Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 31, 2023 | Dec. 31, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 000-53537 | ||
Entity Registrant Name | VALUE EXCHANGE INTERNATIONAL, INC. | ||
Entity Central Index Key | 0001417664 | ||
Entity Tax Identification Number | 20-2819367 | ||
Entity Incorporation, State or Country Code | NV | ||
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, Country | HK | ||
Entity Address, Postal Zip Code | N.T | ||
City Area Code | 852 | ||
Local Phone Number | 2950 4288 | ||
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 | $ 2,620,000 | ||
Entity Common Stock, Shares Outstanding | 36,156,130 | ||
Documents Incorporated by Reference [Text Block] | None. | ||
ICFR Auditor Attestation Flag | false | ||
Auditor Firm ID | 957 | ||
Auditor Name | Zhen Hui Certified Public Accountants | ||
Auditor Location | Hong Kong, China |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
CURRENT ASSETS | ||
Cash | $ 208,776 | $ 289,398 |
Accounts receivable, less allowance for doubtful accounts | 1,133,058 | 858,617 |
Amounts due from related parties | 2,400,028 | 1,642,488 |
Other receivables and prepayments | 472,849 | 314,650 |
Inventories | 225,662 | 389,259 |
Total current assets | 4,440,373 | 3,494,412 |
NON-CURRENT ASSETS | ||
Plant and equipment, net | 499,497 | 547,930 |
Deferred tax assets | 38,110 | 44,038 |
Goodwill | 206,812 | 206,812 |
Operating lease right-of-use assets, net | 555,069 | 437,822 |
Intangible assets | ||
Total non-current assets | 1,299,488 | 1,236,602 |
Total assets | 5,739,861 | 4,731,014 |
CURRENT LIABILITIES | ||
Accounts payable | 867,425 | 689,535 |
Other payables and accrued liabilities | 681,564 | 965,388 |
Deferred income | 291,171 | 236,612 |
Amounts due to related parties | 16,918 | 2,500 |
Operating lease liabilities, current | 423,490 | 258,647 |
Current portion of long term bank loan and short term bank loan | 1,039,488 | 39,143 |
Total current liabilities | 3,320,056 | 2,191,825 |
NON-CURRENT LIABILITIES | ||
Deferred tax liabilities | 4,821 | 2,205 |
Long term bank loan | 42,649 | 37,335 |
Operating lease liabilities, non-current | 117,592 | 152,533 |
Total non-current liabilities | 165,062 | 192,073 |
Total liabilities | 3,485,118 | 2,383,898 |
SHAREHOLDERS’ EQUITY | ||
Preferred stock, 100,000,000 shares authorized, $0.00001 par value; no shares issued and outstanding | ||
Common stock, 500,000,000 shares authorized, $0.00001 par value; 36,156,130 and 36,156,130 shares issued and outstanding, respectively | 362 | 362 |
Additional paid-in capital | 1,340,524 | 1,340,524 |
Statutory reserves | 11,835 | 11,835 |
Retained earnings | 849,471 | 867,770 |
Accumulated other comprehensive loss | (76,986) | 8,822 |
Shareholders equity | 2,125,206 | 2,229,313 |
Non-controlling interest | 129,537 | 117,803 |
Total shareholders’ equity | 2,254,743 | 2,347,116 |
Total liabilities and shareholders’ equity | $ 5,739,861 | $ 4,731,014 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
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 | 500,000,000 | 500,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.00001 | $ 0.00001 |
Common Stock, Shares, Issued | 36,156,130 | 36,156,130 |
Common Stock, Shares, Outstanding | 36,156,130 | 36,156,130 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
NET REVENUES | ||
Service income | $ 10,924,330 | $ 9,977,921 |
COST OF SERVICES | ||
Cost of service income | (9,228,861) | (7,298,227) |
GROSS PROFIT | 1,695,469 | 2,679,694 |
OPERATING EXPENSES: | ||
General and administrative expenses | (2,001,268) | (2,131,194) |
Foreign exchange (loss) gain | 112,044 | (13,741) |
TOTAL OPERATING EXPENSES | (1,889,224) | (2,144,935) |
(LOSS) PROFIT FROM OPERATIONS | (193,755) | 534,759 |
OTHER INCOME (EXPENSES): | ||
Interest income | 639 | 751 |
Interest expense | (34,456) | |
Finance cost | (15,013) | (17,279) |
VAT refund | 102,449 | 30,657 |
Management fee income | 178,285 | 212,262 |
Others | 39,245 | 3,383 |
Total other income (expenses), net | 271,149 | 229,774 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 77,394 | 764,533 |
INCOME TAXES EXPENSES | (74,028) | (87,131) |
NET INCOME | 3,366 | 677,402 |
OTHER COMPREHENSIVE INCOME: | ||
Foreign currency translation adjustment | (85,808) | (89,122) |
COMPREHENSIVE (LOSS) INCOME | (82,442) | 588,280 |
ATTRIBUTABLE TO: | ||
Equity holders of the Company | (104,107) | 545,304 |
Non-controlling interests | 21,665 | 42,976 |
COMPREHENSIVE (LOSS) INCOME | $ (82,442) | $ 588,280 |
Net income per share, basic and diluted | $ 0 | $ 0.02 |
Weighted average number of shares outstanding | 36,156,130 | 34,352,559 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Statutory Reserves [Member] | Noncontrolling Interest [Member] | AOCI Attributable to Parent [Member] | Total |
January 1, 2022 at Dec. 31, 2020 | $ 297 | $ 690,589 | $ 414,225 | $ 11,835 | $ 53,453 | $ 97,944 | $ 1,268,343 |
Balance at beginning (in shares) at Dec. 31, 2020 | 29,656,130 | ||||||
Net (loss) income | 634,426 | 42,976 | 677,402 | ||||
Issuance of share | $ 65 | 649,935 | 650,000 | ||||
Issuance of share, shares | 6,500,000 | ||||||
Change in noncontrolling interests | 18,600 | 18,600 | |||||
Transfer to Dividend payable | (180,881) | (180,881) | |||||
Foreign currency translation adjustment | 2,774 | (89,122) | (86,348) | ||||
December 31, 2022 at Dec. 31, 2021 | $ 362 | 1,340,524 | 867,770 | 11,835 | 117,803 | 8,822 | 2,347,116 |
Balance at ending (in shares) at Dec. 31, 2021 | 36,156,130 | ||||||
Net (loss) income | (18,299) | 21,665 | 3,366 | ||||
Foreign currency translation adjustment | (9,931) | (85,808) | (95,739) | ||||
December 31, 2022 at Dec. 31, 2022 | $ 362 | $ 1,340,524 | $ 849,471 | $ 11,835 | $ 129,537 | $ (76,986) | $ 2,254,743 |
Balance at ending (in shares) at Dec. 31, 2022 | 36,156,130 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 3,366 | $ 677,402 |
Adjustments to reconcile net income to cash (used in) provided by operating activities: | ||
Depreciation | 217,073 | 135,129 |
Amortization | 349,366 | 391,962 |
Interest income | (639) | (751) |
Loan interest expenses | 34,456 | |
Finance costs on Right-of-use assets | 15,013 | 17,279 |
Deferred income taxes | 8,544 | 29,848 |
Changes in operating assets and liabilities | ||
Accounts receivable | (274,441) | (259,181) |
Other receivables, deposit and prepayments | (158,199) | 99,692 |
Amounts due from related parties | (757,540) | (299,022) |
Inventories | 163,597 | (151,112) |
Accounts payable | 177,890 | (348,983) |
Other payables and accrued liabilities | (283,824) | 121,981 |
Deferred income | 54,559 | (18,325) |
Amounts due to related parties | 14,418 | (260,563) |
Net cash (used in) provided by operating activities | (436,361) | 135,356 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Interest received | 639 | 751 |
Purchase of plant and equipment | (223,619) | (326,578) |
Net cash used in investing activities | (222,980) | (325,827) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Issued share capitals | 650,000 | |
Interest paid | (34,456) | |
Dividend paid | (169,291) | |
Principal payments on leases | (351,664) | (489,005) |
Proceeds from non-controlling interests | 18,600 | |
Proceeds from bank loan | 1,054,294 | 14,322 |
Repayment of loan from a director | ||
Repayment of bank loan | (57,346) | (38,874) |
Net cash provided by (used in) financing activities | 610,828 | (14,248) |
EFFECT OF EXCHANGE RATE ON CASH | (32,109) | (29,220) |
DECREASE IN CASH | (80,622) | (233,939) |
CASH, beginning of year | 289,398 | 523,337 |
CASH, end of year | 208,776 | 289,398 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash paid for income taxes | $ (112,138) | $ (3,120) |
Organization and description of
Organization and description of business | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 June 26, 2007 On January 1, 2014, VEII received 100% of the issued and outstanding shares of in Value Exchange Int’l (China) Limited (“VEI CHN”) in exchange for i) newly issued 12,000,000 shares of VEII’s 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 Int’l (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 People’s Republic of China (“PRC”). On September 2, 2008 VEI CHN established its first operating subsidiary, Value Exchange Int’l (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 Int’l (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% In January 2019, VEI SHG established an operating subsidiary, Value Exchange Int’l (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. In January 2022, VEI HKG established an operating subsidiary, Haomeng Technology (Shenzhen) Co., Limited. (“HTS”) in Shenzhen, PRC, under the laws of the PRC. SZH engages in IT services. As of December 31, 2022, the Company held five wholly-owned subsidiaries, and two subsidiaries with 51% ownership. |
Accounting policies
Accounting policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
