Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Apr. 11, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Entity Registrant Name | MAKINGORG, INC. | ||
Entity Central Index Key | 0001569083 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Current Reporting Status | Yes | ||
Document Period End Date | Dec. 31, 2021 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Entity Common Stock Shares Outstanding | 35,540,000 | ||
Entity Public Float | $ 7,588,899 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 000-55260 | ||
Entity Incorporation State Country Code | NV | ||
Entity Tax Identification Number | 39-2079723 | ||
Entity Address Address Line 1 | 385 S. Lemon Avenue | ||
Entity Address Address Line 2 | E 301 | ||
Entity Address City Or Town | Walnut | ||
Entity Address State Or Province | CA | ||
Entity Address Postal Zip Code | 91789 | ||
City Area Code | 213 | ||
Auditor Name | Simon & Edward, LLP | ||
Auditor Location | Rowland Heights, California | ||
Auditor Firm Id | 2485 | ||
Local Phone Number | 805-5799 | ||
Security 12g Title | Common Stock, $0.001 par value | ||
Entity Interactive Data Current | No |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 108,356 | $ 30,700 |
Accounts receivable - related party | 0 | 48,934 |
Advances to vendor and others | 80,677 | 2,000 |
Due from related party | 0 | 12,256 |
Right-of-use assets - operating leases | 31,171 | 0 |
Total Current Assets | 220,204 | 93,890 |
Right-of-use assets - operating leases | 0 | 98,653 |
Total Assets | 220,204 | 192,543 |
Current Liabilities | ||
Convertible note payable | 200,000 | 0 |
Interest payable | 128,000 | 104,000 |
Accrued liabilities | 11,234 | 4,747 |
Lease liabilities - operating leases | 31,171 | 70,534 |
Due to related party | 386,418 | 340,286 |
Total Current Liabilities | 756,823 | 519,567 |
Long-Term Liabilities | ||
Convertible note payable, noncurrent | 0 | 200,000 |
Lease liabilities - operating lease, noncurrent | 0 | 12,756 |
Total Long-term Liabilities | 0 | 212,756 |
TOTAL LIABILITIES | 764,023 | 732,323 |
Stockholders' Equity (Deficit) | ||
Preferred stock, par value $0.001; 50,000,000 shares authorized, zero shares issued and outstanding | 0 | 0 |
Common stock, par value $0.001; 150,000,000 shares authorized, 35,540,000 shares issued and outstanding as of December 31, 2021 and 2020 | 35,540 | 35,540 |
Additional paid-in capital | 583,882 | 583,882 |
Accumulated other comprehensive income | 6,266 | 2,491 |
Accumulated deficit | (1,162,307) | (1,161,693) |
Total Stockholders' Deficit | (536,619) | (539,780) |
Total Liabilities and Stockholders' Deficit | $ 220,204 | $ 192,543 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
CONSOLIDATED BALANCE SHEETS | ||
Preferred stock, shares par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 35,540,000 | 35,540,000 |
Common stock, shares outstanding | 35,540,000 | 35,540,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||
REVENUE - RELATED PARTY | $ 611,328 | $ 238,587 |
COST OF REVENUE | 397,120 | 145,470 |
GROSS PROFIT | 214,208 | 175,069 |
OPERATING EXPENSES | ||
Selling, general and administrative | 102,297 | 97,191 |
Professional fees | 88,248 | 92,996 |
TOTAL OPERATING EXPENSES | 190,545 | 190,187 |
INCOME (LOSS) FROM OPERATIONS | 23,663 | (97,070) |
OTHER INCOME (EXPENSE) | ||
Interest income | 2 | 288 |
Interest expense | (24,000) | (60,267) |
Other income, net | 1,348 | 3,948 |
Loss on inventory write-down | 0 | (9,420) |
TOTAL OTHER EXPENSE, NET | (22,650) | (65,451) |
INCOME (LOSS) BEFORE INCOME TAX | 1,013 | (162,521) |
Income tax | 1,627 | 3,329 |
NET LOSS | (614) | (165,850) |
OTHER COMPREHENSIVE ITEM: | ||
Foreign currency translation income | 3,775 | 5,373 |
TOTAL COMPREHENSIVE LOSS | $ (3,161) | $ (160,477) |
NET LOSS PER COMMON SHARE: BASIC AND DILUTED | $ 0 | $ (0.002) |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: BASIC AND DILUTED | 35,540,000 | 35,540,000 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS DEFICIT - USD ($) | Total | Common Stock | Additional Paid-In Capital | Accumulated other comprehensive Income | Accumulated Deficit |
Balance, shares at Dec. 31, 2019 | 35,430,000 | ||||
Balance, amount at Dec. 31, 2019 | $ (379,303) | $ 35,430 | $ 583,882 | $ (2,882) | $ (995,843) |
Foreign currency translation loss | 5,373 | 0 | 0 | 5,373 | 0 |
Net loss | (165,850) | $ 0 | 0 | 0 | (165,850) |
Balance, shares at Dec. 31, 2020 | 35,430,000 | ||||
Balance, amount at Dec. 31, 2020 | (539,780) | $ 35,430 | 583,882 | 2,491 | (1,161,693) |
Foreign currency translation loss | 3,775 | 0 | 0 | 3,775 | 0 |
Net loss | (614) | $ 0 | 0 | 0 | (614) |
Balance, shares at Dec. 31, 2021 | 35,540,000 | ||||
Balance, amount at Dec. 31, 2021 | $ (536,619) | $ 35,540 | $ 583,882 | $ 6,266 | $ (1,162,307) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (614) | $ (165,850) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Loss on inventories write-down | 0 | 9,420 |
Amortization of debt discount | 0 | 36,267 |
Changes in assets and liabilities: | ||
Accounts receivable | 49,504 | (46,292) |
Inventories | 0 | 34,442 |
Prepaid expenses and other current assets | (77,490) | 32,603 |
Interest payable | 24,000 | 24,000 |
Accrued liabilities | 6,408 | (10,403) |
Customer deposit - related party | 0 | (6,741) |
Lease liabilities | (27,941) | (14,784) |
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES | 29,748 | (107,338) |
CASH FLOWS FROM/USED BY INVESTING ACTIVITIES | ||
Loan to related party | 0 | (11,594) |
CASH FLOWS USED IN INVESTING ACTIVITIES | 0 | (11,594) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Loan from related party | 46,132 | 54,417 |
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES | 46,132 | 54,417 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 1,776 | 1,004 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 77,656 | (63,511) |
Cash and cash equivalents, beginning of period | 30,700 | 94,211 |
Cash and cash equivalents, end of period | 108,356 | 30,700 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Interest paid | 0 | 0 |
Income taxes paid | $ 800 | $ 4,129 |
ORGANIZATION AND NATURE OF BUSI
ORGANIZATION AND NATURE OF BUSINESS | 12 Months Ended |
Dec. 31, 2021 | |
ORGANIZATION AND NATURE OF BUSINESS | |
