Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 31, 2021 | Jun. 30, 2020 | |
Details | |||
Registrant CIK | 0001417664 | ||
Fiscal Year End | --12-31 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 000-53537 | ||
Entity Registrant Name | VALUE EXCHANGE INTERNATIONAL, INC. | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Tax Identification Number | 20-2819367 | ||
Entity Address, Address Line One | Unit 02-03, 6/F. Block B | ||
Entity Address, Address Line Two | Shatin Industrial Centre | ||
Entity Address, Address Line Three | 5-7 Yuen Shun Circuit | ||
Entity Address, City or Town | Shatin | ||
Entity Address, Postal Zip Code | N.T. | ||
Entity Address, Country | HK | ||
Entity Address, Address Description | Address of Principal Executive Offices | ||
Country Region | 852 | ||
City Area Code | 295 | ||
Local Phone Number | 0 4288 | ||
Phone Fax Number Description | Registrant’s telephone number, including area code | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 712,803 | ||
Entity Common Stock, Shares Outstanding | 29,656,130 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS | ||
Cash | $ 523,337 | $ 234,089 |
Accounts receivable, less allowance for doubtful accounts | 599,436 | 773,560 |
Amounts due from related parties | 1,343,466 | 534,806 |
Other receivables and prepayments | 414,342 | 257,173 |
Inventories | 238,147 | 219,592 |
Total current assets | 3,118,728 | 2,019,220 |
NON-CURRENT ASSETS | ||
Plant and equipment, net | 357,021 | 353,826 |
Deferred tax assets | 71,681 | 56,045 |
Goodwill | 206,812 | 206,812 |
Operating lease right-of-use assets, net | 585,057 | 824,230 |
Intangible assets | 0 | 0 |
Total non-current assets | 1,220,571 | 1,440,913 |
Total assets | 4,339,299 | 3,460,133 |
CURRENT LIABILITIES | ||
Accounts payable | 1,038,518 | 685,150 |
Other payables and accrued liabilities | 831,817 | 553,259 |
Deferred income | 254,937 | 255,749 |
Amounts due to related parties | 263,063 | 32,909 |
Operating lease liabilities, current | 303,687 | 356,960 |
Current portion of long term bank loan and short term bank loan | 38,874 | 13,686 |
Total current liabilities | 2,730,896 | 1,897,713 |
NON-CURRENT LIABILITIES | ||
Long term bank loan | 62,949 | 0 |
Operating lease liabilities, non-current | 277,111 | 478,641 |
Total non-current liabilities | 340,060 | 478,641 |
Total liabilities | 3,070,956 | 2,376,354 |
SHAREHOLDERS' EQUITY | ||
Preferred Stock, Value | 0 | 0 |
Common Stock, Value | 297 | 297 |
Additional paid-in capital | 690,589 | 690,589 |
Statutory reserves | 11,835 | 11,925 |
Retained earnings | 414,225 | 308,813 |
Accumulated other comprehensive loss | 97,944 | 60,742 |
Stockholders' Equity Attributable to Parent | 1,214,890 | 1,072,366 |
Non-controlling interest | 53,453 | 11,413 |
Total shareholders' equity | 1,268,343 | 1,083,779 |
Total liabilities and shareholders' equity | $ 4,339,299 | $ 3,460,133 |
CONSOLIDATED BALANCE SHEETS - P
CONSOLIDATED BALANCE SHEETS - Parenthetical - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Details | ||
Preferred Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Preferred Stock, Par or Stated Value Per Share | $ 0.00001 | $ 0.00001 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.00001 | $ 0.00001 |
Common Stock, Shares, Issued | 29,656,130 | 29,656,130 |
Common Stock, Shares, Outstanding | 29,656,130 | 29,656,130 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
NET REVENUES | ||
Service income | $ 20,551,471 | $ 8,309,129 |
COST OF SERVICES | ||
Cost of service income | (18,497,409) | (6,542,407) |
GROSS PROFIT | 2,054,062 | 1,766,722 |
OPERATING EXPENSES: | ||
General and administrative expenses | (1,869,455) | (1,894,419) |
Foreign exchange (loss) gain | (58,281) | 8,384 |
TOTAL OPERATING EXPENSES | (1,927,736) | (1,886,035) |
PROFIT (LOSS) FROM OPERATIONS | 126,326 | (119,313) |
OTHER INCOME (EXPENSES): | ||
Interest income | 5,517 | 505 |
Interest expense | (15,162) | (10,410) |
Finance cost | (15,502) | (11,371) |
VAT refund | 111,559 | 20,508 |
Management fee income | 154,315 | 154,870 |
Redundancy cost | (285,601) | 0 |
Others | 44,779 | 30,062 |
Total other income (expenses), net | (95) | 184,164 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 126,231 | 64,851 |
INCOME TAXES EXPENSES | (20,727) | (11,416) |
NET INCOME | 105,504 | 53,435 |
OTHER COMPREHENSIVE INCOME: | ||
Foreign currency translation adjustment | 37,202 | 78,553 |
COMPREHENSIVE INCOME | 142,706 | 131,988 |
Equity holders of the Company | 142,614 | 154,727 |
Non-controlling interests | $ 92 | $ (22,739) |
Net profit per share, basic and diluted | $ 0 | $ 0 |
Weighted average number of shares outstanding | 29,656,130 | 29,656,130 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) | Common Stock | Additional Paid-in Capital | Retained Earnings | Statutory reserves | Noncontrolling Interest | Accumulated other comprehensive income | Total |
Equity Balance, Starting at Dec. 31, 2018 | $ 297 | $ 690,589 | $ 232,639 | $ 12,476 | $ 0 | $ (17,811) | $ 918,190 |
Shares Outstanding, Starting at Dec. 31, 2018 | 29,656,130 | ||||||
Change in noncontrolling Interests | $ 0 | 0 | 0 | 0 | 34,851 | 0 | 34,851 |
Foreign currency translation adjustment | 0 | 0 | 0 | (551) | (699) | 78,553 | 77,303 |
Net Income (Loss) | $ 0 | 0 | 76,174 | 0 | (22,739) | 0 | 53,435 |
Shares Outstanding, Ending at Dec. 31, 2019 | 29,656,130 | ||||||
Equity Balance, Ending at Dec. 31, 2019 | $ 297 | 690,589 | 308,813 | 11,925 | 11,413 | 60,742 | 1,083,779 |
Change in noncontrolling Interests | 0 | 0 | 0 | 0 | 25,497 | 0 | 25,497 |
Foreign currency translation adjustment | 0 | 0 | 0 | (90) | 16,451 | 37,202 | 53,563 |
Net Income (Loss) | $ 0 | 0 | 105,412 | 0 | 92 | 0 | 105,504 |
Shares Outstanding, Ending at Dec. 31, 2020 | 29,656,130 | ||||||
Equity Balance, Ending at Dec. 31, 2020 | $ 297 | $ 690,589 | $ 414,225 | $ 11,835 | $ 53,453 | $ 97,944 | $ 1,268,343 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 105,504 | $ 53,435 |
Adjustments to reconcile net income to cash provided by (used in) operating activities: | ||
Depreciation | 193,390 | 156,563 |
Amortization | 361,796 | 66,880 |
Interest income | (5,517) | (505) |
Loss on disposal of plant and equipment | 3,213 | 800 |
Interest expenses | 15,162 | 10,410 |
Finance costs on Right-of-use assets | 15,502 | 0 |
Deferred income taxes | (15,636) | (35,682) |
Changes in operating assets and liabilities | ||
Accounts receivable | 174,124 | (198,520) |
Other receivables, deposit and prepayments | (157,169) | (108,390) |
Amounts due from related parties | (808,660) | 72,320 |
Inventories | (18,555) | (78,988) |
Accounts payable | 353,368 | (19,758) |
Other payables and accrued liabilities | 278,558 | (84,305) |
Deferred income | (812) | (315,792) |
Amounts due to related parties | 230,154 | (24,232) |
Net cash provided by (used in) operating activities | 724,422 | (505,764) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Interest received | 5,517 | 505 |
Purchase of plant and equipment | (150,862) | (89,746) |
Net cash used in investing activities | (145,345) | (89,241) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Interest paid | (15,162) | (8,039) |
Principal payments on finance leases | (410,020) | 11,371 |
Proceeds from non-controlling interests | 25,497 | 34,851 |
Proceeds from bank loan | 120,238 | 13,686 |
Repayment of loan from a director | 0 | (32,051) |
Repayment of bank loan | (32,102) | (1,926) |
Net cash (used in) provided by financing activities | (311,549) | 17,892 |
EFFECT OF EXCHANGE RATE ON CASH | 21,720 | 82,133 |
INCREASE (DECREASE) IN CASH | 289,248 | (494,980) |
Cash and Cash Equivalents, at Carrying Value, Beginning Balance | 234,089 | 729,069 |
Cash and Cash Equivalents, at Carrying Value, Ending Balance | 523,337 | 234,089 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash paid for income taxes | $ (7,468) | $ (33,620) |
Note 1 - Organization and descr
Note 1 - Organization and description of business | 12 Months Ended |
Dec. 31, 2020 | |
Notes | |
Note 1 - Organization and description of business | Note 1 - Organization and description of business Value Exchange International, Inc. (VEII or the Company), formerly known as Sino Payments Inc., was incorporated in the State of Nevada on June 26, 2007. The Companys principal business is to provide credit and debit card processing services to multinational retailers in Asia and the systems development and information technology business of Value Exchange Intl (China) Limited (collectively, the IT Business). On January 1, 2014, VEII received 100% of the issued and outstanding shares of in Value Exchange Intl (China) Limited (VEI CHN) in exchange for i) newly issued 12,000,000 shares of VEIIs common stock to the majority stockholder of VEI CHN; and ii) 166,667 shares of our common stock held by VEI CHN to be transferred to the majority stockholder of VEI CHN (Share Exchange). This transaction resulted in the owners of VEI CHN obtaining a majority voting interest in VEII. The merger of VEI CHN into VEII, which has nominal net assets, resulted in VEI CHN having control of the combined entities. For financial reporting purposes, the transaction represents a "reverse merger" rather than a business combination and VEII is deemed to be the accounting acquiree in the transaction. The transaction is being accounted for as a reverse merger and recapitalization. VEII is the legal acquirer but accounting acquiree for financial reporting purposes and VEI CHN is the acquired company but accounting acquirer. Consequently, the assets and liabilities and the operations that will be reflected in the historical financial statements prior to the transaction will be those of VEI CHN and will be recorded at the historical cost basis of VEI CHN, and no goodwill will be recognized in this transaction. The consolidated financial statements after completion of the transaction will include the assets and liabilities of VEI CHN and VEII, and the historical operations of VEII and the combined operations of VEI CHN from the initial closing date of the transaction. VEI CHN, formerly known as TAP Investments Group Limited, was incorporated on November 16, 2001 under the laws of Hong Kong SAR and changed its name to Value Exchange Intl (China) Limited on May 13, 2013. VEI CHN is an investment holding company. The Company provides IT Business services and solutions to the