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 acquirer’s 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. Value Exchange Int’l (China) Limited, a wholly-owned subsidiary of the Company incorporated in Hong Kong as a private company on November 16, 2001; 2. Value Exchange Int’l (Shanghai) Limited, a wholly-owned subsidiary of the Company incorporated in Shanghai as a private company on September 2, 2008; 3. Value Exchange Int’l (Hong Kong) Limited, a wholly-owned subsidiary of the Company incorporated in Hong Kong as a private company on August 25, 2003 and acquired by VEI CHN on September 25, 2008; 4. TapServices, Inc., a wholly-owned subsidiary of the Company incorporated in Philippines as a private company on March 24, 2009 and acquired by VEI CHN on January 23, 2017. 5. Value Exchange Int’l (Hunan) Limited, a subsidiary of the Company with 51% ownership incorporated in Hunan as a private company on November 15, 2018; 6. Shanghai Zhaonan Hengan Information Technology Co., Limited, a subsidiary of the Company with 51% ownership incorporated in Hunan as a private company on February 10, 2020. 7. Haomeng Technology (Shenzhen) Co., Limited, a subsidiary of the Company with 100% ownership incorporated in Shenzhen as a private company in January 2022. 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, 2022: Schedule of consolidated entities Place of incorporation Ownership percentage 2022 2021 Value Exchange International, Inc. USA Parent Company Parent Company Value Exchange Int’l (China) Limited Hong Kong 100% 100% Value Exchange Int’l (Shanghai) Limited PRC 100% 100% Value Exchange Int’l (Hong Kong) Limited Hong Kong 100% 100% TapServices, Inc. Philippines 100% 100% Value Exchange Int’l (Hunan) Limited PRC 51% 51% Shanghai Zhaonan Hengan Information Technology Co., Limited PRC 51% 51% Haomeng Technology (Shenzhen) Co., Limited PRC 100% - Note a: The remaining 49% share equity of VEI HN is owned by Li Gongyuan, a Chinese national. Note b: The remaining 49% share equity of SZH is owned by Shanghai Nanan Cosmeceutical Technology Development Limited, a Chinese company, which 54.6% share is effectively controlled by Li Chengliang, a Chinese national. 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 management’s 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, 2022 and 2021, 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: Schedule of estimated use full life Estimated Useful Life Leasehold improvements Lesser of lease term or the estimated useful lives of 5 Computer equipment 5 Computer software 5 Office furniture and equipment 5 Motor Vehicle 3 Building 5 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 entity’s own assumptions (unobservable inputs). The hierarchy consists of three levels: Level one — Quoted market prices in active markets for identical assets or liabilities; Level two — Inputs other than level one inputs that are either directly or indirectly observable; and Level three — Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use. 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 Company’s 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, 2022, the Company’s 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, 2022. 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 Company’s 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 delivered item(s) has value to the customer on a stand-alone basis; – There is objective and reliable evidence of the fair value of the undelivered item(s); and – If the arrangement includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the Company. The Company’s multiple-element contracts generally include customer-acceptance provisions which provide for the Company to carry out installation, test runs and performance tests at the Company’s 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 customer’s 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 customer’s 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, 2022 and 2021. Schedule of revenue record 2022 2021 US$ US$ NET REVENUES Service income – systems development and integration 240,858 248,218 – systems maintenance 9,243,919 7,439,172 – sales of hardware and consumables 1,439,553 2,290,531 10,924,330 9,977,921 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 Company’s 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, 2022 and 2021 were approximately $ 0 173 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, 2022 and 2021 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, 2022 and 2021 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. Schedule of foreign currency translation Year ended December 31, 2022 December 31, 2021 RMB : USD exchange rate 6.7046 6.4707 Average period ended HKD : USD exchange rate 7.800 7.800 Average period ended PESO : USD exchange rate 53.7447 48.8351 Average period ended Year ended December 31, 2022 December 31, 2021 RMB : USD exchange rate 6.9143 6.3699 HKD : USD exchange rate 7.800 7.800 PESO : USD exchange rate 54.7368 50.4854 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 Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s 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, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses.” The ASU sets forth a “current expected credit loss” model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. This ASU was effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. Recently, the FASB issued the final ASU to delay adoption for smaller reporting companies to calendar year 2023. The Company intends to adopt this ASU in January 2022. The adoption of this ASU will not have a material impact on the Company’s consolidated financial statements and related disclosures. In January 2020, the FASB issued Accounting Standards Update No. 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity 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. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This standard addresses the risks from the discontinuation of the London Interbank Offered Rate (LIBOR) and provides optional expedients and exceptions to contracts, hedging relationships and other transactions that reference LIBOR if certain criteria are met. This new guidance is effective and may be applied beginning March 12, 2020 through December 31, 2022. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In August 2020, the FASB issued ASU No. 2020-06, Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity ’ In January 2021, the FASB issued ASU No. 2021-01, “Reference Rate Reform (Topic 848),” which provides optional guidance to ease the potential accounting and financial reporting burden of reference rate reform, including the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The new guidance provides temporary optional expedients and exceptions for applying U.S. GAAP to transactions affected by reference rate reform if certain criteria are met. These transactions include contract modifications, hedging relationships, and the sale or transfer of debt securities classified as held-to-maturity. Entities may apply the provisions of the new standard as of the beginning of the reporting period when the election is made. Unlike other topics, the provisions of this update are only available until December 31, 2022, by which time the reference rate replacement activity is expected to be completed. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures and has yet to elect an adoption date. In August 2021, the FASB issued ASU No. 2021-06, “Presentation of Financial Statements (Topic 205), Financial Services—Depository and Lending (Topic 942), and Financial Services—Investment Companies (Topic 946).” The ASU includes Release No.33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses. This update amends certain SEC disclosure guidance that is included in the accounting standards codification to reflect the SEC’s recent issuance of rules intended to modernize and streamline disclosure requirements, including updates to business acquisition and disposition significance tests used, the significance thresholds for proforma statement disclosures, the number of preceding years of financial statements required for disclosure, and other provisions in the SEC releases. The guidance is effective upon its addition to the FASB codification. The Company is assessing the impact of ASU No. 2021-06 but does not expect that it will have a material impact on its consolidated financial statements and related disclosures. In October 2021, the FASB issued ASU No. 2021-08, “Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” The ASU addresses diversity and inconsistency related to the recognition and measurement of contract assets and contract liabilities acquired in a business combination and require that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. This standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and should be applied prospectively to business combinations occurring on or after the effective date of the amendments. Early adoption of the standard is permitted, including adoption in an interim period. The adoption of this standard update is not expected to have a material impact on the Company's consolidated financial statements and related disclosures. 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 Company’s consolidated financial statements upon adoption. |
Accounts receivable
Accounts receivable | 12 Months Ended |
Dec. 31, 2022 | |
Credit Loss [Abstract] | |