NOTE 1 - ORGANIZATION AND NATURE OF BUSINESS | NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS MakingORG, Inc. (“MakingORG”) was incorporated under the laws of the State of Nevada on August 10, 2012. The trading symbol is “CQCQ” and the fiscal year end is December 31. On October 20, 2016, MakingORG filed documents registering its intention to transact interstate business in the state of California. On November 29, 2016, MakingORG incorporated HK Feng Wang Group Limited (“HKFW”) under the laws of Hong Kong. On August 22, 2017, HKFW incorporated Chongqing Beauty Kenner Biotechnology Co., Ltd (“CBKB”) under the laws of the People’s Republic of China (“PRC”). MaingORG, Inc. and subsidiaries (“the Company”) purchase Acer truncatum bunge seed oil from China, outsource to third party to manufacture Acer truncatum bunge related health products, and sell to end user and distributor in the United States and PRC. In January 2020, the World Health Organization declared an outbreak of the coronavirus (“COVID-19”) to be a Public Health Emergency of International Concern, subsequently declared COVID-19 a global pandemic, and recommended containment and mitigation measures worldwide on March 11, 2020. The Company had experienced some adverse impacts on its business in the PRC Segment, such as limited access to its staff in the PRC in the beginning of the outbreak and restrictions on business travel within the PRC and between USA and PRC. Even though the operations in the PRC segment fully resumed in the third quarter of 2020, the pandemic has created global economic uncertainties and led to negative impact on the financial markets. The extent of the COVID-19 impact to the Company will depend on numerous factors and developments related to COVID-19. Consequently, any potential impacts of COVID-19 remain highly uncertain and cannot be predicted with confidence. |
GOING CONCERN
GOING CONCERN | 12 Months Ended |
Dec. 31, 2021 | |
GOING CONCERN | |
NOTE 2 - GOING CONCERN | NOTE 2 – GOING CONCERN Pursuant to ASU 2014-15, the Company has assessed its ability to continue as a going concern for a period of one year from the date of the issuance of these consolidated financial statements. Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year from the financial statement issuance date. The accompanying consolidated financial statements have been prepared in conformity with generally accepted accounting principle, which contemplate continuation of the Company as a going concern. The Company currently suffered recurring loss from operations, generated negative cash flow from operating activities and has an accumulated deficit and has not completed its efforts to establish a stabilized source of revenues sufficient to cover operating costs over an extended period. These conditions raise substantial doubt as to its ability to continue as a going concern. These consolidated financial statements do not include adjustments relating to the recoverability and classification of reported asset amounts or the amount and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company had net losses of $614 and $165,850 for the years ended December 31, 2021 and 2020 respectively. In addition, the Company had an accumulated deficit of $1,162,307 and $1,161,693, respectively, and generated not enough/negative cash flows from operating activities as of and for years ended December 31, 2021 and 2020, respectively. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent on its ability to raise additional capital. The Company’s consolidated financial statements do not include any adjustments relating to the recoverability and classification of reported asset amounts or the amount and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses. The Company may seek additional funding through additional issuance of common stock and/or borrowings from financial institutions or the majority shareholder to support its normal business operations. Considering management’s efforts, there is no assurance that the Company will be successful in this or any of its endeavors or become financially viable to continue as a going concern. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The Company’s consolidated financial statements refer to MakingORG, Inc. and its subsidiaries. All intercompany transactions and balances were eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the Company’s consolidated financial statement date and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. Cash and Cash Equivalents Cash and cash equivalents primarily consist of cash on deposit with banks and financial institutes and petty cash on hands. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivables are reported realizable value, net of allowance for contractual credits and doubtful accounts, which are recognized in the period the related revenue is recorded. Accounts receivable consists principally of receivables from distributor or end user, arising from the sale of the Company’s product. The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts. The Management evaluated that there was no allowance for doubtful accounts as of December 31, 2021 and 2020, respectively. Inventories Inventories consist of (a) packing materials (b) raw materials and (b) finished goods, which are stated at the lower of cost or net realizable value under the first-in-first-out method. The Company reviews its inventories periodically for possible excess and obsolescence to determine if any reserves are necessary. As of December 31, 2021 and 2020, there were no inventory held on hands. Revenue Recognition The Company adopted Topic 606, Revenue from Contracts with Customers, using the modified retrospective transition method on January 1, 2018. In general, the Company’s performance obligation is to transfer it products to its end user or distributor. Revenues from product sales are recognized when the customer obtains control of the Company’s finished goods product, which occurs at a point in time, typically upon delivery to the customer. The Company’s revenue mainly generates from sale of acer truncatum bunge related health products, such as Nervonic Acid Oil, coffee and tea. The Company evaluates its product sales contracts and determined that those contracts are generally capable of being distinct and accounted for as separate performance obligations. Performance obligation is satisfied when the finished goods product delivered to the customer. Shipping and handling costs paid by the Company are included in cost of sales. Advertising Expenses Advertising costs are expensed as incurred. There were no advertising expenses for the years ended December 31, 2021 and 2020. Income Taxes Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are using enacted tax rate expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided for deferred tax assets that, based on available evidence, if more likely than not that the company will not realize tax assets through future operation. The 2017 Tax Reform Act permanently reduces the U.S. corporate income tax rate to a flat 21% rate. In addition, the 2017 Tax Reform Act also creates a new requirement that certain income (i.e., Global Intangible Low-Taxed Income (“GILTI”)) earned by controlled foreign corporations (“CFCs”) must be included in the gross income of the CFCs’ U.S. shareholder income. The tax law in PRC applies an income tax rate of 25% to all enterprises. The Company’s subsidiary does not receive any preferential tax treatment from local government. The Company has been in loss position for years and zero balances of tax provisions, deferred tax assets and liabilities as of the reporting periods ended. Basic Income (Loss) Per Share Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. Foreign Currency Transactions The functional currency for MakingORG and HKFW is US dollar. The functional currency for the China subsidiary (CBKB) is the Renminbi (RMB). Assets and liabilities of the China operation are translated from RMB into U.S. dollars at period-end rates, while the statements of operations and cash flows are translated at the weighted-average exchange rates for the period. The related translation adjustments are reflected as a foreign currency translation adjustment in accumulated other comprehensive income/(loss) within shareholders’ deficit. The Company translates the assets and liabilities into U.S. dollars using the rate of exchange prevailing at the balance sheet date and the statements of operations and cash flows are translated at an average rate during the reporting period. Adjustments resulting from the translation from RMB into U.S. dollars are recorded in stockholders’ equity as part of accumulated other comprehensive income. The exchange rates used for financial statements are as follows: Average Rate for the Twelve Months Ended December 31, 2021 2020 China yuan (RMB) RMB 6.452480 RMB 6.900133 United States dollar ($) $ 1.000000 $ 1.000000 Exchange Rate at December 31, 2021 December 31, 2020 China yuan (RMB) RMB 6.355095 RMB 6.527650 United States dollar ($) $ 1.000000 $ 1.000000 Related Parties The Company follows ASC 850, “Related Party Disclosures,” for the identification of related parties and disclosure of related party transactions. Lease The Company adopted new lease accounting – ASC 842 on January 1,2019. The Company determines if an arrangement is or contains a lease at inception. Operating leases with lease terms of more than 12 months are included in operating lease assets, accrued and other current liabilities, and long-term operating lease liabilities on its consolidated balance sheet. Operating lease assets represent its right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments over the lease term. Operating lease assets and liabilities are recognized based on the present value of the remaining lease payments discounted using its incremental borrowing rate. Lease expense is recognized on a straight-line basis over the lease term. Segment Reporting The Company follows Financial Accounting Standards Board (“FASB”) ASC Topic 280, “Segment Reporting” for its segment reporting. The Company aggregates its operating segments into one reporting segment, as management believes that its operating segments have similar operating characteristics and similar long-term operating performance. Fair Value of Financial Instruments Fair value is defined as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk including the Company’s own credit risk. In addition to defining fair value, the standard expands the disclosure requirements around fair value and establishes a fair value hierarchy for valuation inputs. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels which are determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are: Level 1 – inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. Level 2 – inputs are based upon significant observable inputs other than quoted prices included in Level 1, such as quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. The carrying amounts of financial assets and liabilities in the consolidated balance sheets for cash and cash equivalents, advances to vendor, accrued expenses, interest payable and due to related party approximate their fair value due to the short-term duration of those instruments. Convertible notes payable is recorded at agreed values. Recently Issued Accounting Pronouncement Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, (FASB ASC Topic 326), Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments which amends the current accounting guidance and requires the use of the new forward-looking “expected loss” model, which requires all expected losses to be determined based on historical experience, current conditions and reasonable and supportable forecasts, rather than the “incurred loss” model. This guidance amends the accounting for credit losses for most financial assets and certain other instruments including trade and other receivables, held-to-maturity debt securities, loans and other instruments. The effective date of ASU No. 2016-13 for smaller reporting companies is postponed to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company believes the adoption of ASU No. 2016-13 will not have a material impact on its financial position and results of operations. The management does not believe that other than disclosed above, the recently issued but not yet adopted accounting pronouncements will have a material impact on its financial position results of operations or cash flows. |
ADVANCES TO VENDOR AND OTHERS
ADVANCES TO VENDOR AND OTHERS | 12 Months Ended |
Dec. 31, 2021 | |
ADVANCES TO VENDOR AND OTHERS | |
NOTE 4 - ADVANCES TO SUPPLIER | NOTE 4 – ADVANCES TO VENDOR AND OTHERS Advances to vendors and others include primarily $78,677 and nil advance for purchasing of packaging materials out of $80,677 and $2,000 balances as of December 31, 2021 and 2020, respectively. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
RELATED PARTY TRANSACTIONS | |
