x | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT |
EOS Inc. |
(Exact name of registrant as specified in its charter) |
Nevada | 30-0873246 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
N/A | ||
(Former name or former address, if changed since last report) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
None | None | None |
Large accelerated filer | ¨ | Accelerated filer | ¨ |
Non-accelerated filer | x | Smaller reporting company | x |
Emerging growth company | x |
2 |
F-1 |
September 30, | December 31, | |||||||||||||||
June 30, 2022 | December 31, 2021 | 2022 | 2021 | |||||||||||||
Assets | ||||||||||||||||
Current Assets | ||||||||||||||||
Cash and cash equivalents | 87,328 | 24,141 | 17,575 | 24,141 | ||||||||||||
Accounts receivable | 316,572 | 548,201 | 397,476 | 548,201 | ||||||||||||
Inventory, net | 140,495 | 29,573 | 57,902 | 29,573 | ||||||||||||
Advance to suppliers | 217,173 | 280,224 | 161,092 | 280,224 | ||||||||||||
Security deposits | 1,051,448 | 1,127,989 | 983,035 | 1,127,989 | ||||||||||||
Prepaid expenses and other current assets | 28,623 | 27,773 | 20,686 | 27,773 | ||||||||||||
Total Current Assets | 1,841,639 | 2,037,901 | 1,637,766 | 2,037,901 | ||||||||||||
Non-Current Assets | ||||||||||||||||
Property and equipment, net | 24,887 | 6,739 | 23,023 | 6,739 | ||||||||||||
Operating lease right of use asset, net | 62,123 | 85,419 | 49,841 | 85,419 | ||||||||||||
Total Non-Current Assets | 87,010 | 92,158 | 72,864 | 92,158 | ||||||||||||
Total Assets | $ | 1,928,649 | $ | 2,130,059 | $ | 1,710,630 | $ | 2,130,059 | ||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||
Current Liabilities | ||||||||||||||||
Accounts payable | 50,853 | - | 1,636 | - | ||||||||||||
Other payable and accrued expenses | 48,553 | 88,040 | 51,580 | 88,040 | ||||||||||||
Due to shareholders | 212,979 | 30,858 | 198,745 | 30,858 | ||||||||||||
Income tax payable | 44,780 | 55,394 | 46,046 | 55,394 | ||||||||||||
Other current liabilities | 625,000 | 500,000 | 699,918 | 500,000 | ||||||||||||
Operating lease liabilities - current | 35,440 | 37,779 | 33,154 | 37,779 | ||||||||||||
Short-term loan | 75,456 | 80,047 | 70,983 | 80,047 | ||||||||||||
Total Current Liabilities | 1,093,061 | 792,118 | 1,102,062 | 792,118 | ||||||||||||
Non-Current Liabilities | ||||||||||||||||
Long-term loan | 151,820 | 204,133 | 124,225 | 204,133 | ||||||||||||
Operating lease liabilities - non-current | 26,683 | 47,640 | 16,687 | 47,640 | ||||||||||||
Total Non-Current Liabilities | 178,503 | 251,773 | 140,912 | 251,773 | ||||||||||||
Total liabilities | 1,271,564 | 1,043,891 | 1,242,974 | 1,043,891 | ||||||||||||
Commitments and Contingencies | - | - | - | - | ||||||||||||
Stockholders’ Equity | ||||||||||||||||
Preferred stock ($0.001 par value, 5,000,000 shares authorized, 1,500,000 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively) | 1,500 | 1,500 | ||||||||||||||
Common stock ($0.001 par value; 575,000,000 shares authorized, 183,781,560 and 180,065,254 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively) | 183,781 | 180,065 | ||||||||||||||
Preferred stock ($0.001 par value, 5,000,000 shares authorized, 1,500,000 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively) | 1,500 | 1,500 | ||||||||||||||
Common stock ($0.001 par value; 575,000,000 shares authorized, 183,781,560 and 180,065,254 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively) | 183,781 | 180,065 | ||||||||||||||
Additional paid-in capital | 67,249 | 29,060 | 67,249 | 29,060 | ||||||||||||
Deferred Stock Compensation | (40,674 | ) | - | (40,674 | ) | - | ||||||||||
Retained earnings | 385,390 | 722,925 | 266,641 | 722,925 | ||||||||||||
