Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 08, 2021 | |
Details | ||
Registrant CIK | 0001417664 | |
Fiscal Year End | --12-31 | |
Document Type | 10-Q/A | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
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 | 26-3767331 | |
Entity Address, Address Line One | Unit 602, Block B, 6 Floor | |
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 | 04288 | |
Phone Fax Number Description | Registrant’s telephone number, including area code | |
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 Common Stock, Shares Outstanding | 36,156,130 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEETS (Ma
CONSOLIDATED BALANCE SHEETS (March 31, 2021 Unaudited) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS | ||
Cash | $ 253,533 | $ 523,337 |
Accounts receivable, less allowance for doubtful accounts | 1,285,191 | 599,436 |
Amounts due from a related party | 1,254,587 | 1,343,466 |
Other receivables and prepayments | 412,357 | 414,342 |
Inventories | 244,547 | 238,147 |
Total current assets | 3,450,215 | 3,118,728 |
NON-CURRENT ASSETS | ||
Plant and equipment, net | 318,250 | 357,021 |
Deferred tax assets | 52,033 | 71,681 |
Goodwill | 206,812 | 206,812 |
Operating lease right-of-use assets, net | 550,846 | 585,057 |
Total non-current assets | 1,127,941 | 1,220,571 |
Total assets | 4,578,156 | 4,339,299 |
CURRENT LIABILITIES | ||
Accounts payable | 572,788 | 1,038,518 |
Other payables and accrued liabilities | 680,117 | 831,817 |
Deferred income | 815,532 | 254,937 |
Amounts due to related parties | 215,893 | 263,063 |
Operating lease liabilities, current | 301,611 | 303,687 |
Short term bank loan | 39,342 | 38,874 |
Total current liabilities | 2,625,283 | 2,730,896 |
NON-CURRENT LIABILITIES | ||
Long term bank loan | 52,613 | 62,949 |
Operating lease liabilities, non-current | 242,491 | 277,111 |
Total non-current liabilities | 295,104 | 340,060 |
Total liabilities | 2,920,387 | 3,070,956 |
SHAREHOLDERS' EQUITY | ||
Preferred Stock, Value | 0 | 0 |
Common Stock, Value | 297 | 297 |
Additional paid-in capital | 690,589 | 690,589 |
Statutory reserves | 11,835 | 11,835 |
Retained earnings | 790,078 | 414,225 |
Accumulated other comprehensive losses | 92,509 | 97,944 |
Total shareholders' equity | 1,585,308 | 1,214,890 |
Non-controlling interest | 72,461 | 53,453 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,657,769 | 1,268,343 |
Total liabilities and shareholders' equity | $ 4,578,156 | $ 4,339,299 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (March 31, 2021 Unaudited) - Parenthetical - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
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 (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
NET REVENUES | ||
Service income | $ 2,203,772 | $ 8,202,911 |
COST OF SERVICES | ||
Cost of service income | (1,466,232) | (7,714,755) |
GROSS PROFIT | 737,540 | 488,156 |
OPERATING EXPENSES: | ||
General and administrative expenses | (434,878) | (438,891) |
Foreign exchange loss | 2,719 | 4,221 |
PROFIT FROM OPERATIONS | 305,381 | 53,486 |
OTHER INCOME (EXPENSES): | ||
Interest income | 165 | 115 |
Finance cost | (4,308) | (3,505) |
VAT refund | 2,213 | 43,942 |
Management fee income | 46,326 | 7,547 |
Others | 30,731 | 28,745 |
Total other income (expenses), net | 75,127 | 76,844 |
PROFIT BEFORE PROVISION FOR INCOME TAXES | 380,508 | 130,330 |
INCOME TAXES (EXPENSES) CREDIT | (3,897) | 6,138 |
NET PROFIT | 376,611 | 136,468 |
OTHER COMPREHENSIVE INCOME: | ||
Foreign currency translation adjustment | (5,435) | (14,755) |
COMPREHENSIVE INCOME | 371,176 | 121,713 |
Equity holders of the Company | 370,418 | 125,512 |
Non-controlling interests | $ 758 | $ (3,799) |
Earnings per share, basic and diluted | $ 0.01 | $ 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 | income | Total |
Equity Balance, Starting at Dec. 31, 2019 | $ 297 | $ 690,589 | $ 308,813 | $ 11,925 | $ 11,413 | $ 60,742 | $ 1,083,779 |
Shares Outstanding, Starting at Dec. 31, 2019 | 29,656,130 | ||||||
Transfer to statutory reserves | $ 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Change in noncontrolling interests | 0 | 0 | 0 | 0 | 7,012 | 0 | 7,012 |
Foreign currency translation adjustment | 0 | 0 | 0 | (221) | (347) | (14,755) | (15,323) |
Net Income (Loss) | $ 0 | 0 | 140,267 | 0 | (3,799) | 0 | 136,468 |
Shares Outstanding, Ending at Mar. 31, 2020 | 29,656,130 | ||||||
Equity Balance, Ending at Mar. 31, 2020 | $ 297 | 690,589 | 449,080 | 11,704 | 14,279 | 45,987 | 1,211,936 |
Equity Balance, Starting at Dec. 31, 2020 | $ 297 | 690,589 | 414,225 | 11,835 | 53,453 | 97,944 | 1,268,343 |
Shares Outstanding, Starting at Dec. 31, 2020 | 29,656,130 | ||||||
Transfer to statutory reserves | $ 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Change in noncontrolling interests | 0 | 0 | 0 | 0 | 18,600 | 0 | 18,600 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | (350) | (5,435) | (5,785) |
Net Income (Loss) | $ 0 | 0 | 375,853 | 0 | 758 | 0 | 376,611 |
Shares Outstanding, Ending at Mar. 31, 2021 | 29,656,130 | ||||||
Equity Balance, Ending at Mar. 31, 2021 | $ 297 | $ 690,589 | $ 790,078 | $ 11,835 | $ 72,461 | $ 92,509 | $ 1,657,769 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net profit | $ 376,611 | $ 136,468 |
Adjustments to reconcile net profit to cash (used in) provided by operating activities: | ||
Depreciation | 33,663 | 38,770 |
Amortization | 90,515 | 99,613 |
Interest income | (165) | (115) |
Finance costs on Right-of-use assets | 4,308 | 0 |
Deferred income taxes | 19,648 | 2,136 |
Changes in operating assets and liabilities | ||
Accounts receivable | (685,755) | 206,673 |
Other receivables and prepayments | 1,985 | 16,225 |
Amounts due from related parties | 88,879 | (894,440) |
Inventories | (6,400) | (2,524) |
Accounts payable | (465,730) | 830,190 |
Other payables and accrued liabilities | (151,700) | (62,616) |
Deferred income | 560,595 | (9,150) |