NOTE 6 - RELATED PARTY TRANSACTIONS | NOTE 5 – RELATED PARTY TRANSACTIONS Due to Related Party The Company lent RMB 80,000 (approximately $12,209) to the Entity A, a related party whose shareholder is a board member of CBKB, and the landlord of the office space CBKB leased in China. The loan has a term of six months and matured on March 31, 2021, with a monthly interest rate of 1%. According to the loan agreement, the loan principal could be applied to the monthly lease payment for two months (RMB 40,000 per month). The related party was not able to pay back the loan on the maturity date and CBKB withheld April and May 2021 lease payments to offset with the loan principal due. The Entity A paid the entire interests of RMB 4,800 back on April 1, 2021. As of December 31, 2021 and 2020, due to related party were nil and $12,256, respectively. Due from Related Party During the years ended December 31, 2021 and 2020, the Company’s Chief Executive Officer (“CEO”) lent the Company $46,132 and $54,417, respectively, with the loan balances totaling $386,418 and $340,286 as of December 31,2021 and 2020. The loans are unsecured, non-interest bearing and due on demand. Sales to Related Party The Company sells product to its related party, the Entity A. For the years ended December 31, 2021 and 2020, the Company total revenue generated from the transaction with the related party were $611,328 and $238,587, respectively. As of December 31, 2021 and 2020, accounts receivable due from Entity A were $nil and $48,934, respectively. Lease Agreement On June 1, 2020, the Company entered into a lease agreement with Entity A in Chongqing, China for the period from June 1, 2020 to May 31, 2021. Pursuant to the lease agreement, the monthly rent was RMB40,000 (approximately $6,000) which should be paid quarterly. The lease had a one-year term and the Company had the priority to renew the lease. The Company was still leasing the property after the lease term ended and paying the rent quarterly. Refer to Note 8 – Lease for details. |
BUSINES CONCENTRATION AND RISKS
BUSINES CONCENTRATION AND RISKS | 12 Months Ended |
Dec. 31, 2021 | |
BUSINES CONCENTRATION AND RISKS | |
NOTE 7 - BUSINES CONCENTRATION AND RISKS | NOTE 6 – BUSINES CONCENTRATION AND RISKS Concentration of Risk The Company maintains cash with banks in the USA, People’s Republic of China (“PRC” or “China”), and Hong Kong. Should any bank holding cash become insolvent, or if the Company is otherwise unable to withdraw funds, the Company would lose the cash with that bank; however, the Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. In China, a depositor has up to RMB 500,000 insured by the People’s Bank of China Financial Stability Bureau (“FSD”). In Hong Kong, a depositor has up to HKD 500,000 insured by Hong Kong Deposit Protection Board (“DPB”). In the United States, the standard insurance amount is $250,000 per depositor in a bank insured by the Federal Deposit Insurance Corporation (“FDIC”). Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents. As of December 31, 2021 and 2020, the Company’s cash and cash equivalents were fully insured. Major customer For the years ended December 31, 2021 and 2020, the Company generated revenues exclusively from one customer – Entity A in the amounts of $611,328 and $238,587, respectively. Major vendors For the years ended December 31, 2021 and 2020, the Company’s purchase from the vendors accounted more than 10% of total purchase were: Years Ended December 31, 2021 2020 Amount % of Total Purchase Amount % of Total Purchase Vendor A $ 231,280 52 % $ 65,948 82 % Vendor B $ 108,770 25 % $ 7,328 9 % Vendor C $ 57,071 13 % $ - - % |
CONVERTIBLE NOTE PAYABLE
CONVERTIBLE NOTE PAYABLE | 12 Months Ended |
Dec. 31, 2021 | |
CONVERTIBLE NOTE PAYABLE | |
NOTE 8 - CONVERTIBLE NOTE PAYABLE | NOTE 8 – CONVERTIBLE NOTE PAYABLE On September 1, 2016, the Company entered into a Convertible Note Agreement in the principal amount of $200,000 with an unrelated party. The note bears interest at 12% per annum and the holder is able to convert all unpaid interest and principal into common shares at $3.50 per share. The note matures on September 1, 2018. The Company recognized a discount on the note of $38,857 at the agreement date. The interest expense was due every six months commencing on March 1, 2017 until the principal amount of this convertible note is paid in full. On September 1, 2018, the Company entered into an Amended and Restated 12% Convertible Promissory Note. Pursuant to an Amended and Restated 12% Convertible Promissory Note, both parties agreed to extend a Convertible Note Agreement to September 1, 2019 with no additional consideration. The Company recognized a discount on the note of $40,000 at the amended agreement date. On September 1, 2019, the Company entered into an amended and restated 12% convertible promissory note. Pursuant to the amended convertible promissory note, both parties agreed to extend the convertible note agreement to September 1, 2020 with no additional consideration. The Company recognized a discount on the note of $54,400 at the amended agreement date. Since the conversion feature of conventional convertible debt provides for a rate of conversion that is below market value, this feature is characterized as a beneficial conversion feature (“BCF”). A BCF is recorded by the Company as a debt discount pursuant to ASC Topic 470-20 “Debt with Conversion and Other Options.” In those circumstances, the convertible debt is recorded net of the discount related to the BCF and the Company amortizes the discount to interest expense over the life of the debt using the effective interest method. On September 1, 2020, the Company entered into an amended and restated 12% convertible promissory note. Pursuant to the amended convertible promissory note, both parties agreed to extend the convertible note agreement to September 1, 2022 with no additional consideration. The Company recognized a discount on the note of $0 at the amended agreement date. The Company recognized interest expense related to the convertible note of $24,000 and $54,267, respectively, for the years ended December 31, 2021 and 2020, respectively. As of December 31, 2021, and 2020, the Company had $128,000 and $104,000 interest payable associated with the $200,000 convertible note, respectively. |
LEASE
LEASE | 12 Months Ended |
Dec. 31, 2021 | |
LEASE | |
NOTE 9 - LEASE | NOTE 9 – LEASE The Company adopted ASC 842 on January 1, 2019. The Company entered an operating lease for its China office with Entity A with monthly rent of RMB40,000 (approximately $6,100) on June 1, 2020. The lease was for one year and the Company renewed the lease. Leases was classified as operating at the inception of the lease. Operating leases result in the recognition of ROU assets and lease liabilities on the balance sheet. ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease terms of the commencement date. Because the leases do not provide an explicit or implicit rate of return, the Company determines incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments on an individual lease basis. The incremental borrowing rate for a lease is the rate of interest the Company would have to pay on a collateralized basis to borrow an amount equal to the lease payments for the asset under similar term, which is 5.25%. The lease does not contain any residual value guarantees or material restrictive covenants. The remaining term including the renewal term as of December 31, 2021 was five months. The Company has no finance lease. The components of lease expense consist of the following: Years Ended December 31, Classification 2021 2020 Operating lease cost Selling, General & Administrative expenses $ 70,848 $ 46,329 Balance sheet information related to leases consists of the following: Classification December 31, 2021 December 31, 2020 Assets Operating lease ROU assets Right-of-use assets $ 31,171 $ 98,653 Liabilities Operating lease liabilities Current portion $ 31,171 $ 70,534 Operating lease liabilities Long-term portion - 12,756 Total lease liabilities $ 31,171 $ 83,290 Weighted average remaining lease term Operating leases 0.42 1.42 Weighted average discount rate Operating leases 5.25 % 5.25-7.33 % Cash flow information related to leases consists of the following: Years Ended December 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 37,195 $ 47,027 Right-of-use assets obtained in exchange for lease obligations: Operating leases 71,066 139,275 As previously discussed, the Company adopted Topic 842 by applying the guidance at adoption date, January 1, 2019. As required, the following disclosure is provided for periods prior to adoption, which continue to be presented in accordance with ASC 840. Future minimum lease payment under non-cancellable lease as of December 31, 2021 was as follows: Operating Leases Year ending December 31, 2022 $ 31,471 Less: Interest (300 ) Present value of lease liabilities $ 31,171 |
STOCKHOLDERS DEFICIT
STOCKHOLDERS DEFICIT | 12 Months Ended |
Dec. 31, 2021 | |
STOCKHOLDERS DEFICIT | |
NOTE 10 - STOCKHOLDERS DEFICIT | NOTE 9 – STOCKHOLDERS’ DEFICIT Common Stock No common stock was issued in 2021 and 2020. As of December 31, 2021 the Company had 35,540,000 shares of common stock issued and outstanding. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
INCOME TAXES | |
NOTE 11 - INCOME TAXES | NOTE 10 – INCOME TAXES The Company accounts for income taxes under ASC 740, “Income Taxes”. ASC 740 requires the use of an asset and liability approach in accounting for income taxes. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax basis of assets and liabilities and the tax rates in effect when these differences are expected to reverse. It also requires the reduction of deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company is subject to taxation in the United States and certain state jurisdictions. The provision for income taxes differs from the amounts which would be provided by applying the statutory federal income tax rate of 21% to the net loss before provision for income taxes. HKFW in Hong Kong are governed by the Inland Revenue Ordinance Tax Law of Hong Kong, and are generally subject to a profits tax at the rate of 16.5% on the estimated assessable profits. CBNB in the PRC is governed by the Income Tax Law of the PRC concerning the private enterprises, which are generally subject to tax at 25% on income reported in the statutory financial statements after appropriated adjustments. PRC also give tax discount to small enterprise whose annual taxable income exceeding 1 million but not exceeding 3 million. The Company’s income tax expense is mainly contributed by its subsidiary in PRC. In addition, the 2017 Tax Act also creates a new requirement that certain income (i.e., Global Intangible Low-Taxed Income (“GILTI”)) earned by controlled foreign corporations (“CFCs”) must be included currently in the gross income of the CFCs’ U.S. shareholder income. GILTI is the excess of the shareholder’s net CFC tested income over the net deemed tangible income return, which is currently defined as the excess of (1) 10 percent of the aggregate of the U.S. shareholder’s pro rata share of the qualified business asset investment of each CFC with respect to which it is a U.S. shareholder over (2) the amount of certain interest expense taken into account in the determination of net CFC-tested income. The Company has elected to recognize the tax on GILTI as a period expense in the period the tax is incurred. For the years ended December 31, 2021 and 2020, no GILTI tax obligation existed and the GILTI tax expense was nil. Provision (benefit) for income tax for the year ended December 31, 2021 consisted of: Year ended December 31, 2021 Federal State Foreign Total Current $ - $ 800 $ 827 $ 1,627 Deferred - - - - Total $ - $ 800 $ 827 $ 1,627 Provision (benefit) for income tax for the year ended December 31, 2020 consisted of: Year ended December 31, 2020 Federal State Foreign Total Current $ - $ 800 $ 2,529 $ 3,329 Deferred - - - - Total $ - $ 800 $ 2,529 $ 3,329 Net deferred tax assets consist of the following components as of: December 31, 2021 2020 Deferred tax asset: Net operating loss carry forwards $ 182,688 $ 159,635 Valuation allowance (182,688 ) (159,635 ) Net deferred tax asset $ - $ - Due to the change in ownership provisions of the Income Tax laws of United States of America, net operating loss carry forwards of approximately $481,000, which expires in 2032, for federal income tax reporting purposes are subject to annual limitations. When a change in ownership occurs, net operating loss carry forwards may be limited as to use in future years. Tax filings for the Company for the years after 2015 are available for examination by state tax jurisdictions and federal tax purposes. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2021 | |
SEGMENT REPORTING | |
NOTE 12 - SEGMENT REPORTING | NOTE 11 – SEGMENT REPORTING The geographical distributions of the Company’s financial information for the years ended December 31, 2021 and 2020 were as follows: For the Years ended December 31, Geographic Areas 2021 2020 Revenue PRC 611,328 238,587 USA - - Total Revenue $ 611,328 $ 238,587 Income (Loss) from Operations PRC $ (114,699 ) $ 5,877 USA 91,036 (102,947 ) Total Loss from operations $ (23,663 ) $ (97,070 ) Net Income (Loss) PRC $ 115,220 $ 7,582 USA (115,834 ) (173,432 ) Total Net Loss $ (614 ) $ (165,850 ) The geographical distribution of the Company’s financial information as of December 31, 2021 and 2020 were as follows: For the Years ended December 31, Geographic Areas 2021 2020 Reportable Assets PRC 323,893 170,916 USA 44,498 47,384 Elimination (148,187 ) (25,757 ) Total Reportable Assets $ 220,204 $ 192,543 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2021 | |
SUBSEQUENT EVENT | |
NOTE 13 - SUBSEQUENT EVENT | NOTE 12 – SUBSEQUENT EVENT The Company has evaluated all subsequent events through the date the consolidated financial statements were issued and determine that there were no subsequent events or transactions that require recognition or disclosures in the consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Principles of Consolidation | The Company’s consolidated financial statements refer to MakingORG, Inc. and its subsidiaries. All intercompany transactions and balances were eliminated in consolidation. |