Accumulated other comprehensive income | 47,996 | 133,056 | (21,899 | ) | 133,056 | |||||||||||
Total stockholders’ equity | 645,242 | 1,066,606 | 456,598 | 1,066,606 | ||||||||||||
Non-controlling interest | 11,843 | 19,562 | 11,058 | 19,562 | ||||||||||||
Total Equity | 657,085 | 1,086,168 | 467,656 | 1,086,168 | ||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 1,928,649 | $ | 2,130,059 | $ | 1,710,630 | $ | 2,130,059 |
F-2 |
For the Six Months | For the Three Months | For the Nine Months | For the Three Months | |||||||||||||||||||||||||||||
Ended June 30, | Ended June 30, | Ended September 30, | Ended September 30, | |||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Net sales | 132,185 | 336,778 | $ | 99,121 | 537 | $ | 432,190 | 886,020 | $ | 300,005 | 549,242 | |||||||||||||||||||||
Cost of sales | 48,899 | 19,791 | 42,224 | 32 | 264,425 | 392,891 | 215,526 | 373,100 | ||||||||||||||||||||||||
Gross profit | 83,286 | 316,987 | 56,897 | 505 | 167,765 | 493,129 | 84,479 | 176,142 | ||||||||||||||||||||||||
Selling, general and administrative expenses | 440,654 | 505,246 | 210,571 | 266,796 | 643,642 | 782,242 | 202,988 | 276,996 | ||||||||||||||||||||||||
Income (Loss) from operations | (357,368 | ) | (188,259 | ) | (153,674 | ) | (266,291 | ) | ||||||||||||||||||||||||
Other income (expense) | ||||||||||||||||||||||||||||||||
Interest income (expense) | (1,669 | ) | (217 | ) | (789 | ) | (213 | ) | ||||||||||||||||||||||||
Other income (expense) | 4,865 | (8,478 | ) | 7,370 | (3,376 | ) | ||||||||||||||||||||||||||
Gain (loss) on foreign currency exchange | - | - | - | - | ||||||||||||||||||||||||||||
Gain (loss) on investment in equity securities | - | 33,411 | - | 33,411 | ||||||||||||||||||||||||||||
Loss from operations | (475,877 | ) | (289,113 | ) | (118,509 | ) | (100,854 | ) | ||||||||||||||||||||||||
Other expense | ||||||||||||||||||||||||||||||||
Interest expense | (3,122 | ) | (1,043 | ) | (1,453 | ) | (826 | ) | ||||||||||||||||||||||||
Other income expense( ) | 4,704 | (48,676 | ) | (161 | ) | (40,198 | ) | |||||||||||||||||||||||||
Gain on investment in equity securities | - | 33,411 | - | - | ||||||||||||||||||||||||||||
Total other income (expense) | 3,196 | 24,716 | 6,581 | 29,822 | 1,582 | (16,308 | ) | (1,614 | ) | (41,024 | ) | |||||||||||||||||||||
Loss before income tax provision | (354,172 | ) | (163,543 | ) | (147,093 | ) | (236,469 | ) | (474,295 | ) | (305,421 | ) | (120,123 | ) | (141,878 | ) | ||||||||||||||||
Income tax provision | (10,475 | ) | (50,959 | ) | (10,475 | ) | (50,959 | ) | ||||||||||||||||||||||||
Income tax provision (benefits) | (10,274 | ) | (51,058 | ) | 201 | (99 | ) | |||||||||||||||||||||||||
Net Loss | $ | (343,697 | ) | (112,584 | ) | $ | (136,618 | ) | (185,510 | ) | $ | (464,021 | ) | (254,363 | ) | $ | (120,324 | ) | (141,779 | ) | ||||||||||||
Other Comprehensive Income (Loss): | ||||||||||||||||||||||||||||||||
Net income (loss) | ||||||||||||||||||||||||||||||||
Net income (loss) attributable to non-controlling interests | $ | (6,162 | ) | (507 | ) | $ | (2,071 | ) | (4,497 | ) | ||||||||||||||||||||||
Net income (loss) attributable to EOS and subsidiaries | (337,535 | ) | (112,077 | ) | (134,547 | ) | (181,013 | ) | ||||||||||||||||||||||||
Net loss attributable to non-controlling interests | $ | (7,738 | ) | (507 | ) | $ | (1,575 | ) | - | |||||||||||||||||||||||
Net loss attributable to EOS and subsidiaries | (456,283 | ) | (253,856 | ) | (118,749 | ) | (141,779 | ) | ||||||||||||||||||||||||
Foreign currency translation adjustment, net of tax | (86,619 | ) | 9,046 | (41,696 | ) | 33,074 | (155,723 | ) | 13,287 | (69,103 | ) | 4,431 | ||||||||||||||||||||