Accounts receivable | Note 3 - Accounts receivable Accounts receivable as of December 31, 2022 and 2021 consisted of the following: Schedule of accounts receivable December 31, 2022 2021 US$ US$ Accounts receivable 1,133,058 858,617 Allowance for doubtful accounts - - Accounts receivable net 1,133,058 858,617 During the years ended December 31, 2022 and 2021, the Company did not have delinquent accounts receivable to write-off. All of the Company’s 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. |
Other receivables and prepaymen
Other receivables and prepayments | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Other receivables and prepayments | Note 4 - Other receivables and prepayments Other receivables and prepayments as of December 31, 2022 and 2021 consisted of the following: Schedule of other receivables and prepayments December 31, 2022 2021 US$ US$ Prepaid expense 148,206 129,445 Deposits 108,149 91,501 Others 216,494 93,704 Other receivables and prepayments 472,849 314,650 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 5 - Inventories Inventories as of December 31, 2022 and 2021 consisted of the following: Schedule of inventories December 31, 2022 2021 US$ US$ Finished goods 225,662 389,259 |
Plant and equipment, net
Plant and equipment, net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Plant and equipment, net | Note 6 – Plant and equipment, net Plant and equipment consisted of the following as of December 31, 2022 and 2021: Schedule of plant and equipment December 31, 2022 2021 US$ US$ Leasehold improvements 93,099 81,274 Office furniture and equipment 271,964 285,653 Computer equipment 398,549 364,740 Computer software 257,943 279,985 Motor Vehicle 213,403 140,102 Building 60,827 65,443 Total 1,295,785 1,217,197 Less: accumulated depreciation (796,288 ) (669,267 ) Plant and equipment, net 499,497 547,930 Depreciation expense for the years ended December 31, 2022 and 2021 amounted to $ 217,073 135,129 no As of December 31, 2022 and 2021, the Company's motor vehicle was under finance lease arrangement with a net carrying amount $ 143,130 50,992 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 7 – Goodwill Goodwill consisted of the following as of December 31, 2022 and 2021: Schedule of goodwill December 31, 2022 2021 US$ US$ Goodwill arising from acquisition of TSI 206,812 206,812 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
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 2023 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. Schedule of operating lease agreements December 31, 2022 2021 US$ US$ Operating lease right-of-use assets, net 555,069 437,822 The components of lease liabilities are as follows: Schedule of components of lease liabilities December 31, 2022 2021 US$ US$ Lease liabilities, current 423,490 258,647 Lease liabilities, non-current 117,592 152,533 Present value of lease liabilities 541,082 411,180 Total lease cost for the year ended December 31, 2022 and 2021 amounted to $ 27,670 17,279 1.3 3% The following is a schedule, by years, of maturities of lease liabilities as of December 31, 2022: Schedule of maturities of lease liabilities December 31, 2022 2021 US$ US$ Year one 380,757 266,924 Year two 132,685 152,183 Year three 38,069 2,483 Year four - - Thereafter - - Total undiscounted cash flows 551,512 421,590 Less: Imputed interest (10,430 ) (10,410 ) Present value of lease liabilities 541,082 411,180 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 9 – Intangible Assets Intangible Assets consisted of the following as of December 31, 2022 and 2021: Schedule of inite-lived intangible assets December 31, 2022 2021 US$ US$ Customer relationship 200,641 200,641 Less: accumulated amortization (200,641 ) (200,641 ) Intangible assets - - Amortization expense for the year ended December 31, 2022 and 2021 amounted to nil and nil, respectively. The amortization expense was included in general and administrative expenses. |
Bank loan
Bank loan | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Bank loan | Note 10 – Bank loan Bank loan and accruals consisted of the following as of December 31, 2022 and 2021: Schedule of Debt December 31, 2022 2021 US$ US$ Long term bank loan (i) 70,027 76,478 Less: Current portion of long term bank loan (i) (27,378 ) (39,143 ) Total (Long term) 42,649 37,335 Short term bank loan (ii) 1,012,110 - Current portion of long term bank loan (i) 27,378 39,143 Total 1,039,488 39,143 (i) As of December 31, 2022 and 2021, the above bank loan secured by property and equipment with net carrying amount of $143,130 and $50,992 respectively. (ii) The Company and American Pacific Bancorp, Inc., a Texas corporation located in Houston, Texas, (“APB”) signed a Loan Agreement, Security Agreement and Revolving Credit Promissory Note (“Promissory Note”), each dated July 26, 2022 but fully executed and closed as of July 27, 2022, whereby APB will provide a $1 million secured revolving credit line to the Company (“APB Credit Line”). Loan Agreement, Security Agreement and Promissory Note may be referred to collectively as “Credit Line Documents”. The Credit Line Documents provide for a fixed 8% annual interest on sums advanced, two year maturity date for unpaid sums loaned and unpaid interest accrued thereon, and calendar quarterly payments of accrued interest on any sums advanced under Credit Line (interest payments commencing on September 30, 2022). The Credit Line is secured by a first, senior lien on all of the Company’s assets and accounts receivable, with net carrying amount of $5,739,861. APB is affiliated with Chan Heng Fai, a director and principal shareholder of the Company, by virtue of Mr. Chan’s equity ownership of parent company of APB and his service as the Executive Chairman of the parent company of APB. APB is also affiliated with the Company directors Lum Kan Fai, Robert Trapp, Wong Shui Yeung, and Wong Tat Keung since they are affiliated with Mr. Chan and certain of his affiliated companies by virtue of services as a director, officer or professional advisor to those affiliated companies. |
Other payables and accrued liab
Other payables and accrued liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Other payables and accrued liabilities | Note 11 – Other payables and accrued liabilities Other payables and accruals consisted of the following as of December 31, 2022 and 2021: Schedule of other payables and accrued liabilities December 31, 2022 2021 US$ US$ Accrual 652,424 878,532 Income taxes payable 29,140 86,856 Total other payables and accrued liabilities 681,564 965,388 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 Company’s 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 Company’s subsidiary is required to accrue for these benefits based on certain percentages of the qualified employees’ salaries. The Company’s subsidiary is required to make contributions to the plans out of the amounts accrued. The Company’s 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. |
Deferred income
Deferred income | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Income | |
Deferred income | Note 12 – Deferred income Deferred income consisted of the following as of December 31, 2022 and 2021: Schedule of deferred income December 31, 2022 2021 US$ US$ Service fees received in advance 291,171 236,612 |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
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% The Company’s Hong Kong subsidiaries are subject to Hong Kong Profits Tax at 16.5% The Company’s Philippine subsidiary is subject to Philippine Statutory Corporate Income Tax at 30% The Company’s PRC subsidiary in the PRC is subject to PRC Enterprise Income Tax at 25% The Income Tax Laws in PRC also imposes a 10% 0 no 0 The Company’s income tax expense consisted of: Schedule of income tax expense Year ended December 31, 2022 2021 US$ US$ Current income tax 78,016 79,549 Deferred income tax (3,988 ) 7,582 Income tax expenses 74,028 87,131 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: Schedule of reconciliation of income tax expense Year ended December 31, 2022 2021 US$ US$ Pre-tax income 764,533 126,231 U.S. federal corporate income tax rate 21 % 21 % 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 78,016 79,549 Deferred tax computed at various jurisdiction rate (3,988 ) 7,582 Effective income taxes 74,028 87,131 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: Schedule of deferred income taxes December 31, 2022 2021 US$ US$ Deferred income tax assets: Tax losses 38,110 44,038 |
Statutory reserves
Statutory reserves | 12 Months Ended |
Dec. 31, 2022 | |
Extractive Industries [Abstract] | |
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. Making up cumulative prior years’ losses, if any; 2. Allocations to the “Statutory surplus reserve” of at least 10% 50% 3. Allocations to the discretionary surplus reserve, if approved in the shareholders’ general meeting. 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% |
Related party and shareholder t
Related party and shareholder transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