Use of Estimates | The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the Company’s consolidated financial statement date and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. |
Cash and Cash Equivalents | Cash and cash equivalents primarily consist of cash on deposit with banks and financial institutes and petty cash on hands. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts receivables are reported realizable value, net of allowance for contractual credits and doubtful accounts, which are recognized in the period the related revenue is recorded. Accounts receivable consists principally of receivables from distributor or end user, arising from the sale of the Company’s product. The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts. The Management evaluated that there was no allowance for doubtful accounts as of December 31, 2021 and 2020, respectively. |
Inventories | Inventories consist of (a) packing materials (b) raw materials and (b) finished goods, which are stated at the lower of cost or net realizable value under the first-in-first-out method. The Company reviews its inventories periodically for possible excess and obsolescence to determine if any reserves are necessary. As of December 31, 2021 and 2020, there were no inventory held on hands. |
Revenue Recognition | The Company adopted Topic 606, Revenue from Contracts with Customers, using the modified retrospective transition method on January 1, 2018. In general, the Company’s performance obligation is to transfer it products to its end user or distributor. Revenues from product sales are recognized when the customer obtains control of the Company’s finished goods product, which occurs at a point in time, typically upon delivery to the customer. The Company’s revenue mainly generates from sale of acer truncatum bunge related health products, such as Nervonic Acid Oil, coffee and tea. The Company evaluates its product sales contracts and determined that those contracts are generally capable of being distinct and accounted for as separate performance obligations. Performance obligation is satisfied when the finished goods product delivered to the customer. Shipping and handling costs paid by the Company are included in cost of sales. |
Advertising Expenses | Advertising costs are expensed as incurred. There were no advertising expenses for the years ended December 31, 2021 and 2020. |
Income Taxes | Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are using enacted tax rate expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided for deferred tax assets that, based on available evidence, if more likely than not that the company will not realize tax assets through future operation. The 2017 Tax Reform Act permanently reduces the U.S. corporate income tax rate to a flat 21% rate. In addition, the 2017 Tax Reform Act also creates a new requirement that certain income (i.e., Global Intangible Low-Taxed Income (“GILTI”)) earned by controlled foreign corporations (“CFCs”) must be included in the gross income of the CFCs’ U.S. shareholder income. The tax law in PRC applies an income tax rate of 25% to all enterprises. The Company’s subsidiary does not receive any preferential tax treatment from local government. The Company has been in loss position for years and zero balances of tax provisions, deferred tax assets and liabilities as of the reporting periods ended. |
Basic Income (Loss) Per Share | Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. |
Foreign Currency Transactions | The functional currency for MakingORG and HKFW is US dollar. The functional currency for the China subsidiary (CBKB) is the Renminbi (RMB). Assets and liabilities of the China operation are translated from RMB into U.S. dollars at period-end rates, while the statements of operations and cash flows are translated at the weighted-average exchange rates for the period. The related translation adjustments are reflected as a foreign currency translation adjustment in accumulated other comprehensive income/(loss) within shareholders’ deficit. The Company translates the assets and liabilities into U.S. dollars using the rate of exchange prevailing at the balance sheet date and the statements of operations and cash flows are translated at an average rate during the reporting period. Adjustments resulting from the translation from RMB into U.S. dollars are recorded in stockholders’ equity as part of accumulated other comprehensive income. The exchange rates used for financial statements are as follows: Average Rate for the Twelve Months Ended December 31, 2021 2020 China yuan (RMB) RMB 6.452480 RMB 6.900133 United States dollar ($) $ 1.000000 $ 1.000000 Exchange Rate at December 31, 2021 December 31, 2020 China yuan (RMB) RMB 6.355095 RMB 6.527650 United States dollar ($) $ 1.000000 $ 1.000000 |
Related Parties | The Company follows ASC 850, “Related Party Disclosures,” for the identification of related parties and disclosure of related party transactions. |
Lease | The Company adopted new lease accounting – ASC 842 on January 1,2019. The Company determines if an arrangement is or contains a lease at inception. Operating leases with lease terms of more than 12 months are included in operating lease assets, accrued and other current liabilities, and long-term operating lease liabilities on its consolidated balance sheet. Operating lease assets represent its right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments over the lease term. Operating lease assets and liabilities are recognized based on the present value of the remaining lease payments discounted using its incremental borrowing rate. Lease expense is recognized on a straight-line basis over the lease term. |
Segment Reporting | The Company follows Financial Accounting Standards Board (“FASB”) ASC Topic 280, “Segment Reporting” for its segment reporting. The Company aggregates its operating segments into one reporting segment, as management believes that its operating segments have similar operating characteristics and similar long-term operating performance. |
Fair Value of Financial Instruments | Fair value is defined as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk including the Company’s own credit risk. In addition to defining fair value, the standard expands the disclosure requirements around fair value and establishes a fair value hierarchy for valuation inputs. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels which are determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are: Level 1 – inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. Level 2 – inputs are based upon significant observable inputs other than quoted prices included in Level 1, such as quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. The carrying amounts of financial assets and liabilities in the consolidated balance sheets for cash and cash equivalents, advances to vendor, accrued expenses, interest payable and due to related party approximate their fair value due to the short-term duration of those instruments. Convertible notes payable is recorded at agreed values. |