Comprehensive loss | $ | (430,316 | ) | (103,538 | ) | $ | (178,314 | ) | (152,436 | ) | $ | (619,744 | ) | (241,076 | ) | $ | (189,427 | ) | (137,348 | ) | ||||||||||||
Net loss per share: | ||||||||||||||||||||||||||||||||
Basic and diluted | $ | ( 0.00 ) | ( 1.51 ) | $ | ( 0.00 | ) | ( 2.09 ) | $ | (0.00 | ) | (0.01 | ) | $ | (0.00 | ) | (0.00 | ) | |||||||||||||||
Weighted average number of common shares: | ||||||||||||||||||||||||||||||||
Basic and diluted | 180,948,133 | 68,671 | 181,821,311 | 73,066 | 181,902,988 | 42,592,727 | 185,518,529 | 126,260,906 |
F-3 |
Common Stock | Preferred Stock | Stock Compensation | Accumulated Additional Paid-in | Retained | Accumulated Other Comprehensive Income/ | Non-Controlling | Common stock | Preferred Stock | Deferred Stock | Accumulated Additional Paid-in | Retained | Accumulated Other Comprehensive | Non- Controlling | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Reserve | Capital | Earning | (Loss) | Interest | Total | Shares | Amount | Shares | Amount | Compensation | Capital | Earning | Income | Interest | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 180,065,254 | $ | 180,065 | 1,500,000 | $ | 1,500 | $ | - | $ | 29,060 | $ | 722,925 | $ | 133,056 | $ | 19,562 | $ | 1,086,168 | 180,065,254 | $ | 180,065 | 1,500,000 | $ | 1,500 | $ | - | $ | 29,060 | $ | 722,925 | $ | 133,056 | $ | 19,562 | $ | 1,086,168 | |||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | - | - | - | - | - | - | - | (44,080 | ) | (843 | ) | (44,923 | ) | - | - | - | - | - | - | - | (44,080 | ) | (843 | ) | (44,923 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | (202,988 | ) | - | (4,091 | ) | (207,079 | ) | - | - | - | - | - | - | (202,988 | ) | - | (4,091 | ) | (207,079 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | 180,065,254 | $ | 180,065 | 1,500,000 | $ | 1,500 | $ | - | $ | 29,060 | $ | 519,937 | $ | 88,976 | $ | 14,628 | $ | 834,166 | 180,065,254 | $ | 180,065 | 1,500,000 | $ | 1,500 | $ | - | $ | 29,060 | $ | 519,937 | $ | 88,976 | $ | 14,628 | $ | 834,166 | |||||||||||||||||||||||||||||||||||||||||||
Share issued for compensation | 115,000 | 115 | - | - | - | 1,116 | - | - | - | 1,231 | 115,000 | 115 | 1,116 | 1,231 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defe r red compensation expense relating to issuance of restricted common stock | 3,601,306 | 3,601 | - | - | (38,534 | ) | 34,933 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred compensation expense relating to issuance of warrant | - | - | - | - | (2,140 | ) | 2,140 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred compensation expense relating to issuance of restricted common stock | 3,601,306 | 3,601 | - | - | (38,534 | ) | 34,933 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred comp e nsation expense relating to issuance of warrant | - | - | - | - | (2,140 | ) | 2,140 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | - | - | - | - | - | - | - | (40,980 | ) | (714 | ) | (41,694 | ) | - | - | - | - | - | - | - | (40,980 | ) | (714 | ) | (41,694 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | (134,547 | ) | - | (2,071 | ) | (136,618 | ) | - | - | - | - | - | - | (134,547 | ) | - | (2,071 | ) | (136,618 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | 183,781,560 | $ | 183,781 | 1,500,000 | $ | 1,500 | $ | (40,674 | ) | $ | 67,249 | $ | 385,390 | $ | 47,996 | $ | 11,843 | $ | 657,085 | 183,781,560 | $ | 183,781 | 1,500,000 | $ | 1,500 | $ | (40,674 | ) | $ | 67,249 | $ | 385,390 | $ | 47,996 | $ | 11,843 | $ | 657,085 | |||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | - | - | - | - | - | - | - | (69,895 | ) | 790 | (69,105 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | (118,749 | ) | - | (1,575 | ) | (120,324 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2022 | 183,781,560 | $ | 183,781 | 1,500,000 | $ | 1,500 | $ | (40,674 | ) | $ | 67,249 | $ | 266,641 | $ | (21,899 | ) | $ | 11,058 | $ | 467,656 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 74,123 | 74 | - | - | - | 186,474 | 1,058,090 | 87,051 | 24,544 | 1,356,233 | 74,123 | 74 | - | - | - | 186,474 | 1,058,090 | 87,051 | 24,544 | 1,356,233 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | - | - | - | - | - | - | - | (23,514 | ) | (514 | ) | (24,028 | ) | - | - | - | - | - | - | - | (23,514 | ) | (514 | ) | (24,028 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | 68,936 | - | 3,990 | 72,926 | - | - | - | - | - | - | 68,936 | - | 3,990 | 72,926 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | 74,123 | $ | 74 | - | $ | - | $ | - | $ | 186,474 | $ | 1,127,026 | $ | 63,537 | $ | 28,020 | $ | 1,405,131 | 74,123 | $ | 74 | - | $ | - | $ | - | $ | 186,474 | $ | 1,127,026 | $ | 63,537 | $ | 28,020 | $ | 1,405,131 | |||||||||||||||||||||||||||||||||||||||||||
Cancellation of common stock | (10,000 | ) | (10 | ) | - | - | - | (33,401 | ) | - | - | - | (33,411 | ) | (10,000 | ) | (10 | ) | - | - | - | (33,401 | ) | - | - | - | (33,411 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Reverse Stock Split Adjustment | 1,131 | 1 | - | - | - | (1 | ) | - | - | - | - | 1,131 | 1 | - | - | - | (1 | ) | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | - | - | - | - | - | - | - | 32,370 | 704 | 33,074 | - | - | - | - | - | - | - | 32,370 | 704 | 33,074 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | (181,013 | ) | - | (4,497 | ) | (185,510 | ) | - | - | - | - | - | - | (181,013 | ) | - | (4,497 | ) | (185,510 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | 65,254 | $ | 65 | - | $ | - | $ | - | $ | 153,072 | $ | 946,013 | $ | 95,907 | $ | 24,227 | $ | 1,219,284 | 65,254 | $ | 65 | - | $ | - | $ | - | $ | 153,072 | $ | 946,013 | $ | 95,907 | $ | 24,227 | $ | 1,219,284 | |||||||||||||||||||||||||||||||||||||||||||
Shares Issued for Liability Converted | 90,000,000 | 90,000 | - | - | - | (20,542 | ) | - | - | - | 69,458 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares Issued for minority controlling interests of its subsidiary | 90,000,000 | 90,000 | - | - | - | (90,000 | ) | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Preferred Stock to related party | - | - | 1,500,000 | 1,500 | - | (1,500 | ) | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | - | - | - | - | - | - | - | 4,431 | - | 4,431 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | (141,779 | ) | - | - | (141,779 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | 180,065,254 | $ | 180,065 | 1,500,000 | $ | 1,500 | $ | - | $ | 41,030 | $ | 804,234 | $ | 100,338 | $ | 24,227 | $ | 1,151,394 |
F-4 |
For the Nine Months | ||||||||||||||||
For the Six Months | Ended September 30, | |||||||||||||||
Ended June 30, | 2022 | 2021 | ||||||||||||||
Cash Flows from Operating Activities | 2022 | 2021 | ||||||||||||||
Net income (loss) | $ | (343,697 | ) | $ | (112,584 | ) | ||||||||||
Net loss | $ | (464,021 | ) | $ | (254,363 | ) | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||||||
Bad Debt Expenses (Recovery) | (17,900 | ) | - | |||||||||||||
Bad debt recovery | (17,557 | ) | - | |||||||||||||
Depreciation | 636 | 1,109 | 898 | 1,677 | ||||||||||||
Loss on investment in equity securities | - | (33,411 | ) | |||||||||||||
Amortization of right-of-use asset | 18,138 | - | 26,767 | |||||||||||||
Stock based compensation/Shares issued for expenses | 1,231 | - | ||||||||||||||
Unrealized (gain) loss from investment | (33,411 | ) | ||||||||||||||
