Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2020 | Jun. 29, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | Umatrin Holding Ltd | |
Entity Central Index Key | 0001317839 | |
Document Type | 10-Q/A | |
Amendment Flag | true | |
Amendment Description | Amendment | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Mar. 31, 2020 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 | |
Entity Common Stock Shares Outstanding | 182,444,266 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 142,247 | $ 171,678 |
Inventory | 139,538 | 27,611 |
Prepaid tax | 19,524 | 13,348 |
Deferred tax assets | 10,520 | 10,484 |
Due from related parties | 406,749 | 398,580 |
Total Current Assets | 718,578 | 621,701 |
Land, property and equipment, net | 873,532 | 889,285 |
Deposits | 19,943 | 19,874 |
Total Assets | 1,612,053 | 1,530,860 |
Current Liabilities | ||
Term loan payable-current portion | 22,875 | 22,533 |
Hire purchase-current portion | 10,955 | 10,917 |
Accounts payable and accrued expenses | 287,437 | 231,812 |
Other payables | 203,106 | 202,400 |
Due to related parties | 579,653 | 983,210 |
Total Current Liabilities | 1,104,026 | 1,450,872 |
Term loan payable-long term | 365,351 | 435,924 |
Hire purchase payable-long term | 50,459 | 53,013 |
Total Long Term Liabilities | 415,810 | 488,937 |
Total Liabilities | 1,519,836 | 1,939,809 |
Umatrin Holding Limited Stockholders' Equity | ||
Preferred stock: 10,000,000 authorized; $0.00001 par value 0 and 0 shares issued and outstanding | 0 | 0 |
Common stock: 500,000,000 authorized; $0.00001 par value 182,444,266 shares issued and outstanding | 1,825 | 1,825 |
Additional paid in capital | 3,136,561 | 3,136,561 |
Accumulated deficits | (2,972,638) | (3,369,169) |
Accumulated other comprehensive loss | (130,285) | (130,943) |
Total Umatrin Holding Limited Stockholders' Equity | 35,463 | (361,726) |
Non-controlling interest | 56,754 | (47,223) |
Total Equity | 92,217 | (408,949) |
Total Liabilities and Stockholders Equity | $ 1,612,053 | $ 1,530,860 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
CONSOLIDATED BALANCE SHEETS | ||
Preferred stock, shares par value | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 182,444,266 | 182,444,266 |
Common stock, shares outstanding | 182,444,266 | 182,444,266 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) | ||
Sales | $ 790,591 | $ 154,799 |
Cost of sales | 58,747 | 25,974 |
Gross profit | 731,844 | 128,825 |
Operating expenses | ||
Selling, general & administrative expenses | 225,389 | 103,013 |
Total operating expenses | 225,389 | 103,013 |
Profit/(Loss) from operations | 506,455 | 25,812 |
Other income (expenses) | ||
Interest expense | (6,111) | (6,111) |
Total other income (expenses) | (6,111) | (6,111) |
Net profit/(loss) before income taxes | 500,344 | 19,701 |
Provision for income taxes | 0 | 0 |
Net profit/(loss) | 500,344 | 19,701 |
Less: Net profit/(loss) attributable to non-controlling interest | 103,812 | 7,683 |
Net profit/(loss) attributable to Umatrin Holding Limited | 396,531 | 12,017 |
Other comprehensive profit/(loss), net of tax | ||
Foreign currency translation adjustment | (5,369) | 10,184 |
Comprehensive profit/(loss) | 494,976 | 29,885 |
Comprehensive profit/(loss) attributable to the non-controlling interest | 102,738 | 13,330 |
Comprehensive profit/(loss) attributable to Umatrin Holding Limited | $ 392,237 | $ 16,555 |
Loss per common share - basic and diluted | $ 0 | $ 0 |
Weighted average number of shares outstanding - basic and diluted | 182,444,266 | 182,444,266 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities | ||
Net profit/(loss) including noncontrolling interest | $ 500,344 | $ 19,701 |
Adjustment to reconcile net profit/(loss) from operations: | ||
Depreciation expense | 21,448 | 18,098 |
Changes in Operating Assets and Liabilities | ||
Inventory | (111,478) | (31,507) |
Prepaid tax | (6,110) | (4,155) |
Other receivables and deposits | 0 | 8,066 |
Accounts payable and accrued expenses | 51,677 | (10,422) |
Other payables | 3,500 | 3,500 |
Net cash used in operating activities | 459,381 | 3,280 |
Cash flows from investing activity | ||
Purchase of property and equipment | (2,654) | 0 |
Net cash provided by (used in) investing activity | (2,654) | 0 |
Cash flows from financing activities | ||
Proceeds/(Repayment) to related party, net | (412,329) | 24,644 |
Proceeds/(Repayments) from loan, net | (74,331) | (4,795) |
Net cash provided by financing activities | (486,661) | 19,849 |
Effect of exchange rate changes | 503 | 743 |
Net increase (decrease) in cash and cash equivalents | (29,431) | 23,871 |
Cash and cash equivalents at beginning of period | 171,678 | 36,431 |
Cash and cash equivalents at end of period | 142,247 | 60,302 |
Supplemental disclosures of cash flow information | ||
Interest paid | 6,111 | 6,111 |
Income taxes (refund)/paid | $ 6,110 | $ 4,155 |
STATEMENTS OF OWNERS' EQUITY (U
STATEMENTS OF OWNERS' EQUITY (UNAUDITED) - USD ($) | Total | Common Stock 0.00001 Shares | Additional Paid-In Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive Loss | Noncontrolling Interest |
Balance, shares at Dec. 31, 2018 | 182,444,266 | |||||
Balance, amount at Dec. 31, 2018 | $ (497,897) | $ 1,825 | $ 3,136,561 | $ (3,422,205) | $ (125,991) | $ (88,087) |
Net income (loss) | 95,138 | 53,036 | 0 | 42,102 | ||
Cumulative translation adjustment | (6,190) | $ 0 | 0 | 0 | (4,952) | (1,238) |
Balance, shares at Dec. 31, 2019 | 182,444,266 | |||||
Balance, amount at Dec. 31, 2019 | (408,949) | $ 1,825 | 3,136,561 | (3,369,169) | (130,943) | (47,223) |
Net income (loss) | 0 | 0 | 0 | 396,531 | 0 | 103,812 |
Cumulative translation adjustment | 823 | $ 0 | 0 | 0 | 658 | 165 |
Balance, shares at Mar. 31, 2020 | 182,444,266 | |||||
Balance, amount at Mar. 31, 2020 | $ 92,217 | $ 1,825 | $ 3,136,561 | $ (2,972,638) | $ (130,285) | $ 56,754 |
ORGANIZATION
ORGANIZATION | 3 Months Ended |
Mar. 31, 2020 | |
ORGANIZATION | |
1. ORGANIZATION | Umatrin Holding Limited (formerly known as Golden Opportunities Corporation) (“UMHL”) was incorporated in the state of Delaware on February 2, 2005. UMHL was originally incorporated in order to locate and negotiate with a targeted business entity for the combination of that target company with the Company. On January 6, 2016, UMHL acquired 80% of the equity interests of U Matrin Worldwide SDN. BHD. ("Umatrin") in exchange for the issuance of a total of 100,000,000 shares of its common stock to the two holders of Umatrin, Dato' Sri Eu Hin Chai and Dato' Liew Kok Hong. Immediately following the Share Exchange, the business of Umatrin became the business of UMHL. U Matrin Worldwide SDN BHD, formerly known as OLC Worldwide SDN. BHD., was incorporated in Malaysia on July 22, 1993. The principal activities of Umatrin is direct selling and trading on beauty and personal care products, and investment holding. UMHL entered into a share exchange agreement with Umatrin whereas the acquisition was accounted under US GAAP as a business combination under common control with UMHL being the acquirer as both entities were owned by the same controlling shareholders. Prior to the business combination, Dato' Sri Eu Hin Chai, through Umatrin Group Ltd., held 76% of the outstanding shares of common stock of the Company. Dato' Sri Eu Hin Chai and Dato' Liew Kok Hong beneficially owned 61.25% and 38.75% of Umatrin immediately prior to the closing. Accordingly, historical cost will be the basis for transfer of assets and liabilities in the business combination in accordance with ASC 805-50-30-5. Umatrin Holding Limited and its subsidiary U Matrin Worldwide SDN. BHD. shall be referred as the “Company”. The organization structure as follows: Umatrin Holding Ltd. (USA) 80% U Matrin Worldwide SDN BHD (Malaysia) |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2020 | |