retail sector through three operating subsidiaries located in Hong Kong SAR and the Peoples Republic of China (PRC). On September 2, 2008 VEI CHN established its first operating subsidiary, Value Exchange Intl (Shanghai) Limited (VEI SHG) in Shanghai, PRC, under the laws of the PRC. VEI SHG engages in software development, trading and servicing of computer hardware and software activities. On September 25, 2008, VEI CHN acquired its second operating subsidiary, TAP Services (HK) Limited in Hong Kong which subsequently changed its name to Value Exchange Intl (Hong Kong) Limited (VEI HKG) on May 14, 2013. VEI HKG engages in software development, trading and servicing of computer hardware and software activities. On May 14, 2013, VEI CHN further established another operating subsidiary, Ke Dao Solutions Limited in Hong Kong, which subsequently changed its name to Cucumbuy.com Limited (CUCUMBUY) on May 26, 2017. CUCUMBUY conducts consultancy services for IT Services and Solutions activities. On May 21, 2018, VEI CHN disposed of CUCUMBUY with consideration of HK$1. In January 2017, VEI CHN acquired 100% of the capital stock of TapServices, Inc., a corporation organized under the laws of the Republic of the Philippines (the TSI). TSI engages in software development, trading and servicing of computer hardware and software activities in Philippines. TSI is operated as a subsidiary of VEI CHN. Prior to and continuing after the acquisition, TSI relied on VEI CHN for provision of IT services. In January 2019, VEI SHG established an operating subsidiary, Value Exchange Intl (Hunan) Limited (VEI HN) in Hunan, PRC, under the laws of the PRC. VEI HN engages in IT service call-center activities. In February 2020, VEI SHG established an operating subsidiary, Shanghai Zhaonan Hengan Information Technology Co., Limited (SZH) in Shanghai, PRC, under the laws of the PRC. SZH engages in IT services. As of December 31, 2020, the Company have four wholly owned subsidiaries. |
Note 2 - Accounting policies
Note 2 - Accounting policies | 12 Months Ended |
Dec. 31, 2020 | |
Notes | |
Note 2 - Accounting policies | Note 2 - Accounting policies Basis of presentation and principle of consolidation The consolidated financial statements include all of the assets, liabilities, revenues, expenses and cash flows of entities in which the Company has a controlling interest (subsidiaries). Intercompany accounts and transactions between consolidated companies have been eliminated in consolidation. Consolidated financial statements prepared following a reverse acquisition are issued under the name of the legal parent (accounting acquiree) (i.e. VEII) but as a continuation of the financial statements of the legal subsidiary (accounting acquirer) (i.e VEI CHN), with one adjustment, which is to retroactively adjust the accounting acquirers legal capital to reflect the legal capital of the accounting acquiree. That adjustment is required to reflect the capital of the legal parent (the accounting acquiree). Comparative information presented in those consolidated financial statements also is retroactively adjusted to reflect the legal capital of the legal parent (accounting acquiree). The consolidated financial statements include the accounts of Value Exchange International, Inc., and the following subsidiaries: 1. 2. 3. 4. 5. 6. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP), and include the financial statements of the Company and all its wholly-owned subsidiaries that require consolidation. All material intercompany transactions and balances have been eliminated in the consolidation. The following entities were consolidated as of December 31, 2020: Ownership percentage Place of incorporation 2020 2019 Value Exchange International, Inc. USA Parent Company Parent Company Value Exchange Intl (China) Limited Hong Kong 100% 100% Value Exchange Intl (Shanghai) Limited PRC 100% 100% Value Exchange Intl (Hong Kong) Limited Hong Kong 100% 100% Koinon Technology Services, Inc. US Virgin Islands, US - 51% TapServices, Inc. Philippines 100% 100% Value Exchange Intl (Hunan) Limited PRC 51% 51% Shanghai Zhaonan Hengan Information Technology Co., Limited PRC 51% - Value Exchange International, Inc. - a Nevada Company 100% Value Exchange Intl (China) Limited - a Hong Kong Company 100% 100% 100% Value Exchange Intl (Shanghai) Limited - a PRC Company Value Exchange Intl (Hong Kong) Limited - a Hong Kong Company TapServices, Inc. - a Philippines Company 51% 51% Value Exchange Intl (Hunan) Limited - a PRC Company Shanghai Zhaonan Hengan Information Technology Co., Limited - a PRC Company Use of estimates Preparing consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions affecting 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. The more significant areas requiring using managements estimates and assumptions relate to the collectability of its receivables, the fair value and accounting treatment of financial instruments, the valuation of long-lived assets and valuation of deferred tax liabilities. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results may differ significantly from these estimates. In addition, different assumptions or circumstances could reasonably be expected to yield different results. Cash and cash equivalents For purposes of the cash flow statements, the Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. Cash includes cash on hand and demand deposits in accounts maintained with financial institutions or state owned banks within the PRC and Hong Kong. Accounts receivable and other receivables Receivables include trade accounts due from customers and other receivables such as cash advances to employees, utility deposits paid and advance to suppliers. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentration, customer credit worthiness, current economic trends and changes in customer payment patterns to determine if the allowance for doubtful accounts is adequate. An estimate for doubtful accounts is made when collection of the full amount is no longer probable. Delinquent account balances are written-off after management has determined that the likelihood of collection is not probable and known bad debts are written off against the allowance for doubtful accounts when identified. As of December 31, 2020 and 2019, there was no allowance for uncollectible accounts receivable, respectively. Management believes that the remaining accounts receivable are collectable. Plant and equipment Plant and equipment is stated at cost less accumulated depreciation and accumulated impairment losses, if any. Expenditures for maintenance and repairs are charged to earnings as incurred. Major additions are capitalized. When assets are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation of plant and equipment is provided using the straight-line method for substantially all assets with estimated lives as follows: Estimated Useful Life Leasehold improvements Lesser of lease term or the estimated useful lives of 5 years Computer equipment 5 years Computer software 5 years Office furniture and equipment 5 years Motor Vehicle 3 years Building 5 years Impairment of long-lived assets The Company evaluates long lived assets, including equipment, for impairment at least once per year and whenever events or changes in circumstances indicate that the carrying value may not be recoverable from its estimated future cash flows. Based on the existence of one or more indicators of impairment, the Company measures any impairment of long-lived assets by comparing the asset's estimated fair value with its carrying value, based on cash flow methodology. If the net book value of the asset exceeds the related undiscounted cash flows, the asset is considered impaired and an impairment loss equal to an amount by which the carrying value exceeds the fair value of the asset is recognized. Fair value of financial instruments The Company values its financial instruments as required by FASB ASC 320-12-65. The estimated fair value amounts have been determined by the Company, using available market information or other appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop estimates of fair value. Consequently, the estimates are not necessarily indicative of the amounts that could be realized or would be paid in a current market exchange. ASC Topic 820, Fair Value Measurement and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This topic also establishes a fair value hierarchy which requires classification based on observable and unobservable inputs when measuring fair value. The fair value hierarchy distinguishes between assumptions based on market data (observable inputs) and an entitys own assumptions (unobservable inputs). The hierarchy consists of three levels: Level one Level two Level three Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter. The carrying values of the Companys financial instruments; consisting of cash and cash equivalents, accounts receivable, accounts payable, other receivables and prepayments, other payables and accrued liabilities, balances with a related party, balances with related companies and amounts due to director approximate their fair values due to the short maturities of these instruments. As of December 31, 2020, the Companys financial instruments consist principally of cash, and amounts due to related parties. Pursuant to ASC 820, the fair value of our cash is determined based on Level 1 inputs, which consist of quoted prices in active markets for identical assets. We believe that the recorded values of all of our other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations. There was no asset or liability measured at fair value on a non-recurring basis as of December 31, 2020. Comprehensive income U.S. GAAP generally requires that recognized revenue, expenses, gains and losses be included in net income or loss. Although certain changes in assets and liabilities are reported as separate components of the equity section of the consolidated balance sheet, such items, along with net income, are components of comprehensive income or loss. The components of other comprehensive income or loss consist of foreign currency translation adjustments. Earnings per share The Company reports earnings per share in accordance with ASC 260, Earnings per Share. ASC 260 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. Revenue recognition Sales revenue