Stock based compensation | 1,231 | - | ||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||
Decrease (increase) in accounts receivable | 235,129 | (172,549 | ) | 136,127 | (64,569 | ) | ||||||||||
Decrease (increase) in inventory | (117,044 | ) | (68,886 | ) | (34,915 | ) | 289,835 | |||||||||
Decrease (increase) in advance to suppliers | 45,759 | 14,707 | 90,587 | (83,766 | ) | |||||||||||
Decrease (increase) in security deposits and other assets | (2,834 | ) | 11,232 | 21,803 | 3,636 | |||||||||||
Increase (decrease) in accounts payable | 52,706 | (267,501 | ) | 1,778 | (20,575 | ) | ||||||||||
Increase (decrease) in accrued expenses | 90,258 | 344,947 | 160,111 | 153,419 | ||||||||||||
Increase (decrease) in tax payable | (7,911 | ) | (53,146 | ) | (7,664 | ) | (27,728 | ) | ||||||||
Increase (decrease) in operating lease liabilities | (18,138 | ) | - | (26,767 | ) | - | ||||||||||
Net cash used in operating activities | (63,667 | ) | (336,082 | ) | (111,622 | ) | (35,845 | ) | ||||||||
Cash flows from Investing activities | ||||||||||||||||
Purchase of equipment | (19,919 | ) | (1,525 | ) | (19,537 | ) | (1,528 | ) | ||||||||
Net cash used in investing activities | (19,919 | ) | (1,525 | ) | (19,537 | ) | (1,528 | ) | ||||||||
Cash flows from Financing activities | ||||||||||||||||
Proceeds from related party payable | 304,088 | 153,396 | 362,308 | (19,698 | ) | |||||||||||
Repayment to related party | (114,378 | ) | - | (177,738 | ) | - | ||||||||||
Proceeds from borrowings | - | 121,561 | - | 133,854 | ||||||||||||
Repayment to borrowings | (38,992 | ) | - | (57,102 | ) | - | ||||||||||
Net cash provided by financing activities | 150,718 | 274,957 | 127,468 | 114,156 | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (3,945 | ) | 512 | (2,876 | ) | 1,465 | ||||||||||
Net increase (decrease) in cash and cash equivalents | 63,187 | (62,138 | ) | (6,566 | ) | 78,248 | ||||||||||
Cash and Cash Equivalents | ||||||||||||||||
Beginning | 24,141 | 122,482 | 24,141 | 122,482 | ||||||||||||
Ending | $ | 87,328 | $ | 60,344 | $ | 17,575 | $ | 200,730 | ||||||||
Supplemental Disclosure of Cash Flows | ||||||||||||||||
Cash paid during the periods for: | ||||||||||||||||
Interest | $ | 1,682 | $ | - | $ | 3,135 | $ | 2,179 | ||||||||
Income taxes | $ | - | $ | - | $ | - | $ | (51,058 | ) | |||||||
Non-cash investing and financing activities: | ||||||||||||||||
Related party debt converted to Common stock | $ | - | $ | 69,459 | ||||||||||||
Issuance of Common Stock for minority controlling interests of its subsidiary | $ | - | $ | 90,000 | ||||||||||||
Issuance of Preferred Stock to related party | $ | - | $ | 1,500 | ||||||||||||
Deferred compensation expense relating to issuance of restricted common stock | $ | 38,534 | $ | - | $ | 38,534 | $ | - | ||||||||
Deferred compensation expense relating to issuance of warrant | $ | 2,140 | $ | - | $ | 2,140 | $ | - |
F-5 |
F-6 |
F-7 |
F-8 |
F-9 |
For the six months ended June 30, 2022: | ||||||||
For the nine months ended September 30, 2022: | ||||||||
Water purifier machine | $ | 12,105 | $ | 11,873 | ||||
Automobile carbon reduction machine | 8,993 | 21,665 | ||||||
Nutrition supplement | 55,486 | 110,355 | ||||||
Software | 53,161 | 285,920 | ||||||
Other materials | 2,440 | 2,377 | ||||||
Total | $ | 132,185 | $ | 432,190 |
For the six months ended June 30, 2021: | ||||||||
For the nine months ended September 30, 2021: | ||||||||
Water purifier machine | $ | 336,778 | $ | 886,020 | ||||
Automobile carbon reduction machine | - | - | ||||||
Nutrition supplement | - | - | ||||||
Software | - | - | ||||||
Total | $ | 336,778 | $ | 886,020 |
F-10 |