SIGNIFICANT ACCOUNTING POLICIES | |
2. SIGNIFICANT ACCOUNTING POLICIES | Basis of presentation The accompanying consolidated financial statements and related notes have been prepared in accordance with generally accepted accounting principles in the United States ("US GAAP"). The accompanying consolidated financial statements include the accounts of the Company and its subsidiary. Significant inter-company transactions have been eliminated in consolidation. In accordance with ASC 805-50-45-5, for transactions between entities under common control, financial statements and financial information presented for prior periods have been be retroactively adjusted to furnish comparative information. The accompanying consolidated financial statements are presented retrospectively as though the share exchange agreement between the UMHL and Umatrin occurred at the beginning of the first period presented. Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make 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 revenues and expenses during the reporting period. Actual results could differ from these estimates. Reclassification Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported net income or losses. Functional and presentation currency The functional currency of Umatrin is the currency of the primary economic environment in which the Company operates which is Malaysia Ringgit (“MYR”). Transactions in currencies other than the entity’s functional currency are recorded at the rates of exchange prevailing on the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing at the end of the reporting periods. Exchange differences arising on the settlement of monetary items and on translation of monetary items at period-end are included in income statement of the period. For the purpose of presenting these financial statements, the Company’s assets and liabilities are expressed in US$ at the exchange rate on the balance sheet date, stockholder’s equity accounts are translated at historical rates, and income and expense items are translated at the weighted average exchange rate during the period. The resulting translation adjustments are reported under accumulated other comprehensive income in the stockholder’s equity section of the balance sheets. Exchange rate used for the translation as follows: Period End Average US$ to MYR Rate Rate March 31, 2020 4.0783 4.0912 December 31, 2019 4.0925 4.1421 March 31, 2019 4.0783 4.0912 Fair value of financial instruments The Company’s balance sheet includes financial instruments, including cash, term loan, accounts payable, accrued expenses, amounts due to related party and convertible notes payable to a related party. The carrying amounts of current assets and current liabilities approximate their fair value because of the relatively short period of time between the origination of these instruments and their expected realization. Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally observable inputs and not corroborated by market data. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of March 31, 2020. The respective carrying value of certain amounts on the balance sheet financial instruments approximated their fair values due to the short-term nature of these instruments. Related parties The Company adopted ASC 850, Related Party Disclosures Risks and Uncertainties The Company’s operations are subject to significant risks and uncertainties including financial, operational and regulatory risks, including the potential risk of business failure. Commitments and contingencies The Company adopted ASC 450-20, Loss Contingencies Cash and cash equivalents The Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. The cash and cash equivalents for the period ended March 31, 2020 and December 31, 2019 were $142,247 and $171,678 respectively. Trade Receivables Trade receivables are carried at anticipated realizable value. Bad debts are written off in the period in which they are identified. An estimate is made for doubtful debts based on a review of all outstanding amounts at the balance sheet date. Bad debt expenses were $nil and $nil for the three months ended March 31, 2020 and 2019, respectively. At March 31, 2020 and December 31, 2019, the Company did not have any outstanding trade receivables. Inventories Inventories, which are primarily comprised of finished goods for sale, are stated at the lower of cost or net realizable value, using the first-in first-out (FIFO) method. The Company evaluates the need for reserves associated with obsolete, slow-moving and non-salable inventory by reviewing net realizable values on a periodic basis. Only defects products could be return to our suppliers. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and impairment losses, if any. Depreciation is calculated under the straight-line method to write off the cost of the assets over their estimated useful lives. Computer and software 5 years Furniture and fittings 10 years Office equipment 10 years Renovation and improvements 10 years Motor vehicle 5 years Building 40 years Land 95 years An item of equipment is derecognized upon disposal or when no future economic benefits are expected from its use. Any gain or loss arising from de-recognition of asset is recognized in profit or loss. Expenditures for repairs and maintenance, which do not improve or extend the expected useful lives of the assets, are expensed as incurred while major replacements and improvements are capitalized. Impairment of Long-lived Assets In accordance with ASC Topic 360, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. The Company recorded no impairment charge for the three months ended March 31, 2020 and 2019. Revenue Recognition The Company adopted ASU 201409, Topic 606 on January 1, 2018, using the modified retrospective method. ASC 606 requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identify the contract 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 occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation. The adoption of Topic 606 has no impact on revenue amounts recorded on the Company’s interim financial statements. The Company generally recognizes product sales revenue when the performance obligation have been satisfied pursuant to Malaysia law, including such factors as contract existed with the customer, delivery and acceptance of products by customer has occurred, the sales price is fixed or determinable and allocated to the products sold, sales