revenue from digital advertising services increased significantly from fiscal
year 2021 to fiscal year 2022. However, any resurgence of the COVID-19 pandemic could negatively affect the execution of customer contracts
and the collection of customer payments. The extent of any future impact of the COVID-19 pandemic on the Company’s business is
still highly uncertain and cannot be predicted as of the financial statement reporting date. Any potential impact to the Company’s
operating results will depend, to a large extent, on future developments and new information that may emerge regarding the duration and
severity of the COVID-19 pandemic and the actions taken by government authorities to contain the spread of the COVID-19 pandemic, almost
all of which are beyond the Company’s control. Cash Cash
includes currency on hand and deposits held by banks that can be added or withdrawn without limitation. The Company maintains all of
its bank accounts in Malaysia. Cash deposit with financial institutions in Malaysia is subject to certain protection under the requirement
of the deposit insurance system. The maximum insurance coverage limit is MYR 250,000
($ 60,000 )
per bank account. As of September 30, 2022 and 2021, the Company had a cash balance of $ 17,778,895
and $ 2,295,277 ,
respectively, of which, $ 17,428,788 and
$ 1,856,418 was
not covered by such insurance, respectively. Accounts
receivable, net Accounts
receivable primarily include service fees generated from providing digital advertising services and payment solution services to retail
merchant customers (see Note 3). Accounts
receivable are presented net of allowance for doubtful accounts. The Company determines the adequacy of allowance for doubtful accounts
based on individual account analysis, historical collection trend, and the best estimate of specific losses on individual exposures.
The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect
amounts due. Actual amounts received may differ from management’s estimate of credit worthiness and the economic environment. Delinquent
account balances are written off against the allowance for doubtful accounts after management has determined that the likelihood of collection
is not probable. As of September 30, 2022 and 2021, there was no allowance for doubtful accounts recorded as the Company considers all
of the outstanding accounts receivable fully collectible. Deferred
initial public offering (“IPO”) costs The
Company complies with the requirement of the Accounting Standards Codification (“ASC”) 340-10-S99-1 and SEC Staff Accounting
Bulletin (“SAB”) Topic 5A—”Expenses of Offering.” Deferred offering costs consist of underwriting, legal,
consulting, and other expenses incurred through the balance sheet date that are directly related to the intended IPO. Deferred offering
costs will be charged to shareholders’ equity upon the completion of the IPO. Should the IPO prove to be unsuccessful, these deferred
costs, as well as additional expenses to be incurred, will be charged to operations. Payment for deferred IPO costs amounted to $ 736,010 ,
nil ,
and nil for
the fiscal years ended September 30, 2022, 2021, and 2020, respectively. Property
and equipment Property
and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization of property and equipment
are provided using the straight-line method over their expected useful lives, as follows: SCHEDULE
OF PROPERTY AND EQUIPMENT USEFUL LIVES
Useful life
Office equipment and furniture 3 5 Expenditures
for maintenance and repair, which do not materially extend the useful lives of the assets, are charged to expenses as incurred. Expenditures
for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated
depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated
statements of operations and comprehensive income (loss) in other income (expenses). Intangible
assets The
Company’s intangible assets primarily consist of purchased computer software and applications used in conducting the Company’s
cash rebate and digital advertising business. Intangible assets also include content assets, which are licensed movies and television
series acquired from third-party content providers in order to offer members unlimited viewing of such content to drive traffic on the
Company’s SEEBATS website and mobile app. Intangible assets are carried at cost less accumulated amortization and any recorded
impairment (see Note 5). Intangible
assets are amortized using the straight-line method with the following estimated useful lives: SCHEDULE
OF INTANGIBLE ASSETS
Useful
life
Computer
software and applications 5 10
Content
assets-licensed movies and television series Over
the license period or estimated period of use Impairment
of long-lived assets Long-lived
assets with finite lives, primarily property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount of an asset may not be recoverable. If the estimated future undiscounted cash flows from the use of the asset
and its eventual disposition are below the asset’s carrying value, the asset is deemed to be impaired and written down to its fair
value. There were no Fair
value of financial instruments Fair
value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The
hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of
inputs used to measure fair value are as follows:
● Level
1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
● Level
2 — inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted
market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable
and inputs derived from or corroborated by observable market data.