is recognized when all of the following have occurred: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the price is fixed or determinable, and (iv) the ability to collect is reasonably assured. The Companys revenue is derived from three primary sources: (i) professional services for systems development and integration, including procurement of related hardware and software licenses on behalf of customers, if required; (ii) professional services for system maintenance normally for a period of one year; and (iii) sale of hardware and consumables during the service performed as stated above. Multiple-deliverable arrangements The Company derives revenue from fixed-price sale contracts with customers that may provide for the Company to procure hardware and software licenses with varied performance specifications specific to each customer and provide the technical services for systems development and integration of the hardware and software licenses. In instances where the contract price is inclusive of the technical services, the sale contracts include multiple deliverables. A multiple-element arrangement is separated into more than one unit of accounting if all of the following criteria are met: · · · The Companys multiple-element contracts generally include customer-acceptance provisions which provide for the Company to carry out installation, test runs and performance tests at the Companys cost until the systems as a whole can meet the performance specifications stated in the contracts. The delivered equipment and software licenses have no standalone value to the customer until they are installed, integrated and tested at the customers site by the Company in accordance with the performance specifications specific to each customer. In addition, under these multiple-element contracts, the Company has not sold the equipment and software licenses separately from the installation, integration and testing services, and hence there is no objective and reliable evidence of the fair value for each deliverable included in the arrangement. As a result, the equipment and the technical services for installation, integration and testing of the equipment are considered a single unit of accounting pursuant to ASC Subtopic 605-25, Revenue Recognition Multiple-Element Arrangements. In addition, the arrangement generally includes customer acceptance criteria that cannot be tested before installation and integration at the customers site. Accordingly, revenue recognition is deferred until customer acceptance, indicated by an acceptance certificate signed off by the customer. Revenues of maintenance services are recognized when the services are performed in accordance with the contract term. Revenues of sale of software, if not bundled with other arrangements, are recognized when shipped and customer acceptance obtained, if all other revenue recognition criteria are met. Costs associated with revenues are recognized when incurred. Revenues are recorded net of value-added taxes, sales discounts and returns. There were no sales returns during the years ended December 31, 2020 and 2019. 2020 2019 US$ US$ NET REVENUES Service income - systems development and integration 11,268,268 72,062 - systems maintenance 7,379,350 5,856,729 - sales of hardware and consumables 1,903,853 2,380,338 20,551,471 8,309,129 Billings in excess of revenues recognized are recorded as deferred revenue. Income taxes The Company accounts for income taxes in accordance with the accounting standard issued by the Financial Accounting Standard Board (FASB) for income taxes. Under the asset and liability method as required by this accounting standard, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The charge for taxation is based on the results for the reporting period as adjusted for items which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. The effect on deferred income taxes of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion, or all of, a deferred tax asset will not be realized. Under the accounting standard regarding accounting for uncertainty in income taxes, a tax position is recognized as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the more likely than not test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the year incurred. Refer to Note 13 to the consolidated financial statements for further information regarding the components of the Companys income tax. Operating leases Leases where substantially all the rewards and risks of ownership of assets remain with the leasing company are accounted for as operating leases. Payments made under operating leases are charged to the statements of income on a straight-line basis over the lease periods. Advertising costs The Company expenses the cost of advertising as incurred in the period in which the advertisements and marketing activities are first run or over the life of the endorsement contract. Advertising and marketing expense for the years ended December 31, 2020 and 2019 were approximately $575 and $3,690, respectively. Shipping and handling Shipping and handling cost incurred to ship computer products to customers are included in selling expenses. Shipping and handling expenses for the years ended December 31, 2020 and 2019 were insignificant. Research and development costs Research and development costs are expensed as incurred and are included in general and administrative expenses. Research and development costs for the years ended December 31, 2020 and 2019 were insignificant. Foreign currency translation The functional currency and reporting currency of the Company is the U.S. Dollar. (US$ or $). The functional currency of the Hong Kong subsidiaries is the Hong Kong Dollar. The functional currency of the PRC subsidiary is RMB. Results of operations and cash flow are translated at average exchange rates during the period, and assets and liabilities are translated at the exchange rate as quoted by the Hong Kong Monetary Authority (HKMA) at the end of the period. Capital accounts are translated at their historical exchange rates when the capital transaction occurred. Translation adjustments resulting from this process are included in accumulated other comprehensive income. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. Year ended December 31, 2020 December 31, 2019 RMB : USD exchange rate 6.9348 6.8829 Average period ended HKD : USD exchange rate 7.800 7.800 Average period ended PESO : USD exchange rate 49.6473 51.0424 Average period ended Year ended December 31, 2020 December 31, 2019 RMB : USD exchange rate 6.5442 6.9799 HKD : USD exchange rate 7.800 7.800 PESO : USD exchange rate 47.7064 51.1475 Commitments and contingencies The Company follows FASB ASC Subtopic 450-20, Loss Contingencies in determining its accruals and disclosures with respect to loss contingencies. Accordingly, estimated losses from loss contingencies are accrued by a charge to income when information available prior to issuance of the financial statements indicates that it is probable that a liability could be incurred and the amount of the loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. If a loss contingency is not probable or reasonably estimable, disclosure of the loss contingency is made in the financial statements when it is at least reasonably possible that a material loss could be incurred. Segment Reporting The Company uses the management approach in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Companys chief operating decision maker for making operating decisions and assessing performance as the source for determining the Companys reportable segments. Management, including the chief operating decision maker, reviews operating results solely by monthly revenue from software development and maintenance services (but not by sub-services/product type or geographic area) and operating results of the Company and, as such, the Company has determined that the Company has one operating segment as defined by ASC Topic 280 Segment Reporting. Recent accounting pronouncements In June 2016, FASB amended guidance related to impairment of financial instruments as part of ASU 2016-13 Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which will be effective on January 1, 2020. The guidance replaces the incurred loss impairment methodology with an expected credit loss model for which a group is required to recognize an allowance based on its estimate of expected credit loss. We are currently evaluating the impact of this new guidance on our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting units carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The guidance should be adopted on a prospective basis for the annual or any interim goodwill impairment tests beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company currently intends to adopt this guidance for the fiscal year beginning January 1, 2020, and does not anticipate that the adoption of this guidance will have a material impact on its financial statements or disclosures because the Company does not currently have any recorded goodwill. In August 2018, the FASB issued Accounting Standard Update No. 2018-13, Changes to Disclosure Requirements for Fair Value Measurements (Topic 820) (ASU 2018-13), which improved the effectiveness of disclosure requirements for recurring and nonrecurring fair value measurements. The standard removes, modifies, and adds certain disclosure requirements. This guidance will be effective for us in the first quarter of 2020 on a prospective basis, with early adoption permitted. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes. This guidance will be effective for us in the first quarter of 2021 on a prospective basis, with early adoption permitted. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In January 2020, the FASB issued Accounting Standards Update No. 2020-01, InvestmentsEquity Securities (Topic 321), InvestmentsEquity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) (ASU 2020-01), which clarifies the interaction of the accounting for equity securities under Topic 321, the accounting for equity method investments in Topic 323, and the accounting for certain forward contracts and purchased options in Topic 815. This guidance will be effective for us in the first quarter of 2021 on a prospective basis, with early adoption permitted. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Companys consolidated financial statements upon adoption. |