and value-added tax laws have been complied with, and collectability is reasonably assured. The Company estimates potential returns and records such estimates against its gross revenue to arrive at its reported net sales revenue. Commission The Company expenses commission costs as incurred and includes it in selling expenses. The Company expenses commission costs as incurred and includes it in selling expenses. The Company grants commission to dealers and promoters to promote and sell the products. Amount of commission is based upon agreed value between the Company and the dealers and promoters as there is no fix basis for such amount. Advertising The Company expenses advertising costs as incurred and includes it in selling expenses. The Company recorded $nil and $nil for advertising and promotions expenses during the three months ended March 31, 2020 and 2019, respectively. Income taxes and valuation allowance The Company follows ASC 740, Income Taxes A tax benefit from an uncertain tax position may be recognized only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities. The determination is based on the technical merits of the position and presumes that the relevant taxing authority that has full knowledge of all relevant information will examine each uncertain tax position. Although the Company believes the estimates are reasonable, no assurance can be given that the final outcome of these matters will not be different than what is reflected in the historical income tax provisions and accruals. Comprehensive Income (Loss) The Company follows the provisions of the Financial Accounting Standards Board (the “FASB”) ASC 220 Reporting Comprehensive Income Segment Information The Company adopted ASC-280, Disclosures about Segments of an Enterprise and Related Information Recent Accounting Pronouncements In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which revises the accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. The ASU also amends certain disclosure requirements associated with the fair value of financial instruments. The new guidance requires the fair value measurement of investments in equity securities and other ownership interests in an entity, including investments in partnerships, unincorporated joint ventures and limited liability companies (collectively, equity securities) that do not result in consolidation and are not accounted for under the equity method. Entities will need to measure these investments and recognize changes in fair value in net income. Entities will no longer be able to recognize unrealized holding gains and losses on equity securities they classify under current guidance as available for sale in other comprehensive income (OCI). They also will no longer be able to use the cost method of accounting for equity securities that do not have readily determinable fair values. Instead, for these types of equity investments that do not otherwise qualify for the net asset value practical expedient, entities will be permitted to elect a practicability exception and measure the investment at cost less impairment plus or minus observable price changes (in orderly transactions). The ASU also establishes an incremental recognition and disclosure requirement related to the presentation of fair value changes of financial liabilities for which the fair value option (FVO) has been elected. Under this guidance, an entity would be required to separately present in OCI the portion of the total fair value change attributable to instrument-specific credit risk as opposed to reflecting the entire amount in earnings. For derivative liabilities for which the FVO has been elected, however, any changes in fair value attributable to instrument-specific credit risk would continue to be presented in net income, which is consistent with current guidance. The standard is effective beginning January 1, 2018 via a cumulative-effect adjustment to beginning retained earnings, except for guidance relative to equity securities without readily determinable fair values which is applied prospectively. The adoption of this ASU did not have any impact on the Company’s consolidated results of operations and financial condition. In February 2016, the FASB issued ASU No. 2016-02, Leases, replacing existing lease accounting guidance. The new standard introduces a lessee model that would require entities to recognize assets and liabilities for most leases, but recognize expenses on their income statements in a manner similar to current accounting. The ASU does not make fundamental changes to existing lessor accounting. However, it modifies what qualifies as a sales-type and direct financing lease and related accounting and aligns a number of the underlying principles with those of the new revenue standard, ASU No. 2014-09, such as evaluating how collectability should be considered and determining when profit can be recognized. The guidance eliminates existing real estate-specific provisions and requires expanded qualitative and quantitative disclosures. The standard requires modified retrospective transition by which it is applied at the beginning of the earliest comparative period presented in the year of adoption. The ASU is effective January 1, 2019. The Company adopted the new standard on January 1, 2019 using the modified retrospective method of adoption. The transition method expedient which allows entities to initially apply the requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. As a result of electing this transition method, prior periods have not been restated. The adoption of this ASU did not have any impact on the Company’s consolidated results of operations and financial condition as the Company did not have any leases at the time of adoption. |
GOING CONCERN
GOING CONCERN | 3 Months Ended |
Mar. 31, 2020 | |
GOING CONCERN | |
3. GOING CONCERN | As reflected in the accompanying financial statements, the Company had accumulated deficit of $2,972,638 as of March 31, 2020 which include a profit of $500,344 for the three months ended March 31, 2020. The Company ability to generate profit in the next 12 months is uncertain given that the market in which it operates is facing an economic slowdown. Management's plans include the raising of capital through the equity markets to fund future operations, seeking additional acquisitions, and generating profits through its business operations; however, there can be no assurances the Company will be successful in its efforts to secure additional equity financing and obtaining sufficient profit. These factors raise substantial doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. |
LAND, PROPERTY EQUIPMENT
LAND, PROPERTY EQUIPMENT | 3 Months Ended |
Mar. 31, 2020 | |
LAND, PROPERTY EQUIPMENT | |
4. LAND, PROPERTY & EQUIPMENT | Land, property & equipment consist of the following: March 31, December 31, 2020 2019 Computer and software $ 24,520 $ 21,795 Furniture and fittings 29,912 29,808 Office equipment 43,649 43,498 Renovations and improvements 352,160 350,937 Motor vehicle 81,289 81,007 Building 914,024 910,848 Land 224,262 223,483 Total 1,669,816 1,661,376 Less: accumulated depreciation (796,284 ) (772,091 ) Net $ 873,532 $ 889,285 The depreciation expense charged to general and administrative expenses were $21,448 and $18,098 for the three months ended March 31, 2020 and 2019, respectively. |