Amounts due to related parties | (47,170) | 0 |
Net cash (used in) provided by operating activities | (180,716) | 361,230 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of plant and equipment | (2,916) | (1,824) |
Interest received | 165 | 115 |
Net cash used in investing activities | (2,751) | (1,709) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from non-controlling interests | 18,600 | 7,012 |
Principal payments on operating leases | (89,368) | (3,505) |
Repayment of bank loan | (9,544) | 0 |
Net cash (used in) provided by financing activities | (80,312) | 3,507 |
EFFECT OF EXCHANGE RATE ON CASH | (6,025) | (116,256) |
(DECREASE) INCREASE IN CASH | (269,804) | 246,772 |
Cash and Cash Equivalents, at Carrying Value, Beginning Balance | 523,337 | 234,089 |
Cash and Cash Equivalents, at Carrying Value, Ending Balance | 253,533 | 480,861 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash (paid) refund for income taxes | $ (3,897) | $ 6,138 |
1. Nature of Operations and Con
1. Nature of Operations and Continuance of Business | 3 Months Ended |
Mar. 31, 2021 | |
Notes | |
1. Nature of Operations and Continuance of Business | 1. Nature of Operations and Continuance of Business Value Exchange International, Inc. (VEII, Company, we or us) was incorporated in the State of Nevada on June 26, 2007 under the name China Soaring, Inc.. The Companys principal business, conducted through its operating subsidiaries, is to provide customer-centric solutions for the retail industry in China, Hong Kong SAR and Manila, Philippines. By integrating market-leading Point-of-Sale/Point-of-Interaction (POS/POI), Merchandising, Customer Relations Management or CRM and related rewards, Locational Based (Global Positing System (GPS) and Indoor Positioning System (IPS)) Marketing, Customer Analytics and Business Intelligence solutions, VEII provides retailers with the capability to offer a consistent shopping experience across all marketing and sales channels, enabling them to easily and effectively manage the customer lifecycle on a one-to-one basis. VEII promotes itself as a single information technology (IT) source for retailers who want to extend existing traditional transaction processing to multiple points of interaction, including the Internet, kiosks and wireless devices. VEII services are focused on helping retailers realize the full benefits of Customer Chain Management with its suite of solutions that focus on the customer, on employees, and the infrastructure that supports the selling channel. VEIIs retail solutions are installed in an estimated 30%-40% of POS/POI-suitable retailers in Hong Kong and Manila, Philippines, processing tens of millions of transactions a year. Company is headquartered in Hong Kong and with offices in Shenzhen, Guangzhou, Shanghai, Beijing, China; Manila, Philippines; and Kuala Lumpur, Malaysia. 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 was recognized in this transaction. The consolidated financial statements after completion of the transaction includes 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. The Company provides IT Business services and solutions to the retail sector through three operating subsidiaries located in Hong Kong SAR and 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 Cumberbuy.com Limited (CUMBERBUY) on May 26, 2017. CUMBERBUY conducts consultancy services for IT Services and Solutions activities. 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) n Shanghai, PRC, under the laws of the PRC. SZH engages in IT services. As of March 31, 2021, the Company held four wholly-owned subsidiaries, and two subsidiaries with 51% ownership. |
2. Summary of Significant Accou
2. Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Notes | |
2. Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies a) 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 Companys fiscal year end is December 31st. The following entities were consolidated as of March 31, 2021: Place of incorporation Ownership percentage Value Exchange International, Inc. USA Parent Company Value Exchange Intl (China) Limited Hong Kong 100% Value Exchange Intl (Shanghai) Limited PRC 100% Value Exchange Intl (Hong Kong) Limited Hong Kong 100% TapServices, Inc. Philippines 100% Value Exchange Intl (Hunan) Limited PRC 51% Shanghai Zhaonan Hengan Information Technology Co., Ltd. PRC 51% b) 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 as of 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. c) 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. d) These interim unaudited consolidated financial statements have been prepared on the same basis as the annual financial statements and in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Companys consolidated financial position, results of operations and cash flows for the periods shown. The results of operations for such periods are not necessarily indicative of the results expected for a full year or for any future period. e) Receivables include trade accounts due from customers and other receivables such as cash advances to employees, utility deposits paid and advances 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 March 31, 2021 and December 31, 2020, there was allowance amount to Nil and $4,235 for uncollectible accounts receivable. Management believes that the remaining accounts receivable are collectable. f) Inventories are valued at the lower of cost and net realizable value. Cost for inventories is determined using the first-in, first-out method. Management reviews inventories for obsolescence or cost in excess of net realizable value periodically. The obsolescence, if any, is recorded as a provision against the inventory. The cost in excess of market value is written off and recorded as additional cost of sales. g) 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 h) Intangibles with a definite life, including customer relationships and goodwill were recorded in connection with the acquisition of TSI. Intangible