● Level
3 — inputs to the valuation methodology are unobservable. Unless
otherwise disclosed, the fair value of the Company’s financial instruments, including cash, accounts receivable, prepaid expenses
and other current assets, deferred revenue, taxes payable, due to a related party, and accrued expenses and other current liabilities
approximate the fair value of the respective assets and liabilities as of September 30, 2022 and 2021 based upon the short-term nature
of the assets and liabilities. Foreign
currency translation The
functional currency for Starbox Group is the U.S Dollar (“US$”). Starbox Berhad, StarboxGB, StarboxSB, and StarboxPB use
Malaysian Ringgit (“MYR”) as their functional currency. The Company’s consolidated financial statements have been translated
into and reported in US$. Assets and liabilities accounts are translated using the exchange rate at each reporting period end date. Equity
accounts are translated at historical rates. Income and expense accounts are translated at the average rate of exchange during the reporting
period. The resulting translation adjustments are reported under other comprehensive income. Gains and losses resulting from the translations
of foreign currency transactions and balances are reflected in the results of operations. The
following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: SCHEDULE
OF CURRENCY EXCHANGE RATE
September
30, 2022 September
30, 2021 September
30, 2020
Year-end
spot rate US$ 1 4.6359 US$ 1 4.1869 US$ 1 4.1576
Average
rate US$ 1 4.3041 US$ 1 4.1243 US$ 1 4.2163 Comprehensive
income (loss) Comprehensive
income (loss) consists of two components, net income (loss) and other comprehensive income (loss). The foreign currency translation gain
or loss resulting from the translation of the financial statements expressed in MYR to US$ is reported in other comprehensive income
(loss) in the consolidated statements of operations and comprehensive income (loss). Revenue
recognition To
determine revenue recognition for contracts with customers, the Company performs the following five steps: (i) identify the contract(s)
with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable
consideration to the extent that it is probable that a significant future reversal will not The
Company currently generates its revenue from the following main sources: Revenue
from digital advertising services The
Company’s advertising service revenue is derived principally from advertising contracts with retail merchant customers (the “advertisers”),
which allow advertisers to place advertisements on the Company’s websites and mobile apps and third-party social media channels
over a particular period of time. The advertising contracts specify the related fees and payment terms and provide evidence of the arrangements.
The Company’s digital adverting services are to (i) provide advertisement design and consultation services to help advertisers
precisely shape their digital advertising strategies and optimize the design, content, and layout of their advertisements and (ii) the
displaying of advertisers’ advertisements of products and services on the Company’s websites and mobile apps and third-party
social media channels over a particular period of time and in a variety of forms, such as logos, banners, push notification, and posts
by accounts of influencers and bloggers, to help promote advertisers’ products and services and enhance their brand awareness.
Advertisers may elect to engage with the Company for only advertisement display services or both advertisement design and consultation
services and advertisement display services. In
connection with these digital advertising
services, the Company charges retail merchant customers nonrefundable advertising
service fees. 2,400 38,000 5,000 240,000 The
Company identifies advertisement design and consultation services and advertisement display services as two separate performance obligations,
as each are services that are capable of being distinct and distinct in the context of advertising contracts. Each of the service commitments
in advertisement design and consultation services, including advice on advertising strategies, customization and optimization of the
desired content, length, color tone, layout, format, and presentation of the ads, are not distinct in the context of advertising contracts,
because they are inputs to deliver the combined output of advertisements to be displayed as specified by the customer. Therefore, advertisement
design and consultation services are identified as a single performance obligation. The Company allocates revenue to each performance
obligation based on its stand-alone selling price, which is specified in the contracts. The
Company’s advertisement design and consultation services are normally rendered within a short period of time, ranging from a few
days to a month. As all the benefits enjoyed by the customers can be substantially realized at the time when the design and consultation
services are completed, the Company recognizes revenue at the point when designated services are rendered and accepted by the customers.