RELATED PARTIES TRANSACTIONS
RELATED PARTIES TRANSACTIONS | 3 Months Ended |
Mar. 31, 2020 | |
RELATED PARTIES TRANSACTIONS | |
5. RELATED PARTIES TRANSACTIONS | Due from related parties consists of the following: March 31, December 31, 2020 2019 Purpose Global Bizrewards Sdn. Bhd. $ 282,149 $ 274,413 Advance Koperasi Usahawan 105,749 105,382 Advance Global Patronage Sdn Bhd 14,171 14,121 Advance Yaya Media Sdn Bhd 266 266 Advance Hipland Realty Sdn. Bhd. 4,414 4,398 Advance Total Due from 406,749 398,580 Due to related parties consists of the following: March 31, December 31, 2020 2019 Purpose Dato Sri Warren Eu Hin Chai $ 493,115 $ 896,867 Capital Advance Michael A. Zahorik 30,307 30,307 Capital Advance SKH Media Sdn. Bhd. 56,231 56,036 Capital Advance Total Due to 579,653 983,210 The related parties’ relationship to the Company as follows: Name Relationship Michael A. Zahorik Former director Global Bizrewards Sdn. Bhd. Related by common director, Dato' Sri Eu Hin Chai SKH Media Sdn. Bhd. Related by common director, Dato' Sri Eu Hin Chai Dato Sri Warren Eu Hin Chai Director & Shareholder of the Company Koperasi Usahawan Related by common director, Dato' Sri Eu Hin Chai Global Patronage Sdn Bhd Related by common director, Dato' Sri Eu Hin Chai Yaya Media Sdn Bhd Related by common director, Dato' Sri Eu Hin Chai Hipland Realty Sdn. Bhd. Related by common director, Dato' Sri Eu Hin Chai The amounts due from or due to related parties’ were unsecured, non-interest bearing, and due on demand. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2020 | |
STOCKHOLDERS' EQUITY | |
6. STOCKHOLDERS' EQUITY | Equity –Common Stock The Company has 182,444,266 shares of common stock issued and outstanding as of March 31, 2020. |
COMMITMENTS, CONTINGENCIES, RIS
COMMITMENTS, CONTINGENCIES, RISKS AND UNCERTAINTIES | 3 Months Ended |
Mar. 31, 2020 | |
COMMITMENTS, CONTINGENCIES, RISKS AND UNCERTAINTIES | |
7. COMMITMENTS, CONTINGENCIES, RISKS AND UNCERTAINTIES | Operating Lease Commitments The Company entered into a property lease agreement for office space which started on December 1, 2014 and expired on October 31, 2015 for monthly payment of MYR10,000 (approximately $2,250). The lease was not renewed and the Company continues to rent the property on a month to month basis until June 30, 2018. The rent expenses were $nil and $nil for the three months ended March 31, 2020 and 2019, respectively. Concentration and Credit risk Cash deposits with banks are held in financial institutions in Malaysia, which are federally insured with deposit protection up to MYR250,000 (approximately $59,899). Accordingly, the Company has a concentration of credit risk related to the uninsured part of bank deposits. The Company has not experienced any losses in such accounts and believes it is not exposed to significant credit risk. The Company had no concentration in demand for its products. The Company depends on few supplier for its products. Accordingly, the Company has a concentration risk related to these suppliers. Failure to maintain existing relationships with the suppliers or to establish new relationships in the future could negatively affect the Company’s ability to obtain products sold to customers in a timely manner. If the Company is unable to obtain ample supply of products from existing suppliers or alternative sources of supply, the Company may be unable to satisfy the orders from its customers, which could materially and adversely affect revenues. Contingent Liability A former Director of the Company represents that the Company owes back compensation for services he believes he rendered to the Company and expenses he paid on behalf of the Company. The Company believes all balances owed to him have been settled in prior periods. The Company asserts that a claim has not be filed against the Company for potential damages; accordingly, the Company is unable to reasonably estimate a potential loss or liability in this matter including related legal costs. In the event that a claim is filed against the Company, the Company will provide further disclosure. |
TERM LOAN
TERM LOAN | 3 Months Ended |
Mar. 31, 2020 | |
TERM LOAN | |
8. TERM LOAN | On December 23, 2014, MYR2,300,000 (approximately $657,507) term loan was granted to the Company for the purchase of a four-story office with a repayment period of 240 months. The term loan was secured by the title deed for the said property and guaranteed by directors of the Company. The term loan is subject to an interest charges at 2.10% per annum below the Bank’s Base Lending Rate (“BLR”) with daily rests. The BLR is currently at 6.85% for March 31, 2020. On July 27, 2015, the Company made a drawdown of MYR2,300,000 (approx. $609,554) on the term loan. The repayment started effectively on September 1, 2015 with a fixed installment of MYR14,863.14 (approx. $3,561) for 240 installments. The outstanding balance of the term loan is $388,226, of which $22,875 is due within one year and classified as short term, and $365,351 is due after one year, and has classified as long term. Interest expenses were $6,111 and $6,111 for the three months ended March 31, 2020 and 2019, respectively. March 31, December 31, 2020 2019 Repayable within 1 year. $ 22,875 $ 22,533 Repayable within 2 year 23,962 23,287 Repayable within 3 year 25,085 24,385 Repayable within 4 year 26,238 25,508 Repayable within 5 year 27,443 26,680 Repayable after 5 year 262,623 336,064 Total Due from 388,226 458,457 |
LEASE
LEASE | 3 Months Ended |
Mar. 31, 2020 | |
LEASE | |
9. LEASE | The Company acquired a motor vehicle under a hire purchase agreement under capital lease. The lease arrangement require monthly payments of $910 for a period of 84 months. The Company has included the asset as motor vehicle as follows: March 31, December 31, 2020 2019 Motor vehicle $ 81,290 $ 89,502 Less: accumulated depreciation 10,838 6,750 Net 70,452 82,752 Interest expenses were $342 and $851 for the three months ended March 31, 2020 and 2019, respectively. The future minimum payments under the capitalized lease, together with the present minimum value of net minimum lease payments at the period ended March 31, 2020 and December 31, 2019 as follows: March 31, December 31, 2020 2019 Repayable within 1 year. $ 10,955 $ 10,917 Repayable within 2 year 10,955 10,917 Repayable within 3 year 10,955 10,917 Repayable within 4 year 10,955 10,917 Repayable within 5 year 10,955 10,917 Thereafter 6,639 9,345 Total 61,414 63,930 Less amount representing interest 8,051 8,851 Present value of lease payments 63,363 55,079 |
PROVISION FOR TAXES
PROVISION FOR TAXES | 3 Months Ended |
Mar. 31, 2020 | |
PROVISION FOR TAXES | |