Note 3 - Accounts receivable
Note 3 - Accounts receivable | 12 Months Ended |
Dec. 31, 2020 | |
Notes | |
Note 3 - Accounts receivable | Note 3 - Accounts receivable Accounts receivable as of December 31, 2020 and 2019 consisted of the following: December 31, 2020 2019 US$ US$ Accounts receivable 603,689 777,348 Allowance for doubtful accounts (4,253) (3,788) 599,436 773,560 During the years ended December 31, 2020 and 2019, the Company did not have delinquent accounts receivable to write-off. All of the Companys customers are located in the PRC, Hong Kong and Philippines. The Company provides credit in the normal course of business. The Company performs ongoing credit evaluations of its customers and maintains allowances for doubtful accounts based on factors surrounding the credit risk of specific customers, historical trends, and other information. |
Note 4 - Other receivables and
Note 4 - Other receivables and prepayments | 12 Months Ended |
Dec. 31, 2020 | |
Notes | |
Note 4 - Other receivables and prepayments | Note 4 - Other receivables and prepayments Other receivables and prepayments as of December 31, 2020 and 2019 consisted of the following: December 31, 2020 2019 US$ US$ Prepaid expense 201,435 140,635 Rental deposits 98,355 74,506 Others 114,552 42,032 414,342 257,173 |
Note 5 - Inventories
Note 5 - Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Notes | |
Note 5 - Inventories | Note 5 - Inventories Inventories as of December 31, 2020 and 2019 consisted of the following: December 31, 2020 2019 US$ US$ Finished goods 238,147 219,592 |
Note 6 - Plant and equipment, n
Note 6 - Plant and equipment, net | 12 Months Ended |
Dec. 31, 2020 | |
Notes | |
Note 6 - Plant and equipment, net | Note 6 Plant and equipment, net Plant and equipment consisted of the following as of December 31, 2020 and 2019: December 31, 2020 2019 US$ US$ Leasehold improvements 78,224 73,322 Office furniture and equipment 254,681 145,002 Computer equipment 334,237 315,332 Computer software 43,319 39,548 Motor Vehicle 119,806 154,434 Building 68,904 64,673 Total 899,171 792,311 Less: accumulated depreciation (542,150) (438,485) Plant and equipment, net 357,021 353,826 Depreciation expense for the years ended December 31, 2020 and 2019 amounted to $193,390 and $156,563, respectively. For the years ended December 31, 2020 and 2019, no interest expense was capitalized into plant and equipment. As of December 31, 2020 and 2019, the Company's motor vehicle was under finance lease arrangement with a net carrying amount $44,533 and nil respectively. |
Note 7 - Goodwill
Note 7 - Goodwill | 12 Months Ended |
Dec. 31, 2020 | |
Notes | |
Note 7 - Goodwill | Note 7 Goodwill Goodwill consisted of the following as of December 31, 2020 and 2019: December 31, 2020 2019 US$ US$ Goodwill arising from acquisition of TSI 206,812 206,812 |
Note 8 - Leases
Note 8 - Leases | 12 Months Ended |
Dec. 31, 2020 | |
Notes | |
Note 8 - Leases | Note 8 Leases We have entered into various non-cancelable operating lease agreements for certain of our offices. Our leases have original lease periods expiring between the remainder of 2021 and 2025. Many leases include option to renew. We do not assume renewals in our determination of the lease term unless the renewals are deemed to be reasonably assured. Our lease agreements generally do not contain any material residual value guarantees or material restrictive covenants. December 31, 2020 2019 US$ US$ Operating lease right-of-use assets, net 585,057 824,230 The components of lease liabilities are as follows: December 31, 2020 2019 US$ US$ Lease liabilities, current 303,687 356,960 Lease liabilities, non-current 277,111 478,641 Present value of lease liabilities 580,798 835,601 Total lease cost for the year ended December 31, 2020 and 2019 amounted to $15,502 and $11,371. Weighted-average remaining lease term is 1.6 years, and weighted-average discount rate is 3%. The following is a schedule, by years, of maturities of lease liabilities as of December 31, 2020: December 31, 2020 2019 US$ US$ Year one 316,880 367,669 Year two 187,971 344,461 Year three 95,772 137,839 Year four - 31,302 Thereafter - - Total undiscounted cash flows 600,623 881,271 Less: Imputed interest (19,826) (45,670) Present value of lease liabilities 580,798 835,601 |
Note 9 - Intangible Assets
Note 9 - Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Notes | |
Note 9 - Intangible Assets | Note 9 Intangible Assets Intangible Assets consisted of the following as of December 31, 2020 and 2019: December 31, 2020 2019 US$ US$ Customer relationship 200,641 200,641 Less: accumulated amortization (200,641) (200,641) - - Amortization expense for the year ended December 31, 2020 and 2019 amounted to nil and $66,881, respectively. The amortization expense was included in general and administrative expenses. |
Note 10 - Bank loan
Note 10 - Bank loan | 12 Months Ended |
Dec. 31, 2020 | |
Notes | |
Note 10 - Bank loan | Note 10 Bank loan Bank loan and accruals consisted of the following as of December 31, 2020 and 2019: December 31, 2020 2019 US$ US$ Long term bank loan 101,823 - Less: Current portion of long term bank loan (38,874) - 62,949 - Short term bank loan - 13,686 Current portion of long term bank loan 38,874 - 38,874 13,686 As of December 31, 2020 and 2019, the above bank loan secured by property and equipment with net carrying amount of $44,533 and nil respectively. |
Note 11 - Other payables and ac
Note 11 - Other payables and accrued liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Notes | |
Note 11 - Other payables and accrued liabilities | Note 11 Other payables and accrued liabilities Other payables and accruals consisted of the following as of December 31, 2020 and 2019: December 31, 2020 2019 US$ US$ Accrual 737,141 519,853 Income taxes payable 94,675 33,406 831,816 553,259 Accrual mainly represents salary payables and fringe and social security accruals. According to the prevailing laws and regulations of the PRC, all eligible employees of the Companys subsidiary are entitled to staff welfare benefits including medical care, welfare subsidies, unemployment insurance and pension benefits through a PRC government-mandated multi-employer defined contribution plan. The Companys subsidiary is required to accrue for these benefits based on certain percentages of the qualified employees salaries. The Companys subsidiary is required to make contributions to the plans out of the amounts accrued. The Companys subsidiaries incorporated in Hong Kong manage a defined contribution Mandatory Provident Fund (the MPF Scheme) under the Mandatory Provident Fund Schemes Ordinance, for all of its employees in Hong Kong. The Company is required to contribute 5% of the monthly salaries for all Hong Kong based employees to the MPF Scheme up to a maximum statutory limit. |
Note 12 - Deferred income
Note 12 - Deferred income | 12 Months Ended |
Dec. 31, 2020 | |
Notes | |
Note 12 - Deferred income | Note 12 Deferred income Deferred income consisted of the following as of December 31, 2020 and 2019: December 31, 2020 2019 US$ US$ Service fees received in advance 254,937 255,749 |
Note 13 - Income taxes
Note 13 - Income taxes | 12 Months Ended |
Dec. 31, 2020 | |
Notes | |
Note 13 - Income taxes | Note 13 - Income taxes Income is subject to tax in the various countries in which the company operates. The Company is subject to United States tax at a tax rate of 21%. No provision for income taxes in the United States has been made as the Company had no income taxable in the United States. The Companys Hong Kong subsidiaries are subject to Hong Kong Profits Tax at 16.5% of the estimated assessable profit. The Income Tax Laws in Hong Kong exempts income tax for dividends distributed to its shareholders. Accordingly, no deferred tax liability was recognized for the undistributed earnings of the Company and its Hong Kong subsidiaries. The Companys Philippine subsidiary is subject to Philippine Statutory Corporate Income Tax at 30%. The Companys PRC subsidiary in the PRC is subject to PRC Enterprise Income Tax at 25%. The Income Tax Laws in PRC also imposes a 10% withholding income tax for dividends distributed by a foreign invested enterprise to its immediate holding company outside PRC for distribution of earnings generated after January 1, 2008. Under the Income Tax Laws, the distribution of earnings generated prior to January 1, 2008 is exempt from the withholding tax. As the Companys subsidiary located in the PRC that are available for distribution to the Company of approximately $0 at December 31, 2019 are considered to be indefinitely reinvested, and accordingly, no provision has been made for the Chinese dividend withholding taxes that would be payable upon the distribution of those amounts to the Company. As of December 31, 2020, the Companys subsidiary located in the PRC that are available for distribution to the Company of approximately $0. The Companys income tax expense consisted of: December 31, 2020 2019 US$ US$ Current income tax 20,727 33,621 Deferred income tax - (22,205) Income tax expenses 20,727 11,416 A reconciliation of the income tax expense / (credit) applicable to income before tax using the applicable statutory rates for the jurisdictions in which the Company and its subsidiaries operated to the tax expense / (credit) at the effective tax rates are as follows: December 31, 2020 2019 US$ US$ Pre-tax income 126,231 64,851 U.S. federal corporate income tax rate 21% 35% Philippine corporate income tax rate 30% 30% P.R.C. corporate income tax rate 25% 25% Hong Kong corporate income tax rate 16.5% 16.5% Current tax computed at various jurisdiction rate 20,727 33,621 Deferred tax computed at various jurisdiction rate - (22,205) Effective income taxes 20,727 11,416 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of deferred income tax assets and liabilities are as follows: December 31, 2020 2019 US$ US$ Deferred income tax assets: Tax losses 71,681 56,045 |
Note 14 - Statutory reserves
Note 14 - Statutory reserves | 12 Months Ended |
Dec. 31, 2020 | |
Notes | |