The Company does not provide rights of return, credits or discounts, price protection, or other similar privileges to customers for such
services and accordingly no variable consideration included in such services. The
majority of the Company’s advertising contracts are for the provision of advertisement display on the Company’s websites
and mobile apps and social media channels for a fixed period of time (ranging from a few weeks to a few months) without a guaranteed
minimum impression level. In instances where certain discounts are provided to customers for advertisement displays, such discounts are
reported as deduction of revenue. Revenue from advertisement services is recognized over the period the advertisement is displayed. Advances
from customers are deferred first and then recognized as revenue until the completion of the contract. There are no future obligations
after the completion of the contract and no rights of refund related to the impression levels. Revenue
from cash rebate services The
Company also utilizes its websites and mobile apps to connect retail merchants and retail shoppers and facilitate retail shoppers to
purchase consumer products or services from retail merchants online or offline under the cash rebate programs offered by retail merchants.
The cash rebate offered by retail merchants range from 0.25 %
to 25 %
based on the sales price of the products or services, among which approximately 66 86 %
are awarded to retail shoppers, and the Company is entitled to receive and retain the remaining approximately 34 14 %
as cash rebate revenue for facilitating online and offline sales transactions. There is a single performance obligation in the contract,
as the performance obligation is to facilitate the sales transactions between the retail shoppers and the retail merchants. The
Company merely acts as an agent in this type of transactions. The Company does not have control of the goods or services under the sales
transactions between the retail merchants and retail shoppers, has no discretion in establishing prices, and does not have the ability
to direct the use of the goods or services to obtain substantially all the benefits. The Company recognizes cash rebate revenue at the
point when retail merchants and retail shoppers are connected and the sales transactions are facilitated and completed. Revenue is reported
net of service taxes. For the fiscal years ended September 30, 2022, 2021, and 2020, the Company only reported cash rebate revenue of
$ 10,562 6,214 718 Revenue
from payment solution services In
May 2021, the Company started to provide payment solution services to retail merchant customers by referring them to VE Services Sdn Bhd , .
1.50 2.50 0.15 0.525 9,575 1,494 Disaggregation
of revenue The
Company disaggregates its revenue from contracts by service types, as the Company believes it best depicts how the nature, amount, timing,
and uncertainty of the revenue and cash flows are affected by economic factors. The summary of the Company’s disaggregation of
revenue by service types for the fiscal years ended September 30, 2022, 2021, and 2020 is as follows: SCHEDULE
OF DISAGGREGATION OF REVENUE
2022 2021 2020
For the fiscal years ended
2022 2021 2020
Revenue from advertising services:
Advertisement design and consultation services $ 1,575,800 $ 384,061 $ -
Advertisement display services 5,845,310 2,921,937 153,145
Gross revenue from advertising services 7,421,110 3,305,998 153,145
Less: discount to customers for advertisement displays (247,060 ) (147,478 ) -
Sub-total of net revenue from advertising services 7,174,050 3,158,520 153,145
Revenue from cash rebate services 10,562 6,214 718
Revenue from payment solution services-related party 9,575 1,494 -
Total operating revenue $ 7,194,187 $ 3,166,228 $ 153,863 Contract
Assets and Liabilities The
Company did no A
contract liability is the Company’s obligation to transfer goods or services to a customer for which it has received consideration
from the customers. Receipts in advance and deferred revenue relate to unsatisfied performance obligations at the end of the period primarily
consist of digital advertising service fees received from customers. Due to the generally short-term duration of the contracts, the majority
of the performance obligations are satisfied in the following reporting period. Contract liabilities presented as deferred revenue in
the consolidated balance sheets as of September 30, 2022 and 2021 amounted to nil 800,492 800,492 122,668 nil The
Company does not disclose information about remaining performance obligations pertaining to service contracts with an original expected
term of one year or less. Operating
leases On
October 1, 2020, the Company adopted Accounting Standards Updates (“ASU”) 2016-02, Leases (Topic 842), as amended
(“ASC 842”), which supersedes the lease accounting guidance under Topic 840, and generally requires lessees to recognize