10. PROVISION FOR TAXES | United States Umatrin Holding Ltd (“UMHL”) is established in the State of Delaware in United States and is subject to Delaware State and US Federal tax laws. UMHL has not recognized an income tax benefit for its operating losses based on uncertainties concerning its ability to generate taxable income in future periods. The tax benefit for the periods presented is offset by a valuation allowance established against deferred tax assets arising from the net operating losses and other temporary differences, the realization of which could not be considered more likely than not. Further, the benefit from utilization of NOL carry forwards could be subject to limitations due to material ownership changes that could occur in the Company as it continues to raise additional capital. Based on such limitations, the Company has significant NOLs for which realization of tax benefits is uncertain. In future periods, tax benefits and related deferred tax assets will be recognized when management considers realization of such amounts to be more likely than not. As of March 31, 2020, UMHL has accumulated net operating losses of $2,972,638 which carryovers as a deferred tax asset that begins to expire in 2025. The net losses before income taxes and its provision for income taxes as follows: For the three months ended March 31, March 31, 2020 2019 Net loss before income taxes (18,716 ) (18,716 ) Tax expenses (benefit) at the statutory tax rate (3,930 ) (3,930 ) Tax effect of: Valuation allowance 3,930 3,930 Income tax benefit - - The components of deferred tax assets and liabilities as follows: March 31, December 31, 2020 2019 Deferred tax asset Net operating losses carry forwards 505,307 501,377 Valuation allowance (505,307 ) (501,377 ) Deferred tax assets, net - - Malaysia The Company’s subsidiary, U Matrin Worldwide SDN BHD, is established in Malaysia and its income is subject to Malaysia tax laws. The income tax rate is 17% (2019 : 17%) for the first MYR500,000 ($123,934) taxable income and 24% (2019 : 24%) thereafter. The net income (losses) before income taxes and its provision for income taxes as follows: For the three months ended March 31, March 31, 2020 2019 Net profit/(loss) before income taxes 519,060 38,417 Tax expenses (benefit) at the statutory tax rate 124,574 6,530 Tax effects of: Utilization of deferred tax assets previously not recognized (124,574 ) - Expenses not currently deductible - (6,530 ) Income tax expense (benefit) - - The components of deferred tax assets and liabilities as follows: March 31, December 31, 2020 2019 Deferred tax asset Expenses not currently deductible 10,520 10,484 Valuation allowance - - Deferred tax assets, net 10,520 10,484 The Company has prepaid income tax of $19,524 and $13,348 as of March 31, 2020 and December 31, 2019, respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2020 | |
SUBSEQUENT EVENTS | |
11. SUBSEQUENT EVENTS | Management has evaluated subsequent events through the date the financial statements were issued. Based on our evaluation, no events have occurred which require adjustment or disclosure. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Basis of presentation | The accompanying consolidated financial statements and related notes have been prepared in accordance with generally accepted accounting principles in the United States ("US GAAP"). The accompanying consolidated financial statements include the accounts of the Company and its subsidiary. Significant inter-company transactions have been eliminated in consolidation. In accordance with ASC 805-50-45-5, for transactions between entities under common control, financial statements and financial information presented for prior periods have been be retroactively adjusted to furnish comparative information. The accompanying consolidated financial statements are presented retrospectively as though the share exchange agreement between the UMHL and Umatrin occurred at the beginning of the first period presented. |
Use of estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make 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 revenues and expenses during the reporting period. Actual results could differ from these estimates. |
Reclassification | Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported net income or losses. |
Functional and presentation currency | The functional currency of Umatrin is the currency of the primary economic environment in which the Company operates which is Malaysia Ringgit (“MYR”). Transactions in currencies other than the entity’s functional currency are recorded at the rates of exchange prevailing on the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing at the end of the reporting periods. Exchange differences arising on the settlement of monetary items and on translation of monetary items at period-end are included in income statement of the period. For the purpose of presenting these financial statements, the Company’s assets and liabilities are expressed in US$ at the exchange rate on the balance sheet date, stockholder’s equity accounts are translated at historical rates, and income and expense items are translated at the weighted average exchange rate during the period. The resulting translation adjustments are reported under accumulated other comprehensive income in the stockholder’s equity section of the balance sheets. Exchange rate used for the translation as follows: Period End Average US$ to MYR Rate Rate March 31, 2020 4.0783 4.0912 December 31, 2019 4.0925 4.1421 March 31, 2019 4.0783 4.0912 |
Fair value of financial instruments | The Company’s balance sheet includes financial instruments, including cash, term loan, accounts payable, accrued expenses, amounts due to related party and convertible notes payable to a related party. The carrying amounts of current assets and current liabilities approximate their fair value because of the relatively short period of time between the origination of these instruments and their expected realization. Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally observable inputs and not corroborated by market data. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of March 31, 2020. The respective carrying value of certain amounts on the balance sheet financial instruments approximated their fair values due to the short-term nature of these instruments. |
Related parties | The Company adopted ASC 850, Related Party Disclosures |
Risks and uncertainties | The Company’s operations are subject to significant risks and uncertainties including financial, operational and regulatory risks, including the potential risk of business failure. |
Commitments and contingencies | The Company adopted ASC 450-20, Loss Contingencies |
Cash and cash equivalents | The Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. The cash and cash equivalents for the period ended March 31, 2020 and December 31, 2019 were $142,247 and $171,678 respectively. |
Trade receivables | Trade receivables are carried at anticipated realizable value. Bad debts are written off in the period in which they are identified. An estimate is made for doubtful debts based on a review of all outstanding amounts at the balance sheet date. Bad debt expenses were $nil and $nil for the three months ended March 31, 2020 and 2019, respectively. At March 31, 2020 and December 31, 2019, the Company did not have any outstanding trade receivables. |