For the six months ended June 30, 2022: | ||||
Asia Pacific | $ | 132,185 | ||
Total | $ | 132,185 |
For the nine months ended September 30, 2022: | ||||
Asia Pacific | $ | 432,190 | ||
Total | $ | 432,190 |
For the six months ended June 30, 2021: | ||||
Asia Pacific | $ | 336,778 | ||
Total | $ | 336,778 |
For the nine months ended September 30, 2021: | ||||
Asia Pacific | $ | 886,020 | ||
Total | $ | 886,020 |
F-11 |
F-12 |
Customer | Net sales for the six months ended June 30, 2022 | Accounts balance as of June 30, | Net sales for the nine months ended September 30, 2022 | Accounts receivable balance as of September 30, 2022 | ||||||||||||
A | $ | 59,254 | $ | 289,735 | $ | 69,268 | $ | 295,699 | ||||||||
B | 47,805 | - | $ | 271,332 | $ | 36,373 | ||||||||||
C | $ | 71,867 | $ | 54,403 |
Customer | Net sales for the six months ended June 30, 2021 | Accounts receivable balance June 30, | Net sales for the nine months ended September 30, 2021 | Accounts receivable balance as of September 30, 2021 | ||||||||||||
A | $ | 336,778 | $ | 330,853 | $ | 886,020 | $ | 243,933 |
Supplier | Net purchase for the six months ended June 30, 2022 | Accounts payable balance as of June 30, 2022 | Net purchase for the nine months ended September 30, 2022 | Accounts payable balance as of September 30, 2022 | ||||||||||||
A | $ | - | $ | - | $ | - | $ | - | ||||||||
B | $ | 117,676 | $ | - | $ | 106,185 | $ | - | ||||||||
C | $ | - | $ | - | $ | - | $ | - | ||||||||
D | $ | 42,487 | $ | 50,853 | $ | 162,845 | $ | 1,636 |
Supplier | Net purchase for the six months ended June 30, 2021 | Accounts payable balance as of June 30, 2021 | Net purchase for the nine months ended September 30, 2021 | Accounts payable balance as of September 30, 2021 | ||||||||||||
A | $ | - | $ | - | $ | - | $ | - | ||||||||
B | $ | - | $ | - | $ | - | $ | - | ||||||||
C | $ | - | $ | - | $ | - | $ | - | ||||||||
D | $ | 12,851 | $ | - | $ | 12,930 | $ | - | ||||||||
E | $ | 71,274 | $ | - | $ | 71,712 | $ | - | ||||||||
F | $ | 13,189 | $ | - |
Lease Cost | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | Nine Months Ended September 30, 2022 | Nine Months Ended September 30, 2021 | ||||||||||||
Operating lease cost (included in general and administrative expenses in the Company’s statement of operations) | $ | 19,052 | - | $ | 28,242 | - | ||||||||||
Other Information | ||||||||||||||||
Right-of-use assets obtained in exchange for new operating leases liabilities | 82,678 | - | 82,678 | - | ||||||||||||
Cash paid for amounts included in the measurement of lease liabilities for the year ended | - | - | - | - | ||||||||||||
Weighted average remaining lease term – operating leases (in years) | 1.75 | - | 1.5 | - | ||||||||||||
Average discount rate – operating lease | 2.44 | % | - | 2.44 | % | - |
June 30, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | |||||||||||||
Operating leases | ||||||||||||||||
Right-of-use assets | $ | 62,123 | $ | - | $ | 49,841 | $ | 85,419 | ||||||||
Operating lease liabilities | $ | 62,123 | $ | - | $ | 49,841 | $ | 85,419 |
For the six months ending June 30, | ||||
2022 | 18,360 | |||
2023 | 36,751 | |||
2024 | 9,274 | |||
Total lease payments | 64,385 | |||
Less: Interest | (2,262 | ) | ||
Total | 62,123 |
For the nine months ending September 30, | ||||
2022 | 8,596 | |||
2023 | 33,806 | |||
2024 | 8,403 | |||
Total lease payments | 50,805 | |||
Less: Interest | (964 | ) | ||
Total | 49,841 |
Name of Related Party | Nature of Relationship | |
Yu Cheng Yang | Majority Shareholder, Director and Officer of the Company | |
Co-Innovation Group Limited | Company under control of Yu Cheng Yang | |