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 Schedule of related party balance December 31, 2022 2021 Due from related parties US$ US$ Value Exchange International Limited (i) 2,058,267 1,369,968 Cucumbuy.com Limited (ii) 33,333 2,564 SmartMyWays Co., Limited (iii) 92,308 61,539 Retail Intelligent Unit Limited (iv) 36,923 24,615 AppMyWays Co., Limited (v) 86,776 159,643 TAP Technology (HK) Limited (vi) 54,928 24,159 Value Exchange International (Taiwan) Co, Ltd (vii) 37,493 - 2,400,028 1,642,488 Due to related parties SA-Network Limited (viii) 16,918 - Mr. Johan Pehrson (ix) - 2,500 16,918 2,500 Related party transactions: Schedule of related party transaction Year end December 31, 2022 2021 US$ US$ Subcontracting fees paid to Value Exchange International Limited (i) (631,708 ) (698,564 ) Cucumbuy.com Limited (ii) (15,385 ) - TAP Technology (HK) Limited (vi) (110,092 ) (121,588 ) Value Exchange International (Taiwan) Co, Ltd (vii) (8,497 ) - SA-Network Limited (viii) (17,139 ) - Value E Consultant International (M) Sdn. Bhd (x) (47,285 ) (34,840 ) Service income received from Value Exchange International Limited (i) 602,682 389,796 AppMyWays Co., Limited (v) 30,087 657,568 Value Exchange International (Taiwan) Co, Ltd (vii) 37,033 - Management fees received from Value Exchange International Limited (i) 64,397 98,821 Cucumbuy.com Limited (ii) 30,769 30,769 SmartMyWays Co., Limited (iii) 30,769 30,769 Retail Intelligent Unit Limited (iv) 12,308 12,308 TAP Technology (HK) Limited (vi) 30,769 30,769 Value X International Pte. Ltd (xi) 8,311 - (i) Mr. Kenneth Tan and Ms. Bella Tsang, directors of the Company, are shareholders and a directors of Value Exchange International Limited, a company incorporated in Hong Kong. The balance is unsecured, interest free and repayable on demand. (ii) Ms. Bella Tsang, a director of the Company, is a shareholder and a director of Cucumbuy.com Limited, a company incorporated in Hong Kong. The balance is unsecured, interest free and repayable on demand. (iii) Ms. Bella Tsang, a director of the Company, is a shareholder and a director of SmartMyWays Co., Limited, a company incorporated in Hong Kong. Mr. Kenneth Tan, a director of the Company, is a director of SmartMyWays Co., Limited. The balance is unsecured, interest free and repayable on demand. (iv) Ms. Bella Tsang, a director of the Company, is a shareholder and a director of Retail Intelligent Unit Limited, a company incorporated in Hong Kong. Mr. Kenneth Tan, a director of the Company, is a director of Retail Intelligent Unit Limited. The balance is unsecured, interest free and repayable on demand. (v) Ms. Bella Tsang, a director of the Company, is a shareholder and a director of AppMyWays Co., Limited, a company incorporated in Hong Kong. The balance is unsecured, interest free and repayable on demand. (vi) Ms. Bella Tsang, a director of the Company, is a shareholder and a director of TAP Technology (HK) Limited, a company incorporated in Hong Kong. The balance is unsecured, interest free and repayable on demand. (vii) Ms. Bella Tsang, a director of the Company, is a shareholder and a director of Value Exchange International (Taiwan) Co, Ltd, a company incorporated in Taiwan. The balance is unsecured, interest free and repayable on demand. (viii) Ms. Bella Tsang, a director of the Company, is a shareholder and a director of SA-Network Limited, a company incorporated in England and Wales. The balance is unsecured, interest free and repayable on demand. (ix) Mr. Johan Pehrson is a director of the Company. The balance is unsecured, interest free and repayable on demand. (x) Ms. Bella Tsang, a director of the Company, is a shareholder of Value E Consultant International (M) Sdn. Bhd, a company incorporated in Malaysia. The balance is unsecured, interest free and repayable on demand. (xi) Ms. Bella Tsang, a director of the Company, is a shareholder and a director of ValueX International Pte. Ltd., a company incorporated in Singapore. The balance is unsecured, interest free and repayable on demand. |
Concentration of risks
Concentration of risks | 12 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Concentration of risks | Note 16 - Concentration of risks The Company’s operations are carried out in the PRC and in Hong Kong through the Company’s 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 Company’s 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 Company’s revenues for the years ended December 31, 2022 and 2021: Schedule of concentration of risks 2022 2021 Aisino Wincor Nixdorf Retail & Banking Systems (Shanghai) Co., Ltd. Company 22.3% 25.5% Wuhan Watson's Personal Care Stores Co., Limited 16.7% 22.9% Robinsons Retail Group 12.0% 11.9% PCCW Solutions Limited 15.6% 2.0% Individual customer accounts receivable that represented 10% or more of total accounts receivable as of December 31, 2022 and 2021 were as follows: Percentage of accounts receivable as of 2022 2021 PCCW Solutions Limited 27.9% 15.1% Robinsons Retail Group 19.4% 38.4% Aisino Wincor Nixdorf Retail & Banking Systems (Shanghai) Co., Ltd. Company 4.1% 10.9% Fujitsu South China Limited 0.6% 16.3% |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent events | Note 17 - Subsequent events VEII entered into a Convertible Credit Agreement, dated and effective as of January 27, 2023, (“2023 Credit Agreement”) with the following lenders: (1) GigWorld, Inc., a Delaware corporation, (“GWI”) and (2) American Wealth Mining Corp., a Nevada corporation, (“AWMC”). GWI and AWMC are also referred to individually as a “Lender” and collectively, as the “Lenders.” Maximum Credit Line; Interest; Advances; Payment 1,500.000 8% Use of Proceeds Unsecured Debt Obligation Events of Default Conversion Right Conversion upon a Change in Control Transaction 50% Conversion upon Breach of this Agreement. Warrants Chan Heng Fai is deemed to control GWI by virtue of his majority ownership of stock of the parent company of GWI’s primary shareholder, Alset International Inc. (“AIL”). AIL owns approximately 99.69% Mr. Chan also controls AWMC by virtue of his ownership of approximately 95.6% Potential Change of Control The Company has an existing secured credit line with APB Credit Line for $ 1 504,910 As of the date of this Form 10-K, Company has an outstanding balance of US$ 1.5 |
Accounting policies (Policies)
Accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
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 acquirer’s 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. Value Exchange Int’l (China) Limited, a wholly-owned subsidiary of the Company incorporated in Hong Kong as a private company on November 16, 2001; 2. Value Exchange Int’l (Shanghai) Limited, a wholly-owned subsidiary of the Company incorporated in Shanghai as a private company on September 2, 2008; 3. Value Exchange Int’l (Hong Kong) Limited, a wholly-owned subsidiary of the Company incorporated in Hong Kong as a private company on August 25, 2003 and acquired by VEI CHN on September 25, 2008; 4. TapServices, Inc., a wholly-owned subsidiary of the Company incorporated in Philippines as a private company on March 24, 2009 and acquired by VEI CHN on January 23, 2017. 5. Value Exchange Int’l (Hunan) Limited, a subsidiary of the Company with 51% ownership incorporated in Hunan as a private company on November 15, 2018; 6. Shanghai Zhaonan Hengan Information Technology Co., Limited, a subsidiary of the Company with 51% ownership incorporated in Hunan as a private company on February 10, 2020. 7. Haomeng Technology (Shenzhen) Co., Limited, a subsidiary of the Company with 100% ownership incorporated in Shenzhen as a private company in January 2022. 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, 2022: Schedule of consolidated entities Place of incorporation Ownership percentage 2022 2021 Value Exchange International, Inc. USA Parent Company Parent Company Value Exchange Int’l (China) Limited Hong Kong 100% 100% Value Exchange Int’l (Shanghai) Limited PRC 100% 100% Value Exchange Int’l (Hong Kong) Limited Hong Kong 100% 100% TapServices, Inc. Philippines 100% 100% Value Exchange Int’l (Hunan) Limited PRC 51% 51% Shanghai Zhaonan Hengan Information Technology Co., Limited PRC 51% 51% Haomeng Technology (Shenzhen) Co., Limited PRC 100% - Note a: The remaining 49% share equity of VEI HN is owned by Li Gongyuan, a Chinese national. Note b: The remaining 49% share equity of SZH is owned by Shanghai Nanan Cosmeceutical Technology Development Limited, a Chinese company, which 54.6% share is effectively controlled by Li Chengliang, a Chinese national. |
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 management’s 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 | 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 | 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, 2022 and 2021, there was no allowance for uncollectible accounts receivable, respectively. Management believes that the remaining accounts receivable are collectable. |
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: Schedule of estimated use full life Estimated Useful Life Leasehold improvements Lesser of lease term or the estimated useful lives of 5 Computer equipment 5 Computer software 5 Office furniture and equipment 5 Motor Vehicle 3 Building 5 |
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. |
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 entity’s own assumptions (unobservable inputs). The hierarchy consists of three levels: Level one — Quoted market prices in active markets for identical assets or liabilities; Level two — Inputs other than level one inputs that are either directly or indirectly observable; and Level three — Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use. 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 Company’s 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, 2022, the Company’s 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, 2022. |