assets are amortized based on their estimated economic lives using the straight-line method with estimated lives as follows: Estimated Economic Life Customer relationship 3 years Goodwill represents the excess of the cost of acquisition over the fair value of net assets acquired. Goodwill is not amortized, but is instead tested for impairment annually. i) Property, Plant, and Equipment 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. Impairment of Goodwill The carrying value of goodwill is evaluated annually or more frequently if events or circumstances indicate that an impairment loss may have occurred. Such circumstances could include, but are not limited to, a significant adverse change in business climate, increased competition or other economic conditions. Under FASB Accounting Standard Codification (ASC) Topic 350 Intangibles - Goodwill and Other, goodwill is tested at a reporting unit level. The impairment test involves a two-step process. The first step involves comparing the fair value of the reporting unit to which the goodwill is assigned to its carrying amount. If this comparison indicates that a reporting units estimated fair value is less than its carrying value, a second step is required. If applicable, the second step requires us to allocate the estimated fair value of the reporting unit to the estimated fair value of the reporting units net assets, with any fair value in excess of amounts allocated to such net assets representing the implied fair value of goodwill for that reporting unit. If the carrying value of the goodwill exceeds its fair value, the carrying value is written down by an amount equal to such excess. The goodwill impairment testing process involves the use of significant assumptions, estimates and judgments, and is subject to inherent uncertainties and subjectivity. Estimating a reporting units discounted cash flows involves the use of significant assumptions, estimates and judgments with respect to a variety of factors, including sales, gross margin and selling, general and administrative rates, capital expenditures, cash flows and the selection of an appropriate discount rate. Projected sales, gross margin and selling, general and administrative expense rate assumptions and capital expenditures are based on our annual business plans and other forecasted results. Discount rates reflect market-based estimates of the risks associated with the projected cash flows of the reporting unit directly resulting from the use of its assets in its operations. These estimates are based on the best information available to us as of the date of the impairment assessment. j) 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. There was no asset or liability measured at fair value on a non-recurring basis as of March 31, 2021 and December 31, 2020. k) 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. l) 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. m) 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 three months period ended March 31, 2021 and 2020. Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 US$ US$ (unaudited) (unaudited) NET REVENUES Service income - systems development and integration 34,077 6,210,065 - systems maintenance 1,608,466 1,495,110 - sales of hardware and consumables 561,229 497,736 2,203,772 8,202,911 Billings in excess of revenues recognized are recorded as deferred revenue. n) 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 period incurred. o) 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. p) 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 three months ended March 31, 2021 and 2020 were insignificant. q) Shipping and handling cost incurred to ship computer products to customers are included in selling expenses. Shipping and handling expenses for the three months ended March 31, 2021 and 2020 were insignificant. r) Research and development costs are expensed as incurred and are included in general and administrative expenses. Research and development costs for the three months ended March 31, 2021 and 2020 were insignificant. s) 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. Quarter ended March 31, 2021 March 31, 2020 RMB : USD exchange rate 6.5152 7.0131 average period ended HKD : USD exchange rate 7.800 7.800 average period ended PESO : USD exchange rate 47.7064 50.3182 average period ended Quarter ended March 31, 2021 December 31, 2020 RMB : USD exchange rate 6.5864 6.5442 HKD : USD exchange rate 7.800 7.800 PESO : USD exchange rate 47.7064 47.7064 t) The Company records stock-based compensation in accordance with ASC 718, Compensation Stock Compensation using the fair value method. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. Equity instruments issued to employees and the cost of the services received as consideration are measured and recognized based on the fair value of the equity instruments issued. u) 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. v) 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. w) 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 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. |
3. Accounts receivable
3. Accounts receivable | 3 Months Ended |
Mar. 31, 2021 | |
Notes | |
3. Accounts receivable | 3. Accounts receivable Accounts receivable consisted of the following as of March 31, 2021 and December 31, 2020: March 31, December 31, 2021 2020 US$ US$ (unaudited) Accounts receivable 1,285,191 603,689 Allowance for doubtful accounts - (4,253) 1,285,191 599,436 All of the Companys customers are located in the PRC, Hong Kong and Manila, 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. |
4. Other receivables and prepay
4. Other receivables and prepayments | 3 Months Ended |
Mar. 31, 2021 | |
Notes | |
4. Other receivables and prepayments | 4. Other receivables and prepayments Other receivables and prepayments consisted of the following as of March 31, 2021 and December 31, 2020: March 31, December 31, 2021 2020 US$ US$ (unaudited) Deposits and prepaid expense 332,606 299,790 Others 79,751 114,552 412,357 414,342 |
