RESULTS OF OPERATIONS FOR THE YEAR ENDED
YEAR ENDEDDECEMBER 31, 2018
Results of Operations
For the years ended
Revenue
Revenue consists primarily of the services rendered on software projects. Some
of the projects require significant software production. The Company had no
revenue during the year ended
Cost of revenue
Cost of revenue consists primarily of salary and outside consulting expenses
incurred directly by the projects. Total cost of revenue for the years ended
General and Administrative
General and administrative expenses consist primarily of salary and benefits,
professional fees, rental expenses and maintenance expenses of existing software
framework. We expect to maintain our general and administrative expenses with
moderate changes in line with business activities. Total general and
administrative expenses for the years ended
Other (Expenses) / Income
For the years ended
Liquidity and Capital Resources
At
We had a total stockholders' deficit of
For the year ended
We had net cash used in operating activities of
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For the year ended
We had net cash used in operating activities of
In the year ended
In the year ended
For the year ended
For the year ended
We will need to raise additional capital through equity or debt financings. However, we cannot be certain that such capital (from SeD or third parties) will be available to us or whether such capital will be available on a term that is acceptable to us. Any such financing likely would be dilutive to existing stockholders and could result in significant financial and operating covenants that would negatively impact our business. If we are unable to raise sufficient additional capital on acceptable terms, we will have insufficient funds to operate our business and pursue our business plan.
Consistent with Section 144 of Delaware General Corporation Law, it is our current policy that all transactions between us and our officers, directors and their affiliates will be entered into only if such transactions are approved by a majority of the disinterested directors, are approved by vote of the stockholders, or are fair to us as corporation as of the time it is authorized, approved or ratified by the board. We will conduct an appropriate review of all related party transactions on an ongoing basis.
Critical Accounting Policies
Our discussion and analysis of the financial condition and results of operations
are based upon the Company's financial statements, which have been prepared in
accordance with generally accepted accounting principles in
Within the context of these critical accounting policies, we are not currently aware of any reasonably likely events or circumstances that would result in materially different amounts being reported.
Revenue recognition
Accounting Standards Codification ("ASC") 606, Revenue from Contracts with
Customers ("ASC 606"), establishes principles for reporting information about
the nature, amount, timing and uncertainty of revenue and cash flows arising
from the entity's contracts to provide goods or services to customers. Under the
new standard, revenue is recognized when a customer obtains control of promised
goods or services in an amount that reflects the consideration the entity
expects to receive in exchange for those goods or services. The Company adopted
this new standard on
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Revenue is recognized when (or as) the Company transfers promised goods or services to its customers in amounts that reflect the consideration to which the Company expects to be entitled to in exchange for those goods or services, which occurs when (or as) the Company satisfies its contractual obligations and transfers over control of the promised goods or services to its customers. Costs to obtain or fulfill a contract are expensed as incurred.
Disaggregation of Revenue
We generate revenue from a project involving provision of services and web/software development for customers. In respect to the provision of services, the agreements are less than one year with cancellable clause and customers are typically billed on a monthly basis. The following table depicts the disaggregation of revenue according to revenue type and is consistent with how we evaluate our financial performance:
For the year ended December 31, 2019 Provision Web / of Software Services Development Total Primary Geographical Markets Continuing operations North America $- $- $- Asia - - - $- $- $- Discontinued operations Asia $- $- $- $- $- $- Timing of Revenue Recognition Goods transferred at a point in time $- $- $- Services transferred over time - - - $- $- $- For the year ended December 31, 2018 Provision Web / of Software Services Development Total
Primary Geographical Markets
Continuing operations North America$115,135 $-$115,135 Asia - 25,517 25,517$115,135 $25,517 $140,652 Discontinued operations Asia $-$7,325 $7,325 $-$7,325 $7,325 Timing of Revenue Recognition Goods transferred at a point in time $-$32,842 $32,842 Services transferred over time 115,135 - 115,135$115,135 $32,842 $147,977 20
Contract assets and contract liabilities
Based on our contracts, we usually invoice our customers once our performance obligations have been satisfied, at which point payment is unconditional. Accordingly, our contracts do not give rise to contract assets or liabilities under ASC 606. Accounts receivable are recorded when the right to consideration becomes unconditional.
Remaining performance obligations
As of
Income taxes
Current income taxes are provided for 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. Net operating loss carry forwards and credits are applied using enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more-likely-than-not that a portion of or all of the deferred tax assets will not be realized. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on their characteristics.
The impact of an uncertain income tax position on the income tax return is
recognized at the largest amount that is more-likely-than-not to be sustained
upon audit by the relevant tax authority. An uncertain income tax position will
not be recognized if it has less than a 50% likelihood of being sustained.
Interest and penalties on income taxes will be classified as a component of the
provisions for income taxes. The Group did not recognize any income tax due to
uncertain tax position or incur any interest and penalties related to potential
underpaid income tax expenses for the years ended
Recent Accounting Pronouncements
Recent accounting pronouncements
On
Topic 842 is effective for annual and interim periods beginning in the first
quarter 2019, with early adoption permitted. A modified retrospective transition
approach is required, applying the new standard to all leases existing at the
date of initial application. An entity may choose to use either (1) its
effective date or (2) the beginning of the earliest comparative period presented
in the financial statements as its date of initial application. If an entity
chooses the second option, the transition requirements for existing leases also
apply to leases entered into between the date of initial application and the
effective date. The entity must also recast its comparative period financial
statements and provide the disclosures required by the new standard for the
comparative periods. We have adopted the new standard on
The new standard provides a number of optional practical expedients in transition. We elected the 'package of practical expedients', which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs, and we do not expect to elect the use-of-hindsight.
The new standard also provides practical expedients for an entity's ongoing accounting. We elected the short-term lease recognition exemption for all leases that qualify. For those leases that qualify, we will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. We also elected the practical expedient to not separate lease and non-lease components for all of our leases.
The adoption of Topic 842 had no material impact on the Company.
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In
In
Off -Balance Sheet Arrangements
As of
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