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. |
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. |
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 Company’s 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 delivered item(s) has value to the customer on a stand-alone basis; – There is objective and reliable evidence of the fair value of the undelivered item(s); and – If the arrangement includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the Company. The Company’s multiple-element contracts generally include customer-acceptance provisions which provide for the Company to carry out installation, test runs and performance tests at the Company’s 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 customer’s 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 customer’s 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, 2022 and 2021. Schedule of revenue record 2022 2021 US$ US$ NET REVENUES Service income – systems development and integration 240,858 248,218 – systems maintenance 9,243,919 7,439,172 – sales of hardware and consumables 1,439,553 2,290,531 10,924,330 9,977,921 Billings in excess of revenues recognized are recorded as deferred revenue. |
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 Company’s income tax. |
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. |
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, 2022 and 2021 were approximately $ 0 173 |
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, 2022 and 2021 were insignificant. |
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, 2022 and 2021 were insignificant. |
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. Schedule of foreign currency translation Year ended December 31, 2022 December 31, 2021 RMB : USD exchange rate 6.7046 6.4707 Average period ended HKD : USD exchange rate 7.800 7.800 Average period ended PESO : USD exchange rate 53.7447 48.8351 Average period ended Year ended December 31, 2022 December 31, 2021 RMB : USD exchange rate 6.9143 6.3699 HKD : USD exchange rate 7.800 7.800 PESO : USD exchange rate 54.7368 50.4854 |
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. |
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 Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s 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 | Recent accounting pronouncements In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses.” The ASU sets forth a “current expected credit loss” model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. This ASU was effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. Recently, the FASB issued the final ASU to delay adoption for smaller reporting companies to calendar year 2023. The Company intends to adopt this ASU in January 2022. The adoption of this ASU will not have a material impact on the Company’s consolidated financial statements and related disclosures. In January 2020, the FASB issued Accounting Standards Update No. 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity 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. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This standard addresses the risks from the discontinuation of the London Interbank Offered Rate (LIBOR) and provides optional expedients and exceptions to contracts, hedging relationships and other transactions that reference LIBOR if certain criteria are met. This new guidance is effective and may be applied beginning March 12, 2020 through December 31, 2022. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In August 2020, the FASB issued ASU No. 2020-06, Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity ’ In January 2021, the FASB issued ASU No. 2021-01, “Reference Rate Reform (Topic 848),” which provides optional guidance to ease the potential accounting and financial reporting burden of reference rate reform, including the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The new guidance provides temporary optional expedients and exceptions for applying U.S. GAAP to transactions affected by reference rate reform if certain criteria are met. These transactions include contract modifications, hedging relationships, and the sale or transfer of debt securities classified as held-to-maturity. Entities may apply the provisions of the new standard as of the beginning of the reporting period when the election is made. Unlike other topics, the provisions of this update are only available until December 31, 2022, by which time the reference rate replacement activity is expected to be completed. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures and has yet to elect an adoption date. In August 2021, the FASB issued ASU No. 2021-06, “Presentation of Financial Statements (Topic 205), Financial Services—Depository and Lending (Topic 942), and Financial Services—Investment Companies (Topic 946).” The ASU includes Release No.33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses. This update amends certain SEC disclosure guidance that is included in the accounting standards codification to reflect the SEC’s recent issuance of rules intended to modernize and streamline disclosure requirements, including updates to business acquisition and disposition significance tests used, the significance thresholds for proforma statement disclosures, the number of preceding years of financial statements required for disclosure, and other provisions in the SEC releases. The guidance is effective upon its addition to the FASB codification. The Company is assessing the impact of ASU No. 2021-06 but does not expect that it will have a material impact on its consolidated financial statements and related disclosures. In October 2021, the FASB issued ASU No. 2021-08, “Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” The ASU addresses diversity and inconsistency related to the recognition and measurement of contract assets and contract liabilities acquired in a business combination and require that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. This standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and should be applied prospectively to business combinations occurring on or after the effective date of the amendments. Early adoption of the standard is permitted, including adoption in an interim period. The adoption of this standard update is not expected to have a material impact on the Company's consolidated financial statements and related disclosures. 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 Company’s consolidated financial statements upon adoption. |
Accounting policies (Tables)
Accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of consolidated entities | Schedule of consolidated entities Place of incorporation Ownership percentage 2022 2021 Value Exchange International, Inc. USA Parent Company Parent Company Value Exchange Int’l (China) Limited Hong Kong 100% 100% Value Exchange Int’l (Shanghai) Limited PRC 100% 100% Value Exchange Int’l (Hong Kong) Limited Hong Kong 100% 100% TapServices, Inc. Philippines 100% 100% Value Exchange Int’l (Hunan) Limited PRC 51% 51% Shanghai Zhaonan Hengan Information Technology Co., Limited PRC 51% 51% Haomeng Technology (Shenzhen) Co., Limited PRC 100% - |
Schedule of estimated use full life | Schedule of estimated use full life Estimated Useful Life Leasehold improvements Lesser of lease term or the estimated useful lives of 5 Computer equipment 5 Computer software 5 Office furniture and equipment 5 Motor Vehicle 3 Building 5 |
Schedule of revenue record | Schedule of revenue record 2022 2021 US$ US$ NET REVENUES Service income – systems development and integration 240,858 248,218 – systems maintenance 9,243,919 7,439,172 – sales of hardware and consumables 1,439,553 2,290,531 10,924,330 9,977,921 |
Schedule of foreign currency translation | Schedule of foreign currency translation Year ended December 31, 2022 December 31, 2021 RMB : USD exchange rate 6.7046 6.4707 Average period ended HKD : USD exchange rate 7.800 7.800 Average period ended PESO : USD exchange rate 53.7447 48.8351 Average period ended Year ended December 31, 2022 December 31, 2021 RMB : USD exchange rate 6.9143 6.3699 HKD : USD exchange rate 7.800 7.800 PESO : USD exchange rate 54.7368 50.4854 |
Accounts receivable (Tables)
Accounts receivable (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Credit Loss [Abstract] | |
Schedule of accounts receivable | Schedule of accounts receivable December 31, 2022 2021 US$ US$ Accounts receivable 1,133,058 858,617 Allowance for doubtful accounts - - Accounts receivable net 1,133,058 858,617 |
Other receivables and prepaym_2
Other receivables and prepayments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of other receivables and prepayments | Schedule of other receivables and prepayments December 31, 2022 2021 US$ US$ Prepaid expense 148,206 129,445 Deposits 108,149 91,501 Others 216,494 93,704 Other receivables and prepayments 472,849 314,650 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Schedule of inventories December 31, 2022 2021 US$ US$ Finished goods 225,662 389,259 |