5. Inventories
5. Inventories | 3 Months Ended |
Mar. 31, 2021 | |
Notes | |
5. Inventories | 5. Inventories Inventories as of March 31, 2021 and December 31, 2020 consisted of the following: March 31, December 31, 2021 2020 US$ US$ (unaudited) Finished goods 244,547 238,147 |
6. Plant and equipment, net
6. Plant and equipment, net | 3 Months Ended |
Mar. 31, 2021 | |
Notes | |
6. Plant and equipment, net | 6. Plant and equipment, net Plant and equipment consisted of the following as of March 31, 2021 and December 31, 2020: March 31, December 31, 2021 2020 US$ US$ (unaudited) Leasehold improvements 77,749 78,224 Office furniture and equipment 251,569 254,681 Computer equipment 334,061 334,237 Computer software 43,043 43,319 Motor Vehicle 119,806 119,806 Building 68,904 68,904 Total 895,132 899,171 Less: accumulated depreciation (576,882) (542,150) Plant and equipment, net 318,250 357,021 Depreciation expense for the three months period ended March 31, 2021 and 2020 amounted to $33,663 and $38,770, respectively. For the three months period ended March 31, 2021 and 2020, no interest expense was capitalized into plant and equipment. |
7. Goodwill
7. Goodwill | 3 Months Ended |
Mar. 31, 2021 | |
Notes | |
7. Goodwill | 7. Goodwill Goodwill consisted of the following as of March 31, 2021 and December 31, 2020: March 31, December 31, 2021 2020 US$ US$ (unaudited) Goodwill arising from acquisition of TSI 206,812 206,812 |
8. Leases
8. Leases | 3 Months Ended |
Mar. 31, 2021 | |
Notes | |
8. Leases | 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 2020 and 2024. 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. March 31, December 31, 2021 2020 US$ US$ (unaudited) Operating lease right-of-use assets, net 544,102 580,798 The components of operating lease liabilities are as follows: March 31, December 31, 2021 2020 US$ US$ (unaudited) Lease liabilities, current 301,611 303,687 Lease liabilities, non-current 242,491 277,111 Present value of lease liabilities 544,102 580,798 Total operating lease cost for the three months period ended March 31, 2021 and 2020 amounted to $89,368 and 3,505, respectively. Weighted-average remaining lease term is 1.64 years, and weighted-average discount rate is 3%. The following is a schedule, by years, of maturities of lease liabilities as of December 31, 2020: March 31, December 31, 2021 2020 US$ US$ (unaudited) Year one 313,553 316,880 Year two 167,011 187,971 Year three 81,064 95,772 Year four - - Thereafter - - Total undiscounted cash flows 561,628 600,623 Less: Imputed interest (17,526) (19,826) Present value of lease liabilities 544,102 580,798 |
9. Bank loan
9. Bank loan | 3 Months Ended |
Mar. 31, 2021 | |
Notes | |
9. Bank loan | 9. Bank loan Bank loan and accruals consisted of the following as of March 31, 2021 and December 31, 2020: March 31, December 31, 2021 2020 US$ US$ (unaudited) Long term bank loan 91,955 101,823 Less: Current portion of long term bank loan (39,342) (38,874) 52,613 62,949 Current portion of long term bank loan 39,342 38,874 As of March 31, 2021 and December 31, 2020, the above bank loan secured by property and equipment with net carrying amount of $38,959 and $44,533 respectively. |
10. Other payables and accrued
10. Other payables and accrued liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Notes | |
10. Other payables and accrued liabilities | 10. Other payables and accrued liabilities Other payables and accruals consisted of the following as of March 31, 2021 and December 31, 2020: March 31, December 31, 2021 2020 US$ US$ (unaudited) Accrual 651,421 737,142 Income taxes payable 28,696 94,675 680,117 831,817 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 subsidiaries are 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. |
11. Deferred income
11. Deferred income | 3 Months Ended |
Mar. 31, 2021 | |
Notes | |
11. Deferred income | 11. Deferred income Deferred income consisted of the following as of March 31, 2021 and December 31, 2020: March 31, December 31, 2021 2020 US$ US$ (unaudited) Service fees received in advance 815,532 254,937 |
12. Statutory reserves
12. Statutory reserves | 3 Months Ended |
Mar. 31, 2021 | |
Notes | |
12. Statutory reserves | 12. 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. |
13. Related party and sharehold
13. Related party and shareholder transactions | 3 Months Ended |
Mar. 31, 2021 | |
Notes | |
13. Related party and shareholder transactions | 13. 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 March 31, December 31, 2021 2020 US$ US$ (unaudited) Due from related parties Value Exchange International Limited (i) 1,154,587 1,269,620 Cucumbuy.com Limited (ii) 38,462 30,769 SmartMyWays Co., Limited (iii) 38,462 30,769 Retail Intelligent Unit Limited (iv) 15,384 12,308 TAP Technology (HK) Limited (v) 7,692 - 1,254,587 1,343,466 Due to related parties AppMyWays Co., Limited (vi) 213,393 253,063 Mr. Johan Pehrson (vii) 2,500 10,000 215,893 263,063 Related party transactions: Three Months Three Months Ended Ended March 31, March 31, 2020 2020 US$ US$ (unaudited) (unaudited) Service income received from 24,910 - AppMyWays Co., Limited (vi) ValueX International Pte. Ltd. (viii) - 145,708 Smartmyways Co., Limited (iii) - 23,204 Subcontracting fees paid to (16,747) - Value E Consultant International (M) Sdn. Bhd (ix) Management fees received from Value Exchange International Limited (i) 20,172 7,547 Cucumbuy.com Limited (ii) 7,692 - SmartMyWays Co., Limited (iii) 7,692 - Retail Intelligent Unit Limited (iv) 3,077 - TAP Technology (HK) Limited (v) 7,692 - |
2. Summary of Significant Acc_2
2. Summary of Significant Accounting Policies: a) Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