Inventories | Inventories, which are primarily comprised of finished goods for sale, are stated at the lower of cost or net realizable value, using the first-in first-out (FIFO) method. The Company evaluates the need for reserves associated with obsolete, slow-moving and non-salable inventory by reviewing net realizable values on a periodic basis. Only defects products could be return to our suppliers. |
Property and equipment | Property and equipment are stated at cost less accumulated depreciation and impairment losses, if any. Depreciation is calculated under the straight-line method to write off the cost of the assets over their estimated useful lives. Computer and software 5 years Furniture and fittings 10 years Office equipment 10 years Renovation and improvements 10 years Motor vehicle 5 years Building 40 years Land 95 years An item of equipment is derecognized upon disposal or when no future economic benefits are expected from its use. Any gain or loss arising from de-recognition of asset is recognized in profit or loss. Expenditures for repairs and maintenance, which do not improve or extend the expected useful lives of the assets, are expensed as incurred while major replacements and improvements are capitalized. |
Impairment of Long-lived Assets | In accordance with ASC Topic 360, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. The Company recorded no impairment charge for the three months ended March 31, 2020 and 2019. |
Revenue recognition | The Company adopted ASU 201409, Topic 606 on January 1, 2018, using the modified retrospective method. ASC 606 requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identify the contract 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 occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation. The adoption of Topic 606 has no impact on revenue amounts recorded on the Company’s interim financial statements. The Company generally recognizes product sales revenue when the performance obligation have been satisfied pursuant to Malaysia law, including such factors as contract existed with the customer, delivery and acceptance of products by customer has occurred, the sales price is fixed or determinable and allocated to the products sold, sales and value-added tax laws have been complied with, and collectability is reasonably assured. The Company estimates potential returns and records such estimates against its gross revenue to arrive at its reported net sales revenue. |
Commission | The Company expenses commission costs as incurred and includes it in selling expenses. The Company expenses commission costs as incurred and includes it in selling expenses. The Company grants commission to dealers and promoters to promote and sell the products. Amount of commission is based upon agreed value between the Company and the dealers and promoters as there is no fix basis for such amount. |
Advertising | The Company expenses advertising costs as incurred and includes it in selling expenses. The Company recorded $nil and $nil for advertising and promotions expenses during the three months ended March 31, 2020 and 2019, respectively. |
Income taxes and valuation allowance | The Company follows ASC 740, Income Taxes A tax benefit from an uncertain tax position may be recognized only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities. The determination is based on the technical merits of the position and presumes that the relevant taxing authority that has full knowledge of all relevant information will examine each uncertain tax position. Although the Company believes the estimates are reasonable, no assurance can be given that the final outcome of these matters will not be different than what is reflected in the historical income tax provisions and accruals. |
Comprehensive income (loss) | The Company follows the provisions of the Financial Accounting Standards Board (the “FASB”) ASC 220 Reporting Comprehensive Income |
Segment information | The Company adopted ASC-280, Disclosures about Segments of an Enterprise and Related Information |
Recent accounting pronouncements | In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which revises the accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. The ASU also amends certain disclosure requirements associated with the fair value of financial instruments. The new guidance requires the fair value measurement of investments in equity securities and other ownership interests in an entity, including investments in partnerships, unincorporated joint ventures and limited liability companies (collectively, equity securities) that do not result in consolidation and are not accounted for under the equity method. Entities will need to measure these investments and recognize changes in fair value in net income. Entities will no longer be able to recognize unrealized holding gains and losses on equity securities they classify under current guidance as available for sale in other comprehensive income (OCI). They also will no longer be able to use the cost method of accounting for equity securities that do not have readily determinable fair values. Instead, for these types of equity investments that do not otherwise qualify for the net asset value practical expedient, entities will be permitted to elect a practicability exception and measure the investment at cost less impairment plus or minus observable price changes (in orderly transactions). The ASU also establishes an incremental recognition and disclosure requirement related to the presentation of fair value changes of financial liabilities for which the fair value option (FVO) has been elected. Under this guidance, an entity would be required to separately present in OCI the portion of the total fair value change attributable to instrument-specific credit risk as opposed to reflecting the entire amount in earnings. For derivative liabilities for which the FVO has been elected, however, any changes in fair value attributable to instrument-specific credit risk would continue to be presented in net income, which is consistent with current guidance. The standard is effective beginning January 1, 2018 via a cumulative-effect adjustment to beginning retained earnings, except for guidance relative to equity securities without readily determinable fair values which is applied prospectively. The adoption of this ASU did not have any impact on the Company’s consolidated results of operations and financial condition. In February 2016, the FASB issued ASU No. 2016-02, Leases, replacing existing lease accounting guidance. The new standard introduces a lessee model that would require entities to recognize assets and liabilities for most leases, but recognize expenses on their income statements in a manner similar to current accounting. The ASU does not make fundamental changes to existing lessor accounting. However, it modifies what qualifies as a sales-type and direct financing lease and related accounting and aligns a number of the underlying principles with those of the new revenue standard, ASU No. 2014-09, such as evaluating how collectability should be considered and determining when profit can be recognized. The guidance eliminates existing real estate-specific provisions and requires expanded qualitative and quantitative disclosures. The standard requires modified retrospective transition by which it is applied at the beginning of the earliest comparative period presented in the year of adoption. The ASU is effective January 1, 2019. The Company adopted the new standard on January 1, 2019 using the modified retrospective method of adoption. The transition method expedient which allows entities to initially apply the requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. As a result of electing this transition method, prior periods have not been restated. The adoption of this ASU did not have any impact on the Company’s consolidated results of operations and financial condition as the Company did not have any leases at the time of adoption. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Exchange rate used for the translation as follows | Period End Average US$ to MYR Rate Rate March 31, 2020 4.0783 4.0912 December 31, 2019 4.0925 4.1421 March 31, 2019 4.0783 4.0912 |
Schedule of estimated useful lives | Computer and software 5 years Furniture and fittings 10 years Office equipment 10 years Renovation and improvements 10 years Motor vehicle 5 years Building 40 years Land 95 years |
LAND, PROPERTY EQUIPMENT (Table
LAND, PROPERTY EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
LAND, PROPERTY EQUIPMENT (Tables) | |
Land, Property & Equipment | March 31, December 31, 2020 2019 Computer and software $ 24,520 $ 21,795 Furniture and fittings 29,912 29,808 Office equipment 43,649 43,498 Renovations and improvements 352,160 350,937 Motor vehicle 81,289 81,007 Building 914,024 910,848 Land 224,262 223,483 Total 1,669,816 1,661,376 Less: accumulated depreciation (796,284 ) (772,091 ) Net $ 873,532 $ 889,285 |
RELATED PARTIES TRANSACTIONS (T
RELATED PARTIES TRANSACTIONS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
RELATED PARTIES TRANSACTIONS | |
Due from related parties | March 31, December 31, 2020 2019 Purpose Global Bizrewards Sdn. Bhd. $ 282,149 $ 274,413 Advance Koperasi Usahawan 105,749 105,382 Advance Global Patronage Sdn Bhd 14,171 14,121 Advance Yaya Media Sdn Bhd 266 266 Advance Hipland Realty Sdn. Bhd. 4,414 4,398 Advance Total Due from 406,749 398,580 |
Due to related parties | March 31, December 31, 2020 2019 Purpose Dato Sri Warren Eu Hin Chai $ 493,115 $ 896,867 Capital Advance Michael A. Zahorik 30,307 30,307 Capital Advance SKH Media Sdn. Bhd. 56,231 56,036 Capital Advance Total Due to 579,653 983,210 |
Schedule of related party relationship | Name Relationship Michael A. Zahorik Former director Global Bizrewards Sdn. Bhd. Related by common director, Dato' Sri Eu Hin Chai SKH Media Sdn. Bhd. Related by common director, Dato' Sri Eu Hin Chai Dato Sri Warren Eu Hin Chai Director & Shareholder of the Company Koperasi Usahawan Related by common director, Dato' Sri Eu Hin Chai Global Patronage Sdn Bhd Related by common director, Dato' Sri Eu Hin Chai Yaya Media Sdn Bhd Related by common director, Dato' Sri Eu Hin Chai Hipland Realty Sdn. Bhd. Related by common director, Dato' Sri Eu Hin Chai |
TERM LOAN (Tables)
TERM LOAN (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
TERM LOAN | |
Schedule of Interest expense | March 31, December 31, 2020 2019 Repayable within 1 year. $ 22,875 $ 22,533 Repayable within 2 year 23,962 23,287 Repayable within 3 year 25,085 24,385 Repayable within 4 year 26,238 25,508 Repayable within 5 year 27,443 26,680 Repayable after 5 year 262,623 336,064 Total Due from 388,226 458,457 |
LEASE (Tables)
LEASE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
LEASE | |
Schedule of capital leased asssets | March 31, December 31, 2020 2019 Motor vehicle $ 81,290 $ 89,502 Less: accumulated depreciation 10,838 6,750 Net 70,452 82,752 |
Schedule of future minimum lease payments for capital leases | March 31, December 31, 2020 2019 Repayable within 1 year. $ 10,955 $ 10,917 Repayable within 2 year 10,955 10,917 Repayable within 3 year 10,955 10,917 Repayable within 4 year 10,955 10,917 Repayable within 5 year 10,955 10,917 Thereafter 6,639 9,345 Total 61,414 63,930 Less amount representing interest 8,051 8,851 Present value of lease payments 63,363 55,079 |
PROVISION FOR TAXES (Tables)
PROVISION FOR TAXES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
United States [Member] | |
Schedule of provision for income taxes | For the three months ended March 31, March 31, 2020 2019 Net loss before income taxes (18,716 ) (18,716 ) Tax expenses (benefit) at the statutory tax rate (3,930 ) (3,930 ) Tax effect of: Valuation allowance 3,930 3,930 Income tax benefit - - |
Schedule of Deferred Tax Assets and Liabilities | March 31, December 31, 2020 2019 Deferred tax asset Net operating losses carry forwards 505,307 501,377 Valuation allowance (505,307 ) (501,377 ) Deferred tax assets, net - - |
Malaysia [Member] | |
Schedule of provision for income taxes | For the three months ended March 31, March 31, 2020 2019 Net profit/(loss) before income taxes 519,060 38,417 Tax expenses (benefit) at the statutory tax rate 124,574 6,530 Tax effects of: Utilization of deferred tax assets previously not recognized (124,574 ) - Expenses not currently deductible - (6,530 ) Income tax expense (benefit) - - |
Schedule of Deferred Tax Assets and Liabilities | March 31, December 31, 2020 2019 Deferred tax asset Expenses not currently deductible 10,520 10,484 Valuation allowance - - Deferred tax assets, net 10,520 10,484 |
ORGANIZATION (Details Narrative
ORGANIZATION (Details Narrative) | 3 Months Ended |
Mar. 31, 2020shares | |
Dato' Sri Eu Hin Chai [Member] | |
Equity ownership, percentage | 76.00% |
Dato' Sri Eu Hin Chai [Member] | Business combination [Member] | |
Equity ownership, percentage | 61.25% |
Dato' Liew Kok Hong [Member] | Business combination [Member] | |
Equity ownership, percentage | 38.75% |
U Matrin Worldwide SDN. BHD [Member] | |
Equity ownership, percentage | 80.00% |
Business acquisition equity interest, shares issued | 100,000,000 |
SIGNIFICANT ACCONTING POLICIES
SIGNIFICANT ACCONTING POLICIES (Details) - US$ to MYR [Member] | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Foreign currency translation Period End Rate | 4.0783 | 4.0925 | 4.0783 |
Foreign currency translation average exchange rate | 4.0912 | 4.1421 | 4.0912 |
SIGNIFICANT ACCONTING POLICIE_2
SIGNIFICANT ACCONTING POLICIES (Details 1) | 3 Months Ended |
Mar. 31, 2020 | |
Computer and software [Member] | |
Estimated useful lives | 5 years |
Furniture and fittings [Member] | |
Estimated useful lives | 10 years |
Office equipment [Member] | |
Estimated useful lives | 10 years |
Renovation and improvements [Member] | |
Estimated useful lives | 10 years |
Motor Vehicle [Member] | |
Estimated useful lives | 5 years |
Building [Member] | |
Estimated useful lives | 40 years |
Land [Member] | |
Estimated useful lives | 95 years |
SIGNIFICANT ACCONTING POLICIE_3
SIGNIFICANT ACCONTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
SIGNIFICANT ACCOUNTING POLICIES | |||
Cash and cash equivalents | $ 142,247 | $ 171,678 | |