Plant and equipment, net (Table
Plant and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of plant and equipment | Schedule of plant and equipment December 31, 2022 2021 US$ US$ Leasehold improvements 93,099 81,274 Office furniture and equipment 271,964 285,653 Computer equipment 398,549 364,740 Computer software 257,943 279,985 Motor Vehicle 213,403 140,102 Building 60,827 65,443 Total 1,295,785 1,217,197 Less: accumulated depreciation (796,288 ) (669,267 ) Plant and equipment, net 499,497 547,930 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | Schedule of goodwill December 31, 2022 2021 US$ US$ Goodwill arising from acquisition of TSI 206,812 206,812 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of operating lease agreements | Schedule of operating lease agreements December 31, 2022 2021 US$ US$ Operating lease right-of-use assets, net 555,069 437,822 |
Schedule of components of lease liabilities | Schedule of components of lease liabilities December 31, 2022 2021 US$ US$ Lease liabilities, current 423,490 258,647 Lease liabilities, non-current 117,592 152,533 Present value of lease liabilities 541,082 411,180 |
Schedule of maturities of lease liabilities | Schedule of maturities of lease liabilities December 31, 2022 2021 US$ US$ Year one 380,757 266,924 Year two 132,685 152,183 Year three 38,069 2,483 Year four - - Thereafter - - Total undiscounted cash flows 551,512 421,590 Less: Imputed interest (10,430 ) (10,410 ) Present value of lease liabilities 541,082 411,180 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of inite-lived intangible assets | Schedule of inite-lived intangible assets December 31, 2022 2021 US$ US$ Customer relationship 200,641 200,641 Less: accumulated amortization (200,641 ) (200,641 ) Intangible assets - - |
Bank loan (Tables)
Bank loan (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Schedule of Debt December 31, 2022 2021 US$ US$ Long term bank loan (i) 70,027 76,478 Less: Current portion of long term bank loan (i) (27,378 ) (39,143 ) Total (Long term) 42,649 37,335 Short term bank loan (ii) 1,012,110 - Current portion of long term bank loan (i) 27,378 39,143 Total 1,039,488 39,143 (i) As of December 31, 2022 and 2021, the above bank loan secured by property and equipment with net carrying amount of $143,130 and $50,992 respectively. (ii) The Company and American Pacific Bancorp, Inc., a Texas corporation located in Houston, Texas, (“APB”) signed a Loan Agreement, Security Agreement and Revolving Credit Promissory Note (“Promissory Note”), each dated July 26, 2022 but fully executed and closed as of July 27, 2022, whereby APB will provide a $1 million secured revolving credit line to the Company (“APB Credit Line”). Loan Agreement, Security Agreement and Promissory Note may be referred to collectively as “Credit Line Documents”. The Credit Line Documents provide for a fixed 8% annual interest on sums advanced, two year maturity date for unpaid sums loaned and unpaid interest accrued thereon, and calendar quarterly payments of accrued interest on any sums advanced under Credit Line (interest payments commencing on September 30, 2022). The Credit Line is secured by a first, senior lien on all of the Company’s assets and accounts receivable, with net carrying amount of $5,739,861. |
Other payables and accrued li_2
Other payables and accrued liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of other payables and accrued liabilities | Schedule of other payables and accrued liabilities December 31, 2022 2021 US$ US$ Accrual 652,424 878,532 Income taxes payable 29,140 86,856 Total other payables and accrued liabilities 681,564 965,388 |
Deferred income (Tables)
Deferred income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Income | |
Schedule of deferred income | Schedule of deferred income December 31, 2022 2021 US$ US$ Service fees received in advance 291,171 236,612 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax expense | Schedule of income tax expense Year ended December 31, 2022 2021 US$ US$ Current income tax 78,016 79,549 Deferred income tax (3,988 ) 7,582 Income tax expenses 74,028 87,131 |
Schedule of reconciliation of income tax expense | Schedule of reconciliation of income tax expense Year ended December 31, 2022 2021 US$ US$ Pre-tax income 764,533 126,231 U.S. federal corporate income tax rate 21 % 21 % 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 78,016 79,549 Deferred tax computed at various jurisdiction rate (3,988 ) 7,582 Effective income taxes 74,028 87,131 |
Schedule of deferred income taxes | Schedule of deferred income taxes December 31, 2022 2021 US$ US$ Deferred income tax assets: Tax losses 38,110 44,038 |
Related party and shareholder_2
Related party and shareholder transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of related party balance | Schedule of related party balance December 31, 2022 2021 Due from related parties US$ US$ Value Exchange International Limited (i) 2,058,267 1,369,968 Cucumbuy.com Limited (ii) 33,333 2,564 SmartMyWays Co., Limited (iii) 92,308 61,539 Retail Intelligent Unit Limited (iv) 36,923 24,615 AppMyWays Co., Limited (v) 86,776 159,643 TAP Technology (HK) Limited (vi) 54,928 24,159 Value Exchange International (Taiwan) Co, Ltd (vii) 37,493 - 2,400,028 1,642,488 Due to related parties SA-Network Limited (viii) 16,918 - Mr. Johan Pehrson (ix) - 2,500 16,918 2,500 |
Schedule of related party transaction | Schedule of related party transaction Year end December 31, 2022 2021 US$ US$ Subcontracting fees paid to Value Exchange International Limited (i) (631,708 ) (698,564 ) Cucumbuy.com Limited (ii) (15,385 ) - TAP Technology (HK) Limited (vi) (110,092 ) (121,588 ) Value Exchange International (Taiwan) Co, Ltd (vii) (8,497 ) - SA-Network Limited (viii) (17,139 ) - Value E Consultant International (M) Sdn. Bhd (x) (47,285 ) (34,840 ) Service income received from Value Exchange International Limited (i) 602,682 389,796 AppMyWays Co., Limited (v) 30,087 657,568 Value Exchange International (Taiwan) Co, Ltd (vii) 37,033 - Management fees received from Value Exchange International Limited (i) 64,397 98,821 Cucumbuy.com Limited (ii) 30,769 30,769 SmartMyWays Co., Limited (iii) 30,769 30,769 Retail Intelligent Unit Limited (iv) 12,308 12,308 TAP Technology (HK) Limited (vi) 30,769 30,769 Value X International Pte. Ltd (xi) 8,311 - |
Concentration of risks (Tables)
Concentration of risks (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Schedule of concentration of risks | Schedule of concentration of risks 2022 2021 Aisino Wincor Nixdorf Retail & Banking Systems (Shanghai) Co., Ltd. Company 22.3% 25.5% Wuhan Watson's Personal Care Stores Co., Limited 16.7% 22.9% Robinsons Retail Group 12.0% 11.9% PCCW Solutions Limited 15.6% 2.0% Individual customer accounts receivable that represented 10% or more of total accounts receivable as of December 31, 2022 and 2021 were as follows: Percentage of accounts receivable as of 2022 2021 PCCW Solutions Limited 27.9% 15.1% Robinsons Retail Group 19.4% 38.4% Aisino Wincor Nixdorf Retail & Banking Systems (Shanghai) Co., Ltd. Company 4.1% 10.9% Fujitsu South China Limited 0.6% 16.3% |
Organization and description _2
Organization and description of business (Details Narrative) | 12 Months Ended | |
Dec. 31, 2022 | Jan. 31, 2017 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Entity Incorporation, State or Country Code | NV | |
Entity Incorporation, Date of Incorporation | Jun. 26, 2007 | |
Tap Services Inc [Member] | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Ownership percentage | 100% |
Accounting policies (Details)
Accounting policies (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Jan. 31, 2017 | |
Value Exchange International Inc [Member] | |||
Business Acquisition, Name of Acquired Entity | Value Exchange International, Inc. | ||
Place Of Incorporation | USA | ||
Value Exchange Intl China Limite [Member] | |||
Place Of Incorporation | Hong Kong | ||
Value Exchange Intl China Limite [Member] | HONG KONG | |||
Business Acquisition, Name of Acquired Entity | Value Exchange Int’l (China) Limited | ||
Noncontrolling Interest, Ownership Percentage by Parent | 100% | 100% | |
Value Exchange Intl Shanghai Limited [Member] | |||
Place Of Incorporation | PRC | ||
Value Exchange Intl Shanghai Limited [Member] | CHINA | |||
Business Acquisition, Name of Acquired Entity | Value Exchange Int’l (Shanghai) Limited | ||
Noncontrolling Interest, Ownership Percentage by Parent | 100% | 100% | |
Value Exchange Intl Hong Kong Limited [Member] | |||
Place Of Incorporation | Hong Kong | ||
Value Exchange Intl Hong Kong Limited [Member] | HONG KONG | |||
Business Acquisition, Name of Acquired Entity | Value Exchange Int’l (Hong Kong) Limited | ||
Noncontrolling Interest, Ownership Percentage by Parent | 100% | 100% | |
Tap Services Inc [Member] | |||
Place Of Incorporation | Philippines | ||
Noncontrolling Interest, Ownership Percentage by Parent | 100% | ||
Tap Services Inc [Member] | PHILIPPINES | |||
Business Acquisition, Name of Acquired Entity | TapServices, Inc. | ||
Noncontrolling Interest, Ownership Percentage by Parent | 100% | 100% | |
Value Exchange Intl Hunan Limited [Member] | |||
Place Of Incorporation | PRC | ||
Value Exchange Intl Hunan Limited [Member] | CHINA | |||