a) Basis of Presentation | a) 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 Companys fiscal year end is December 31st. The following entities were consolidated as of March 31, 2021: Place of incorporation Ownership percentage Value Exchange International, Inc. USA Parent Company Value Exchange Intl (China) Limited Hong Kong 100% Value Exchange Intl (Shanghai) Limited PRC 100% Value Exchange Intl (Hong Kong) Limited Hong Kong 100% TapServices, Inc. Philippines 100% Value Exchange Intl (Hunan) Limited PRC 51% Shanghai Zhaonan Hengan Information Technology Co., Ltd. PRC 51% |
2. Summary of Significant Acc_3
2. Summary of Significant Accounting Policies: b) Use of Estimates (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
b) Use of Estimates | b) 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 as of 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. |
2. Summary of Significant Acc_4
2. Summary of Significant Accounting Policies: c) Cash and Cash Equivalents (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
c) Cash and Cash Equivalents | c) 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. |
2. Summary of Significant Acc_5
2. Summary of Significant Accounting Policies: d) Interim Financial Statements (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
d) Interim Financial Statements | d) These interim unaudited consolidated financial statements have been prepared on the same basis as the annual financial statements and in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Companys consolidated financial position, results of operations and cash flows for the periods shown. The results of operations for such periods are not necessarily indicative of the results expected for a full year or for any future period. |
2. Summary of Significant Acc_6
2. Summary of Significant Accounting Policies: e) Accounts receivable and other receivables (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
e) Accounts receivable and other receivables | e) Receivables include trade accounts due from customers and other receivables such as cash advances to employees, utility deposits paid and advances 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 March 31, 2021 and December 31, 2020, there was allowance amount to Nil and $4,235 for uncollectible accounts receivable. Management believes that the remaining accounts receivable are collectable. |
2. Summary of Significant Acc_7
2. Summary of Significant Accounting Policies: f) Inventories (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
f) Inventories | f) Inventories are valued at the lower of cost and net realizable value. Cost for inventories is determined using the first-in, first-out method. Management reviews inventories for obsolescence or cost in excess of net realizable value periodically. The obsolescence, if any, is recorded as a provision against the inventory. The cost in excess of market value is written off and recorded as additional cost of sales. |
2. Summary of Significant Acc_8
2. Summary of Significant Accounting Policies: g) Plant and equipment (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
g) Plant and equipment | g) 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 |
2. Summary of Significant Acc_9
2. Summary of Significant Accounting Policies: h) Goodwill and intangibles (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
h) Goodwill and intangibles | h) Intangibles with a definite life, including customer relationships and goodwill were recorded in connection with the acquisition of TSI. Intangible assets are amortized based on their estimated economic lives using the straight-line method with estimated lives as follows: Estimated Economic Life Customer relationship 3 years Goodwill represents the excess of the cost of acquisition over the fair value of net assets acquired. Goodwill is not amortized, but is instead tested for impairment annually. |
2. Summary of Significant Ac_10
2. Summary of Significant Accounting Policies: i) Impairment of long-lived assets (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
i) Impairment of long-lived assets | i) Property, Plant, and Equipment 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. Impairment of Goodwill The carrying value of goodwill is evaluated annually or more frequently if events or circumstances indicate that an impairment loss may have occurred. Such circumstances could include, but are not limited to, a significant adverse change in business climate, increased competition or other economic conditions. Under FASB Accounting Standard Codification (ASC) Topic 350 Intangibles - Goodwill and Other, goodwill is tested at a reporting unit level. The impairment test involves a two-step process. The first step involves comparing the fair value of the reporting unit to which the goodwill is assigned to its carrying amount. If this comparison indicates that a reporting units estimated fair value is less than its carrying value, a second step is required. If applicable, the second step requires us to allocate the estimated fair value of the reporting unit to the estimated fair value of the reporting units net assets, with any fair value in excess of amounts allocated to such net assets representing the implied fair value of goodwill for that reporting unit. If the carrying value of the goodwill exceeds its fair value, the carrying value is written down by an amount equal to such excess. The goodwill impairment testing process involves the use of significant assumptions, estimates and judgments, and is subject to inherent uncertainties and subjectivity. Estimating a reporting units discounted cash flows involves the use of significant assumptions, estimates and judgments with respect to a variety of factors, including sales, gross margin and selling, general and administrative rates, capital expenditures, cash flows and the selection of an appropriate discount rate. Projected sales, gross margin and selling, general and administrative expense rate assumptions and capital expenditures are based on our annual business plans and other forecasted results. Discount rates reflect market-based estimates of the risks associated with the projected cash flows of the reporting unit directly resulting from the use of its assets in its operations. These estimates are based on the best information available to us as of the date of the impairment assessment. |