Note 14 - Statutory reserves | Note 14 Statutory reserves Statutory reserves The laws and regulations of the PRC require that before an enterprise distributes profits to its owners, it must first satisfy all tax liabilities, provide for losses in previous years, and make allocations in proportions determined at the discretion of the Board of Directors after the statutory reserves. As stipulated by the Company Law of the PRC, as applicable to Chinese companies with foreign ownership, net income after taxation can only be distributed as dividends after appropriation has been made for the following: 1. 2. 3. The statutory reserve fund is non-distributable other than during liquidation and can be used to fund previous years losses, if any. It may be utilized for business expansion or converted into share capital by issuing new shares to existing shareholders in proportion to their shareholding or by increasing the par value of the shares currently held by them, provided that the remaining reserve balance after such issue is not less than 25% of the registered capital. |
Note 15 - Related party and sha
Note 15 - Related party and shareholder transactions | 12 Months Ended |
Dec. 31, 2020 | |
Notes | |
Note 15 - Related party and shareholder transactions | Note 15 Related party and shareholder transactions Other than disclosed elsewhere in these financial statements, the Company also had the following related party balances and transactions: Related party balances December 31, 2020 2019 Due from related parties US$ US$ Value Exchange International Limited (i) 1,269,620 534,806 Cucumbuy.com Limited (ii) 30,769 SmartMyWays Co., Limited (iii) 30,769 - Retail Intelligent Unit Limited (iv) 12,308 - 1,343,466 534,806 Due to related parties AppMyWays Co., Limited (v) 253,063 - Mr. Edmund Yeung (vi) - 32,909 Mr. Johan Pehrson (vii) 10,000 - 263,063 32,909 Related party transactions: Year end December 31, 2020 2019 US$ US$ Subcontracting fees paid to Value Exchange International Limited (i) - (16,910) AppMyWays Co., Limited (v) (771,538) - ValueX International Pte. Ltd. (viii) - (1,769) Service income received from Value Exchange International Limited (i) 1,117 351,903 AppMyWays Co., Limited (v) 788,987 - ValueX International Pte. Ltd. (viii) 159,581 3,035 Value E Consultant International (M) Sdn. Bhd (ix) 18,069 80,483 TAP Technology (HK) Limited (x) 262,821 - Service income paid to Cucumbuy.com Limited (ii) (41,216) (30,769) TAP Technology (HK) Limited (x) - (155,696) Interest expenses payable to Mr. Edmund Yeung (vi) - (2,371) Management fees received from Value Exchange International Limited (i) 49,700 154,870 Cucumbuy.com Limited (ii) 30,769 - SmartMyWays Co., Limited (iii) 30,769 - Retail Intelligent Unit Limited (vi) 12,308 - TAP Technology (HK) Limited (x) 30,769 - (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) |
Note 16 - Concentration of risk
Note 16 - Concentration of risks | 12 Months Ended |
Dec. 31, 2020 | |
Notes | |
Note 16 - Concentration of risks | Note 16 - Concentration of risks The Companys operations are carried out in the PRC and in Hong Kong through the Companys operating subsidiaries located in PRC and Hong Kong SAR. Its operations in the PRC and Hong Kong SAR are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environments and foreign currency exchange. The Companys results may be adversely affected by changes in government policies regarding laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. The Company provides unsecured credit terms for sales to certain customers. As a result, there are credit risks with the accounts receivable balances. The Company constantly re-evaluates the credit worthiness of customers buying on credit and maintains an allowance for doubtful accounts. The following individual customer accounted for 10% or more of the Companys revenues for the years ended December 31, 2020 and 2019: 2020 2019 DXC Technology Enterprise Services (Hong Kong) Limited 52.4% - Wuhan Watson's Personal Care Stores Co., Limited 8.1% 29.1 % Aisino Wincor Nixdorf Retail & Banking Systems (Shanghai) Co., Ltd. Company 9.9% 28.8 % Fujitsu Hong Kong Limited 4.6% 11.9% Individual customer accounts receivable that represented 10% or more of total accounts receivable as of December 31, 2020 and 2019 were as follows: Percentage of accounts receivable as of December 31, 2020 2019 Wuhan Watson's Personal Care Stores Co., Limited 0.1% 20.0% Aisino Wincor Nixdorf Retail & Banking Systems (Shanghai) Co., Ltd. Company 10.6% 19.0% Wincor Nixdorf (Hong Kong) Limited 13.5% 14.8% Robinsons Retail Group 37.1% 14.0% |
Note 2 - Accounting policies_ B
Note 2 - Accounting policies: Basis of presentation and principle of consolidation (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Policies | |
Basis of presentation and principle of consolidation | Basis of presentation and principle of consolidation The consolidated financial statements include all of the assets, liabilities, revenues, expenses and cash flows of entities in which the Company has a controlling interest (subsidiaries). Intercompany accounts and transactions between consolidated companies have been eliminated in consolidation. Consolidated financial statements prepared following a reverse acquisition are issued under the name of the legal parent (accounting acquiree) (i.e. VEII) but as a continuation of the financial statements of the legal subsidiary (accounting acquirer) (i.e VEI CHN), with one adjustment, which is to retroactively adjust the accounting acquirers legal capital to reflect the legal capital of the accounting acquiree. That adjustment is required to reflect the capital of the legal parent (the accounting acquiree). Comparative information presented in those consolidated financial statements also is retroactively adjusted to reflect the legal capital of the legal parent (accounting acquiree). The consolidated financial statements include the accounts of Value Exchange International, Inc., and the following subsidiaries: 1. 2. 3. 4. 5. 6. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP), and include the financial statements of the Company and all its wholly-owned subsidiaries that require consolidation. All material intercompany transactions and balances have been eliminated in the consolidation. The following entities were consolidated as of December 31, 2020: Ownership percentage Place of incorporation 2020 2019 Value Exchange International, Inc. USA Parent Company Parent Company Value Exchange Intl (China) Limited Hong Kong 100% 100% Value Exchange Intl (Shanghai) Limited PRC 100% 100% Value Exchange Intl (Hong Kong) Limited Hong Kong 100% 100% Koinon Technology Services, Inc. US Virgin Islands, US - 51% TapServices, Inc. Philippines 100% 100% Value Exchange Intl (Hunan) Limited PRC 51% 51% Shanghai Zhaonan Hengan Information Technology Co., Limited PRC 51% - Value Exchange International, Inc. - a Nevada Company 100% Value Exchange Intl (China) Limited - a Hong Kong Company 100% 100% 100% Value Exchange Intl (Shanghai) Limited - a PRC Company Value Exchange Intl (Hong Kong) Limited - a Hong Kong Company TapServices, Inc. - a Philippines Company 51% 51% Value Exchange Intl (Hunan) Limited - a PRC Company Shanghai Zhaonan Hengan Information Technology Co., Limited - a PRC Company |
Note 2 - Accounting policies_ U
Note 2 - Accounting policies: Use of estimates (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Policies | |
Use of estimates | Use of estimates Preparing consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions affecting 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. The more significant areas requiring using managements estimates and assumptions relate to the collectability of its receivables, the fair value and accounting treatment of financial instruments, the valuation of long-lived assets and valuation of deferred tax liabilities. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results may differ significantly from these estimates. In addition, different assumptions or circumstances could reasonably be expected to yield different results. |
Note 2 - Accounting policies_ C
Note 2 - Accounting policies: Cash and cash equivalents (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Policies | |
Cash and cash equivalents | Cash and cash equivalents For purposes of the cash flow statements, the Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. Cash includes cash on hand and demand deposits in accounts maintained with financial institutions or state owned banks within the PRC and Hong Kong. |
Note 2 - Accounting policies_ A
Note 2 - Accounting policies: Accounts receivable and other receivables (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Policies | |
Accounts receivable and other receivables | Accounts receivable and other receivables Receivables include trade accounts due from customers and other receivables such as cash advances to employees, utility deposits paid and advance to suppliers. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentration, customer credit worthiness, current economic trends and changes in customer payment patterns to determine if the allowance for doubtful accounts is adequate. An estimate for doubtful accounts is made when collection of the full amount is no longer probable. Delinquent account balances are written-off after management has determined that the likelihood of collection is not probable and known bad debts are written off against the allowance for doubtful accounts when identified. As of December 31, 2020 and 2019, there was no allowance for uncollectible accounts receivable, respectively. Management believes that the remaining accounts receivable are collectable. |
Note 2 - Accounting policies_ P
Note 2 - Accounting policies: Plant and equipment (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Policies | |
Plant and equipment | Plant and equipment Plant and equipment is stated at cost less accumulated depreciation and accumulated impairment losses, if any. Expenditures for maintenance and repairs are charged to earnings as incurred. Major additions are capitalized. When assets are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation of plant and equipment is provided using the straight-line method for substantially all assets with estimated lives as follows: Estimated Useful Life Leasehold improvements Lesser of lease term or the estimated useful lives of 5 years Computer equipment 5 years Computer software 5 years Office furniture and equipment 5 years Motor Vehicle 3 years Building 5 years |
Note 2 - Accounting policies_ I
Note 2 - Accounting policies: Impairment of long-lived assets (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Policies | |