Bad debt expense | 0 | $ 0 | |
Advertising and promotions expenses | $ 0 | $ 0 |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
GOING CONCERN | |||
Net profit | $ 500,344 | $ 19,701 | |
Accuulated deficit | $ (2,972,638) | $ (3,369,169) |
LAND, PROPERTY EQUIPMENT (Detai
LAND, PROPERTY EQUIPMENT (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Land, property and equipment, Gross | $ 1,669,816 | $ 1,661,376 |
Less: accumulated depreciation | (796,284) | (772,091) |
Land, property and equipment, net | 873,532 | 889,285 |
Computer and software [Member] | ||
Land, property and equipment, Gross | 24,520 | 21,795 |
Furniture and fittings [Member] | ||
Land, property and equipment, Gross | 29,912 | 29,808 |
Office equipment [Member] | ||
Land, property and equipment, Gross | 43,649 | 43,498 |
Renovation and improvements [Member] | ||
Land, property and equipment, Gross | 352,160 | 350,937 |
Motor Vehicle [Member] | ||
Land, property and equipment, Gross | 81,289 | 81,007 |
Building [Member] | ||
Land, property and equipment, Gross | 914,024 | 910,848 |
Land [Member] | ||
Land, property and equipment, Gross | $ 224,262 | $ 223,483 |
LAND, PROPERTY EQUIPMENT (Det_2
LAND, PROPERTY EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
LAND, PROPERTY EQUIPMENT | ||
Depreciation expense | $ 21,448 | $ 18,098 |
RELATED PARTIES TRANSACTIONS (D
RELATED PARTIES TRANSACTIONS (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Total Due from | $ 406,749 | $ 398,580 |
Global Bizrewards Sdn. Bhd. [Member] | ||
Total Due from | 282,149 | 274,413 |
Koperasi Usahawan [Member] | ||
Total Due from | 105,749 | 105,382 |
Global Patronage Sdn Bhd [Member] | ||
Total Due from | 14,171 | 14,121 |
Yaya Media Sdn Bhd [Member] | ||
Total Due from | 266 | 266 |
Hipland Realty Sdn. Bhd. [Member] | ||
Total Due from | $ 4,414 | $ 4,398 |
RELATED PARTIES TRANSACTIONS _2
RELATED PARTIES TRANSACTIONS (Details 1) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Total Due to | $ 579,653 | $ 983,210 |
Dato Sri Warren Eu Hin Chai [Member] | ||
Total Due to | 493,115 | 896,867 |
Michael A. Zahorik [Member] | ||
Total Due to | 30,307 | 30,307 |
SKH Media Sdn. Bhd. [Member] | ||
Total Due to | $ 56,231 | $ 56,036 |
STOCKHOLDERS EQUITY (Details Na
STOCKHOLDERS EQUITY (Details Narrative) - shares | Mar. 31, 2020 | Dec. 31, 2019 |
STOCKHOLDERS EQUITY (Details Narrative) | ||
Common stock, Issued | 182,444,266 | 182,444,266 |
Common stock, Outstanding | 182,444,266 | 182,444,266 |
COMMITMENTS CONTINGENCIES RISKS
COMMITMENTS CONTINGENCIES RISKS AND UNCERTAINTIES (Details Narrative) - USD ($) | 3 Months Ended | 11 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Oct. 31, 2015 | |
Operating lease rent expenses periodic payments | $ 2,250 | ||
Frequency of periodic payments | Monthly | ||
Operating lease expiration date | Oct. 31, 2015 | ||
Operating lease rental expense | $ 0 | $ 0 | |
Malaysia [Member] | |||
Concentration and Credit risk federally insured, Amount | $ 59,899 |
TERM LOAN (Details)
TERM LOAN (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
TERM LOAN | ||
Payable within 1 year | $ 22,875 | $ 22,533 |
Payable within 2 year | 23,962 | 23,287 |
Payable within 3 year | 25,085 | 24,385 |
Payable within 4 year | 26,238 | 25,508 |
Payable within 5 year | 27,443 | 26,680 |
Thereafter | 262,623 | 336,064 |
Total | $ 388,226 | $ 458,457 |
TERM LOAN (Details Narrative)
TERM LOAN (Details Narrative) | 1 Months Ended | 3 Months Ended | |||
Jul. 27, 2015USD ($)integer | Dec. 23, 2014USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
TERM LOAN | |||||
Period of term loan | 240 months | ||||
Term loan, maximum borrowing capacity | $ 0 | $ 657,507 | $ 0 | ||
Amount of term loan borrowed | 609,554 | ||||
Description for interest rate | The term loan is subject to an interest charges at 2.10% per annum below the Bank's Base Lending Rate ("BLR") with daily rests | ||||
Term loan, periodic payments | $ 3,561 | ||||
Number of installments | integer | 240 | ||||
Base Lending Rate | 6.85% | ||||
Term loan outstanding | $ 388,226 | ||||
Term loan payable-current portion | 22,875 | $ 22,533 | |||
Term loan payable-long term portion | 365,351 | ||||
Interest expenses | $ 6,111 | $ 6,111 |
LEASE (Details)
LEASE (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
LEASE | ||
Motor vehicle | $ 81,290 | $ 89,502 |
Less: accumulated depreciation | 10,838 | 6,750 |
Net | $ 70,452 | $ 82,752 |
LEASE (Details 1)
LEASE (Details 1) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
LEASE | ||
Repayable within 1 year | $ 10,955 | $ 10,917 |
Repayable within 2 year | 10,955 | 10,917 |
Repayable within 3 year | 10,955 | 10,917 |
Repayable within 4 year | 10,955 | 10,917 |
Repayable within 5 year | 10,955 | 10,917 |
Thereafter | 6,639 | 9,345 |
Total | 61,414 | 63,930 |
Less amounts representing interest | 8,051 | 8,851 |
Present value of lease payments | $ 63,363 | $ 55,079 |
LEASE (Details Narrative)
LEASE (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest expenses | $ 6,111 | $ 6,111 |
Motor Vehicle [Member] | ||
Lease arrangement, monthly payments | $ 910 | |
Period of term loan | 84 months | |
Interest expenses | $ 342 | $ 851 |
PROVISION FOR TAXES (Details)
PROVISION FOR TAXES (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net loss before income taxes | $ 500,344 | $ 19,701 |
Income tax benefit | 0 | 0 |
United States [Member] | ||
Net loss before income taxes | (18,716) | (18,716) |
Tax expenses (benefit) at the statutory tax rate | (3,930) | (3,930) |
Valuation allowance | 3,930 | 3,930 |
Income tax benefit | $ 0 | $ 0 |
PROVISION FOR TAXES (Details 1)
PROVISION FOR TAXES (Details 1) - United States [Member] - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Deferred tax asset | ||
Net operating losses carryforwards | $ 505,307 | $ 501,377 |
Valuation allowance | (505,307) | (501,377) |
Deferred tax assets, net | $ 0 | $ 0 |
PROVISION FOR TAXES (Details 2)
PROVISION FOR TAXES (Details 2) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net profit/(loss) before income taxes | $ 500,344 | $ 19,701 |
Income tax expense (benefit) | 0 | 0 |
Malaysia [Member] | ||
Net profit/(loss) before income taxes | 519,060 | 38,417 |
Tax expense (benefit) at the statutory tax rate | 124,574 | 6,530 |
Utilization of deferred tax assets previously not recognized | (124,574) | 0 |
Expenses not currently deductible | 0 | (6,530) |
Income tax expense (benefit) | $ 0 | $ 0 |
PROVISION FOR TAXES (Details 3)
PROVISION FOR TAXES (Details 3) - Malaysia [Member] - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Deferred tax asset | ||
Expenses not currently deductible | $ 10,520 | $ 10,484 |
Valuation allowance | 0 | 0 |
Deferred tax assets, net | $ 10,520 | $ 10,484 |
PROVISION FOR TAXES (Details Na
PROVISION FOR TAXES (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
PROVISION FOR TAXES | ||
Net operating loss carry forwards expire period | 2025 | |
Prepaid income tax | $ 19,524 | $ 13,348 |
Net operating losses | $ 2,972,638 | |
Income tax rate description | The income tax rate is 17% (2019 : 17%) for the first MYR500,000 ($123,934) taxable income and 24% (2019 : 24%) thereafter. |