2. Summary of Significant Ac_11
2. Summary of Significant Accounting Policies: j) Fair value of financial instruments (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
j) Fair value of financial instruments | j) 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. There was no asset or liability measured at fair value on a non-recurring basis as of March 31, 2021 and December 31, 2020. |
2. Summary of Significant Ac_12
2. Summary of Significant Accounting Policies: k) Comprehensive income (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
k) Comprehensive income | k) 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. |
2. Summary of Significant Ac_13
2. Summary of Significant Accounting Policies: l) Earnings per share (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
l) Earnings per share | l) 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. |
2. Summary of Significant Ac_14
2. Summary of Significant Accounting Policies: m) Revenue recognition (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
m) Revenue recognition | m) 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 three months period ended March 31, 2021 and 2020. Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 US$ US$ (unaudited) (unaudited) NET REVENUES Service income - systems development and integration 34,077 6,210,065 - systems maintenance 1,608,466 1,495,110 - sales of hardware and consumables 561,229 497,736 2,203,772 8,202,911 Billings in excess of revenues recognized are recorded as deferred revenue. |
2. Summary of Significant Ac_15
2. Summary of Significant Accounting Policies: n) Income taxes (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
n) Income taxes | n) 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 period incurred. |
2. Summary of Significant Ac_16
2. Summary of Significant Accounting Policies: o) Operating leases (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
o) Operating leases | o) 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. |
2. Summary of Significant Ac_17
2. Summary of Significant Accounting Policies: p) Advertising costs (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
p) Advertising costs | p) 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 three months ended March 31, 2021 and 2020 were insignificant. |
2. Summary of Significant Ac_18
2. Summary of Significant Accounting Policies: q) Shipping and handling (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
q) Shipping and handling | q) Shipping and handling cost incurred to ship computer products to customers are included in selling expenses. Shipping and handling expenses for the three months ended March 31, 2021 and 2020 were insignificant. |
2. Summary of Significant Ac_19
2. Summary of Significant Accounting Policies: r) Research and development costs (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
r) Research and development costs | r) Research and development costs are expensed as incurred and are included in general and administrative expenses. Research and development costs for the three months ended March 31, 2021 and 2020 were insignificant. |
2. Summary of Significant Ac_20
2. Summary of Significant Accounting Policies: s) Foreign currency translation (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
s) Foreign currency translation | s) 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. Quarter ended March 31, 2021 March 31, 2020 RMB : USD exchange rate 6.5152 7.0131 average period ended HKD : USD exchange rate 7.800 7.800 average period ended PESO : USD exchange rate 47.7064 50.3182 average period ended Quarter ended March 31, 2021 December 31, 2020 RMB : USD exchange rate 6.5864 6.5442 HKD : USD exchange rate 7.800 7.800 PESO : USD exchange rate 47.7064 47.7064 |
2. Summary of Significant Ac_21
2. Summary of Significant Accounting Policies: t) Stock-based Compensation (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
t) Stock-based Compensation | t) The Company records stock-based compensation in accordance with ASC 718, Compensation Stock Compensation using the fair value method. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. Equity instruments issued to employees and the cost of the services received as consideration are measured and recognized based on the fair value of the equity instruments issued. |
2. Summary of Significant Ac_22
2. Summary of Significant Accounting Policies: u) Commitments and contingencies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
u) Commitments and contingencies | u) 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. |
2. Summary of Significant Ac_23
2. Summary of Significant Accounting Policies: v) Segment Reporting (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
v) Segment Reporting | v) 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. |
2. Summary of Significant Ac_24
2. Summary of Significant Accounting Policies: w) Recent accounting pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
w) Recent accounting pronouncements | w) 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 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. |
2. Summary of Significant Ac_25
2. Summary of Significant Accounting Policies: a) Basis of Presentation: Schedule of Consolidated Entities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Schedule of Consolidated Entities | Place of incorporation Ownership percentage Value Exchange International, Inc. USA Parent Company Value Exchange Intl (China) Limited Hong Kong 100% Value Exchange Intl (Shanghai) Limited PRC 100% Value Exchange Intl (Hong Kong) Limited Hong Kong 100% TapServices, Inc. Philippines 100% Value Exchange Intl (Hunan) Limited PRC 51% Shanghai Zhaonan Hengan Information Technology Co., Ltd. PRC 51% |
2. Summary of Significant Ac_26