Impairment of long-lived assets | Impairment of long-lived assets The Company evaluates long lived assets, including equipment, for impairment at least once per year and whenever events or changes in circumstances indicate that the carrying value may not be recoverable from its estimated future cash flows. Based on the existence of one or more indicators of impairment, the Company measures any impairment of long-lived assets by comparing the asset's estimated fair value with its carrying value, based on cash flow methodology. If the net book value of the asset exceeds the related undiscounted cash flows, the asset is considered impaired and an impairment loss equal to an amount by which the carrying value exceeds the fair value of the asset is recognized. |
Note 2 - Accounting policies_ F
Note 2 - Accounting policies: Fair value of financial instruments (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Policies | |
Fair value of financial instruments | Fair value of financial instruments The Company values its financial instruments as required by FASB ASC 320-12-65. The estimated fair value amounts have been determined by the Company, using available market information or other appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop estimates of fair value. Consequently, the estimates are not necessarily indicative of the amounts that could be realized or would be paid in a current market exchange. ASC Topic 820, Fair Value Measurement and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This topic also establishes a fair value hierarchy which requires classification based on observable and unobservable inputs when measuring fair value. The fair value hierarchy distinguishes between assumptions based on market data (observable inputs) and an entitys own assumptions (unobservable inputs). The hierarchy consists of three levels: Level one Level two Level three Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter. The carrying values of the Companys financial instruments; consisting of cash and cash equivalents, accounts receivable, accounts payable, other receivables and prepayments, other payables and accrued liabilities, balances with a related party, balances with related companies and amounts due to director approximate their fair values due to the short maturities of these instruments. As of December 31, 2020, the Companys financial instruments consist principally of cash, and amounts due to related parties. Pursuant to ASC 820, the fair value of our cash is determined based on Level 1 inputs, which consist of quoted prices in active markets for identical assets. We believe that the recorded values of all of our other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations. There was no asset or liability measured at fair value on a non-recurring basis as of December 31, 2020. |
Note 2 - Accounting policies__2
Note 2 - Accounting policies: Comprehensive income (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Policies | |
Comprehensive income | Comprehensive income U.S. GAAP generally requires that recognized revenue, expenses, gains and losses be included in net income or loss. Although certain changes in assets and liabilities are reported as separate components of the equity section of the consolidated balance sheet, such items, along with net income, are components of comprehensive income or loss. The components of other comprehensive income or loss consist of foreign currency translation adjustments. |
Note 2 - Accounting policies_ E
Note 2 - Accounting policies: Earnings per share (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Policies | |
Earnings per share | Earnings per share The Company reports earnings per share in accordance with ASC 260, Earnings per Share. ASC 260 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. |
Note 2 - Accounting policies_ R
Note 2 - Accounting policies: Revenue recognition (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Policies | |
Revenue recognition | Revenue recognition Sales revenue is recognized when all of the following have occurred: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the price is fixed or determinable, and (iv) the ability to collect is reasonably assured. The Companys revenue is derived from three primary sources: (i) professional services for systems development and integration, including procurement of related hardware and software licenses on behalf of customers, if required; (ii) professional services for system maintenance normally for a period of one year; and (iii) sale of hardware and consumables during the service performed as stated above. Multiple-deliverable arrangements The Company derives revenue from fixed-price sale contracts with customers that may provide for the Company to procure hardware and software licenses with varied performance specifications specific to each customer and provide the technical services for systems development and integration of the hardware and software licenses. In instances where the contract price is inclusive of the technical services, the sale contracts include multiple deliverables. A multiple-element arrangement is separated into more than one unit of accounting if all of the following criteria are met: · · · The Companys multiple-element contracts generally include customer-acceptance provisions which provide for the Company to carry out installation, test runs and performance tests at the Companys cost until the systems as a whole can meet the performance specifications stated in the contracts. The delivered equipment and software licenses have no standalone value to the customer until they are installed, integrated and tested at the customers site by the Company in accordance with the performance specifications specific to each customer. In addition, under these multiple-element contracts, the Company has not sold the equipment and software licenses separately from the installation, integration and testing services, and hence there is no objective and reliable evidence of the fair value for each deliverable included in the arrangement. As a result, the equipment and the technical services for installation, integration and testing of the equipment are considered a single unit of accounting pursuant to ASC Subtopic 605-25, Revenue Recognition Multiple-Element Arrangements. In addition, the arrangement generally includes customer acceptance criteria that cannot be tested before installation and integration at the customers site. Accordingly, revenue recognition is deferred until customer acceptance, indicated by an acceptance certificate signed off by the customer. Revenues of maintenance services are recognized when the services are performed in accordance with the contract term. Revenues of sale of software, if not bundled with other arrangements, are recognized when shipped and customer acceptance obtained, if all other revenue recognition criteria are met. Costs associated with revenues are recognized when incurred. Revenues are recorded net of value-added taxes, sales discounts and returns. There were no sales returns during the years ended December 31, 2020 and 2019. 2020 2019 US$ US$ NET REVENUES Service income - systems development and integration 11,268,268 72,062 - systems maintenance 7,379,350 5,856,729 - sales of hardware and consumables 1,903,853 2,380,338 20,551,471 8,309,129 Billings in excess of revenues recognized are recorded as deferred revenue. |
Note 2 - Accounting policies__3
Note 2 - Accounting policies: Income taxes (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Policies | |
Income taxes | Income taxes The Company accounts for income taxes in accordance with the accounting standard issued by the Financial Accounting Standard Board (FASB) for income taxes. Under the asset and liability method as required by this accounting standard, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The charge for taxation is based on the results for the reporting period as adjusted for items which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. The effect on deferred income taxes of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion, or all of, a deferred tax asset will not be realized. Under the accounting standard regarding accounting for uncertainty in income taxes, a tax position is recognized as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the more likely than not test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the year incurred. Refer to Note 13 to the consolidated financial statements for further information regarding the components of the Companys income tax. |
Note 2 - Accounting policies_ O
Note 2 - Accounting policies: Operating leases (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Policies | |
Operating leases | Operating leases Leases where substantially all the rewards and risks of ownership of assets remain with the leasing company are accounted for as operating leases. Payments made under operating leases are charged to the statements of income on a straight-line basis over the lease periods. |
Note 2 - Accounting policies__4
Note 2 - Accounting policies: Advertising costs (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Policies | |
Advertising costs | Advertising costs The Company expenses the cost of advertising as incurred in the period in which the advertisements and marketing activities are first run or over the life of the endorsement contract. Advertising and marketing expense for the years ended December 31, 2020 and 2019 were approximately $575 and $3,690, respectively. |
Note 2 - Accounting policies_ S
Note 2 - Accounting policies: Shipping and handling (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Policies | |
Shipping and handling | Shipping and handling Shipping and handling cost incurred to ship computer products to customers are included in selling expenses. Shipping and handling expenses for the years ended December 31, 2020 and 2019 were insignificant. |
Note 2 - Accounting policies__5
Note 2 - Accounting policies: Research and development costs (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Policies | |
Research and development costs | Research and development costs Research and development costs are expensed as incurred and are included in general and administrative expenses. Research and development costs for the years ended December 31, 2020 and 2019 were insignificant. |