Recently Issued Accounting Pronouncement Not Yet Adopted | In June 2016, the FASB issued ASU No. 2016-13, (FASB ASC Topic 326), Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments which amends the current accounting guidance and requires the use of the new forward-looking “expected loss” model, which requires all expected losses to be determined based on historical experience, current conditions and reasonable and supportable forecasts, rather than the “incurred loss” model. This guidance amends the accounting for credit losses for most financial assets and certain other instruments including trade and other receivables, held-to-maturity debt securities, loans and other instruments. The effective date of ASU No. 2016-13 for smaller reporting companies is postponed to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company believes the adoption of ASU No. 2016-13 will not have a material impact on its financial position and results of operations. The management does not believe that other than disclosed above, the recently issued but not yet adopted accounting pronouncements will have a material impact on its financial position results of operations or cash flows. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of Foreign Currency Transactions | Average Rate for the Twelve Months Ended December 31, 2021 2020 China yuan (RMB) RMB 6.452480 RMB 6.900133 United States dollar ($) $ 1.000000 $ 1.000000 Exchange Rate at December 31, 2021 December 31, 2020 China yuan (RMB) RMB 6.355095 RMB 6.527650 United States dollar ($) $ 1.000000 $ 1.000000 |
BUSINES CONCENTRATION AND RIS_2
BUSINES CONCENTRATION AND RISKS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
BUSINES CONCENTRATION AND RISKS (Tables) | |
Schedule of major vendor | Years Ended December 31, 2021 2020 Amount % of Total Purchase Amount % of Total Purchase Vendor A $ 231,280 52 % $ 65,948 82 % Vendor B $ 108,770 25 % $ 7,328 9 % Vendor C $ 57,071 13 % $ - - % |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
INCOME TAXES | |
Schedule of provision (benefit) for income tax | Year ended December 31, 2021 Federal State Foreign Total Current $ - $ 800 $ 827 $ 1,627 Deferred - - - - Total $ - $ 800 $ 827 $ 1,627 Year ended December 31, 2020 Federal State Foreign Total Current $ - $ 800 $ 2,529 $ 3,329 Deferred - - - - Total $ - $ 800 $ 2,529 $ 3,329 |
Schedule of net deferred tax assets | December 31, 2021 2020 Deferred tax asset: Net operating loss carry forwards $ 182,688 $ 159,635 Valuation allowance (182,688 ) (159,635 ) Net deferred tax asset $ - $ - |
LEASE (Tables)
LEASE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
LEASE | |
Schedule of components of lease expense | Years Ended December 31, Classification 2021 2020 Operating lease cost Selling, General & Administrative expenses $ 70,848 $ 46,329 |
Schedule of balance sheet information related to leases | Classification December 31, 2021 December 31, 2020 Assets Operating lease ROU assets Right-of-use assets $ 31,171 $ 98,653 Liabilities Operating lease liabilities Current portion $ 31,171 $ 70,534 Operating lease liabilities Long-term portion - 12,756 Total lease liabilities $ 31,171 $ 83,290 Weighted average remaining lease term Operating leases 0.42 1.42 Weighted average discount rate Operating leases 5.25 % 5.25-7.33 % |
Schedule of cash flow information related to leases | Years Ended December 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 37,195 $ 47,027 Right-of-use assets obtained in exchange for lease obligations: Operating leases 71,066 139,275 |
Schedule of future minimum lease payment | Operating Leases Year ending December 31, 2022 $ 31,471 Less: Interest (300 ) Present value of lease liabilities $ 31,171 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SEGMENT REPORTING | |
Schedule of segment reporting information | For the Years ended December 31, Geographic Areas 2021 2020 Revenue PRC 611,328 238,587 USA - - Total Revenue $ 611,328 $ 238,587 Income (Loss) from Operations PRC $ (114,699 ) $ 5,877 USA 91,036 (102,947 ) Total Loss from operations $ (23,663 ) $ (97,070 ) Net Income (Loss) PRC $ 115,220 $ 7,582 USA (115,834 ) (173,432 ) Total Net Loss $ (614 ) $ (165,850 ) |
Schedule of segment reporting financial information | For the Years ended December 31, Geographic Areas 2021 2020 Reportable Assets PRC 323,893 170,916 USA 44,498 47,384 Elimination (148,187 ) (25,757 ) Total Reportable Assets $ 220,204 $ 192,543 |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
GOING CONCERN | ||
Net loss | $ (614) | $ (165,850) |
Accumulated Deficit | $ (1,162,307) | $ (1,161,693) |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | |||||
Dec. 31, 2021¥ / shares | Dec. 31, 2021¥ / shares$ / shares | Dec. 31, 2020¥ / shares | Dec. 31, 2020$ / shares¥ / shares | Dec. 31, 2021$ / shares | Dec. 31, 2020$ / shares | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Average Rate China yuan (RMB) | ¥ / shares | ¥ 6.452480 | ¥ 6.900133 | ||||
Average Rate United States dollar | $ / shares | $ 1 | $ 1 | ||||
Exchange Rate China yuan (RMB) | ¥ / shares | ¥ 6.527650 | $ 6.527650 | ¥ 6.355095 | $ 6.355095 | ||
Exchange Rate United States dollar | $ / shares | $ 1 | $ 1 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 1 Months Ended | 12 Months Ended |
Dec. 22, 2017 | Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Statutory federal income tax rate | 21.00% | 25.00% |
ADVANCES TO VENDOR AND OTHERS (
ADVANCES TO VENDOR AND OTHERS (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
GOING CONCERN | ||
Advances to vendor and others include primarily | $ 78,677 | $ 0 |
Advances to vendor and others | $ 80,677 | $ 2,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2020USD ($) | |
Net Sales-Related Party | $ 611,328 | $ 238,587 | |
Accounts receivable - related party | 0 | 48,934 | |
Loan from related party | 0 | 12,256 | |
Due to related party | 386,418 | 340,286 | |
Loan from related party | 46,132 | 54,417 | |
Lease Agreement [Member] | |||
Monthly rent | 6,100 | ||
Officers [Member] | |||
Due to related party | 386,418 | 340,286 | |
Loan from related party | $ 46,132 | $ 54,417 | |
On June 1, 2020 [Member] | Lease Agreement [Member] | |||
Lease term descriptions | a lease agreement with Entity A in Chongqing, China for the period from June 1, 2020 to May 31, 2021. | a lease agreement with Entity A in Chongqing, China for the period from June 1, 2020 to May 31, 2021. | |