2. Summary of Significant Accounting Policies: g) Plant and equipment: Schedule of Estimated Useful Life (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 |
2. Summary of Significant Ac_27
2. Summary of Significant Accounting Policies: h) Goodwill and intangibles: Schedule of Estimated Economic Life of Goodwill and Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Schedule of Estimated Economic Life of Goodwill and Intangibles | Estimated Economic Life Customer relationship 3 years |
2. Summary of Significant Ac_28
2. Summary of Significant Accounting Policies: m) Revenue recognition: Schedule of Revenues (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Schedule of Revenues | Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 US$ US$ (unaudited) (unaudited) NET REVENUES Service income - systems development and integration 34,077 6,210,065 - systems maintenance 1,608,466 1,495,110 - sales of hardware and consumables 561,229 497,736 2,203,772 8,202,911 |
3. Accounts receivable_ Schedul
3. Accounts receivable: Schedule of Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Schedule of Accounts Receivable | March 31, December 31, 2021 2020 US$ US$ (unaudited) Accounts receivable 1,285,191 603,689 Allowance for doubtful accounts - (4,253) 1,285,191 599,436 |
4. Other receivables and prep_2
4. Other receivables and prepayments: Schedule of Other Receivables and Prepayments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Schedule of Other Receivables and Prepayments | March 31, December 31, 2021 2020 US$ US$ (unaudited) Deposits and prepaid expense 332,606 299,790 Others 79,751 114,552 412,357 414,342 |
5. Inventories_ Schedule of Inv
5. Inventories: Schedule of Inventories (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Schedule of Inventories | March 31, December 31, 2021 2020 US$ US$ (unaudited) Finished goods 244,547 238,147 |
6. Plant and equipment, net_ Sc
6. Plant and equipment, net: Schedule of Property, Plant, and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Schedule of Property, Plant, and Equipment | March 31, December 31, 2021 2020 US$ US$ (unaudited) Leasehold improvements 77,749 78,224 Office furniture and equipment 251,569 254,681 Computer equipment 334,061 334,237 Computer software 43,043 43,319 Motor Vehicle 119,806 119,806 Building 68,904 68,904 Total 895,132 899,171 Less: accumulated depreciation (576,882) (542,150) Plant and equipment, net 318,250 357,021 |
7. Goodwill_ Schedule of Goodwi
7. Goodwill: Schedule of Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Schedule of Goodwill | March 31, December 31, 2021 2020 US$ US$ (unaudited) Goodwill arising from acquisition of TSI 206,812 206,812 |
8. Leases_ Schedule of Operatin
8. Leases: Schedule of Operating lease right-of-use assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Schedule of Operating lease right-of-use assets | March 31, December 31, 2021 2020 US$ US$ (unaudited) Operating lease right-of-use assets, net 544,102 580,798 |
8. Leases_ Schedule of componen
8. Leases: Schedule of components of lease liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Schedule of components of lease liabilities | March 31, December 31, 2021 2020 US$ US$ (unaudited) Lease liabilities, current 301,611 303,687 Lease liabilities, non-current 242,491 277,111 Present value of lease liabilities 544,102 580,798 |
8. Leases_ Schedule of Future M
8. Leases: Schedule of Future Minimum Rental Payments for Operating Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Schedule of Future Minimum Rental Payments for Operating Leases | March 31, December 31, 2021 2020 US$ US$ (unaudited) Year one 313,553 316,880 Year two 167,011 187,971 Year three 81,064 95,772 Year four - - Thereafter - - Total undiscounted cash flows 561,628 600,623 Less: Imputed interest (17,526) (19,826) Present value of lease liabilities 544,102 580,798 |
9. Bank loan_ Schedule of Bank
9. Bank loan: Schedule of Bank Loan (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Schedule of Bank Loan | March 31, December 31, 2021 2020 US$ US$ (unaudited) Long term bank loan 91,955 101,823 Less: Current portion of long term bank loan (39,342) (38,874) 52,613 62,949 Current portion of long term bank loan 39,342 38,874 |
10. Other payables and accrue_2
10. Other payables and accrued liabilities: Schedule of Other Payables and Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Schedule of Other Payables and Accrued Liabilities | March 31, December 31, 2021 2020 US$ US$ (unaudited) Accrual 651,421 737,142 Income taxes payable 28,696 94,675 680,117 831,817 |
11. Deferred income_ Schedule o
11. Deferred income: Schedule of Deferred Income (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Schedule of Deferred Income | March 31, December 31, 2021 2020 US$ US$ (unaudited) Service fees received in advance 815,532 254,937 |
13. Related party and shareho_2
13. Related party and shareholder transactions: Schedule of Balances due from Related Parties (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Schedule of Balances due from Related Parties | March 31, December 31, 2021 2020 US$ US$ (unaudited) Due from related parties Value Exchange International Limited (i) 1,154,587 1,269,620 Cucumbuy.com Limited (ii) 38,462 30,769 SmartMyWays Co., Limited (iii) 38,462 30,769 Retail Intelligent Unit Limited (iv) 15,384 12,308 TAP Technology (HK) Limited (v) 7,692 - 1,254,587 1,343,466 Due to related parties AppMyWays Co., Limited (vi) 213,393 253,063 Mr. Johan Pehrson (vii) 2,500 10,000 215,893 263,063 |
13. Related party and shareho_3
13. Related party and shareholder transactions: Schedule of Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Schedule of Related Party Transactions | Three Months Three Months Ended Ended March 31, March 31, 2020 2020 US$ US$ (unaudited) (unaudited) Service income received from 24,910 - AppMyWays Co., Limited (vi) ValueX International Pte. Ltd. (viii) - 145,708 Smartmyways Co., Limited (iii) - 23,204 Subcontracting fees paid to (16,747) - Value E Consultant International (M) Sdn. Bhd (ix) Management fees received from Value Exchange International Limited (i) 20,172 7,547 Cucumbuy.com Limited (ii) 7,692 - SmartMyWays Co., Limited (iii) 7,692 - Retail Intelligent Unit Limited (iv) 3,077 - TAP Technology (HK) Limited (v) 7,692 - |