Note 2 - Accounting policies__6
Note 2 - Accounting policies: Foreign currency translation (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Policies | |
Foreign currency translation | Foreign currency translation The functional currency and reporting currency of the Company is the U.S. Dollar. (US$ or $). The functional currency of the Hong Kong subsidiaries is the Hong Kong Dollar. The functional currency of the PRC subsidiary is RMB. Results of operations and cash flow are translated at average exchange rates during the period, and assets and liabilities are translated at the exchange rate as quoted by the Hong Kong Monetary Authority (HKMA) at the end of the period. Capital accounts are translated at their historical exchange rates when the capital transaction occurred. Translation adjustments resulting from this process are included in accumulated other comprehensive income. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. Year ended December 31, 2020 December 31, 2019 RMB : USD exchange rate 6.9348 6.8829 Average period ended HKD : USD exchange rate 7.800 7.800 Average period ended PESO : USD exchange rate 49.6473 51.0424 Average period ended Year ended December 31, 2020 December 31, 2019 RMB : USD exchange rate 6.5442 6.9799 HKD : USD exchange rate 7.800 7.800 PESO : USD exchange rate 47.7064 51.1475 |
Note 2 - Accounting policies__7
Note 2 - Accounting policies: Commitments and contingencies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Policies | |
Commitments and contingencies | Commitments and contingencies The Company follows FASB ASC Subtopic 450-20, Loss Contingencies in determining its accruals and disclosures with respect to loss contingencies. Accordingly, estimated losses from loss contingencies are accrued by a charge to income when information available prior to issuance of the financial statements indicates that it is probable that a liability could be incurred and the amount of the loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. If a loss contingency is not probable or reasonably estimable, disclosure of the loss contingency is made in the financial statements when it is at least reasonably possible that a material loss could be incurred. |
Note 2 - Accounting policies__8
Note 2 - Accounting policies: Segment Reporting (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Policies | |
Segment Reporting | Segment Reporting The Company uses the management approach in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Companys chief operating decision maker for making operating decisions and assessing performance as the source for determining the Companys reportable segments. Management, including the chief operating decision maker, reviews operating results solely by monthly revenue from software development and maintenance services (but not by sub-services/product type or geographic area) and operating results of the Company and, as such, the Company has determined that the Company has one operating segment as defined by ASC Topic 280 Segment Reporting. |
Note 2 - Accounting policies__9
Note 2 - Accounting policies: Recent accounting pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Policies | |
Recent accounting pronouncements | Recent accounting pronouncements In June 2016, FASB amended guidance related to impairment of financial instruments as part of ASU 2016-13 Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which will be effective on January 1, 2020. The guidance replaces the incurred loss impairment methodology with an expected credit loss model for which a group is required to recognize an allowance based on its estimate of expected credit loss. We are currently evaluating the impact of this new guidance on our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting units carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The guidance should be adopted on a prospective basis for the annual or any interim goodwill impairment tests beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company currently intends to adopt this guidance for the fiscal year beginning January 1, 2020, and does not anticipate that the adoption of this guidance will have a material impact on its financial statements or disclosures because the Company does not currently have any recorded goodwill. In August 2018, the FASB issued Accounting Standard Update No. 2018-13, Changes to Disclosure Requirements for Fair Value Measurements (Topic 820) (ASU 2018-13), which improved the effectiveness of disclosure requirements for recurring and nonrecurring fair value measurements. The standard removes, modifies, and adds certain disclosure requirements. This guidance will be effective for us in the first quarter of 2020 on a prospective basis, with early adoption permitted. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes. This guidance will be effective for us in the first quarter of 2021 on a prospective basis, with early adoption permitted. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In January 2020, the FASB issued Accounting Standards Update No. 2020-01, InvestmentsEquity Securities (Topic 321), InvestmentsEquity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) (ASU 2020-01), which clarifies the interaction of the accounting for equity securities under Topic 321, the accounting for equity method investments in Topic 323, and the accounting for certain forward contracts and purchased options in Topic 815. This guidance will be effective for us in the first quarter of 2021 on a prospective basis, with early adoption permitted. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Companys consolidated financial statements upon adoption. |
Note 2 - Accounting policies_10
Note 2 - Accounting policies: Basis of presentation and principle of consolidation: Schedule of Consolidated Entities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tables/Schedules | |
Schedule of Consolidated Entities | Ownership percentage Place of incorporation 2020 2019 Value Exchange International, Inc. USA Parent Company Parent Company Value Exchange Intl (China) Limited Hong Kong 100% 100% Value Exchange Intl (Shanghai) Limited PRC 100% 100% Value Exchange Intl (Hong Kong) Limited Hong Kong 100% 100% Koinon Technology Services, Inc. US Virgin Islands, US - 51% TapServices, Inc. Philippines 100% 100% Value Exchange Intl (Hunan) Limited PRC 51% 51% Shanghai Zhaonan Hengan Information Technology Co., Limited PRC 51% - |
Note 2 - Accounting policies_11
Note 2 - Accounting policies: Plant and equipment: Schedule of Estimated Useful Life (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tables/Schedules | |
Schedule of Estimated Useful Life | Estimated Useful Life Leasehold improvements Lesser of lease term or the estimated useful lives of 5 years Computer equipment 5 years Computer software 5 years Office furniture and equipment 5 years Motor Vehicle 3 years Building 5 years |
Note 2 - Accounting policies_12
Note 2 - Accounting policies: Revenue recognition: Schedule of Revenues (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tables/Schedules | |
Schedule of Revenues | 2020 2019 US$ US$ NET REVENUES Service income - systems development and integration 11,268,268 72,062 - systems maintenance 7,379,350 5,856,729 - sales of hardware and consumables 1,903,853 2,380,338 20,551,471 8,309,129 |
Note 2 - Accounting policies_13
Note 2 - Accounting policies: Foreign currency translation: Schedule of Foreign currency translation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tables/Schedules | |
Schedule of Foreign currency translation | Year ended December 31, 2020 December 31, 2019 RMB : USD exchange rate 6.9348 6.8829 Average period ended HKD : USD exchange rate 7.800 7.800 Average period ended PESO : USD exchange rate 49.6473 51.0424 Average period ended Year ended December 31, 2020 December 31, 2019 RMB : USD exchange rate 6.5442 6.9799 HKD : USD exchange rate 7.800 7.800 PESO : USD exchange rate 47.7064 51.1475 |
Note 3 - Accounts receivable_ S
Note 3 - Accounts receivable: Schedule of Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tables/Schedules | |
Schedule of Accounts Receivable | December 31, 2020 2019 US$ US$ Accounts receivable 603,689 777,348 Allowance for doubtful accounts (4,253) (3,788) 599,436 773,560 |
Note 4 - Other receivables an_2
Note 4 - Other receivables and prepayments: Schedule of Other Receivables and Prepayments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tables/Schedules | |
Schedule of Other Receivables and Prepayments | December 31, 2020 2019 US$ US$ Prepaid expense 201,435 140,635 Rental deposits 98,355 74,506 Others 114,552 42,032 414,342 257,173 |
Note 5 - Inventories_ Schedule
Note 5 - Inventories: Schedule of Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tables/Schedules | |
Schedule of Inventories | December 31, 2020 2019 US$ US$ Finished goods 238,147 219,592 |
Note 6 - Plant and equipment,_2
Note 6 - Plant and equipment, net: Schedule of Property, Plant, and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tables/Schedules | |
Schedule of Property, Plant, and Equipment | December 31, 2020 2019 US$ US$ Leasehold improvements 78,224 73,322 Office furniture and equipment 254,681 145,002 Computer equipment 334,237 315,332 Computer software 43,319 39,548 Motor Vehicle 119,806 154,434 Building 68,904 64,673 Total 899,171 792,311 Less: accumulated depreciation (542,150) (438,485) Plant and equipment, net 357,021 353,826 |
Note 7 - Goodwill_ Schedule of
Note 7 - Goodwill: Schedule of Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tables/Schedules | |
Schedule of Goodwill | December 31, 2020 2019 US$ US$ Goodwill arising from acquisition of TSI 206,812 206,812 |
Note 8 - Leases_ Schedule of Op
Note 8 - Leases: Schedule of Operating lease right-of-use assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tables/Schedules | |
Schedule of Operating lease right-of-use assets | December 31, 2020 2019 US$ US$ Operating lease right-of-use assets, net 585,057 824,230 |
Note 8 - Leases_ Schedule of co
Note 8 - Leases: Schedule of components of lease liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tables/Schedules | |
Schedule of components of lease liabilities | December 31, 2020 2019 US$ US$ Lease liabilities, current 303,687 356,960 Lease liabilities, non-current 277,111 478,641 Present value of lease liabilities 580,798 835,601 |