World Capital Holding Limited | Company under control by Shanghai Qifan Qiye Management Co., Ltd.’s shareholders, former non-controlling interest of the Company |
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (Years) | ||||||||||
Warrants outstanding at December 31, 2021 | - | $ | - | - | ||||||||
Granted | 200,000 | 2.00 | 5.23 | |||||||||
Exercised | - | - | - | |||||||||
Expired | - | - | - | |||||||||
Warrants outstanding at September 30, 2022 | 200,000 | $ | 2.00 | 5.23 | ||||||||
Warrants exercisable at September 30, 2022 | 200,000 | $ | 2.00 | 5.23 |
Weighted Average Exercise | Weighted Average Remaining Contractual Term | |||||||||||
Number of Shares | Price | (Years) | ||||||||||
Warrants outstanding at December 31, 2021 | - | $ | - | - | ||||||||
Granted | 200,000 | 2.00 | 5.48 | |||||||||
Exercised | - | - | - | |||||||||
Expired | - | - | - | |||||||||
Warrants outstanding at June 30, 2022 | 200,000 | $ | 2.00 | 5.48 | ||||||||
Warrants exercisable at June 30, 2022 | 200,000 | $ | 2.00 | 5.48 |
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Expected life (years) | 5.89 | N/A | 5.89 | N/A | ||||||||||||
Risk-free interest rate | 0.76 | % | N/A | 0.76 | % | N/A | ||||||||||
Expected volatility | 329.86 | % | N/A | 329.86 | % | N/A | ||||||||||
Dividend yield | 0 | % | N/A | 0 | % | N/A |
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Current income tax | ||||||||||||||||
U.S. | $ | - | $ | - | $ | - | $ | - | ||||||||
Taiwan | - | - | (10,274 | ) | (51,058 | ) | ||||||||||
PRC | - | - | - | - | ||||||||||||
Sub total | - | - | (10,274 | ) | (51,058 | ) | ||||||||||
Deferred income tax | ||||||||||||||||
Deferred tax assets for NOL carryforwards | (72,025 | ) | (23,624 | ) | ||||||||||||
Deferred tax assets for NOL carry-forwards | (96,994 | ) | (44,945 | ) | ||||||||||||
Valuation allowance | 72,025 | 23,624 | 96,994 | 44,945 | ||||||||||||
Net changes in deferred income tax (benefit) | - | - | - | - | ||||||||||||
Total income tax provision | $ | - | $ | - | $ | - | $ | - |
` | Nine months Ended September 30, | |||||||
2022 | 2021 | |||||||
Net loss before income tax | (474,295 | ) | (305,421 | ) | ||||
Statutory tax rate | 20 | % | 20 | % | ||||
Income tax provision | (94,859 | ) | (61,084 | ) | ||||
Computed expected benefit | 10,274 | 51,058 | ||||||
Valuation allowance | 96,994 | 52,172 | ||||||
Other, primarily the difference in tax rates | (2,135 | ) | 8,912 | |||||
Income tax expenses | 10,274 | 51,058 |
For the Period Ended | ||||||||
June 30, 2022 | June 30, 2021 | |||||||
Net loss before income tax | (352,941 | ) | (112,584 | ) | ||||
Statutory tax rate | 20 | % | 20 | % | ||||
Income tax provision | (70,588 | ) | (22,517 | ) | ||||
Computed expected benefit | 10,475 | - | ||||||
Valuation allowance | 72,025 | 23,565 | ||||||
Other, primarily the difference in tax rates | (1,437 | ) | (1,048 | ) | ||||
Income tax expenses | 10,475 | - |
For the Period Ended | ||||||||
Deferred tax assets: | June 30, 2022 | December 31, 2021 | ||||||
Net operating loss carryforwards | 307,513 | 235,488 | ||||||
Less: Valuation allowance | (307,513 | ) | (235,488 | ) | ||||
Deferred tax assets, net | - | - |
Nine months Ended September 30, | ||||||||
Deferred tax assets: | 2022 | 2021 | ||||||
Net operating loss carry - forwards | 332,482 | 235,488 | ||||||
Less: Valuation allowance | (332,482 | ) | (235,488 | ) | ||||
Deferred tax assets, net | - | - |
For the six months ended June 30, 2022: | ||||
Water purifier machine | $ | 12,105 | ||
Automobile carbon reduction machine | 8,993 | |||
Nutrition supplement | 55,486 | |||
Software | 53,161 | |||
Other materials | 2,440 | |||
Total | $ | 132,185 |
For the nine months ended September 30, 2022: | ||||
Water purifier machine | $ | 11,873 | ||