Business Acquisition, Name of Acquired Entity | Value Exchange Int’l (Hunan) Limited | ||
Noncontrolling Interest, Ownership Percentage by Parent | 51% | 51% | |
Shanghai Zhaonan Hengan Information Technology Co. Limited [Member] | |||
Business Acquisition, Name of Acquired Entity | Shanghai Zhaonan Hengan Information | ||
Place Of Incorporation | PRC | ||
Shanghai Zhaonan Hengan Information Technology Co. Limited [Member] | CHINA | |||
Noncontrolling Interest, Ownership Percentage by Parent | 51% | 51% | |
Haomeng Technology Shenzhen Co. Limited [Member] | |||
Business Acquisition, Name of Acquired Entity | Haomeng Technology (Shenzhen) Co., | ||
Place Of Incorporation | PRC | ||
Haomeng Technology Shenzhen Co. Limited [Member] | CHINA | |||
Noncontrolling Interest, Ownership Percentage by Parent | 100% |
Accounting policies (Details 1)
Accounting policies (Details 1) | 12 Months Ended |
Dec. 31, 2022 | |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Software and Software Development Costs [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Accounting policies (Details 2)
Accounting policies (Details 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues | $ 10,924,330 | $ 9,977,921 |
Systems Development And Integration [Member] | ||
Revenues | 240,858 | 248,218 |
Systems Maintenance [Member] | ||
Revenues | 9,243,919 | 7,439,172 |
Sales Of Hardware And Consumables [Member] | ||
Revenues | $ 1,439,553 | $ 2,290,531 |
Accounting policies (Details 3)
Accounting policies (Details 3) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
China, Yuan Renminbi | ||
Exchange rate average period | 6.7046 | 6.4707 |
USD exchange rate | 6.9143 | 6.3699 |
Hong Kong, Dollars | ||
Exchange rate average period | 7.800 | 7.800 |
USD exchange rate | 7.800 | 7.800 |
Philippines, Pesos | ||
Exchange rate average period | 53.7447 | 48.8351 |
USD exchange rate | 54.7368 | 50.4854 |
Accounting policies (Details Na
Accounting policies (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
Advertising and marketing expense | $ 0 | $ 173 |
Accounts receivable (Details)
Accounts receivable (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Credit Loss [Abstract] | ||
Accounts receivable | $ 1,133,058 | $ 858,617 |
Allowance for doubtful accounts | ||
Accounts receivable net | $ 1,133,058 | $ 858,617 |
Other receivables and prepaym_3
Other receivables and prepayments (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Prepaid expense | $ 148,206 | $ 129,445 |
Deposits | 108,149 | 91,501 |
Others | 216,494 | 93,704 |
Other receivables and prepayments | $ 472,849 | $ 314,650 |
Inventories (Details)
Inventories (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 225,662 | $ 389,259 |
Plant and equipment, net (Detai
Plant and equipment, net (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 1,295,785 | $ 1,217,197 |
Less: accumulated depreciation | (796,288) | (669,267) |
Plant and equipment, net | 499,497 | 547,930 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 93,099 | 81,274 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 271,964 | 285,653 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 398,549 | 364,740 |
Computer Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 257,943 | 279,985 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 213,403 | 140,102 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 60,827 | $ 65,443 |
Plant and equipment, net (Det_2
Plant and equipment, net (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 217,073 | $ 135,129 |
Interest expense | 0 | 0 |
Finance lease arrangement | $ 143,130 | $ 50,992 |
Goodwill (Details)
Goodwill (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill arising from acquisition of TSI | $ 206,812 | $ 206,812 |
Leases (Details)
Leases (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating lease right-of-use assets, net | $ 555,069 | $ 437,822 |
Leases (Details 1)
Leases (Details 1) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Lease liabilities, current | $ 423,490 | $ 258,647 |
Lease liabilities, non-current | 117,592 | 152,533 |
Present value of lease liabilities | $ 541,082 | $ 411,180 |
Leases (Details 2)
Leases (Details 2) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Year one | $ 380,757 | $ 266,924 |
Year two | 132,685 | 152,183 |
Year three | 38,069 | 2,483 |
Year four | ||
Thereafter | ||
Total undiscounted cash flows | 551,512 | 421,590 |
Less: Imputed interest | (10,430) | (10,410) |
Present value of lease liabilities | $ 541,082 | $ 411,180 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Total lease cost | $ 27,670 | $ 17,279 |
Weighted-average remaining lease term | 1 year 3 months 18 days | |
Weighted-average discount rate | 3% |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Customer relationship | $ 200,641 | $ 200,641 |
Less: accumulated amortization | (200,641) | (200,641) |
Intangible assets |
Bank loan (Details)
Bank loan (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |||
Long term bank loan | [1] | $ 70,027 | $ 76,478 |
Less: Current portion of long term bank loan | [1] | (27,378) | (39,143) |
Total (Long term) | 42,649 | 37,335 | |
Short term bank loan | [2] | 1,012,110 | |
Current portion of long term bank loan | [1] | 27,378 | 39,143 |
$ 1,039,488 | $ 39,143 | ||
[1]As of December 31, 2022 and 2021, the above bank loan secured by property and equipment with net carrying amount of $143,130 and $50,992 respectively.[2]The Company and American Pacific Bancorp, Inc., a Texas corporation located in Houston, Texas, (“APB”) signed a Loan Agreement, Security Agreement and Revolving Credit Promissory Note (“Promissory Note”), each dated July 26, 2022 but fully executed and closed as of July 27, 2022, whereby APB will provide a $1 million secured revolving credit line to the Company (“APB Credit Line”). Loan Agreement, Security Agreement and Promissory Note may be referred to collectively as “Credit Line Documents”. The Credit Line Documents provide for a fixed 8% annual interest on sums advanced, two year maturity date for unpaid sums loaned and unpaid interest accrued thereon, and calendar quarterly payments of accrued interest on any sums advanced under Credit Line (interest payments commencing on September 30, 2022). The Credit Line is secured by a first, senior lien on all of the Company’s assets and accounts receivable, with net carrying amount of $5,739,861. |
Other payables and accrued li_3
Other payables and accrued liabilities (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Accrual | $ 652,424 | $ 878,532 |
Income taxes payable | 29,140 | 86,856 |
Total other payables and accrued liabilities | $ 681,564 | $ 965,388 |
Deferred income (Details)
Deferred income (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Income | ||
Service fees received in advance | $ 291,171 | $ 236,612 |
Income taxes (Details)
Income taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Current income tax | $ 78,016 | $ 79,549 |
Deferred income tax | (3,988) | 7,582 |
Income tax expenses | $ 74,028 | $ 87,131 |
Income taxes (Details 1)
Income taxes (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Loss Carryforwards [Line Items] | ||
Pre-tax income | $ 764,533 | $ 126,231 |
Current tax computed at various jurisdiction rate | 78,016 | 79,549 |
Deferred tax computed at various jurisdiction rate | (3,988) | 7,582 |
Effective income taxes | $ 74,028 | $ 87,131 |
U S Federal Corporate [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Effective Income Tax Rate Reconciliation, Deduction, Percent | 21% | 21% |
Philippine Corporate [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Effective Income Tax Rate Reconciliation, Deduction, Percent | 30% | 30% |
State Administration of Taxation, China [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Effective Income Tax Rate Reconciliation, Deduction, Percent | 25% | 25% |
Inland Revenue, Hong Kong [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Effective Income Tax Rate Reconciliation, Deduction, Percent | 16.50% | 16.50% |
Income taxes (Details 2)
Income taxes (Details 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred income tax assets: | ||
Tax losses | $ 38,110 | $ 44,038 |
Income taxes (Details Narrative
Income taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Loss Carryforwards [Line Items] | ||
Income tax provision | $ 74,028 | $ 87,131 |
U S Federal Corporate [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Statutory rate | 21% | 21% |
Inland Revenue, Hong Kong [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Statutory rate | 16.50% | 16.50% |
Philippine Corporate [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Statutory rate | 30% | 30% |
Statutory rate | 30% | |
Effective income tax rate | 10% | |
State Administration of Taxation, China [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Statutory rate | 25% | 25% |
Statutory rate | 25% | |
Income tax provision | $ 0 | $ 0 |
Statutory reserves (Details Nar
Statutory reserves (Details Narrative) | 12 Months Ended |
Dec. 31, 2022 | |
Remaining reserve percent | 25% |
Minimum [Member] | |
Banking regulation, maximum payout ratio | 10% |
Maximum [Member] | |
Banking regulation, maximum payout ratio | 50% |
Related party and shareholder_3
Related party and shareholder transactions (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Due from related parties | $ 2,400,028 | $ 1,642,488 | |