operating and finance lease liabilities and corresponding right-of-use assets on the balance sheet and to provide enhanced
disclosures surrounding the amount, timing, and uncertainty of cash flows arising from leasing arrangements. The Company elected to
apply practical expedients permitted under the transition method that allow the Company to use the beginning of the period of
adoption as the date of initial application, to not recognize lease assets and lease liabilities for leases with a term of 12 months
or less, to not separate non-lease components from lease components, and to not reassess lease classification, treatment of initial
direct costs, or whether an existing or expired contract contains a lease. The
Company used a modified retrospective method and did not adjust the prior comparative periods. Under the new lease standard, the Company
determines if an arrangement is or contains a lease at inception. Right-of-use assets and liabilities are recognized at the lease commencement
date based on the present value of remaining lease payments over the lease terms. The Company considers only payments that are fixed
and determinable at the time of lease commencement. At
the commencement date, the Company recognizes the lease liability at the present value of the lease payments not yet paid, discounted
using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing
rate for the same term as the underlying lease. The right-of-use asset is recognized initially at cost, which primarily comprises the
initial amount of the lease liability, plus any initial direct costs incurred, consisting mainly of brokerage commissions, less any lease
incentives received. All right-of-use assets are reviewed for impairment annually. There was no impairment for right-of-use lease assets
as of September 30, 2022 and 2021. Operating
costs The
Company’s operating costs primarily consist of (i) marketing and promotional expenses to develop members, merchants, and advertisers,
(ii) website and facility maintenance expenses to upgrade, optimize, and maintain its websites and mobile apps, (iii) employee salary
and benefit expenses, (iv) professional and business consulting expenses, and (v) other general office expenses for administrating the
Company’s business. Operating costs are expensed as incurred. Judgment is required to determine whether to separately present cost
of revenue, selling expenses, and general and administrative expenses. The Company considers materiality, the manner that operating costs
can be separately identified, and what is most useful to financial statement users, and elects to present all costs and operating expenses
as a single line item “cost, selling, general, and administrative expenses” as reflected in the consolidated statements of
operations. Management believes that such presentation is meaningful when considering the nature of the Company’s operations and
the manner in which the Company manages its business. The Company’s operating costs for the fiscal years ended September 30, 2022,
2021, and 2020, consisted of the following: SCHEDULE
OF OPERATING COSTS
2022 2021 2020
For the fiscal years ended September 30,
2022 2021 2020
Salary and employee benefit expenses $ 429,924 $ 191,981 $ 41,988
Professional and consulting service fees 767,229 365,774 5,172
Marketing and promotional expenses 188,338 167,803 159,852
License costs 55,000 50,000 60,000
Website and facility maintenance expenses 292,579 185,757 43,936
Depreciation and amortization 106,267 2,568 1,948
Utility and office expenses 144,735 19,185 3,213
Business travel and entertainment expenses 67,836 6,003 25
Others 191,842 37,268 27,892
Total operating costs $ 2,243,750 $ 1,026,339 $ 344,026 Research
and development The
Company’s research and development activities primarily relate to the optimization and implementation of its websites and mobile
apps (such as leveraging browser caching, improving server response time, removing render-blocking JavaScript, reducing redirects, and
optimizing images), to improve their performance and drive more traffic. Research and development costs are expensed as incurred. Research
and development expenses included in cost, selling, general, and administrative expenses amounted to $ 292,579 147,296 38,925 Income
taxes The
Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized
when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial
statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years
in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a
change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary,
to reduce deferred tax assets to the amount expected to be realized. An
uncertain tax position is recognized only if it is “more likely than not” that the tax position would be sustained in a tax
examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination.