Note 8 - Leases_ Schedule of Fu
Note 8 - Leases: Schedule of Future Minimum Rental Payments for Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tables/Schedules | |
Schedule of Future Minimum Rental Payments for Operating Leases | December 31, 2020 2019 US$ US$ Year one 316,880 367,669 Year two 187,971 344,461 Year three 95,772 137,839 Year four - 31,302 Thereafter - - Total undiscounted cash flows 600,623 881,271 Less: Imputed interest (19,826) (45,670) Present value of lease liabilities 580,798 835,601 |
Note 9 - Intangible Assets_ Sch
Note 9 - Intangible Assets: Schedule of Finite-Lived Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tables/Schedules | |
Schedule of Finite-Lived Intangible Assets | December 31, 2020 2019 US$ US$ Customer relationship 200,641 200,641 Less: accumulated amortization (200,641) (200,641) - - |
Note 10 - Bank loan_ Schedule o
Note 10 - Bank loan: Schedule of Bank Loan (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tables/Schedules | |
Schedule of Bank Loan | December 31, 2020 2019 US$ US$ Long term bank loan 101,823 - Less: Current portion of long term bank loan (38,874) - 62,949 - Short term bank loan - 13,686 Current portion of long term bank loan 38,874 - 38,874 13,686 |
Note 11 - Other payables and _2
Note 11 - Other payables and accrued liabilities: Schedule of Other Payables and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tables/Schedules | |
Schedule of Other Payables and Accrued Liabilities | December 31, 2020 2019 US$ US$ Accrual 737,141 519,853 Income taxes payable 94,675 33,406 831,816 553,259 |
Note 12 - Deferred income_ Sche
Note 12 - Deferred income: Schedule of Deferred Income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tables/Schedules | |
Schedule of Deferred Income | December 31, 2020 2019 US$ US$ Service fees received in advance 254,937 255,749 |
Note 13 - Income taxes_ Schedul
Note 13 - Income taxes: Schedule of Deferred Tax Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tables/Schedules | |
Schedule of Deferred Tax Assets and Liabilities | December 31, 2020 2019 US$ US$ Current income tax 20,727 33,621 Deferred income tax - (22,205) Income tax expenses 20,727 11,416 |
Note 13 - Income taxes_ Sched_2
Note 13 - Income taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tables/Schedules | |
Schedule of Effective Income Tax Rate Reconciliation | December 31, 2020 2019 US$ US$ Pre-tax income 126,231 64,851 U.S. federal corporate income tax rate 21% 35% Philippine corporate income tax rate 30% 30% P.R.C. corporate income tax rate 25% 25% Hong Kong corporate income tax rate 16.5% 16.5% Current tax computed at various jurisdiction rate 20,727 33,621 Deferred tax computed at various jurisdiction rate - (22,205) Effective income taxes 20,727 11,416 |
Note 13 - Income taxes_ Sched_3
Note 13 - Income taxes: Schedule of Significant components of deferred income tax assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tables/Schedules | |
Schedule of Significant components of deferred income tax assets and liabilities | December 31, 2020 2019 US$ US$ Deferred income tax assets: Tax losses 71,681 56,045 |
Note 15 - Related party and s_2
Note 15 - Related party and shareholder transactions: Schedule of Balances due from Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tables/Schedules | |
Schedule of Balances due from Related Parties | December 31, 2020 2019 Due from related parties US$ US$ Value Exchange International Limited (i) 1,269,620 534,806 Cucumbuy.com Limited (ii) 30,769 SmartMyWays Co., Limited (iii) 30,769 - Retail Intelligent Unit Limited (iv) 12,308 - 1,343,466 534,806 Due to related parties AppMyWays Co., Limited (v) 253,063 - Mr. Edmund Yeung (vi) - 32,909 Mr. Johan Pehrson (vii) 10,000 - 263,063 32,909 |
Note 15 - Related party and s_3
Note 15 - Related party and shareholder transactions: Schedule of Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tables/Schedules | |
Schedule of Related Party Transactions | Year end December 31, 2020 2019 US$ US$ Subcontracting fees paid to Value Exchange International Limited (i) - (16,910) AppMyWays Co., Limited (v) (771,538) - ValueX International Pte. Ltd. (viii) - (1,769) Service income received from Value Exchange International Limited (i) 1,117 351,903 AppMyWays Co., Limited (v) 788,987 - ValueX International Pte. Ltd. (viii) 159,581 3,035 Value E Consultant International (M) Sdn. Bhd (ix) 18,069 80,483 TAP Technology (HK) Limited (x) 262,821 - Service income paid to Cucumbuy.com Limited (ii) (41,216) (30,769) TAP Technology (HK) Limited (x) - (155,696) Interest expenses payable to Mr. Edmund Yeung (vi) - (2,371) Management fees received from Value Exchange International Limited (i) 49,700 154,870 Cucumbuy.com Limited (ii) 30,769 - SmartMyWays Co., Limited (iii) 30,769 - Retail Intelligent Unit Limited (vi) 12,308 - TAP Technology (HK) Limited (x) 30,769 - |
Note 16 - Concentration of ri_2
Note 16 - Concentration of risks: Schedule of Concentration of risks (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tables/Schedules | |
Schedule of Concentration of risks | The following individual customer accounted for 10% or more of the Companys revenues for the years ended December 31, 2020 and 2019: 2020 2019 DXC Technology Enterprise Services (Hong Kong) Limited 52.4% - Wuhan Watson's Personal Care Stores Co., Limited 8.1% 29.1 % Aisino Wincor Nixdorf Retail & Banking Systems (Shanghai) Co., Ltd. Company 9.9% 28.8 % Fujitsu Hong Kong Limited 4.6% 11.9% Individual customer accounts receivable that represented 10% or more of total accounts receivable as of December 31, 2020 and 2019 were as follows: Percentage of accounts receivable as of December 31, 2020 2019 Wuhan Watson's Personal Care Stores Co., Limited 0.1% 20.0% Aisino Wincor Nixdorf Retail & Banking Systems (Shanghai) Co., Ltd. Company 10.6% 19.0% Wincor Nixdorf (Hong Kong) Limited 13.5% 14.8% Robinsons Retail Group 37.1% 14.0% |
Note 1 - Organization and des_2
Note 1 - Organization and description of business (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Details | |
Entity Incorporation, State or Country Code | NV |
Entity Incorporation, Date of Incorporation | Jun. 26, 2007 |
Note 2 - Accounting policies_14
Note 2 - Accounting policies: Revenue recognition: Schedule of Revenues (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues | $ 20,551,471 | $ 8,309,129 |
Systems development and integration | ||
Revenues | 11,268,268 | 72,062 |
Systems maintenance | ||
Revenues | 7,379,350 | 5,856,729 |
Sales of hardware and consumables | ||
Revenues | $ 1,903,853 | $ 2,380,338 |
Note 3 - Accounts receivable__2
Note 3 - Accounts receivable: Schedule of Accounts Receivable (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Details | ||
Accounts receivable | $ 603,689 | $ 777,348 |
Allowance for doubtful accounts | (4,253) | (3,788) |
Accounts receivable, less allowance for doubtful accounts | $ 599,436 | $ 773,560 |
Note 4 - Other receivables an_3
Note 4 - Other receivables and prepayments: Schedule of Other Receivables and Prepayments (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Details | ||
Prepaid expense | $ 201,435 | $ 140,635 |
Rental deposits | 98,355 | 74,506 |
Others | 114,552 | 42,032 |
Other receivables and prepayments | $ 414,342 | $ 257,173 |
Note 5 - Inventories_ Schedul_2
Note 5 - Inventories: Schedule of Inventories (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Details | ||
Inventory - Finished Goods | $ 238,147 | $ 219,592 |
Note 6 - Plant and equipment,_3
Note 6 - Plant and equipment, net: Schedule of Property, Plant, and Equipment (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment, Gross | $ 899,171 | $ 792,311 |
Less: accumulated depreciation | (542,150) | (438,485) |
Plant and equipment, net | 357,021 | 353,826 |
Leasehold improvements | ||
Property, Plant and Equipment, Gross | 78,224 | 73,322 |
Office furniture and equipment | ||
Property, Plant and Equipment, Gross | 254,681 | 145,002 |
Computer equipment | ||
Property, Plant and Equipment, Gross | 334,237 | 315,332 |
Computer software | ||
Property, Plant and Equipment, Gross | 43,319 | 39,548 |
Motor Vehicle | ||
Property, Plant and Equipment, Gross | 119,806 | 154,434 |
Building | ||
Property, Plant and Equipment, Gross | $ 68,904 | $ 64,673 |
Note 7 - Goodwill_ Schedule o_2
Note 7 - Goodwill: Schedule of Goodwill (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Details | ||
Goodwill arising from acquisition of TSI | $ 206,812 | $ 206,812 |
Note 8 - Leases_ Schedule of _2
Note 8 - Leases: Schedule of Operating lease right-of-use assets (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Details | ||
Operating lease right-of-use assets, net | $ 585,057 | $ 824,230 |
Note 8 - Leases_ Schedule of _3
Note 8 - Leases: Schedule of components of lease liabilities (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Details | ||
Lease liabilities, current | $ 303,687 | $ 356,960 |
Operating lease liabilities, non-current | 277,111 | 478,641 |
Present value of lease liabilities | $ 580,798 | $ 835,601 |
Note 8 - Leases_ Schedule of _4
Note 8 - Leases: Schedule of Future Minimum Rental Payments for Operating Leases (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Details | ||
Year one | $ 316,880 | $ 367,669 |
Year two | 187,971 | 344,461 |
Year three | 95,772 | 137,839 |
Year four | 0 | 31,302 |
Thereafter | 0 | 0 |
Total undiscounted cash flows | 600,623 | 881,271 |
Less: Imputed interest | (19,826) | (45,670) |
Present value of lease liabilities | $ 580,798 | $ 835,601 |
Note 9 - Intangible Assets_ S_2
Note 9 - Intangible Assets: Schedule of Finite-Lived Intangible Assets (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Details | ||
Customer relationship | $ 200,641 | $ 200,641 |
Less: accumulated amortization | $ (200,641) | $ (200,641) |
Note 11 - Other payables and _3
Note 11 - Other payables and accrued liabilities: Schedule of Other Payables and Accrued Liabilities (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Details | ||
Accrual | $ 737,141 | $ 519,853 |
Income taxes payable | 94,675 | 33,406 |
Accrued Liabilities, Current | $ 831,816 | $ 553,259 |
Note 12 - Deferred income_ Sc_2
Note 12 - Deferred income: Schedule of Deferred Income (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Details | ||
Service fees received in advance | $ 254,937 | $ 255,749 |