1. Nature of Operations and C_2
1. Nature of Operations and Continuance of Business (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Details | |
Entity Incorporation, State or Country Code | NV |
Entity Incorporation, Date of Incorporation | Jun. 26, 2007 |
2. Summary of Significant Ac_29
2. Summary of Significant Accounting Policies: m) Revenue recognition: Schedule of Revenues (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues | $ 2,203,772 | $ 8,202,911 |
Systems development and integration | ||
Revenues | 34,077 | 6,210,065 |
Systems maintenance | ||
Revenues | 1,608,466 | 1,495,110 |
Sales of hardware and consumables | ||
Revenues | $ 561,229 | $ 497,736 |
3. Accounts receivable_ Sched_2
3. Accounts receivable: Schedule of Accounts Receivable (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Details | ||
Accounts receivable | $ 1,285,191 | $ 603,689 |
Allowance for doubtful accounts | 0 | (4,253) |
Accounts receivable, less allowance for doubtful accounts | $ 1,285,191 | $ 599,436 |
4. Other receivables and prep_3
4. Other receivables and prepayments: Schedule of Other Receivables and Prepayments (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Details | ||
Deposits and prepaid expense | $ 332,606 | $ 299,790 |
Others | 79,751 | 114,552 |
Other receivables and prepayments | $ 412,357 | $ 414,342 |
5. Inventories_ Schedule of I_2
5. Inventories: Schedule of Inventories (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Details | ||
Inventory - Finished Goods | $ 244,547 | $ 238,147 |
6. Plant and equipment, net_ _2
6. Plant and equipment, net: Schedule of Property, Plant, and Equipment (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment, Gross | $ 895,132 | $ 899,171 |
Less: accumulated depreciation | (576,882) | (542,150) |
Plant and equipment, net | 318,250 | 357,021 |
Leasehold improvements | ||
Property, Plant and Equipment, Gross | 77,749 | 78,224 |
Office furniture and equipment | ||
Property, Plant and Equipment, Gross | 251,569 | 254,681 |
Computer equipment | ||
Property, Plant and Equipment, Gross | 334,061 | 334,237 |
Computer software | ||
Property, Plant and Equipment, Gross | 43,043 | 43,319 |
Motor Vehicle | ||
Property, Plant and Equipment, Gross | 119,806 | 119,806 |
Building | ||
Property, Plant and Equipment, Gross | $ 68,904 | $ 68,904 |
7. Goodwill_ Schedule of Good_2
7. Goodwill: Schedule of Goodwill (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Details | ||
Goodwill arising from acquisition of TSI | $ 206,812 | $ 206,812 |
8. Leases_ Schedule of Operat_2
8. Leases: Schedule of Operating lease right-of-use assets (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Details | ||
Operating lease right-of-use assets, net | $ 544,102 | $ 580,798 |
8. Leases_ Schedule of compon_2
8. Leases: Schedule of components of lease liabilities (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Details | ||
Lease liabilities, current | $ 301,611 | $ 303,687 |
Operating lease liabilities, non-current | 242,491 | 277,111 |
Present value of lease liabilities | $ 544,102 | $ 580,798 |
8. Leases_ Schedule of Future_2
8. Leases: Schedule of Future Minimum Rental Payments for Operating Leases (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Details | ||
Year one | $ 313,553 | $ 316,880 |
Year two | 167,011 | 187,971 |
Year three | 81,064 | 95,772 |
Year four | 0 | 0 |
Thereafter | 0 | 0 |
Total undiscounted cash flows | 561,628 | 600,623 |
Less: Imputed interest | (17,526) | (19,826) |
Present value of lease liabilities | $ 544,102 | $ 580,798 |
10. Other payables and accrue_3
10. Other payables and accrued liabilities: Schedule of Other Payables and Accrued Liabilities (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Details | ||
Accrual | $ 651,421 | $ 737,142 |
Income taxes payable | 28,696 | 94,675 |
Accrued Liabilities, Current | $ 680,117 | $ 831,817 |
11. Deferred income_ Schedule_2
11. Deferred income: Schedule of Deferred Income (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Details | ||
Service fees received in advance | $ 815,532 | $ 254,937 |
13. Related party and shareho_4
13. Related party and shareholder transactions: Schedule of Balances due from Related Parties (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Amounts due from a related party | $ 1,254,587 | $ 1,343,466 |
Due to Related Parties | 215,893 | 263,063 |
Value Exchange International Limited (i) | ||
Amounts due from a related party | 1,154,587 | 1,269,620 |
Cucumbuy.com Limited (ii) | ||
Amounts due from a related party | 38,462 | 30,769 |
SmartMyWays Co., Limited (iii) | ||
Amounts due from a related party | 38,462 | 30,769 |
Retail Intelligent Unit Limited (iv) | ||
Amounts due from a related party | 15,384 | 12,308 |
TAP Technology (HK) Limited (v) | ||
Amounts due from a related party | 7,692 | 0 |
AppMyWays Co., Limited (vi) | ||
Due to Related Parties | 213,393 | 253,063 |
Mr. Johan Pehrson (vii) | ||
Due to Related Parties | $ 2,500 | $ 10,000 |
13. Related party and shareho_5
13. Related party and shareholder transactions: Schedule of Related Party Transactions (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
ValueX International Pte. Ltd. (viii) | ||
Service income received | $ 0 | $ 145,708 |
Smartmyways Co., Limited (iii) | ||
Service income received | 0 | 23,204 |
Management fees received | 7,692 | 0 |
Value Exchange International Limited (i) | ||
Management fees received | 20,172 | 7,547 |
Cucumbuy.com Limited (ii) | ||
Management fees received | 7,692 | 0 |
Retail Intelligent Unit Limited (iv) | ||
Management fees received | 3,077 | 0 |
TAP Technology (HK) Limited (v) | ||
Management fees received | $ 7,692 | $ 0 |