For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred
related to underpayment of income tax are classified as income tax expense in the period incurred. No significant penalties or interest
relating to income taxes were incurred during the fiscal years ended September 30, 2022, 2021, and 2020. The Company does not believe
there was any uncertain tax provision as of September 30, 2022 and 2021. The
Company’s operating subsidiaries in Malaysia are subject to the income tax laws of Malaysia. No significant income was generated
outside Malaysia for the fiscal years ended September 30, 2022, 2021, and 2020. As of September 30, 2022, all of the Company’s
tax returns of its Malaysian subsidiaries remain open for statutory examination by relevant tax authorities. Service
taxes Service
tax is a consumption tax levied by Malaysian tax authorities and is charged on any taxable service income (including digital services)
provided in Malaysia by a registered company in carrying on their business. The rate of service tax is 6% ad valorem for all taxable
services and digital services except for the provision of charge or credit card services. A taxable entity is a company that is registered
or liable to be registered for service taxes. A company is liable to be registered if the total value of its taxable services for a 12-month
period exceeds or is expected to exceed the prescribed registration threshold of MYR 500,000
as an advertising service provider. Service taxes
amounted to $ 262,816 ,
$ 190,972 ,
and $ 2,237 for
the fiscal years ended September 30, 2022, 2021, and 2020, respectively and were recorded as a deduction against the Company’s
gross revenue. Earnings
(loss) per share The
Company computes earnings (loss) per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC
260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net
income (loss) divided by the weighted average common shares outstanding for the period. Diluted EPS presents the dilutive effect on a
per share basis of potential common shares (e.g., convertible securities, options, and warrants) as if they had been converted at the
beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those
that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. As of September 30, 2022
and 2021, and for the fiscal years ended September 30, 2022, 2021, and 2020, there were no dilutive shares. Statement
of cash flows In
accordance with ASC 230, “Statement of Cash Flows,” cash flows from the Company’s operations are formulated based upon
the local currencies using the average exchange rate in the period. As a result, amounts related to assets and liabilities reported on
the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. Related
parties and transactions The
Company identifies related parties, and accounts for, discloses related party transactions in accordance with ASC 850, “Related
Party Disclosures” and other relevant ASC standards. 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 operational decisions. Companies are also
considered to be related if they are subject to common control or common significant influence. Transactions between related parties
commonly occurring in the normal course of business are considered to be related party transactions. Transactions between related parties
are also considered to be related party transactions even though they may not be given accounting recognition. While ASC does not provide
accounting or measurement guidance for such transactions, it nonetheless requires their disclosure. Defined
contribution plan The
full-time employees of the Company’s subsidiaries in Malaysia are entitled to the government mandated defined contribution plan,
such as social security, employee provident fund, employment insurance, and human resource development fund, as required by labor laws
in Malaysia. The Company is required to accrue and pay for these benefits based on certain percentages of the employees’ respective
salaries, subject to certain ceilings, in accordance with the relevant government regulations, and make cash contributions to the government
mandated defined contribution plan. Employee
defined contribution plan expenses amounted to $ 45,121 20,871 4,246 for the years ended September 30, 2022, 2021, and 2020, respectively. Recent
accounting pronouncements The
Company considers the applicability and impact of all ASUs. Management periodically reviews new accounting standards that are issued. Recently
adopted accounting pronouncements In
December 2020, the FASB issued ASU 2020-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2020-12”).
ASU 2020-12 is intended to simplify accounting for income taxes. It removes certain exceptions to the general principles in Topic 740
and amends existing guidance to improve consistent application. ASU 2020-12 is effective for fiscal years beginning after December 15,
2021 and interim periods within those fiscal years, with early adoption permitted. The adoption of the new guidance did not have a significant
impact on its consolidated financial statements. Recent
accounting pronouncements not yet adopted In
June 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-13, Financial Instruments – Credit
Losses (Topic 326) (“ASU 2016-13”), which requires entities to measure all expected credit losses for financial assets held
at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the
existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. ASU
2016-13 was subsequently amended by ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses,
ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging,
and Topic 825, Financial Instruments, and ASU 2019-05, Targeted Transition Relief. In November 2019, the FASB issued ASU 2019-10, which
extends the effective date for adoption of ASU 2016-13. In November 2019, the FASB issued ASU 2019-11 to clarify its new credit impairment
guidance in ASU 326. Accordingly, for public entities that are not smaller reporting entities, ASU 2016-13 and its amendments are effective
for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. For all other entities, this guidance
and its amendments will be effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal
years. As an emerging growth company, the Company plans to adopt this |