Automobile carbon reduction machine | 21,665 | |||
Nutrition supplement | 110,355 | |||
Software | 285,920 | |||
Other materials | 2,377 | |||
Total | $ | 432,190 |
For the six months ended June 30, 2021: | ||||
Water purifier machine | $ | 336,778 | ||
Automobile carbon reduction machine | - | |||
Nutrition supplement | - | |||
Software | - | |||
Total | $ | 336,778 |
For the nine months ended September 30, 2021: | ||||
Water purifier machine | $ | 886,020 | ||
Automobile carbon reduction machine | - | |||
Nutrition supplement | - | |||
Software | - | |||
Total | $ | 886,020 |
For the nine months ended September 30, 2022: | ||||
Asia Pacific | $ | 432,190 | ||
Total | $ | 432,190 |
For the nine months ended September 30, 2021: | ||||
Asia Pacific | $ | 886,020 | ||
Total | $ | 886,020 |
For the six months ended June 30, 2022: | ||||
Asia Pacific | $ | 132,185 | ||
Total | $ | 132,185 |
For the six months ended June 30, 2021: | ||||
Asia Pacific | $ | 336,778 | ||
Total | $ | 336,778 |
¨ | Level 1 – Inputs are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Valuation of these instruments does not require a high degree of judgment as the valuations are based on quoted prices in active markets that are readily and regularly available. |
¨ | Level 2 – Inputs other than quoted prices in active markets that are either directly or indirectly observable as of the measurement date, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. |
¨ | Level 3 – Valuations based on inputs that are unobservable and not corroborated by market data. The fair value for such assets and liabilities is generally determined using pricing models, discounted cash flow methodologies, or similar techniques that incorporate the assumptions a market participant would use in pricing the asset or liability. |
Customer | Net sales for the nine months ended September 30, 2022 | Accounts receivable balance as of September 30, 2022 | ||||||
A | $ | 69,268 | $ | 295,699 | ||||
B | $ | 271,332 | $ | 36,373 | ||||
C | $ | 71,867 | $ | 54,403 |
Customer | Net sales for the six months ended June 30, 2022 | Accounts receivable balance as of June 30, 2022 | ||||||
A | $ | 59,254 | $ | 289,735 | ||||
B | $ | 47,805 |
Customer | Net sales for the nine months ended September 30, 2021 | Accounts receivable balance as of September 30, 2021 | ||||||
A | $ | 886,020 | $ | 243,933 |
Customer | Net sales for the six months ended June 30, 2021 | Accounts receivable balance as of June 30, 2021 | ||||||
A | $ | 336,778 | $ | 330,853 |
Supplier | Net purchase for the six months ended June 30, 2022 | Accounts payable balance as of June 30, 2022 | Net purchase for the nine months ended September 30, 2022 | Accounts payable balance as of September 30, 2022 | ||||||||||||
A | $ | - | $ | - | $ | - | $ | - | ||||||||
B | $ | 117,675 | $ | - | $ | 106,185 | $ | - | ||||||||
C | $ | - | $ | - | $ | - | $ | - | ||||||||
D | $ | 42,457 | $ | 50,853 | $ | 162,845 | $ | 1,636 |
Supplier | Net purchase for the nine months ended September 30, 2021 | Accounts payable balance as of September 30, 2021 | ||||||
A | $ | - | $ | - | ||||
B | $ | - | $ | - | ||||
C | $ | - | $ | - | ||||
D | $ | 12,930 | $ | - | ||||
E | $ | 71,712 | $ | - | ||||
F | $ | 13,189 | $ | - |
Supplier | Net purchase for the six months ended June 30, 2021 | Accounts payable balance as of June 30, 2021 | ||||||
A | $ | - | $ | - | ||||
B | $ | - | $ | - | ||||
C | $ | - | $ | - | ||||
D | $ | 12,851 | $ | - | ||||
E | $ | 71,274 | $ | - |
EOS Inc. | ||
Date: November 14, 2022 | By: | /s/ He-Siang Yang |
He-Siang Yang | ||
Principal Executive Officer, Principal Financial Officer, President and Chairman of the Board |