Monthly rent | $ 6,000 | ||
Lease term | 1 year | 1 year | |
CBKB's [Member] | April 1, 2021 [Member] | |||
Lease term descriptions | the loan principal could be applied to the monthly lease payment for two months (RMB 40,000 per month). | the loan principal could be applied to the monthly lease payment for two months (RMB 40,000 per month). | |
Interest rate of loan | 1.00% | 1.00% | |
Due to related party | $ 12,209 | ||
Loan from related party | ¥ | ¥ 4,800 |
BUSINES CONCENTRATION AND RIS_3
BUSINES CONCENTRATION AND RISKS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Net Sales-Related Party | $ 611,328 | $ 238,587 |
Vendor C [Member] | ||
Concentration risk percentage | 13.00% | 0.00% |
Net Sales-Related Party | $ 57,071 | |
Vendor A [Member] | ||
Concentration risk percentage | 52.00% | 82.00% |
Net Sales-Related Party | $ 231,280 | $ 65,948 |
Vendor B [Member] | ||
Concentration risk percentage | 25.00% | 9.00% |
Net Sales-Related Party | $ 108,770 | $ 7,328 |
BUSINES CONCENTRATION AND RIS_4
BUSINES CONCENTRATION AND RISKS (Details Narrative) | 12 Months Ended | ||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021HKD ($) | Dec. 31, 2021USD ($) | |
FDIC limit | $ 250,000 | ||||
Net Sales-Related Party | $ 611,328 | $ 238,587 | |||
HKD [Member] | |||||
FDIC limit | $ 500,000 | ||||
RMB [Member] | |||||
FDIC limit | ¥ | ¥ 500,000 |
CONVERTIBLE NOTE PAYABLE (Detai
CONVERTIBLE NOTE PAYABLE (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Interest expense | $ 24,000 | $ 60,267 |
Convertible note payable, net of discount current | 200,000 | 0 |
Convertible Note Agreement [Member] | ||
Interest expense | 24,000 | 54,267 |
Convertible note payable | 200,000 | |
Unamortized debt discount | 128,000 | $ 104,000 |
Convertible Note Agreement [Member] | September 1, 2016 [Member] | ||
Principal amount | $ 200,000 | |
Maturity date | Sep. 1, 2018 | |
Interest rate | 12.00% | |
Share price | $ 3.50 | |
Discount on convertible note payable | $ 38,857 | |
Convertible Note Agreement [Member] | September 1, 2018 [Member] | ||
Convertible note payable, net of discount current | $ 40,000 | |
Amended agreement description | the Company entered into an Amended and Restated 12% Convertible Promissory Note. Pursuant to an Amended and Restated 12% Convertible Promissory Note, both parties agreed to extend a Convertible Note Agreement to September 1, 2019 with no additional consideration | |
Convertible Note Agreement [Member] | September 1, 2020 [Member] | ||
Convertible note payable, net of discount current | $ 0 | |
Amended agreement description | the convertible note agreement to September 1, 2022 with no additional consideration | |
Convertible Note Agreement [Member] | September 1, 2019 [Member] | ||
Convertible note payable, net of discount current | $ 54,400 | |
Amended agreement description | the Company entered into an amended and restated 12% convertible promissory note. Pursuant to the amended convertible promissory note, both parties agreed to extend the convertible note agreement to September 1, 2020 with no additional consideration |
LEASE (Details)
LEASE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
LEASE | ||
Operating lease cost | $ 70,848 | $ 46,329 |
LEASE (Details 1)
LEASE (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Assets | ||
Operating lease ROU assets | $ 31,171 | $ 98,653 |
Current portion | ||
Operating lease liabilities | 31,171 | 70,534 |
Non-current portion | ||
Operating lease liabilities | 0 | 12,756 |
Total lease liabilities | $ 31,171 | $ 83,290 |
Weighted average remaining lease term Operating leases | 5 months 1 day | 1 year 5 months 1 day |
Weighted average discount rate Operating leases | 5.25% | |
Minimum [Member] | ||
Non-current portion | ||
Weighted average discount rate Operating leases | 5.25% | |
Maximum [Member] | ||
Non-current portion | ||
Weighted average discount rate Operating leases | 7.33% |
LEASE (Details 2)
LEASE (Details 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 37,195 | $ 47,027 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | $ 71,066 | $ 139,275 |
LEASE (Details 3)
LEASE (Details 3) | Dec. 31, 2021USD ($) |
LEASE | |
Year ending December 31, 2022 | $ 31,471 |
Less: Interest | (300) |
Present value of lease liabilities | $ 31,171 |
LEASE (Details Narrative)
LEASE (Details Narrative) - Lease Agreement [Member] | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Monthly rent | $ 6,100 |
Lease rate of interest | 5.25% |
Remaining lease term | 5 months |
STOCKHOLDERS DEFICIT (Details N
STOCKHOLDERS DEFICIT (Details Narrative) - shares | Dec. 31, 2021 | Dec. 31, 2020 |
STOCKHOLDERS DEFICIT | ||
Common stock issued | 35,540,000 | 35,540,000 |
Common stock outstanding | 35,540,000 | 35,540,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current | $ 1,627 | $ 3,329 |
Deferred | 0 | 0 |
Total | 1,627 | 3,329 |
Federal [Member] | ||
Current | 0 | 0 |
Total | 0 | 0 |
Deferred | 0 | 0 |
State [Member] | ||
Current | 800 | 800 |
Total | 800 | 800 |
Deferred | 0 | 0 |
Foreign [Member] | ||
Current | 827 | 2,529 |
Total | 827 | 2,529 |
Deferred | $ 0 | $ 0 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax asset: | ||
Net operating loss carry forwards | $ 182,688 | $ 159,635 |
Valuation allowance | (182,688) | (159,635) |
Net deferred tax asset | $ 0 | $ 0 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended |
Dec. 22, 2017 | Dec. 31, 2021 | |
Operating loss carry forwards | $ (481,000) | |
Operating loss carry forwards expiration year | 2032 | |
Statutory federal income tax rate | 21.00% | 25.00% |
USA [Member] | ||
Statutory federal income tax rate | 21.00% | |
PRC [Member] | ||
Statutory federal income tax rate | 25.00% |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Net Sales-Related Party | $ 611,328 | $ 238,587 |
Income (Loss) from Operations | 1,013 | (162,521) |
Net loss | (614) | (165,850) |
USA [Member] | ||
Net Sales-Related Party | 0 | 0 |
Income (Loss) from Operations | 91,036 | (102,947) |
Net loss | (115,834) | (173,432) |
PRC [Member] | ||
Net Sales-Related Party | 611,328 | 238,587 |
Income (Loss) from Operations | (114,699) | 5,877 |
Net loss | 115,220 | 7,582 |
Total [Member] | ||
Net Sales-Related Party | 611,328 | 238,587 |
Income (Loss) from Operations | (23,663) | (97,070) |
Net loss | $ (614) | $ (165,850) |
SEGMENT REPORTING (Details 1)
SEGMENT REPORTING (Details 1) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Total Reportable Assets | $ 220,204 | $ 192,543 |
Eliminiation [Member] | ||
Total Reportable Assets | (148,187) | (25,757) |
USA [Member] | ||
Total Reportable Assets | 44,498 | 47,384 |
PRC [Member] | ||
Total Reportable Assets | $ 323,893 | $ 170,916 |