Due to related parties | 16,918 | 2,500 | |
Value Exchange International Limited I [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | [1] | 2,058,267 | 1,369,968 |
Cucumbuy Com Limited Ii [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | [2] | 33,333 | 2,564 |
Smartmyways Co Limited Iii [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | [3] | 92,308 | 61,539 |
Retail Intelligent Unit Limited Iv [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | [4] | 36,923 | 24,615 |
Appmyways Co Limited V [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | [5] | 86,776 | 159,643 |
Tap Technology Hk Limited Vi [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | [6] | 54,928 | 24,159 |
Value Exchange International Taiwan Co Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | [7] | 37,493 | |
S A Network Limitedviii [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | [8] | 16,918 | |
Mr Johan Pehrsonix [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | [9] | $ 2,500 | |
[1]Mr. Kenneth Tan and Ms. Bella Tsang, directors of the Company, are shareholders and a directors of Value Exchange International Limited, a company incorporated in Hong Kong. The balance is unsecured, interest free and repayable on demand.[2]Ms. Bella Tsang, a director of the Company, is a shareholder and a director of Cucumbuy.com Limited, a company incorporated in Hong Kong. The balance is unsecured, interest free and repayable on demand.[3]Ms. Bella Tsang, a director of the Company, is a shareholder and a director of SmartMyWays Co., Limited, a company incorporated in Hong Kong. Mr. Kenneth Tan, a director of the Company, is a director of SmartMyWays Co., Limited. The balance is unsecured, interest free and repayable on demand.[4]Ms. Bella Tsang, a director of the Company, is a shareholder and a director of Retail Intelligent Unit Limited, a company incorporated in Hong Kong. Mr. Kenneth Tan, a director of the Company, is a director of Retail Intelligent Unit Limited. The balance is unsecured, interest free and repayable on demand.[5]Ms. Bella Tsang, a director of the Company, is a shareholder and a director of AppMyWays Co., Limited, a company incorporated in Hong Kong. The balance is unsecured, interest free and repayable on demand.[6]Ms. Bella Tsang, a director of the Company, is a shareholder and a director of TAP Technology (HK) Limited, a company incorporated in Hong Kong. The balance is unsecured, interest free and repayable on demand.[7]Ms. Bella Tsang, a director of the Company, is a shareholder and a director of Value Exchange International (Taiwan) Co, Ltd, a company incorporated in Taiwan. The balance is unsecured, interest free and repayable on demand.[8]Ms. Bella Tsang, a director of the Company, is a shareholder and a director of SA-Network Limited, a company incorporated in England and Wales. The balance is unsecured, interest free and repayable on demand.[9]Mr. Johan Pehrson is a director of the Company. The balance is unsecured, interest free and repayable on demand. |
Related party and shareholder_4
Related party and shareholder transactions (Details 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Value Exchange International Limited [Member] | |||
Related Party Transaction [Line Items] | |||
Subcontracting fees payable | [1] | $ (631,708) | $ (698,564) |
Service income received | [1] | 602,682 | 389,796 |
Management fees received | [1] | 64,397 | 98,821 |
Cucumbuy.com Limited [Member] | |||
Related Party Transaction [Line Items] | |||
Subcontracting fees payable | [2] | (15,385) | |
T A P Technology H K Limited [Member] | |||
Related Party Transaction [Line Items] | |||
Subcontracting fees payable | [3] | (110,092) | (121,588) |
Management fees received | [3] | 30,769 | 30,769 |
Value Exchange International Taiwan Co Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Subcontracting fees payable | [4] | (8,497) | |
Service income received | [4] | 37,033 | |
S A Network Limited [Member] | |||
Related Party Transaction [Line Items] | |||
Subcontracting fees payable | [5] | (17,139) | |
Value E Consultant International M Sdn Bhd [Member] | |||
Related Party Transaction [Line Items] | |||
Subcontracting fees payable | [6] | (47,285) | (34,840) |
App My Ways Co Limited [Member] | |||
Related Party Transaction [Line Items] | |||
Service income received | [7] | 30,087 | 657,568 |
Cucumbuy Com Limited Ii [Member] | |||
Related Party Transaction [Line Items] | |||
Management fees received | [2] | 30,769 | 30,769 |
Smart My Ways Co Limited [Member] | |||
Related Party Transaction [Line Items] | |||
Management fees received | [8] | 30,769 | 30,769 |
Retail Intelligent Unit Limited Iv [Member] | |||
Related Party Transaction [Line Items] | |||
Management fees received | [9] | 12,308 | 12,308 |
Value X International Pte Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Management fees received | [10] | $ 8,311 | |
[1]Mr. Kenneth Tan and Ms. Bella Tsang, directors of the Company, are shareholders and a directors of Value Exchange International Limited, a company incorporated in Hong Kong. The balance is unsecured, interest free and repayable on demand.[2]Ms. Bella Tsang, a director of the Company, is a shareholder and a director of Cucumbuy.com Limited, a company incorporated in Hong Kong. The balance is unsecured, interest free and repayable on demand.[3]Ms. Bella Tsang, a director of the Company, is a shareholder and a director of TAP Technology (HK) Limited, a company incorporated in Hong Kong. The balance is unsecured, interest free and repayable on demand.[4]Ms. Bella Tsang, a director of the Company, is a shareholder and a director of Value Exchange International (Taiwan) Co, Ltd, a company incorporated in Taiwan. The balance is unsecured, interest free and repayable on demand.[5]Ms. Bella Tsang, a director of the Company, is a shareholder and a director of SA-Network Limited, a company incorporated in England and Wales. The balance is unsecured, interest free and repayable on demand.[6]Ms. Bella Tsang, a director of the Company, is a shareholder of Value E Consultant International (M) Sdn. Bhd, a company incorporated in Malaysia. The balance is unsecured, interest free and repayable on demand.[7]Ms. Bella Tsang, a director of the Company, is a shareholder and a director of AppMyWays Co., Limited, a company incorporated in Hong Kong. The balance is unsecured, interest free and repayable on demand.[8]Ms. Bella Tsang, a director of the Company, is a shareholder and a director of SmartMyWays Co., Limited, a company incorporated in Hong Kong. Mr. Kenneth Tan, a director of the Company, is a director of SmartMyWays Co., Limited. The balance is unsecured, interest free and repayable on demand.[9]Ms. Bella Tsang, a director of the Company, is a shareholder and a director of Retail Intelligent Unit Limited, a company incorporated in Hong Kong. Mr. Kenneth Tan, a director of the Company, is a director of Retail Intelligent Unit Limited. The balance is unsecured, interest free and repayable on demand.[10]Ms. Bella Tsang, a director of the Company, is a shareholder and a director of ValueX International Pte. Ltd., a company incorporated in Singapore. The balance is unsecured, interest free and repayable on demand. |
Concentration of risks (Details
Concentration of risks (Details) - Customer Concentration Risk [Member] | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue Benchmark [Member] | Aisino Wincor Nixdorf Retail And Banking Systems [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 22.30% | 25.50% |
Revenue Benchmark [Member] | Wuhan Watsons Personal Care Stores Co [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 16.70% | 22.90% |
Revenue Benchmark [Member] | Robinsons Retail Group [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 12% | |
Revenue Benchmark [Member] | P C C W Solutions Limited [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 15.60% | 2% |
Accounts Receivable [Member] | Aisino Wincor Nixdorf Retail And Banking Systems [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 4.10% | 10.90% |
Accounts Receivable [Member] | Robinsons Retail Group [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 19.40% | 38.40% |
Accounts Receivable [Member] | P C C W Solutions Limited [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 27.90% | 15.10% |
Accounts Receivable [Member] | Fujitsu South China Limited [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 0.60% | 16.30% |
Subsequent events (Details Narr
Subsequent events (Details Narrative) - USD ($) | Jan. 31, 2023 | Dec. 31, 2022 |
Subsequent Event [Line Items] | ||
Outstanding balance | $ 1,500,000 | |
A P B Credit Line [Member] | ||
Subsequent Event [Line Items] | ||
Outstanding balance | $ 504,910 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Maximum Credit Line | $ 1,500 | |
Simple interest accrued | 8% | |
Event own percent | 50% | |
Subsequent Event [Member] | A P B Credit Line [Member] | ||
Subsequent Event [Line Items] | ||
Credit line | $ 1,000,000 | |
Subsequent Event [Member] | Chan Heng [Member] | ||
Subsequent Event [Line Items] | ||
Event own percent | 99.69% | |
Subsequent Event [Member] | Mr Chan [Member] | ||
Subsequent Event [Line Items] | ||
Event own percent | 95.60% |